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HomeMy WebLinkAbout1185 Ord (Section 41-8, Short Term Home Rental Regulations)City of Stillwater Washington County, Minnesota ORDINANCE NO. 1185 AN ORDINANCE AMENDING SECTION 41-8 OF THE STILLWATER CITY CODE REGARDING SHORT TERM HOME RENTAL REGULATIONS The City Council of the City of Stillwater does ordain: SECTION 1 REPEAL AND REPLACE. Stillwater City Code Chapter 41-8 regarding short term home rental regulations is hereby repealed and replaced as follows: Sec. 41-8. — Short term home rental dwelling units. Subd. 1. Purpose. It is the purpose of this section to protect the public health, safety and welfare of those who stay in short term rental dwelling units by adopting a rental dwelling license program. The operation of rental properties is a business enterprise that includes certain responsibilities. Rental owners, operators and managers are responsible to take such reasonable steps as are necessary to ensure that the guests who occupy such rental dwelling units, as well as neighboring properties, may pursue the quiet enjoyment of the normal activities of life in surroundings that are safe, secure, and sanitary, free from noise, nuisances and annoyances, and free from unreasonable fears about safety of persons and property. Subd. 2. Definitions. Words used in this section shall have the following meanings unless otherwise defined in this section. (1) City Inspection Report means a rental dwelling inspection report prepared and signed by the fire department and building department. (2) City Administrator means the Stillwater City Administrator or designee. (3) Operator or Manager means any person who has charge, care or control of a rental dwelling unit. (4) Owner or Licensee means any person agent, operator, firm or corporation having a legal or equitable interest in the property or recorded in the official state, county or city records as holding title to the property or otherwise having control of the rental dwelling unit property. (5) Person means an individual, corporation, firm, association, company, partnership, organization or any other group acting as a unit. (6) Reinspection means a follow-up city inspection that is: (a) Conducted to determine if a code violation has been corrected; (b) Necessary because a licensee, owner or other responsible party fails to attend a scheduled inspection; (c) Necessary because a scheduled inspection does not occur or is prevented from occurring due to an act of a property owner or agent; or (d) Any inspection following an initial inspection. Rental Dwelling means any dwelling used for residential occupancy by one or more persons who are not the owner. (8) Rental Dwelling Unit means any room or rooms, or space, in any rental dwelling designed or used for residential occupancy by one or more persons who are not the owner. Short Term Home Rental means a rental dwelling or rental dwelling unit that is offered to transient guests for a period of Tess than 30 consecutive days. Subd. 3. License Required. (1) General Rule. No person, partnership, business entity, or corporation shall operate a short term home rental dwelling or rental dwelling unit in the city without a license. (2) City council action. Upon receipt of a completed application, the City Council may take any of the following actions on new license applications: (a) Approve the license; (b) Deny the license; (c) Approve a provisional license; (d) Approve the license with reasonable conditions; or (e) Continue the license application for good cause. (3) Applications. The license application must be submitted on a form provided by the city and must include all the information requested on the application form, in addition to the following information: (a) Property Owner Information. (7) (9) (i) The name, address and complete information of the property owner, if the property owner is an individual, including social security number. (ii) The name, address and complete information of at least one officer, manager or director, if the property owner is a business entity, including the name of the business entity, the state of formation, the applicants federal tax identification number and state employer identification number. (b) Property contact information. The applicant must provide 24-hour contact information for one person in any of the following categories: (i) At least one owner of the rental dwelling or rental dwelling unit; or (ii) At least one person, if different from the owner, who is responsible for compliance with this and any other 2 code requirement pertaining to the rental dwelling or rental dwelling unit, such as a property manager, who must reside in the Twin Cities 7-County metropolitan area or is able to respond to complaints within 60 minutes or less; or (iii) Any of the owner's agents responsible for management of the rental dwelling or rental dwelling unit, such as a property management company and the name