The Ocean Shores Planning Commission has again waded into the debate about whether the city should allow more property owners to rent their homes for nightly or short-term use as vacation properties.

In an formal discussion Feb. 13, Planning Commissioner Jeff Daniel, a managing broker for John L. Scott Real Estate, presented information that showed property values are higher for owners able to rent their homes on a nightly basis.

“There’s no question property values are going to go up,” Daniel said

Another Planning Commissioner, Eleanor Dorman, questioned whether having property values going up was worth the cost and potential issues that such a change could bring.

“Maybe I don’t care. Maybe I want a peaceful life,” Dorman said.

Daniel agreed: “A lot of people don’t necessarily care or want their values to go up, because their taxes are going to go up, everything is going to go up. That’s the issue for Ocean Shores, and that’s our obstacle. Does this town want to go to the next level or do we want to keep it cheap, and we’re fine with all the potholes and new trenches in our roads again?”

The Planning Commission was asked to look into the issue by Mayor Crystal Dingler as it continues a full review of the city Comprehensive Plan.

Although nightly rentals are not permitted in residential zones in Ocean Shores unless grandfathered in by prior use, online services such as VRBO and Airbnb show dozens of rentals in the city. Oyhut Bay, which allows nightly rentals under a special development agreement, and Seabrook to the north have been successful in generating higher prices for homes as well as significant rental income.

Planning Commissioner Greg Fox noted that both sides of the argument have merit, and he questioned what it would take to “bring this to some kind of proposal.”

Daniel proposed to list all the negatives on one side, and all the positives on another. The negatives, he suggested, could be addressed by regulations and city enforcement.

Another commissioner, Eric Noble, who manages the WorldMark Mariner Village, said he believes Ocean Shores is one of the few coastal communities to restrict nightly rentals.

“What we are trying to do now is help set a vision for what the city is going to be 20 years from now,” Noble said.

One of the handouts presented to the commission included Pacific County’s policy on short-term rentals, which are permitted in specified zones and regulated under a set of standards and requirements that include fees that are non-refundable.

Negatives of allowing nightly rentals included the following: Noise, parking, potential partying by visitors, more enforcement duties, higher property prices and taxes.

“I think it changes the atmosphere of the neighborhood,” Dorman said. If the cost of living goes up, “there are some people where it would make a difference if they could continue to live here.”

Positives included the contention that owners would likely keep their homes in better condition as part of a regulated rental program, that it would lead to new revenue and new construction, potential new jobs in catering to the rental businesses, and also enhanced property values.

The commission discussed possibly narrowing down the areas where it would be permitted in limited zones, and trying it out to see how such a policy might affect the community.

“This is a dramatic new source of potential revenue,” Daniel said. “… I think the issue is revenue for the city of Ocean Shores. I think the issue is new residents and new homes in Ocean Shores, and tax revenue from new homes.”

Noble and Daniel each asserted the city could better pay for projects, such as the Point Brown Avenue sidewalks proposal or maintaining road repairs, from increased revenue that could be generated with more nightly rental opportunities. They said that could lessen the need for other tax and fee increases.

“Since I have lived here in three and a half years, I have had taxes raised on me three times,” Noble said.

Commission Chair Cathey Peterson acknowledged changing the policy might spur more building.

“Would it encourage family style housing or bunches of small rental-type housing?” Peterson asked.

Daniel said most current construction is either retirement homes or vacation get-aways. “There are very few people who come here to raise a family. … This is a retirement beach town.”

The commission decided to return to address the issue by looking more closely at how the negatives could be addressed before making any further recommendation. Daniel said he would address the negative issues one by one.