Kenai planning commission approves two Woodland Subdivision short-term rentals

Kenai's Planning and Zoning Commission approved short-term rental permits Wednesday for two homes in the Woodland Subdivision.

The vote on the Ash Avenue home passed 3-2, with one abstention, after neighbors argued it would open their street to investor-owned Airbnbs.

Bob Molloy and Kristine Schmidt led the opposition. Molloy said he and his wife bought their home on Ash Avenue in 1985 partly because covenants barred businesses in Woodland Part 1. "This would be the first Airbnb in our Part 1 neighborhood," he said. He said investors could buy the street's vacant and burned-out houses, leaving families unable to buy or rent them.

Schmidt said short-term lodging "is incompatible with our neighborhood's single-family residential use."

The approved resolution states there are other short-term rentals in the subdivision. Planning Director Kevin Buettner said none operate in Part 1, adding he does not believe any in the rest of the subdivision hold permits either.

Stephanie Lenzini-LeBaron and Bryce LeBaron, now of Anchor Point, sought the Ash Avenue permit. Lenzini-LeBaron said long-term renters damaged the house and that short stays let the family inspect it between guests. She said the family left Kenai because of conflict with the Molloy-Schmidt family, an account Molloy disputed.

Both permits limit guests to six, or two per bedroom, and set quiet hours from 10 pm to 7 am. City staff found no adverse impact on neighbors.

The Walnut Avenue permit, in Woodland Part 2, passed with no opposing votes and one abstention. Derek Fowler, who has lived there since 2017, said he rents the home about 75 days a year while his family travels in summer. Neighbor Bruce Ladd said he worried about "transient people, not knowing who these people are."

Commissioner Fikes, who said city code is not a strong enough tool for short-term rentals, proposed capping the Walnut rental at 75 days a year, as Schmidt requested. The amendment failed 3-2. Buettner opposed it, saying it would be unfair since the Ash permit carries no such limit.

Buettner said the commission has held work sessions on revising that code, but the Kenai City Council has made no changes. Residents can appeal either decision to the city clerk within 15 days.