By Greg Ruland

Larson newspapers

A Coconino County Superior Court judge threw out two claims and questioned a third in a lawsuit against Sedona by opponents of the city’s short-term rentals ban.

Barring a successful appeal, the ruling ends a Sedona property management company’s fight against the city in state court.  

Judge Charles D. Adams ruled Friday, May 15, Foothills Property Management could not sue the city under Arizona’s Private Property Rights Protection Act.

Because Foothills rents out Sedona homes for fewer than 30 days, the property management company alleged in a lawsuit filed Nov. 3, 2008, the city’s ban on short-term rentals amounted to a “taking” of its property.

Adams dismissed Foothills’ claim because the company owns no property subject to the short-term rental ban. Ownership of the “taken” property is required for relief under the Act.

“We’re certainly pleased with the judge’s decision and we will, as always, continue to enforce the ban on short-term rentals,” said Mike Goimarac, Sedona city attorney.

Sue Meyer and Paul Kanter, who own single family residences in Sedona for the purpose of renting them out to vacationers, joined Foothills in the lawsuit, but fared only marginally better than the property management company after Adams’ ruling.

Adams ruled the Private Property Rights Protection Act does not apply to laws enacted before Dec. 7, 2006. Because Sedona’s city ordinances outlawed vacation rentals since 1995, Meyer and Kanter could not sue for compensation under the act.

Adams also ruled Meyer and Kanter gave notice of their claims against the city too late because they knew about the short-term rental ban when they bought their single-family homes in 2003 and 2005.

Notice of a claim against any Arizona city must be given within 180 days of the date a person “reasonably should have known” they were damaged. Meyer and Kanter should have known the short-term rental ban would damage them at least two years before they notified the city of their intentions to sue.

“Their claim … was untimely and therefore statutorily barred,” Adams ruled. 

Foothills’ lawsuit in state court may be over, but the property management company also alleges Sedona violated its rights under the U.S. Constitution. That lawsuit, still in its initial stages, continues in U.S. District Court, Goimarac said.

Meyer and Kanter, parties to the federal lawsuit, also still have one state law claim following Adams’ May 15 decision.

Meyer and Kanter allege Sedona should not be allowed to stop them from renting their homes to vacationers because a city official told them at the time they bought the single-family residences the short-term rentals ban was never enforced.

The judge asked lawyers to explain in writing how the official’s statement could prevent Sedona from enforcing the short-term rental ban against Meyer and Kanter.

Goimarac said the city continues to respond to complaints about local property owners who violate the ban, but to date, no property owner has been prosecuted under the ordinance.

“We note violations, investigate them and ask people to voluntarily discontinue, but we have not taken any property owner to court,” Goimarac said.

Richard Rumrell, attorney for Foothills, Meyer and Kanter, did not respond to requests for comment as of press time.

Greg Ruland can be reached at 282-7795, ext. 127, or e-mail editor@larsonnewspapers.com.