City of Banff brings stricter B&B regulations to public hearing

BANFF – Parks Canada has raised a red flag over some of the City of Banff’s proposed new guest accommodation regulations in residential neighborhoods that it says could inadvertently lead to the commercial development of guesthouses and inns.

On Monday (May 27), council passed the first reading of a controversial bylaw aimed at tightening B&B regulations that has been in the works for more than five years, and scheduled a public hearing for Nov. 12. There will also be a public information session on significant changes to the statute no later than October.

City officials say changes could be made during the second or third reading of the bylaw based on feedback from the November public hearing and any changes needed to address Parks Canada’s concerns about compliance with Banff National Park Management Plan guidelines regarding B&B operations.

“The first reading allows us to move on to the path of public hearing; this does not constitute approval of these bylaws,” Mayor Corrie DiManno said.

“We cannot change it at the moment, we cannot debate the content at the moment. It’s just about helping us make progress in this process.”

The City of Banff has been working to strengthen the bylaws governing guesthouse operations since 2019, but the process has been put on hold due to the COVID-19 pandemic. The moratorium on new licenses applies until the regulations are adopted.

When the bylaw was last considered by the mayor and council in early May 2023, the administration was directed to seek additional comments on the proposed bylaw from legal counsel and Parks Canada – which has ultimate authority over land use and zoning decisions within the national park .

One change that Parks Canada disagrees with is a proposed expansion of the definition of a live-in owner to allow the employment of an on-site manager where a bed and breakfast, currently defined as additional guest accommodation, is legally designated as a municipal historic resource.

This would be a departure from the requirement that the beneficial owner must live on the property and would allow the property to be managed and operated essentially as a bed and breakfast, which is inconsistent with development plan guidelines prohibiting the establishment of new bed and breakfast inns.

Based on Parks Canada’s concerns, the administration suggested that the expanded definition of resident owner could be amended to provide that an urban historic resource is owned by a registered charity or not-for-profit organization.

“Limiting the ability to hire an on-site manager to a charitable or nonprofit organization dedicated to city historic resources could eliminate the perceived commercial aspect of a bed and breakfast while providing greater flexibility in preserving cultural heritage properties,” said Dave Michaels, manager of planning services for the city Banff.

There was also a proposal to limit the total area that can be used for the exclusive use of guests to 40 percent, with the exception that guesthouses located in the city’s historic resources would be exempt from this as part of a measure to protect cultural heritage properties.

Michaels said Parks Canada submitted comments stating that limiting 40 per cent of floor space to the exclusive use of guests who are not applying to use the city’s cultural heritage resources could allow for the potential use of up to 100 per cent of all buildings on the property .

He said the federal agency noted this could allow for increased commercial use in residential areas, which should be maximized for residential development under guidance in the 2022 Banff National Park Management Plan.

“This, combined with the live-in manager option, would be viewed as establishing new guesthouses, which is inconsistent with the guidelines of the development plan, which prohibits the creation of new guesthouses,” Michaels said.

While Parks Canada reviewed the originally written draft regulations, Michaels said the administration was unable to confirm whether the suggested amendments would address the federal agency’s concerns about compliance with the management plan.

But he said the planning department recommends that council could introduce amendments to address Parks Canada’s concerns between the second and third readings of the bylaw to give the agency a chance to provide input.

“This is another opportunity for Parks Canada to provide comments and for council to make changes before the document is distributed to Parks Canada,” he said.

“After the third reading and circulation of the letter to Parks Canada, no further amendments or changes can be recommended. They could have signed it or not, so of course we would like to avoid that.

The Whyte Museum of the Canadian Rockies, which has operated the historic Abegweit as a B&B since 2016, praised council’s intention to preserve the historic buildings and expressed support for a revised definition of a residential landlord to include a charity or not-for-profit organization.

“We believe that the suggested change to the definition of residential owner will enable us to continue to operate Abegweit in the same way as we have for the last decade,” said Chris Hughes, Whyte Museum’s chief operating officer.

“We see the ability of charities like ours to operate historic guesthouses as an effective way of funding the preservation of our architectural heritage, while eliminating the appearance of commercial expansion.”

Hughes said the revenue generated by the B&B, also known as the Crosby Residence, allows for adequate funding for ongoing maintenance and capital reinvestment of the 1913 heritage, as well as funding for any surpluses in programs and services at the museum and archives.

“The loss of this revenue would be a serious blow to Whyte’s ability to maintain Abegweit, as well as fund important programs and services,” he said.

“Without this source of income, it would be difficult for the foundation to sustain this important heritage asset.”

DiManno said she is concerned about the future of the Whyte Museum if Parks Canada does not approve the administration’s suggested amendment to the definition to include a charitable or not-for-profit organization.

“I wonder what will happen to this license. “Is there a chance that with other types of fixes, work on Parks Canada won’t be able to proceed,” the mayor said.

Michaels said a so-called grandfather clause could be included in the bylaws for existing matters, but it would ultimately be up to Parks Canada whether to sign the bylaws.

“If they had not approved this amendment or were not happy with it, then unfortunately Whyte would have had no choice but to change the way they operated to sort out or comply with the regulations, otherwise they would have lost their license because we couldn’t have approved it,” he stated.

If passed, the new bylaw would limit the number of guesthouses and inns to 44, a reduction of 21 potential licenses from the current citywide limit of 65 intended to protect much-needed residential buildings.

The 44 will consist of 21 additional guest accommodations (currently called B&Bs), 15 additional guest accommodations within legally designated urban historic resources, and the existing eight bed and breakfasts.

Michaels said the reduction in participation in the lower amounts would likely occur over many years, if not decades, as plants are sold, owners die or they close for regulatory compliance reasons, for example.

“The B&B establishments are linked to the applicant and the applicant must be the resident owner, so in the event of any change in ownership, a new permit would be required,” he said.

“For a corporation, there is a requirement that there be no more than two shareholders, so if there was a change in the shareholding structure, this would also involve a change in ownership and would therefore also require a new authorization.”

The statute also proposes to limit the number of guests in additional guest accommodations to two per approved guest bedroom, plus an additional two for each additional accommodation.

“This is also something that would need to change immediately for existing guesthouse operators upon their first renewal after the regulations come into effect,” Michaels said.

Several B&B operators who are concerned about the impact of some of the proposed changes on their livelihoods and businesses have called on the council to conduct further consultation before moving forward with the regulations

JP Middleton, whose family owns Elkhorn Lodge and Banff Beaver Cabins, wanted clarity on a new clause in B&B regulations which states that B&Bs can only be run when the owner or manager of the property is at his or her “actual place of residence”.

He said Elkhorn Lodge and Banff Beaver Cabins have a manager, but suggested changing the wording to add information that an emergency contact must be available whenever the B&B inn is open.

“When our managers go on vacation, which is perfectly reasonable, does that mean we have to close our lodge or move the entire family to Elkhorn Lodge or Banff Beaver Cabins so we can operate the lodges while they are gone?” he said.

Middleton, who uses a wheelchair following a 2018 skiing accident at Mount Norquay due to a spinal cord injury, said family responsibilities and mobility limitations mean he cannot physically move from his Cougar Street home to the guesthouses.

“Furthermore, being forced to close our facilities while our on-site managers are on vacation, even during our slowest month, is a huge financial hit to us,” he said.
“I cannot describe enough the cost of maintaining and operating these historic buildings.”

Parks Canada officials say they look forward to continuing to work directly with the city on the proposed bylaw change throughout the city process.

“If adopted by council, the proposal would require approval by the federal Minister of Environment and Climate Change, also responsible for Parks Canada,” according to an emailed statement from the federal agency.