ICA Transformation Under Medvedow

10-104
Rev: November 9, 2010
This case was prepared by Cate Reavis, Manager, MIT Sloan
Teaching Innovation Resources (MSTIR).
Copyright © 2010, Massachusetts Institute of Technology. This
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Turnaround and Transformation: Leadership and Risk at
Boston’s Institute of Contemporary Art
Cate Reavis
On February 9, 2009, Shepard Fairey, a renowned street artist
known for his iconic red, white and
blue, “hope”, “change”, and “progress” posters of Barack
Obama that were used in the president’s
election campaign, was on his way to an opening night party for
his “Supply and Demand” exhibition
at Boston’s Institute of Contemporary Art when he was arrested
on an outstanding warrant outside the
front door. Fairey had failed to appear in court three days
earlier on a vandalism charge dating back to
2000.

While the arrest interrupted the opening night’s festivities—and
was a definite downer for the nearly
800 people who were awaiting Fairey’s arrival, some of whom
had purchased tickets on Craig’s List
for $5001—it did nothing to dampen public enthusiasm for
Fairey’s exhibit. Between February and
the exhibition’s closing in August, 130,000 people attended the
show.
In some sense, the Fairey incident was great PR for the ICA, an
institution that had gone through an
enormous transformation under its Director, Jill Medvedow.
When Medvedow arrived in 1998, the
ICA had no money, few members, no permanent collection, and,
on a good year, clocked 25,000
visitors. Operating out of an old police station on Boylston
Street, it was hardly a must-see cultural
destination in Boston. It was considered less a museum and
more an “insider’s art club”.2
By the time of Fairey’s exhibition, the ICA was, quite literally,
in a very different place. In 2006 the
museum celebrated the grand opening of its new $51 million
building, located on highly coveted
1 Milton Valencia, “Street Artist Arrested on Way to Event at
ICA,” The Boston Globe, February 7, 2009.
2 Geoff Edgers, “Big Draw,” The Boston Globe, July 19, 2009.
TURNAROUND AND TRANSFORMATION: LEADERSHIP
AND RISK AT BOSTON’S INSTITUTE OF
CONTEMPORARY ART
Cate Reavis

NOVEMBER 9, 2010 2
waterfront property in South Boston where, over the years,
several high-end commercial developers
had failed in their building attempts.
Medvedow’s ability to bring change to an organization that had
no power, involved being disciplined,
getting people to believe in an idea, and taking many, many
risks.
Contemporary Art in Boston
Up until the late 1920s, modern art in Boston, and throughout
the United States, struggled to be taken
seriously. In 1911 the director of Harvard University’s Fogg
museum summed up the general feeling
about contemporary art at the time: “In having exhibitions of
the work of living men we may subject
ourselves to various embarrassments.” By the late 1920s, a
group of Harvard undergraduates set out
to challenge this viewpoint by forming the Harvard Society of
Contemporary Art as a place where the
work of living men could be viewed.3 In 1936 the Society
became the Boston Museum of Modern Art
and in 1948 the museum changed its name to the Institute of
Contemporary Art. For more than 50
years, the ICA was the only place in Boston dedicated to
contemporary art.
Unlike other styles of art, contemporary art, which included
visual exhibitions, music, film, video and
performance created by living artists, had never caught on in
Boston like it had in other cities, most
notably New York and San Francisco. According to Medvedow,

there were a number of theories
behind this:
When you look at the ecology of what makes a vibrant
contemporary art scene, you need to have
several different components that all interact with one another.
There need to be art schools and a
strong artist community where work is created and ideas are
exchanged. You need collectors,
galleries and institutions that acquire, present, sell, and display
that work. Historically, Boston
lacked many of these components, never sustaining a critical
mass of contemporary art activity
and, as a result, these gaps prevented the growth of a healthy
contemporary art environment in
Boston.
Added to the ecology argument was the fact that there had been
little private and public sector
investment in the arts in Boston, particularly contemporary.
Municipal spending for the arts in Boston
was far less than what was spent in four dozen other cities in
the United States and, on a broader
scale, Massachusetts ranked 50th among the states for per capita
philanthropy.4 As Medvedow
remarked, “A lot of Boston’s wealth was built on conserving it
and less on creating it.” And then
there was the New York factor. As Medvedow noted, “New
York’s artistic energy, support, scale and
audience for the arts of all disciplines, has always been a
magnet for Boston’s artist community.”

3 Christine Temin, “The ICA at 60: Where does the museum fit
in?” The Boston Globe, May 5, 1996.
4 Maureen Dezell, “ICA Faces Fund-raising Challenge,” The
Boston Globe, March 10 2000.
CONTEMPORARY ART
Cate Reavis
NOVEMBER 9, 2010 3
There were members of Boston’s art world that felt the absence
of a strong contemporary art
community was a big drawback for Boston. As William Rawn, a
Boston architect and long time ICA
board member, explained, “Artists provide a very different way
of looking at the world. They ask
questions that are different from the norm and in Boston, a city
that honors academics and inventors,
this is particularly admired.” Furthermore, through their work,
contemporary artists reflected what
was currently happening in society and as Vin Cipolla, who
served on the ICA board for 16 years and
as its chairman from 1997-2005, noted: “It’s the role of an
institution like the ICA to provide a safe
place where a diversity of perspectives can be expressed to a
wide audience.”
This was something Medvedow believed at her core.
Jill Medvedow
Described as “pathologically optimistic,” Jill Medvedow’s

commitment to civic causes began when
she was young. Raised in New Haven, Connecticut, by parents
who were political and social activists,
Medvedow admitted that campaigning was something she was
exposed to in utero. “My parents
taught me how to be a good citizen,” she said. “My mother was
deeply engaged in volunteering for
civic and charitable causes and my father was a prominent
elected official. I grew up thinking I was
part of the city’s political fabric.”5 Through her upbringing, she
“learned about the basic mechanics of
organizing and how to move an agenda,”6 skill sets that would
serve her well in her professional life.
Trained as an art historian, Medvedow arrived in Boston in
1986 from Seattle where she had founded
a nonprofit contemporary arts center. In 1991 she became the
first full-time contemporary curator at
the Isabella Stewart Gardner Museum, bringing in numerous
performing and visual artists from
around the world. When she left the Gardner in 1996,
Medvedow was determined that her next career
move would involve bringing art to a broader public. “I was
trying to figure out how to build a bridge
between contemporary art and an audience that didn’t have a
great affection for it,” she explained. “I
came up with the idea of framing public art projects through the
history and landscape of Boston,
which Bostonians typically have a lot of affection for.” Within a
year, she founded Vita Brevis, an
organization devoted to producing temporary public art pieces.
With the first Vita Brevis project near
completion, Medvedow found herself being courted to become
the ICA’s next director.
According to Rawn, who headed the search committee for the

ICA’s new director, it was
Medvedow’s character as much as her curatorial background
that made her such an attractive
candidate:
The minute you met Jill you immediately noticed that she is
centered. She is not wowed by
trends. In language, in dress, she is not the least bit pretentious.
She doesn’t try to be someone or
something she isn’t. She is not out to prove anything to
anybody. She has a strong intellectual
5 Christine Temin, “Jill Medvedow’s Dreamscape…” The
Boston Globe, July 15, 2001.
6 Rachel Strutt, “The Visionary Jill Medvedow…” The Boston
Globe, December 31, 2006.
CONTEMPORARY ART
Cate Reavis
NOVEMBER 9, 2010 4
base for her opinions on art. This part of her persona was
reflected in her vision for the ICA,
which was something that really struck us. She was passionate
that the ICA needed to be relevant,
very public and non-elitist, and that in order for it to succeed, it
had to be better at outreach
whether it was with school children, local politicians, donors, or
members.

