Although owning property through a limited liability company, or LLC, is a common practice across the country, it has come under scrutiny in recent years in Park City.
In 2020, a company called Pacaso started offering a way for people to buy a portion of ownership in a multi-million dollar Park City home. Pacaso helps set up the LLC and then offers property management services to the buyers.
Residents have spoken up at public meetings and argued that Pacaso is essentially running timeshares, which are regulated in Park City. In response, the city has been exploring code changes to address the issue.
In May, the Park City Planning Commission recommended some changes to the city council. Those include clearly defining differences between timeshares, private residences, and fractional ownerships; requiring conditional use permits and business licenses for fractional ownership properties; and prohibiting fractional ownerships in some areas.
The council will review the recommendations at its Thursday meeting and could vote to adopt them. City Manager Matt Dias says the changes are just a first step in approaching the issue.
“The intent here is to really try to get a handle on it, put in an ordinance," says Dias. "We visited with the planning commission several times. While the land use ordinance may not be perfect, as we’re still dealing with this sort of new and disruptive technology, we’re trying to put a stake in the ground, knowing that we might have to modify it on an ongoing basis. But this here is a little bit of effort to protect our single-family neighborhoods from additional commercialization.”
According to Pacaso, the average price of a Park City home they sell ownership in is $5.8 million. Data from the Park City Board of Realtors shows the median sale price for a single-family home inside Park City limits was $3.5 million in the first quarter of 2022.
Pacaso Chief Marketing Officer Whitney Curry says the company has met with city officials about the code changes and hopes to reach a compromise. She says Pacaso owners are not the same as short-term renters and want to be a part of the community.
“Pacasos typically have an average of six owners," Curry says. "Those are six families who are eager to get to know the community. They want to say hello, they want to exchange information, they want to be a part of the fabric of the community. We think it is very possible for neighbors to have a positive, ongoing relationship if they are interested in getting to know Pacaso owners, because I can say Pacaso owners are certainly interested in getting to know them. We think that more neighbors means more friends and an opportunity to have community, and have vibrant community.”
Thursday’s city council meeting starts at 2:30 p.m. with a final work session on the city’s budget and interviews for four open seats on the planning commission. The discussion about fractional home ownership is scheduled during the regular meeting, which begins at 6 p.m.
A link to the full agenda and details on how to participate is here.
