Lackawanna City Council Bans Short-Term Rentals, Sparking Controversy

The Lackawanna City Council has enacted a city-wide ban on short-term rentals (STRs) in residential areas, requiring approximately 25 property owners to immediately cease operations. The decision, passed by a 3-2 vote, has ignited a debate between city officials and STR hosts.

Council's Rationale for the Ban

Council members justified the ban by citing several key concerns:

• Zoning Violations: They argued that STRs are incompatible with existing single-family and mixed-family residential zoning regulations.

• Unlicensed Business Operations: The council characterized STRs as unlicensed businesses that create unfair competition.

• Strain on City Services: Officials claimed STRs increase demand on city services without providing sufficient tax revenue.

• Housing Shortage: The ban proponents asserted that STRs reduce the availability of permanent housing, impacting essential workers and residents.

• Potential Loss of State Funding: The council expressed concern that the proliferation of STRs could jeopardize the city's "pro-housing" status and eligibility for state grants.

• Chuck Clark, Director of Development, reinforced this by stating "Airbnbs are little hotels," and therefore should be treated as commercial businesses.

STR Owners' Response and Concerns

STR owners strongly contested the ban, emphasizing:

• The majority of hosts are local families, not large corporations.

• STRs offer affordable accommodation options for travelers.

• These rentals contribute to local economic activity and property improvements.

• Steve Grady, an STR owner, highlighted the economic benefits, stating STRs provide a more affordable option for travelers than traditional hotels.

• Cory Hill, another property owner, expressed the immediate financial impact of the ban, including the need to cancel existing reservations.

Immediate and Potential Future Impacts

The ban has resulted in immediate cancellations for booked STRs, causing financial hardship for property owners. STR hosts are now considering legal challenges to the council's decision, indicating that the issue is likely to continue. The future of short-term rentals in Lackawanna remains uncertain as both sides prepare for potential legal battles.