CANNON BEACH — Cannon Beach city councilors suggested a cap on vacation rentals at a work session Tuesday night in response to concerns about the impacts short-term rentals have on the community.

Vacation rentals would be capped at 200. The city’s Community Development Department reports that there are 196 vacation rentals.

“For many years, I think the highest I’ve ever seen it is 205,” City Councilor Nancy McCarthy said. “So 200 sounds just about right to me. It sounds like that’s what the demand is, and that’s where we should probably keep it.”

City Councilor Lisa Kerr emphasized that the cap was not meant to be punitive, although she and City Councilor Brandon Ogilvie acknowledged that it would be perceived as such by some in the community.

“It really resonates with me what was said about social utility, and how short-term rentals do not help a feeling of community, how they really deteriorate a sense of place in a community,” Kerr said. “To me, that’s an essential thing.

“It is true that a lot of jurisdictions are outlawing them, or outlawing new ones. Getting rid of what you have is a whole other matter and that’s a much more complicated thing. But limiting and putting a cap is a very simple fix.”

Kerr also cited Clatsop County’s 2019 housing study, which presented concerns about the impact vacation rentals have had on the availability and affordability of existing housing stock.

“We’ve heard a lot from people who have written in to us about wanting to see this happen, and we’ve heard from a lot of citizens who want to see this happen,” she said. “People who have spoken out against it, primarily, I believe, are people who have short-term rentals, or want to have them.”

Steve Sokolowski, the city’s community development director, said that the proposal would have to take the form of an ordinance to be presented to the Planning Commission for review and a community hearing before moving forward to the City Council for consideration.

“My suggestion would be that something gets drafted, people take a look at it and make sure it’s kind of in the right direction,” he said. “And then at that point in time, procedurally we will move forward.”

Mayor Barb Knop recommended that the city look at vacation rental conditions in other communities up and down the Oregon Coast for reference.

City councilors also indicated a need for more code enforcement and stricter penalties for vacation rentals, citing concerns about owners with violations.

Hayes said that owners could commit infractions repeatedly and be faced with numerous warnings and suspensions that spanned months instead of timely revocation of their rental permit.

“Warning, revocation,” Kerr said. “That’s how I feel. One warning. Because you can screw up, people make mistakes. And after that, it’s not a mistake.”

Sokolowski said that increased enforcement and penalties would have to go through the same process as the proposal for caps on vacation rentals, and recommended a draft that addresses the issues.

“And maybe the situation will get worse,” Hayes said. “And this is putting the brakes on it getting worse.”