Franklin gives Airbnb rules first approval

Franklin residents who rent their homes out through sites such as Airbnb and VRBO are one step closer to being formally recognized under a city ordinance that would allow so-called short-term vacation rentals in certain areas.

The city's Board of Mayor and Aldermen unanimously approved a first reading of that ordinance Tuesday night, as well as another one that laid out a set of regulations for such rentals modeled after Metro Nashville's recently-approved rules.

For months, as demand for homey, boutique lodging in Franklin has grown, such rentals existed in a kind of regulatory limbo — neither explicitly banned in the city code, nor explicitly permitted.

One of the ordinances that received its first round of approvals this week would add vacation rentals to a list of acceptable uses in any areas where bed-and-breakfasts can operate.

Homeowners who rent their homes on a short-term basis will have to pay hotel/motel taxes and get a business license.

The second ordinance would establish a set of ground rules for the rentals. Among them: The homes must have smoke detectors, homeowners must submit a short-term vacation rental application and the rentals are subject to a complaint process that could result in having their permission to operate revoked.

City Administrator Eric Stuckey told the board that the regulations have gotten an OK from the state fire marshal's office, which had previously told city staff members that short-term lodgings — even single-family homes — must have fire sprinklers.

That requirement had frustrated city leaders, who said that it would be cost-prohibitive to install sprinklers.

Tuesday night at the board's work session, aldermen also looked at Harpeth River flood study results and some possibilities for mitigating risk in the future.

Amanda Burt of the Army Corps of Engineers laid out two potential projects based on the findings of a study that the city, as well as several other local governmental bodies, agreed to in 2013 following the devastation of the May 2010 flooding.

The first would involve modifying the Harpeth River channel under Franklin Road leading into downtown to allow water to flow more freely.

The city would be on the hook for about 35 percent of the project cost — around $350,000 — if leaders decide at some point to move ahead with that option. But that could also include some roadway and pedestrian improvements to the area — fixes that have been long sought.

The second option would involve physically raising houses above the projected 100-year flood level through a kind of voluntary program, which would be available for 24 homes.

That project would cost about $2.5 million, again, with Franklin picking up about 35 percent of the bill, according to early estimates.

Still, Burt told the board that the projected cost-benefit ratios were strong in both projects.

Aldermen generally seemed interested in moving ahead with more study, as city staff members recommended.

"I didn't realize this cost-benefit ratio is really good — that's wonderful to hear," said Alderman Ann Petersen. "We need to keep in mind this could have a great effect for a number of people."

Finally, a city staff member presented Franklin's 2014 Development Report, which lays out development statistics over the past year, alongside population projections and other figures.

Scroll through the report here:

Reach Jill Cowan at 615-664-2150 and on Twitter @jillcowan.