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CITY OF LAKE ELMO, COUNTY OF WASHINGTON, STATE OF MINNESOTA
<br />ORDINANCE NO. 2026-06
<br />AN ORDINANCE AMENDING THE LAKE ELMO CITY CODE OF ORDINANCES BY AMENDING TITLE 105, ZONING PERTAINING TO SHORT TERM RENTAL PROPERTIES & REVISING THE 2026 FEE SCHEDULE FOR THE CITY OF LAKE ELMO
<br />SECTION 1. The City Council of the City of Lake Elmo hereby ordains that Title 105, Section 105.12.110
<br />of the City’s Code of Ordinances is hereby amended by changing the following section (Proposed lan-
<br />guage is underlined; deleted language is shown with strikethrough):
<br />b) Use types and classifications.
<br />1) Residential and related uses.
<br />a. Family living.
<br />Live-work unit means a dwelling unit in combination with a shop, office, studio, or other work space within
<br />the same unit, where the resident occupant both lives and works.
<br />Manufactured home park means a development on a site under a single ownership which consists of two or
<br />more spaces for the placement of manufactured homes for dwelling or sleeping purposes, regardless of
<br />whether or not a fee is charged for the utilization of such space.
<br />Multifamily residential means a building containing three or more dwelling units served by one or more shared
<br />entrance. The term “multifamily residential” includes cooperative apartments and condominiums, but not
<br />condominium-hotels. (See condominium and condominium-hotel under LEC 1.08.)
<br />Secondary dwelling means a residential dwelling unit, but not a manufactured home, located on the same lot
<br />as a single-family dwelling unit, either within the principal structure or above a detached garage.
<br />Short-term rental (STR) means the use of a dwelling unit, or any portion thereof, rented for a period of at least
<br />one night and less than 30 consecutive days. Each short-term rental is limited to a total of five guest rooms
<br />and 10 guests. Hotels, motels, bed and breakfasts, and other land uses explicitly defined and regulated
<br />separately are not considered to be short-term rentals.
<br />Single-family, attached, or townhomes, means a building containing independent dwelling units adjacently
<br />attached to each other, each with separate exterior entrances at the ground floor. Single-family attached
<br />must contain more than two units, but not to exceed eight total units. The units may be on the same, or
<br />separate, lots.
<br />Single-family, detached, means a building containing only one dwelling unit, surrounded by landscape area
<br />or yards on all sides.
<br />Two-family or duplex means a building on a single lot or adjacent lots containing two dwelling units, either
<br />side-by-side or stacked vertically.
<br />
<br />SECTION 2. The City Council of the City of Lake Elmo hereby ordains that Title 105, Section 105.12.500
<br />of the City’s Code of Ordinances is hereby amended by changing the following section (Proposed lan-
<br />guage is underlined; deleted language is shown with strikethrough):
<br />a) Group home. A group home is a specific use type located within a single-family dwelling, and therefore shall
<br />meet all zoning standards applicable to single-family dwellings, including setbacks, lot area, lot coverage, and
<br />off-street parking. License capacity shall not exceed six persons per facility, plus support staff.
<br />b) Group residential facility, halfway house.
<br />1) In residential districts, the facility shall occupy a residential building type permitted within the district where
<br />it is located, and shall meet all zoning standards applicable to that building type.
<br />2) On-site services shall be for residents of the facility only.
<br />c) Congregate housing (assisted living).
<br />1) To the extent practical, all new construction or additions to existing buildings shall be compatible with the
<br />scale and character of existing building and surrounding neighborhood.
<br />2) The site shall contain a minimum of 50 square feet of green space per resident, consisting of outdoor seating
<br />areas, gardens and/or recreational facilities. In cases of unique circumstances, the city may consider public
<br />parks or plazas within 300 feet of the site to meet this requirement. It is the responsibility of the applicant to
<br />demonstrate why the green space cannot be located on site.
<br />3) An appropriate transition area between the use and adjacent property may be required, to include landscap-
<br />ing, screening and other site improvements consistent with the character of the neighborhood.
<br />d) Semi-transient accommodations (boardinghouses, roominghouses, etc.).