A further selling point for the search committee was that
because Medvedow was an outsider in the
world of museum directors, she didn’t come with old rivalries
or attachments.
Striving to be Marginal
When Medvedow took the reigns in March 1998, the ICA, with
a yearly attendance of 25,000 (an
average of 68 people a day) and a paltry budget just shy of $1
million, was in the midst of a severe
identity crisis. The museum was housed in a converted police
station and stable on Boylston Street, a
building it had purchased from the city of Boston in the early
1990s with $328,000 in donations from
trustees and overseers.7 (The Boylston address was the 10th
location the museum had had since its
founding.) The quirky space was largely defined by an
enormous staircase that cut down through the
center of the building’s four floors, creating enormous space
contraints for exhibits. Unlike other
Boston-area museums which could hang more than 10 shows a
year,8 the ICA was limited to just
four, with months of down time in between shows. Partly
because of space and largely because of
money and lack of interest, the ICA had no permanent
collection, an important symbol of status in the
museum world, which also helped art institutions create an
identity, draw repeat visitors, and build a
donor base. Meanwhile, contemporary art could be viewed at a
number of museums throughout
Boston, many of which were backed by well-endowed academic
institutions including MIT’s List
Visual Arts Center, the Rose Art Museum (Brandeis),

Massachusetts College of Art, the Museum of
Fine Arts, and Harvard University Art Museums. As Medvedow
liked to say at the time, “The ICA
was striving to be marginal.”
Medvedow’s mandate was to stabilize and reinvent. As Cipolla
explained,
The ICA was doing some great work but it didn’t really have a
point of view. The programming
was spotty, the outreach was not very strategic, and the building
we were in was a physical
manifestation of the inadequacy of the organization. The ICA
needed to be a place that, by the
nature of its work and outreach, touched multiple facets of the
Boston community. In order to
become this, we needed somebody driven, entrepreneurial, who
would be forceful about change.
One of the things that set Jill apart from the other candidates
wasn’t that she had spent a lifetime
in contemporary art but rather than she understood how to work
with audiences. She had the
passion to bring content and interactive thinking and approaches
to people of all ages across a
spectrum of interests, getting the ICA outside of an elite and
narrow comfort zone. She wasn’t
7 Christine Temin, “The ICA at 60: Where does the museum fit
in?” The Boston Globe, May 5, 1996.
8 Ibid.

CONTEMPORARY ART
Cate Reavis
NOVEMBER 9, 2010 5
willing to accept that what the ICA had to offer, or what
contemporary artists had to say, was not
important for all kinds of people.
As part of her hiring agreement, Medvedow was allowed to
bring Vita Brevis with her and fold it into
the ICA’s programming, a move that proved critical over the
following years as the ICA strove to
reposition itself. As one journalist noted at the time, “Since the
ICA has so much trouble pulling
people in, putting art where people will virtually have to trip
over it may be a smart move.”9
Early Days
Shortly after her arrival, Medvedow put together a “business
planning group” comprised of three
board members and three outsiders including Sheryl Marshall,
who, as a top stockbroker, was a
known business leader in Boston; Nick Littlefield, a lawyer who
had served as Senator Edward
Kennedy’s Chief of Staff for 10 years; and, Mary Schneider
Enriquez, an art historian and critic who
had recently moved to Boston from Mexico City. (Marshall and
Schneider Enriquez would eventually
join the ICA board.) With the help of the business planning
group, Medvedow set out to disrupt the
unproductive conversations of the existing board about the
future of the ICA. As Medvedow recalled,

“We looked at a number of questions. What kind of audience
did we want? Did we want to stay small
and focused or did we want to broaden our offerings? What
should be the role of education? We
explored questions involving content, specifically if we should
become a collecting institution. And
finally we looked at whether we could do this work in our
current Back Bay location.” It didn’t take
long for the group to decide that the ICA needed to grow its
audience, expand its educational
initiatives, form a task force to look at the idea of collecting,
and begin looking for a new space. (On
two separate occasions, directors of the ICA who preceded
Medvedow explored relocating the
museum but were unable to garner board or community
support.)
Medvedow’s attention then turned to learning about the Boston
real estate market. While she didn’t
know if or how it would be possible, she was clear that the ICA
needed to be located on the water:
“Our job is uniquely difficult in that Boston is not a city that
embraces contemporary art. Since
everything about our work is unfamiliar, we’re always fighting
for an audience. We needed to be
located on the water in order to attract people and motivate
them to come back time and again. And a
waterfront location was also a perfect metaphor for what we do
which is to expand horizons.”
After many months of knocking on doors to get information on
Boston waterfront real estate,
Mevedow’s research picked up momentum when the
Commissioner of Parks and Recreation, Justine
Liff, referred her to Ed Sidman, one of Boston’s big real estate
developers and a major philanthopist.

Sidman suggested they meet in the lobby of his firm’s building
as opposed to his office, a request
which sent an immediate negative signal to Medvedow. But she
succeeded in flipping the switch:
9 Christine Temin, “Seeing the Light,” The Boston Globe, April
19, 1998.
CONTEMPORARY ART
Cate Reavis
NOVEMBER 9, 2010 6
After listening to my pitch, he was ready to send me off with a
name of the next person I should
talk to when I said to him, ‘You know, I swim in your pool at
the Leventhal-Sidman Jewish
Community Center in Newton.’ And he says, ‘Oh really.’ And I
say, ‘Yes, and I frequently go to
the openings in the center’s gallery.’ The next thing you know
he’s saying, ‘Let’s go to my
office.’ So now we’re in his office and I’ve honed in on his
passion which is how to get members
of a JCC to engage in Jewish continuity and not just athletics.
We ended up having a deep,
intense conversation. The next thing I know, he has given me a
couple good names to pursue for
waterfront real estate. And for the next couple of years, I meet
with him regularly to advise him
on his project.

Following up on Sidman’s recommendations, Medvedow
eventually landed a meeting with the
Boston 2000 committee. Put together by Mayor Thomas Menino
to plan millenial activities for
Boston, one of the committee’s responsibilities was deciding
who or what should be designated the
.75 acre parcel, also known as Parcel J, on Boston’s Fan Pier.
Little did she know, the committee would end up being
Medvedow’s last stop in her real estate
search.
Fan Pier’s Parcel J
Described as “a wasteland of parking lots,”10 Parcel J was just
a tiny sliver of the 21 acre, 3-million
square foot, nine-block industrial area owned by the Pritzker
family, which was slated to be part of
the largest waterfront development in Boston’s history. The
proposed plan was to populate the space
with 800 residential units, 1,000 hotel rooms, 150,000 square
feet of civic and cultural space, parks
and open space, and an extension of a walkway along Boston
Harbor.11 In a deal with the city of
Boston, which enabled them to expand the size of their
proposed hotels,12 the Pritzkers agreed to
donate Parcel J to a cultural site.
Medvedow met with the Boston 2000 committee in the spring of
1999. It was a Thursday. Impressed
with her ideas for a future ICA on the waterfront, the committee
suggested she present to the Boston
2000 subcommittee on Parcel J. Much to her disbelief,
Medvedow found herself committing to giving

a formal, “this-is-what-we-have-in-mind” presentation the next
Tuesday. As she recalled, “The
decision to go after the parcel was a big leap of faith. It was
very hard to imagine we could make the
case given how weak we were.”
Scraping together $5,000, Medvedow hired an architect who
drew a mock-up of a future ICA perched
on Parcel J. In giving the architect directives, Medvedow was
concerned with one detail: that the
10 Geoff Edgers, “How They Did It,” The Boston Globe,
December 6, 2006.
11 “Institute of Contemporary Art, Boston Announces Four
Internationally Recognized Architecture Firms….” ICA Press
Release, December 13, 2000.
12 It is not uncommon in commercial real estate for a developer
to designate a parcel of land in exchange for being allowed to
add height to a building as a way
to maximize revenue and earning potential.
CONTEMPORARY ART
Cate Reavis
NOVEMBER 9, 2010 7
structure fit on the land that was available. Along with the
mock-up, Medvedow and a couple ICA
staff members spent the weekend before the presentation
making boards of eight museums — ranging
in size and cost from the Milwaukee Art Museum to

Minneapolis’ Weisman Art Museum to the Getty
in Los Angeles — that had been built in different cities since
the early 1990s. Their idea was to stress
the point that these museums had catapulted civic life and
economic development in their respective
cities and had played an important role in urban rebirth.
Medvedow arrived on the designated Tuesday to present and
found to her surprise that the ICA was
one of three finalists who were presenting. One of the other
finalists, a collaboration involving the
Wang Center, Boston Ballet and Boston Lyric Opera, proposed
a three-stage complex, described as a
cross between Sydney’s Opera House and New York’s Lincoln
Center. The $100 million complex
would include a 2,400-seat opera and ballet house, a 500-700-
seat playhouse, and a floating stage that
could accommodate an audience of 1,000. Due to its size, the
complex was expected to exceed the
allotted space and would require some additional land that had
been set aside by the Pritzkers for an
office tower. The other finalist was a relatively unknown
Boston-area entrepreneur who wanted to
develop a $40 million Fan Pier Performing Arts and Film Center
that would include a 700-seat recital
hall and 125-seat partially open-air theater.
In her pitch, Medvedow stressed that the new ICA would be “a
public destination and the
architectural heartbeat of the city.”13 Funded by a $40 million
capital campaign, the four-story
building would occupy 60,000 square feet and would include a
400-seat theater, and a roof sculpture
garden. It would hold up to 2,000 visitors. Medvedow left the
presentation thinking that the museum
had a slim shot, at best, of winning Parcel J, but she was

increasingly convinced that the waterfront
was the right location for a new ICA. The committee’s final
decision would be announced in
November.
Drumming up Support
In the intervening six months, Medvedow got busy educating
the public, particularly local politicians,
residents and area artists, on the ICA’s plans for a new home on
Fan Pier. To help her sell the idea,
Medvedow approached Gloria Larson, who at the time was a
partner at one of Boston’s premier law
firms who specialized in real estate development and
government. At the time, Larson was chairman
of the board of the Convention Center Authority and was in the
middle of her own campaign to get a
new convention center built in South Boston. As Larson
explained, “I joined the ICA ‘campaign’ as
both a lawyer and an advocate. I felt like Jill and I were
traveling down the same path together.”
In planning the campaign’s strategy, Larson recalled: “We
asked ourselves, ‘Who do we need to
touch who normally won’t get touched in a process like this?
Who would normally never support
building an ICA on South Boston’s waterfront?’” After a bit of
reflection, Larson decided to visit a
couple of South Boston’s key political leaders. Larson took
Medvedow to meet James Kelly, who at
13 Maureen Dezell, “ICA Faces Fund-raising Challenge,” The
Boston Globe, March 10 2000.

