Seattle may slap new rules on Airbnb to ease the rental crunch

Headline, seattletimes.com, 5/31/2016 http://www.seattletimes.com/seattle-news/politics/seattle-may-slap-new-rules-on-airbnb-to-ease-rental-crunch/

Consider this sequence of hypothetical events.

  1. Jim Dancer is a terrific home cook. He is married to Jane Dancer, who has made a hobby of exploring wine and matching the perfect wine to Jim’s culinary creations.  Every two weeks or so, they invite their friends Bill and Joe Beamer to join them.  Bill and Joe start to feel a little guilty about enjoying such great food without contributing anything.  After a few meals with Jim and Jane, they offer to bring the wine.
  2. They try this arrangement for a couple of weeks, but it soon becomes evident that Bill and Joe do not have quite the taste in wine that Jim’s cooking requires. After an awkward conversation, the couples decide that it would be better if Bill and Joe contributed some cash and let Jane buy the wine.
  3. Several months later, another couple in the neighborhood, Peter and Moira, hears about Jim’s cooking and Jane’s wines and asks to be included. Jim, Jane, Bill, and Joe decide that Pete and Moira can join them for dinner by contributing something toward the food and wine.
  4. A month after that, Pete and Moira have some friends visiting from out of town and ask to include them in an upcoming dinner gathering. They provide some cash and the group grows to eight.
  5. When the friends go back home to Salt Lake City, they tell their friends about the fabulous food and wine they had at Jim and Jane’s house. Those friends start sending emails to Jim and Jane asking if they can reserve seats at Jim and Jane’s table for an upcoming meal.
  6. Jim gets tired of answering emails when he could be preparing menus, sourcing his ingredients, and prepping his meals. He sets up a webpage where guests can sign up for upcoming meals.  Reservations are on a first-come, first-served basis.  Demand spreads beyond Salt Lake City, if you can imagine it.  In fact, after a while there are so many requests that Jim and Jane are welcoming paying guests four or five days a week.
  7. This has been going on for six months when Jim and Jane realize that the monetary contributions they are receiving cover the cost of food and wine but don’t really compensate them for their time and effort. They decide to increase their prices and before long they are making a profit on their operation.  They even hire some local neighborhood teenagers to help them with service and cleanup.
  8. Word has gotten out about Jim and Jane’s hospitality arrangement. Scores of talented home cooks and wine lovers across the city start inviting paying guests in for a meal.

I have some questions, purely speculative.  At which point in this sequence do the following things happen?

The Seattle Association of Restaurants (name invented) contacts a favorite City Council member to demand that “Jim and Jane” operations be regulated as a restaurant.  Note, they don’t demand that they be released from the burden of regulation, only that others be subjected to it.

Local 729 of the International Amalgamated Brotherhood of Restaurant Workers (name invented) contacts a favorite City Council member (with several to choose from) to demand that “Jim and Jane” operations are stealing jobs from union members and have to be shut down or required to replace their scab teenage workers with certified union workers and to hire certified cooks and wine stewards.

A Seattle City Council member proposes an ordinance to require sensible regulation of “Jim and Jane” style operations.  Requirements would include liability insurance, a liquor license, spot visits by Health Department inspectors, food safety training for all personnel who work in the business, a business license, a posting in a prominent place of the business license and a schedule of all applicable charges that diners will incur, along with the phone number and email address of the health department and the consumer affairs department to facilitate the lodging of complaints.

The mayor announces publicly that the time has come to end the practice of unlicensed and unsafe food service facilities that exploit out of town visitors and steal jobs from honest hardworking Seattle residents who play by the rules.

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