The unregulated renting out of residentially-zoned Joseph homes to tourists is joining street repair as a hot-button topic at the Joseph City Council. During a Dec. 3 meeting held at the Joseph Library, about a dozen interested parties testified both for and against the practice.

Mayor Dennis Sands opened discussion, saying it had been on the council’s radar since spring. The council thought it had banned such rentals and turned the matter over to its attorney Wyatt Baum, who discovered the only applicable ordinance was written before the advent of Internet residential home rental websites, such as Air B&B, which left exploitable loopholes in the ordinance.

Sands said residential rentals create a lack of affordable rentals for full-time residents.

“I talked to a local property management person, and they said the market’s as tight as it’s ever been,” he said.

Of the dozen or so people who testified, only three said they were in favor of continuing the practice, although one of them thought it should be regulated. Two of the three people owned registered vacation rental properties.

Heather Tyreman, co-owner of the Bronze Antler Bed and Breakfast, said the problem was too prevalent to restrict entirely.

“They’re already out there, so it’s a matter of controlling what’s there,” she said, adding that many homeowners can make more money from short-term rather than long-term rentals and that an owner’s residential presence (she used a duplex as an example) on the rental property should be taken into account.

Jeff Whittaker of La Grande owns two Wallowa County residential properties. He occasionally resides at one of the properties, but also rents it out from time to time. Whittaker said he employs property managers and thoroughly screens his renters. He argued that his renters contributed financially to Joseph’s economy during their stay. His rentals are registered with the county.

Judy Kinsley, a teacher’s aide at Joseph Charter School, said the lack of affordable housing in Joseph has led to a number of JCS students attending school in Enterprise because of the housing shortage.

Tom Clevenger of the Joseph Fire Department said the lack of local housing at Wallowa Lake Village had reduced the pool of firefighters that lived in that area down to one, which has led to a steep increase in fire insurance premiums. Clevenger said he worried Joseph could experience a similar fate.

Corey Roberts, a Joseph resident who rents long-term, voiced her concerns that the vacation rental phenomenon and lack of local affordable rentals eventually could force her family to move elsewhere.

Many of the others who testified shared concerns about property tax increases, unruly renters who avoided accountability and the loss of the sense of community with a revolving door of neighborhood guests.

“You won’t have people with a vested community interest,” Shelley Curtiss said.

Council member Tyler Evans suggested allowing a few of the residential vacation rentals to pursue business with appropriate regulation and taxes, with the council having the option to discontinue the practice if it had negative effects on the community.

“If you buy a home in a residential zone, it means residential – not a business,” Sands said. “The housing market is tight, and this will just make it worse.”

City Attorney Baum said many cities dealing with the issue let current businesses stay open due to fear of litigation over private property rights.

“The council needs to address this,” he said.

A preliminary council vote showed only Sands willing to ban the rentals outright. The council scheduled a community/city council workshop on the issue with the first workshop scheduled for 6 p.m. Wednesday, Dec. 9 at the Joseph City Library.

Other topics covered included presentations by several local organizations applying for grants from the city’s share of the county hotel tax.

The council also discussed the Wallowa Valley Arts Council’s rejection of the Stubborn Mule Saloon and Steakhouse owner’s request to install a bronze motorcycle sculpture outside his business.

“The decision was not made flippantly,” WVAC president Shelley Curtiss said. “We took it very seriously, like jurors of an art show. The quality of the art work, the size of the artwork compared to the location and whether or not it fit into the general theme of Main Street is the standard we applied to the application.”

The council also approved ordinance 2015-02, which bans the sale or processing of both medicinal and recreational marijuana within the city limits. The council previously had a similar ban on marijuana within 1,000 feet of any designated area children were known to assemble, which the council thought effectively blanketed the city, but concern over some citizens looking to squeeze in a marijuana facility in areas that didn’t overlap led to the complete ban.

The council also approved the hanging of banners from city fixtures to promote the Bronze Blues and Brews festival and decided to advertise for the city’s public works supervisor position for $35,000 – $52,000 per year depending on experience.