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T I ■■ nrvNiNCH REPORf Item 23 +■ Meeting Date: General Plan Element: General Plan Goal: ACTION June 23, 2026 Public Services & Facilities Provide a safe environment for all citizens, visitors and private interests Adopt Ordinance No. 4719, amending Chapter 18, Article I, Section 18-2 of the Scottsdale Revised Code by adding a definition for Event Center. BACKGROUND The City has increasingly encountered vacation and short-term rentals (STRs) being used for commercial-type/non-residential gatherings such as non-resident weddings, corporate events, or advertised parties open to the public. These activities create impacts similar to formal event venues and raise health, safety, and neighborhood welfare concerns. A.R.S. § 9-500.39 limits municipal regulation of vacation and shorMerm rentals. However, A.R.S. § 9-500.39 expressly provides in relevant part that a vacation rental or short-term rental may not be used for nonresidential uses, including for "a special event that would otherwise require a permit or license...or for a...banquet space, event center, or another similar use." However, the statute does not define "event center," leaving a gap that complicates enforcement. Under the Scottsdale Revised Code, the City prohibits STRs from being used for nonresidential purposes, including operating an event center, banquet center, or similar use. This prohibition mirrors state law, but like state law, the Scottsdale Revised Code does not currently contain a definition. To address this statutory gap, proposed Ordinance No. 4719 adopts a definition of Event Center for Chapter 18 of the Scottsdale Revised Code. ANALYSIS & ASSESSMENT Specifically, Ordinance No. 4719 adds a definition of Event Center to S.R.C. § 18-2. This new definition clarifies what is considered an Event Center. This definition will assist with enforcement efforts and provide clarity for STR operators. The City Attorney's Office worked Action Taken City Council Report | Ordinance No. 4719 with the Police Department to craft the definition and also reviewed it with City staff involved with STR issues. The definition for Event Center, as set forth in the proposed ordinance, is: Event Center means any use of a property for organized gatherings, parties, receptions, or functions, whether public or private, and that involves a commercial purpose, event type impacts, or activities requiring a city permit or license. Event Center includes, but is not limited to: weddings, receptions, parties, or banquets conducted for a fee or open invitation; corporate or promotional events, conferences; or any activity that would otherwise require a special event permit or business-related authorization under the Scottsdale Revised Code or Arizona Revised Statutes. Event Center does not include ordinary residential gatherings that remain incidental to the lawful residential occupancy of the dwelling. The prohibition of using a STR as an Event Center would be enforced through S.R.C. §18-171, which prohibits STRs from being used for non-residential purposes. RESOURCE IMPACTS None. Existing staff will continue to administer and enforce the ordinance. OPTIONS & STAFF RECOMMENDATION Recommended Approach: Adopt Ordinance No. 4719, amending Chapter 18, Article 1, Section 18-2 of the Scottsdale Revised Code by adding a definition for Event Center. RESPONSIBLE DEPARTMENT(S) City Attorney, Police Department STAFF CONTACTS (S) Luis Santaella, City Attorney, lsantaella@scottsdaleaz.gov APPROVED BY Luis E. Santaella, City Attorney (480) 312-2405, lsantaella@scottsdaleaz.gov C/5' Date Page 2 of 3 City Council Report | Ordinance No. 4719 ATTACHMENTS 1. Ordinance No. 4719 Page 3 of 3 ORDINANCE NO. 4719 AN ORDINANCE OF THE COUNCIL OF THE CITY OF SCOTTSDALE. MARICOPA COUNTY, ARIZONA, AMENDING CHAPTER 18. ARTICLE I. SECTION 18-2 OF THE SCOTTSDALE REVISED CODE BY ADDING A DEFINITION FOR EVENT CENTER BE IT ORDAINED by the Council of the City of Scottsdale as follows: Section 1. Chapter 18, Article I, Section 18-2 of the Scottsdale Revised Code is amended and renumbered to conform by adding a new definition for Event Center as follows, with new language shown in shaded format; Event Center means any use of a property for organized gatherings, parties, receptions, or functions, whether public or private, and that involves a commercial purpose, event type impacts, or activities requiring a city permit or license. Event Center includes, but is not limited to: weddings, receptions, parties, or banquets conducted for a fee or open invitation; corporate or promotional events, conferences; or any activity that would othenwise require a special event permit or business-related authorization under the Scottsdale Revised Code or Arizona Revised Statutes. Event Center does not include ordinary residential gatherings that remain incidental to the lawful residential occupancy of the dwelling. PASSED AND ADOPTED by the Council of the City of Scottsdale this____ day of ______________ . 2026. ATTEST: CITY OF SCOTTSDALE, an Arizona municipal corporation Ben Lane, City Clerk Lisa Borowsky, Mayor APPROVED AS TO FORM: Luis E. Santaella, City Attorney Attachment #1 19236773 Page 1 of 1