and contact information of a person at the property management company; or (iv) Any vendors and all vendees, if the rental dwelling or rental dwelling unit is being sold pursuant to a contract for deed. The City Clerk must be notified in writing of any changes to the name(s) provided on the application. (c) Insurance. The licensee must provide proof of sufficient and suitable insurance with the license application. (d) Inspection report. The application must be accompanied by a satisfactory city inspection report signed by the fire department and building department. A property owner or agent is required to be onsite during the scheduled inspection. A property owner or agent may cancel or re -schedule an inspection no less than 24 hours of the scheduled inspection time or a re -inspection fee will apply. The inspection must have been completed no more than 60 days prior to submission of the license application. If the inspection identifies items that must be corrected, all corrections must be completed and verified by the city before the license will be considered. (e) License fee. The application must be accompanied by payment in full of the required license fee. The license application fee will be determined by the City Council and listed in the city fee schedule. (4) Background Investigations. (a) For all new applications, a background investigation will be conducted on the property owners and managers listed on the application, consistent with Minn. Stat. §299C. The city may request additional information from the license applicant regarding all property owners, if the property is owned by individuals or regarding all officers, managers or directors, if the property is owned by a business entity, and may conduct additional background investigations as it deems necessary. The applicant shall pay a background investigation fee for each background investigation conducted. (b) For renewal applications, background investigations are not required and no background investigation fee shall be required, however, the Police Department may conduct a background investigation at its sole discretion, with consent of the applicant. Changes in ownership. A license is non -transferable. If there is a change in the ownership of the rental dwelling or rental dwelling unit, a new license is required. License term. The term of the license is three (3) years. Renewal applications. Renewal applications shall submit and comply with all of the requirements of a new application, except for the background investigation. If all the requirements are met, no changes have been made on the application since the previous application, a satisfactory inspection report is submitted, and there have been no violations of this ordinance in the previous 3 years, renewal applications may be approved administratively by the Community Development Department. (8) Guest register. As a condition of the license, the applicant must, as a continuing obligation, maintain a current register of guests and other persons who have a lawful right to occupancy of rental dwellings or rental dwelling units. In its application, the applicant must designate the name of the person or persons who will have possession of the register and must promptly notify the City Administrator or designee of any change in the identity, address or telephone numbers of such person. The register must be available for inspection by city officials at all times. (5) (6) (7) (9) Display of license certificate. The license certificate must be exhibited in a conspicuous place at or near the entrance to the rental dwelling or rental dwelling unit. Subd. 4. Exemptions. This section does not apply to and no license is required for the following: (1) Hotels (2) Motels (3) Bed and breakfasts, which are subject to requirements in City Code section 31-504 (4) State -licensed residential care facilities (5) Nursing homes Subd. 5. Rental license caps for short term rental licenses. For all zoning districts where short term rental dwelling or dwelling units are allowed, no more than 50 licenses shall be approved in total. The rental cap restrictions imposed by this section does not apply to the Central Business District, as long as the licensee can meet all other conditions of this ordinance. Subd. 6. Performance Standards. All rental dwelling or rental dwelling units shall be subject to the performance standards identified below. (1) Zoning. Short term home rentals shall only be allowed in specific zoning districts as identified in City Code section 31-315 (allowable 4 Events. Events are not allowed to be hosted by guests on the premises. For purposes of this section 41-8, an event means a gathering on the premises of more than three un-registered guests. Events hosted by the property owner are allowed but must comply with all applicable city ordinances and policies, including the prohibition on renting out private residential property for events. (4) There shall be no