The Normal Town Council on Monday approved an ordinance banning new developments of Airbnb, Vrbo and other short-term rental [STR] offerings in single-family neighborhoods.
Owners of already-existing rentals will transition into long-term rentals. Over the course of a five-year grace period, property owners can earn a return on investment while converting these properties into ones more suitable for single-family neighborhoods.
An extension to this debt repayment plan would be offered if the property owner proves a specific hardship, according to the ordinance.
The measure does not apply to multi-family [R-3] zoning. It replaces a moratorium started in the fall that had applied to both single and multi-family zoning. Town staff said multi-family zoning typically sees more tenant turnover, meaning short-term rentals are still a suitable use in those areas.
Staff also said these new rules “retain dwellings for renters in a price range that has been identified as more affordable” in single-family areas.
“We've got a history of going after people who violate the rules about operating businesses in residential neighborhoods,” said Brian Day, assistant city manager. “For some reason, short-term rentals get a pass. They get to operate a hotel room where nobody else gets to operate a business, and so we've got to look at why.”
Council member Kevin McCarthy moved to amend the ordinance to make an exception for units that are the primary residence of the owner for at least nine months per year. There are seven units in Normal that fit that description.
Council member Kathleen Lorenz said she disagreed with the move to “legislate at the table” and argued there was a better way to amend the ordinance than during the council meeting. Lorenz still voted yes on the amendment to the ordinance, as did all other members of the council.
The council approved the ordinance, 5-2. Lorenz and Scott Preston voted "no."
Lorenz said while she voted for the amendment because it was still a start, there was no answer as to why STR owners were not more involved in the process since the study began. She also asked Day and town planner Mercy Davison about why STRs are considered businesses in residential zones, but long-term rentals are not.
Mayor Chris Koos said Airbnb is “not interested in being part of” a solution to issues that arise when tenants disturb the neighborhood they temporarily move into.
Public comment
Public comment largely centered around whether STRs provided a meaningful service or a nuisance when placed in single-family neighborhoods.
Some public commenters spoke against the ordinance, calling it an infringement on their rights as property owners. Residents also said they were disappointed about a lack of detail in the explanation for the decision to ban STRs considering town staff had been gathering data on the topic since the fall.
Others argued a five-year grace period was too lenient for property owners who largely did not do their due diligence in registering their STRs with the town. Only 21 of the 63 STRs had done so when the moratorium began in October. Davison said many have continued to operate without being registered since then.
“How can the town recommend something with only the issues with short-term rentals without doing your due diligence, without talking to small business owners, without digging into why they are even popular here in Normal and who rents them out?” said Liz Austin, an owner of an STR in Normal.
Zoning code updates
Also at the meeting, the council responded to public feedback during a May meeting, providing some examples of potential zoning items in need of being addressed. Recommendations were made by the Normal Planning Commission meeting during a June 5 hearing. No members of the public testified.
Code changes approved Monday include separating detached garages from other accessory structures. Instead of both types being limited to 16 feet in height, garages now can reach 18 feet, while other accessory structures can be 12 feet tall.
Self-service storage is now allowed in M-1 and M-2 zoning, correcting an error where permits for these “mini warehouses” were omitted when the code was previously updated.
Parking pads adjacent to single-car driveways are now restricted to 9 feet in width and 20 feet in length, whereas previous code placed no limits on the pads. The measurements are the same as two and three-car driveways.
A requirement for off-street parking in the area closest to the campus of Illinois State University also was changed.
Beginning in 2001, in order to ensure adequate parking availability, one on-site parking space per bedroom was required within Normal’s Parking Impact Zone. That number was later reduced to 0.75 parking spaces per bedroom, addressing difficulties property developers had with designing buildings while following the code.
On Monday, the council eliminated a conflicting statement that gave “priority to code provisions that require a greater number of off-street parking spaces and allow greater lot density for residential use.”
R-1 and R-2 zoning requirements were addressed regarding ground-mounted solar panels to fix an issue where churches within such zoning had to rezone in order to mount solar panels. Now, properties within R-1 and R-2 zoning can apply for a special use permit without rezoning, much like they can for other significant changes on their property.
Other business
The council also approved a six-figure contract for upgrades to the playground at Anderson Park east of Uptown.
The project replaces the playground area on the west side of Anderson Park. That playing surface was built in 2004, putting it "well past its useful life," according to the Parks and Recreation Department. While most of the funding came from the Normal Park Land Dedication Fund, a $19,070.68 budget adjustment was necessary to cover the rest of the $102,918.10 needed for the project.
The contract Normal chose was submitted by Play Illinois, a commercial playground equipment provider. Play Illinois submitted the plan on behalf of BCI Burke, a playground manufacturer. The contract was one of seven proposals from three different vendors. Poured-in-place surfacing will be installed first, then parks maintenance staff will install playground equipment that is expected to arrive in six to eight weeks.
Demolition of the existing playground will begin late August. Replacement to the shelter area of the park is also planned for the 2025-26 fiscal year.
The council also approved an ordinance establishing pre-treatment sewer regulations. The move fulfilled obligations concerning pre-treatment established in an intergovernmental agreement with the Bloomington-Normal Water Reclamation District [BNWRD].
Federal environmental standards set by the Clean Water Act require a process known as “pre-treatment” to be done to reduce or eliminate contamination in non-residential wastewater before it is discharged to a Publicly Owned Treatment Works, which BNWRD serves as. The intergovernmental agreement authorizes BNWRD to perform pre-treatment on the town’s behalf.
The town also renewed an agreement for services with the McLean County Regional Planning Commission. The partnership between the two entities has continued for more than four decades. The annual agreement renewing allows the planning commission to assist the Town of Normal with planning services. The planning commission will be compensated in the amount of $54,000, the same rate as the agreement expiring at the end of June.
Services include creating a future land use map set for completion in late summer 2025, preparing transportation study reports, maintaining public websites and collaborating with the town to apply for state and federal grants related to transit, and for programs to address the housing crisis.
