Montgomery City Council delays votes on $375M bond proposal, Short Term Rental regulations

MONTGOMERY, Ala. (WAKA) — Two of the most closely watched issues before the Montgomery City Council were delayed Tuesday after members agreed both proposals require additional review before moving forward.

The council voted to carry over a proposed ordinance regulating short-term rental properties and postponed action on a proposed $375 million bond initiative that would help fund a downtown convention center expansion and other city projects.

Residents packed City Hall to voice support and opposition to the proposed short-term rental ordinance, which would establish new licensing, inspection and operational requirements for properties listed on platforms such as Airbnb.

Airbnb owner Justin Hampton argued the proposal would make it too costly for hosts to operate.

“This ordinance makes it impossible to operate as an Airbnb host, from the inspection costs to the licenses for properties to having to get architectural drawings on properties that I’m not even making structural changes to,” Hampton said.

Others urged the council to adopt regulations to address concerns about neighborhood quality of life.

Lori Lawrence, who lives across the street from an Airbnb, said the constant turnover of guests has left neighbors uneasy.

“Every week I have new people that rent this house that I don’t know,” Lawrence said. “I wonder, ‘Will these be the people that will disturb the peace and sleep?’ Because we have to go to work and school while they’re on vacation.”

Short-term rental owner Jonathan Strange said Montgomery has fewer rentals per capita than many comparable cities and argued the ordinance is too restrictive.

“The way it’s written, we would have to stop operating,” Strange said. “We don’t have too many Airbnbs. We have a few bad apples that are ruining it for everybody.”

Resident Mark Hope said he became concerned after a nearby home was purchased and converted into what he believed would operate as a PadSplit rental.

“The first thing that happened to me was, ‘Gosh, I’m going to live across the street from a motel,’” Hope said.

After hearing from nine speakers, the council voted to continue revising the ordinance after the city’s legal department requested additional time to review several provisions. A public hearing on the revised proposal is planned for the next council meeting in two weeks.

The council also spent nearly an hour debating a proposed $375 million bond initiative before deciding to send the measure back to the Finance Committee for further review.

Council members requested a more detailed breakdown of how approximately $175 million would be allocated among city departments and neighborhoods.

District 7 Councilman Andrew Szymanski questioned whether the proposal represented the best use of the city’s borrowing capacity.

“Whether it’s the Orion amphitheater in Huntsville, the Coca-Cola amphitheater in Birmingham or even some other municipalities like Chattanooga’s United Soccer League stadium, there are things that we could do that would come in at a more reasonable price given our financial position today,” Szymanski said. “I know we have the financial capacity to borrow more, but I think that right now is a good time for us to be a little more calculated in how we do this.”

Council President C.C. Calhoun defended the proposal, saying the city would not spend the money all at once and that unspent funds could generate investment income while awaiting future projects.

“That money sits in the bank at 4 1/2% interest and generates $14-$15 million annually so that’s something that can help with the bond money and some of these other projects that we have in the city,” Calhoun said. “I want all the facts out for the community to understand.”

According to information released by Mayor Steven Reed’s office, the proposal includes $200 million to expand the downtown convention center, $50 million for facility and service enhancements, $45 million for a sports complex and amphitheater, $40 million for neighborhood projects, $15 million for housing infrastructure and $25 million for bond issuance costs.

The bond proposal will return to the Finance Committee for additional review in October before coming back to the full council. Additional information on the proposal is available on the City of Montgomery’s website.