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PROPOSAL DETAILS: <br />The seven code sections listed below are under review. The draft ordinance attached contains the complete <br />language and underlined revisions. <br />•105.12.110 <br />•105.12.500 <br />•105.12.620 <br />•105.12.710 <br />•105.12.780 <br />•105.12.870 <br />•105.12.1040 <br />PUBLIC HEARING: <br />A public hearing was published in the City’s official newspaper on April 3rd, 2026. Below is a summary of the <br />formal public hearing notice comments received: <br />Joyce Kelch (4855 Keats Ave N) provided written comments in opposition to the ordinance and has concerns <br />regarding housing affordability, neighborhood character, public nuisances, and safety. She also spoke about loss <br />of staff time, loss of neighborhood character, noise, parking, and safety issues. <br />Joan Ziertman (5761 Keats Ave N) provided written comments in opposition to the ordinance and has concerns <br />regarding staff time, housing stock, and State Building Code. She also spoke about Stillwater’s license process. <br />Ann Weiland (Address not provided) provided written comments in opposition to the ordinance and has <br />concerns regarding living standards. She also provided comments regarding trust in government. <br />George Crocker (5093 Keats Ave N) provided a written comment in support of Joyce Kelch’s comments. <br />Peter Kastler (9130 55th St N) spoke in support of the ordinance and as a bed and breakfast owner. He provided <br />comments regarding his positive experiences with guests, the income from the business, and supporting the R3 <br />designation. He also suggested requiring owners to live in Lake Elmo, limiting licensees to one license, and <br />reducing the license fee. <br />Douglas Lovett (4370 Stillwater Blvd) – spoke in support of the ordinance and as a bed and breakfast owner. He <br />provided comments on utilizing the business income to repair his property. <br />PLANNING COMMISSION: <br />The Planning Commission reviewed this text amendment at their April 13th, 2026 meeting. The Commission <br />voted to recommend approval of the amendments as presented by City Staff (Vote 4-3). <br />The Planning Commission discussed the proposed license fee. Staff reviewed Stillwater’s fees, which include a <br />3% lodging tax. Staff project that after three years, the total fees for Stillwater rentals would exceed the city’s <br />proposed fee of $1500. <br />Lake Elmo Stillwater <br />License fee for three-year license <br />term <br />$1500 $600 license fee <br />+3% Lodging Tax on all lodging <br />associated income