HomeMy WebLinkAbout8B-Short Term Rental Ordinance 04 PRI()
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Prior Lake,MN 55372
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CITY COUNCIL AGENDA REPORT
MEETING DATE: APRIL 13, 2015
AGENDA#: 8B
PREPARED BY: FRANK BOYLES, CITY MANAGER
PRESENTED BY: FRANK BOYLES
AGENDA ITEM: CONSIDER APPROVAL OF SHORT TERM RENTAL ORDINANCE
DISCUSSION: Introduction
The purpose of this agenda item is to determine whether the City Council
would like to adopt a short term rental license as proposed or with
amendments.
History
For more than a year the City has received complaints about one or more
properties which have been rented on a short term basis. A City Council
work shop was conducted and the City Attorney was subsequently directed
to prepare an ordinance on the topic. The City Attorney's Office collected
ordinances from cities both within and outside of the metro area. An
ordinance was drafted. The draft was reviewed with staff and modified.
Earlier this year we invited owners, agents and persons concerned about
short term rental to a meeting to discuss the ordinance. From that meeting
numerous ordinance amendments were made. A public hearing was then
noticed and conducted by the City Council. The changes from that hearing
have been included in the attached ordinance draft.
Current Circumstances
Based upon the public hearing and subsequent discussion, the ordinance
was modified in the following areas:
• Agent
• Permitted number of occupants
• Number of rentals
• List of tenants
• Enforcement
• Noise and fires
• Posting
Revisions were not made on the following topics:
• Guests— no consensus and enforcement problems
• Lower occupant limits —no consensus
• Prohibition or limit district— no consensus
• Fines — no statutory authority
Phone 952.447.9800 / Fax 952.447.4245/www.cityofpriorlake.com
Conclusion
The City Council should determine if the ordinance as adopted or with
modifications should be adopted and take action as it deems appropriate.
ISSUES: Locating interested persons on this topic has been imperfect. Some of the
VRBO information was inadequate so we undoubtedly failed to reach some
owners and agents. We did however, notice the public hearing, the agendas
have appeared in the City's legal newspaper together with one or more
articles on this topic.
We have received an inquiry after the public hearing from an interested
party. We have invited that person to share whatever input they might have
as soon as possible. The e-mail response is attached for your information.
The police department has expressed some concerns about enforcement.
Calls regarding these types of nuisances, regardless of source, are a lower
priority compared with life safety issues and can result in extensive time
commitment, especially if cooperation is not forthcoming. While the agent of
a short term rental is to be within 30 miles of the rental and available 24
hours a day by ordinance, this does not guarantee that the agent will be on
site within an acceptable period of time.
Concern has also been expressed that the ordinance has evolved from
experience with only one or two short term rentals rather than the majority
of the units. The question is how widespread is the issue? While there is a
commitment to enforce the disorderly conduct portions of the ordinance
there is a concern that the department is greatly hampered by restrictions on
entering such facilities for inspection purposes for comparatively minor
violations.
The City Council has asked if a lodging tax could be imposed upon short
term rentals. Shown below is an excerpt from an email from Sarah
Schwarzhoff on this topic.
Lodging Tax: Minn. Stat. 469.190 provides authority for a
statutory city to impose a lodging tax of up to 3% of gross receipts.
If such a tax is imposed 95% of the proceeds must be used to
fund a local convention or tourism bureau for the purpose of
marketing and promoting the City as a tourist convention center.
The funds cannot be used for capital expenditures. The City may
enter into an agreement with the commissioner of revenue
relating to the collection of the tax. At this point, there are two
major questions:
Can the City apply the tax to just short term rentals or must it apply
to all "lodging"?
The statute does not define lodging tax or lodging. It does provide
a list of what can be taxed: "Consideration of lodging at a hotel,
motel, rooming house, tourist court, or resort — other than the
renting or leasing of it for a continuous period of 30 days or more."
It is not clear if the City could impose a tax on just short term
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rentals or if it would need to impose an across the board tax on
all lodging.
How can the funds be spent?