change in the exterior appearance of the rental dwelling, rental dwelling unit or premises, or other visible evidence of the conduct of a short term home rental, except that additional on -site city code compliant parking may be provided. Maintenance standards. It is the responsibility of the licensee to assure that every rental dwelling or rental dwelling unit is maintained in compliance with all city ordinances and state laws. A violation of any of the following laws and ordinances constitutes a public nuisance: (a) Building Code (Chapter 33); (b) Animal regulations (Chapter 27); (c) Minnesota State Fire Code (Section 23-1, subd 1); (d) Public nuisance regulations (Chapter 38); (e) Parking violations (Chapter 51). Subd. 7. Responsibility for acts of manager. Licensees and owners are responsible for the acts or omissions of any manager. Subd. 8. Additional Inspections. The Building Official, Building Inspector, Fire Department personnel, police officers and their respective representatives, are authorized to make inspections reasonably necessary to enforce this ordinance. All authorized inspectors have the authority to enter any rental dwelling or rental dwelling unit at all reasonable times. Each owner of a rental dwelling or rental dwelling unit shall give the authorized city official access to any part of such rental dwelling or rental dwelling unit at reasonable times for the purpose of inspection, maintenance, repairs or alterations as are necessary to comply with the provisions of this ordinance. If any owner, owner's agent or occupant of a rental dwelling or rental dwelling unit fails or uses for residential zoning districts) and section 31-325 (allowable uses for non-residential zoning districts) (2) Parking requirements. In all zoning districts, including the CBD, all guest parking for a rental dwelling or rental dwelling unit must be on an improved driveways and improved parking surfaces that is located on - site. In addition, the rental dwelling or rental dwelling unit must meet the parking requirements in the applicable zoning ordinance for that use (Chapter 31). For current license holders (as of the date of adoption of the ordinance) that are legal nonconforming in regard to these parking requirements, the license holder may continue to renew the license, but may not expand the use. If the license is discontinued, revoked, suspended or terminated, or otherwise lapses, the license may not be reapproved without meeting the parking requirements herein. (3) (5) 5 refuses to permit entry to a rental dwelling or rental dwelling unit for an inspection pursuant to this subdivision, the inspector may seek an administrative search warrant authorizing such inspection. Subd. 9. Summary action. (1) Emergency. When the conduct of any owner or owner's agent, representative, employee or guest, or the condition of the rental dwelling or rental dwelling unit, or the property in or on which it is located, is detrimental to the public health, sanitation, safety and general welfare of the community, or guests of the rental dwelling or rental dwelling unit so as to constitute a nuisance, fire hazard or other unsafe or dangerous condition and thus give rise to an emergency, the Building Official has the authority to summarily condemn or close individual rental dwelling units or areas of the rental dwelling as the Building Official deems necessary. (2) Posted to prevent occupancy. Whenever any rental dwelling or rental dwelling unit is found to be unfit for human habitation under Section 41-8, subd. 9(1), it shall be posted by the Building Official on the door of the rental dwelling or rental dwelling unit, whichever the case may be, to prevent further occupancy. No person, other than the Building Official or their designee, shall remove or alter any posting. The Building Official will post the date the rental dwelling or rental dwelling unit shall be vacated and no person shall reside in, occupy or cause to be occupied that rental dwelling or rental dwelling unit until the Building Official permits it. Subd. 10. License denial, suspension or revocation. Depending upon the circumstances, nature and severity of the violation of any of the above -stated provisions, the City Council may hold a license hearing for consideration of suspension, revocation or conversion to a provisional license, if deemed appropriate. Any short term home rental license may be suspended or revoked for one or more of the following reasons: (1) It is the third substantiated and relevant complaint or violation of the ordinance within a 12-month period. (2) The licensee has failed to pay all of the appropriate fees related to the license, or is delinquent on any other city fees; The licensee has made fraudulent statements, misrepresentations, not fully disclosed information or made false statements in the application for or in the course of the licensee's business; (4) The licensee has been convicted of any crime or