HomeMy WebLinkAbout7A-Short Term Rental Public Hearing o� PR-rOT
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U 4646 Dakota Street SE
Prior Lake,MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: MARCH 23, 2015
AGENDA#: 7A
PREPARED BY: FRANK BOYLES, CITY MANAGER
PRESENTED BY: FRANK BOYLES
AGENDA ITEM: PUBLIC HEARING TO CONSIDER THE ADDITION OF SECTION 315 TO
THE PRIOR LAKE CITY CODE RELATING TO SHORT TERM RENTAL
DISCUSSION: Introduction
The purpose of this agenda item is to conduct a public hearing to receive
public comment upon a proposal to add section 315 to the Prior Lake City
Code relating to short term rental permits.
History
For a few years now the City has received complaints about the operation of
a short term rental unit within the City. Over time, the staff has been in
contact with both parties but the issues have persisted.
The City Council conducted a work session and directed that the City
Attorney and staff prepare a short term rental ordinance. The Council noted
that on one hand, the City is a member of RiverSouth (which seeks to bring
tourist to Scott County and Prior Lake), and the City wants to encourage
tourism while on the other hand the City seeks to address the problems and
conflicts which can occur with full time residents.
Current Circumstances
The City Attorney's Office did prepare a draft ordinance. A City Attorney
representative together with staff members, invited concerned residents and
short term rental owners and agents to provide input on the proposed
ordinance at a meeting on March 5th. The comments we heard at that
meeting are incorporated into the draft before you tonight.
The ordinance defines short term rental as rentals of 30 days or less. Any
property owner or agent engaging in short term rental in Prior Lake must be
permitted by the City. A fee has not yet been determined. The application is
made to the Code Enforcement Officer who will examine the information
provided and either issue a permit or reject the permit application.
If the permit is rejected, the applicant may appeal to the City Manager who
must conduct a hearing on the matter and make a determination. The City
Manager determination may be appealed to the Court of Appeals.
A request for permit renewal must be made 60 days in advance of the
expiring permit. The permit is not transferable. Each short term rental permit
Phone 952.447.9800/Fax 952.447.4245/www.cityofpriorlak-e.com
must identify a "resident agent" who must live and work within 30 miles of
the short term rental unit. The agent or a representative of the agent must
be available 24 hours a day, 7 days a week and 365 days a year in the event
of complaints.
The permit sets a maximum for the number of overnight occupants (over 3
years of age) based upon the size of the property and size of the house. The
maximum overnight occupancy is:
Lots of/z Acre or More . d
House Size Occupants House Size Occupants
<1500 6 <1500 4
1500-2000 8 1500-2000 6
2000+ 12 2000+ 8
One off street parking stall is required for each bedroom. The property must
meet code based maintenance standards. Disorderly conduct is prohibited.
Disorderly conduct is defined to include a violation of any of twelve different
statute and ordinance provisions. Each permitted unit must have information
posted in a prominent place regarding agent phone numbers, maximum
occupancy and other permit requirements.
The three strike rule is used with the ordinance. The first violation directs the
permitee to take corrective action. The second violation within 90 days of the
first requires the permittee or agent to submit a written report of steps they
will take within 15 days of the City's notice. A third violation within 90 days
of the second violation could lead to suspension, revocation, or nonrenewal
of the permit.
In the event of any of the above, the City Manager will conduct a hearing. If
the permitee wishes, the results of the hearing may be appealed to the Court
of Appeals.
Conclusion
The Council should conduct the public hearing, receive input, and then
determine if it wishes to adopt the ordinance, modify it, or take no action.
ISSUES: At least one Councilmember has asked if the City can prohibit short term
rental completely. The City Attorney's Office has indicated that there appears
to be no statute prohibiting such action but they believe there is a significant
risk that such a prohibition would be challenged.
The attached ordinance does attempt to balance the concerns of the owners
and agents with those of property owners living adjacent to short term rental
units.
Following the public hearing, the City Council will be in a better position to
determine if stakeholders agree that an effective balance has been
achieved.
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FINANCIAL While there is no objective way of knowing, we believe that there are nine
IMPACT: short term rental units within the City. Our intent would be to set the license
fee so that City costs are mitigated.
ALTERNATIVES: 1. Motion and second to close the public hearing and direct the staff to do
additional research and/or prepare an ordinance for adoption.
