Over the past couple of months I have tried to gauge your interests in modifying the current hotel/motel zoning provisions related to interval ownership. While these polls are clearly unscientific, they provide a sense of the visitors to this site. The poll illustrated that 78% of those responding felt that some form of interval ownership should be considered. With 62% feeling that the town should look towards the idea of Condo-Hotel model.
For those wondering, a Condo-Hotel model involves designating a portion of the units in a hotel for ownership by a person or entity in either an interval or outright ownership arrangement. These condo units allow the investors in the hotel to recover a portion of their investment through out-right sales. While maintaining a steady stream of revenue from the rooms maintained for hotel guests.
In a Condo-Hotel arrangement, a portion of the rooms are maintained for hotel use, the remaining rooms would be split between weekly, monthly or even year-round ownership. The year-round ownership is usually a small proportion of the total units. All of the “owned” units are required to continue to receive full hotel services.
The goal is for a “win-win” arrangement. The town continues to collect a rooms tax from improved rooms. The developer gains the financial advantages of being able to sell a portion of the units to cover up-front costs. The joint ownership arrangement provides a greater level of security that the property will also be properly maintained.
The Economic Development Committee will be reporting on some of these ideas with a future zoning amendment.