The council remained split on a preference between the contrasting options, but the majority ruled out a prohibition on all STRs during a May 26 work session.

In an upcoming work session, city attorney Jake Summers will present drafts of each option, and the council will select one as a draft ordinance to go before the Planning Commission and the City Council for a vote.

The fate of STRs in Orem has become a hot topic among residents as the city attempts to build a clear, enforceable policy regarding them.

Summers stated in a January work session that STRs are currently not allowed based on Orem city Code 22-19-1, which prohibits transient lodging in the city.

However, he said previous state laws prevented the city’s ability to enforce or regulate transient lodging, leading the city to adopt a “more relaxed approach” to enforcing them based on complaints. New state code gives cities greater authority to regulate.

STR owners say they were allowed to operate by the city and that Orem would go against its word by banning their properties. Two STR owners who spoke under the condition of anonymity in February told the Daily Herald they received permission to operate their businesses and were at risk of losing important investments.

Some neighbors argue STRs were already illegal and that an outright ban should remain, and that STRs can impact the quality of life in a neighborhood.

The council’s latest decision means the STRs will likely continue in some form, though much remains undetermined.

If non-owner-occupied STRs were allowed by the council, it would likely come with density limits to “mitigate neighborhood impact,” and numerical caps, according to a city proposal.

Summers also proposed a legacy status for STR owners who have been in operation prior to Jan. 1, 2025, where they could be exempt from density and numerical caps if they meet certain criteria.

The council did not come to a consensus on whether legacy status would be honored if non-owner-occupied STRs became restricted.

Also discussed was a regulatory process for STRs for both options. Summers estimated it would cost from $141,000 to $210,000 to hire full-time personnel to enforce STR policies.

“This is a very regulatory-intense process, especially if the council adopts something involving the legacy,” Mayor Karen McCandless said during the work session. “Because at that front end you’re going to have a lot of people coming in trying to provide information to show that they were in existence before, and then going forward you are going to have a lot of regulatory work.”

The proposals outlined that a regulatory policy would come with fees for STR owners to pay.