CONTEMPORARY ART
Cate Reavis
NOVEMBER 9, 2010 8
the time was the city council’s president, state senator Stephen
Lynch, and state representative Jack
Hart, all of whom she knew from her law practice and her work
on the convention center. The
purpose of the meeting was to educate them on the ICA’s
development plans and to hear their
concerns.
After introductions, Kelly began the conversation by saying,
“You can’t tell us you’re going to build
a contemporary art museum next to Southie.” Medvedow
responded by saying, “Let me tell you about
it. Let me tell you about the programs we have and how I want
to bring kids from South Boston in,
and how the world of art is an opportunity to expand their
horizons in ways that I know you would
support.” Hearing her out, Kelly’s concerns turned to the
infamous Robert Mapplethorpe exhibit.
Shown at the ICA in the early 1990s, the exhibit caused great
controversy for its sexually explicit
photographs. “You have to promise me you will never do a
show like that again,” Kelly stated.
Medvedow retorted with: “You know I can’t make that promise.
That would be like me asking you to
promise that you’ll never do anything controversial again. But
how about I promise you that if I’m
going to do anything like that, I will give you notice so that you
won’t be caught by surprise.” Kelly
quickly responded with, “Well if you ever do anything like that

I will organize a picket.” “Well if you
organize a picket,” Medvedow said, “I’ll bring you coffee,
because that kind of attention is exactly
what we need to build an audience for the ICA in Boston.” It
was at this point in the exchange that
Kelly turned to Larson and said, “Larson, I like your friend
Jill.”
In November 1999 the Boston 2000 committee announced that
the ICA had won the Parcel J
competition. Medvedow believed one of the main reasons the
ICA was chosen was because the
mock-up demonstrated that from a space perspective, the
museum would be a perfect fit. In addition,
the ICA had successfully proven its financial viability to the
committee by identifying $12 million—
of which $6 million would come from the sale of its Boylston
building—of the estimated $40 million
needed for the project. Larson believed that Medvedow’s ability
to assess her audience before sharing
her vision was key to sealing the deal. “She had a way of
presenting to large and small audiences the
concept of a new ICA so that it became something they could
own too. She was able to tell the story
in ways that each audience could hear.”
Of course, there were many skeptics of the committee’s decision
and the ICA’s plan. Some thought
that locating the ICA away from other cultural attractions was a
mistake. After all, it had not been
able to attract visitors when it was located in the heart of
Boston’s tourist district. Then there was the
whole issue of money, something the ICA had little of and had
no history of raising. While the land
was free, the building and operational costs would more than
test the museum’s fundraising

capabilities. As Paul Buttenwieser, ICA board member and
Boston philanthropist, put it, “The key
question is whether the wider community of philanthropic and
arts supporters will see this as a
credible project they want to be involved with.”14
14 Maureen Dezell, “ICA Faces Fund-Raising Challenge,” The
Boston Globe, March 10, 2000.
CONTEMPORARY ART
Cate Reavis
NOVEMBER 9, 2010 9
But then there were those who were quietly cheering for the
ICA. As one Boston Globe journalist
pointed out, “While informed observers think it unlikely the
ICA will realize its goals, an unusual
number hold out hope that it will. In a city better known for its
enthusiasm for sports, politics and
revenge than for boosterism, optimists and cynics admire the
organization for attempting to defy the
formidable odds against building something innovative in
Boston.”15
And then there was the ICA’s biggest cheerleader. As Larson
noted, “Jill believed in the vision
herself. She had no doubt that it could be done.”
Now What?

After winning the right to build on Parcel J, one of Medvedow’s
first orders of business was to hire a
director of development, a position that had not previously
existed at the ICA. A consultant
Medvedow had hired to help develop a fundraising and
endowment strategy suggested she talk to the
MFA’s marketing director Paul Bessire. This same consultant,
however, warned Medvedow that
Bessire would never leave the MFA for the ICA. She wanted to
talk to him nevertheless.
Meeting over a drink, Medvedow and Bessire connnected
immediately after discovering they lived in
the same neighborhood and their kids went to the same school.
When the conversation turned to the
purpose of their meeting Medvedow was blunt: “Why,” she
asked, “would you rather stay at the MFA
than be a part of making something totally new that could
reshape how the city of Boston thinks
about contemporary art?”
By spring 2000, Bessire was the ICA’s new Director of External
Relations. Shortly after his arrival
the ICA launched a $50 million “Campaign for the New ICA” —
which eventually grew to $62
million — on the back of $6 million that had been committed by
two ICA trustees. As Bessire
explained, launching a campaign with far less than 50% of
funds already raised was a very
unconventional strategy, but it was one that made sense for an
organization that wanted to send a
message to the community: “The strategy was to demonstrate
that there was a commitment on the
part of the board and the institution to make this project happen
and a good fundraising strategy

always begins with the family.”
In concert with developing a fundraising strategy and finding
and hiring the right talent to oversee it,
Medvedow was eager to bring in new blood—which was to say
…
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At a standing-room-
only town hall meeting in January at Sierra Nevada CollegeAt a
standing-room-
only town hall meeting in January at Sierra Nevada CollegeAt a
standing-room-
only town hall meeting in January at Sierra Nevada College
in Incline Village, Nev., residents voiced passionate opinions on
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nate opinions on a question thatin Incline Village, Nev., residen
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decades: What’s the best way to house the
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round?hordes of vacationers who descend on the lake year-
round?

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l overwhelming,Such is life for Tahoe locals: The crush of touri
sts can often feel overwhelming,Such is life for Tahoe locals: T
he crush of tourists can often feel overwhelming,
but it is also the lifeblood of the economy. The region, which en
compasses fivebut it is also the lifeblood of the economy. The r
egion, which encompasses fivebut it is also the lifeblood of the
economy. The region, which encompasses five
counties in two states, sees around 3 million visitors a year.cou
nties in two states, sees around 3 million visitors a year.countie
s in two states, sees around 3 million visitors a year.
At issue that evening was the management of short-
term rentals —
units leasedAt issue that evening was the management of short-
term rentals —

units leasedAt issue that evening was the management of short-
term rentals — units leased
for 30 days or less at a time. Think ski cabins, lakeside lodges,
vacation condosfor 30 days or less at a time. Think ski cabins, l
akeside lodges, vacation condosfor 30 days or less at a time. Thi
nk ski cabins, lakeside lodges, vacation condos
and the plethora of other housing options available on sites such
as Airbnb andand the plethora of other housing options availabl
e on sites such as Airbnb andand the plethora of other housing o
ptions available on sites such as Airbnb and
VRBO. STRs, as they’re known, are a crucial source of income
for residents andVRBO. STRs, as they’re known, are a crucial s
ource of income for residents andVRBO. STRs, as they’re know
n, are a crucial source of income for residents and
municipal governments in an area where tourism is the dominan
t industry, butmunicipal governments in an area where tourism i
s the dominant industry, butmunicipal governments in an area w
here tourism is the dominant industry, but
they’ve saddled communities with all sorts of nuisances: illegal
parking,they’ve saddled communities with all sorts of nuisances
: illegal parking,they’ve saddled communities with all sorts of n
uisances: illegal parking,
excessive noise, wild partying, trash.excessive noise, wild party
ing, trash.excessive noise, wild partying, trash.
“Opinions of STRs vary dramatically,” says Jeff Loux, town ma
nager of Truckee.“Opinions of STRs vary dramatically,” says Je
ff Loux, town manager of Truckee.“Opinions of STRs vary dram
atically,” says Jeff Loux, town manager of Truckee.