2. Motion and second to close the public hearing and take no action on a
short term rental ordinance of any kind.
RECOMMENDED As determined by the City Council.
MOTION:
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SECTION 315
SHORT-TERM RENTAL
SUBSECTIONS:
315.100: PURPOSE
315.200: SCOPE
315.300: DEFINITIONS
315.400: PERMIT REQUIRED
315.500: RESPONSIBILITY OF OWNER
315.600: DISORDERLY CONDUCT
315.700: SUSPENSION AND REVOCATION
315.800: APPEAL
315.900: PENALTY
315.100: PURPOSE: The purpose of this Section Is to'ensure that'the short-term rental of dwelling
units in the City's Residential Use Districts is cohd cted, operated, and maintained so as
not to become a nuisance to-,the surrounding n6l""fiborhood or an influence that fosters
blight and deterioration or creates .disincentive to rainrin the community.
315.200 SCOPE: This section applies tc5ythe ahr m rental of 'II'dwelling units located in the
City's Residential Use Districts. p ,..
315.300 DEFINITIONS,! The#allowing words °arid terms whenz used in this Section shall have the
following rneanings'unless the context clearly indicates otherwise:
Bedroom � abitable room within a sln le=family dwelling which is used, or intended to
be used, pri i' for h6 urpose of sleeping, but shall not include any kitchen, dining
Code Enfement Qf�cer.� An employee of the City designated as the Code
Enforcementfficer. Theer `Code Enforcement Officer also includes all City employees
authorized by Crk�rrCode Section 104.400 to issue citations.
nL>k*tilling unit tie or more rooms physically arranged so as to create an independent
hbticeeping establishment for occupancy by one family with separate toilets and
facliities=for cooking and sleeping.
Occupant=vv'Any person who occupies a dwelling unit or part of the same.
Owner.- A person having legal or equitable interest in the dwelling unit or its premises.
Off-street parking space: An area on the premises or within a building on the premises
intended for the use of temporary parking of a motor vehicle which has a means of access
to a public street.
Permitted Premises: The platted lot or part of such lot or unplatted parcel of land on
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which a dwelling unit permitted as a short-term rental is located.
Public waters: Any waters as defined in Minnesota Statutes§ 103G.005, Subd. 15.
Residential Use District: The land-use districts identified in City Code Section 1102,
Subsections 1102.100 through 1102.700.
Short-term rental: The rental or lease of a dwelling unit in whole or in part for 30 days or
less.
Short-term rental permit: The permit issued by the 'City for the rental or lease of a
dwelling unit in whole or in part for 30 days or less.
Tenant: Any person who is occupying a dwelling unit under':any,,agreement, lease, or
contract, whether oral or written, which requires the payment of money as rent for the use
of the dwelling unit.
Watercraft: Any vessel, boat, canoe raft, Berge, sailbpard, or any simllarievice used or
useable for carrying and transporting persons tin the pi
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be made at least sixty (60) days prior to the expiration of the current short-term rental
permit. All such applications shall be submitted to the Code Enforcement Officer on forms
provided by the City and shall be accompanied by the required fee.
315.406 Permit Not Transferable: No short-term rental permit shall be transferable to another
person or to another dwelling unit. Every person holding a short-term rental permit shall
give notice in writing to the Code Enforcement Officer within five (5) business days after
having legally transferred or otherwise disposed of the legal control of any dwelling unit for
which a short-term rental permit has been issued. Such notice shall include the name and
address of the person succeeding to the ownership or control of 'such dwelling unit.
315.407 Resident Agent Required: No short-term rental be issued without the
designation of a local agent. The agent must live and work"n in 30 miles of the dwelling
unit. The Agent may, but is not required to be, the owner One'rpeson may be the agent
for multiple dwelling units. At all times, the:=agent``shall have .l.".tile with the Code
Enforcement Officer a primary and a se� ndary phone number a,;yell as a current
address. The agent or a representative of the agent`shall be available 3f5,.days a year,
24 hours a day at the primary or second`' hone number to respontlmediately to
complaints and contacts relating to the dw6llt (unit ,The=-Code Enforcement Officer shall
be notified in writing within two (2) business days cf==any change of agent. The agent shall
be responsible for the activities of the tenant° maintenance and upkeep of the
dwelling unit and shall be authorized and empowered, to receive service of notice of
violation of the provisions of qty r finances and st6te;lawnto receive orders, and to
institute remedial action to effect stcn orders, and to'-.Rccept all service of process
pursuant to law.
