An explanation of Grand Coulee's residential zoning and short-term rental rules

People who live in areas that are zoned as low-density residential areas in Grand Coulee aren’t allowed to operate a business there. That includes short-term rentals, such as bed-and-breakfast places, even if owner-occupied, or through AirBnB or other websites specializing in short-term rentals.

The city’s code states that it’s OK for friends or family to stay in an extra room at someone’s house. Or, in the case of a motorhome, a guest can stay for up to 14 days within a three-month period, but that no rent can be charged, and the vehicle can’t be hooked up to the city’s water and sewer system. This defines the difference between running a business and having guests over.

“We need to stand on some reasonable rules,” said Grand Coulee Mayor Paul Townsend. “The Electric City issue raised some problems for us.”

Earlier in the year, Electric City decided against allowing short-term rentals in response to residents who said large groups of people would be up late partying last summer, being loud in a house in their neighborhood.

In the higher-density residential zones, Grand Coulee City Clerk Lorna Pearce explained, there is already traffic, and so such restrictions against short-stay businesses aren’t in place there. But in the low-density zones, allowing businesses and short-term rentals would bring extra traffic to neighborhoods that are normally more quiet, which is why the restriction exists.

Grand Coulee is working on its comprehensive plan, and both Townsend and Pearce said they have spoken to residents who would like to change that restriction. Both said the city takes those opinions into consideration.

But even if Grand Coulee did change the rules, Pearce said, people interested in doing short-term rentals would have to get a business license, register with the state so the state can get their taxes on those sales, and contribute to the city’s lodging tax fund.

Otherwise, Townsend reasoned, business is being taken away from local motels, and revenue ordered by state law doesn’t go into the lodging tax fund.

“If we have one or two or three people come up and say, ‘Hey I want to do that,’ is that really representing the community?” Townsend asked, “or could it become an annoyance for the rest of the community?”

Things are spelled out fairly clearly in the city code, but Townsend feels it wouldn’t hurt to add more language to the code to say just how short is short-term.