A proposal for a hotel conversion in Asheville takes center stage as condo owners push for the change to resolve woes over short-term rentals. The city has restrictions in place that could potentially result in fines over STRs.
Owners Clamor for Hotel Conversion in Asheville
Condo owners in a luxurious downtown building are exploring the possibility of a hotel conversion in Asheville. This would effectively sidestep a city ordinance that tightly regulates short-term rentals.
This initiative follows a series of violations against individuals renting out their condos at the 17 N Market St. building for short-term stays. According to condo owner Brett Krueger, a “few people” have already committed these violations. A potential daily fine of $500 comes with them. Krueger is one of the people advocating for the hotel conversion in Asheville.
The issue traces back to the development process of the condominiums that began in 2017. At that time, there were no restrictions against short-term rentals. However, subsequent changes in Asheville’s regulatory framework altered the landscape.
Krueger, a Charlotte-based developer with experience in Asheville projects like the Windsor Boutique Hotel and the South Slope development at 50 Collier, shared that the city’s evolving rules prompted the condo owners to consider alternative options.
Asheville’s Strict Short-Term Rental Ordinances
The city, which restricted short-term rentals outside zoned Resort Districts in 2018, confirmed multiple notices of violation for short-term rental activity within the 17 N Market Street building. In response, the building management wanted to convert the project into a hotel.
The proposed conversion falls within the Hotel Overlay for small hotels. This would subject condo owners to a different regulatory framework. Under the Hotel Overlay, owners must submit a full Public Benefits Table for approval, contributing $3,000 per room to affordable housing or reparations funds.
Krueger specified that seven condos would undergo conversion while the remaining condos would remain unaffected. The conversion would affect six two-bedrooms and one three-bedroom. Notably, only two people are reported to live in the building full-time.
Compliance Without the Woes
The project aims to comply with Asheville’s rules. Krueger emphasized that the goal is not to circumvent regulations but to adhere to existing standards. The proposal is currently seeking Level I planning approval through the city, with no public participation opportunities allowed.
Meanwhile, a broader measure to restrict short-term rentals within Buncombe County will be considered at an upcoming event on January 22 at Asheville-Buncombe Technical Community College’s Ferguson Auditorium. This marks a significant development in wider rental regulation for the Asheville-Buncombe area.