<br />1) The operator shall submit a management plan for the facility and a floor plan showing sleeping areas, emer-
<br />gency exits and bathrooms.
<br />2) All new construction or additions to existing buildings shall be compatible with the scale and character of
<br />the existing building and surrounding neighborhood.
<br />3) An appropriate transition area between the use and adjacent property may be required, to include landscap-
<br />ing, screening and other site improvements consistent with the character of the neighborhood.
<br />e) Temporary health care dwellings. Pursuant to authority granted by M.S.A. § 462.3593, subd. 9, the city opts-
<br />out of the requirements of M.S.A. § 462.3593, which defines and regulates temporary family health care dwell-
<br />ings. By exercising this authority, the city is prohibiting the use of temporary family health care dwellings within
<br />the city.
<br />f) Short-term rentals (STR).
<br />1) License required. No person, partnership, non-profit, or other business entity shall operate a short-term
<br />rental dwelling or short-term rental dwelling unit in the city without a license pursuant to this section. The
<br />license application must be submitted on a form provided by the city.
<br />a. Property contact information. The license applicant must provide 24-hour contact information for the
<br />following people:
<br />1. At least one owner of the rental dwelling property.
<br />2. At least one manager, if different from the owner, who is responsible for managing the property in com-
<br />pliance with this and any other Code requirement pertaining to the short-term rental dwelling. The manager
<br />must reside within 30 miles of the short-term rental property; or
<br />3. If the owner uses a property management company for management of the short-term rental dwelling,
<br />the name and contact information of the person at the property management company responsible for
<br />managing the short-term rental dwelling.
<br />b. Fees. There shall be a licensing fee as established by the city’s fee schedule. All fees shall be charged to
<br />and payable by the owner.
<br />c. Inspection report. The application must be accompanied by a satisfactory city inspection report signed by
<br />the building official. The property shall be inspected annually during the three year term.
<br />d. License term. The term of the license is three calendar years. A license renewal application must be sub-
<br />mitted to the city prior to the expiration date. The license expires on November 1st.
<br />e. Changes in ownership or dwelling unit. A license is non-transferable. If there is a change in ownership of
<br />the short-term rental dwelling or short-term rental dwelling unit, a new license is required. If changes are
<br />made in the number or type of units, the agent or property manager, the licensee shall file an application to
<br />amend the rental license. Depending on the nature of the changes, the city may require a new property in-
<br />spection. Each unit used as a short-term rental property shall have its own short-term rental license.
<br />f. Responsibility for acts of the manager. Licensees and owners are responsible for the acts or omissions of
<br />any manager as it pertains to the short-term rental dwelling.
<br />g. Exemptions. This section does not apply to, and no short-rental license is required for the following:
<br />1. Hotels or motels;
<br />2. Hospitals;
<br />3. Bed and breakfasts, which are subject to requirements in Section 105.12.570;
<br />4. State-licensed residential care facilities;
<br />5. Nursing homes or assisted living facilities; and
<br />6. Rental dwellings which are rented for a period exceeding 30 consecutive days.
<br />2) Standards for licensing.
<br />a. STR license cap. For all zoning districts where short-term rental dwellings are allowed, no more than 20
<br />licenses shall be active at one time.
<br />b. Homeowners’ associations (HOAs) opt-in. In zoning districts where short -term rental dwellings are al-
<br />lowed and an HOA exists, the HOA shall opt-in prior to the city accepting a short-term rental license appli-
<br />cation.
<br />c. Performance standards.
<br />1. Zoning. A short -term rental shall only be allowed in specific zoning districts as set forth in LEC 105.12.
<br />(620, 710, 780, 870, and 1040).
<br />2. Parking requirements. All short-term rentals must provide at least one off-street parking space per bed-
<br />room. However, no more than four off street parking spaces per short-term rental dwelling unit will be
<br />required, regardless of the number of bedrooms. All guest parking for a short-term rental dwelling or short--
<br />term rental dwelling unit must be on a durable driveway or parking surface that is located on the property.
<br />3. Guest rooms. The number of rooms being used for short-term rental purposes in any building shall not
<br />exceed five.
<br />4. Signage. No additional signage shall be provided.
<br />5. The operator shall carry liability insurance, and shall provide proof of such insurance to the city upon
<br />request.
