Overcooking the Cake

March 31, 2024 · By Jay Hubbard

Megan Gallagher speaks on short-term rentals during public comment, March 28, 2024. (Town of Middleburg meeting video)

How much tourism is enough? In March, Middleburg's tourism agency asked the Town to nearly triple its contribution, the Town's economic advisers said weekdays are too quiet, and the first short-term rental applications at the Residences at Salamander headed for Council, where a resident reminded everyone that "many of us see Middleburg as a historic residential village with a resort in it." The Mayor put the question in his own words: "are we overcooking the cake?" Council will take it up at its retreat in April.

Council met March 14 with everyone present and March 28 without Vice Mayor Chris Bernard. Mayor Bridge Littleton votes only to break a tie.

Overcooking the Cake

Visit Loudoun President Beth Erickson made the case on March 14 ▶ video. Loudoun leads Virginia in visitor spending, she said, and her agency credits itself with $1.8 million in Middleburg spending last year and $88,250 in lodging tax. Middleburg has paid $35,000 a year since 2018. She asked for a three-year agreement rising $20,000 a year, "moving it from 35,000 up to 95,000," and noted that the lodging tax alone more than covers it.

Council balked at the size of the step. Vice Mayor Bernard did the math: in 2018 the $35,000 bought a return of about 4.6 percent on $756,000 in lodging tax; at the same rate $95,000 would require "over $2 million in TOT in fiscal year 26," and "I don't know that we have the hotel space or space in general to support that." Councilmember Peter Leonard-Morgan wished the increases had come gradually over the years. Littleton pointed out that Middleburg can't add rooms and never will, and that whatever Leesburg gets or doesn't get from Visit Loudoun is "not Middleburg's problem." Erickson said Middleburg's lodging revenues are driven by room rates, not room count, and that her sales team is chasing midweek business groups.

Littleton widened the question. "One of the conversations that Council has been having for a while, and we're going to talk about at our strategic retreat is in the Town of Middleburg are we overcooking the cake? When is too much, too much, where you're actually, you know, you're the business is great and all that kind of stuff, but you're actually detracting from the quality of life." He also asked Visit Loudoun to press the County for controls on wineries and breweries near the towns. Council will answer the funding request after the retreat. The same week, he asked staff not to raise the social media budget: "We're going to have a strategic discussion of are we doing too much? So let's not budget in before we've had that discussion."

On March 28 the Economic Development Advisory Committee's departing chair, Mike Kilian, offered the view from the other side ▶ video. Weekends are busy; weekdays, "at least for six months out of the year," are "a lull." EDAC wants to bring in more midweek visitors and add someone from the restaurant business, and Kilian agreed with Littleton that a resident who doesn't own a business would give the committee a voice it lacks.

Short-Term Rentals at Salamander

The Planning Commission recommended approval of four special use permits for short-term rentals: three at the Residences at Salamander, two of them managed by the resort, and one at West Marshall and Locust Streets to be booked through Airbnb ▶ video. The Commission capped three of them at 90 nights a year, half what the ordinance allows. Council's hearings are set for April.

Megan Gallagher told Council the applicants all pointed to the one-bedroom rental Council approved on North Jay Street, but these houses sleep eight to ten. "We aren't Aspen or Rehoboth, Hilton Head, or Mount Desert Island," she said, and asked for fewer nights still. Littleton urged Council to read the Comprehensive Plan on the residential character of the town, to judge each house on its own, and to remember "it is forever. It is in perpetuity. So, the world we live in today might not be the world we live in 40 years from now." Councilmember Darlene Kirk asked who would make sure a house rents only 90 nights. Littleton asked staff to explain "how are you going to validate 90 days?" Meanwhile the General Assembly passed SB 544, which bars new ordinances requiring a permit to rent out an owner's primary residence; Middleburg's ordinance predates it.

The Tax Rate, Set

After a hearing at which no one spoke, Council set the real estate tax rate at 12.36 cents per $100, down four-tenths of a cent, 7-0 ▶ video. Higher assessments mean many bills still go up. Average condominium values rose from $340,000 to $440,000, Town Manager Danny Davis said.

The budget review followed ▶ video: general fund revenue of $5.08 million, up 1.8 percent; $300,000 in interest income, which the Strategic Finance Committee warned not to count on forever; $25,000 for Middleburg Day; $10,000 for Christmas in Middleburg; nothing for charitable donations, now that requests go to the Foundation; and community events split from tourism marketing so residents can see what is spent on them. The Town Hall debt payments peak this year and stay there for 18 years, at 2.6 to 2.7 percent.

Still Short an Officer

The police vacancy is ten months old. Chief Shaun Jones said a neighboring chief was about to start a five-year officer at $80,000. "How do we compete with that?" Middleburg advertises $61,000. Younger officers are "chasing the dollar," he said, and he wants someone "dedicated to us." Councilmember Pam Curran asked for more creativity, and noted that a resident had offered an apartment to an officer. Davis wants a step pay plan; Littleton wants the recruiting reviewed by the Town's human resources consultant.

Also This Month

A sewer collapse: a 12-foot-deep main under a culvert at Route 50 and Windy Hill Road gave way; 250 feet were replaced for about $250,000, with one lane of Route 50 kept open.
Well 4 should restart before the clear well is finished, which will now run past June.
South Madison Street: without the grant, the estimate exceeds the budget; $750,000 is set aside. Five firms bid to run the Asbury Church community outreach; the review team includes former Mayor Betsy Davis.
Middleburg Day, May 31: invitations to about 920 households and businesses, free food for those who RSVP, a bus with stops at Virginia Lane, the Levis Hill House, Ridgeview and Jay Street, the Town Hall ribbon cutting, and a Fox 5 Zip Trip that morning.
Visitors: Senator Mark Warner held a business forum at Town Hall on March 25. The Museum of Hounds & Hunting cut its ribbon. The XCharge fast charger was going in.
Richmond: the accessory dwelling bills were put off to 2025; the FOIA fix, SB 36, which Town Attorney Martin Crim helped draft, passed; the speed-limit bill awaits the Governor; the Governor vetoed retail marijuana sales.
People: a resolution of thanks for Colleen Bryan, police administrative specialist for nine years; Erick Moore hired as Planning & Project Associate; Deputy Town Manager Will Moore back from medical leave.

Public Comment

March 14 ▶ video

Mark Thompson called the new Town Hall "absolutely lovely and stunning."
Public hearing on the real estate tax rate: no one spoke.

March 28 ▶ video

Megan Gallagher, East Marshall Street, thanked the Wellness Day organizers and asked Council to limit the Salamander short-term rentals to fewer than the Planning Commission's 90 nights.

Tips & Wags (opinion)

Tip of the Hat to the crews who replaced 250 feet of collapsed sewer main twelve feet down without closing Route 50.

Tip of the Hat to Mike Kilian, who told Council the committee should listen to residents too, on his way out the door.

Wag of the Finger to a 171 percent increase requested in one letter. Visit Loudoun does good work for Middleburg; it should have asked for the increase gradually over the years instead.

Coming Up

April 2–3: Council strategic planning retreat in Culpeper.
April: public hearings on the four short-term rental permits; answer to Visit Loudoun.
April 27: Arbor Day, Town Clean-Up and Drug Take Back Day.
May 4: Farmers Market opens on the Town Green. May 11: Art in the Burg.
May 31: Middleburg Day and the Town Hall ribbon cutting.

Sources: the meeting videos (March 14, March 28), the Town's minutes (pending approval) and the transcripts attached to them. Quotes come from the Town contractor's transcripts; each ▶ link opens the video at the start of that agenda item.