By Kim Lewicki, Highlands Newspaper
The required public hearing regarding amending the Unified Development Ordinance to amortize Short-Term Rentals was held Thurs., Sept. 5 in a packed Community Building.
The 31 speakers represented both sides equally – those for the amortization of STRs and those against amortization each side citing reasons that have mostly been heard before.
However, rhetoric and claims were amplified.
Cathy Hensen, president of the Highlands Neighborhood Coalition (HNC), which is for amortization, was the first to speak and pretty much wrapped up the coalition’s point of view.
“STRs are a cancer creeping into our neighborhoods and violating what we believe to be our long-standing zoning laws prohibiting all commercial activity in our single-family residential neighborhoods,” she said.
She said big commercial interests have snuck in and taken advantage of ambiguous language hoping that by the time locals and town officials wake up, the “cancer” would have taken hold and be impossible to move out.
“Realtors, real estate investors and companies like VRBO and Airbnb spend millions of dollars lobbying state legislators and local government officials like you hiding behind local STR owners even though most are out-of-town investors operating remote assets. Do not be fooled. Do your part. Pass this amendment that Airbnb and their allies will find unfavorable,” she said.
The current ordinance that the town enacted September of 2022 has grandfathered STRs in the R1 and R2 zones in existence prior to Sept. 2022. It reads: Notwithstanding anything in this UDO, short-term rentals in operation as of September 15, 2022 are nonconforming uses in the R-1 and R-2 zoning districts.
The proposed amendment which the Planning Board voted unanimously against reads: Notwithstanding anything in this UDO, short-term rentals in operation as of September 15, 2022. are nonconforming uses in the R-1 and R-2 zoning districts until September 15, 2027. After September 15, 2027, short-term rentals are not permitted in the R-1 or R-2 zoning districts, and all short-term rentals in those districts must be discontinued.
There were several lawyers in the room, some for and some against the amendment.
Charlie Naborn with the HNC and Derek Allen with Save Highlands, the group against amortization, disagreed on amortization as it applies to STRs.
Naborn said once again that amortization is settled law in NC and may be used by the town to end STRs in R1 and R2 single-residential neighborhoods even though the town’s attorney Bob Hagemann has said no other municipality in NC has tried to apply it to home use and suggested the town not pursue the argument.
Naborn said amortization has been considered and upheld in the NC appellate court regarding a construction debris salvage yard, two nonconforming signs, nonconforming billboards, wind-blown signs, non-conforming off premise signs, and a sexually orientated business.
“This proves this is a good and valid law in North Carolina,” he said. “Buildings are not taken, just one use. Homeowners have three years to recoup their investment and still make lawful use of their property. They can rent it long-term, they can sell it or they can actually live in it.”
Attorney Derek Allen, who said he has dealt extensively with zoning issues and property rights across the state agreed but said only three things have been amortized successfully in NC – a salvage yard, a few sign cases and a strip joint.
“That’s it,” he said. “The other cases don’t make it to the appellate court because amortization is an extremely difficult thing to do under the law of this state.”
Allen represents Save Highlands’ homeowners which sued the town in 2021 when it decided to ban STRs.
“We sent a letter followed by a lawsuit and after conferring with attorneys the town withdrew. In 2022, future STRs were banned. The 2021 lawsuit is still out there, but we agreed not to move forward as long as the town was proactive and didn’t try to retroactively get rid of STRs that were already in existence. This is the third time now. That lawsuit still stands, but the stay ends on Oct. 1,” he said.
He said there are 500 municipalities and 100 counties and not one of has tackled what Highlands is trying to do, which Attorney Hagemann has said numerous times.
“We ask you to vote no,” said Allen. “It’s a bad idea. It’s bad law. It’s not going to work in North Carolina”
David Bee, owner of Highlands Vacation Rentals reminded the board that the NC Vacation Rental Act clearly states that a STR is not commercial enterprise and is allowed.
