Short-term Rentals, Residential Development Still on the Table

By DEBRA MOFFITT
FLY CREEK

Town of Otsego residents who operate short-term rentals can now see the revised wording on that subject in a new land-use plan that could impact property owners.

Last month, Town Councilmember Deb Dalton said the revised comprehensive plan would not recommend that the town pass ordinances requiring owner-occupancy. Rental property owners said it would be unfair and unrealistic to limit seasonal rentals only to properties where the owner resides on the premises.

The housing section in the recently revised comprehensive plan does not drop owner-occupancy entirely but mentions it alongside the idea of grandfathering existing businesses until those properties are sold. Here’s the language in the revised plan, designed to be a framework that guides future laws and decisions:

“Explore new short-term (a period of less than 30 days) rental ordinances that reinforce and strengthen the residential quality of the Town of Otsego. Ordinances may include owner-occupancy, local (Town or County) ownership, grandfathering of existing business (until such grandfathered property is sold), regulations based on density of certain areas of the Town, etc.).”

The town set a suggested timeline of two years and named the Town Council, Planning and Zoning boards as the responsible parties.

The town recently posted the 2026 comprehensive plan update on its website and public hearings are planned (https://townofotsegony.gov/comprehensive-plan). The town’s first attempt at collecting public input fell short, according to allegations from a lawyer representing Manhattan developer Manocherian Brothers. The firm wants to build 126 homes on 1,525 acres west of Otsego Lake—a large project that spans the towns of Otsego and Springfield.

Area residents and elected officials have said they’re concerned about the development’s impact on the community’s environment, water supply, roadways and character. But Manocherian’s attorney, Allyson Phillips, said public outcry alone would not be enough to justify land-use changes if challenged in court.

The lawyer’s letter, sent in June, charged that Otsego town officials attempted to change land-use rules without following procedures for public notice and open meetings. Among those proposed changes: limiting how large parcels are subdivided into smaller lots.

The first version of Otsego’s draft comprehensive plan said parcels of 40 acres or more could be subdivided into no more than three lots (approximately 13 acres). Existing land-use laws in the Town of Otsego permit residential-agricultural lots to be as small as three acres. The change from three acres to 13 acres would have affected the Manocherian plan as well as many other property owners, Phillips wrote.

After receiving that complaint and hearing from residents about short-term rentals, town officials took a fresh look at the comprehensive plan and made changes. The revised plan says the town should consider “eliminating minimum lot sizes within the designated Hamlets” because New York State already imposes minimum spacing requirements between wells and septic systems. The plan also suggests:

Updating Agricultural Zones and updating zoning laws to “preserve open space, respect historical patterns of development and habitation” and “encourage compact, community-centered development patterns rather than dispersed sprawl.”

Updating land-use laws to encourage multifamily housing, such as duplexes, triplexes, townhomes and small apartment buildings.

Giving residents more flexibility to build accessory dwelling units and adapt barns into housing.

The section on zoning begins with the preamble “while recognizing the rights of property owners…” and town officials have repeatedly said the land-use plan revisions did not target any particular project. It’s unclear if or how the revised comprehensive plan might affect the proposed Manocherian development.

The sketch plan the developer presented a few months ago shows several pockets of development across the two towns—with 50 single-family homes in Otsego. On the Springfield side, there’s a 46-unit duplex community and 30 single-family homes.

A comprehensive plan, also known as a general plan, master plan or land-use plan, is designed to guide the future actions of a town, city or county. While not a law, it presents a vision with long-range goals and objectives for all activities that affect the local government. Otsego’s land-use plan, an update to the original approved in 2008, also recommends a feasibility study on building a sewer system or systems within hamlets of the town of Otsego, as well as protections for Otsego Lake.

“The Town seeks to expand and improve the quality of its housing stock without disrupting the integrity of its cherished landscape and watershed,” the140-page plan says.

In other planning news, Otsego has a new land use officer, Neal McManus, and will change the day it holds its monthly Planning Board meetings. The Planning Board meeting soon will move to the fourth Tuesday of every month. In October, the Planning Board will meet twice—once on October 6 and also on October 27. More information can be found in the calendar on the town website, https://townofotsegony.gov.