There are two requirements for expenditure of the funds: First,
that it be to fund a local convention or tourism bureau and second,
that it be for the marketing and promoting of the City as a tourism
convention center. Essentially every expenditure will need to
meet both requirements. There is no definition of "local
convention or tourism bureau". Presumably this would include
some type of chamber of commerce or visitors bureau. Minn. Stat.
469.186 permits the City to establish a"bureau of information and
publicity for the purpose of furnishing tourists information and for
outdoor advertising and for preparing, publishing and circulating
information and facts concerning the recreational facilities and
business and industrial conditions of the community". This is likely
the type of bureau the City would establish. There is no specific
process for establishment of such a bureau but as the bureau
would receive and expend public funds it would need to be
carefully regulated. Each expenditure made by the bureau with
lodging tax funds would need to be for marketing and promoting
the City as a tourist convention center.
There is not a great deal of information on this process either in
statutes or cases. Therefore, if it is something the Council is
interested in I recommend we contact cities that have imposed
the lodging tax to discuss the advantages, disadvantages and
procedures.
FINANCIAL It is hard to say what the financial impact might be. We do not know the
IMPACT: number of short term rentals operating in the community nor do we know
how many of them will decide to apply for a permit. Our expectation of permit
cost (at least for the first year) $200 per year. The permit fee would be
adjusted in subsequent years based upon actual cost experience both in
code enforcement and the police department.
ALTERNATIVES: If the Council wishes to adopt the ordinance with or without amendments,
the following actions are necessary: Adopt the ordinance, approve the
summary ordinance, and approve the resolution authorizing publication of
the summary in lieu of the entire ordinance.
1. Approve the short term rental ordinance as presented or with revisions
2. Approve the summary ordinance
3. Approve the resolution authorizing summary publication
4. Do not take actions 1 through 3 and direct the staff accordingly.
RECOMMENDED If the council wishes to adopt the ordinance, Alternatives 1, 2 and 3 should
MOTION: be approved.
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CITY OF PRIOR LAKE
ORDINANCE NO.
AN ORDINANCE AMENDING PART 3 OF THE PRIOR LAKE CITY CODE BY
INSERTING A NEW SECTION 315 RELATING TO SHORT-TERM RENTAL AND
ADOPTING BY REFERENCE CITY CODE PART 1 WHICH AMONG OTHER THINGS
CONTAINS PENALTY PROVISIONS.
THE CITY COUNCIL OF THE CITY OF PRIOR LAKE, MINNESOTA, ORDAINS:
Section 1. City Code Part 3, is hereby amended by inserting Section 315 to read as
follows:
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 conducted, operated, and
maintained so as not to become a nuisance to the surrounding neighborhood or an
influence that fosters blight and deterioration or creates a disincentive to reinvest in
the community.
315.200 SCOPE: This section applies to the short-term rental of all dwelling units located in the
City's Residential Use Districts.
315.300 DEFINITIONS: The following words and terms when used in this Section shall have the
following meanings unless the context clearly indicates otherwise:
Bedroom: A habitable room within a single-family dwelling which is used, or intended
to be used, primarily for the purpose of sleeping, but shall not include any kitchen,
dining room, or living room.
Code Enforcement Officer. An employee of the City designated as the Code
Enforcement Officer. The term Code Enforcement Officer also includes all City
employees authorized by City Code Section 104.400 to issue citations.
Dwelling unit: One or more rooms physically arranged so as to create an
independent housekeeping establishment for occupancy by one family with separate
toilets and facilities for cooking and sleeping.
Occupant 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
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, barge, sailboard, or any similar device used
or useable for carrying and transporting persons on the public waters.
315.400 PERMIT REQUIRED: No owner shall undertake the short-term rental of any dwelling unit
to a tenant or tenants unless properly permitted as hereinafter provided.
315.401 Application: An owner desiring to undertake or allow the short-term rental of a
dwelling unit in one of the City's Residential Use Districts shall apply to the Code
Enforcement Officer for a short-term rental.permit. The application shall by submitted
by the owner. The permit application shall be on a form prescribed by the City and
include all required information.
