Newport City Hall.

The Newport City Council met for nearly five hours Wednesday, addressing a wide range of issues including short-term rentals, traffic concerns, and housing development.

The council voted to approve zoning amendments aimed at prohibiting new guest houses in certain business districts. Councilor Mark Aramli, who sponsored the original resolution, said, “When a patient is bleeding, the first thing you do is stop the bleeding,” referring to the loss of housing to short-term rentals.

The council also approved a resolution to reverse the direction of traffic on Dixon Street. Lynda Stevenson, a Dixon Street resident, presented a petition signed by 65% of homeowners on the street. “The volume has quadrupled,” Stevenson said. “It hasn’t been an issue we’ve been discussing with the city for three years. It’s been an issue we’ve been discussing over eight years.”

The council briefly discussed a proposed $78.7 million development project by the Naval War College, which includes plans for an 800-seat auditorium and parking facilities. The proposal had caught the Council’s attention via a leaked internal docket from the War College.

In other business, the council:

  • Approved an entertainment license for Thames Street Kitchen and Chanterelle restaurant, with conditions on operating hours and noise levels.
  • Discussed potential changes to seasonal rental regulations and fees.
  • Rejected a proposal to host a public forum on offshore wind development.

City Manager Colin Kennedy said, “The profitability is so high on these short-term rentals that the $1,000 fine that we have right now can be seen as a cost of doing business.”

As the meeting concluded, council members acknowledged the need for continued discussion and action on many of the night’s topics.

Short-Term Rental Restrictions

The Newport City Council debated new restrictions on short-term rentals in business districts during a contentious meeting.

The proposed ordinance changes would prohibit new guest houses, defined as non-owner occupied short-term rentals, in general business, limited business and waterfront business districts. Existing legally established guest houses would be allowed to continue operating.

“We have bled more than 15% of our housing stock to guest houses,” said Councilor Aramli, who introduced the original resolution. “This city does not need more Airbnbs.”

Aramli argued the measures are needed to “stop the bleeding” of housing units being converted to short-term rentals. He said the council has an obligation to protect housing, not ensure real estate speculation can “blossom and grow at the expense of destroying the basic fabric of our city.”

Planning Board Chair Jeff Brooks opposed the changes, arguing they would eliminate a “small scale use” that fits Newport’s character as a welcoming tourist destination.

“We’re talking about legal entities, talking about people who have the fire department, through the building inspector, through going through zoning. They’re in business districts next to Pelham 180, next to what Jimmy’s was, they’re surrounded by parking lots,” Brooks said.

He noted there are only about 121 registered guest houses in Newport currently, including some timeshares and small hotels. Brooks argued this is not absorbing thousands of housing units.

Zoning Officer Nick Armour disputed those numbers, estimating there are 250-300 registered short-term rentals and another 200-250 that are state registered but not locally registered.

Several council members expressed concerns about unintended consequences and the potential for grandfathered properties to gain outsized value. Councilor Lima worried it could create “a false economy by allowing some people to have grandfathered privileges and other people not to.”

The council ultimately voted to approve the ordinance changes on first reading, with some members opposing. A second reading and final vote will be required for the restrictions to take effect.

Project 150

The Newport City Council passed a resolution Monday night requesting more information from city staff regarding the Naval War College about a leaked internal report discussing potential expansion plans that could impact city-owned property.

The 150-page report, titled “Project 150: Building Capacity, Fulfilling the Vision,” outlines proposals for a new educational and cultural complex including an 800-seat auditorium and parking facilities. The estimated cost is $95.5 million.

Council members expressed surprise and concern about the report, which they say was not officially shared with city leadership despite mentioning potential public-private partnerships with Newport.

“I couldn’t believe it. I was speechless,” said Councilor Jean-Marie Napolitano, who serves as the council’s naval liaison. “To hear that they actually were looking at the former naval hospital and getting an endorsement, so-called, from a city official, it just … I couldn’t believe it.”

The resolution, introduced by Councilor Angela Lima, requests an explanation from the Naval War College about the genesis of the report. It also asks for details on how the plan could impact Newport’s ability to develop land in accordance with its North End Urban Plan.

City Manager Colin Kennedy said he received a letter from Naval War College President Rear Adm. Shoshana Chatfield stating the report was inadvertently leaked and “never intended to be in our possession.”

“While we appreciate the council’s attention to this important initiative, we believe involving outside entities in these discussions is premature,” Kennedy said, quoting from the letter.

Kennedy said the Navy has confirmed it will cede the former naval hospital property to Newport before any development occurs there. He said the city would then consult with the Navy on potential uses for the site.

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Ryan Belmore is the owner and publisher of What's Up Newp. He took over the publication in 2012 and has grown it into a three-time Rhode Island Monthly Best Local News Blog (2018, 2019, 2020). He was named LION Publishers Member of the Year in 2020 and received the Dominique Award from the Arts & Cultural Society of Newport County the same year. He has been awarded grants for investigative and community journalism, and continues to coach and mentor new local news publications nationwide. Ryan...

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