Lila Howland, one of the few year-round residents who is a member of HNC, expanded her hard-core belief that the only reason that Commissioners Amy Patterson and Eric Pierson won their seats in the 2021 election was because they are against STRs which she said happened again in the 2023 election when Commissioners Brian Stiehler and John Dotson won.
“I want to remind you that that voters in the last two elections overwhelmingly supported the candidates who publicly stated their positions on STRs – which was to eliminate them in residential neighborhoods in R1 and R2,” she said.
Holly Henry, who manages 12 STRs gave a heart-felt account of her business and took offense to STRs being referred to as a cancer.
“I have 12 properties owned by individual homeowners who aren’t doing this to get rich quick. It helps offset the cost of owning a home here in Highlands. I am careful with each and every property – I monitor the garbage, I take care of the house, I set rules and guidelines for them. The problem in Highlands is poor management or no management at all. I do it right. I am not a cancer,” she said.
Lawanna Bales who owns three STRs, three businesses on Main Street and a commercial building said Highlands needs STR renters.
“They support Main Street and they create stability in the housing market. Overall, they are terrific folks who want to experience Highlands who you would be lucky to have as your neighbor.” she said.
Bales said the Highlands economy can’t depend on just second-homeowners.
“Once the perfect weather arrives the elite, second-home owners arrive — many of you join the Cabul – popping up for a few months and then leave. November comes. The country clubs close, the day-trippers leave, and the business district is then left to be supported by a small number of residents for six months out of the year.
“Fewer vacationers mean less prosperity for everyone in Highlands. You can choose to support the STR rights and business owners who have made this a viable year-round town paying for town infrastructure along the way or reverse the prosperity and shut down this town for a few spoiled second-home owners who want to maintain this mountain all to themselves,” she said.
A reoccurring theme as uttered by Nancy Nichols and others said visitors aren’t long-term supporters of Highlands or Highlands history.
“We are going to lose the basis of the giving of this community if you allow more and more people to have STRs because they won’t give,” she said.
But Deborah Kirk, who manages several STRs said that’s not true.
“My renters contribute to the community by attending functions and contributing to the town,” she said.
Jeanne Chambers co-owner of Chambers Realty and Vacation Rentals which has been in business more than 40 years, said the debate is a multi-faceted one involving property owners who resent strangers in the driveway next door, who can’t get a reservation at a restaurant because an “evil” person like a tourist or a visitor or a STRer got there first.
“They are the ones who say, ‘I am glad I found Highlands when I did and now let’s close the gates, but it’s also about the restaurant and business owners and their employees, the housecleaners and landscapers and plumbers who are worried about losing business and jobs,” she said.
“And it’s about the person who bought a home for retirement but until then needs to rent it to offset the expense of owning a home in Highlands.
“It really doesn’t matter if people who live here or have been here all their lives or just closed on a property last week, they are all due respect and the enjoyment of their property rights,” she said.
Property rights were a reoccurring theme for those both for and against amortization.
Those with HNC say they are denied the quiet enjoyment of their homes with disruptive STRs next door, or just the fact that there are strangers in their midst.
But Conner Blackwood who has a home he rents as an STR until he can retire said the town should be very careful about removing rights from those who live and work in Highlands.
“I fought 23 years for all of your freedoms. In the UAE they have alcohol restrictions, in Germany you don’t even get a full-size trash can, in Denmark, the cars have to be 20 years old or older. When you restrict freedom it comes with consequences,” he said. “I didn’t serve to uphold our nation’s freedom and then come here to have that revoked. We all need to be careful about what we restrict regarding our personal property.”
Blackwood said freedom requires responsibility of renters and homeowners who rent, which is where rude, messy, irresponsible renters come in.
Jim Murphy a recent homeowner on Dog Mountain said his next door STR is a nightmare, advertised as an event venue — which is illegal — housing 14 people that generate noise, garbage and overflowing septic problems.
