EXECUTIVE SUMMARY- It is recommended that the reader consult the complete Issues and Options paper for further information.

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1 Background An Issues and Options Paper: Definition of Visitor Accommodation in the Queenstown Lakes Partially Operative District Plan (1 September 2006) has been completed. This is a summary of that paper. It provides a brief overview of the issues and options regarding the letting of residential units for a limited number of days per year while the owners are away on holiday. It is recommended that the reader consult the complete Issues and Options paper for further information. Issues The following issues have been identified: Is it fair and reasonable to require homeowners to obtain resource consent for visitor accommodation when such use is for a limited number of days per year while the homeowners are away on holiday (the predominant use of the residential unit being for residential activities)? The current definition of visitor accommodation and associated definitions for residential and homestay activities in the Plan suggest that there is an effects based distinction between visitor accommodation activities and residential activities. Can an alternative definition which allows the short term letting of individually owned residential units let for a short period each year without the need for resource consent be supported from an effects based analysis in accordance with the RMA? If the answers to issues 1 and 2 are that it is not reasonable to require homeowners to obtain resource consent for the letting of individually owned residential units for limited, short term, visitor accommodation and secondly that there is an effects based justification for this position in accordance with the RMA then what options are available to Council in terms of consenting requirements to rectify this issue? Options The following options were identified to address these issues: 1. No change to the current definition of visitor accommodation thereby requiring the Council to exercise its discretion with enforcement measures where the visitor accommodation use occurs for a limited period per year while homeowners are away on holiday. Page 1 of 4

2 The consistent administration of the District Plan requires Council to ensure that all visitor accommodation providers obtain resource consent - including homeowners who rent out their home for a limited number of days per year while away on holiday. Thus, notwithstanding the Council s and the community s views in relation to the reasonableness of this requirement, such concerns cannot be addressed in the absence of a change to the provisions in the Plan. 2. Initiate a plan change to alter the definition of visitor accommodation to allow for residential units to be rented out as a permitted activity for a limited period of time. The consenting dilemma relates specifically to residential units which are primarily used for residential purposes but rented out for a limited number of days per year. Thus the targeted visitor accommodation activity can be described as opportunistic such use does not change or alter the fact that the primary use of the site remains residential. In terms of limited, short term visitor accommodation use, it is considered that the nature, scale and frequency of the adverse effects (including residential coherence, parking, vehicle movements and noise) which arise from visitor accommodation activities are acceptable. Therefore, the distinction between the limited short term letting of residential units for visitor accommodation and other visitor accommodation activities is valid and the creation of a permitted activity exemption in the Plan is an appropriate mechanism to address these concerns. 3. Initiate a plan change to alter the definition of visitor accommodation such that a new temporary visitor accommodation category is created which enables the letting of individually owned residential units for limited periods as a controlled activity. Controlled activity status would provide individual homeowners with the certainty that resource consent would be granted for short term visitor accommodation activities, and would further allow Council to impose conditions of consent which would assist Council in monitoring such activities effectively. However, it is possible that the process of obtaining consent would result in additional time and cost to applicant homeowners which may outweigh the benefit derived from the short term letting of the property. This could ultimately act as a deterrent to homeowners thereby resulting in a situation where residential unit owners are prepared to risk enforcement action by continuing to rent out there home for a limited number of days per year without resource consent. Page 2 of 4

3 For these reasons, it is considered that the permitted activity exemption described in option 2 above is a more appropriate course of action. 4. Issue a standardised resource consent process in accordance with the existing rules for all residential unit owners who wish to rent out their homes for a limited number of days per year. This option avoids the need for a plan change altogether and if Council bore the cost of the processing of the consent, it also addresses the issue identified above in relation to the time and cost of obtaining consent outweighing the benefits derived from the visitor accommodation activity itself. However, this course of action is problematic in that it is not a permanent or ongoing solution it only benefits property owners who own residential units at the time the consent is applied for. Council would have to constantly reapply for new consents to ensure that new residential units / owners are treated fairly and consistently. In addition, from a public perception point of view this course of action could raise issues with other visitor accommodation providers who would prefer to see Council s intention to enable the letting of individually owned residential units go through the plan change process to ensure that rigorous public consultation has occurred and the issues have been fully and openly discussed. For these reasons, it is considered that the permitted activity exemption described in option 2 above is a more appropriate course of action. Preferred Option The following option is preferred by Council at this stage: Initiate a plan change to alter the definition of visitor accommodation to allow for individually owned residential units to be rented out as a permitted activity for a limited period of 28 days per year. This is the preferred option for the following reasons: 1. This option resolves the consenting dilemma that currently exists whereby individual homeowners are not able to rent out there homes on a short term basis without triggering the need for resource consent. 2. The creation of a permitted activity exemption means that the letting of individually owned residential units for visitor accommodation purposes for 28 days per year can continue to occur with minimal (if any) compliance costs for the homeowner. Page 3 of 4