315.402 Permit Fee: Each application shall be accompanied by payment in full of the required
permit fee. The annual permit fee shall be determined by the City Council and set forth
in the City fee schedule. The fee shall not be prorated.
315.403 Issuance of Short-Term Rental Permit:
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(1) If the Code Enforcement Officer determines that an applicant has met the
requirements for issuance of a short-term rental permit, the Code Enforcement Officer
shall issue the applicant a short-term rental permit.
(2) If the Code Enforcement Officer determines that an applicant has not met the
requirements for issuance of a short-term rental permit, the Code Enforcement Officer
shall endorse on such application his/her disapproval and his/her reasons for the
same, and shall return the endorsed application to the applicant to notify the applicant
that his/her application is denied and that no permit will be issued.
315.404 Expiration of Permit: Except as otherwise provided in this Section, all short-term
rental permits shall expire annually on December 31 of each year unless suspended
or revoked earlier.
315.405 Renewal of Permit: Applications for renewal of an existing short-term rental permit
shall 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 Reauired: No short-term rental permit shall be issued without the
designation of a local agent. The agent must live and work within 30 miles of the
dwelling unit. The Agent may, but is not required to be, the owner. One person may
be the agent for multiple dwelling units. At all times, the agent shall have on file with
the Code Enforcement Officer a primary and a secondary phone number as well as a
current address. The agent or a representative of the agent shall be available 24
hours a day during all times that the dwelling unit is being rented at the primary or
secondary phone number to respond immediately to complaints and contacts relating
to the dwelling unit. The Code Enforcement Officer shall be notified in writing within
two (2) business days of any change of agent. The agent shall be responsible for the
activities of the tenants and maintenance and upkeep of the dwelling unit and shall be
authorized and empowered to receive service of notice of violation of the provisions of
City ordinances and state law, to receive orders, and to institute remedial action to
effect such orders, and to accept all service of process pursuant to law.
315.408 Denial of Short-Term Rental Permit: Any applicant aggrieved by the denial of a
short-term rental permit or the non-renewal of an existing permit may appeal to the
City Manager. Such appeal shall be taken by filing with the City Manager within ten
(10) days after the denial of a permit, a written statement requesting a hearing before
the City Manager and setting forth fully the grounds for the appeal. A hearing shall be
held within fifteen (15) days of receipt of the request. Notice of the hearing shall be
given by the City Manager in writing, setting forth the time and place of hearing. Such
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notice shall be mailed, postage prepaid, to the applicant at his/her last known address
at least five (5) days prior to the date set for hearing.
315.500 RESPONSIBILITY OF OWNERS: No owner shall undertake or allow the short-term rental
of a dwelling unit in a Residential Use District that does not comply with all applicable
City ordinances, the laws of the State of Minnesota, and this Section. It shall be the
owner's responsibility to ensure that all tenants, occupants, and guests comply with
the following:
315.501 Maximum Overnight Occupancy: The number of overnight occupants allowed for a
short-term rental shall be limited as set out below. Children under three (3) years of
age are not be counted toward the limit.
For lots of'/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
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 permanently 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 short-term rental shall conform
to all building and zoning requirements of the City Code, special permits issued by the
City, and the laws of the State of Minnesota.
315.505 Rental Limit: No dwelling unit shall be rented out more than 1 time per every 7
consecutive days.
315.506 Occupants: The agent shall maintain a list of all current occupants of each dwelling
unit. The agent shall make the list available to City staff and/or law enforcement upon
request.
