Townsend officials are preparing to use a new community plan to guide decisions on short-term rentals, workforce housing and future development in the city’s tourism-driven economy.
The Community Plan Advisory Committee delivered the plan to the city manager’s office March 17. City Manager Don Stallions said he expects the city to begin using it to inform planning and policy decisions by the end of June.
Townsend’s economy depends heavily on tourism spending, Stallions said. About 68% of the city budget comes from visitors. Sales and use taxes comprise about 90% of the budget. Of that money, Stallions said only 25% comes from people within Townsend’s ZIP code.
The recently completed plan places workforce housing among hospitality-related priorities, recommending tools such as accessory dwelling units, cottage courts and onsite workforce housing by special exception to preserve the local workforce pipeline.
Although members of the Townsend Planning Commission suggested a moratorium on short-term rentals in March, Stallions said the plan does not echo that call. It does, however, recommend a better permitting process and updating local definitions.
“We’re not against [short-term rentals],” Stallions said. “It’s just that we want to keep that balance of nice places for people to come stay with a good, robust economy, and keep it where we’ve got enough citizens that we actually have a town of people who live here.”
The plan includes a proposed cap on short-term rentals modeled after New York’s taxi medallion system, which could drive up prices if visitor demand rises. Planners wrote that such a move could “preserve residential character and prevent investor-driven housing shortages.”
Although the plan does not carry legal authority, Stallions said it will guide an upcoming review of local ordinances and serve as a framework for future regulatory changes affecting development and investment.
Stallions said Townsend has land available for development, indicating room for expansion as tourism demand continues. How that growth is structured will shape which projects move forward and how businesses operate in the city.