4 3. The creation of a permitted activity exemption can be justified on an effects basis in accordance with the RMA. The following definition has been formulated in response to the discussion above by altering the current definition of visitor accommodation with a view to achieving a permitted activity exemption for the letting of residential units for a limited number of days per year. Visitor Accommodation (a) Means the use of land/or buildings for short-term, fee paying, living accommodation such as camping grounds, motor parks, hotels, motels, boarding houses, guest houses, backpackers accommodation, bunkhouses, tourist houses, lodges and the letting of residential units where the length of stay for any visitor is less than 3 months per year. (b) Includes centralised services or facilities, such as food preparation, dining and sanitary facilities, conference, bar and recreational facilities if such facilities are associated with those visitor accommodation activities set out in (a) above. (c) Excludes the letting of a residential unit on one or more occasions in any year provided that the total number of days a residential unit is let in any year shall not exceed 28. Where a site contains both a residential unit and a residential flat the exclusion shall apply to either the letting of the residential flat or the residential unit but not both. Year means a year commencing 1 April and ending 31 March. (d) Excludes the letting of residential units for homestay accommodation (refer separate definition) where no more than four guests stay at any one time. It is considered that the above definition provides a simple alteration to the definition of visitor accommodation thereby creating a permitted activity exemption which is simple and effective in addressing the consenting dilemma that currently exists whereby individual homeowners are not able to rent out there homes on a short term basis without triggering the need for resource consent. For further discussion of this recommended option, please see the complete Issues and Options paper. Public comment is very welcome. Please see the attached Feedback Form for further information. Page 4 of 4

5 Feedback Form - PC 22 Definition of Visitor Accommodation YOUR DETAILS Date: Your Name: Your Address: Phone Number (Work): (Home): YOUR FEEDBACK Please return to: Cathy Walker Strategy and Planning Department Civic Centre, 10 Gorge Road, Queenstown Private Bag 50072, Queenstown Phone: Fax: cathyw@qldc.govt.nz Please ensure you have read and understand the PC22 Definition of Visitor Accommodation - Issues and Options paper before providing feedback on the proposal. The executive summary provides a succinct summary of this paper. 1. I agree / disagree (delete as appropriate) with the preferred option as follows: Initiate a plan change now to alter the definition of visitor accommodation to allow for residential units to be rented out as a permitted activity for a limited period of days per year. 2. If you disagreed with the preferred option, as outlined in question 1, then which of the following options (as detailed in the Issues and Options paper) do you believe the Council should proceed with? Please tick as applicable: No change to the current definition of visitor accommodation thereby requiring the Council to take enforcement measures where visitor accommodation use occurs, even for only a limited period per year while homeowners are away on holiday. Initiate a plan change that enables residential units to be let for limited periods as a controlled activity. Not change the plan at all but issue a standardised resource consent, at relatively low cost, in accordance with the existing rules for all residential unit owners who wish to rent out their homes for a limited number of days per year.

6 YOUR FEEDBACK CONT Feedback Form - PC 22 Definition of Visitor Accommodation 3. If you disagreed with the preferred option, as outlined in question 1, do you believe that this issue should be deferred/delayed until the issues and options paper relating to PC23: Visitor Accommodation and Residential Amenity, is available, and that the issue should be discussed at the same time? Yes / No (delete as applicable) 4. How many days per year should a person be able to rent out their home and not need consent? Statutory Holidays (4 weeks=28 days) Other (please specify) 5. I believe the days per year (a year defined as commencing 1 April and ending 31 March) should be consecutive / cumulative (delete as appropriate). Consecutive: allows for only 1 period per year of which the days fall together. For example a period of up to 28 days. Note: a period of days in December and in January would be considered to be 1 consecutive period. Cumulative: any set of days falling at any time throughout the year and together totalling up to 28 days. 6. If you disagree with all of the above options, and have an idea for another option, please describe here: 7. What are the reasons for your preference? Please describe here: 8. Would you like to receive updates and information on future meetings and the notification of PC22? Yes / No (delete as applicable) Please complete and return to the contact details above by Friday 29 September 2006