Regulating short-term rental properties has been on Jim Thorpe Borough’s radar for several years and Council took another step toward getting its licensing procedure in place during a public meeting Thursday night.

Council heard from residents, many of them short-term rental owners themselves, and then went line by line over proposed regulations drafted by the planning commission, during a 3 1/2-hour session.

The changes would come as an amendment to the borough’s zoning ordinance and define where short-term rentals could be located and how owners would get them licensed.

As it stood going into Thursday night, the proposal calls for such rentals to be a permitted use in the R4 and C3 districts, which are located on the west side of Jim Thorpe, primarily in the downtown area.

All council members, however, said they were open to a zoning overlay that could allow a cluster of rentals in the R3 zone, which encompasses residential areas on the east side of the borough and in the “Heights” section of town, to be permitted by conditional use.

“We are a zoned community,” Council President Greg Strubinger said. “We need to decide what is in the best interest for the people in our community. The reason for being a zoned activity is certain activities are allowed in certain areas and others are not.”

Adopting a zoning overlay in the R3 district would not guarantee all short-term rentals on the east side of town would make the cut. Council said it intends to look at a map of existing rentals and try to consider as many as possible in the overlay.

“The borough has never done a zoning overlay before, so we need to check with the solicitor to become more educated on how that works,” Borough Manager Maureen Sterner said. “But, chances are some existing short-term rentals on the east side would not be covered because then you get into spot zoning.”

Lynn Humphreys, a short-term rental owner, strongly urged council to consider the zoning overlay.

“We’re all agreeable to work with you on inspections and things like that, but we want this to be positive for everyone,” she said. “Not permitting short-term rentals on the east side would preclude a lot of people.”

Joan Morgan also voiced her support for short-term rentals to be permitted outside of the downtown area.

“STR owners have made tremendous improvements on some of these properties and they have invested a lot of time and money,” Morgan said. “There were houses left vacant that are now fixed and have become income and tax producing properties.”

Where short-term rentals are permitted, owners would be required to get a license and renew it every year, passing a building and safety inspection in the process. Owners operating a short-term rental without a license would be subject to a $2,500 fine.

Council also intends to adopt a three-strike rule, meaning three violations of the ordinance would result in a license revocation for one year before that owner could reapply. Short-term rental owners would also be required to provide one off-street parking space per bedroom they are renting.

“I hope you’ll reconsider the parking,” Humphreys said. “One off-street space per bedroom is unrealistic given the parking situation in Jim Thorpe.”

Aubrey Hendricks, a short-term rental co-owner, questioned a provision in the proposal calling for owners to sign a trespass waiver, allowing for an enforcement officer to enter the building to address any issues.

“Nobody will feel comfortable signing an all-encompassing agreement to have someone come in to inspect,” Hendricks said. “It’s a violation of law and privacy.”

Having been on a committee that worked on several early drafts of the regulation proposal, Michael Rivkin said it was driven by complaints from neighbors of short-term rentals.

“The goal was not to put anyone out of business,” Rivkin said. “Our committee looked at several Jim Thorpe short-term rentals as models when drafting this ordinance. Parking, party houses, and absentee owners were complaints that drove borough to recommend an ordinance. Short-term rentals have a place in a tourist community. The goal is to figure out how that will work for us.”

Keith Frankenfield, a South Street resident, said the house next to him had three vehicles there last weekend and a vehicle with a New Jersey license plate just left on Thursday.

“I don’t see how a business like that can be up and running,” he told council. “It’s only a two-bedroom house and they are getting $170 a day. Let’s do things by the books. What makes them any different?”

The three-strike rule, short-term rental owner Sierra Fogal said, should help weed out the bad apples.

“We don’t want a bad name because one or two people don’t follow the rules,” Fogal said. “I’m not against an ordinance. I like the fact something is put in place, but we don’t something that will kill business. It’s been a rough year already, we don’t need more things that will kill business.”

Strubinger said after council decides on any potential overlay districts, the ordinance would need to be drafted by the solicitor and advertised before a vote would happen.

“That is a several month process in itself,” he said.