July 23, 1997

Dear Planning Commision,

I've recently read articles in the Islander about concerns over transient rental property and plans to discontinue transient rental permits. This action, I believe would severely hurt the City of Avalon in terms of income, lost property values and tourism.

Here is a financial analysis for a modest spending pattern for a family of four visiting Avalon for a one week vacation.

These are very conservative estimates for one week. Many families will spend much more when you consider snacks, the arcade, clothing purchases, souvenirs, and higher priced rental homes which can be as high as $3,000 per week (an additional $270.00 per week revenue for the city).

If the family stays at a hotel, their cost is higher because of the lack of food preparation facilities. In many cases the ability to prepare one's own food is the only way a family can afford to come to the island. This is no real threat to the local restaurants, because the family will spend money at restaurants as well. Further, transient rentals are no threat to the hotels, which cater more to couples.

Therefore almost all of the monies spent by our family of four goes to the City, County, State and to businesses in Avalon. In addition, you are attracting families, which cerainly create less problems for the Sheriff's department.

If there are 210 transient rental units, as mentioned in a recent quote from the planning commission, and we assume that the property owner can retain only $850 of the $2,149, then the gross to the City economy is $270,000 PER WEEK. The summer season is about ten weeks long. This means that the transient rental housing market brings in $2.7 million dollars per year, minimum. In reality, less than half of this income goes to the transient rental property owner who must pay mortgages, property taxes, water, electricity, gas, sanitation fees, salt water fees, city permits, repairs, maintenance, etc. Most of this again goes to the City of Avalon and its businesses. I estimate the grand total to be in excess of $3.5 million per year to the local economy.

The properties are usually very well maintained and help to keep the property values at a very stable level. Remember, property values translate to property taxes which support the schools, library, hospital and other municipal functions.

The main advantage that I, as a property owner and winter resident, can see is that I can enjoy the Island and my home when the City is at what I believe is the nicest, off-season. Eventually I will become a year-round resident. If my transient permit were not renewed, I would NOT make my home available to a full-time tenant because my family would not be able to stay in our home in the winter months. The City would lose our portion of the $270,000 income and resulting taxes. The businesses will not get the income from the family of four. Everyone will lose. The transient rentals are a win-win for everyone.

The really pertinent questions are:

1. Who is objecting to transient rental permits and Why?
2. Why do you think you should limit my rights as a property owner?
3. Has someone forgotten that Avalon is a resort city?

Sincerely,

William L. Scheding and Family

P.S. It is interesting that you should choose schedule this issue for July 30th at a time when all of the affected property owners' homes are rented and hotels are full, making it virtually impossible for any of us to be there in person.

cc: Islander & Bay News