Jul 2, 2009 8:57 am US/Central
Alderman Targets 'Illegal' High-Rise Hotels
Ald. Brendan Reilly: High-Rise Condos Being Used As Hotel Suites
CHICAGO (Sun-Times Media Wire) ―
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Ald. Brendan Reilly (File)
CBS
How would you like to live in a high-rise condominium and pay hefty monthly assessments, only to have the building turned into an illegal hotel, with luggage-toting strangers streaming in and out?
That's what's happening at many downtown high-rises -- and Ald. Brendan Reilly (42nd) has had just about enough of it.
"A number of people bought into these large buildings on spec and found themselves holding on to a number of residential units they can't sell. They figure this is an easy way to make a quick buck. It's turning entire buildings into mixed-use hotels without any regulations," Reilly said.
"Imagine having complete strangers streaming in and out of your building on a daily basis toting luggage. Doormen and building superintendents are being forced to serve as concierge and bellhop. Monthly condo assessments are not meant to subsidize illegal hotel rentals."
At this week's City Council meeting, Reilly introduced an ordinance that would rein in so-called "nightly vacation rentals."
It would allow condos to be turned into hotel suites only if owners get prior approval from the condo association, secure at least $1 million in liability insurance and obtain a two-year "vacation rental license" for a $500 fee.
License holders would also be subject to rigorous inspection, safety and operating standards normally reserved for hotels.
Guest registration records would have to be maintained. Evacuation diagrams would have to be posted inside the entrance door.
The city's 3.5 percent hotel tax would have to be tacked on to the nightly rental fee. No unit could be rented for fewer than 10 straight hours.
Vacation rental units would also have to be "cleaned and sanitized between guests" -- including dishes, utensils, pots and pans -- with linens and towels changed and "food, beverages and alcohol thrown out." License holders would be prohibited from serving alcohol. Occupancy would be limited to one guest per 125 feet of floor area.
"There's a reason why the city licenses and inspects hotels. The overarching concern is to ensure public safety and make sure basic standards are followed," he said.
A quick search through Craigslist showed several nightly vacation rentals in downtown Chicago, some near Millennium Park, for rates ranging from $160 to $180 a night. Studio and one-bedroom units are also offered on travel Web sites.
Despite the 10-hour rule, Reilly said he has no reason to believe vacation rental units are being used for sexual trysts. But, he said, "You never know."
Tony Karamuzis, condo association president at 30 E. Huron, said he gets complaints about overcrowding and the "transient" atmosphere created by nightly vacation renters who fill the lobby and dominate pool and workout rooms that should be reserved for condo residents.
But the biggest complaint is about security.
"A lot of people have come to board meetings, raised their hands, and said, 'If you live there, the door staff knows and recognizes you. But people renting for the weekend are given [electronic keys]. We don't know who these people are. There are no background checks. We don't know if they're criminals or business people,'" Karamuzis said.
(Source: Sun-Times Media Wire © Chicago Sun-Times 2009. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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