“We hear the spectrum from ‘STRs are the problem’ to ‘You can
’t possibly ban“We hear the spectrum from ‘STRs are the proble
m’ to ‘You can’t possibly ban“We hear the spectrum from ‘STR
s are the problem’ to ‘You can’t possibly ban
these, they are the lifeblood of the economy.’”these, they are th
e lifeblood of the economy.’”these, they are the lifeblood of the
economy.’”
Perhaps more consequential to a region where the median annua
l income hoversPerhaps more consequential to a region where th
e median annual income hoversPerhaps more consequential to a
region where the median annual income hovers
around $45,000, STRs stress the already limited housing supply
of Lake Tahoe —
of Lake Tahoe —
of Lake Tahoe —
http://www.sfchronicle.com/newsletters/travel/
where 65 percent of homes sit vacant most of the year and local
s are increasinglywhere 65 percent of homes sit vacant most of t
he year and locals are increasinglywhere 65 percent of homes si
t vacant most of the year and locals are increasingly
struggling to find affordable housing.struggling to find affordab

le housing.struggling to find affordable housing.
The discord over STRs in Tahoe has been swirling for a decade,
since the rise ofThe discord over STRs in Tahoe has been swirl
ing for a decade, since the rise ofThe discord over STRs in Taho
e has been swirling for a decade, since the rise of
rental services. But the issue was reignited last fall when voters
in South Lakerental services. But the issue was reignited last fal
l when voters in South Lakerental services. But the issue was re
ignited last fall when voters in South Lake
Tahoe passed Measure T, an ordinance designed to phase out ST
Rs by 2021. TheTahoe passed Measure T, an ordinance designed
to phase out STRs by 2021. TheTahoe passed Measure T, an or
dinance designed to phase out STRs by 2021. The
measure passed by a mere 58 votes —
less than 1 percent of votes cast —
but themeasure passed by a mere 58 votes —
less than 1 percent of votes cast —
but themeasure passed by a mere 58 votes —
less than 1 percent of votes cast — but the
message became clear: South Lake’s citizenry is fed up with the
lack ofmessage became clear: South Lake’s citizenry is fed up
with the lack ofmessage became clear: South Lake’s citizenry is
fed up with the lack of
regulations on STRs.regulations on STRs.regulations on STRs.
While Measure T represents the most extreme example of action
on STRs, similarWhile Measure T represents the most extreme
example of action on STRs, similarWhile Measure T represents
the most extreme example of action on STRs, similar

debates are happening all around Lake Tahoe, exemplifying the
tightrope walkdebates are happening all around Lake Tahoe, exe
mplifying the tightrope walkdebates are happening all around L
ake Tahoe, exemplifying the tightrope walk
of attracting tourism and maintaining a town’s unique character.
“It is a balancing act,” Loux says. “On the one hand, this is a re
sort community“It is a balancing act,” Loux says. “On the one h
and, this is a resort community“It is a balancing act,” Loux says
. “On the one hand, this is a resort community
where people have rented their properties on a short-
term basis for decades. …where people have rented their propert
ies on a short-
term basis for decades. …where people have rented their propert
ies on a short-term basis for decades. …
On the other hand, we are a community, not just a resort.”On th
e other hand, we are a community, not just a resort.”On the othe
r hand, we are a community, not just a resort.”
To help ground future decisions in data, a report on the impact o
f STRs is soon toTo help ground future decisions in data, a repo
rt on the impact of STRs is soon toTo help ground future decisi
ons in data, a report on the impact of STRs is soon to
be released by the Mountain Housing Council of Tahoe-
Truckee, a coalition of 28be released by the Mountain Housing
Council of Tahoe-
Truckee, a coalition of 28be released by the Mountain Housing
Council of Tahoe-Truckee, a coalition of 28
business and community groups including ski resorts, governme

nts and realtybusiness and community groups including ski reso
rts, governments and realtybusiness and community groups incl
uding ski resorts, governments and realty
boards. Due out this month, the report focuses on the Truckee/N
orth Tahoeboards. Due out this month, the report focuses on the
Truckee/North Tahoeboards. Due out this month, the report focu
ses on the Truckee/North Tahoe
region, which includes the majority of Tahoe’s west shore, the n
orth shore goingregion, which includes the majority of Tahoe’s
west shore, the north shore goingregion, which includes the maj
ority of Tahoe’s west shore, the north shore going
east to where it borders Nevada, and up to Truckee, 15 miles no
rth of the lake.east to where it borders Nevada, and up to Truck
ee, 15 miles north of the lake.east to where it borders Nevada, a
nd up to Truckee, 15 miles north of the lake.
Seana Doherty, project manager for the council, hopes the study
will serve as aSeana Doherty, project manager for the council,
hopes the study will serve as aSeana Doherty, project manager f
or the council, hopes the study will serve as a
turning point for policymakers, as it will sharpen the focus on t
he scope of theturning point for policymakers, as it will sharpen
the focus on the scope of theturning point for policymakers, as
it will sharpen the focus on the scope of the
issue. For example, the council found that 13 percent of the esti
mated 38,801issue. For example, the council found that 13 perce
nt of the estimated 38,801issue. For example, the council found
that 13 percent of the estimated 38,801
housing units in Truckee and North Tahoe are being rented on a
short-

termhousing units in Truckee and North Tahoe are being rented
on a short-
termhousing units in Truckee and North Tahoe are being rented
on a short-term
basis. Doherty believes this number is significantly lower than p
eople wouldbasis. Doherty believes this number is significantly
lower than people wouldbasis. Doherty believes this number is s
ignificantly lower than people would
have assumed, indicating that the impact of STRs may not be as
large a part ofhave assumed, indicating that the impact of STRs
may not be as large a part ofhave assumed, indicating that the i
mpact of STRs may not be as large a part of
the housing problem as people imagined.the housing problem as
people imagined.the housing problem as people imagined.
For now, the debate remains hotly contested, as different areas
of the lake takeFor now, the debate remains hotly contested, as
different areas of the lake takeFor now, the debate remains hotl
y contested, as different areas of the lake take
different approaches to management. Here is how the issue is sh
aping up arounddifferent approaches to management. Here is ho
w the issue is shaping up arounddifferent approaches to manage
ment. Here is how the issue is shaping up around

the lake.the lake.the lake.
South Lake TahoeSouth Lake TahoeSouth Lake TahoeSouth Lak
e Tahoe
Situated adjacent to a handful of tourist-
friendly casinos just over the stateSituated adjacent to a handful
of tourist-
friendly casinos just over the stateSituated adjacent to a handful
of tourist-friendly casinos just over the state
border in Nevada, South Lake Tahoe is the largest city on the la
ke, with 22,000border in Nevada, South Lake Tahoe is the large
st city on the lake, with 22,000border in Nevada, South Lake Ta
hoe is the largest city on the lake, with 22,000
residents.residents.residents.
It’s also a hotbed of STR controversy; Measure T is the most ag
gressive attemptIt’s also a hotbed of STR controversy; Measure
T is the most aggressive attemptIt’s also a hotbed of STR contro
versy; Measure T is the most aggressive attempt
to rein in short-
term rentals in the region. Supporters believe the measure could
to rein in short-
to rein in short-
add to the supply of long-
term rental options. Detractors worry about stymieingadd to the
supply of long-
term rental options. Detractors worry about stymieingadd to the
supply of long-
term rental options. Detractors worry about stymieing

cash flow to the city, including an estimated $4 million in annua
l tax revenue.cash flow to the city, including an estimated $4 mi
llion in annual tax revenue.cash flow to the city, including an es
timated $4 million in annual tax revenue.
The measure seeks to reduce occupancy limits for STR units and
eliminate themThe measure seeks to reduce occupancy limits fo
r STR units and eliminate themThe measure seeks to reduce occ
upancy limits for STR units and eliminate them
completely by the end of 2021 outside the tourist core, which ru
ns alongcompletely by the end of 2021 outside the tourist core,
which runs alongcompletely by the end of 2021 outside the touri
st core, which runs along
Highway 50 from Ski Run Boulevard to the Nevada border. Ther
e are about 1,400Highway 50 from Ski Run Boulevard to the Ne
vada border. There are about 1,400Highway 50 from Ski Run Bo
ulevard to the Nevada border. There are about 1,400
units outside the tourist core and 400 within it. Measure T grant
s full-
time Southunits outside the tourist core and 400 within it. Meas
ure T grants full-
time Southunits outside the tourist core and 400 within it. Meas
ure T grants full-time South
Lake Tahoe residents an exemption to the new rules.Lake Tahoe
residents an exemption to the new rules.Lake Tahoe residents a
n exemption to the new rules.
Before Measure T, the city had taken other measures to curb unc
hecked STRBefore Measure T, the city had taken other measure
s to curb unchecked STRBefore Measure T, the city had taken ot
her measures to curb unchecked STR

growth. In October 2017, for example, the city put a moratorium
on vacationgrowth. In October 2017, for example, the city put a
moratorium on vacationgrowth. In October 2017, for example, t
he city put a moratorium on vacation
rental permits, and at the end of that year enacted heavy fines fo
r partying,rental permits, and at the end of that year enacted hea
vy fines for partying,rental permits, and at the end of that year e
nacted heavy fines for partying,
illegal parking and other nuisance issues.illegal parking and oth
er nuisance issues.illegal parking and other nuisance issues.
…
2/11/2019 Airbnb loses thousands of hosts in SF as registration
rules kick in - SFChronicle.com
https://www.sfchronicle.com/business/article/Airbnb-loses-
thousands-of-hosts-in-SF-as-12496624.php 1/7
B I Z & T E C H B I Z & T E C H B I Z & T E C H // //
// B U S I N E S SB U S I N E S SB U S I N E S S
Airbnb loses thousands of hosts in SF asAirbnb loses thousands
of hosts in SF asAirbnb loses thousands of hosts in SF as
registration rules kick inregistration rules kick inregistration rul
es kick in
Carolyn SaidCarolyn SaidCarolyn Said
a.m.