<br />d. Maintenance Standards
<br />1. It is the responsibility of the licensee to ensure that every short-term rental dwelling is maintained in
<br />compliance with all city ordinances and state and federal laws. A violation of any of the following City Code
<br />titles or chapters constitutes a violation of this chapter and a public nuisance:
<br />i. Building Regulations Code (Chapter 105.08);
<br />ii. Zoning Code (Chapter 105.12);
<br />iii. Animals Code (Chapter 9.2);
<br />iv. Nuisances (Chapter 9.28);
<br />v. International Property Maintenance Code (Chapter 105.04-XVI); and
<br />vi. Solid Waste (Chapter 5.12).
<br />2. Inspections. The building official, fire chief, sheriff, and their respective representatives are authorized
<br />inspectors who may enter short-term rental dwellings for purposes of making inspections reasonably nec-
<br />essary to enforce this chapter. All authorized inspectors have the authority to enter any short-term rental
<br />dwelling at all reasonable times with permission of the owner, occupants, or manager. All short-term rental
<br />dwellings shall be inspected at least once per calendar year, and authorized inspectors may perform ad-
<br />ditional inspections as needed to enforce this chapter. The licensee is responsible for scheduling the in-
<br />spection and notifying any existing guest of the inspection. The licensee must provide access to the re-
<br />questing city official at the date and time of the scheduled inspection. If any owner, owner’s agent, or oc-
<br />cupant of a short-term rental dwelling or short-term rental dwelling unit fails or refuses to permit entry to
<br />a short-term rental dwelling or short-term rental dwelling unit for an inspection pursuant to this section, the
<br />inspector may seek an administrative search warrant authorizing such inspection. Failure to provide access
<br />for any reason may result in a re-inspection fee, in addition to any other sanctions imposed for noncompli-
<br />ance, such as revocation or suspension of the license.
<br />3. Access by occupant. Each occupant of a short-term rental dwelling shall give the licensee, manager, or
<br />authorized city official access to any part of such short-term rental dwelling at reasonable times for the
<br />purpose of inspection which is necessary to comply with the provisions of this section.
<br />4. Violations. A violation of this section is a misdemeanor. However, the city may use alternative enforce-
<br />ment methods, including suspension, revocation, or denial of a license.
<br />3) Denial, suspension, or revocation of license.
<br />a. Any short-term rental license may be denied, suspended, or revoked for one or more of the following
<br />reasons:
<br />1. There have been at least three substantiated and relevant complaints or violations of this section relating
<br />to the short-term rental within a 12-month period;
<br />2. The property does not comply with a health, building, or building maintenance code, or other provisions
<br />of the City Code or state law;
<br />3. The licensee has failed to pay the license fee or inspection fees that are required for the short-term rental;
<br />4. The licensee has made fraudulent statements or misrepresentations in the license application, investiga-
<br />tion of the license application, or in any information required by this section to be provided to the city;
<br />5. The licensee has been operating or allowing the short-term rental property to be used in such a manner
<br />as to constitute a breach of the peace, a menace to the health, safety, and welfare of residents or the
<br />public, or a disturbance of the peace, comfort or safety of the residents or the public, upon recommenda-
<br />tion of the sheriff;
<br />6. The licensee has been operating the short-term rental property in a manner that is unauthorized or be-
<br />yond the scope of the license granted;
<br />7. The licensee’s rental license to operate another short-term rental dwelling in the City of Lake Elmo or in
<br />another jurisdiction has been denied, revoked, or suspended within the past year;
<br />8. Failure by the licensee to schedule or allow inspections of the licensed premises for the purpose of en-
<br />suring compliance with short-term rental licensing requirements, City Code requirements, state building
<br />codes, or other applicable state or federal law;
<br />9. Failure by the licensee to continuously comply with all conditions required in the approval of the license;
<br />10. Real estate taxes or city fees for the short-term rental property are delinquent;
<br />11. Violation of any regulation or provision of the City Code applicable to the activity for which the license
<br />has been granted, or any regulation or state or federal law that may be applicable;
<br />12. Failure by the licensee to actively pursue the removal of guests who have violated the provisions of the
<br />City Code;
<br />13. Failure by the licensee to cooperate with the city in identifying individuals with a lawful right to occupy
<br />the short-term rental dwelling or to be present on the short-term rental property; or
<br />14. Other good cause as determined by the city council.
