Several City Council members said Tuesday they would consider allowing Short Term Vacation Rentals (STVRs) citywide as long as new ones go into commercial zones.
The discussion came after the council was about to vote on a revision to the current STVR ordinance that would keep the Overlay Zones (in which several council members have opted out of having any rentals in their districts).
The vote on the revised ordinance was delayed until Feb. 28.
Chris Anderson of the mayor's office was asked to provide language regarding restricting new STVRs to commercial areas.
Councilwoman Marvene Noel initially asked for the delay, saying she had unresolved issues on the topic.
She said, "I'm not ready to vote." She said the revised ordinance would allow 40 more rentals into her District 8 with its provision allowing new rentals as long as they are not more than 500 feet from existing ones.
Councilwoman Noel said, "That's so unfair. Once again we are stuck with what nobody else wants. If it's not a good thing for District 8, it's not a good thing for the city."
She added, "To continue to allow these to pile up in the neighborhoods, that's not a good thing."
Councilwoman Carol Berz said, "I think we need to come up with a plan, and this is not it."
She said STVRs should be restricted to commercial areas. Currently, she said, "It's taking away our housing stock that we desperately need."
Councilman Ken Smith said he has consistently opposed STVRs in neighborhoods, but is open to having them at commercial sites.
Chairman Darrin Ledford said he has taken surveys at community meetings for years and no one wants STVRs in their neighborhoods. But, he said, when asked if it would be okay to put them in places like Gunbarrel Road, there was no problem with that.
He said when the current moratorium on new absentee STVRs is lifted on July 6, there will be "tens and tens and tens of millions of dollars about to hit" the Chattanooga rental market.
He said, "Once we lose our housing stock it's gone. This business is too profitable."