Gustav Choto (left) talks with Omar Masry, senior analyst at the
short-
with Omar Masry, senior analyst at the short-
Hosts in SanGustav Choto (left) talks with Omar Masry, senior
analyst at the short-
Francisco for Airbnb and other services must register properties
by Tuesday.Francisco for Airbnb and other services must
register properties by Tuesday.Francisco for Airbnb and other
services must register properties by Tuesday.
Photo: Carlos Avila Gonzalez, The ChroniclePhoto: Carlos
Avila Gonzalez, The ChroniclePhoto: Carlos Avila Gonzalez,
The Chronicle
https://www.sfchronicle.com/author/carolyn-said/
Thousands of San Francisco hosts on Airbnb and rival home-
stay sites haveThousands of San Francisco hosts on Airbnb and
rival home-
stay sites haveThousands of San Francisco hosts on Airbnb and
rival home-stay sites have
stopped renting their homes and rooms to tourists. Many others
are scramblingstopped renting their homes and rooms to tourists
. Many others are scramblingstopped renting their homes and ro
oms to tourists. Many others are scrambling
to register their vacation rentals with the city as a Tuesday dead
line looms forto register their vacation rentals with the city as a

Tuesday deadline looms forto register their vacation rentals wit
h the city as a Tuesday deadline looms for
Airbnb and HomeAway to kick off unregistered hosts.Airbnb an
d HomeAway to kick off unregistered hosts.Airbnb and HomeA
way to kick off unregistered hosts.
“If you look at the sites, you’ll notice a substantial reduction in
the number of“If you look at the sites, you’ll notice a substantia
l reduction in the number of“If you look at the sites, you’ll noti
ce a substantial reduction in the number of
listings,” said Kevin Guy, director of the San Francisco Office o
f Short-
Termlistings,” said Kevin Guy, director of the San Francisco Of
fice of Short-
Termlistings,” said Kevin Guy, director of the San Francisco Of
fice of Short-Term
Rental Administration and Enforcement.Rental Administration a
nd Enforcement.Rental Administration and Enforcement.
The rush to register is the result of an agreement between the cit
y and the sites,The rush to register is the result of an agreement
between the city and the sites,The rush to register is the result o
f an agreement between the city and the sites,
which had fought San Francisco’s efforts to strengthen registrati
on requirementswhich had fought San Francisco’s efforts to stre
ngthen registration requirementswhich had fought San Francisco
’s efforts to strengthen registration requirements
and rental limitations imposed in 2015. After a court battle, San
Francisco,and rental limitations imposed in 2015. After a court
battle, San Francisco,and rental limitations imposed in 2015. Af
ter a court battle, San Francisco,

Airbnb and HomeAway reached a settlement in May that require
d the sites toAirbnb and HomeAway reached a settlement in Ma
y that required the sites toAirbnb and HomeAway reached a sett
lement in May that required the sites to
register all hosts in phases starting in September.register all hos
ts in phases starting in September.register all hosts in phases sta
rting in September.
By Tuesday, all hosts must be registered. Airbnb and HomeAwa
y won’t allowBy Tuesday, all hosts must be registered. Airbnb a
nd HomeAway won’t allowBy Tuesday, all hosts must be registe
red. Airbnb and HomeAway won’t allow
unregistered hosts on their sites, and other services, like FlipKe
y, which weren’tunregistered hosts on their sites, and other serv
ices, like FlipKey, which weren’tunregistered hosts on their site
s, and other services, like FlipKey, which weren’t
a party to the settlement, will face fines of up to $1,000 a day p
er listing anda party to the settlement, will face fines of up to $
1,000 a day per listing anda party to the settlement, will face fin
es of up to $1,000 a day per listing and
criminal penalties if they help arrange bookings of unregistered
listings.criminal penalties if they help arrange bookings of unre
gistered listings.criminal penalties if they help arrange bookings
of unregistered listings.
The city said 2,168 hosts had met its requirements to offer temp
orary rentals asThe city said 2,168 hosts had met its requiremen
ts to offer temporary rentals asThe city said 2,168 hosts had met
its requirements to offer temporary rentals as
of Thursday —

representing a fraction of the 8,453 Airbnb listings the cityof T
hursday —
representing a fraction of the 8,453 Airbnb listings the cityof T
hursday —
representing a fraction of the 8,453 Airbnb listings the city
observed in early August. (That count excludes more than 2,500
listings exemptobserved in early August. (That count excludes
more than 2,500 listings exemptobserved in early August. (That
count excludes more than 2,500 listings exempt
from the rules.) An additional 737 have submitted applications a
nd can hostfrom the rules.) An additional 737 have submitted ap
plications and can hostfrom the rules.) An additional 737 have s
ubmitted applications and can host
while those are pending. About 15 percent of them have more th
an one listing,while those are pending. About 15 percent of the
m have more than one listing,while those are pending. About 15
percent of them have more than one listing,
such as two rooms in their home.such as two rooms in their hom
e.such as two rooms in their home.
The number is in flux: Some pending applications may be reject
ed, while aboutThe number is in flux: Some pending application
s may be rejected, while aboutThe number is in flux: Some pend
ing applications may be rejected, while about
two dozen applications a day are still arriving. Hosts can still ap
ply aftertwo dozen applications a day are still arriving. Hosts ca
n still apply aftertwo dozen applications a day are still arriving.
Hosts can still apply after
Tuesday, but any bookings will be canceled until they are regist
ered.Tuesday, but any bookings will be canceled until they are r

egistered.Tuesday, but any bookings will be canceled until they
are registered.
Airbnb, which got its start in San Francisco just under a decade
ago and is stillAirbnb, which got its start in San Francisco just
under a decade ago and is stillAirbnb, which got its start in San
Francisco just under a decade ago and is still
headquartered here, is by far the city’s biggest vacation-
rental site. It says thatheadquartered here, is by far the city’s bi
ggest vacation-
rental site. It says thatheadquartered here, is by far the city’s bi
ggest vacation-rental site. It says that
most hosts are residents who rent out spare rooms, or their entir
e home whenmost hosts are residents who rent out spare rooms,
or their entire home whenmost hosts are residents who rent out s
pare rooms, or their entire home when
they are away, making them compliant with city laws.they are a
way, making them compliant with city laws.they are away, maki
ng them compliant with city laws.
In addition, the company has about 2,650 listings in San Francis
co that areIn addition, the company has about 2,650 listings in S
an Francisco that areIn addition, the company has about 2,650 li
stings in San Francisco that are

exempt from the registration requirement, including rentals of 3
0 or more days,exempt from the registration requirement, includ
ing rentals of 30 or more days,exempt from the registration requ
irement, including rentals of 30 or more days,
bed and breakfasts, and hotels.bed and breakfasts, and hotels.be
d and breakfasts, and hotels.
“Over the last few months, we’ve focused on educating our host
community“Over the last few months, we’ve focused on educati
ng our host community“Over the last few months, we’ve focuse
d on educating our host community
about the registration process, and will continue our outreach ef
forts in the finalabout the registration process, and will continue
our outreach efforts in the finalabout the registration process, a
nd will continue our outreach efforts in the final
days to ensure hosts have all the information they need to regist
er,” saiddays to ensure hosts have all the information they need
to register,” saiddays to ensure hosts have all the information th
ey need to register,” said
spokeswoman Mattie Zazueta.spokeswoman Mattie Zazueta.spo
keswoman Mattie Zazueta.
Airbnb has removed more than 2,600 listings since September. I
t doesn’t yetAirbnb has removed more than 2,600 listings since
September. It doesn’t yetAirbnb has removed more than 2,600 li
stings since September. It doesn’t yet
know how many more it must ax Tuesday. Many listings had litt
le activity, soknow how many more it must ax Tuesday. Many li
stings had little activity, soknow how many more it must ax Tue
sday. Many listings had little activity, so

their removal won’t hurt its local business, she said.their remov
al won’t hurt its local business, she said.their removal won’t hur
t its local business, she said.
Airbnb said it booked the same number of nights in San Francis
co in the 30 daysAirbnb said it booked the same number of nigh
ts in San Francisco in the 30 daysAirbnb said it booked the sam
e number of nights in San Francisco in the 30 days
after Dec. 5 as during the same period a year earlier. Worldwide
, its businessafter Dec. 5 as during the same period a year earlie
r. Worldwide, its businessafter Dec. 5 as during the same period
a year earlier. Worldwide, its business
soared during the same time frame. It booked 3 million guests g
lobally for Newsoared during the same time frame. It booked 3
million guests globally for Newsoared during the same time fra
me. It booked 3 million guests globally for New
Year’s Eve —
up 50 percent from the last night of 2016.Year’s Eve —
up 50 percent from the last night of 2016.Year’s Eve —
up 50 percent from the last night of 2016.
HomeAway and VRBO, both owned by Expedia, and FlipKey, o
wned byHomeAway and VRBO, both owned by Expedia, and Fli
pKey, owned byHomeAway and VRBO, both owned by Expedia,
and FlipKey, owned by
TripAdvisor, showcase many second homes, which San Francisc
o does not allowTripAdvisor, showcase many second homes, wh
ich San Francisco does not allowTripAdvisor, showcase many s
econd homes, which San Francisco does not allow
to be offered as vacation rentals.to be offered as vacation rental
s.to be offered as vacation rentals.