315.408 Denial of Short brm Rental Permit. Any apple alit aggrieved by the denial of a short-
term rental` perrriit ®r7he non-rene"vial of an existing permit may appeal to the City
Managerx .- uch appeWl shall be taken y filing with the City Manager within ten (10) days
after the`denial of a rmit, a written statement requesting a hearing before the City
Manager and setting fort ,fully the grounds' for the appeal. A hearing shall be held within
fifteen (15) days of receipt bflfh6,`equ6st. Notice of the hearing shall be given by the City
r: lana_gev,,jn, wntm A ng forth -he' time and place of hearing. Such notice shall be
mailed, pos#pge prepaitl,"to the applicant at his/her last known address at least five (5)
days prior ttil� e_date set t4r,hearing.
315.500 ?.:ResPONsiaiuTY OWNERS: No owner shall undertake or allow the short-term rental of a
dwelling unit in :;Residential Use District that does not comply with all applicable City
or'diriances, the haws of the State of Minnesota, and this Section. It shall be the owner's
resp 'rstility toonsure that all tenants, occupants, and guests comply with the following:
315.501 Maxim um.'Overniaht Occupancy: The number of overnight occupants allowed for a
short-terhr 'rental, excluding children under three (3) years of age, shall be limited as
follows:
For lots of Y2 acre or more if the livable square footage of the primary building is:
under 1,500 square feet: 6 occupants
1,500 square feet to less than 2,000 square feet: 8 occupants
2,000 square feet or more: 12 occupants
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For lots of less than '/2 acre:
under 1,500 square feet: 4 occupants
1,500 square feet to less than 2,000 square feet: 6 occupants
2,000 square feet or more: 8 occupants
315.502 Off-Street Parking: The permitted premises shall contain off-street parking spaces equal
in number to the number of bedrooms contained in the dwelling unit.
315.503 Storage of Watercraft: No watercraft shall be permanent(-or temporarily placed or
stored within the side yard setback of the permitted premises; as prescribed for the
relevant zoning district by City Code Section 1102.
315.504 Maintenance Standards: Every dwelling unit used for s"rm rental shall conform to
all building and zoning requirements of the City Qode, special permits issued by the City,
and the laws of the State of Minnesota.
315.600 DISORDERLY CONDUCT:
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315.601 Disorderly Conduct Prohibited: Disorderly,conduct -is prohibited on all permitted
premises. It shall be the responsibility of the owner to ensure that all tenants occupying
the permitted premises and their guests conduct themselves in such a manner as not to
cause the permitted premises Jp.be disorderly. For purposes of this Section, disorderly
conduct includes but is not "'Od' ".to,r a violation of",,'any, of the following statutes or
ordinances: '
(1) Minn. Stat. §§609.75-609.76, which,pr9 bit gambling;
(2) Minn. Stat ; `609.321--X09.324, whlch=prohibit prostitution and acts relating thereto;
(3) Minn."Stat . § 152.01 152.027, which prohibit the unlawful sale or possession of
controlled substances,
340A 401,which prohibits the unlawful sale of alcoholic beverages;
5) Minn. Stat § 40-A.503,`wh ch.prohibits the underage consumption of alcoholic beverages;
(6) :.Minn. Stat. § 600.595, which prohibits damage to property;
(7) Nlmn::.=Stat. §§ 97B.021, 976.045, 609.66-609.67, and 624.712-624.716, and City Code
Section,804, which prohibit the unlawful possession, transportation, sale, or use of a
weapon,
(8) Minn. Stat: § 609.72, which prohibits disorderly conduct, when the violation disturbs the
peace and quiet of the other occupants of the permitted premises or other surrounding
premises;
(9) Minn. Stat. § 152.027, subd. 4, which prohibits the unlawful sale or possession of small
amounts of marijuana;
(10) Minn. Stat. § 152.092, which prohibits the unlawful possession or use of drug
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paraphernalia;
(11) City Code Section 605, which prohibits public nuisances; and
(12) City Code Sections 803.200 and 803.300, which prohibit public drunkenness and
disturbing the peace.
