The Park City Council delayed a decision on code amendments targeting fractional ownership at a meeting in June. The proposed rules its considering would prohibit the practice in specific parts of the city, including Thaynes Canyon Drive, where the Pacaso-owned home is located.
The council may still pass new restrictions, which means the Thaynes Canyon home owned by Pacaso would no longer work for their purposes.
Ahead of any council decision, Pacaso’s 5,000 square-foot luxury home on Thaynes Canyon Dr is now listed at $7.7 million. Pacaso purchased the home for the same price earlier this year, according to a multiple listing service.
The company was previously trying to sell it to eight separate parties for $1.1 million apiece. Each of those owners would then be able to use the home 44 days a year.
Founded in 2020 by former Zillow executives, Pacaso sets up an LLC and offers property management services to those that purchase a share of their homes.
Owning property through a limited liability company, or LLC, is not new. However, as the use has proliferated amid Pacaso’s rise, so have complaints from neighbors over nuisances associated with short-term stays.
Pacaso Corporate Communications Director Brian McGuigan told KPCW the company is stepping away from the Thaynes Canyon Dr. property as a “gesture of goodwill.”
He also said that fractional ownership has a promising future in Park City and the company is continuing to engage with the city council.
Some residents have accused the company of rebranding timeshares. Park City Board of Realtors CEO Jamie Johnson disagrees and told KPCW that it’s a different product.
“These families that are purchasing these fractional ownership are literally investing millions of dollars,” Johnson said. “These are not $100,000 units like a timeshare would be.”
Johnson said Pacaso’s model increases use of second homes and that it is her job to protect property owners.
“We are definitely in support of the community as a whole, and want individuals to love where they live,” she said. “But, we also are very much in favor of property rights when it comes to fractional ownership.”
The company has faced pushback in resort communities across the country. On Monday, Pacaso announced it had formed a new government advisory board to help inform the firm’s actions on housing policy, community engagement and growth.
Members include Denver Mayor Michael Hancock and Austin Mayor Steve Adler.
The city council is set to take up potential restrictions again in October.
Pacaso Public Affairs Manager Sarah Filosa has said the company is pausing buying any more Park City properties until the City Council wraps up any new amendments or restrictions.
Anyone applying for a fractionalized home in the meantime must comply with the proposed rules – state law requires pending ordinances be followed for 180 days.