offense in the previous five years involving or relating to the short term home rental business and the licensee has failed to show competent evidence of sufficient rehabilitation and present fitness to perform the duties of the business; (5) The licensee has acted in an unauthorized manner or beyond the scope of the license granted. (3) 6 Subd. 11. Violations. A violation of this ordinance is a misdemeanor. However, the city may use alternative enforcement methods, including issuing an administrative citation pursuant to Section 22-10. Subd. 12. Lodging and Sales taxes. In addition to state sales tax, short term home rentals are required to pay the city lodging tax directly to the city on a quarterly basis. The property owner must provide information on a web -based booking service(s) used for the property. If no sales are made during a quarter, a report must be submitted to the city stating that no sales were made or lodging tax collected during that quarter. Subd. 13. No warranty by city. By enacting and undertaking to enforce this section, neither the city, nor its City Council, agents or employees warrant or guaranty the safety, fitness or suitability of any rental dwelling or rental dwelling unit in the city. Owners and guests should take appropriate steps to protect their interests, health, safety and welfare. SECTION 2 SUMMARY PUBLICATION. Pursuant to Minnesota Statutes, Section 412.191, in the case of a lengthy ordinance, a summary may be published. While a copy of the entire ordinance is available without cost at the office of the City Clerk, the following summary is approved by the City Council and shall be published in lieu of publishing the entire ordinance. The ordinance regarding short term home rental regulations has been amended to eliminate the class A, B, C and D licenses. All short term home rentals, except bed and breakfasts, will require a license from the City Council and renewal applications may be administratively approved. The ordinance establishes that no more than 50 licenses will be issued to all zoning districts in which they are allowed, except the Central Business District, which has no cap on the number of licenses. SECTION 3 EFFECTIVE DATE. This ordinance shall be effective after its passage and publication according to law. Adopted by the City Council of the City of Stillwater this 21 st day of June, 2022. C101= 1 LW ER Q ATTE T: Beth Wolf, City Cler Ted Kozlowski, Mayor 7 AFFIDAVIT OF PUBLICATION STATE OF MINNESOTA ) as COUNTY OF WASHINGTON Rhonda Herberg being duly sworn on an oath, states or affirms that he/she is the Publisher's Designated Agent of the newspa- per(s) known as: Stillwater Gazette with the known office of issue being located in the county of: WASHINGTON with additional circulation in the counties of: WASHINGTON and has full knowledge of the facts stated below: (A) The newspaper has complied with all of the requirements constituting qualifica- tion as a qualified newspaper as provided by Minn. Stat. §331A.02. (B) This Public Notice was printed and pub- lished in said newspaper(s) once each week, for 1 successive week(s); the first insertion being on 06/24/2022 and the last insertion being on 06/24/2022. MORTGAGE FORECLOSURE NOTICES Pursuant to Minnesota Stat. §580.033 relating to the publication of mortgage foreclosure notices: The newspaper complies with the conditions described in §580.033, subd. 1, clause (1) or (2). If the newspaper's known office of issue is located in a county adjoining the county where the mortgaged premises or some part of the mortgaged premises described in the notice are located, a substantial portion of the newspaper's circulation is in the latter county. Designated Agent Subscribed and sworn to or affirmed before me on 06/24/2022 by Rhonda Herberg. Notary Public we�wiwe^' DARLENE MARIE MACPHERSON NOTARY PUBLIC - MINNESOTA My Commission Expires Jan 31 1 2024 Rate Information: (1) Lowest classified rate paid by commercial users for comparable space: $40.00 per column inch CITY OF STILLWATER ORDINANCE NO. 1185 AN ORDINANCE AMENDING SECTION 41-8 OF THE STILLWATER CITY CODE REGARDING SHORT TERM HOME RENTAL REGULATIONS The City Council of the City of Stillwater does ordain: The ordinance re- garding short term home rental regulations has been amended to eliminate the class A, B, C and D licenses. All short term home rentals, except bed and breakfasts, will require a license from the City Council and renewal applications may be administratively approved. The ordinance establishes that no more than 50 licenses will be issued to all zoning districts in which they are allowed, except the Central Business District, which has no cap on the number of licenses. Approved this 21st day of June, 2022. Do not hesitate to contact the City Clerk's Office (651) 430-8802 if you have any questions or need further information. Signed: Beth Wolf, City Clerk Published in the Stillwater Gazette June 24, 2022 1238988 Ad ID 1238988