The Fernley Planning Commission recommended approval of new regulations for short-term rentals and advanced the South Fernley Area Plan to the City Council during its Aug. 12 meeting.
Commissioners first considered Bill No. 383, a proposed code amendment establishing standards for short-term rentals such as Airbnb properties.
City staff said the ordinance is intended to create basic rules for an industry Fernley has not previously regulated. The proposal would require operators to obtain a business license and a minor conditional use permit and would limit short-term rentals to one per parcel.
Staff said Fernley currently appears to have only about 10 short-term rentals listed through Airbnb, but complaints tend to increase around Burning Man. Interim Chief Development Officer Michelle Rambo said the city has received complaints in past years about activities including tent camping in front yards and live music at rental properties.
The original ordinance proposed limiting occupancy to two people per legal bedroom and restricting parking to established parking areas on the property, such as a driveway, garage or carport.
Several commissioners questioned whether those restrictions were too limiting.
Commissioner Wagner said families renting a house together could easily exceed the two-person-per-bedroom limit without creating a nuisance. He used the example of a recent family stay in Truckee where several children shared a room with bunk beds.
“I understand the idea of setting a maximum on that, but two people per legal bedroom, there’s a lot of circumstances where I think it would be reasonable to exceed that,” Wagner said.
He also questioned prohibiting guests from parking on public streets, particularly in neighborhoods where street parking is already common.
Commissioner White asked whether the city had considered limiting the overall number of short-term rentals or establishing spacing requirements between them.
Rambo said staff had discussed both ideas but enforcement could become difficult. Instead, the proposed code would allow the city to deny or impose additional conditions on a short-term rental based on the frequency or concentration of other licensed rentals nearby.
White questioned whether that standard could be too vague and lead to inconsistent treatment.
Rambo said the provision was essentially a compromise in place of establishing a hard cap on the number of rentals.
The proposed permit would be classified as a minor conditional use permit. Staff said the fee would be approximately $2,440 to $2,500, in addition to the required business license.
Commissioners also asked about collection of transient lodging taxes. Rambo said a separate ordinance addressing business licensing and related requirements is being developed outside the planning code amendment.
The commission initially rejected a motion to recommend the ordinance as written, with Commissioner Flores casting the only vote in favor.
Wagner then proposed approving the ordinance with two changes: increasing the occupancy allowance to three people per bedroom plus two additional occupants in common areas, and allowing guests to park on the street along the frontage of the property they are renting.
That motion passed.
The recommendation will now go to the City Council for consideration.
The commission also voted 6-0, with Chairwoman Garvin abstaining because she owns property within the planning area, to recommend City Council adoption of the South Fernley Area Plan.
The roughly 10,000-acre planning area is located south of the Truckee Canal and east of U.S. Highway 95A and is commonly referred to as the Highlands.
Consultants working on the plan said transportation and infrastructure were among the biggest constraints facing future development. Roads in much of the area remain unpaved, canal crossings are limited, and upgrades would be needed to improve emergency access.
The planning process began with an analysis of existing conditions and included an online survey that received 222 responses, two public open houses attended by about 60 people each, and workshops with property owners, stakeholders, Planning Commission members and the City Council.
Consultants said one message came through consistently from residents: preserve the rural character of the area.
Residents also identified improved roads and emergency access, parks and trails, health care facilities and small neighborhood-serving businesses as priorities. Concerns included large-scale housing and industrial development and the need to ensure infrastructure improvements occur before major development.
The resulting plan is centered around five themes: maintaining rural character, improving roadway infrastructure, providing outdoor recreation, allowing small-scale neighborhood commercial development and creating limited new residential opportunities.
Most of the area would remain rural residential, open space or existing heavy industrial uses.
The plan also identifies a possible future roadway network with two improved bridge crossings over the canal. Consultants said the goal is to preserve rural roads near existing homes while creating paved routes that would improve emergency access and broader connectivity.
Small commercial areas are proposed in several locations, but consultants emphasized they are intended for neighborhood-scale businesses rather than large retail developments.
The plan also includes several areas designated for medium-density residential development, allowing up to approximately 13 dwelling units per acre. Consultants said some of those areas were added after requests from property owners and could provide future housing opportunities associated with growth at Naval Air Station Fallon.
Other areas would allow low-density residential development of up to six units per acre.
The plan identifies a possible school site, a civic utility site, open-space areas and a central park that could eventually include sports fields, playgrounds and courts.
Consultants estimated development envisioned under the plan could eventually generate approximately $8.2 million annually in tax revenue at full buildout, although they emphasized that the document represents a long-range vision that could take approximately 20 years to develop.
The plan also includes a water capacity analysis identifying potential future needs for wells, transmission lines, treated-water storage and distribution improvements.
Commissioner Wagner said the South Fernley plan was the strongest of the three area plans the city has completed.
He said one of its most important elements is the potential for improved transportation connections between Farm District Road and U.S. 95A, while still preserving the character that attracted many Highlands residents in the first place.
“I certainly recognize that Highlands residents move up there to kind of be left alone and off the grid,” Wagner said.
His concern, he said, is whether future developers and city officials will continue to follow the plan rather than repeatedly seeking land-use changes as development pressures increase.
“I hope developers can kind of stick to this plan and not try to rezone everything to other uses, and that future planning commissions and city councils would adhere to that as well,” Wagner said.
The South Fernley Area Plan will next go before the City Council for certification and adoption.
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