City of Wilmington opts to not appeal State Court of Appeal’s short-term rental decision

WILMINGTON, NC (WWAY) — The City of Wilmington says it will not appeal a major decision by the State Court of Appeals regarding short-term rentals.

The court’s decision struck down the City’s 2019 zoning ordinance regulating short-term rentals through a registration and lottery process.

After being denied registration, Peg and David Schroeder filed a complaint challenging the City’s ordinance saying it was unconstitutional and violated state law. With the Appeals Court ruling, the City is now amending its ordinance and will no longer require registrations for rentals. According to Attorney Ari Bargil, the General Assembly said local governments county could not require permits of registrations.

“And sure enough, soon after they passed that statute, the City of Wilmington went ahead and passed a registration requirement for short-term rentals in the City of Wilmington,” Bargil explained. “It was flatly foreclosed by the plain language of the statute. That’s what we argued on our lawsuit, and that’s what we won on.”
“I’m grateful to see that the democratic system really works,” David Schroeder smiled. “Sorry that it took three years. I’m grateful that my family doesn’t have to endure this for another three years.”

The Schroeders and their attorney said this a major victory for property owners. The City also plans to reimburse around $511,000 in registration fees and interst.

We reached out to the City of Wilmington, who says they will discuss this in Tuesday’s City Council meeting.