Loading...
HomeMy WebLinkAbout12-8-25Planning Commission Meeting 3880 Laverne Avenue North Monday December 8th, 2025 6:30 p.m. AGENDA Pledge Of Allegiance Approve Agenda Approve Minutes 11 -10 -25 Planning Commission Meeting Minutes 3 - PZ MINUTES 11 -10 -25.PDF Public Hearing N/A New/Unfinished Business Short Term Rental Discussion on short term rentals in response to the November City Council Workshop and evaluate next steps. 5A - STAFF REPORT SHORT TERM RENTALS.PDF 5A - SHORT TERM RENTALS PPT.PDF 2026 Work Plan Discuss proposed 2026 work plan for the Planning Commission. 5B - 2026 WORK PLAN PC.PDF 5B 2026 WORK PLAN PPT.PDF Communications/Updates City Council Updates RLS #132 - 12/2/2025 Upcoming Meetings December 22nd, 2025 - Canceled January 12th, 2026 Joint Workshop January 13th, 2026 - Tuesday Adjourn ***Note: Every effort will be made to accommodate person or persons that need special considerations to attend this meeting due to a health condition or disability. Please contact the Lake Elmo City Clerk if you are in need of special accommodations. 1. 2. 3. a. Documents: 4. a. 5. a. Documents: b. Documents: 6. a. i. b. i. ii. iii. 7. Planning Commission Meeting3880 Laverne Avenue NorthMonday December 8th, 20256:30 p.m.AGENDAPledge Of AllegianceApprove AgendaApprove Minutes11-10 -25 Planning Commission Meeting Minutes3 - PZ MINUTES 11 -10 -25.PDFPublic HearingN/ANew/Unfinished BusinessShort Term RentalDiscussion on short term rentals in response to the November City Council Workshop and evaluate next steps.5A - STAFF REPORT SHORT TERM RENTALS.PDF5A - SHORT TERM RENTALS PPT.PDF2026 Work PlanDiscuss proposed 2026 work plan for the Planning Commission. 5B - 2026 WORK PLAN PC.PDF 5B 2026 WORK PLAN PPT.PDF Communications/Updates City Council Updates RLS #132 - 12/2/2025 Upcoming Meetings December 22nd, 2025 - Canceled January 12th, 2026 Joint Workshop January 13th, 2026 - Tuesday Adjourn ***Note: Every effort will be made to accommodate person or persons that need special considerations to attend this meeting due to a health condition or disability. Please contact the Lake Elmo City Clerk if you are in need of special accommodations. 1.2.3.a.Documents:4.a.5.a.Documents:b.Documents: 6. a. i. b. i. ii. iii. 7. Planning Commission Meeting Minutes: 11/10/25 City of Lake Elmo Planning Commission Meeting City Council Chambers – 3880 Laverne Avenue North Minutes of Regular Meeting of November 10th, 2025 CALL TO ORDER: Commission Vice Chair Chars called to order the meeting of the Lake Elmo Planning Commission at 6:30 p.m. COMMISSIONERS PRESENT: Amend, Chars, Dunn, Rehkamp, Sarro, Vrieze COMMISSIONERS ABSENT: Bohlig, STAFF PRESENT: Community Director Jason Stopa, Senior City Planner Sophia Jensen, Finance Director Clarissa Hadler Pledge of Allegiance at 6:30 PM Approve Agenda: M/S/P: Vrieze / Amend made a motion to approve the agenda Vote: 6-0, motion carried unanimously Approve Minutes: M/S/P: Vrieze / Dunn made a motion to approve the 10-15-25 meeting minutes. Vote: 6-0, motion carried unanimously. Public Hearing: a) Capital Improvement Plan. To review and hear interested parties about the City’s 2025-2036 Capital Improvement Program (CIP). Finance Director Clarissa Hadler gave presentation and answered questions. M/S/P: Vrieze / Chars moved to open the public hearing at 6:49 PM. Vote: 6-0, motion carried unanimously. M/S/P: Vrieze / Amend moved to close the public hearing at 6:50 PM. 6-0, motion carried unanimously. M/S/P: Vrieze / Chars moved to recommend to the City Council that the 2025-2035 Capital Improvement Plan is consistent with the 2040 Comprehensive Plan. Vote: 6-0, motion carried unanimously. New/Unfinished Business b) Old Village Zoning and Future Land Use Discussion. To review and discuss the status of the Old Village since the survey and study conducted in May 2024 and future action items. Community Director Jason Stopa gave presentation and answered questions. Communications/Updates: a) PC Work Plan 2026 – 12/8/25 b) City Council Actions i. N/A c) Upcoming Meetings i. November 24th, 2025 ii. December 8th, 2025 Meeting adjourned at 7:08 PM. Respectfully Submitted, Diane Wendt Permit Technician 1 STAFF REPORT DATE: 12/08/2025 Regular Agenda Item # 5a TO: Lake Elmo Planning Commission FROM: Miranda Moulis, Planning Assistant AGENDA ITEM: Short-Term Rentals Discussion REVIEWED BY: Jason Stopa, Community Development Director CORE STRATEGIES: ☐Vibrant, inclusive, connected community ☐Efficient, reliable, innovative services ☒Responsive, transparent, adaptive governance ☐Balanced Finances now and future ☒Managed Growth ☐Resilient Infrastructure BACKGROUND: Current city code prohibits the use of short-term rentals (30 days or less) which are not owner- occupied residences. As part of city code housekeeping earlier this year, staff proposed removing the requirement that Bed and Breakfasts (short-term rentals) be owner-occupied. The amendment went before the Planning Commission on January 27, 2025, and was not recommended for approval. The item was removed from the housekeeping amendment to be further researched by staff. Staff presented their findings to the City Council at their November 12, 2025, Workshop and requested feedback from the Council on next steps. Councilors were 3-1 in favor of permitting short-term rentals with some restrictions. Councilors agreed that there should be guardrails in place to protect neighbors from nuisances such as noise and large gatherings. There were some concerns that enforcing regulations could be difficult and cost staff time. Other restrictions discussed included limiting the number of lodging rooms, the number of guests, and the total number of short-term rentals within the City. ISSUE BEFORE THE PLANNING COMMISSION: How does the Planning Commission want staff to proceed with an ordinance proposal amending the zoning code to include short-term rentals? Where should they be located? Should there be a limit? Should they be regulated as a R-1 or R-3 occupancy? PROPOSAL DETAILS/ANALYSIS: City staff contacted Washington County, the licensing jurisdiction for lodging establishments, about their licensing requirements. Short-term rentals meet the definition of a hotel/motel under 2 Minnesota State Statute and must be licensed by Washington County. The County was delegated this authority by the Minnesota Department of Health and adopted their lodging establishment ordinance in 2010. The County works with cities to share plan review submissions, notify applicants of local restrictions, and notify local fire inspectors. The County performs their own inspections of all lodging establishments which they license. Fire Classification & Building Type What is R-3 Occupancy? R-3 Occupancy is a classification under building codes. It typically includes residential structures where the occupants are primarily permanent in nature. It also includes certain care facilities, congregate living facilities, and transient lodging with five or fewer guest rooms and 10 or fewer occupants. What is R-1 Occupancy? R-1 occupancies contain sleeping units where the occupants are primarily transient in nature. It includes transient lodging with more than ten occupants, hotels, and motels. R-1 structures must meet fire code and ADA accessibility requirements. High-cost improvements would likely be necessary for an existing single-family home to meet these requirements. What are the Fire Code Requirements? Different occupancy classifications have different requirements under the MN State Fire Code. Transient lodging facilities with six or more guest rooms or more than ten occupants are classified as R-1. Some examples of R-1 requirements include, but are not limited to, portable fire extinguishers, fire suppression systems, and fire alarm systems. Washington County The County requires licenses for lodging facilities but does not make a determination on building occupancy. They alert local fire inspectors of new establishments. Local fire inspectors may determine what fire safety requirements are needed. Stillwater Stillwater has their own occupancy classification system for short-term rentals. The city classifies any short-term rental which is not owner-occupied as R-1, regardless of the number of guest rooms. Owner-occupied, single-family homes with five or fewer guest rooms and 10 or fewer occupants are classified as R-3. All other short-term rentals are classified as R-1 and must meet certain requirements including fire rated corridors and ADA features. Surrounding Cities City staff have reviewed the cities of Stillwater, Oak Park Heights, Woodbury, and Hugo. Stillwater has the most comprehensive standards on short-term rentals. Stillwater began permitting the use in 2017 and requires licenses to be approved by City Council. The City restricts the use to specific zoning districts and caps the number of licenses to 50 outside the Central Business District. Stillwater has specific standards on building maintenance, parking, and events. Stillwater also has a strict “three strikes you’re out” policy to resolve nuisances. The City also classifies any short-term rental that is not owner-occupied as R-1 occupancy, requiring that it meets certain fire code and accessibility standards. This occupancy rule effectively prohibits most single-family homes from being used as a short-term rental. 3 Oak Park Heights permits short-term rentals in all residential districts by a Conditional Use Permit. The City has specific standards on code compliance, parking, proximity to other short- term rentals, and dining. The City limits the occupancy to three transient guests per room and three guest rooms per dwelling unit. Oak Park Heights may suspend permits for violation of the CUP or nuisances. Woodbury and Hugo do not allow short-term rentals. FISCAL IMPACT: Allowing STRs would require staff time. Licensed nuisance properties would require considerable staff time. OPTIONS: • Request staff to create a city code amendment permitting short-term rentals in Lake Elmo • Do not change the current code. Planning Commission provides an update to Council. RECOMMENDATION: Staff recommend that the Planning Commission discuss and provide feedback on the topics described above. ATTACHMENTS: • Rental Ordinances Research Table Bed & BreakfastShort-Term RentalHotel/MotelState of MNSee Hotel/Motelhttps://www.health.state.mn.us/communities/environment/food/license/bedbreakfast.htmla building, structure, enclosure, or any part thereof used as, maintained as, advertised as, or held out to be a place where sleeping accommodations are furnished to the public and furnishing accommodations for periods of less than one week.Washington Countya private home where sleeping accommodations are offered for one or more nights for Transient Use to no more than ten (10) persons; in addition, a breakfast meal is served on the premisesany building, structure, enclosure, or any part thereof used as, maintained as, advertised as, or held out to be a place where sleeping accommodations are furnished to the public and furnishing accommodations for periods of less than one week.Lake Elmoa private, owner-occupied residence that contains no more than five guestrooms where lodging, with or without meals, is provided for compensation. Guest stays shall be limited to 30 days. a building having provision for nine or more guests in which lodging is provided with or without meals for compensation, and which is open to transient or permanent guests, or both, and where no provision is made for cooking in any guest room, and which ingress and egress to and from all rooms is made through an inside lobby or office supervised by a person in charge Bed & BreakfastShort-Term RentalHotel / MotelStillwateran owner occupied historic residential structure used as a lodging establishment where a guestroom or guestrooms are rented on a nightly basis and in which only breakfast is included as part of the basic compensation.a rental dwelling or rental dwelling unit that is offered to transient guests for a period of less than 30 consecutive days.a building containing rooms intended or designed to be used, or which are used, rented or hired out to be occupied, or which are occupied for sleeping purposes by guests and where a general kitchen and dining room are provided within the building or in an accessory building.WoodburyNo definitionany building containing six or more guest rooms intended or designed to be used or which are used, rented or hired out to be occupied or which are occupied for sleeping purposes by guests.Hugoan owner-occupied private home where accommodations are offered for one or more nights to transients, and a breakfast meal may be served to overnight guests.any temporary occupancy of a dwelling unit, a portion of a dwelling unit, or any other portion of a property or structure, which is offered for rent or occupancy to a transient as a dwelling for fewer than 30 consecutive calendar days. This term does not mean bed and breakfast as otherwise defined in this section.Oak Park HeightsA building other than a hotel, wherefore compensation, meals and lodging are provided to transient guests but not including a building providing these services to more than ten (10) persons, and where at least one (1) meal and/or beverageHotel: Any building or portion thereof occupied as the more or less temporary abiding place of individuals and containing six (6) or more guest rooms, used, designated, or intended to be used, let or hired out to be occupied, or which are occupied by six (6) or more individuals for compensation, whether the compensation be paid directly or indirectly.Motel: A building or group of detached, semi-detached buildings containing guest rooms or units, each of which has a separate entrance directly from the outside of the building, or corridor, with garage or parking space conveniently located to each unit, and which is designed, used or intended to be used primarily for the accommodation of transient guests traveling by automobile. ResortBoarding Establishment Lodging Establishment SourceState of MNa building, structure, enclosure, or any part thereof located on, or on property neighboring, any lake, stream, skiing or hunting area, or any recreational area for purposes of providing convenient access thereto, kept, used, maintained, or advertised as, or held out to the public to be a place where sleeping accommodations are furnished to the public, and primarily to those seeking recreation for periods of one day, one week, or longer, and having for rent five or more cottages, rooms, or enclosures.a food and beverage service establishment where food or beverages, or both, are furnished to five or more regular boarders, whether with or without sleeping accommodations, for periods of one week or more.(1) a building, structure, enclosure,or any part thereof used as,maintained as, advertised as, or heldout to be a place where sleepingaccommodations are furnished to thepublic as regular roomers, forperiods of one week or more, andhaving five or more beds to let to thepublicSec. 157.15 MN StatutesWashington Countyany building, structure, enclosure, or any part thereof, located on, or on property neighboring any lake, stream, skiing or hunting area, or any recreational area for purposes of providing convenient access thereto, kept, used, maintained, or advertised as, or held out to the public to be a place where sleeping accommodations are furnished to the public, and primarily to those seeking recreation for periods of one day, one week, or longer, and having for rent five or more cottages, rooms, or enclosures.a food and beverage service establishment where food or beverages, or both, are furnished to five (5) or more regular boarders, whether with or without sleeping accommodations, for periods of one week or morea building, structure, enclosure, or any part thereof use as, maintained as, advertised as, or held out to be a place where sleeping accommodations are furnished to the public as regular roomers, for periods of one week or more, and having five or more beds to let to the public.Lodging-Establishment-Ordinance-No-181Lake Elmoany structure or group of structures containing more than two dwelling units or separate living quarters designed or intended to serve as seasonal or temporary dwellings on a rental or lease basis for profit with the primary purpose of the structure or structures being recreational in nature. Uses may include a grocery for guests only, fish cleaning house, marine service, boat landing and rental, recreational area and equipment, and similar uses normally associated with a resort operation.a building other than a motel or hotel where, for compensation and by pre-arrangement for definite periods, meals or lodging are provided for three or more unrelated persons, but not to exceed eight persons.establishments in which lodging is provided and offered to the public for compensation, and which is open primarily to transient guests, as distinguished from semi-transient boarding or rooming facilities. Typical uses include hotels, motels, and inns.City of Lake Elmo : Municipal Codehttps://lakeelmo.municipalcodeonline.com/book?type=ordinances#name=CHAPTER_1.08_DEFINITIONS ResortBoarding EstablishmentLodging EstablishmentSourceStillwaterRoominghouse means any dwelling in which more than three persons either individually or as families are housed or lodged for hire, with or without meals. A boardinghouse or furnished room house shall be deemed a roominghouse.Roominghouse means any dwelling in which more than three persons either individually or as families are housed or lodged for hire, with or without meals. A boardinghouse or furnished room house shall be deemed a roominghouse.ARTICLE I. - IN GENERAL | Code of Ordinances | Stillwater, MN | Municode LibraryWoodburyARTICLE I. - IN GENERAL | Code of Ordinances | Woodbury, MN | Municode LibraryHugoARTICLE I. - IN GENERAL | Code of Ordinances | Hugo, MN | Municode LibraryOak Park HeightsA building other than a hotel where, for compensation and by prearrangement for definite periods, meals or lodging and meals are provided to five (5) or more persons, not of the principal family therein, pursuant to previous arrangements and not to anyone who may apply but not including a building providing these services for more than ten (10) personsA building other than a hotel, where for compensation for definite periods, lodging is provided for three (3) or more persons not of theprincipal family, but not including abuilding providing this service formore than ten (10) persons.CC401_Amended_11.26.2024)_(2).pdf JurisdictionApplicationState of MNDepending on location, licensing is under MDH or local authority. Plan Review Food, Pools, and Lodging Services (FPLS) - MN Dept. of HealthWashington CountyWashington CO Dept. of Public Health and Environment has authority to license lodging.License Application - IntellistackSourceLicensing Jurisdiction Food, Pools, and Lodging Services (FPLS) - MN Dept. of HealthSec. 157.16 MN StatutesLodging-Establishment-Ordinance-No-181Bed and Breakfast Operations Food, Pools, and Lodging ServicesBed & Breakfast RequirementsWhen is a license required?Zoning RestrictionsA license is required annually for every person, firm, or corporation engaged in the business of conducting a food and beverage service establishment, youth camp, hotel, motel, lodging establishment, public pool, or resort.MDH will not license without demonstrated zoning approval from local municipality (only states this for B&Bs)No Person shall operate a lodging establishment, as defined in Minnesota Statutes, section 157.15 of the Washington County Food Code Ordinance, or this Ordinance, unless a license for the current year of the applicable type shall have been obtained"Proper zoning" must be demonstrated Inspection RequirementsFire Code RequirementsState of MN4625.2000 - MN Rules PartWashington CountyNew Construction: Plan reviewExisting Structure: Compliance inspectionSourceLodging | Washington County, MN - Official Website CitiesBed & BreakfastShort-Term RentalBed & Breakfast Short-Term RentalLake ElmoB&B PermitProhibitedPermitted in most, but not all zoning districtsProhibitedStillwater28-325Requires CUP in some zoning districts. Requires operation license from County.Short Term Rental License App & Background CheckBuilding Plans required for R-1 (not owner-occupied)RCL: PermittedRB & RCM: CUP Owner-occupiedCapped at 50 outside Central Business District. Not allowed in all zoning districtsWoodburyMentioned as a Conditional Use, but never defined"The use of a property as a rental with a term shorter than 30 days that is not the renter’s permanent residence is prohibited."- can't find in code, only on websiteConditional Use in R-4 Urban Residential District. Not shown as permitted in any other districtProhibitedHugoConditional_Interim_Use_Permit.pdfProhibited Sec. 90-264Permitted conditionally in several districtsProhibited in all districtsOak Park HeightsHome_Occupation_Permit_Application_Packet.pdfHome_Occupation_Permit_Application_Packet.pdfPermitted with CUP in all residential districtsPermitted with CUP in all residential districtsApplicationZoning Restrictions CitiesBed & Breakfast Short-Term Rental Bed & BreakfastShort-Term RentalBed & Breakfast Short-Term RentalLake ElmoMax 5 lodging rooms. Prohibited. None.Prohibited None.ProhibitedStillwaterMax 5 guest rooms. Further restricted by lot and building size.R3 Occupancy: 5 or fewer guest roomsR1 Occupancy: Greater than 5 guest roomsBuilding, Fire, & Planning Inspections requiredFire & Building Dept InspectionCUPs reviewed annually. Report submitted to PC & CC in NovemberRequires CC approvalWoodburyNone found. Prohibited None found. Prohibited Requires CUP prohibitedHugoNone found. Prohibited None found. Prohibited Requires CUP ProhibitedOak Park Heights3 guests per room and limit of 3 bedrooms3 guests per room and limit of 3 bedroomsBuilding Official may inspect at any timeBuilding Official may inspect at any timeRequires CUPPlanning Commission recommendation, City Council approvalOccupancy RestrictionsInspection RequirementsCouncil/ Committee Action Short-Term Rentals Planning Commission| December 8, 2025 Overview Staff introduced a zoning text amendment to the bed and breakfast definition as part of city code housekeeping earlier this year. The amendment went before the Planning Commission on January 27, 2025, and was not recommended for approval. The item was removed from the housekeeping amendment to be further researched by staff. Staff presented their findings to the City Council at their November 12, 2025 Workshop and requested feedback from the Council on next steps. Code Section: 105.12.110(b)(13) Definitions The intent of this amendment is to account for bed and breakfast facilities where the owner may not reside on premises with the renters. Proposed Language: Bed and breakfast (short term rental) means a private, owner-occupied residence that contains no more than five guestrooms where lodging, with or without meals, is provided for compensation. Guest stays shall be limited to 30 days. The owner may or may not reside on site. Current Status Currently, the City does not allow short -term rentals in any zoning district The City permits Bed & Breakfasts in most residential and mixed-use districts, provided it meets the minimum standards: •Owner-occupied •Single-family home •The number of lodging rooms does not exceed 5 •May exceed 5 rooms with a Conditional Use Permit •Meets parking requirements •Liability insurance Bed & Breakfast permits are valid for two years Issue Before the Commission 1.Should the zoning code be updated to allow short-term rentals? 2.Where should short-term rentals be located? a.Zoning district? b.Lot size? c.Conditional Use Permit? 3.Should there be a limit? 4.If possible, should they be regulated as a R-1 or R-3 occupancy? How does the Planning Commission want staff to proceed with an ordinance proposal amending the zoning code on short-term rentals? Washington County Requirements Short -term rentals meet the definition of a hotel/motel, per State Statute 157 •"Hotel or motel" means a building, structure, enclosure, or any part thereof used as, maintained as, advertised as, or held out to be a place where sleeping accommodations are furnished to the public and furnishing accommodations for periods of less than one week. •Washington County is the licensing jurisdiction for food, pools, and lodging. They require licenses for all short-term rentals (defined above), including Bed & Breakfasts. •The County performs inspections at all lodging establishments they license. •The County notifies local fire inspectors during plan review of new lodging establishments. Fire Classification What does the Minnesota State Fire Code say? •While complex, the MSFC has several definitions and classifications pertaining to short- term rental or transient facilities. Typically, these types of facilities are classified as Group R-1 Occupancies and include facilities such as bed and breakfast facilities with six or more guest rooms and hotels/motels. Short-term rental homes are classified as Group R-3 Occupancies and include facilities such as single-family homes and bed and breakfast facilities with less than six guest rooms. Building Type What is R-3 Occupancy? •R-3 Occupancy is a classification under building codes. It typically includes residential structures where the occupants are primarily permanent in nature. It also includes certain care facilities, congregate living facilities, and transient lodging with five or fewer guest rooms and 10 or fewer occupants. What is R-1 Occupancy? •R-1 occupancies contain sleeping units where the occupants are primarily transient in nature. It includes transient lodging with more than ten occupants, hotels, and motels. R- 1 structures must meet fire code and ADA accessibility requirements. High-cost improvements would likely be necessary for an existing single-family home to meet these requirements. What are Neighboring Cities Doing? Stillwater Background: Stillwater did not permit short-term rentals prior to 2017. Short-term rentals require city licenses. •This provision does not apply to hotels, motels, B&Bs, state-licensed residential care facilities, and nursing homes. •Licenses require City Council approval. •Licenses last three years and are non-transferable. •Newly licensed rentals are inspected by both Fire and Building. Zoning Restrictions •Short-term rentals are only permitted in specific zoning districts. •No more than 50 licenses shall be approved outside the Central Business District. Stillwater Cont. Performance Standards •May not host events of more than three unregistered guests •Maintenance standards •Must meet the parking requirements for their zoning district Nuisances •“Three strikes you’re out” policy. Licenses may be suspended or revoked if: 1.It is the third substantiated and relevant complaint or violation within a 12-month period. 2.The licensee has acted in an unauthorized manner or beyond the scope of the license. •Depending on circumstances/severity of the violation of City Code, the City Council may hold a license hearing for consideration of suspension, revocation or conversion to a provisional license, if deemed appropriate. •All complaints must be substantiated, via photos/videos, which are then further investigated by Code Enforcement or Police. Stillwater Cont. Occupancy Regulations •R-3 Category •Rental must be owner-occupied •5 or fewer guest rooms AND 10 or fewer total occupants (excluding permanent residents) •Single-family home •R-1 Category •No permanent resident OR •Greater than 5 guest rooms OR greater than 10 total occupants •Condo or mixed-use buildings •R-1 buildings must have fire rated corridors, accessible features per 2020 MN Accessibility Code, etc.* •*This effectively prohibits most single-family homes from being used as a short-term rental •Regardless of classification, homes greater than 4500 square feet must be sprinkled Oak Park Heights Short-term rentals are permitted in all residential districts with a Conditional Use Permit. •The rental must have a State license for lodging •Permits are non-transferable. •Are not required to be owner-occupied •Must be a detached single-family home •May not be located closer than 500 feet from other transient lodging Performance Standards •Comply with Fire and Building code •Limit of 3 transient guests per bedroom and a limit of 3 bedrooms for transient lodging •Dining shall not be open to the public •Two off-street parking spaces shall be provided plus one for each bedroom over two bedrooms Oak Park Heights Cont. Nuisances •Excessive occupant noise reported to the City and in violation of City Code shall receive a warning on the first offence and a citation on the second. Continued citations shall be grounds for the suspension of use permits. •Building Official may perform site inspections at any time •If violations are found, a public hearing shall be held to review the permit. The City Council may revise or cancel the CUP. Woodbury The use of a property as a rental with a term shorter than 30 days that is not the renter’s permanent residence is prohibited. *Woodbury Code lists Bed & Breakfasts as a conditional use in the R-4 urban residential zoning district but does not define the term Bed & Breakfast. Hugo No person or entity shall offer for rent, or enter into a rental agreement, a dwelling unit, or any other portion of their property, as a short-term rental (fewer than 30 consecutive days) in any zoning district within the city. *Does not apply to Bed & Breakfasts (owner-occupied), which are permitted by Conditional Use Permit in several districts. City Council Workshop Discussion Staff presented their findings to the City Council at their November 12, 2025, Workshop. Councilors were 3-1 in favor of permitting short-term rentals with some restrictions. Councilors discussed the following options for regulating short-term rentals: •Adopting regulations to protect neighbors from nuisances such as noise and large gatherings •Limiting the number of lodging rooms •Limiting the number of guests •Limiting the total number of short-term rentals within the City Discussion 1.Should the zoning code be updated to allow short-term rentals? 2.Where should short-term rentals be located? a.Zoning district? b.Lot size? c.Conditional Use Permit? 3.Should there be a limit? 4.If possible, should they be regulated as a R-1 or R-3 occupancy? How does the Planning Commission want staff to proceed with an ordinance proposal amending the zoning code on short-term rentals? Staff Report DATE: 12/8/2025 MOTION ITEM # 5b AGENDA ITEM: Planning Commission 2026 Work Plan SUBMITTED BY: Sophia Jensen, Senior City Planner REVIWED BY: Jason Stopa, Community Development Director BACKGROUND: Per Section 3.12.280 of the Lake Elmo City Code, the Planning Commission is tasked with reviewing and recommending an annual work plan. Staff built off the 2025 work plan to establish the 2026 Planning Commission Work Plan. Items on the Work Plan should be directly related to the Planning Commission and its capabilities. ISSUE BEFORE THE PLANNING COMMISSION: The Planning Commission is being asked to make a recommendation on the proposed Planning Commission Work Plan for 2026. Are there any additional discussion points the Commission would like to address with City Council? DETAILS AND ANALYSIS: The work plan follows a similar ranking system to the Parks Commission work plan with a priority system of 1-5 (1 being the highest priority). Items that have been completed in the 2025 work plan include the following: 1. Housekeeping amendments identified in 2024 were completed in February. 2. Cannabis regulations were approved, and no formal applications have been received in 2025. 3. Old Village review update was provided in November. Updates will be incorporated into the 2050 Comprehensive Plan. 4. Short Term Rentals review: a. A City Council Workshop for short term rentals was held in November b. PC Discussion this evening regarding short term rentals c. City Staff will bring forward a proposal in 2026 5. CIP was reviewed in November. 6. Planning Commission training was held in March. 7. Public Hearing methods and mailings: a. Staff updated the mailer language to include additional information b. City Attorney consulted on mailing distances c. City Council Workshop scheduled for 12/9/2025 8. Promoting Sustainability: a. The city received Steps 4 and 5 of the GreenSteps Program and 2 gold leaf recognition items for 2025. b. Not on the work plan for 2025 but the City also started a tree fund in 2025 that will be implemented in 2026. 9. The city has an interactive GIS tool on the website for residents and developers. This was presented to the Commission in October. 10. Land Use applications were reviewed as they were received throughout the year. 2 OPTIONS: 1. Recommend approval of the Planning Commission 2026 Work Plan 2. Recommend amendments to the Planning Commission 2026 Work Plan FISCAL IMPACT: None RECOMMENDATION: Staff recommends the following motion: “Motion to recommend approval of the 2026 Planning Commission Work Plan as presented by Staff.” ATTACHMENTS: 1. 2025 Planning Commission Work Plan 2. Proposed 2026 Planning Commission Work Plan 1 2025 Planning Commission Work Plan Reviewed by the Planning Commission: 11/13/2024 Joint Workshop Review: 2/11/25 Reviewed by the City Council: 2/18/2025 Key Status C – Complete IP – In Progress PL Priority Level (1-5 with 1 being the highest priority) Project and Description PL Status Code Amendments • Process the housekeeping amendments identified by City Staff in 2024. 2 • Review MN Cannabis regulations and add zoning/licensing requirements 3 • Review the Old Village Area Zoning and Future Land Use Maps in response to the Old Village Study Conducted in 2024 4 • Review need for short term rental registration and regulations 4 Comprehensive Plan Amendments • Planning Commission complete their annual review of City Capital Improvement Plan for consistency with Comprehensive Plan. 2 Other Planning Initiatives • Provide annual training to Planning Commission. 2 • Review public hearing notice methods and mailing distances 2 • Hold annual joint Planning Commission City Council work session. 2 2/11/25 • Promote sustainability through the Gold Leaf, B3 and GreenSteps programs 4 • Implement an interactive city map for residents 2 Ongoing Planning Activities • Zoning Code Amendments – as amendments are requested. 1 • Comprehensive Plan Amendments – as amendments are requested. 1 • Zoning Map Amendments – as amendments are requested. 1 2026 Planning Commission Work Plan Reviewed by the Planning Commission: 12/8/2025 Joint Workshop Review: 1/13/2025 Reviewed by the City Council: 2/3/2025 Key Status C – Complete IP – In Progress PL Priority Level (1-5 with 1 being the highest priority) Project and Description PL Status Code Amendments • Process the housekeeping amendments identified in 2025 3 • Review of short-term rental registration and regulation ordinance 2 Comprehensive Plan • Review of the City Capital Improvement Plan for consistency with Comprehensive Plan 5 Annual • Prepare for the Image 2050 Comprehensive Plan Process 4 Ongoing Other Planning Initiatives • Provide training to Planning Commission 5 Annual • Process land use applications for the Old Fire Hall and Parks building redevelopment 3 • Process land use applications for the City 76-acre park 3 • Process land use applications for the City 180-acre 3M Property 3 • Hold annual joint Planning Commission City Council work session 1 January • Consider reviewing and updating the Alternative Urban Areawide Reviews (AUAR) - Old Village and City 180 Acres 4 • Promote sustainability through the Gold Leaf, B3 and GreenSteps programs 2 Ongoing • Promote open space developments and wildlife habitat/corridors 2 Ongoing Planning Activities • Zoning Code and Map Amendments – as amendments are requested. 1 Ongoing • Comprehensive Plan Amendments – as amendments are requested. 1 Ongoing • Land Use Applications – as applications are submitted. 1 Ongoing 2026 PC Work Plan Planning Commission| December 8 th , 2025 2025 Work Plan = Completed in 2025 2026 Draft Work Plan = New Item for 2026 Questions for the Council ▪Are there any changes the Commission would like to see prior to City Council review? If so, please indicate the item and priority level you would like to see it at. ▪The Planning Commission will have a joint workshop with City Council in January to discuss the work plan prior to adoption. At this meeting are there any topics the Commission would like to discuss? “Motion to recommend approval of the 2026 Planning Commission Work Plan as presented by Staff.”