(New Buffalo, MI) - A final vote on a proposed short-term rental cap in New Buffalo has been pushed back after residents exercised their right to have an extra public hearing on the matter.

 

Mayor John Humphrey said 13 residents in certified letters to the city asked for a third public hearing. Humphrey said the requests under Michigan law must be granted.

 

The final vote is now expected during the November 15 regularly scheduled city council meeting following another public hearing.

 

Final action on what’s been a tumultuous issue for more than a year in the popular Lake Michigan tourist community was supposed to be taken by the city council Monday night because the standard two public hearings before a vote were already conducted.

 

One hearing was held before the city’s Planning Commission, citing lack of information on August 21 recommended against imposing a vacation rental cap.

 

Two weeks later, following another public hearing, the city council gave preliminary approval to prohibit additional vacation homes in all three of the residentially zoned districts in the community.

 

The measure does allow for more short-term rentals starting about a year from now if places are identified for them to go without becoming too dense in number, said City Manager Darwin Watson.

 

Humphrey announced the delay in taking final action to start the meeting, but more than a half dozen people forecasting a bleak future for the city if a cap is imposed still voiced their opinion.

 

During the summer, Bill Logothetis, a full-time Crown Point resident, doesn’t rent his second home, a $400,000 lakefront condominium on Merchant Street. However, he is concerned the value of his property will drop from an economic decline in New Buffalo brought on by a cap.

 

Logothetis said he’s afraid of visitors going elsewhere when demand for short-term rentals exceeds supply and merchants relying on summer profits to keep their doors open having to close.

 

“Short term rental people they spend money here,” Logothetis said.

 

Mayor John Humphrey and other supporters believe a cap will help establish more of a year-round economy and boost the declining population and enrollment in the schools.

 

Supporters feel housing prices driven up by an explosion of vacation homes will become affordable for families with children who want to move here and expand the number of single-family residences on the market to other prospective full-time residents.

 

Other reasons cited for a cap include restoring peace to neighborhoods disrupted more often by parties, vehicular traffic, and litter from short-term rental home guests.

 

Opponents citing just 20 police reports or so a year question whether a significant problem with disruption really exists.

 

Humphrey, though, said police reports are not generated from a vast majority of the calls.

He said there had been more than 600 vacation home-related complaints over the past three years and 25-percent of every registered rental in the city was the source for at least one call to the police.

 

“And we still chase illegal rentals and illegal rentals are very hard to catch,” Humphrey said.

Jim Kramer, the owner of the popular Nancy’s outdoor restaurant on Whittaker Street, said negative publicity from a cap would cause other visitors to feel unwelcome not to come here.

 

"There can be lines three months out of the year in downtown New Buffalo and you hear crickets the rest of the year. That’s the gift we have been given.  We can take it or leave it.  There are plenty of towns around here that would love it and will take it from us if we’re not careful,” he said.