315.600 DISORDERLY CONDUCT:
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 to be disorderly. For purposes of this
Section, disorderly conduct includes but is not limited to, a violation of any of the
following statutes or ordinances:
(1) Minn. Stat. §§609.75-609.76, which prohibit gambling;
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(2) Minn. Stat. §§609.321-609.324, which prohibit prostitution and acts relating thereto;
(3) Minn. Stat. §§ 152.01-152.027, which prohibit the unlawful sale or possession of
controlled substances;
(4) Minn. Stat. § 340A.401, which prohibits the unlawful sale of alcoholic beverages;
(5) Minn. Stat. § 340A.503, which prohibits the underage consumption of alcoholic
beverages;
(6) Minn. Stat. §609.595, which prohibits damage to property;
(7) Minn. Stat. §§ 976.021, 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
paraphernalia;
(11) City Code Section 605, which prohibits public nuisances;
(12) City Code Sections 803.200 and 803.300, which prohibit public drunkenness and
disturbing the peace'
(13) City Code Sections 601.201 and 601.600, which prohibits littering on private
or public property;
(14) City Code Sections 802.901-802.903, which prohibits pets from running at
large and requires immediate waste removal;
(15) City Code Section 1102.700, which prohibits parking vehicles on required yard
or landscape areas;
(16) City Code Section 605.1006, which prohibits nuisance noise including
additional restrictions between the hours of 10:00 p.m. and 7:00 a.m.;
(17) Minnesota State Fire Code 302 and 307-307.5, which limit recreational fires to
no larger than 3'X3' feet, natural wood only, attended until extinguished,
conditions permitting; and
(18) Minn. Stat. §§ 624.20-624.21 which prohibits exploding fireworks.
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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 Code Enforcement Officer
upon evidence to support such a determination. It shall not be necessary that criminal
charges are brought to support a determination of disorderly use, nor shall the fact of
dismissal or acquittal of such a criminal charge operate as a bar to adverse permit
action under this Section.
(2) Upon determination by the Code Enforcement Officer that a permitted premises was
used in a disorderly manner, as described in subsection 315.601, the Code
Enforcement Officer shall notify the owner and agent by certified mail of the violation
and direct the owner and/or agent to take appropriate action to prevent further
violations.
(3) If a second instance of disorderly use of the permitted premises occurs within one
year of an incident for which notice in subsection 315.602(2) was given, the Code
Enforcement Officer shall notify the owner and agent by certified mail of the violation
and shall also require the owner and agent to submit within 15 days a written report of
the actions taken, and proposed to be taken, by the owner and/or agent to prevent
further disorderly use of the permitted premises.
(4) If a third incident of disorderly use of the permitted premises occurs within one year
after the second of any two previous instances of disorderly use for which notices
were sent to the owner and agent pursuant to this subsection, the short-term rental
permit may be revoked, suspended, or not renewed. An action to revoke, suspend, or
not renew a permit under this subsection 315.600 shall be initiated by the Code
Enforcement Officer in the manner described below.
315.700 PERMIT SUSPENSION OR REVOCATION:
315.701 Procedure:
(1) Every short-term rental permit issued under this Section is subject to suspension or
revocation after a notice and hearing conducted by the City Manager for any violation
of this Section or 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.
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.
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315.703 Effect of Revocation: No person who has had a permit revoked under this Section
shall be issued a short term rental permit for three years from the date of revocation.
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 a minimum 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 Code Section 315
or contact City Hall.
• No person shall undertake the short-term rental of any dwelling unit
without a City permit.
• The property lines of this unit are marked or identified as
follows
• Every permitted premises shall have an agent within 30 miles available
during all times the unit is rented, 24 hours a day at the following phone
numbers and/or to respond
immediately to complaints and contacts relating to the dwelling unit.
• The Maximum Overnight Occupancy for this dwelling unit is:
occupants. Not counting children under three (3) years of age.
• No watercraft shall be permanently or temporarily placed or stored within
the side yard setback of the permitted premises.
• Disorderly conduct is prohibited. All disorderly conduct will be reported to
the property's agent and the Prior Lake Police Department.
• Increased noise regulations are in place between the hours of 10 p.m. and
7 a.m.
• Littering is prohibited.
• Recreational fires are limited please check with the City to determine
what prohibitions exist for current conditions.
• Any 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.
Section 3. City Code Part 1 entitled "Administrative" is hereby adopted in its entirety, by
reference, as though repeated verbatim herein.
Section 4. This ordinance shall become effective from and after its passage and
publication.
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Passed by the City Council of the City of Prior Lake this 13th Day of April, 2015.
