Berthoud limits the number of short-term rentals to 50 with new regulations

By Will Cornelius

The surveyor

Short-term rentals are coming to Berthoud, but only 50 of them and no two of them within 200 feet of each other, under new rules passed by the Board of Trustees. In a 6-1 vote Tuesday night, the city adopted a new set of rules for short-term rentals (STRs), but not everyone thinks it’s a good idea.

An “enforcement nightmare” is how one person described it to the board. Other people urged the board to either limit the total number of STRs or create a buffer around each STR, but not both.

Loveland was cited as an example. The northern city has over 75,000 residents and no restrictions on STRs.

City staff presented a set of regulations for STRs to the board late last month. Two concerns dominated discussion among trustees in July. Should the buffer be reduced? And what defines an STR?

On August 13, the matter was back on the agenda. The trustees argued over how to establish a baseline for STRs at Berthoud, agreeing that future changes could be possible.

To narrow the scope of the issues, trustees voted on three major points of contention – the total number of STRs allowed, the size of the buffer between them, and whether accessory dwelling units (ADUs) should be allowed.

The majority of the panel supported a 50-unit cap within city limits, a 200-foot buffer zone, and, by a narrow 4-3 vote, allowing ADUs to be used as STRs.

The board voted 6-1 to adopt an amended set of policies governing STRs in Berthoud, with only Trustee Tim Hardy voting against the measure.

During discussions before the vote, Hardy said he was against limiting or creating buffers for STRs. He advocated for less stringent restrictions and emphasized that municipalities and homeowners associations can also set their own rules.

Hardy voted unanimously with the other trustees to approve the fee schedule for new STRs.

The cost of an STR license in Berthoud is $350, with a $150 annual renewal fee. Additionally, a $1,000 security deposit must be paid to the city for the license.

City staff plans to hold webinars on August 14 and 15 to discuss implementation of the ordinances. The new rules and regulations regarding STRs are expected to take effect within 30 days.

Other items discussed at the trustees meeting included a funding request from the House of Neighborly Service (HNS), the approval of seed money for the Berthoud Veterans of Foreign Wars (VFW) to find a permanent home, and the approval of a proof-of-concept design for the redevelopment of the former city construction yard and skate park along Second Street.

At the beginning of the meeting, HNS submitted a request for $6 million in funding from the city to build a Berthoud Life Center at the west end of Mountain Avenue. Founded in Loveland in 1961 and expanding to Berthoud in 1989, the nonprofit HNS brings together services and resources to help local people in need.

Cherri Houle, the executive director, called it “an investment in the future of Berthoud.” She said nearly 240 volunteers help HNS and that the organization has distributed over 339,000 pounds of food to people in the community since 2018.

A possible Berthoud Life Center would span two floors and house several nonprofit organizations. Jinger Tomassi, assistant director at HNS and Berthoud division manager, said the possibilities are endless. “CSU would love to partner with us.”

The multi-purpose building, based at the Loveland Life Center, would house partner charities and causes that work in harmony with HNS. The idea is that people who need help don’t fit into clear categories and could often benefit from the support of multiple nonprofits.

According to HNS, Berthoud has grown nearly 50% over the past five years, but demand for the organization’s services in the region has increased 529% over the same period. A Berthoud Life Center would solve that problem, HNS said.

The problem is the high cost of construction. Tomassi said the budget for the entire project is $10 million. She explained that HNS has raised $1.3 million, $1.5 million in expected support from foundations, and another $1.2 million has been pledged by companies and individuals.

However, a $6 million gap remains. All trustees supported HNS, the question was how to finance a future living center, perhaps at a cheaper price or with conditions.

Support for HNS was unanimous, but Trustee Hardy was concerned about setting a precedent, while Trustee Brett Wing was curious if costs could be reduced in some way. Tomassi countered that it was difficult enough to find a viable site in Berthoud, and that the proposed property had already been purchased outright by donors years ago.

Another issue was the extent to which the city would own or control future buildings. Houle and Tomassi said HNS was willing to discuss options. “Nothing is set in stone,” Tomassi said.

Trustees asked Kirk and city staff to consider funding for the Berthoud Life Center in the upcoming 2025 budget process, which is set to begin in September. Under the HNS proposal, they would need $3 million in 2025 and another $3 million in 2026.

With two further measures, the board pushed for investments in the creation of a more vibrant city center.

The trustees voted unanimously to fund the first year’s rent for the new Berthoud VFW location on Third Street with $12,000.

Walt Elish, the city’s economic development manager, also asked the board to approve a redevelopment plan for the former and vacant public building site and skate park on Second Street.

After a request for proposals, Elish said local firm Asher Architects + Engineers offered the best option at just under $8,000. The city council unanimously approved the redevelopment concept.

The next city council meeting will take place on August 27th at 6:30 p.m.