Clatsop County has just over 170 short-term rentals in unincorporated areas.

Clatsop County leaders are inching closer to a decision on regulations for vacation rentals.

At a meeting Wednesday, the Board of Commissioners considered an ordinance to establish a 10% cap on vacation rentals in unincorporated areas west of U.S. Highway 101 and on both sides of the highway in Arch Cape, where the majority of rentals are located.

The discussion is another turn of the wheel in a yearslong process over the future of short-term rentals — one that has been marked by fierce debate over neighborhood concerns and property rights. In 2023, a ballot measure that would have repealed an ordinance recognizing short-term rentals as a use in the county’s development code narrowly failed.

Gail Henrikson, the county’s community development director, said the Board of Commissioners held an initial public hearing on the 10% cap in November, but amended the ordinance after receiving a letter from the Portland law firm McDermott Weaver Connelly Clifford LLP citing concerns about limits proposed on the transfer of permits. The amended ordinance, which commissioners conducted a first reading of on Wednesday and will continue at their next meeting, allows the transfer of permits once a cap has been adopted.

The board also considered a proposal to bring the fee for a two-year short-term rental permit in unincorporated areas up from $550 to $1,500. The increase is meant to cover more of the actual costs associated with running the program — including assessment and taxation, building codes, code compliance and other county staff time — which total closer to $1,373 per vacation rental, Henrikson said.

Although commissioners seemed to agree that subsidizing short-term rental fees wasn’t an option due to budgetary concerns, Commissioner Anthony Huacuja, the board’s newest commissioner, raised questions about the proposed changes.

Huacuja, who operates a vacation rental, said he confirmed with county counsel that his circumstances don’t constitute a conflict of interest due to a class exception. He asked whether county staff had looked into the possibility of a tiered fee system or made comparisons with other counties that have kept their permit fees lower than $1,500.

“Just to be clear, I’m not asking that we subsidize the fee operation associated with STRs, but I would like to ensure that we’re diligent to make sure that the resources that are being used are as effective as possible to minimize that,” he said, referring to code enforcement challenges. He added later that he also opposed the proposed cap.

Henrikson said county staff have compared Clatsop County’s proposed fee to those in other counties, but haven’t interviewed any jurisdictions. In past work sessions, commissioners have also discussed the potential for a tiered system or phasing in the increased fees over time.

County Manager Don Bohn added that a number of factors could contribute to other counties’ lower permit fees, including subsidies, differences in the number of resources put toward code enforcement and economies of scale. Clatsop County has just over 170 short-term rentals in unincorporated areas. Cities on the North Coast have separate vacation rental regulations.

A decision on the proposed fee increase has been tabled to a late February meeting to explore further options, per a motion made by Commissioner Courtney Bangs.

“We’ve been actively involved in this conversation for numerous years, and we’ve ridden this roller coaster for numerous years, and (Huacuja) is bringing valuable discussion items,” Bangs said. “And it may be just giving him an opportunity to have one-on-one conversations with our staff to allow him to fully dive into this topic, mainly just because I do recognize his experience, and I recognize his passion.”

Commissioner Pamela Wev disagreed, questioning the fairness of tabling an item after years of work, and stating that she believes commissioners with a financial interest in a decision should recuse themselves.

Commissioner Lianne Thompson, who represents South County, acknowledged the variability between short-term rentals across the county and emphasized the need for a balanced solution.

“It’s a tricky operation because we are trying to execute fairness and fiscal prudence for the staff and everybody, as well as honoring the time of the board that has existed and welcoming our new person and wanting to take everybody into account,” she said.