NEW BUFFALO TO LIMIT NUMBER OF SHORT TERM RENTALS

About 80 people were on hand when the New Buffalo City Council imposed a cap on vacation homes in response to sharp rise in their numbers and complaints about neighborhood disruption.

By:  Stan Maddux

NEW BUFFALO – A cap has been imposed on the number of short term rental homes in New Buffalo after a stormy two-years of debate in the tourism driven lakefront community.

The decision November 23 by the New Buffalo City Council was fully expected but people on both sides of the issue still put up one last fight.

Full time residents like Ron Watson have seen familiar faces in their once quiet neighborhoods replaced by a revolving door of noisy strangers vacationing in what used to be primary residences.

“My block is party central,” Watson said.

Watson said as many as 10 homes are now short term rentals on Shore Dr. where he resides along a very short strip of the Lake Michigan shoreline.

Feeling more like a stranger is what resident William McCollum finds most upsetting.

“The loss of community shocks me,” he said.

“This used to be a real town. Now, all I see are strangers,” said Eve Moran, another full-time resident.

Mayor John Humphrey said the cap has nothing to do with a perception that the city is out to “punish second

New Buffalo Mayor John Humphrey (left) and city councilman Roger Lijewski listens to citizens speak before limiting the number of short term rentals in the city.

homeowners or people from Chicago.”

He said it’s about keeping viable a city where one in 11 homes are now short term rentals.

The population has dropped from 2,821 in 1980 to 1,882 in 2010, according to U.S. Census Bureau figures.

Short term rentals are not totally blamed for the decline.

Humphrey, though, predicted more population loss without putting the brakes on property owners meeting higher demand to rent their homes for short stays especially during the summer.

The increase in short term rentals is also blamed for rising housing prices beyond the reach of young families wanting to live here.

“There has to be some measure of control.   You just can’t let the market dictate where your town ends up because you will not have a town at a certain point,” he said.

Short term rental owners like Jason Milovich feel whatever is gained in population will not replace the money lost by discouraging tourism.

“This proposed ordinance I believe will drive a stake through the heart of this economy,” he said.

Opponents of the cap also called it an example of government outreach and violation of their property rights.

Prior to the cap, a temporary moratorium on short term rentals was in effect the past two-years to give officials time to permanently address the issue.

Over the summer, Humphrey said parking ticket sales at the beach were the highest ever and restaurants often ran out of available seating.

“We’ve had record numbers of visitors here,” he said.

The 150 registered vacation homes in the city will be allowed to continue operating, but not the over 100 properties on a waiting list for short term rental permits.

City Manager Darwin Watson said the city will consider issuing more short term rental permits a year from now if places are identified for them to operate without becoming too dense in number.

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