We met for a second time with concerned residents today at the Anna Maria Island Community Center. There were about 30 residents in attendance with Commissioner Yetter in attendance and Mayor Murphy facilitated the discusion.
We continue to have professional and respectful dialogue. AMIVPA executive directors Darcie Duncan, Mike Brinson and Larry Chatt attended the meeting and answered questions. Mike Brinson introduced the group and discussed his take on the discussions thus far. A very fair question was asked of the association. The commission is discussing three tiers of potential vacation rental guidelines. Tier 1 is legislating rentals for better guidelines, Tier 2 is making vacation rentals illegal with a special provision that would allow individuals to continue to rent their property and Tier 3 is making some vacation rentals illegal to be rented some time in the future. Mike answered for the association explaining Tier 1 is perfectly acceptable while tier 2 and 3 has the association gravely concerned.
Larry Chatt discussed the challenge with losing vacation rentals in Anna Maria City as it relates to “real property values.” He sited in 2007 when Holmes Beach made R1 one month rentals it added significant supply of non weekly rentals to the real estate inventory. It is all about supply and demand. 8 out of 10 buyers walk through the door requesting a home that can supply weekly rental income. It is the opportunity for a person who loves the island to “jump on the bus now” in hopes to retire to the island. The rental income allows the owner to afford property taxes, insurance and other operating costs. When Holmes Beach made the decision to add R1 to the mix of non rental weekly properties the value of those homes as well as Key Royale R1AA dropped approximately 25-30% and Mr. Chatt suggested Anna Maria City can expect a similar effect on property values if significant quantities of non weekly vacation rentals are added to the inventory of real estate. Darcie Duncan went on to explain that all of us would love to add permanent residents to Anna Maria City but 9 out of 10 cannot afford to purchase and let the property sit. We cannot generate buyers for a product no one wants.
Many of the residents understood the challenge regarding property values and many said a drop in value would be pallitable if that was the necessary evil to stop overbuilding of big box rentals in Anna Maria City.
Mayor Murphy did a fabulous job of closing out the discussion. He summarized the property managers made it clear a vote to make vacation rentals illegal in the City of Anna Maria regardless of special provisions will create separation between the City and the association. In addition, he stated the City can expect less cooperation from property managers if that is the route taken.
The meeting lasted one hour and fantastic, open and honest dialogue was exchanged by all.