HomeMy WebLinkAbout5H-Short Term Rental O� PRI()
u 4646 Dakota Street SE
Prior Lake, MN 55372
�tINNESOV?
CITY COUNCIL AGENDA REPORT
MEETING DATE: APRIL 27, 2015
AGENDA#: 5H
PREPARED BY: FRANK BOYLES, CITY MANAGER
PRESENTED BY: FRANK BOYLES
AGENDA ITEM: CONSIDER APPROVAL OF AN ORDINANCE REGULATING SHORT
TERM RENTAL
DISCUSSION: Introduction
The purpose of this agenda item is to determine whether the City Council
would like to adopt a short term rental license ordinance as part of the
consent agenda.
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.
At the April 13, 2015 city council meeting the city council continued their
discussion of this item. At the conclusion of the discussion the city council
adopted a motion directing the city attorney to make changes in the
ordinance and place it on the consent agenda for adoption.
Current Circumstances
Based upon the April 13, 2015 city council discussion the following changes
were directed:
• 315.403(2)Was amended to provide that if the code enforcement officer
recommends the denial of a license application the city manager may
either concur and assure that the applicant is notified as such or approve
the permit and direct the code enforcement officer to approve the permit.
• 315.408 Was amended to provide that an applicant once denied may
appeal to the city council rather than the city manager. The remainder of
the paragraph sets for the process, timeline and notifications for the
appeal.
Phone 952.447.9800 / Fax 952.447.4245/vvww.cityofpriorlake.com
• 351.505 Amends the rental limit to no more than 5 times per calendar
month.
• 315.701 Clarifies the suspension and revocation process by affirming
that the code enforcement officer may recommend suspension or
revocation of a license. If the city manager agrees the applicant is notified
in writing of the proposed action and the applicant's right to appeal to the
city council provided the applicant makes a written request within 10 days
of the notice. The hearing must be held within 30 days.
Conclusion
The City Council should determine if the staff has interpreted its intent
correctly.
ISSUES: Because of the considerable review and discussion this topic has received
already and the fact that the ordinance still requires publication in the official
newspaper the ordinance is recommended tonight on the consent agenda.
To accomplish the adoption as part of the consent agenda the city council
would adopt the ordinance, adopt the summary ordinance and adopt the
resolution authorizing publication of the summary ordinance all by one
motion under the consent agenda. In the event the council acts positively on
this item an amendment to the city fee schedule will be forthcoming.
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 experience both in code
enforcement and the police department.
ALTERNATIVES: If the Council wishes to adopt the ordinance the following actions are
necessary by one motion as part of the consent agenda:
1. Approve the short term rental ordinance as presented.
2. Approve the summary ordinance.
3. Approve the resolution authorizing summary publication.
RECOMMENDED Alternatives 1 through 3 as part of the consent agenda.
MOTION:
2
O� PRIO,
ti
U 4646 Dakota Street SE
Prior Lake,MN 55372
1'NESO�P
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.
Page 2 of 8
315.403 Issuance of Short-Term Rental Permit:
(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 provide the application and recommendation for denial to the City Manager.
The City Manager may either: (i) deny the application and return the endorsed
application to the applicant to notify the applicant that his/her application is denied and
that no permit will be issued; or (ii) direct the Code Enforcement Officer to issue the
applicant a short-term rental permit.
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 Required: 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 Council. Such appeal shall be taken by filing with the City Manager within ten
(10) days after the date of issuance of the written denial, a written statement
Page 3 of 8
requesting a hearing before the City Council and setting forth fully the grounds for the
appeal. A hearing shall be held within thirty(30) 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 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'h 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 'h 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 5 times per calendar
month.
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
Page 4 of 8
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;
(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. §§ 97B.021, 97B.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.;
Page 5 of 8
(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.
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 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. The City Manager shall review the
recommendation and the reasons supporting the recommendation and may suspend
or revoke the permit. The City Manager shall provide written notice to the owner and
agent of the suspension or revocation. The notice shall inform the owner and agent of
the right to appeal the decision of the City Manager to the City Council.
Page 6 of 8
(3) Any applicant aggrieved by the suspension or revocation of a short-term rental permit
may appeal to the City Council. Such appeal shall be taken by filing with the City
Manager within ten (10) days after date of issuance of the written suspension or
revocation notice, a written statement requesting a hearing before the City Council
and setting forth fully the grounds for the appeal. A hearing shall be held within thirty
(30) 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 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.
315.702 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.
315.703 Effect of Revocation: No person who has had a permit revoked under this Section
shall be issued a short term rental permit for one year from the date of revocation.
315.800 APPEAL: The decision of the City Council 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.
Page 7 of 8
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.
Passed by the City Council of the City of Prior Lake this day of ,
2015.
ATTEST:
Frank Boyles, City Manager Kenneth L. Hedberg, Mayor
Published in the Prior Lake American on the day of , 2015.
Page 8 of 8
tiO� P
U �y
4646 Dakota Street SE
1VNE9o�P Prior Lake, MN 55372
RESOLUTION 15-xxx
A RESOLUTION APPROVING THE SUMMARY OF ORDINANCE AND ORDERING THE
PUBLICATION OF SAID SUMMARY
Motion By: Second By:
WHEREAS, On April 27, 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 27th 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