Restrictions on fractional ownership approved by Park City Planning Commission

“We’re striking a balance and we’re not banning it,” the commission's chair said. Photo: Pacaso

PARK CITY, Utah — On Wednesday the Park City Planning Commission voted to recommend to the city council land management code amendments that set boundaries and codify fractional ownership. The amendments do the following:

• define single-family dwelling fractional ownership
• establish single-family dwelling fractional ownership in zoning districts where timeshares and private residence clubs are allowed and require a conditional use permit
• prohibit fractional ownership in primarily residential zoning districts
• require an active business license for each single-family dwelling fractional ownership

The planning commission heard both sides of the debate at their meeting, including from a representative of Pacaso, the most well-known company offering this kind of home ownership model.

The company buys homes and creates a property LLC for each. They then find co-owners and handle the sales operation. They also manage furnishings, repairs, utilities, and property management. Some homes are offered for half a share, and others 1/8.

Proponents argue that the Pacaso model is more sustainable than traditional second-home ownership because the properties are full year-round with revolving guests contributing to the local economy.

Pacaso Public Affairs Manager Sarah Filosa asked the commission to consider expanding the permitted zones, noting that some of the prohibited areas allow nightly rentals.

Several owners of Pacaso homes spoke in opposition to the amendments.

“We’re not criminals,” said one owner of a Pacaso home on Empire Ave. “We are people that were looking to buy second homes in Park City already, and found that this was probably the most reasonable solution regarding the housing crisis that’s going on.”

On the other end, public comment sent to the planning department prior to the meeting showed widespread approval.

Planning staff and opponents of fractional ownership argued that the new rules uphold one of the core values of the city’s general plan — Sense of Community.

Bill Ciraco, an Aspen Springs resident and HOA board member, said “Park City is more than a resort. It is a town of people that live here, many of us full-time with children in the schools. There’s no right in the constitution to a fractional share of a vacation home that cost $7 million. That’s a high-class problem… If the price point is not right here for your second-home appetite, there are plenty of other places around the country where you can find a second home at a more affordable price.”

Following public input, commission chair John Phillips said he saw both sides, but emphasized that “there are impacts associated with fractional ownerships.”

“We’re striking a balance and we’re not banning it,” Phillips said. “What we’re proposing to do is zone it appropriately to zones that have similar uses.”

“This is a great replacement for a nightly rental,” commissioner Sarah Hall said. “It belongs in a nightly rental zone.”

“I think it’s going to be hard to defend against these types of fractional ownerships in zones where nightly rentals are permitted,” commissioner Laura Suesser said.

“We will continue to oppose attempts to constrain people’s ability to own homes with others, which we think is flawed public policy and an unjust encroachment on people’s rights,” Pacaso Corporate Communications Director Brian McGuigan told TownLift.

Park City Council will consider the amendments at their meeting on June 23.