Options include:

- allowing the number of STR licenses to exceed the exisiting limit in quandrants which have already reached the limit

- redrawing quadrant boundaries

- changing the town-wide 7% cap on STR licenses in relation to total housing units.

by Allyn Svoboda
Publisher

Proposed revisions to Town of Rico Ordinance 2022-05 regarding short term rental (STR) license allowed quantities and locations will be discussed at an August 13, 2025 joint meeting of the Rico Planning Commission and Board of Trustees at Rico Town Hall.

Board of Trustees previously approved the second reading of 2022-05 An ordinance of the Town of Rico, Colorado establishing a licensing process for short term rentals and amending the Rico Land Use Code to remove short term rentals from special use permit review at its June 15, 2022 monthly meeting.

An excerpt from the August 13 joint Meeting Packet (below) describes STR discussions at June and July 2025 meetings:

Town of Rico Memorandum

Date: August 6, 2025

At the Board’s June 2025 meeting, initial discussion centered on the possibility of issuing a limited number of short-term rental (STR) licenses in quadrants that have reached their capacity. The intent is to explore a framework that preserves the current town-wide cap while introducing flexibility through inter-quadrant license transfers. In response, staff prepared a conceptual policy for Board discussion in July. The proposal integrates a hybrid approach combining license transfer provisions with neighborhood safeguards. The model would allow issuance of new STR licenses in atcapacity quadrants only if the following conditions are met:

1. Transfer from Under-Capacity Quadrant
A license must be relinquished from a quadrant operating at less than 75% of its STR license allocation.

2. Minimum Separation Requirement
The proposed STR must be located at least 150 feet (measured lot line to lot line) from any existing licensed STR.

3. Neighbor Consent
The applicant must secure signed consent from all property owners within a 100-foot radius (within town limits). These consent forms must be submitted with a sworn affidavit affirming their authenticity and confirming that no signatures were obtained under false pretenses or duress.

4. Public Hearing Requirement
Applications meeting the above criteria would be reviewed by staff and forwarded to the Board for consideration at a public hearing. Public notice would be required in accordance with the Town’s standard noticing procedures.

At the conclusion of the July 2025 meeting, the Board determined that a more comprehensive review of the STR Regulations should be conducted in collaboration with the Planning Commission to evaluate broader policy goals and potential regulatory improvements. Discussion items for this joint session include:

• Reassessing the overall 7% cap on STR licenses in relation to total housing units.
• Evaluating the merits of an owner-occupied STR designation as a potential new category.
• Allowing each quadrant to receive one transfer license under defined criteria.
• Re-drawing quadrant boundaries based on current build-out rather than future development potential.
• Clarifying and updating response time and local responsible party requirements.

The attached STR Regulations have previously been amended once to replace the original lottery system with a waitlist structure and to revise both the application fees and the penalty schedule.

Staff recommends that the Planning Commission and Board of Trustees use this meeting to identify priorities and direct staff to begin drafting a revised ordinance that addresses the issues outlined above.

Short Term Rental history

March 9, 2022 (link) Planning Commission approved a motion to recommend the Rico Board of Trustees enact an ordinance placing a moratorium on Short Term Rental applications for a period of at least 6 months or until a new ordinance is adopted.

March 16, 2022 Trustees discussed Rico Planning Commission's recommendation to adopt a Short Term Rental moratorium.

June 15, 2022 Trustees adopted short-term rental regulations which replace the previous STR special-use permit application and approval process.

November 8, 2023 Trustees considered proposed amendments to Short Term Rental restriction and licensing requirements defined in the Rico Land Use Code (RLUC).

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