ATTEST:
Frank Boyles, City Manager Kenneth L. Hedberg, Mayor
Published in the Prior Lake American on the day of , 2015.
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RESOLUTION 15-xxx
A RESOLUTION APPROVING THE SUMMARY OF ORDINANCE AND ORDERING THE
PUBLICATION OF SAID SUMMARY
Motion By: Second By:
WHEREAS, On April 13, 2015 the City Council adopted Ordinance amending City Code Part 3 by
inserting a new Section 315 relating to short-term rental;and
WHEREAS, Minnesota Statutes requires publication of an Ordinance in the official newspaper before it becomes
effective;and
WHEREAS, Minnesota Statutes also allows the publication of a summary of an ordinance if the City Council finds
that the summary is an accurate representation of the Ordinance; and
WHEREAS, The City Council desires to publish a summary of the short-term rental ordinance and has determined
the publication of a summary of this ordinance will meet the intent of the statute.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. Ordinance is lengthy.
3. The text of summary of Ordinance attached hereto as Exhibit A, conforms to M.S. §
331A.01, Subd. 10, and is approved, and publication of the title and summary of the Ordinance will clearly inform
the public of the intent and effect of the Ordinance.
4. The title and summary shall be published once in the Prior Lake American in a body type no smaller than brevier
or eight-point type.
5. A complete text of the newly amended City Code will be available for inspection at City Hall or in the Document
Center on the City of Prior Lake Website after
PASSED AND ADOPTED THIS 13th DAY OF APRIL 2015.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ❑ ❑ ❑ ❑ ❑
Nay ❑ ❑ ❑ ❑ ❑
Abstain ❑ ❑ ❑ ❑ ❑
Absent ❑ ❑ ❑ ❑ ❑
Frank Boyles, City Manager
Exhibit A
SUMMARY ORDINANCE NO. 115-xx
CITY OF PRIOR LAKE
ORDINANCE NO. 115-XX
AN ORDINANCE AMENDING PART 3 OF THE PRIOR LAKE CITY CODE BY
INSERTING A NEW SECTION 315 RELATING TO SHORT-TERM RENTAL AND
ADOPTING BY REFERENCE CITY CODE PART 1 WHICH AMONG OTHER THINGS
CONTAINS PENALTY PROVISIONS.
The following is only a summary of Ordinance No. The full text will available
for public inspection after by any person during regular office hours at City Hall or
in the Document Center on the City of Prior Lake Website.
SUMMARY: The Ordinance inserts a new Section 315 which provides regulation and permitting
for short-term rentals. Short-term rentals are any rental of 30 days or less in a residential zone.
This ordinance shall become effective from and after its passage and publication.
Passed by the City Council of the City of Prior Lake this Day of 2015.
ATTEST:
City Manager Mayor
Summary Ordinance to be published in the Prior Lake American on the_day of 2015.
2
April 8, 2015
To: Mayor and Prior Lake City Council Members
From: Connie Peer
2825 Spring Lake Road, Prior Lake, MN
RE: Short term property rentals
Dear Mayor, City Council Members,
I wanted to take some time to comment on the ordinance draft as sent to me
by Mr. Boyles this week. In general, I can support an ordinance governing
short term rentals if reasonable and deemed necessary by council. There are
areas in the present draft where I do take great exception. I would like to
address these, and provide input in hopes of your consideration. Thank you
for taking time to consider these perspectives.
315.501 Maximum overni!ht occupancy:
Implementing additional occupancy limits based on site size feels a bit
discriminating to me. Why would a single family home have any occupancy
reductions based on site size? Inside the home is where occupants sleep, not
outside in the yard. The property use and inherent rights are the same,
regardless of rental or owner occupied. It's still a single family home. Are
we also suggesting that any owner occupied home less than 2000sf in size,
and located on less than % acre is no longer appropriate for eight occupants
and must be reduced to something less because now we feel it does not have
an appropriate lot size? This simply does not make sense to me. In addition,
I would not be able to financially operate with this added restriction. I
would have no other option other than to challenge this component of the
ordinance if implemented. Although I don't agree with this component in
principle, grandfathering my property from this additional site size
restrictions would prevent any challenge.