<br />b. The city council may revoke a license or suspend a license for a set period of time or until violations of
<br />City Code, or state or federal law are corrected and, in addition, impose a criminal penalty for each violation
<br />or impose a combination of these sanctions.
<br />c. Hearing. The council or its designee must hold a hearing to deny, suspend or revoke a license or to consid-
<br />er other actions against the licensee. Denial, suspension, or revocation hearings shall be conducted pursuant
<br />to City Code Section 3.04.010. It is not necessary that criminal charges be brought in order to support a sus-
<br />pension or revocation of a license violation nor does the dismissal or acquittal of such a criminal charge
<br />operate as a bar to license suspension or revocation.
<br />1. Temporary suspension. The city council may temporarily suspend a license pending a hearing on the
<br />suspension or revocation when, in its judgment, the public health, safety, and welfare is endangered by the
<br />continuance of the licensed activity.
<br />2. Following the hearing, the council may revoke or suspend the license for all or any part of the licensed
<br />premises, may stay the revocation or suspension upon such terms and conditions as it deems reasonable
<br />and necessary to accomplish the purposes of this section, or grant or continue the license. The decision
<br />by the city council following a hearing is final. Upon denial, revocation or nonrenewal of a license, the owner
<br />may not reapply for a license for a period of six months. Upon expiration of the six-month period, the ap-
<br />plicant must re-apply for a new license.
<br />d. Appeal of decision to deny or not renew license. If the community development director denies or does not
<br />renew a license, the licensee shall be notified in writing, specifying the reasons for denying or not renew-
<br />ing the license. If the licensee corrects the conditions leading to the denial or non-renewal within seven days,
<br />the community development director shall issue the license. A licensee whose license has been denied or not
<br />renewed by the community development director may appeal the decision by filing with the community de-
<br />velopment director a written notice of appeal within seven days of receiving notice of the decision. The hear-
<br />ing will be conducted pursuant to City Code Section 3.04.010.
<br />4) Summary Action
<br />a. Emergency. When the conduct of any owner or owner’s agent, representative, employee, or guest, or the
<br />condition of the short-term rental dwelling or short-term rental dwelling unit, or the property in or on which it
<br />is located, is detrimental to the public health, sanitation, safety and general welfare of the community, or
<br />guests of the short-term rental dwelling or short-term rental dwelling unit so as to constitute a nuisance, fire
<br />hazard or other unsafe or dangerous condition and thus give rise to an emergency, the building official has
<br />the authority to post individual short-term rental dwelling units or areas of the short-term rental dwelling as
<br />uninhabitable as the building official deems necessary.
<br />b. Posted to prevent occupancy. Whenever any short-term rental dwelling or short-term rental dwelling unit
<br />is found to be unfit for human habitation under paragraph (a) of this section, it shall be posted by the building
<br />official on the door of the short-term rental dwelling or short-term rental dwelling unit, whichever the case
<br />may be, to prevent further occupancy. No person, other than the building official or their designee, shall re-
<br />move or alter any posting. The building official will post the date the short-term rental dwelling or short-term
<br />rental dwelling unit must be vacated, and no person shall reside in, occupy or cause to be occupied that
<br />particular short-term rental dwelling or short-term rental dwelling unit until the building official permits it.
<br />5) No Warranty by City
<br />a. By enacting and undertaking to enforce this section, neither the city nor its council, agents or employees
<br />warrant or guarantee the safety, fitness or suitability of any short-term rental dwelling in the city. Licensees
<br />and occupants should take appropriate steps to protect their property, health, safety, and welfare.
<br />SECTION 3. The City Council of the City of Lake Elmo hereby ordains that Title 105, Section 105.12.620
<br />of the City’s Code of Ordinances is hereby amended by changing the following section (Proposed lan-
<br />guage is underlined; deleted language is shown with strikethrough):
<br />105.12.620 Permitted, Conditional, And Interim Uses
<br />Continued...
<br />Not Actual Size
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