HomeMy WebLinkAbout[05b] Short Term Residential Properties
Planning Commission Agenda Item 5b
MEETING DATE: June 8, 2020
AGENDA ITEM: Short Term Residential Properties (STP)
SUBMITTED BY: Community Development
STALL RECOMMENDATION: Discussion and Input Only
PREVIOUS PLANNING COMMISSION ACTION:
BACKGROUND INFORMATION: The Popularity of Short-Term Residential Properties or
STPs have grown substantially in recent years thanks to innovative traveling apps that allow you
to reserve room in someone’s home, rather than a hotel. According to AIRDNA Apps such as
Airbnb and Vrbo have seen an astonishing increase in the number of rentals in the past 3 years
by 105%. This could be attributed to the fact that STPs are less expensive than a hotel and offer a
unique alternative traveling experience. The rise in STP popularity however, has created issues
for cities across the country as there are often no regulations for them and/or the city code does
not contain any specific language pertaining to STPs. In many cities neither the homeowner nor
the STP Company are not required to pay a lodging tax. They are a potential magnet for
neighborhood nuisances of all kinds and technically allow homeowners to run/conduct business
in residential areas. STP’s in most cities are not required to obtain a permit or license operate and
are not subject to inspection.
In response several cities across Minnesota have created and/or updated their city codes to
manage and regulate STPS. Waite Park has minimal restrictions on STPs as there are only 2 in
operation, have not caused any issues, and the city does not foresee STPs becoming a high
demand in the future. The only regulations include requiring the owner to be licensed as a rental
property and that any nuisance/violation fees be paid by the owner. Cities such as Duluth and
Prior Lake have created a series of regulations that require STP home owners to have a Permit,
limit the overnight occupancy, adhere to city zoning, parking and nuisance codes and allow the
city to withdraw the permit if STP home owner if violations occur. All 3 cities also require a
lodging tax to be paid to the city, usually between 3-5%. Duluth has taken it a step further by
specifying minim rental periods based on zoning districts. Sartell, St. Cloud and Burnsville
Ordinances do not allow STP’s, with St. Cloud stating residences must be a rental dwelling,
traditional bed and breakfast or hotel/motel. This decision was made based on the evidence that
St. Cloud has a lesser demand for tourism than traditional vacation destinations.
As of right now there is no list or mentioning of STP requirements/regulations in St. Joseph
related to housing, zoning, nuisances or permits/licenses. Questions for the commission to
consider include
Should staff draft ordinance regulations on STP’s?
Will Traditional bed and breakfasts be held to the same regulations as STP’s or
treated as separate entities?
Will the city impose a lodging tax and/or require a license/permit to be acquired
and displayed?
Who will pay the lodging tax (home owner or STP company
What will be the penalties be for code and nuisance violations and who will be
responsible (owner or STP company)
Which zoning districts in St. Joseph are the most appropriate for incorporating
STP’s?
BUDGET/FISCAL IMPACT:
ATTACHMENTS:
REQUESTED PLANNING COMMISSION ACTION: Discussion and Input Only.