No one in the room thought that was OK, which is where rules, regulations and enforcement come in.
But Freda Bennett and Carol Gable believe no matter how you cut it STRs are unworkable and unmanageable. Both suggested a level playing field – might as well let everyone have STRs, said Bennett.
Carol Gable said STR owners have extra property rights that she doesn’t have at the expense of neighborhoods. “Amortization levels the field,” she said.
With only 15 complaints logged with the police over the last two years, some not from STRs, Jennifer Huff with Save Highlands and Jerry Moore, an STR owner, both asked for proof.
“We are told repeatedly that guests cause problems but each time we reach out for complaint statistics there is almost no difference in the types and number of complaints between locals and STR guests,” Huff said. “This is a town where tourists who become guests in STRs should be welcomed and appreciated for allowing Highlands to thrive. Locals and tourists can co-exist and get along, we just need to try a little harder.”
Moore asked if amortization was legal, logical and would really solve the alleged problems he keeps hearing about.
“If you pass amortization, will courts approve? Can you show harm caused by STRs? If so, is that data significant enough to take away my rights as a property owner? You are going to spend half a million dollars plus and be the first municipality in NC to attempt to ban STRs completely. Are you exceeding your authority? You have a lot of power. Use it responsively,” he said. “Laws should not be passed to benefit the will of a few. You need to look at the big picture.”
However, full-timer Alice Nelson said the board should stand on the courage of its convictions.
“Don’t let the threat of a lawsuit weaken your courage or tempt you or lead you to take the easy way out and abandon those convictions. The threat of a lawsuit is no small thing, and it’s not to be taken lightly, but there comes a time when we have to stand firm whether as individuals or a group and stand up for our beliefs and not allow threats of any kind to intimidate,” she said.
Craig Thompson said the town shouldn’t put all STR owners and all STR problems into the same boat.
“Every property owner has property rights. Abandoning STRs is a trespass and a violation of property rights,” he said.
Realtor Pat Allen said people’s rights and the economy of downtown Highlands is at stake.
“I don’t understand the hysteria; what is really happening? Trash and bachelorette events are wrong and should be dealt with between the police and the homeowner, either fine them or shut them down. That makes sense. But for those who have spoken who depend on STRs as a livelihood should be considered and not disregarded due to a few disgruntled people in neighborhoods. That’s wrong,” she said.
Realtor Pam Nellis said grandfathering of STRs should stand. She said homeowners have agreed to go along with that as a compromise.
“Grandfathering allows a property owner to maintain existing conditions or uses of a property even after zoning laws or regulations have been implemented. It goes with the land into perpetuity,” she said. “Current STRs owners have been told if their home hasn’t been rented for more than one year and one day they lose their ability to rent as a STR. That’s not grandfathering, that’s a compromise by the owners who are willing to do that. And through attrition, the STR numbers are going down and will keep going down because some people who buy STRs don’t want to rent them.”
Tracy Fitzsimmons said amortizing STRs but saying renting 30 days or more is OK won’t fix everything.
“Lengthening the stay to 30 days or more will not turn a misbehaving guest into a well-behaved guest – the two don’t correlate,” she said.
She also questioned how many of those for amortization of STRs found Highlands by staying in an STR.
Bill Long with the HNC said Highlands’ elections, surveys and letters prove that people don’t want STRs.
“We have been told the state legislature will soon pass a law allowing STRs. We are still waiting for that law. It hasn’t happened and it won’t happen,” he said.
After 90 minutes the public hearing ended. The town will accept letters from those for or against STRs until they vote on the matter, which could be at the next Town Board meeting, Thursday, Sept. 19 at 7 p.m. in the Community Building.
Pictured at the top of the article: Extra chairs were brought in to the Community Building from the Civic Center to accommodate the attendees of the public hearing regarding the amortization of STRs in Highlands on Thurs., Sept. 5. Photo by Kim Lewicki