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1 <br />STAFF REPORT <br />DATE: 11/12/2025 <br />Workshop <br />TO: City Council <br />FROM: Miranda Moulis, Planning Assistant <br />AGENDA ITEM: Short-Term Rentals Discussion <br />REVIEWED BY: Jason Stopa, Community Development Director <br />Ashley Monterusso, City Planner <br />Sophia Jensen, Senior City Planner <br />CORE STRATEGIES: <br />☐Vibrant, inclusive, connected community ☐Efficient, reliable, innovative services <br />☒Responsive, transparent, adaptive governance ☐Balanced Finances now and future <br />☒Managed Growth ☐Resilient Infrastructure <br />BACKGROUND: <br />Current city code prohibits the use of short-term rentals (30 days or less) which are not owner- <br />occupied residences. As part of city code housekeeping earlier this year, staff proposed removing <br />the requirement that Bed and Breakfasts (short-term rentals) be owner-occupied. The amendment <br />went before the Planning Commission on January 27, 2025, and was not recommended for <br />approval. The item was removed from the housekeeping amendment to be further researched by <br />staff. <br />ISSUE BEFORE THE CITY COUNCIL: <br />Does the City Council want staff to move forward with an ordinance proposal amending the <br />zoning code to include short-term rentals? <br />Where should they be located? <br />Should there be a limit? <br />Should they be regulated as a R-1 or R-3 occupancy? <br />PROPOSAL DETAILS/ANALYSIS: <br />City staff contacted Washington County, the licensing jurisdiction for lodging establishments, <br />about their licensing requirements. Short-term rentals meet the definition of a hotel/motel under <br />Minnesota State Statute and must be licensed by Washington County. The County was delegated <br />this authority by the Minnesota Department of Health and adopted their lodging establishment <br />ordinance in 2010. The County works with cities to share plan review submissions, notify <br />applicants of local restrictions, and notify local fire inspectors. The County performs their own <br />inspections of all lodging establishments which they license. <br />Fire Classification & Building Type