Anti-short-term rental regulation group sues town and board in federal court

Two full-time and four part-time Shelter Islander residents have filed suit in federal court against the town and the Town Board over the short-term rental (STR) regulations.

The five women — Julia Weisenberg, Dawn Fotopulos, Madeline Fotopulos, Michelle D’Arcambal, Janalyn Travis-Messer and Jennifer Lederman — accuse the town in a suit filed August 10 in the Eastern District of New York of violating their rights under federal, state and local laws, including the right to equal protection, due process, fundamental property rights and the town’s zoning regulations.

The plaintiffs ask for “a preliminary and permanent injunction” from enforcement of the STR law” and a “declaration that the STR law is a violation of Plaintiffs’ rights under the constitution of the United Sates and the State of New York.”

In addition, the suit asks for “attorneys’ fees, expert fees” and other unnamed expenses, as well as “such other relief as this Court deems just and appropriate.”

The plaintiffs have hired Robinson & Cole, a law firm with nine offices located in the northeast, Florida and California and represents the National Association of Realtors.

The Robinson & Cole attorney listed in the lawsuit, Joseph Clasen, hasn’t responded to several requests for comment.

Chuck Kraus, one of the leaders of the group protesting the STR regulations, said Tuesday that the lawsuit is being funded by close to 100 Island property owners who have been “raising money for close to a year now.”

After acquiring a copy of the court document, the Reporter contacted Town Clerk Dorothy Ogar, who said her office had not been served with the suit. Town Attorney Laury Dowd said she was unaware of the legal action.

Reached on Monday, Supervisor Jim Dougherty said he had not read the suit and couldn’t comment until he had.

The lawsuit was a foregone conclusion by many, brought up a number of times during the almost 16 months the STR issue was subject to debate.

In April the board voted 4-1 to impose STR regulations. Mr. Dougherty cast the lone “no” vote. The law applies to homes where the owner is absent during a rental and requires owners to register their properties with the town; enacts a limit of one rental per 14-day period; and imposes fines on those who fail to comply.

Since the spring of 2016, the issue has been contentiously argued before the Town Board and in the letters section of the Reporter. On one side, homeowners maintained that with the proliferation of online rental sites, such as airbnb, the Island has become a party destination for weekenders.

Those calling for regulations fear that short-term rentals in the era of online bookings will alter the character of Shelter Island as a family-friendly place.

They were countered by those opposed to regulations who maintained STRs allow families to remain here by helping defray steep mortgages and related costs and therefore preserve the character of the Island.

On the other hand, some residents maintained that an increased number of highly profitable STRs reduces the number of long-term rentals, thus limiting affordable housing opportunities.

Another point of view aired was the notion that a person renting their house on a STR basis throughout the summer is turning residential areas into commercial zones. But there were those who forcefully argued that in-house, small businesses are all over the Island, that it’s a tradition here and has been operating without controversy for years.

Also, the threat of speculators buying properties here solely to rent as STRs was discussed, and the consequence for the future of the Island if this is happening or will in the future.

Commenting on the lawsuit, Mr. Kraus told the Reporter Tuesday that the STR law is “senseless’ and “has hurt many Islanders since its inception.”

Mr. Kraus added that the cost to the town from loss of business and legal costs “that weigh on us is unnecessary.”

Councilman Paul Shepherd is mentioned in the suit as “improperly” sharing a draft of a law “with a constituent for his comments before it was finalized or made public.”

“I was unaware there was anything improper about it,” Mr. Shepherd said. “The person was going to be out of town and they wanted to see it. What’s improper about that?”

The councilman on more than one occasion has publicly said public officials making decisions for the public good should not be intimidated by the threat of litigation.

On Tuesday he reiterated that belief, noting that “this [the STR law] is something I believe in. Not that I wanted to be sued. If something is found to be unconstitutional, I’ll be the first to vote for repeal.”