Council approves short-term rental ordinance with 100-license cap and nonrefundable fee

The Richfield City Council on Sept. 23 approved the second reading of an ordinance regulating short-term rentals and a separate resolution authorizing summary publication. The ordinance sets a five-night minimum stay and caps the number of licensed short-term rental properties at 100; council also amended the ordinance to make application and renewal fees nonrefundable. Why it matters: the ordinance is intended to limit the spread of short-term rentals in residential neighborhoods while creating a licensing system the city can administer. The council previously approved a zoning restriction establishing a five-night minimum at its May 27, 2025 meeting. On Sept. 23, staff said roughly 80 short-term rental operators had self-identified to the city and recommended capping licenses at 100 to allow room for additional operators while avoiding extensive ownership-tracking burdens. "With roughly 80 short term rental operators currently in the city, staff recommended licensing no more than 100 short term rental operators regardless of where they live or how many properties they currently own," the staff report read. Council members debated ownership limits, resident versus nonresident standards and practical enforceability. Council member Hayford O'Leary said he would support the measure as an acceptable compromise: "I will be voting for this," he said. Council amended the motion, at the city attorney's suggestion, to state fees paid for the initial application or renewal would be nonrefundable; Council member Burke moved the amendment and it passed. The ordinance includes denial criteria tied to criminal convictions. Council member Burke asked for clarification about the basis for denial and the time window; the city attorney confirmed the council intended the five‑year lookback to apply to felony, gross misdemeanor and misdemeanor convictions where listed. Staff noted the licensing approach avoids tracking corporate ownership or counting licenses per owner; the cap and other provisions can be revisited after data collection. The ordinance will be administered under the code’s Appendix D fee schedule, and council approved a separate resolution authorizing summary publication. The ordinance and the licensing cap do not affect long-term rental licensing; staff confirmed there is no similar cap or license limit for long-term rental properties.