Attorney Mike Mallen, at a hearing on Wednesday on the topic of short term vacation rentals, brought up the issue of a "safety zone" around schools. However, hosts said guests are thoroughly vetted and there are so many schools and day cares that the zone would eliminate many rental sites.

Eda Walldorf, who said she and her husband have security cameras and other checks at their rental in North Chattanooga, said, "I don't think it's fair that if you live within a certain distance from a school that you're obliterated."

Attorney Mallen, representing GPS, said sex offenders, prostitutes and other undesirables could turn up at the rentals and be a threat to the 600 young students at the school on Barton Avenue.

The City Council, which last year turned down a short term vacation rental ordinance, is set to vote on first reading on June 27 and second reading on July 11.

This ordinance sets up a district where the rentals are allowed - mainly downtown, North Chattanooga and the Southside.

Under the old plan, hosts had to get their properties zoned R-3 or R-4. Zoning is not involved in the new program.

City Attorney Wade Hinton said if the ordinance passes it will go into effect in October. There would be a signup period for obtaining certificates for owner-occupied rentals. For absentee rentals, a sign would be placed on the property and those living nearby would be notified. There would be a hearing before the City Council if a complaint is filed within a 30-day period.

There is a $75 application fee for owner occupied and $125 for absentee. The annual renewal fee is $50.

The city will contract with a vendor that will monitor activity on the various short term vacation rental sites such as airbnb and Home Away.

Existing hosts are also asked to get a certificate.

There was discussion about also allowing short-term vacation rentals by owners outside the district but who own sites of five acres or more.

Cynthia Stanley Cash, North Brainerd neighborhood leader, said, "I wouldn't want a Bonnaro in the neighborhood every weekend." Others said they had no problem as long as the owner lived at the location.

There will also be a 24/7 hotline on rental issues set up by the city.

Steps will be taken to make sure all the hosts are remitting sales tax and hotel/motel tax.