315.602 Determination of Disorderly Conduct:
(1) A determination that the permitted premises has been used in' a disorderly manner as
described in subsection 315.601 shall be made by the rode Enforcement Officer upon
evidence to support such a determination. It shall not be"r eppssary that criminal charges
are brought to support a determination of disorderl ;dse, nor shall the fact of dismissal or
acquittal of such a criminal charge operate as a- bar,to adverse. rmit action under this
Section. , `' '
(2) Upon determination by the Code Enforce#nsnt Officer.that a permitted prelm�sas was used
in a disorderly manner, as described rn�� bsection .315.601, the Cod6;`Enforcement
Officer shall notify the owner and agent by�,' ifiet 4fi'A,.of the violation and direct the
owner and/or agent to take appropriate action to',:prvent further violations.
(3) If a second instance of disord pse of the permittedrpremises occurs within ninety (90)
days of an incident for whicki�4'6#' ce_in subsection 1.5602(2) was given, the Code
Enforcement Officer shall notify the ovimerand agent by certified mail of the violation and
shall also require the owner and agent td �sqb iiit within15 days a written report of the
actions taken, and proposed to ber.itaker�; by'" yt/tler and/or agent to prevent further
disorderly use of the permitted premses. r
(4) If a thirdAhcident of disorderly use 4,;the permitted premises occurs within ninety (90)
days 'after lh' second bf any two previOs xtnstances of disorderly use for which notices
were sent t6th6 wn6rri0nd went pursuant to this subsection, the short-term rental permit
a be revokedf;�§Us n e i,' rE of mewed. An action to revoke, suspend, or not renew
r:a 13ernrtlt ►rider thiS=subsection 315:800 shall be initiated by the Code Enforcement Officer
in the mar�raar=descnbrwd below.
315.700 PERMIT SUSPENSION OR REVOCATION:
315.701 tt cedure:
(1) Every short-tertn'rental permit issued under this Section is subject to suspension or
revoca#ran,after a notice and hearing conducted by the City Manager for any violation of
this Sec
titer any other ordinance of the City or the law of the state.
(2) The Code Enforcement Officer may recommend suspension or revocation of a short-term
rental permit to the City Manager. Notice of the hearing for suspension or revocation of a
permit shall be given by the City Manager in writing, setting forth specifically the grounds
of complaint and the time and place of hearing. Such notice shall be mailed, postage
prepaid, to the owner and agent at his/her last known address at least five (5) days prior
to the date set for hearing.
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315.702 Effect of Suspension or Revocation: If a short-term rental permit is suspended or
revoked, it shall be unlawful for anyone to thereafter allow any new short-term rental
occupancies of the dwelling until such time as a valid short-term rental permit is restored
by the City.
315.800 APPEAL: The decision of the City Manager to deny, suspend, or revoke a short-term
rental permit following a hearing as provided for in subsections 315.408 or 315.701 can
be appealed by petitioning the Minnesota Court of Appeals by a writ of certiorari.
315.900 POSTING: The following language shall be posted at or near the entrance of every short
term rental dwelling unit. The posting shall be printed in..amanimum 18 point font.
All short term rental of dwelling units shall comply with;,City Code Section 315.
These posted regulations are a summary of a portion=of,the short term rental
regulations for additional information `please refer to City Opde Section 315 or
contact City Hall.
• No person shall undertake'the short-term rental of any dwellinc3"nit without a
City permit.
• All permits shall expire on December 31.'
• No permit shall be;transferable.
• Every permitted=ay,-at
shall have an agent within 30 miles available 365
days a year, 24 the following hone numbers
and/or ='(o respond immediately to complaints and contacts
relating to the dwelling unit.
• The ,Maximum this dwelling unit is:
ht- ,excluding children under three (3) years of age.
• � No watercraft shall be permanently or temporarily placed or stored within the
s.,ide yard setback of the permitted premises.
•
'Disorderly bbnduct is prohibitest=: All disorderly conduct will be reported to the
propety's age it and=the Prior Lake Police Department.
Increasedr,,noise regulations are in place between the hours of 10 p.m. and 7
a.m.
• A6.violation of this,Section shall constitute a misdemeanor.
315.1000 PENALTY: Any,person Who undertakes or allows any violation of this Section shall be
,guilty of a misdemeanor and shall, upon conviction thereof, be punished by a fine or by
imprisonment, or:both, in accordance with the provisions of Minnesota State Statutes.
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