The Richfield City Council on Aug. 26 approved the first reading of an ordinance to license and regulate short‑term rentals as business licenses, directing staff to refine language on ownership limits, homestead exceptions and enforcement. The licensing ordinance builds on a short‑term rental ordinance the council approved earlier in 2025 and adds application requirements, criminal‑history checks, nontransferable licenses, renewal procedures, display and inspection requirements, and bases for denial, suspension and revocation. Council Member Christiansen introduced the item, saying staff followed other city license frameworks in drafting the rules. The council discussed a provision in 11.99.05 (license required) that in draft reads that a property owner "may receive a short term rental residential rental license for 1 property in the city in addition to their homesteaded property or their primary place of business." City Attorney counsel explained that the language was ambiguous about whether that "two‑license" allowance applied only to Richfield property owners or to any applicant. Council members sought direction on whether to: (a) limit owners to one license citywide; (b) allow two licenses only for owners who maintain a primary residence (homestead) in Richfield; or (c) allow two licenses for any applicant. Council Member Hayford O'Leary argued against limiting owners, saying multiple properties often indicate experienced, responsible operators. Council Member Burke and others said they were concerned about out‑of‑state or corporate buyers acquiring many properties for short‑term rentals and favored limiting licenses to protect housing stock. Several council members also urged staff to consider grandfathering existing, responsible operators so the ordinance would not require them to divest properties they had been operating under prior practice. Council Member Burke asked whether registered sex‑offender status should be an explicit basis for denial; staff said they would research that question. The council also discussed whether to set a citywide cap on the total number of short‑term rental licenses; staff said the city is not imposing a cap now but will revisit the issue after 18 months and recommended developing a record to support any future cap. The council voted to approve the first reading and directed staff to "wordsmith" and further research the ownership/limits/legal issues for the second reading.