Salida City Council voted 4-2 to expand short-term rental opportunities at their February 17 meeting, removing residency requirements in the Mixed-Use Center district and increasing total STR license caps citywide from 194 to 309 units. The ordinance specifically addresses Two Rivers Commons, where developers argued the area was designed as a secondary downtown and should match the residency exemption already granted to the downtown district. Council also unanimously appointed three Planning Commission members from a record six applicants and heard from seven residents advocating for winter recreational access to the city golf course. Treasurer Ben Gilling reported December sales tax collections up 4 percent over the prior year, with the Chaffee County portion up 13.7 percent.
Short-Term Rental Ordinance
City Clerk Kristi Keller presented three amendments to the STR code. Amendment 1 updates caps by zone district: 85 licenses for residential areas, 75 for Mixed-Use Neighborhood, 50 for Mixed-Use Highway and Center, and 99 for downtown. Amendment 2 removes the residency requirement in the Mixed-Use Center zone, which covers Two Rivers Commons. Amendment 3 allows year-round applications instead of the current May-June window.
Two Rivers Commons currently has 22 residential units with seven operating as STRs, four locally owned and three under non-resident ownership. Since the December downtown residency removal, the city received two new STR licenses, two pending applications, and multiple inquiries. Keller said the office has been inundated with calls.
Council Member Wayles Martin opposed the ordinance, arguing Planning Commission reduced caps only 1.6 percent instead of a meaningful decrease and that the residency removal was not part of the original assignment. Council members supporting the measure said Planning Commission did thorough work and argued Two Rivers Commons was entitled to downtown-equivalent treatment since the city changed its zoning from the original C2 classification. Supporters also cited the need for outside investment and revenue to fund affordable housing.
Staff clarified that Planning Commission was not given a specific percentage reduction target and that the residency removal was the commission’s own recommendation. Council Member Alisa Pappenfort moved to approve the ordinance, seconded by Council Member Suzanne Fontana. Martin and Joey Rovinsky voted no.
During public comment on the ordinance, Two Rivers residents and developers testified the Commons was envisioned since 2016 as a mixed-use community hub with commercial space below and residential units above, designed for second-home investment rather than full-time occupancy. They argued foot traffic from STR guests is essential for business viability.
Golf Course Winter Access
Seven residents addressed council supporting winter recreational use of the golf course for cross-country skiing and snowshoeing. Speakers described the activities as historically allowed until approximately five years ago, provided technical analysis that fairways are not sensitive to pedestrian traffic, and cited positive experiences at other mountain community golf courses.
Planning Commission Appointments
Council unanimously approved three Planning Commission appointments. Sara Walsh moves from alternate to regular member through January 2027, Don Reimer fills a vacancy through August 2026, and Laura Pomerenke was appointed as alternate through February 2028. Senior Planner Kristen Hodges reported receiving six applications, described as the highest number officials had seen.
Housing and Financial Updates
During council reports, 75 deed-restricted rental units were reported coming online through Jane’s Place and related projects, representing 13.5 percent of 2027 housing needs. The Crossing BV project completed purchase of the first seven homes with residents expected in March, and Flower Mill received a $2 million equity award.
Treasurer Ben Gilling reported total sales tax collections finished 4.1 percent higher year-to-date, ending the year with over 3 percent growth. City investments through Ehlers exceeded market benchmarks both quarterly and annually, and the finance department received its fourth consecutive financial reporting award. The mayor noted golf course lease renewal terms remain confidential due to executive session parameters. Council members also reported on a sustainability committee glass reuse presentation, an upcoming Steam Plant open house scheduled for March 28, and development of a Salida Arts and Culture Fund.
Other Business
During the pre-meeting work session, council reviewed the Dark Sky Salida initiative and received a request for a formal expression of civic support to enter the Dark Sky International certification queue. Council also discussed F Street closure plans for the 2026 season, including a $150,000 REDI grant application with $50,000 city match for sidewalk improvements, electrical infrastructure, and downtown art, with results expected in June.
Council approved the consent agenda 5-1, with Rovinsky voting no, including records retention policy updates and first readings of ordinances addressing unregistered vehicles on public property, nonfunctional turf prohibition, and the 5-H LLC annexation with residential zoning, all set for second reading March 3. During citizen comment, residents also raised concerns about the Vanderveer Ranch development and 5-H project transparency.
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