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8.A. - Page 2 <br /> Staff has had initial conversations with AirBNB and has reviewed agreements it has with <br /> nearby cities. If directed by Council„ staff will negotiate an agreement with AirBNB. In <br /> order to more accurately reflect today's short term rental market, it is also expected that <br /> minor code changes may be required. All code changes will need to be reviewed and <br /> approved by Council. <br /> As part of the Partnership Redwood City discussion in March 2015, the Council gave <br /> staff direction to continue to explore ways to increase funding for affordable housing. <br /> Given that funds received through the collection of AirBNB TOT would be a "new <br /> revenue", staff believes that dedication of these funds to affordable housing would be <br /> consistent with previous Council direction. Staff will work with AirBNB to estimate <br /> projected annual revenue and will report back to Council. <br /> ANALYSIS <br /> As noted above, the City currently collects TOT from hotels in the City. The tax is paid <br /> by the hotel guest, and collected and remitted by the hotel owners. The monies <br /> received from hotels are substantial, and placed into the City's general fund. Based on <br /> a recent review of AirBNB's website, there are currently hundreds of short terms rentals <br /> in Redwood City. A majority of these are rooms for rent within existing homes, a <br /> smaller percentage are full apartments and single-family homes. <br /> If Council gives direction to move forward with an agreement, the following steps will be <br /> taken: <br /> • Staff will work with AirBNB to negotiate an agreement. This agreement would <br /> require that AirBNB collect and remit TOT to the City. <br /> • Staff will draft any associated Municipal Code amendments. Amendments would <br /> need to be considered by the City Council for approval. <br /> • Staff will also bring forward a report on projected revenue associated with <br /> AirBNB. Council can then discuss how these funds can be utilized for affordable <br /> housing. Staff expects this discussion would occur on an annual basis during <br /> budget process. <br /> Staff expects that an agreement can be reached within the next two months. Staff <br /> would also work on the associated code amendments within the same timeframe. <br /> ALTERNATIVES <br /> 1. Council can direct that staff not move forward with an agreement with AirBNB <br /> and pursue collection of TOT from individual property owners <br /> 2. Council can direct that staff move forward with an agreement with AirBNB and <br /> direct the revenue to the General Fund (rather than affordable housing) <br />