Old Orchard Beach continues discussions on hotel to condominium conversions

Old Orchard Beach continues discussions on hotel to condominium conversions
Margaret Roe, Intern

OLD ORCHARD BEACH — Last December the Old Orchard Beach town council enacted a moratorium, or temporary halt, on the conversion of lodging establishments such as hotels and motels to condominiums.

 The moratorium, which was extended on Tuesday for another 60 days, was set forward due to concerns voiced by town staff after an increase in conversions and the minimum town standards surrounding these conversions. After thorough consideration of the previous regulations the council came to the conclusion that the development of an ordinance with specific regulations was the best solution.

The major differences between lodging establishments and condominiums are the ownership and amount of time they can be occupied continuously. Lodging establishments only have a single owner and can only be occupied short term, while condominiums usually have multiple owners presiding over one single unit each and allow long term residencies. Right now, the issue with motel to condominium conversions is that the minimum regulations provide no guarantee that the owner will continue to operate their business in a manner similar to a lodging establishment.

 

A public hearing took place on May 2 regarding a suggested ordinance to regulate the conversion of short-term lodging establishments into condominiums, which was proposed by Planner Jeffery Hinderliter. The hearing allowed citizens to raise concerns surrounding the new requirements, but was not formatted for a discussion of them. After citizens brought forward many questions regarding the proposed ordinance the council decided to schedule a workshop for May 17 so more of a conversation could take place than was possible at the hearing.

Hinderliter outlined the highlights of the proposed ordinance during the May 17 workshop. The main point of importance being the fact that the new ordinance would require more oversight over these conversions and the condos themselves. This oversight would not be limited to the code enforcement alone, as the condominium agencies would now become an important part of the inspection process. If condos do not comply with the new requirements they could be enforced via fines or the revoking of the owners license.

The most lively debate during this meeting occurred over the new level of enforcement and the required amount of days the condos would need to be rented, or advertised to be rented. Owners of the condos would be required to rent their units 305 days a year and could only live in it themselves 60 days a year, which again began talks over who would be in charge of enforcing this policy.

There seemed to be a divide within the hall over the level of enforcement. Many citizens were concerned there would not be enough enforcement of these proposals regulations, and that there is not enough oversight over conversions currently. The council members were in turn focused on the burdens this ordinance, and the possible enforcement of it, would place upon the town.

Town Council Chairman Shawn O’Neill said that while he appreciated Hinderliter's efforts on laying some groundwork on the issue, saw “no benefit for the town” with the proposed ordinance.

Town Councilor Michael Tousignant said he thought if the town put a 700 square foot size requirement on these types of condominiums, it would eliminate the concern of small hotel-sized rooms not suitable or equipped for longer-stay use by families being used as lodging condos.

“The tool that I think we’re looking for here, is a square footage restriction,” he said.

Discussions over this ordinance are set to continue before any actual new requirements are approved. So as the vacation season begins, the moratorium over these conversions remains in place.

 Intern Margaret Roe is a graduating senior at Old Orchard Beach High School.  Publisher Liz Gotthelf can be reached at newsdesk@sacobaynews.com.