A recent trend of property owners attempting to convert hotels and motels to apartment complexes has drawn the attention of the Branson Board of Aldermen.
The aldermen met in a study session on Tuesday, Feb. 13, to examine the housing needs of the city and desire of some hotel and motel operators to turn their facilities into small apartment housing in the entertainment district.
Acting Planning Director Amanda Ross presented the aldermen with research conducted by city staff regarding attempts from several hotel owners to convert their buildings into long-term housing so they would no longer be subject to the city’s regulations regarding hotels and motels.
“The proposal to convert hotels into apartment complexes has gained traction,” Ross said. “Our objective today is to identify effective strategies for obtaining versatile housing solutions and develop opportunities which encourage economic growth.”
Staff examined the intent of the entertainment district and the impact of hotel/motel conversions upon the entertainment part of the city.
Ross noted with the city’s Safe Housing Initiative, several hotel or motel owners who have issues with the city are attempting to convert their facilities.
“Most inquiries involve converting unlicensed, code-violating lodging establishments,” she said.
Ross said research found some reasons the code-violating property owners may want to have their properties declared something other than a hotel or motel are:
No annual lodging inspections
No lodging permit required from the city
No county health inspection
No lodging tax collection
The city’s current regulations for conversions, including restricting it to particular zoning districts and capping the number of dwelling entities per acre of property. The existing city codes do not have dimensional standards or density requirements for the entertainment district.
Ross reminded the aldermen of Section 94-45 of Branson City Code, which defines the entertainment district as: intended to protect and enhance the city’s primary entertainment corridor as a major visitor destination, key economic driver and important gateway into the community. The Entertainment District encompasses a wide range of entertainment uses including theaters, museums, rides and other attractions. Lodging and retail uses are also major components of the Entertainment District. Standards in the Entertainment District are focused on enhancing the visitor experience and function of the corridor. The Entertainment District supports high quality development and public realm improvements that enhance the visitor experience and function of the corridor. The Entertainment District is also specially tailored to support the eclectic character and dynamic creativity that is the hallmark of Branson’s entertainment.
She said what the non-compliant property owners want to do is not in line with the city’s stated desires for the entertainment district.
“Multi-family conversion does not seem to align with the purpose of the entertainment district,” Ross said.
City staff recommended more research be done about the Branson housing market, as previous studies done of Taney County received an overwhelming majority of replies from northern Taney County and little from southern parts of the county, including Branson.
Ross then spoke about the density requirements impacting the districts in the city, first speaking about a property southwest of 76 Country Boulevard. The property is in a High Density Residential District, this district allows 12 to 24 dwelling units per acre, and the subject property uses 15 units per acre, with 156 units in the complex. They had 88 computer aided dispatch calls in 2023, 49 for police, and 33 for fire.
The Penleigh, just north of 76 Country Blvd., was then shown as exceeding the city’s density requirements. The complex is in the Community Commercial District with an allowed density of 12 to24 dwelling units per acre, but the actual complex has 46.76 dwelling units per acre.
In 2023, there were 776 computer aided dispatch calls for service, with 531 of them police calls, and 174 fire department calls.
When comparing the city to other tourist destinations, multi-family is not allowed in the main tourism corridor of the Wisconsin Dells, Pigeon Forge, TN is using dorm housing on business properties for employees, and Gatlinburg, TN does not allow multi-family on the main corridor of the city.
Staff said in lieu of offering multi-family in the entertainment district, the city could offer density bonuses for conversions outside of the entertainment district, and also encourage the development of mixed-use developments with commercial and retail on the lower levels of residential structures.
During the presentation the aldermen were shown results of a survey showing residents want greater enforcement of property maintenance codes by the city, and 3 out of 4 residents surveyed were in favor of using public funding to remove dilapidated housing from the city.
Options given for next steps to the aldermen included putting a moratorium on conversions within the entertainment district, allowing staff and aldermen to talk to stakeholders and citizens about the best direction for the entertainment parts of the city. The moratorium would only apply to the entertainment district areas, and could be put into place as quickly as the Tuesday, Feb. 27, Board of Aldermen meeting.
The other option would require anyone wanting to make a conversion to get a special use permit from the city. The property owner would need to go before the Planning Commission for approval before being voted on by the Board of Aldermen. That action would require changes to city code, and could not go into effect before April 2024.
Ward I alderman Cody Fenton asked City Administrator Cathy Stepp about extended stays which are attempting to change to multi-family and if they’re trying to exploit a loophole to avoid having their properties up to health and safety codes for lodging facilities.
“They are seeing this as a loophole to potentially get out of the trouble they’re currently facing by not being in compliance with the current codes and licensing requirements,” Stepp said.
Ward I Alderman Clay Cooper said the number one thing people talk to him at his theater after shows is what the city is going to do with all the old and empty structures in the city.
Ward III Alderman Ralph LeBlanc said the health and safety issues are a priority to him and the fact people are trying to use loopholes to avoid health and safety requirements is a major issue for the city. He said some business owners have been telling him they’ve been working to fix issues but LeBlanc isn’t convinced.
“They tell me ‘I”m trying to do the right thing,’ but really, are you?” LeBlanc said. He then said city inspectors have brought him photographs from these same businesses showing multiple code violations.
Stepp said she wanted to stress the city was respecting property rights, and the staff is cognizant the property is owned by someone, but the city is also trying to balance the need for workforce housing and the health and safety of the community.
She also said to remember some of these property owners are exploiting people in our community most in need.
“These are predatory operators,” Stepp said. “There isn’t a kinder word for it. These people are preying on the disadvantaged in our community, and they’re not really affordable. While [renters] don’t have to come up with a down payment and credit check, and that’s how [operators] get people into their establishments, then [the operators] find ways to kick people out three days later with a way for renters to get back their money. This causes a stir for those of us at the city, police, or fire, or whoever they come into talk to.
“We have got to stop allowing bad operators to continue to prey on Branson residents.”
Mayor Larry Milton said health and safety issues were not an area where the aldermen would be willing to compromise. He said he supports a moratorium to allow staff time to examine the issue.
As the meeting was a study session, no formal action was taken by the aldermen.