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Press Release - Settlement Agreement - 130 Reed Court

TODAY’S DATE: February 8, 2017
 
RELEASE DATE: February 8, 2017
 
TITLE: Settlement Agreement – 130 Reed Court
 
CONTACT: Larry Pennell, Interim City Manager
 
ST. HELENA, CA – In 2012, the City of St. Helena adopted an ordinance establishing permit requirements for the short-term rental (less than 30 days) of single family homes. The ordinance prohibits short-term rentals without a permit and requires the collection and payment of transit occupancy taxes.
 
On April 17, 2015, the City issued letters to the owners/managers of a single-family home located at 130 Reed Court who had been renting the property on a short-term basis without the requisite permit. The City sought enforcement of Section 17.134.100(B) of the Municipal Code which provides for civil penalties related to illegal short-term rentals. The owners/managers did not come into full compliance with their obligations. On October 10, 2016, the City issued another letter to the owners/managers of the residence.
 
The City is pleased to report that the parties now have entered into a settlement agreement concluding this matter. Under the settlement agreement, the property owners/managers are required (1) to cease and desist from engaging in short-term rental activity without a permit issued pursuant to the City’s Short Term Rentals Ordinance (Chapter 17.134 of the St. Helena Municipal Code) and (2) to pay the City $35,742.00 in taxes and penalties owed under the Transit Occupancy Tax Ordinance (Chapter 3.28 of the St. Helena Municipal Code) and the Short Term Rentals Ordinance. Meanwhile, the owners/managers report that the property is under contract to be sold, with escrow scheduled to close on or about February 9, 2017.
 
Mayor Alan Galbraith said: “The City is pleased with this short-term rental settlement. Coupled with review of all identified illegal short-term rentals, I believe the City continues to send a strong message to the community that we will not tolerate such commercial violations of the City’s laws.”
 
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PRESS RELEASE