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RMOW suspends vacation company’s business licence The municipality has suspended the business licence of AlluraDirect.

RMOW suspends vacation company’s business licence

The municipality has suspended the business licence of AlluraDirect.com, a Web-based lodging and vacation services company, for facilitating the rental of residentially zoned properties on a nightly basis.

At a two-hour show cause hearing June 17 council members voted to suspend Allura’s business licence for three months.

Whether Allura, which operates out of Vancouver, needs a Whistler business licence to operate its Web service remains to be seen.

"They make a point on their Web site that they are part of the community," said Bill Barratt, general manager of community services for the municipality. "I’d think it’s important to them."

Representatives of Allura did not attend the hearing. In a letter to the municipality Allura President Suzanne Chappel explained that: "We are a small company with limited human resources that are currently 100 per cent committed to meeting significant marketing deadlines in preparation for the 2002/2003 winter season."

In addition to suspending Allura’s business licence for three months the municipality wants to see the company’s books. Sanctions imposed this week include requiring Allura to provide a list of all properties on its Web site each month, along with addresses, and a copy of records showing all rental bookings for those properties. The municipality also reserves the right to review Allura’s business and rental records at any time during normal business hours.

Allura could reduce the suspension period and have its licence reinstated by complying with all of the above conditions at any time during the suspension period.

In a presentation to council Barratt alleged that Allura is facilitating breach of a municipal zoning bylaw by advertising, marketing and processing payments for approximately 20 properties listed on its Web site which are zoned residential. The B.C. Supreme Court and the B.C. Court of Appeal have ruled that Whistler homes with residential-single family zoning can not be rented for periods of less than 28 consecutive days.

Chappel argued, in two letters to council, that Allura was doing no more than advertising properties, similar to what newspapers do.

Allura has more than 400 properties listed on its Web site. The company does not own or manage most of the properties on its site.

However, at a meeting of property managers prior to last winter municipal staff provided a list of all properties zoned for nightly rentals. Barratt said the list of "legal" properties is available to any property manager or booking agent.

Councillors voted 5-1 in favour of suspending Allura’s licence, with only Councillor Nick Davies opposed. Mayor Hugh O’Reilly was not involved in the hearing due to a conflict of interest.

Davies is concerned that part of the municipal argument against Allura may not stand up to the Canadian Charter of Rights and Freedoms.

"Advertising and facilitating are activities protected by the Charter of Rights and Freedoms, under Section 2," Davies said.

"If Allura has the right to advertise and facilitate under the Charter, can we act to curtail that? Is that a reasonable limitation?" Davies asked. "In my view, no."

However, Davies added the Charter provides no right to process payments, and in his view Allura was clearly "offside" on that issue.

"If we are going to sanction, then it has to be consistent with the activity," Davies continued. "It should be limited to processing payments. We should not attempt to stop advertising.

"We need to be precise in delineating Allura’s activities."

Councillor Kristi Wells countered Davies by referring to the Local Government Act, which allows municipalities to order show cause hearings.

"We are here to enforce our policy (on tourist accommodation)," Wells said. That policy was set to protect neighbourhoods, guests and legitimate tourist accommodation businesses, she added.

"The evidence is more than sufficient," Wells said. "It’s unfortunate that a company doing good business put itself in jeopardy with 5 per cent of its properties… but they’ve had many options to comply. We’ve said we would enforce these policies."

Other people involved in the property management business appeared at the show cause hearing to urge council to enforce those policies. John Richmond said he paid an inflated price – he estimated one-third higher – to acquire two townhouses zoned for tourist accommodation. With business liability insurance, Tourism Whistler fees, GST and other fees and licences on top of this, Richmond said it is unfair for the municipality to allow "illegal" operators to undercut people offering properly zoned tourist accommodation.

"My business dropped 25 per cent last year. I attribute that to Allura and other companies like them," Richmond said.

Lina Jakobs, who owns three properties zoned for tourist accommodation, said Chappel’s letter was "almost word for word what I said four years ago" when she was getting into property management and considering "illegal" properties.

"They had an option to comply; they chose not to," Jakobs said.

"I chose to comply, and I thank the municipality for that.

"Everyone knows what’s zoned and what isn’t," she said.

Jakobs said her business also felt competition from operators using properties not zoned for tourist accommodation this past winter. She said she had to lower her rates and lower her standards to compete.

"For the first time we received complaints from neighbours (about clients)," Jakobs said.

She added that the whole matter is confusing for guests and could damage the resort’s reputation.

However, Susie Goodall, who owns a house zoned for tourist accommodation and books it through Allura, said the company was being victimized by the municipality.

"To me they are an Internet advertising medium," Goodall said. "The property owner does all the work. They provide the software and you register your property.

"I’ve never talked to Sue Chappel. I can run my own business and deal with my clients."

Goodall said the real problem is with owners of properties that aren’t zoned for tourist accommodation, and the municipality should be going after them.

"What are you doing going after someone like Allura?

"You shouldn’t be doing this to Allura, you should be looking at TA zoning in a different way," Goodall said.

Allura is the second company the municipality has pursued for "illegal" rentals. In March Whistler Platinum Realty and the municipality reached an amicable agreement after the municipality presented evidence Whistler Platinum was booking residentially zoned properties. Whistler Platinum agreed to open its books for municipal review.