Stonington officials are considering a moratorium that would halt the conversion of downtown waterfront commercial buildings into residences, fearing Airbnb-style vacation rentals could take over the island town’s commercial hub.
There are growing fears in the fishing community that storefronts along Stonington Harbor will turn into short-term rentals until there are only holiday properties left in use for a few months of the year .
The city set up a task force in December to examine the issue of lucrative rentals, which bring in about $2.8 million a year to Stonington, and consider potential ways to maintain a year-round community.
Linda Nelson, the task force leader, has proposed a moratorium that would prevent the first floor of a commercial building on Main Street from being turned into residential to preserve the city’s business district.
“At present the highest and best use of property in Stonington is [vacation rental] housing and that puts a lot of our traditional commercial properties here on Main Street at risk,” she said. “We are trying to keep our commercial first floor properties commercial and allow upper floor accommodations.”
The Main Street darkening has been going on for years. About 55% of downtown homes are now owned by non-residents.
“We’ve come a long way up the slope already,” Nelson said. “It doesn’t help us to have a dark city for 10 months of the year and only busy in July and August.”
The interconnected issues of housing and the shrinking workforce are alarming to city officials. They have seen worker accommodation evaporate in the hot property market, pushing more and more people who work on the island across the Eggemoggin Reach.
There are no more school buses going downtown due to lack of students. A board member also said kids no longer trick or treat in the heart of town because there aren’t enough people to hand out candy.
Even if the city can stop Airbnbs from infiltrating Main Street storefronts, there are still concerns that short-term rentals could cost island workers too much, prompting the task force to suggest several other proposals aimed at maintain and generate more housing options.
Along with the moratorium, the task force also recommended the creation of registration for all rental properties, a fee structure for different types of rentals, a possible cap like the one put in place in Bar Harbor, and reinstatement of the license. refueling for bed and breakfasts and hotels.
Although the task force believes in the five recommendations, it presented them à la carte to the select committee. He wanted to give the board the flexibility to choose different options and have the ability to tailor them to how the board saw fit.
Nelson stressed that the task force was not trying to ban short-term rentals. Summer cottage rentals have a long history on the island, and tourism is a vital part of the town’s economy.
But many believe the balance has tipped, which could lead to further digging of the island.
“When someone comes in and they buy – especially multiple properties – for investment purposes, all they do is turn around and try to rent it out for the highest price and the best he can get,” said Evelyn Duncan, a Select Crew Member. “All that money leaves the island frequently… It doesn’t pay for someone to keep a grocery store open full time. The opening of the pharmacy does not pay.
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