Traverse City commissioners voted Monday to have the planning commission set public hearings on and revisit the city’s tourist home and accessory dwelling unit (ADU) policies.

Commissioner Brian Haas asked commissioners to consider striking a restriction that requires tourist homes to be 1,000 feet apart in the city. Residents can obtain a tourist license from the city for $100 per year ($70 in renewal years) allowing them to rent 1-3 rooms in their homes to visitors for up to seven days at a time. Residents must meet several requirements to obtain the licenses, including living on-site in the home. With close to two dozen tourist homes operating within city limits, Haas noted the 1,000-foot distance restriction has blocked off large swaths of the city from interested homeowners who may wish to obtain a license.

Noting that the tourist home ordinance was passed in 1999 – long before websites like Airbnb became popular – commissioners unanimously voted to ask the planning commission to revisit the entire tourist home policy to ensure it adequately addresses the needs of modern homeowners and travelers. Commissioners also pointed out to meeting attendees that the tourist home discussion was separate from vacation rentals, which are illegal in the city and consist of homeowners renting out their entire residence for days or weeks at a time. Planning commissioners are asked to hold a public hearing on the tourist home policy and make a formal recommendation on any changes by January.

Commissioners also voted 5-2 to have the planning commission consider expanding the maximum number of new ADUs that can be built in the city each year from 10 to 20. Haas initially asked fellow commissioners to consider striking the restriction entirely, saying the limit was “arbitrary” and was only intended to be in place on a trial basis.

After some commissioners expressed concerns that lifting the restriction completely could open a floodgate of applications – particularly because homeowners do not have to provide parking spaces for ADUs, which could potentially impact neighborhood or on-street parking – the board agreed to start by looking at doubling the limit to 20. Commissioners Ross Richardson and Jim Carruthers opposed the motion. Planning commissioners are asked to hold a public hearing and make a formal recommendation on raising the maximum number of new ADUs each year by October 17.

Traverse City commissioners Monday also approved spending $5,000 to help fund a a local economic tax base and land use study, extending a contract agreement for five years with CH2M to operate and manage the city’s wastewater treatment plant, and waiving $704 in marina docking fees for the Maritime Heritage Alliance for the recent docking of tall ship El Galeon.