The City Council is moving closer than it's ever been toward a resolution in the middle ground between those who want legalization of transient rentals and those steadfastly against any visitor-oriented use of residential property.

That's a promising development, although Bill 7, the current legislation under review, still needs further restrictions before city officials should admit new legal bed-and-breakfasts in residential areas.

For example, some limit should be imposed to restrict the number of B&Bs allowed in a community. There's precedence for this in the city's land use laws — for example, keeping meeting places in industrial zones at least 1,000 feet apart.

Also, there should be a means of public notification of any application for a conditional use permit for a B&B. Neighbors need a chance to voice their concerns and specific problems that could complicate an additional B&B operation.

Finally, even with the passage of Bill 7 in any form, the council's job won't be done. There's also the issue of the more intrusive vacation rentals. The city must find ways to better enforce the ban on new ones.

A B&B is less of a neighborhood threat because the owner-operator must be on premises, whereas vacation rentals are unsupervised. It's difficult to hold someone accountable for noise or other violations with no management on site.

While critics contend that neighborhoods should comprise only long-term dwellings, some reasonable mix of residents and visitors could boost the local economy without destroying the neighborhood.

There's clearly a demand for accommodations that provide a more authentic Isle experience than what a conventional hotel provides.

The solution — as always in land-use debates — is to find the right balance. Communities worldwide have managed to find it, and there's no good reason why Hawai'i, despite concerns about the shortage of land and housing space, couldn't do the same.

Bill 7 needs work. But it is a promising starting point toward settling this issue at last.