In the past two years, companies have started to modernize the practice of co-ownership of a property under a fully managed company, partnership, or other joint ownership structure. This model has been introduced to the Park City community, fractionalizing the ownership of vacation homes. For the past year, Planning Staff worked on Land Management Code amendments to protect primary resident neighborhoods, while allowing Fractional Use of Dwelling Units in those Zoning Districts that support secondary residences.
On October 27, 2022, the City Council adopted Ordinance No. 2022-21 to:
- Define Fractional Use (see definition below)
- Establish Fractional Use in those Zoning Districts that Allow for Timeshares and Private Residence Clubs
- Require an Administrative Letter for Fractional Use approval
- Require the Fractional Use management company to have an active Business License
On October 27, 2022, the City Council of Park City formally initiated proceedings to amend the municipality's land use regulations in a manner that would prohibit Timeshares, Private Residence Clubs, and Fractional Ownership and Use of Dwelling Units in the Residential Development, Residential Development Medium, and General Commercial Zoning Districts. Specifically, the City initiated amendments to Land Management Code Sections 15-2.13-2, 15-2.14-2, and 15-2.18-2. The City Council determined to immediately initiate an ordinance and directed Planning Staff to undertake a study, not to exceed 180 days, within these Zoning Districts and consider further land use regulations to mitigate adverse impacts and protect the long-term viability and character of these neighborhoods. The City Council expressly prohibits Timeshares, Private Residence Clubs, and Fractional Use of Dwelling Units in the Residential Development, Residential Development Medium, and General Commercial Zoning Districts until Land Management Code amendments regulating these uses in these Zoning Districts are adopted by the City Council. An initial public hearing before the Planning Commission on the proposed Ordinance and study is scheduled for Wednesday, January 11, 2023, at 5:30 PM at City Hall (445 Marsac Avenue, Park City, Utah).
For more information, a copy of the pending draft Ordinance (Project File PL-22-05439), or to provide input please contact the Park City Planning Department: email@example.com, (435) 615-5060.
At this time, Fractional Use is a Conditional Use in the Zoning Districts below:
- Recreation Commercial
- Historic Commercial Business
- Historic Recreation Commercial
- Regional Commercial Overlay
DWELLING UNIT, FRACTIONAL USE. Any Dwelling Unit which is owned by a limited liability company, corporation, partnership, or other joint ownership structure in which unrelated persons or entities own, sell, purchase or otherwise for consideration create or acquire any divided property interest including co-ownership or fractional or divided estates, shares, leaseholds, or memberships which are subject to, or subsequently bound by any agreement limiting interest holders’ or their designees’ right or functional ability to occupy or use the property to their respective interests or any other agreement which limits interest holders’ or their designees’ use of the property to fractional reservations through stay limitations of any duration. Fractional Use is established by any of the following elements: co-ownership or fractional or divided estates, shares, leaseholds, or memberships which are openly advertised, marketed, or offered for sale and sold individually at separate times; centralized or professional management; reservation systems; maximum or minimum day limits on each interest holder’s occupancy or use of the property; or management fees reflective of interval use or ownership, irrespective of whether the agreement may be cancelled individually or by any party. This definition shall not include non-commercial groups such as families, partnerships, associations, or trusts with divided interests or agreements in which the real estate is held and transferred within the family, partnership, association, or trust as opposed to sold on the free market for commercial purposes.
For more information, please see the following: