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CITY OF STILLWATER
<br />ORDINANCE NO. 1093
<br />AN ORDINANCE AMENDING THE STILLWATER CITY CODE CHAPTER 31, ENTITLED
<br />ZONING ORDINANCE BY ADDING REGULATIONS FOR SHORT TERM HOME RENTALS
<br />THE CITY COUNCIL OF THE CITY OF STILLWATER DOES ORDAIN:
<br />1. Definitions
<br />Amend City Code Chapter 31, Section 31-101 Definitions, by adding the following:
<br />119.1. Primary Residence, means the dwelling unit within which a person lives for six months plus a
<br />during a calendar year.
<br />119.2. Primary Resident, means a person living on a property where the property is the person's prim
<br />residence.
<br />day
<br />ary
<br />145.1. Short Term Home Rental, Type A (hosted short term rental), means a dwelling unit that is offered to
<br />transient guests for a period of less than 30 consecutive days, where a primary resident of the property is present
<br />while the transient guests are present.
<br />145.2. Short Term Home Rental, Type B (unhosted short term rental), means a dwelling unit that is offered to
<br />transient guests for a period of less than 30 consecutive days, where the property serves as a person's primary
<br />residence but a primary resident of the property is not present while the transient guests are present. This Type
<br />B also includes Short Term Home Rental of any Accessory Dwelling Units, non -owner occupied Duplexes or
<br />"mother-in-law" apartments.
<br />145.3. Short Term Home Rental, Type C (dedicated short term rental) means a dwelling unit that is offered to
<br />transient guests for a period of less than 30 consecutive days, where the property does not serve as a person's
<br />primary residence
<br />145.4. Short Term Home Rental, Type D (Bed & Breakfast) - see the definition of Bed & Breakfast in Para-
<br />graph 16 of this Definition Section 31-101.
<br />2. Short Term Home Rental Regulations.
<br />Amend City Code Chapter 31 by adding the following Section.
<br />Sec. 31-514.1. Short -Term Home Rental Regulations
<br />Subd. 1. Purpose. The purpose of this Section 31-514.1 is to allow Short Term Home Rentals where appro-
<br />priate while mitigating impacts upon surrounding properties by implementing balanced regulations to protect the
<br />integrity of the city's neighborhoods as well as protect the general public health, safety and welfare.
<br />Subd. 2. License required. No property may be used for Type A, B or C Short Term Home Rental unless
<br />granted a license by the city. No property may be used for Type C Short Term Home Rental unless granted a
<br />Conditional Use Permit and a license by the city. No property may be used for Type D Short Term Home Rental
<br />(aka Bed & Breakfast) unless granted a Special Use Permit by the city pursuant to Section 31-504 of this Chapter.
<br />Subd. 3. License application. Any property owner desiring to undertake Short Term Home Rentals must
<br />apply to the community development department for a Short Term Home Rental License. A license must be
<br />approved prior to operating within the city. The license application request must be submitted on the form
<br />prescribed by the city and must include all the information requested on the application form. The license appli-
<br />cation will not be accepted by the city unless an inspection report has been signed by personnel from both the
<br />city's fire department and building department.
<br />Subd. 4. License fee. The license application form must be accompanied by payment in full of the required
<br />license application fee. The license application fee amount will be as determined by the city council in the city
<br />fee schedule.
<br />Subd. 5. License issuance. The process for review and issuance of a license will vary depending upon the
<br />type of Short Term Home Rental as follows:
<br />A. Type A, Hosted Short Term Home Rentals. Type A Short Term Home Rentals are required to have an ad-
<br />ministratively issued license from the city.
<br />1. A Type A Short Term Home Rental license or renewal license will be issued administratively only if:
<br />i. The licensee certifies on the application form that all applicable items found in this Section 31-514.1 are
<br />satisfied. That includes:
<br />a. Proper zoning as found in Subd. 6; and
<br />b. Performance standards as found in Subd. 7.
<br />ii. The applicant submits a site plan, drawn to scale, showing parking and driveways, all structures and out-
<br />door recreational areas that guests will be allowed to use, including, but not limited to, deck/patio, barbeque
<br />grill, recreational fire, or sauna.
<br />iii. The applicant submits a floor plan, drawn to scale, of the home identifying which rooms will be used as
<br />transient guest bedrooms.
<br />iv. The property passes the city inspection (see Section 31-514.1, Subd. 9B) for residential code standards
<br />applicable to renting a home on a short term basis. The list of health and safety items that will be inspected for
<br />this purpose will be included amongst license application materials so that the property owner will know what
<br />items will be inspected prior to submitting the license application to the city.
<br />a. An inspection must be completed within 60 days prior to submission of the license application form.
<br />b. An inspection report must be submitted together with the license application form and other necessary
<br />materials. Without the inspection report, the license application will not be considered complete, nor will it be
<br />accepted by the city.
<br />c. If the inspection identifies items that must be corrected, all corrections must be completed and verified by
<br />the city prior to submitting an application for the Short Term Home Rental license.
<br />2. There shall be no change in the exterior appearance of the home or premises, or other visible evidence of
<br />the conduct of a Short Term Home Rental, except that additional on-site city code compliant parking may be
<br />provided.
<br />3. The licensee must provide proof of sufficient and suitable property insurance at the time of license issuance,
<br />and must be able to confirm that the coverage remains in place within 24 hours of a city request for confirmation.
<br />4. Licenses are non -transferable and shall expire upon change of ownership of the property.
<br />5. A license constitutes a limited license granted to the applicant by the city and in no way creates a vested
<br />zoning right.
<br />6. No more than a total of thirty-five Type A licenses may be valid within the city at one time.
<br />7. If three substantiated and relevant complaints are received from neighbors or guests within a 12 month
<br />period, the license shall be revoked. The revocation may be appealed to the city council pursuant to procedures
<br />established in Section 31-217 of this Chapter. If a license is revoked, the owner is prohibited from making appli-
<br />cation for another license for any type of Short Term Home Rental for six months.
<br />8. Licenses are valid for a period of three years. A renewal license must be applied for every three years.
<br />B. Type B - Unhosted Short Term Rental. Type B Short Term Home Rentals are required to have an admin-
<br />istratively issued license from the city. Prior to issuing the license, a neighborhood notification is required, as
<br />specified below.
<br />1. A Type B Short Term Home Rental license or renewal license will be issued administratively only if:
<br />I. The applicant submits a site plan, drawn to scale, showing parking and driveways, all structures and out-
<br />door recreational areas that guests will be allowed to use, including, but not limited to, deck/patio, barbeque
<br />grill, recreational fire, or sauna.
<br />ii. The applicant submits a floor plan, drawn to scale, of the home identifying which rooms will be used as
<br />transient guest bedrooms.
<br />iii. The licensee certifies on the application form that all applicable items found in this Section 31-514.1 are
<br />satisfied. That includes:
<br />a. Proper zoning as found in Subd. 6
<br />b. Performance standards as found in Subd. 7
<br />c. Proof of sufficient and suitable property insurance.
<br />iv. No more than a total of thirty-five Type B licenses may be valid within the City at one time.
<br />v. Notices have been mailed by the city to all surrounding property owners according to the following stan-
<br />dards:
<br />a. 150 feet of all applicant properties zoned RB, CCR, CR, TH, CTHR, RCL, RCM, RCH, CBD;
<br />b. 200 feet of all applicant properties zoned RA, LR, CTR, TR;
<br />c. 500 feet of all applicant properties zoned AP; and
<br />vi. There are no objections received by the city within ten days of mailing the notices.
<br />a. If objections are received, then the license request must be considered by the planning commission.
<br />(1). The planning commission must hold a hearing, to which neighbors within the above defined notification
<br />area are invited to offer comments.
<br />(2). After considering the license request and hearing comments from the neighbors, the planning commission
<br />may either approve a one year provisional license, with or without conditions, or deny the license request.
<br />(3). If there are no substantiated relevant complaints from neighbors or guests during the provisional year, the
<br />permit will automatically extend two more years. If there are three substantiated relevant complaints, the provi-
<br />sional license is automatically revoked and the owner is prohibited from making application for another license
<br />for any type of Short Term Home Rental for six months.
<br />vii. The property passes the city inspection (see Section 31-514.1, Subd. 9B) for residential code standards
<br />applicable to renting a home on a short term basis. The list of health and safety items that will be inspected for
<br />this purpose will be included amongst license application materials so that the property owner will know what
<br />items will be inspected prior to submitting the license application to the city.
<br />a. An inspection must be completed within 60 days prior to submission of the license application form.
<br />b. An inspection report must be submitted together with the license application form and other necessary
<br />materials. Without the inspection report, the license application will not be considered complete, nor will it be
<br />accepted by the city.
<br />c. If the inspection identifies items that must be corrected, all corrections must be completed and verified by
<br />the city prior to submitting an application for the Short Term Home Rental license.
<br />2. There shall be no change in the exterior appearance of the home or premises, or other visible evidence of
<br />the conduct of a Short Term Home Rental, except that additional on-site city code compliant parking may be
<br />provided.
<br />3. The licensee must provide proof of sufficient and suitable property insurance at the time of license issuance,
<br />and must be able to confirm that the coverage remains in place within 24 hours of a city request for confirmation.
<br />4. If three substantiated and relevant complaints are received from neighbors or guests within a 12 month
<br />period, the license shall be revoked. The revocation may be appealed to the city council pursuant to procedures
<br />established in Section 31-217 of this Chapter. If a license is revoked, the owner is prohibited from making appli-
<br />cation for another license for any type of Short Term Home Rental for six months.
<br />5. Licenses are non -transferable and shall expire upon change of ownership of the property.
<br />6. A license constitutes a limited license granted to the applicant by the city and in no way creates a vested
<br />zoning right.
<br />7. Licenses are valid for a period of three years. A renewal license must be applied for every three years. No
<br />neighborhood notification is required for the renewal of licenses.
<br />C. Type C - Dedicated Short Term Rental. Type C Short Term Home Rentals are required to have both a
<br />Conditional Use Permit and an administrative license issued by the city. The Conditional Use Permit and initial
<br />license may be processed simultaneously.
<br />1. Conditional Use Permit. The application for the Conditional Use Permit to operate a Type C Short Term
<br />Home Rental must be filed with the city's community development department on the applicable form. The ap-
<br />plication will be reviewed according to the process established in Sections 31-204 and 31-207 of this Chapter.
<br />In addition, the following procedures, criteria and conditions shall also apply:
<br />i. The applicant must submit a site plan, drawn to scale, showing parking and driveways, all structures and
<br />outdoor recreational areas that guests will be allowed to use, including, but not limited to, deck/patio, barbeque
<br />grill, recreational fire, or sauna.
<br />ii. The applicant submits a floor plan, drawn to scale, of the home identifying which rooms will be used as
<br />transient guest bedrooms.
<br />iii. The Conditional Use Permit runs with the land and must be filed in the property's chain of title, but since a
<br />license is also required for a Type C Short Term Rental, possession of a Conditional Use Permit is not sufficient
<br />to operate. Any new owner desiring to operate a Type C Short Term Rental on property that has an unexpired
<br />Conditional Use Permit filed in the chain of title must also obtain a license from the city. A Conditional Use Permit
<br />expires if a property is not operated as a Short Term Home Rental for more than a year.
<br />iv. The Conditional Use Permit applicant must certify on the city application form that all applicable items
<br />found in this Section 31-514.1 are satisfied. That includes:
<br />a. Proper zoning as found in Subd. 6
<br />b. Performance standards as found in Subd. 7
<br />c. Proof of sufficient and suitable property insurance.
<br />v. The property must pass inspection by city building and fire code inspectors and found to meet the res-
<br />idential code standards applicable to renting a home on a short term basis (see Section 31-514.1, Subd 913)
<br />prior to holding the public hearing for the Conditional Use Permit. The list of health and safety items that will be
<br />inspected for this purpose will be included amongst license application materials so that the property owner will
<br />know what items will be inspected prior to submitting the license application to the city.
<br />vi. No more than a total of fifteen Conditional Use Permits for Type C Short Term Home Rentals may be valid
<br />within the City at one time.
<br />2. License. The application form for the license or renewal license must certify by the applicant that all appli-
<br />cable items found in this Section 31-514.1 are satisfied. That includes: Council Ex. E 17-3984
<br />i. A Conditional Use Permit has been issued for the subject property and is still valid.
<br />ii. The property has been inspected no more than 60 days prior to submission of the license application by
<br />city building and fire code inspectors and found to meet the residential code standards applicable to renting a
<br />home on a short term basis.
<br />a. An inspection must be completed and the inspection report submitted together with the license application
<br />form and other necessary materials. Without the inspection report, the license application will not be considered
<br />complete, nor will it be accepted by the city.
<br />b. If the inspection identifies items that must be corrected, all corrections must be completed and verified by
<br />the city prior to submitting an application for the Short Term Home Rental license.
<br />iii. Proper zoning as found in Subd. 6
<br />iv. Performance standards as found in Subd. 7
<br />v. Proof of sufficient and suitable property insurance.
<br />vi. No more than a total of fifteen Type C Short Term Home Rental licenses may be valid at one time within
<br />the City.
<br />3. The license for a Type C Short Term Home Rental may only be issued to the owner of the property and is
<br />not transferable to any other entity.
<br />4. There shall be no change in the exterior appearance of the home or premises, or other visible evidence of
<br />the conduct of a Short Term Home Rental, except that additional on-site city code compliant parking may be
<br />provided.
<br />5. The licensee must provide proof of sufficient and suitable property insurance at the time of license issuance,
<br />and must be able to confirm that the coverage remains in place within 24 hours of a city request for confirmation.
<br />6. Type C Short Term Home Rental licenses are valid for a period of three years. A renewal license must be
<br />applied for every three years. The Conditional Use Permit will not expire unless its use is discontinued for more
<br />than a year.
<br />7. The Type C Short Term Home Rental license is not transferable and shall expire upon change of ownership
<br />of the property.
<br />8. A license constitutes a limited license granted to the applicant by the city and in no way creates a vested
<br />zoning right.
<br />9. If three substantiated and relevant complaints are received from neighbors or guests within a 12 month
<br />period, the license shall be revoked. The revocation may be appealed to the city council pursuant to procedures
<br />established in Section 31-217 of this Chapter. If a license is revoked, the owner is prohibited from making appli-
<br />cation for another license for any type of Short Term Home Rental for six months.
<br />D. Type D - Bed & Breakfast. Type D Short Term Home Rentals are also known as Bed & Breakfasts and are
<br />required to have a Special Use Permit as regulated in Section 31-504 of this Chapter.
<br />Subd. 6. Zoning District. Short Term Home Rentals are permitted, with an approved license from the City of
<br />Stillwater, in the following Zoning Districts:
<br />A. Residential Zoning Districts. Type A and B Short Term Home Rentals are allowed by city license in all
<br />Residential Zoning Districts. Type C Short Term Home Rentals are allowed by Conditional Use Permit in all Res-
<br />idential Zoning Districts. Type D Short Term Home Rentals (aka Bed & Breakfasts) are allowed by city license in
<br />the RCL Zoning District and by Special Use Permit in the RB and RCM Zoning Districts.
<br />B. Commercial Zoning Districts. Type A, B and C Short Term Home Rentals are permitted by city license in
<br />the CBD Zoning District.
<br />Subd. 7. Performance standards. Type A, B and C Short Term Home Rentals shall be subject to the following
<br />performance standards. Type D Short Term Home Rentals shall be subject to the standards found in Section
<br />31-504 of this Chapter.
<br />A. Parking.
<br />1. In residential zoning districts, all guest parking must be accommodated on improved surfaces on the prem-
<br />ises. No on -street parking is allowed for guests. At a minimum, parking shall be provided at the following rate:
<br />i. 1-2 bedroom unit, 1 space
<br />ii. 3 bedroom unit, 2 spaces
<br />iii. 4 and 4+ bedroom units, number of spaces equal to the number of bedrooms minus one.
<br />2. In the CBD zoning district, guest parking must either be accommodated on the property of the Short Term
<br />Home Rental dwelling unit, or a parking mitigation plan must be approved by the Parking Commission.
<br />B. Length of guest stay. The minimum length of stay is one day. The maximum length of stay is 30 days, since
<br />more than that is by definition not a Short Term Home Rental property.
<br />C. Number of guests. The maximum number of transient guests will be limited to two times the number of
<br />bedrooms plus one.
<br />D. Guest records. The licensee for Type B and C Short Term Rentals must keep a transient guest record in-
<br />cluding the name, address, phone number, and vehicle license plate information for all guests and must provide
<br />a report to the city upon 48 hours notice.
<br />E. Guest disclosures. The licensee must disclose in writing to their transient guests the following rules and
<br />regulations, and must submit a copy of the disclosure to the city with the license application and renewal appli-
<br />cations. In addition the disclosures must be conspicuously displayed in the home.
<br />1. For Type B and C Short Term Home Rentals, the name, phone number and address of the owner, operating
<br />lessee or managing agent/representative;
<br />2. The maximum number of guests allowed at the property;
<br />3. The maximum number of vehicles allowed at the property and where they are to be parked;
<br />4. Property rules related to use of outdoor features, such as decks, patios, grills, recreational fires, saunas
<br />and other recreational facilities;
<br />5. City nuisance ordinances will be enforced by the Stillwater Police Department, including reduced noise
<br />levels between 10 PM and 8 AM.
<br />6. No events are allowed to be hosted on the premises.
<br />F. License number. The licensee must post their city license number on all print, poster or web advertise-
<br />ments.
<br />G. Proximity of assistance. For Type B and Type C Short Term Home Rentals, the property owner or a man-
<br />ager/representative must be located within 30 minutes travel time of the property. The community development
<br />department must be notified within 10 days of a change in the managing agent/representative or their contact
<br />information. The licensee must provide the name, address and phone number for the licensee or managing
<br />agent/representative to all property owners within 150 feet of the property boundary. The licensee must notify
<br />neighboring properties within 10 days of a change in the managing agent/representation or contact information.
<br />H. Garbage. As required by City Code Chapter 30-1, Subd 5, all garbage must be kept in rubbish containers
<br />that are stored out of view of a public street.
<br />I. Signage. No signage is allowed on the property of a Type A, B or C Short Term Home Rental. Type D is
<br />allowed signage as regulated in Section 31-504 of this Chapter.
<br />J. Events. Events are not allowed to be hosted by transient guests on the premises. For purposes of this
<br />Section 31-541.1, an event means a gathering on the premises of more than three un -registered transient guests.
<br />Events hosted by the property owner are allowed, but must abide by all applicable city ordinances and polices,
<br />including the prohibition on renting private residential property out for events.
<br />Subd. 8. Required inspections.
<br />A. Type A, B and C Short Term Home Rentals
<br />1. These types of Short Term Home Rentals are required to have, and pass, a health and safety code inspec-
<br />tion by city building and fire code staff prior to issuance of a license or renewal of the license.
<br />2. The list of health and safety items that will be inspected for this purpose will be included amongst license
<br />application materials so that the licensee will know in advance what items will be inspected.
<br />3. Upon receipt of a complaint, the city zoning administrator will contact the licensee and will determine
<br />whether a compliance inspection is required.
<br />B. Type D Short Term Home Rentals (aka Bed & Breakfast)
<br />1. This type of Short Term Home Rental is required to have inspections as regulated by Section 31-504.
<br />Subd. 9. Limit on number of licenses. No more than a total of thirty-five licenses may be valid at any one
<br />time for Type A Short Term Home Rentals. No more than a total of thirty-five licenses may be valid at any one
<br />time for Type B Short Term Home Rentals. No more than fifteen licenses may be valid at any one time for Type
<br />C Short Term Home Rentals. Type D Short Term Home Rentals are required to have a Special Use Permit, but
<br />no license is required.
<br />Subd. 10. Sales taxes. In addition to state sales tax, the licensee is required to pay the city lodging tax.
<br />A. The city lodging tax must be collected and paid either by the web based booking company that the Short
<br />Term Home Rental is listed on, or by the licensee directly to the city if the Short Term Home Rental does not use
<br />a web based booking service.
<br />B. The license application must supply information on any web based booking service(s) used for the licensed
<br />property.
<br />C. The licensee, or booking agent on their behalf, is required to pay the city lodging tax quarterly. If no sales
<br />are made during a quarter, a report must none the less be submitted to the city stating that no sales were made
<br />or lodging tax collected during that quarter.
<br />Subd. 11. Interchangeability. A licensee may use the license to operate any Short Term Home Rental type
<br />equal to or less restrictive than the one for which the license is issued. Therefore, if an owner is issued a Type
<br />C license, the property is permitted to operate as a Type C, B or A. And, a Type B license allows the owner to
<br />operate as a Type B or A. However, a Type D owner may only operate as a Bed & Breakfast.
<br />Subd. 12. Enforcement.
<br />A. In the event of a violation or threatened violation of this ordinance, the city, in addition to other remedies,
<br />is entitled to seek Injunctive Relief or proceedings to prevent, restrain, correct or abate such violations or threat-
<br />ened violations.
<br />B. The penalty for violation of this Section 31-514.1 shall be a Misdemeanor.
<br />C. In addition to penalty provisions A and B above, the fine for the first substantiated and relevant complaint
<br />or violation shall be $250. The fine for the second shall be $500.00. The fine for the third shall be $750.00 and
<br />this third offense shall also result in automatic license revocation.
<br />3. Amend City Code Section 31-315, Allowable Uses in Residential Districts by adding:
<br />ALLOWABLE USES ZONING DISTRICTS
<br />A -P
<br />LR
<br />CTR
<br />RA
<br />ITR CCR RB ICR TH
<br />CTHR
<br />I RCL RCM
<br />Bed & Breakfast (type D Short
<br />Term Home Rental
<br />SUP10
<br />P" SUP
<br />Short Term Home Rental; Type A P
<br />and B
<br />P
<br />P
<br />P
<br />P P P P P
<br />P
<br />P P
<br />Short Term Home Rental; Type ClCUP
<br />CUP
<br />CUP
<br />CUP
<br />1 CUP CUP CUP CUP CUP
<br />CUP
<br />CUP CUP
<br />P = Permitted use
<br />SUP = Use permitted with a Special Use Permit
<br />CUP = Use permitted with a Conditional Use Permit
<br />A = Accessory use
<br />Blank cell in table means that the use is NOT allowed.
<br />4. Amend City Code Section 31-325, Allowable Uses in Non -Residential Districts by adding:
<br />P = Permitted use
<br />SUP = Use permitted with a Special Use Permit
<br />CUP = Use permitted with a Conditional Use Permit
<br />PUD = Use permitted with a Planned Unit Development Permit
<br />A = Accessory use
<br />ACC = Allowed as an accessory improvement to an allowed use located on or adjacent to the site
<br />Blank cell in table means that the use is NOT allowed.
<br />5. Savings. In all other ways City Code Chapter 31 shall remain in full force and effect.
<br />6. Effective Date. This Ordinance will be in full force and effect from and after its passage and publication
<br />according to law.
<br />Enacted by the City Council of the City of Stillwater this 2nd day of May, 2017.
<br />CITY OF STILLWATER
<br />/s/ Ted Kozlowski
<br />Ted Kozlowski, Mayor
<br />ATTEST:
<br />/s/ Diane F. Ward
<br />Diane F. Ward, City Clerk
<br />Published in the
<br />Stillwater Gazette
<br />May 12, 2017
<br />687353
<br />
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