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While owning property through a limited liability company or LLC is a common practice across the country, it has come under scrutiny in Park City in recent years.

In 2020, Pacaso began offering people the opportunity to buy a piece of property in a multi-million dollar home in Park City. Pacaso helps set up an LLC and then offers property management services to buyers.

Residents have spoken at public meetings and claimed that Pacaso essentially runs the timeshare that is regulated in Park City. In response, the city is looking into code changes to address this issue.

In May, the Park City Planning Commission recommended some changes to the City Council. These include clearly defining the differences between timeshare, private homes and fractional ownership; requiring contingent use permits and business licenses for fractional ownership; and the prohibition of fractional ownership in some areas.

The Council will consider the recommendations at its meeting on Thursday and may vote to accept them. City manager Matt Diaz says the change is just the first step towards solving the problem.

“The intention here is to really try to handle it, to issue a ruling,” Diaz says. “We met with the planning committee several times. While the land use ordinance may not be perfect, as we are still dealing with this kind of new and disruptive technology, we are trying to bet on land, knowing that we may have to constantly change it. But this is a small attempt to protect our single-family neighborhoods from additional commercialization.”

According to Pacaso, the average price of a Park City home they sell title to is $5.8 million. Data from the Park City Board of Realtors shows that the average selling price for a single-family home within Park City was $3.5 million in the first quarter of 2022.

Pacaso marketing director Whitney Curry says the company has met with city officials about changes to the code and hopes to reach a compromise. She says Pacaso owners are not the same as short-term tenants and they want to be part of the community.

“Typically, Pacasos have an average of six owners,” says Curry. “These are six families who want to get to know the local community. They want to say hello, they want to share information, they want to be part of the fabric of the community. We think it’s possible for neighbors to have a positive, ongoing relationship if they’re interested in getting to know Pacaso owners, because I can tell that Pacaso owners are certainly interested in getting to know them. We think the more neighbors, the more friends and the opportunity to have a community, and have a vibrant community.”

Thursday’s city council meeting begins at 2:30 pm with a final working session on the city budget and interviews for the four available seats on the planning committee. Discussion of the issue of shared ownership is scheduled at the next meeting, which begins at 18:00.

A link to the full program and details on how to participate can be found here. here.

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