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STAFF REPORT <br />DATE: April 13th, 2026 <br />Item#: 4a – Public Hearing <br />Motion <br />TO: Planning Commission <br />FROM: Jason Stopa, Community Development Director & Miranda Moulis, Planning Assistant <br />AGENDA ITEM: Zoning Text Amendment – Short Term Rentals <br />REVIEWED BY: Sophia Jensen, Senior Planner <br />CORE STRATEGIES: <br />☐ Vibrant, inclusive, connected community <br />☒ Responsive, transparent, adaptive governance <br />☒ Managed Growth <br />☐ Efficient, reliable, innovative services <br />☐ Balanced Finances now and future <br />☐ Resilient Infrastructure <br />BACKGROUND: <br />Current city code prohibits the use of short-term rentals (30 days or less) which are not owner-occupied <br />residences. As part of city code housekeeping last year, staff proposed removing the requirement that Bed and <br />Breakfasts (short-term rentals) be owner-occupied. The amendment went before the Planning Commission on <br />January 27th, 2025, and was not recommended for approval. The item was removed from the housekeeping <br />amendment to be further researched by staff. <br /> <br />Staff presented their findings to the City Council at their November 12th, 2025, workshop and to the Planning <br />Commission at their December 8th, 2025, meeting for feedback. Councilors were 3-1 in favor of permitting short- <br />term rentals with some restrictions. Commissioners were 4-2 against permitting short-term rentals. Concerns <br />included cost and difficulty of enforcement, negative impacts to safety and character of neighborhoods, and <br />housing market competition. Some benefits include protecting private property rights and adding specific <br />guardrails to City Code to aid in enforcement issues. Councilors and Commissioners discussed potential <br />restrictions including limiting the use by zoning district, requiring parking minimums, and limiting the number of <br />lodging rooms, the number of guests, and the total number of short-term rentals within the City. The topic was <br />briefly discussed during review of the Planning Commission 2026 work plan at the joint workshop on January <br />13th, 2026. Staff were directed to write an ordinance and bring it to Planning Commission and City Council for a <br />vote. <br /> <br />Staff met with Washington County Department of Public Health and Environment, which licenses lodging <br />facilities including short term rentals, to understand and coordinate with their licensing requirements. Staff met <br />with the cities of Stillwater, Cottage Grove, and Maplewood to discuss their experience with permitting short- <br />term rentals. Staff at these cities provided insight into licensing processes, restrictions and requirements, and <br />enforcement issues. Staff at each of these cities confirmed that other than unlicensed properties, <br />noncompliance and complaints are rare. Staff also met with the Washington County Sheriff to discuss their <br />response procedures for nuisance complaints and understand concerns specific to short-term rentals.