“FlipKey looks like a massacre happened, there are so few listin
gs now,” said“FlipKey looks like a massacre happened, there ar
e so few listings now,” said“FlipKey looks like a massacre happ
ened, there are so few listings now,” said
Omar Masry, senior analyst at the Office of Short-
Term Rentals. “On VRBO, youOmar Masry, senior analyst at th
e Office of Short-
Term Rentals. “On VRBO, youOmar Masry, senior analyst at th
e Office of Short-Term Rentals. “On VRBO, you
A sign points to the desk where Senior Analyst Omar Masry
helps Marcy Lipton with her paperwork forA sign points to the
desk where Senior Analyst Omar Masry helps Marcy Lipton
with her paperwork forA sign points to the desk where Senior
Analyst Omar Masry helps Marcy Lipton with her paperwork for
in San Francisco, Calif., on Wednesday,hosting guests in her
Calif., on Wedne
Short Term Rentals in San Francisco, Calif., on Wednesday,
who wish to host guests host g
Francisco residents who wish to host guests host guests through
Airbnb, VRBOthrough Airbnb, VRBOthrough Airbnb, VRBO

can see that the map of San Francisco is no longer covered in pi
ns (of availablecan see that the map of San Francisco is no long
er covered in pins (of availablecan see that the map of San Fran
cisco is no longer covered in pins (of available
properties). A shakeout is happening.”properties). A shakeout is
happening.”properties). A shakeout is happening.”
FlipKey has removed 498 San Francisco listings and has only 57
remaining,FlipKey has removed 498 San Francisco listings and
has only 57 remaining,FlipKey has removed 498 San Francisco l
istings and has only 57 remaining,
excluding those exempt from the registration requirement such a
s hotels,excluding those exempt from the registration requireme
nt such as hotels,excluding those exempt from the registration r
equirement such as hotels,
timeshares and B&Bs, the city said.timeshares and B&Bs, the ci
ty said.timeshares and B&Bs, the city said.
TripAdvisor spokeswoman Laurel Greatrix said FlipKey worked
closely with theTripAdvisor spokeswoman Laurel Greatrix said
FlipKey worked closely with theTripAdvisor spokeswoman Lau
rel Greatrix said FlipKey worked closely with the
city to comply with the regulations, and noted that it offers a va
riety ofcity to comply with the regulations, and noted that it off
ers a variety ofcity to comply with the regulations, and noted th
at it offers a variety of
accommodations in San Francisco, such as hotels, hostels and B
&Bs.accommodations in San Francisco, such as hotels, hostels a
nd B&Bs.accommodations in San Francisco, such as hotels, host
els and B&Bs.

Data for HomeAway and VRBO were not immediately available.
Data for HomeAway and VRBO were not immediately available
. Data for HomeAway and VRBO were not immediately availabl
e. In May 2016,In May 2016,In May 2016,
they had about 1,300 local listings, a they had about 1,300 local
listings, a they had about 1,300 local listings, a Chronicle inves
tigationChronicle investigationChronicle investigation found. fo
und. found.
“HomeAway remains committed to working through the law’s i
mplementation“HomeAway remains committed to working throu
gh the law’s implementation“HomeAway remains committed to
working through the law’s implementation
plan with the city and hope to continue our partnership on reaso
nable publicplan with the city and hope to continue our partners
hip on reasonable publicplan with the city and hope to continue
our partnership on reasonable public
policy and enforcement in the new year.” said spokesman Philip
Minardi.policy and enforcement in the new year.” said spokesm
an Philip Minardi.policy and enforcement in the new year.” said
spokesman Philip Minardi.
Airbnb and HomeAway sued San Francisco in 2016 over a strict
new law passedAirbnb and HomeAway sued San Francisco in 2
016 over a strict new law passedAirbnb and HomeAway sued Sa
n Francisco in 2016 over a strict new law passed
in June of that year. A U.S. district judge rejected the companie
s’ arguments thatin June of that year. A U.S. district judge rejec
ted the companies’ arguments thatin June of that year. A U.S. di
strict judge rejected the companies’ arguments that
their rights were being violated and ordered them to work with

San Francisco ontheir rights were being violated and ordered th
em to work with San Francisco ontheir rights were being violate
d and ordered them to work with San Francisco on
a registration system. Such registrations were part of the “Airbn
b law” enacted ina registration system. Such registrations were
part of the “Airbnb law” enacted ina registration system. Such r
egistrations were part of the “Airbnb law” enacted in
early 2015, but the requirement was widely ignored. Only about
1,800 hostsearly 2015, but the requirement was widely ignored.
Only about 1,800 hostsearly 2015, but the requirement was wide
ly ignored. Only about 1,800 hosts
registered.registered.registered.
San Francisco wants hosts to register to ensure compliance with
suchSan Francisco wants hosts to register to ensure compliance
with suchSan Francisco wants hosts to register to ensure compl
iance with such
requirements as hosts being permanent residents who do not ren
t entire homesrequirements as hosts being permanent residents
who do not rent entire homesrequirements as hosts being perma
nent residents who do not rent entire homes
for more than 90 days a year. The law seeks to prevent landlord
s from removingfor more than 90 days a year. The law seeks to
prevent landlords from removingfor more than 90 days a year. T
he law seeks to prevent landlords from removing
…
2/11/2019 How S.F.'s Airbnb listings skirt law, affect housing,

yet win fans - SFChronicle.com
https://www.sfchronicle.com/realestate/article/How-S-F-s-
Airbnb-listings-skirt-law-affect-5553235.php?cmpid=gsa-
sfgate-result 1/6
B I Z & T E C H B I Z & T E C H B I Z & T E C H // //
// R E A L E S TAT ER E A L E S TAT ER E A L E S TAT E
How S.F.'s Airbnb listings skirt law, affectHow S.F.'s Airbnb lis
tings skirt law, affectHow S.F.'s Airbnb listings skirt law, affect
housing, yet win fanshousing, yet win fanshousing, yet win fans
housing supply -
listings skirt the law, affect housing supply - yet find favorHow
mptu listings skirt the law, affect housing
supply - yet find favor
with travelers, hostswith travelers, hostswith travelers, hosts
Carolyn SaidCarolyn SaidCarolyn Said
p.m.Updated: Ju
p.m.
https://www.sfchronicle.com/author/carolyn-said/
sfgate-result 2/6
Thousands of San Franciscans have transformed their homes int
o impromptuThousands of San Franciscans have transformed the

ir homes into impromptuThousands of San Franciscans have tra
nsformed their homes into impromptu
inns using Airbnb, the website that lets people rent rooms or ho
uses to travelers.inns using Airbnb, the website that lets people
rent rooms or houses to travelers.inns using Airbnb, the website
that lets people rent rooms or houses to travelers.
These short-
term rentals haven't been an easy sell to landlords, housing acti
vistsThese short-
vistsThese short-
vists
and others who say they flout the law, violate leases, remove sc
arce housingand others who say they flout the law, violate lease
s, remove scarce housingand others who say they flout the law,
violate leases, remove scarce housing
stock, drive up rents and annoy neighbors. But the scale of Airb
nb's impact onstock, drive up rents and annoy neighbors. But th
e scale of Airbnb's impact onstock, drive up rents and annoy nei
ghbors. But the scale of Airbnb's impact on
San Francisco has been hard to measure -
until now.San Francisco has been hard to measure -
until now.San Francisco has been hard to measure - until now.
Although the company refuses to release numbers, a data analys
isAlthough the company refuses to release numbers, a data anal
ysisAlthough the company refuses to release numbers, a data an
alysis
commissioned by The Chronicle found almost 5,000 San Francis

co homes,commissioned by The Chronicle found almost 5,000 S
an Francisco homes,commissioned by The Chronicle found almo
st 5,000 San Francisco homes,
apartments, and private or shared rooms for rent via Airbnb. Tw
o-
thirds wereapartments, and private or shared rooms for rent via
Airbnb. Two-
thirds wereapartments, and private or shared rooms for rent via
Airbnb. Two-thirds were
entire houses or apartments, showing how far Airbnb has come f
rom its couch-
rom its couch-
rom its couch-
surfer origins, and contradicting its portrayal as a service for pe
ople who rent outsurfer origins, and contradicting its portrayal a
s a service for people who rent outsurfer origins, and contradicti
ng its portrayal as a service for people who rent out
a spare room and interact with guests.a spare room and interact
with guests.a spare room and interact with guests.
And 160 entire homes or apartments seem to be rented full time,
giving weight toAnd 160 entire homes or apartments seem to be
rented full time, giving weight toAnd 160 entire homes or apart
ments seem to be rented full time, giving weight to
arguments that the service is allowing landlords to flout strict re
ntal laws.arguments that the service is allowing landlords to flo
ut strict rental laws.arguments that the service is allowing landl
ords to flout strict rental laws.