The overnight occupancy ordinance as proposed based on home size
(Livable Square Footage) seems reasonable with the inclusion of the "child
adder provision". However, I don't agree with such a tight restriction of age
3 or younger. Children often sleep on couches, air mattresses, or in common
areas within the homes. This is normal and accepted in the short term rental
industry. For example, a typical traveling family might have an 8 year old,
two 4 year olds, and an infant. Age three feels arbitrary, hard to facility with
families, and difficult to enforce. I'm not suggesting we have no limits on
additional children,just open the age "bandwidth". Would you consider
amending the ordinance to state "no more than "X" minors" as opposed to
an actual age restriction? I can support the following example but would be
opposed to anything substantially less.
For Example: SF <1500 +1 minor
SF 1500-2000 +2 minors
SF >2000 +4 minors
For a moment, let's take several steps back and think about the reason for
occupancy limits. Unfortunately I was not at the workshop. However, I am
assuming all of the occupancy rules are largely tied to complaints about
large outdoor gatherings, additional daytime guests, birthday parties on site,
all of which that could add 10-20 people and stress to an adjacent neighbor.
If I am correct with this assumption, there are proven and effective ways an
owner can control, prevent, and/or limit this activity with a rental group. I
am much more in favor of controlling on site visitors as opposed to
controlling the number of overnight household occupants The city stated
this is hard to control. Maybe difficult for the city, but certainly not difficult
for the property owner to control. In my opinion, occupancy standards are
self-regulating. Rental families expect reasonable comfort. If the advertised
home does not have the capacity to comfortably house 12 people, a rental
group of 12 people simply is not going to enter into a contract and stay there,
regardless of ordinance language that is in place. I find it hard to believe that
we would have a complaint case where 12 people crammed into a two
bedroom home. I question how much value the occupancy language really
adds. I_would be happy to share more on visitation control methods with an
council member(s) that has an interest.
315.505 Rental Limit:
Proposed ordinance states "no dwelling shall be rented out more than one
time every seven consecutive days". Again, I was not at workshop but
assume this is to prevent the introduction of"weekend warrior" fears.
An Owners perspective —I too prefer long term tenants and regularly avoid
renting "just a summer weekend". A Seven day rental may sound great in
round table discussions, but not often the reality. Traveling families typically
come to the twin cities for "some other local metropolitan activity" and not
just a "vacation" where schedules would likely be more flexible for a
traveler. For example, scheduling "Monday to Monday", every consecutive
7 days,just is not practical time slot for a traveler or owner. One family
might stay 5-6 days, another might stay 9 or more days. Typically, these are
not weekend warriors looking for a party house. If so, our rental process
quickly "weeds these people out". Our typical rental family simply cannot
accommodate a rigid schedule. If I must adhere to a strict 7 day stretch, I
will have several 2-3 day gaps without income during a calendar month
which becomes substantial. It's hard enough for an owner to reasonably fill
a calendar without any additional ordinance restrictions. There are almost
4.5 weeks in a month. Can we please consider language that states "there
cannot be more than 6 rentals within a one monthep riod"? Assuming a
maximum of 6 rentals a month, this would virtually eliminate any rentals
less than 5 days, provide owners much needed flexibility, limit losses in
income, and still remain within the spirit of the ordinance. Will you please
consider a modification?
