Why West Dundee property owners want to offer short-term lodging
A property owner's desire to rent residential units to travelers has prompted West Dundee officials to consider allowing short-term lodging in the downtown district.
A recently renovated building at 124 W. Main St. contains four efficiency apartments above the first-floor retail space occupied by Craft Donuts & Coffee. Hoping to bring more visitors downtown, property owner Andy Burns and his partners want to make those units available as a short-term rental option, facilitated through online platforms such as Airbnb, VRBO and HomeAway.
The apartments, called 124 Lofts, would provide business and leisure travelers a "unique alternative" to suburban hotels, Burns said. The concept also would showcase the downtown area, he said, and encourage guests to visit nearby restaurants, shops and the recently refurbished RocHaus theater.
"One of the consistent goals has always been to try and generate additional foot traffic that would benefit the downtown hospitality and (retail-focused) businesses," said Burns, who also owns the adjacent Emmett's Brewing Company. "Allowing short-term lodging within the business district ... makes sense and is in alignment with the village's master plan."
West Dundee trustees have expressed their support for the plan and directed staff members to research how best to manage it, Community Development Director Tim Scott said.
The concept needs to go through a formal approval process, starting with an Aug. 27 public hearing before the planning and zoning commission.
"The idea of having residents, short-term or long-term, above storefronts can bring economic activity," Scott said. "Being able to stay downtown and the ability to have access to restaurants, RocHaus, physical amenities like the riverwalk - the village sees that as a fine fit and an appropriate complement to other existing uses downtown."
To start, the village would limit short-term lodging to upper-level residences within the downtown business district, he said. The proposal would permit the rental of an entire unit - rather than a single bedroom in an owner-occupied apartment - for 30 days or less.
A broader discussion on expanding the concept to other zoning districts could take place, Scott said.
Officials also are considering ways to regulate the service, such as requiring a business license, rental registration and annual inspections.
West Dundee collects a 6 percent hotel and motel tax from the Courtyard by Marriott on the far south side of the village. The same tax likely would apply to the short-term lodging, according to a memo to the village board.
Staff members also are exploring the possibility of a tax collection agreement with Airbnb, the memo states.
The village board is expected to consider the concept Sept. 10.