As your former City
Manager, I am writing to you about a serious threat to our property
rights, our property values and our valley's economy. Jim McLean, owner of
Apples Bed and Breakfast, has filed 2 lawsuits against the City of Big
Bear Lake attempting to eliminate every homeowner's legal right to rent
out their home. Fortunately, both lawsuits have been dismissed, by a state
court and a federal court.
Mr. McLean is not
giving up in his quest to eliminate a homeowner's right to rent out their
home. He is circulating a petition to put an ordinance on the ballot that
would effectively eliminate a homeowner's right to rent out their home. I
am recommending that you NOT SIGN Mr. McLean's petition.
Why should you be
concerned about the right of a homeowner to rent out their home?
(l) Your property
value of your home would be significantly reduced: Over two thirds of our
valley's homes are owned by second homeowners. If Mr. McLean's ordinance
is approved and rental of second homes is eliminated, over 1,000 homes
that are currently rented could be placed on the market for sale, which
would significantly reduce everyone's property values. If the property
values of second homes drops, then the property values of full time homes
drops also. The loss of second home rentals would mean that a huge market
of potential second home buyers (families that need to rent out their
homes part time to help offset the cost of their second home) will be
eliminated from buying homes in Big Bear. This means that the amount of
home sales would be drastically reduced, again causing everyone's property
values to fall.
(2) Big Bear's
Economy would be significantly reduced: Second
home rentals provide over 50% of the beds available for all our overnight
visitors. If Mr. McLean eliminates 50% of every night's available beds,
during our busy visitor seasons that means that 50% fewer visitors can
stay overnight (all lodges are already full). That means that there will
be 50% fewer people to shop in our stores and gift shops, eat in our
restaurants, purchase food and gasoline, etc. The impact on our economy
would be devastating. Retail, service businesses, recreation,
construction, almost every business would be negatively effected if
rentals are eliminated. Some businesses would close and employees would
lose their jobs.
(3) Your City
Services would be cut drastically: The rental of second homes provided the
City of Big Bear Lake with over $930,000 in TOT (Transient Occupancy Tax)
revenue last year alone. This is almost 10% of the City's entire General Fund budget which pays
for your law enforcement, road paving and maintenance, drainage, building
and safety, planning, code enforcement, Performing Arts Center, etc. If
Mr. McLean is successful in eliminating the rental of second homes, the
City could lose between $1 million
to $2mlllion each year in TOT revenue, sales tax revenue and property
taxes. Based on my experience in preparing the City's budget, this would
mean drastic cuts in all City departments. Our Hospital District and our
Fire Departments and the ambulance I emergency services they provide could be reduced also.
My family and I
have lived and worked in Big Bear for over 23 years. We have worked hard
to build up the equity in our home as-our 'nest egg' for our family's
future. Big Bear's home values have increased and our economy has grown
because of the many second homeowners who buy homes in our valley, and,
the many overnight visitors that visit our valley and spend the night by
renting private homes.
Working together,
we can protect our property rights, our home's property value, our economy
and our City Services. I strongly urge you to NOT SIGN Mr. McLean's
petition. Thank you.
Michael Perry
Michael Perry
Former City Manager, City of Big