Connotate Inc., a Web data harvesting firm, compiled the data fr
om Airbnb'sConnotate Inc., a Web data harvesting firm, compile
d the data from Airbnb'sConnotate Inc., a Web data harvesting f
irm, compiled the data from Airbnb's
website on May 19.website on May 19.website on May 19.
"In a city that has chronic housing shortages, the number of Air
bnb homes that"In a city that has chronic housing shortages, the
number of Airbnb homes that"In a city that has chronic housing
shortages, the number of Airbnb homes that
appear to not be available on the rental market is significant," s
aid Laura Teller,appear to not be available on the rental market
is significant," said Laura Teller,appear to not be available on t
he rental market is significant," said Laura Teller,
Connotate chief strategy officer.Connotate chief strategy officer
.Connotate chief strategy officer.
Here is a breakdown of findings:Here is a breakdown of finding
s:Here is a breakdown of findings:
Airbnb -
Heights mansion is the priciest listing on Airbnb - a graceful
the priciest listing on Airbnb - a graceful chateau in one of the
city's most opulent neighborhoods. Two-thirds of San Francisco
listings are for entire houses orcity's most opulent
neighborhoods. Two-thirds of San Francisco listings are for
entire houses orcity's most opulent neighborhoods. Two-thirds
of San Francisco listings are for entire houses or
apartments.apartments.apartments.
Photo: Leah Millis, The ChroniclePhoto: Leah Millis, The

ChroniclePhoto: Leah Millis, The Chronicle
sfgate-result 3/6
-- How many rentals? -- How many rentals? --
How many rentals? Airbnb had 4,798 properties listed in the cit
y. Almost two-
Airbnb had 4,798 properties listed in the city. Almost two-
Airbnb had 4,798 properties listed in the city. Almost two-
thirds - 2,984 - were entire houses or apartments.thirds - 2,984 -
were entire houses or apartments.thirds - 2,984 -
were entire houses or apartments.
Of the remainder, 1,651 were private rooms and 163 were share
d rooms. Dozens ofOf the remainder, 1,651 were private rooms
and 163 were shared rooms. Dozens ofOf the remainder, 1,651
were private rooms and 163 were shared rooms. Dozens of
shared spaces were in communal "hacker hostels" that offer cras
h space and ashared spaces were in communal "hacker hostels" t
hat offer crash space and ashared spaces were in communal "hac
ker hostels" that offer crash space and a
place to make tech-industry connections.place to make tech-
industry connections.place to make tech-industry connections.
-- How often?-- How often?--
How often? Critics fear that some Airbnb hosts run full-

time hotels, thus Critics fear that some Airbnb hosts run full-
time hotels, thus Critics fear that some Airbnb hosts run full-
time hotels, thus
reducing the city's housing supply and changing the character of
residentialreducing the city's housing supply and changing the
character of residentialreducing the city's housing supply and ch
anging the character of residential
neighborhoods.neighborhoods.neighborhoods.
Connotate could not determine how often properties were rented
out, nor if theyConnotate could not determine how often proper
ties were rented out, nor if theyConnotate could not determine h
ow often properties were rented out, nor if they
were available on the date it harvested the data. But, like a brea
d-
crumb trail,were available on the date it harvested the data. But,
like a bread-
crumb trail,were available on the date it harvested the data. But,
like a bread-crumb trail,
reviews left by visitors offer some insights on frequency of use.
(Not all visitorsreviews left by visitors offer some insights on f
requency of use. (Not all visitorsreviews left by visitors offer so
me insights on frequency of use. (Not all visitors
write reviews, so this underestimates usage.)write reviews, so th
is underestimates usage.)write reviews, so this underestimates u
sage.)
About two-
thirds of listings had fewer than 10 reviews, fitting Airbnb's por
trayalAbout two-

trayalAbout two-
trayal
of occasional use.of occasional use.of occasional use.
A quarter had 11 to 50 reviews. Most properties have been on th
e site for only aA quarter had 11 to 50 reviews. Most properties
have been on the site for only aA quarter had 11 to 50 reviews.
Most properties have been on the site for only a
couple of years, meaning that this group hosted up to twice a m
onth.couple of years, meaning that this group hosted up to twice
a month.couple of years, meaning that this group hosted up to t
wice a month.
However 6.4 percent - 307 listings -
had more than 50 reviews, implying heavy orHowever 6.4 perce
nt - 307 listings -
had more than 50 reviews, implying heavy orHowever 6.4 perce
nt - 307 listings - had more than 50 reviews, implying heavy or
constant visitor traffic.constant visitor traffic.constant visitor tr
affic.
These popular properties included 160 entire homes or apartmen
ts, 140 privateThese popular properties included 160 entire hom
es or apartments, 140 privateThese popular properties included
160 entire homes or apartments, 140 private
rooms and seven shared rooms.rooms and seven shared rooms.ro
oms and seven shared rooms.
-- -- --
Who hosts? Who hosts? Who hosts? The bulk of San Francisco'
s 3,785 hosts - 3,272, or 86.4 percent -

hadThe bulk of San Francisco's 3,785 hosts -
3,272, or 86.4 percent -
hadThe bulk of San Francisco's 3,785 hosts -
3,272, or 86.4 percent - had
a single listing, buttressing Airbnb's claim that most rent out the
ir own places.a single listing, buttressing Airbnb's claim that m
ost rent out their own places.a single listing, buttressing Airbnb'
s claim that most rent out their own places.
But the remaining 513 hosts control multiple properties.But the
remaining 513 hosts control multiple properties.But the remaini
ng 513 hosts control multiple properties.
sfgate-result 4/6
When broken down by properties, the presence of these multiple
hosts is moreWhen broken down by properties, the presence of
these multiple hosts is moreWhen broken down by properties, th
e presence of these multiple hosts is more
prominent.prominent.prominent.
A total of 1,526 properties - almost a third -
are controlled by people with two orA total of 1,526 properties
- almost a third -
are controlled by people with two orA total of 1,526 properties
- almost a third - are controlled by people with two or

more listings. The top 10 hosts collectively controlled 248 listin
gs.more listings. The top 10 hosts collectively controlled 248 lis
tings.more listings. The top 10 hosts collectively controlled 248
listings.
Some of these multiple-
listers were property managers handling Airbnb rentalsSome of
these multiple-
listers were property managers handling Airbnb rentalsSome of
these multiple-
listers were property managers handling Airbnb rentals
on behalf of hosts who want to avoid the hassle; some were peo
ple offering twoon behalf of hosts who want to avoid the hassle;
some were people offering twoon behalf of hosts who want to a
void the hassle; some were people offering two
different rooms in their homes.different rooms in their homes.di
fferent rooms in their homes.
In New York City, a Connotate study found evidence of large-
scale illegal hotels.In New York City, a Connotate study found
evidence of large-
scale illegal hotels.In New York City, a Connotate study found
evidence of large-scale illegal hotels.
The Chronicle didn't find that. However, some hosts with multip
le listings couldThe Chronicle didn't find that. However, some h
osts with multiple listings couldThe Chronicle didn't find that.
However, some hosts with multiple listings could
be treating a handful of units as more-
lucrative vacation rentals.be treating a handful of units as more-
lucrative vacation rentals.be treating a handful of units as more-
lucrative vacation rentals.

