FLY CREEK - The Otsego town board will hold a public hearing next week on regulations and a licensing procedure that will govern short-term rentals in the town.

The town has been working for almost two years on developing the regulations which are now ready for public comment.

One sticking point for the town board members had been whether to include a residency requirement for license applicants.

"I would like to see it for residents only. If you open it up then I think we will have problems with absentee owners who don't care how they're run," board member Nancy Iversen said during a meeting a month ago.

The board had been divided three to two over the issue, but supervisor Tom Breiten said this week that town attorney Margaret McGown had told the board they can not include a residency requirement.

Breiten said it would have been possible to include an owner occupancy requirement, but the majority of the board members did not think it was necessary.

There have been some complaints regarding short-term rentals in the town, but the regulations are an attempt on the board's part to be proactive, Breiten said, and not in response to the complaints

The regulations call for short-term rentals to have a local manager who would be responsible for the day-to-day operations. The local manager is also the person who would be contacted, day or night, if there is a problem.

The regulations define short-term rentals as a dwelling unit rented or leased for less than 30 days. Occupancy is limited to no more than nine persons unless further restricted by fire and safety codes. Occupancy may also be limited by the zoning enforcement officer based on the number and size of bedrooms or sleeping rooms.

A license fee of $100 has been established for the initial inspection by the zoning enforcement officer for the first short-term rental unit on a property. For each additional unit the fee is $25. If there have been no complaints or modifications the fee for renewal is $25.

Licenses may be terminated by the town board following a public hearing if the owner is found to be in "material breech of the conditions of the license."

Renewals may be denied if there have been legitimate complaints about the operation of the short-term rental.

Violations of the law are punishable by a fine not to exceed $350 and/or imprisonment for up to six months, or both. Fines escalate with subsequent violations.

If adopted by the town board, the regulations will go into effect January 1, 2006. Applications would be accepted beginning September 1, 2005.

The public hearing will be held on Wednesday, June 8, at 8:30 p.m. in the town office building. Breiten said the time was set for the convenience of people in Fly Creek, who wish to attend.