Auburn opens empty business space for overnight lodging

Auburn officials moved last month to allow overnight lodging rentals of unused business space downtown. Amid changing urban landscapes and the increasing popularity of short-term rental platforms, some cities like Auburn are moving to allow commercial space open for overnight stays. The growth of platforms like Airbnb and Vrbo reflects changing traveler tastes, with many visitors looking for unique, local rooms in walkable downtown environments, Auburn staff said. "Allowing short-term rentals creates an opportunity to activate underutilized spaces, bring more people into the Historic Auburn area and supports surrounding businesses through increased foot traffic, dining and shopping activity," Auburn Economic Development Director Jonathan Wright said in his July report. The Auburn Central Business District includes a mix of historic buildings, small storefronts and upper-story spaces that may not be viable for traditional commercial or office uses due to size, layout or market demand, he said. Allowing short-term rentals in commercial areas can help Auburn capitalize on the Gold Rush tourist appeal while offering visitors lodging options directly adjacent to the city shops, restaurants and historic attractions. "Short-term rentals, when properly regulated, can be compatible with surrounding commercial uses," said Wright. Unlike traditional residential uses, short-term rentals typically have no permanent occupants and produce limited daytime parking demand. The rooms generally create fewer long-term conflicts with surrounding businesses compared to permanent housing in commercial areas, staff explained. Permitting short-term rentals can also motivate owners to reinvest in aging or underused buildings, make improvements to upper-story or marginal commercial spaces and thus improve economic vitality, officials said. "The proposed change would not open the door to widespread conversion of commercial space to residential use, but instead creates a narrowly tailored lodging option that supports both the city's tourism objectives and the economic vitality of its commercial districts," said Wright. The move preserves the city's ability to regulate scale, location and operational standards for short-term rentals through the existing permitting process, staff said. Wright stressed that while the amendment applies the same standards for short-term rentals as residential zones, it removes the adjacent property owner notification requirement. "This adjustment reflects the fact that hotel and motel uses are already permitted by right in this zone, and such uses typically carry greater operational intensity and impact than individual short-term rentals," said the director. The additional notification requirement was deemed unnecessary in the context of the Old Auburn commercial environment. Officials say the amendment strikes an appropriate balance between maintaining the primary commercial function of downtown and allowing for flexible, visitor-serving uses. Short-term rentals in the district would be required to apply for an administrative permit for $265. Based on existing short-term rentals downtown, staff anticipates about $2,000 in fee revenue during this fiscal year. The Auburn Planning Commission held a public hearing in June to review the ordinance. Only one member of the public attended. Following the hearing, the commission voted unanimously to recommend that the City Council approve. The City Council then held a public hearing July 14 to introduce the ordinance. No members of the public spoke either in support or opposition, officials said. The Downtown Business Association also voted unanimously to support the plan the prior week. All City Council members present at the July 14 hearing voted in favor of the ordinance, authorities said. The required second reading of the ordinance was scheduled for the Monday, Aug. 11, council meeting after press time.