The city of Sedona has made its New Year’s resolutions, one of which is to start cracking down on short-term rentals by revoking permits as a penalty for holding events or rentals’ lack of a transaction privilege license.

Short-term rental specialist Teresah Arthur reviewed the city’s recent enforcement of its STR ordinance during the City Council’s priority retreat on Wednesday, Dec. 13. Arthur explained that she recently sent out a notice to property owners “reminding them that short-term rentals are prohibited from hosting an event” following a change to the city’s land development code earlier in the year.

Arthur’s list of prohibited “events” included weddings, receptions, retreats and workshops as examples of the functions that are banned in STRs, but she mentioned that she tried “to broaden that list just so these things would not be limited to, so that people really understand that your shortterm rental’s not an event venue.”

“I worked with code enforcement, and we did cite one property for hosting an event,” Arthur said. “It was an interesting case because they kind of emailed me and told me they were having the event, and there was a whole discussion that ensued about how they’re not supposed to do that, and talked to several members of staff, and they elected to hold the event anyway. A discussion with the city attorney and their representative [ensued], and they are now well aware, and paid a fine for their choice. Everybody’s been notified and we will continue to pursue them in the future.”

Councilman Brian Fultz wanted to confirm that the penalty for holding an event could include the property’s landlord having their STR license revoked for a period of time.

“Yes, it is,” Arthur said. “I would have been OK with that, but our city attorney in discussion, and the fact that this was our first case and a notice of reminder was sent out to everyone, again — so, going forward, any further infractions of that, yes, I will be very interested in revoking permits. And that revocation can be up to a year.”

Arthur further advised the council that interest in STRs as investment property has diminished but not disappeared.

“I continue to get phone calls from people who want to buy property, and want reassurances that their investment is going to be able to be an STR,” Arthur said. “I’m not getting as many investor calls, it’s a trickle, but Realtors still continue calling.” In response, she has been telling them that “there’s continued interest in local control.”

“We’ve probably had — I’m going to say, seven or eight notices of violation,” Arthur said. “Whether or not those become citations has to do a lot of the time with the judge’s readings of the issue, but I know we had for sure a couple people who were cited for noncompliance in obtaining permits.”

Arthur also pointed out to council that another avenue for enforcement has opened with the beginning of the renewal period for existing STR permits.

“When we first started the permitting process last year, an astonishing number of people still had no idea what a TPT license was,” Arthur said. “It was like 40%. [City Manager] Karen [Osburn] and [City Attorney] Kurt [Christianson]’s very wise counsel was to not discourage people from getting permits and to kind of leave this past year as kind of a learning year. But it’s renewal time, and everybody knows now that a TPT license is required. And I have received around a hundred permit renewals so far, and when they don’t have a TPT license, or they have an incorrect number, I’m not approving them, and they’re getting an email letting them know this is required and the permit won’t be approved without it.

“In terms of enforcement action and discussion with Kurt, the city now can cite. So if somebody gives me a permit renewal, they don’t have their TPT license, I’ve noticed them, they get past their renewal date and they let it lapse, we can cite them for operating without a permit. And I plan to do that. I think this has been a very generous year. I have sent out something like 1,500 emails educating people.”

“I’m trying not to be too excited about the opportunity to do some enforcement,” Arthur added.

The city is still planning to publish a list of all permitted STRs in Sedona in the coming months, along with the contact information for their owners.

“I think it’s really important to continue the enforcement that you’re doing, the aggressive enforcement. Certainly I appreciate it,” Councilwoman Jessica Williamson said. “Good work and continue pushing.”