-- What does it cost?-- What does it cost?--
What does it cost? Citywide, entire homes or apartments averag
ed $226 a night, Citywide, entire homes or apartments averaged
$226 a night, Citywide, entire homes or apartments averaged $2
26 a night,
private rooms $116 and shared rooms $80. Whole houses ranged
from $337 aprivate rooms $116 and shared rooms $80. Whole h
ouses ranged from $337 aprivate rooms $116 and shared rooms
$80. Whole houses ranged from $337 a
night in Cow Hollow to $125 in Visitacion Valley.night in Cow
Hollow to $125 in Visitacion Valley.night in Cow Hollow to $1
25 in Visitacion Valley.
The priciest listing: a Pacific Heights mansion for $6,000 a nigh
t.The priciest listing: a Pacific Heights mansion for $6,000 a nig
ht.The priciest listing: a Pacific Heights mansion for $6,000 a ni
ght.
The cheapest: a shared downtown living room for $18.The chea
pest: a shared downtown living room for $18.The cheapest: a sh
ared downtown living room for $18.
-- Where are the listings?-- Where are the listings?--
Where are the listings? Airbnb's footprint spreads throughout S
an Francisco, Airbnb's footprint spreads throughout San Francis
co, Airbnb's footprint spreads throughout San Francisco,
ranging from the Great Highway to South Beach.ranging from th
e Great Highway to South Beach.ranging from the Great Highwa
y to South Beach.
The Mission had 681 listings, the equivalent of two Marriott Un
ion Squares.The Mission had 681 listings, the equivalent of two
Marriott Union Squares.The Mission had 681 listings, the equiv

alent of two Marriott Union Squares.
Western Addition/NoPa, SoMa and the Castro were also popular
locations.Western Addition/NoPa, SoMa and the Castro were al
so popular locations.Western Addition/NoPa, SoMa and the Cas
tro were also popular locations.
By contrast, the city's 34,000 hotel rooms are heavily clustered;
about 20,000 areBy contrast, the city's 34,000 hotel rooms are h
eavily clustered; about 20,000 areBy contrast, the city's 34,000
hotel rooms are heavily clustered; about 20,000 are
within a short walk of Moscone Center.within a short walk of M
oscone Center.within a short walk of Moscone Center.
Airbnb, valued at $10 billion -
more than Hyatt Hotels or Wyndham Worldwide -
says its business model, which helps regular people become "mi
cro-
cro-
cro-

sfgate-result 5/6
entrepreneurs," should not be regulated in the same way as hotel
s.entrepreneurs," should not be regulated in the same way as hot
els.entrepreneurs," should not be regulated in the same way as h
otels.
The company has grown rapidly since its mid-
2008 founding. Two years ago, itThe company has grown rapidl
y since its mid-
2008 founding. Two years ago, itThe company has grown rapidl
y since its mid-2008 founding. Two years ago, it
had 1,800 San Francisco listings, a number that has almost tripl
ed.had 1,800 San Francisco listings, a number that has almost tr
ipled.had 1,800 San Francisco listings, a number that has almost
tripled.
In fact, the number may have been higher just a few months ago
. Many localIn fact, the number may have been higher just a few
months ago. Many localIn fact, the number may have been high
er just a few months ago. Many local
hosts reportedly have removed listings after news of evictions a
nd codehosts reportedly have removed listings after news of evi
ctions and codehosts reportedly have removed listings after new
s of evictions and code
violations.violations.violations.
San Francisco lawmakers now are tackling how to regulate Airb
nb, VRBO,San Francisco lawmakers now are tackling how to re
gulate Airbnb, VRBO,San Francisco lawmakers now are tacklin
g how to regulate Airbnb, VRBO,
FlipKey and similar services, which violate the city's ban on ren

tals of less thanFlipKey and similar services, which violate the
city's ban on rentals of less thanFlipKey and similar services, w
hich violate the city's ban on rentals of less than
30 days.30 days.30 days.
Supervisor David Chiu has introduced legislation to legalize the
services whileSupervisor David Chiu has introduced legislation
to legalize the services whileSupervisor David Chiu has introdu
ced legislation to legalize the services while
…
San Francisco StateUniversity, College of
Business, Department of Hospitality and
Tourism Management
HTM 424 – Tourism Management
Assignment – Air BnB and otherMarket Sharing
Companies
Instructions: You are required to answer the
following questions. You should
save your answers in a Word document for
submission. Please do not repeat the
questions on your answer sheet. Instead, please
list the answers
numerically/sequentially by simply utilizing 1, 2, 3,
and 4. Each assignment must
have a cover page listing your name, the name
of the assignment, and the date.

The cover page does not count towards the word
count. For each assignment, you
are expected to answer the assigned questions in
your own words. Each
assignment paper should be at least 250 words.
Papers less than the
required 250 words will get zero. This does not mean
each question requires a
250-word response; rather, the total number of words
for answering the
questions must total more than 250 words.
Assignment - Read the assigned articles posted on
iLearn then answer the
questions/prompts below.
The sharing economy has become a bone of
contention as it has become a
disruptive forcein numerous industries, particularly
the taxi industry thanks to
Uber and Lyft, which has been protected from competition
by state and local
laws. Protectionism, as any Economics 101
student could attest, leadsto poor
services, lack of innovation and poor pricing.
Companies like Lyft and Uber have
created competition where it was essentially
was non-existent and the existing taxi
industry has been forced to respond to the altered
competitive landscape.
The philosophical debate over Airbnb otheraspects of
the sharing economy
typically divide along the political (red and blue)
axis. Free market advocates have
quickly fallen in love with thesecompanies, seeing

them as the marketplace in
action, while progressives tend to deride the
“sharing” economy as an attack on
laborunions that will choke off local government
from the critical tax revenue it
garners from traditional hotels. Unsurprisingly,
Hillary Clinton has promised to get
government heavily involved in regulating different
aspects of sharing economy
companies.
Readings
• Please read the assigned articles posted on iLearn
regarding AirBnB and
othermarket sharing companies.
Questions/prompts
Free market advocates have quickly fallen in love
with the market sharing
companies (e.g., AirBnB, Uber), seeing them as
the marketplace in action, while
progressives tend to deride the “sharing” economy as
an attack on laborunions
that will choke off local government from the critical
tax revenue it garners from
traditional hotels.
1. Defend your position: Are you for or against market
sharing

companies/economies (free market or progressive)
Why or why not?
2. Is market sharing companies and economies
good or bad for tourism
and travelers? Why or why not?
Please defend your position and opinion with facts
and figures. Provide
referencesas necessary.
Sample Reflection Paper Format/Outline
• The following outline should be used for your
reflection paper. You are not
required to use the titles(e.g., BriefIntroduction,
Body, etc.) but should use
this general format when writing your paper.
• Cover Page
o Title of paper to include the following:
o Reflection Paper Title
o Student Name and ID
o Course Title and Section
o Professor Name and Title
o Due Date of Submission
• Main Paper
o Brief Introduction
§ Introduce the topicto the reader and summarize
your

reflection of this topic/article.
o Body
§ Address the following prompts as prescribed in
the
assignment. Include 3-4 examples for each prompt
o Conclusion
§ Conclude the reflection paper by summarizing
your comments
and main points to the reader.
o References
§ Include any referencesthat were used in your reflection
paper
including the main authors. Use APA style.
Plagiarism - Unless noted otherwise,
assignments will be submitted through
Turnitin.com. It is strongly encouraged that you
provide citations for any
source/reference that is used in your writing.
Turnitin.com provides both a “match”
analysis and grammar analysis. Your“match” rating
must be under 20% and ideally
under 15%.Points will be deducted for high match
ratings, including failure of the
assignment.

Reflection Paper Assignment Title Goes Here
John Q Student
HTM424 – Tourism Management
ID: 123456789
San Francisco State University
Faculty: Dr. Andrew Walls
January 1, 2000

1. Sed ut perspiciatis unde omnis iste natus error sit voluptatem
accusantium
doloremque laudantium, totam rem aperiam, eaque ipsa quae ab
illo inventore
veritatis et quasi architecto beatae vitae dicta sunt explicabo.
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voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed
quia consequuntur
magni dolores eos qui ratione voluptatem sequi nesciunt. Neque
porro quisquam est,
qui dolorem ipsum quia dolor sit amet, consectetur, adipisci
velit, sed quia non
numquam eius modi tempora incidunt ut labore et dolore
magnam aliquam quaerat
voluptatem. Ut enim ad minima veniam, quis nostrum
exercitationem ullam corporis

suscipit laboriosam, nisi ut aliquid ex ea commodi consequatur?
Quis autem vel eum
iure reprehenderit qui in ea voluptate velit esse quam nihil
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velit, sed quia non
Quis autem vel eum
illum qui dolorem eum fugiat quo voluptas nulla pariatur
2. Sed ut perspiciatis unde omnis iste natus error sit voluptatem
accusantium
doloremque laudantium, totam rem aperiam, eaque ipsa quae ab
illo inventore
veritatis et quasi architecto beatae vitae dicta sunt explicabo.
Nemo enim ipsam

voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed
quia consequuntur
magni dolores eos qui ratione voluptatem sequi nesciunt. Neque
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velit, sed quia non
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illum qui dolorem eum fugiat quo voluptas nulla pariatur.

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