315.601 Disorderly Conduct Prohibited:
315.602 Determination of Disorderly Conduct:
315.700 Suspension and Revocation
In principle, I am in complete support of prohibiting disorderly renter
conduct. In fact, for years my contract explicitly prohibits noise after 10:00
pm, loud parties, group gatherings without my knowledge, and disturbances
to neighbors. A very big concern I have is how the process will assure fair
and consist implementation for an owner? Does the fact that a complaint
exists, automatically turn into a complaint with merit? Some rental homes
will not experience any issues, because a neighbor simply does not care that
the home next door is a rental home. In contrast, a rental home owner may
have a neighbor that is overly sensitive and making issues every day because
they simply don't like the fact the home is a rental. How does the ordinance
deal with this fairly and consistently? The ordinance draft states that the city
code enforcement officer will make a determination of any violation. From
whom does this violation complaint information come from? Is a complaint
alone enough to substantiate action? It's also hard to imagine a city code
Enforcement officer is going be able to personally respond in a timely
manner to investigate a weekend complaint at a rental home. I can only
support a determination of disorderly conduct if a code violation is backed
by a legitimate, responding_police officer, who has timely findings to
support a violation or otherwise dismiss a complaint. If sufficient evidence
exists, an actual citation is generated at time of incident and this should be
the standard for enforcement. I am extremely concerned that anything short
of this will create unfair and potentially biased interpretation of the
ordinance. This is not clear in the present language. Can you please provide
better clarity with these issues?
Furthermore, the suspension/revocation language appears unreasonably
harsh, its sole purpose as a visionary tool to eventually shut down and
effectively "prohibit" all short term rentals. Owner goals are to never have a
disorderly conduct violation and place excessive care in screening renters.
However, only one strike per year, by the uncontrolled actions of a renter, is
all it would take to eventually be shut down for three years. Is a three year
suspension really warranted? Is the ordinance intended to take this rental
owner out for good? What owner could carry a rental home for three years
without rental income? Under the proposed ordinance, an owner must be
perfect to maintain a license. Lighten the suspension and revocation
language such that they are reasonably sustainable for responsible owners.
As written, it's hard to imagine this would not be challenged at some point
in time. It raises the question if it is legal to impose disorderly conduct
strikes based on a renter's behavior, against an otherwise responsible owner,
which would then place a rental license in jeopardy?
As an Owner, I certainly don't want disorderly conduct to happen any more
than the City does. Why not hold the renters indirectly responsible? As an
owner, I have strong contractual language prohibiting disruptive conduct
backed by a large deposit that is at risk for renter. The renter agrees and
must sign in order for a rental to progress forward. This is standard on every
contract I enter. If a disruption occurs that I feel is legitimate, I can keep this
deposit. I typically hold this deposit for up to ten days as a "discovery
period" before releasing funds back to the renter.
Consider these Ideas...
- Why not require each rental owner to implement "standard language"
(approved by the city) in each rental contract addressing disorderly
conduct.
- Any disorderly citation that is issued by a police officer to a rental
occupant, would automatically impose a fine placed on the rental
owner. Rental owner has contractual language and deposit with renter
which provides financial protection against any citations from renter. I
could support an owner fine of up to $500 per rental group under the
right disorderly conduct terms. This is a substantial monetary amount
that would seem to be an easy implementation for the city and also
offers reasonable disorderly protection for the community. The burden
to collect and potentially penalize a renter is placed on the home
owner, not the city.
- Substantially lighten the suspension and revocation language. Rely on
normal police work to issue citations based on disorderly conduct and
assess sizeable owner fines as suggested in previous bullet. This will
minimize the city's resource and expenses associated with disorderly
conduct enforcement.
Last thoughts for today. O. Most rental owners already have many rental
contracts in place for the 2015 season. It would be very disruptive for these
traveling families, as well as owners to honor any new ordinance that begins
prior to Jan, 2016.
I would be happy to meet with any council member or city staff who has an
interest in meeting with me to obtain better understanding on anything
discussed in this letter. I would also ask that you strongly consider deferring
any upcoming ordinance decisions in order to draft clarity on issues, or
consider alternative solutions.
Because most of you are not directly in contact with a typical rental family,
it's hard to understand or see the value short term rentals can bring to the
community. I can't tell you enough how respectful and appreciative rental
families are, and the awesome impressions they depart with as they
experience the city of Prior Lake area and surrounding communities for the
first time. These are professional, working families, much like yours or mine
that spend money within the city. I truly believe that short term rental
properties can have a harmonious existence within the city. Thank you for
your time and your service to the community.
Respectfully,
Connie Peer
952-220-6045