‘Community benefit’ meaning at heart of city Airbnb case

LACONIA — The Zoning Board of Adjustment, acting at the behest of the City Council, voted unanimously Tuesday to rehear a homeowner’s request for a special exception to allow short-term rentals.

The decision came on a 4-0 vote after almost 45 minutes of discussion, much of it regarding the meaning of what constitutes a "community benefit."

The board voted in March to allow a couple which owns a part-time residence in South Down to rent the premises in increments of two weeks or less on the grounds that doing so would be a benefit to the city.

The City Council objected to the decision, arguing it was contrary to the intent of an amendment to the short-term rental ordinance which the council passed in January. The council directed the city’s attorney to file a request for a rehearing.

At issue is what criteria the ZBA should apply in determining when the benefit to the city exceeds the financial benefit to the applicant who wants to rent a home in a residential zone on a short-term basis.

The board granted an exception to Jennifer and Olaf Butchma to rent out their residence at 16 Birdie Way for short periods, agreeing at that time with the couple’s rationale that having the premises occupied rather than vacant was a community benefit.

In the letter formally requesting the rehearing, attorney Laura Spector-Morgan wrote, “If not having a house appear vacant is a public benefit, then every property owner in town could qualify for a special exception.” This, Spector-Morgan argued, would essentially make that part of the ordinance meaningless.

ZBA member Gail Ober said the problem was that the relevant part of the ordinance was hard to apply in concrete situations because “general community benefit,” is intangible. Ober made the motion back in March granting the Butchmas the waiver, and on Tuesday she introduced the motion to rehear the case.

Member Michael DellaVecchia agreed with Ober that what constitutes a community benefit is nebulous.

“If I rent my place to someone and they then go out and eat at Fratellos, that could be seen as a community benefit,” he said. “I’m frustrated with the City Council over this.”

City Planning Director Dean Trefethen told the board that it was the council’s intention in passing the “community benefit” that the granting of special exception on those grounds should be the exception and not the rule.

“They wanted it to be a high hurdle — not an impossible hurdle, but a high hurdle,” he said.

Ober said that the special-exception amendments were tacked onto the ordinance in response to public pressure.

“In order to get the ordinance passed they needed to get exceptions to satisfy the squeaky wheels,” Ober said.

The council carved out the “community benefit” exception in response to concerns by the owner of the Winnipesaukee Playhouse, which owns a house in the city’s South End. The premises are used by actors and stage crew during the summer theater season, and are rented out on a short-term basis the rest of year. But since the house is not-owner occupied that arrangement could not continue and that would harm the nonprofit summer stock/community theater.

ZBA Chairman Steve Bogert said a similar set of circumstances existed involving a house on Gilford Avenue which was being rented out to traveling nurses working at Lakes Region General Hospital.

Bogert anticipated either the city’s attorney or someone else representing the council would be present at the rehearing to argue the council’s position. He said if the board concluded it needed to get legal advice on the matter it would have to hire its own attorney. The decision to do so would take place after the rehearing.