The Short Term Rental (STR) Mess: Yes, It’s Commissioner Moran Again

Adopting regulations for short term rentals (STRs) in Saratoga Springs has been an agonizing ordeal. It has gone on forever, with public hearings held in many cases without the actual language of the proposed ordinance available.

Accounts Commissioner Dillon Moran is the self-appointed czar who tightly controls the entire process.

Both the New York Assembly and the Senate have adopted legislation that, if implemented, would establish a state registry and facilitate the taxing of STRs. The Governor has not yet signed their bill. The state law would allow municipalities that have adopted their own registry and taxes to continue.

For reasons I am still unclear on, Commissioner Moran has insisted that the city adopt its local law and licensing process before the state program goes into effect.

He’s The Czar

The following incident embodies the helter-skelter and arbitrary way in which Moran has “managed” this process of designing the STR legislation.

The City Council met for its pre-agenda meeting on November 18, 2024, just one day before the regular Council meeting. The proposed STR local law language appeared on the published agenda the previous Friday.

Finance Commissioner Minita Sanghvi chose this meeting to share that she had bought a house next to hers. She was unhappy that, while she could rent out her own home for one hundred and fifty days, she was limited to only one hundred and twenty days for the other house according to the proposed law.

No problem. Moran scrapped the one hundred twenty day limit and increased the non-owner limit to one hundred fifty right at the table.

Why did Sanghvi wait until one day before the adoption of the legislation to raise her concerns? Who knows.

I am not sure whether it is legally a conflict of interest for her to advocate at the table for a change that would benefit her personally. Still, the appearance of impropriety is very troubling.

There is also the problem of transparency. Most people would have thought that the language of the proposed law published by the city on the previous Friday was complete and accurate.

In fact, it is my understanding that further changes were made on the very day that the law was to be adopted.

Proper Notice

Moran had been advised on the Monday before the Tuesday meeting that the city was required to post proposed legislation at least ten days before adoption. He ignored this. Had he successfully gotten the Council to approve the law, it would have been subject to litigation.

Typos

The city has spent thousands of dollars paying the Towne Law Firm to craft the legislation. The draft legislation that appeared on the city’s website contained typos. It is axiomatic that any adopted law should be free of these errors. I find it hard to believe that the law firm was the source of the errors. People familiar with Moran know he routinely plows through things with little concern about mistakes (Oh, we’ll fix that later). It is reasonable to assume that he made changes in the document without consulting the law firm.

Perilous Waters

I do not have the time to go through the document here, but given Moran’s record and the incidents cited above, I have little confidence in its viability.

The fact that Moran himself tabled the proposed legislation is a testament to his reckless attempt to bring to a vote a deeply flawed proposal.

What Is This Legislation Really About?

Some months ago, Saratoga Podcast had a consultant who works with Granicus Corporation as a guest. The city relies on Granicus for assessment assistance.

He observed that before embarking on legislation, the city needs to ask itself where it wants to be in five years.

Is this legislation about improving safety in the city’s rentals?

Is it to produce maximum income for the city?

Is it about how to protect the quality of life in our neighborhoods?

If it is the last item, how will the regulations achieve this? One hundred and fifty days allows these units to be rented every weekend of the year.

More significantly, if noise and excessive parking are the issues, are there other ways to address these problems than licensing these units?

Cavalierly increasing the number of days a unit can be rented, as Moran did for Sanghvi, does not breed confidence that these issues are being rigorously analyzed and assessed.

A History Of Arbitrary Actions

This blogger has tried, with little success, to find out how Moran determines key matrixes. When he virtually gave away the use of city properties to bars and restaurants for outdoor dining, I FOILed for any documents revealing the basis for calculating these fees. The response to my request was that there were no such documents.

When the Accounts Department claimed they would receive $250,000.00 in income in their annual proposed budget for 2024 (they didn’t), I FOILed for any documents explaining how they arrived at this number. I was told there were no such documents.

Moran’s history is one where critical analysis is badly missing. He cannot be bothered. His law to manage STRs sadly continues this tradition.

4 thoughts on “The Short Term Rental (STR) Mess: Yes, It’s Commissioner Moran Again”

  1. John,

    I have no dog in this fight but your post is interesting.

    As was “Casablanca’s” Inspector Renault on discovery illicit gambling at Rick’s Cafe, I’d be shocked if the requirements of the Municipal Home Rule Law had not been dogmatically adhered to in the matter you reference.

    Yes, a proposed local law must “sit” on each member of the City Council’s desk for at least seven days (excluding Sundays) or mailed to each member at least ten days (excluding Sundays) prior to adoption. Then there is the matter of amendments. Proposed amendments of substance require a redrafting , re-publication and, once again, the 7 or 10 day ripening and, of course, re-hearing before a vote.

    I am sure all this was done and that your analysis is in error. As I mentioned, I’d be shocked otherwise. But in the unlikely event a innocent mistake was made I have listed the basic adoption steps below. Of course it’s a little more complicated.

    For those who have an interest in all the gory details and who may also suffer from insomnia, I recommend they consult the NYS Department of State Guide to Local Laws.

    Lew

    LOCAL LAW TIME SCHEDULE

    Minimum Time Frame

    Sequence of Events:

    7 calendar days exclusive of Sundays if placed on desk of members

    10 calendar days exclusive of Sundays if mailed to each member

    Introduction of Proposed Law to the Governing Municipal Body

    Notice of Public Hearing Public Hearing: Minimum 5 days before hearing

    Adoption of Local Law after Vote: 20 days (maximum)

    Recorded by Clerk of the Legislative Body upon approval

    Filing with Secretary of State: 3 copies for Secretary of State (including at least one original).

    Date Law takes effect (if not otherwise stated)

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  2. Is Moran putting the cart before the horse? The City might be overlooking another layer to this mess.

    If a Local Law regarding land use (Accessory Use) affects real property within 500 feet of a municipal boundary, a state road, or other geographic feature it requires City and County planning board advisory opinion referrals. Should that not be done first?

    Commissioner Moran is trying to regulate a land use which is not defined in the UDO. One might think it would be prudent to add a definition for Short Term Rentals to the United Development Ordinance before telling people what they can and can’t do when it comes to land use.

    On the Mayor’s last agenda was a referral to City and County planning boards of a Zoning Text Amendment adding Short Term Rentals to article 9.5 of the UDO. A Zoning Text Amendment would also be a Local Law.

    The City should go through the proper process of updating zoning to include Short Term Rentals. That could take around 60-90 days. Moran might have the regulation legislation in a final, final version by then.

    What is Moran potentially gaining by forcing his licensing “Local Law’ through before the Zoning is passed to establish said use? That should be explored more.

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