Lac Des Arcs Will Allow a Handful of Short-Term Rentals After All

The Municipal District of Bighorn adopted a sweeping new land-use bylaw that rewrites how short-term rentals will be permitted across the district's hamlets, capping their spread in some communities while opening a modest door in others.

At a special meeting on July 13, council gave second and third readings to Bylaw 10-26, formally putting the new Land Use Bylaw into effect. Much of the debate turned on short-term rentals, or STRs, and how many a community can absorb before it stops being a place where people live year-round.

The most contested question was the future of Lac Des Arcs. Administration had recommended deleting short-term rentals from the hamlet entirely. Council overrode that advice, voting instead to reinstate Short-Term Rental Minor as a discretionary use, subject to a 10 percent cap of roughly nine houses in total.

Councillor Steve Fitzmorris pushed for the limited allowance, framing it as a cautious experiment rather than a rupture. "I don't think we're just ripping a community apart," he said. "I think we are actually allowing a community to try something small to see how it grows."

Council members argued that a small number of rentals would function as "mortgage helpers" for residents and give longtime homeowners a way to afford staying in family homes. Reeve Lisa Rosvold backed the move on those grounds. "I have always maintained that having this opportunity to have a short-term rental or an ADU allows people to create their own affordable housing," she said, "more affordable housing."

Under the new rules, Lac Des Arcs applications will be handled as discretionary use by administration, meaning MD staff, rather than the Municipal Planning Commission, will make the call. Council described the change as a way to reduce "red tape."

Higher caps in Dead Man's Flats and Exshaw

In Dead Man's Flats, council approved raising the cap for STR Minor use from 30 percent to 40 percent. The 40 percent limit now explicitly folds in all existing Visitor Accommodation Suites and Bed and Breakfast permits, consolidating what had been separate categories into a single ceiling.

Council also moved to phase out bed-and-breakfasts in the hamlet. No new B&Bs will be approved, a step intended to close what members described as a "loophole" in which owners applied for B&B permits once the short-term rental cap had been reached. Existing B&B permits may still be renewed for up to three years, at the discretion of the development authority.

Exshaw falls under the same cap rules but remains, by council's account, nowhere near the 30 or 40 percent threshold.

Rentals prohibited near Jameson Road

A significant stretch of the meeting was devoted to the Small Holdings District near Jameson Road, where some landowners had asked for the ability to operate short-term rentals under a 10 percent cap. Council declined, following administration's recommendation not to permit STRs in the district at this time.

Councillor Alice James opposed allowing rentals in the area, pointing to concerns particular to its rural character. "Addressing these unique communities in unique ways is important," she said, citing "the concerns involved the rural landscape and livestock safety." Opponents also noted that much of the surrounding Crown land is held under grazing leases that do not permit public access.

The Reeve, who had supported rentals elsewhere, dissented on this point, warning the decision could squeeze rural residents financially. "This decision today to not proceed with any type of cap may mean they can no longer afford to have their piece of land anymore," Rosvold said. Council characterized the bylaw as a "living document" and left open the possibility of revisiting the district in the future.

New rules for how rentals operate

The bylaw sets out uniform definitions and requirements for short-term rentals across the municipality. To operate an STR Minor, a property must be the primary residence of either the landowner or a full-time tenant, a requirement meant to ensure a responsible manager lives on-site or nearby.

The bylaw distinguishes between two tiers of operation. An STR Minor is defined as renting out a portion of the principal dwelling, while an STR Major involves renting out the entire home. Every application requires the written signature or authorization of the landowner, and applicants for any new intensive use, including rentals, must demonstrate that their private water and wastewater systems can handle the added density.

A unanimous close

The bylaw passed its second reading "as further amended" to incorporate the Lac Des Arcs 10 percent cap along with minor technical corrections. Fitzmorris moved third reading, which passed unanimously.

In closing remarks, Rosvold returned to a theme she said she had raised years earlier, quoting a 2017 interview: "The greatest issue when it comes to planning for our future is keeping our homes filled with people that actually live in them. There is no off-the-shelf solution because of the uniqueness of the communities in the MD of Bighorn."

The new bylaw, she said, marked a break from the district's past. "It feels like we're finally putting our own clothes on," she said. "We're not wearing the past clothes of our past council."