Catch Up with Council: Recap of November 10, 2026 Frisco Town Council Meeting – I-70 Exit #203 Property Transition, Taxation Ordinance, Short-Term Rental License Cap

I-70 Exit #203 AC Marriott/CDOT Real Property Transition Discussion

Town staff and AC Frisco staff and attorney presented three requests from AC Frisco in relation to Colorado Department of Transportation’s (CDOT) Exit 203 project. CDOT needed to acquire land from the AC Frisco to make the construction of Exit 203 possible, and AC Frisco is requesting that the Town provide easements for landscaping and snow storage, in addition to ensuring access to their parking lot for their operations, to resolve the challenges caused by this land transfer. The easements that are being requested by AC Frisco are on right-of-way/land that will be conveyed by CDOT to the Town once the Exit 203 project is completed.

1. Proposed snow storage easement
AC Frisco requests a snow storage easement, which is on 2,762 square feet of land. This easement is on land that will be owned by CDOT, but which will eventually be transferred to the Town of Frisco. AC Frisco is aware that snow would need to be hauled or transported to the easement and may not be plowed across the eventual frontage road.

2. Proposed landscape easement
AC Frisco requests a landscape easement, which is on 132 square feet of land. This easement would be along the north side of Lusher Court and east of AC Frisco’s existing primary entrance. The purpose is to avoid a gap in landscaping between the proposed sidewalk and the AC Frisco property line to allow AC Marriott to maintain an aesthetically consistent entrance into the AC Frisco.

3. Requested easement for access
AC Frisco requested formal confirmation that the Town will not block the proposed new access to its property at the west perimeter.   

Council Discussion

Council had questions about why the Town was involved in this easement discussion, rather than CDOT conveying an easement directly to AC Frisco. CDOT was able to explain that it is preferable to transfer the right-of-way directly to the Town, which can then provide any easements, as that process will be more efficient and follow State and Federal requirements. This would also allow the Town to direct the terms of their easement on the right-of-way which will be theirs.  

Council asked Public Works staff if these requests could be granted, while still ensuring that Public Work’s operations are maintained. Public Works indicated that maintenance and snow clearing will still be possible if these easements are granted. Subsequently, Town Council agreed to move forward with these requests and directed the Town attorney to return with an ordinance as early as December 8, 2026 to codify these three requests from AC Frisco.

Taxation Ordinance

Staff presented Ordinance 26-19 which repeals and re-enacts the Town’s Sales Tax, Lodging Tax, Medical Marijuana Excise Tax, Retail Marijuana Excise Tax, and Short-Term Rental Property Excise Tax articles in Chapter 160 of the Town Code. Re-enacting the articles provides a clean codified version, while incorporating the amendments described below. Most provisions are unchanged, and this ordinance does not change any tax rates.

The amendments modernize definitions and statutory references, clarify tax administration and collection procedures, update taxpayer protest and review rights, and eliminate the sales tax vendor fee beginning with the January 2027 reporting period. The ordinance also clarifies the responsibilities of the Finance Director and Town Manager and makes technical and conforming changes throughout Chapter 160.

Consistent with Town Council’s direction given during development of the 2027 budget, the most significant policy change is the elimination of the sales tax vendor fee, which currently allows businesses to keep 3.33% of sales tax that they collect for the Town from customers. This change has already been made by other local municipalities, as well as the State of Colorado. This additional revenue from the elimination of the vendor fee would be retained by the Town to use for economic development and related initiatives benefiting Frisco businesses.

Council Discussion and Decision

Council had questions about how the vendor fee change was being communicated, and Finance described the direct communications with businesses that are planned around this change. Council approved Ordinance 26-19 on first reading. Second reading will be on December 8, 2026.

Changes to the Short-Term Rental (STR) License Cap Calculation

Staff presented Town Council the second reading for proposed modifications to Chapter 110 of the Town Code regarding the calculation of residential units when determining short-term rental licenses. Proposed code amendments were drafted by staff based on the direction provided by Town Council at the October 13, 2026 work session.

In preparation for the October 13 Town Council meeting, staff reviewed the STR cap code language, analyzing if deed restricted units should be included in the overall total of residential units in Town used to calculate the number of STR licenses permitted in Frisco, which is currently 25% of all residential units. According to Town Code, 110-38, all residential housing units, regardless status- vacant, rented, owner occupied, or deed restricted, are counted towards the total number of residential housing units. When an income restricted rental housing development, such as The Scout, comes online with fifty-four rental units, this in effect would increase the number of STR licenses available in 2027 by 14.

Background

The Town of Frisco began regulating short-term rental properties in May 2019. Any accommodation unit available for lease for a term of less than thirty consecutive days is required to obtain a short-term rental license. The short-term rental regulations were designed to protect public health, safety, and welfare, preserve residential character, and balance the demands of a tourist-driven economy with the housing needs of the local community. Further information on the STR program can be found on the Town STR webpages.  

In 2022, the Town established an STR cap of 25% of residential units in the Town, which at that time totaled 3,600 total residential units. With 3,600 units, a total of 900 STR licenses were available, or 25% of residential units. These 3,600 residential units included all rental and ownership residential units including deed restricted housing units. As new residential units have been built, the overall number of STR licenses has increased. There are currently 924 STR licenses in Frisco.

Council Discussion and Decision

Several Town Councilmembers discussed revisiting how residential units are calculated and if deed restricted units before 2026 should also be taken out of this calculation; there were no plans made for putting a discussion of this type on a future agenda.

The first reading of Ordinance 26-14 was approved by Town Council on October 27, 2026, and Council approved Ordinance 26-14 on second reading during the November 10, 2026 meeting.

Frisco Town Council Meetings: Ways to Participate

Frisco Town Council meetings are available to view via Civic Plus Resident Portal, Zoom, and YouTube, and are also held in person to make Town Council meetings easier to access for everyone.

The public can provide comment during meetings via Zoom or in person (not on YouTube or Civic Plus), and a public comment period will be available at 7:00pm; during the consideration of ordinances; and at the discretion of Town Council during work session items, which are discussions that don’t require a formal vote by Town Council and do not require public comment.

November 10 packet link: https://friscoco.portal.civicclerk.com/event/622/overview

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