Residents and council debate short-term rental rules as state law clouds authority

Public commenters urged the New Franklin City Council on Tuesday to restrict short-term rentals in residential neighborhoods, and council members said they are working on a local policy while consulting legal counsel about state limits and possible litigation. Mike Hoffman, a resident at 4123 Webster Avenue, told the council short-term rentals “are hotels” when run by outside investors and urged either a ban in residential zones or a conditional-permit process with neighbor notice and revocation for violations. The mayor said the city has been monitoring state legislation and previous attempts to restrict short-term rentals and emphasized legal caution. The mayor said, “we want to do it right the first time” and described work with the law director and outside counsel to craft legislation that will survive likely legal challenges. Council members and the mayor outlined a timeline: staff and attorneys aim to produce an initial draft for council review at the first meeting in September with a goal of formal action by October. Council described two competing priorities—acting promptly to address community concerns around lakeside neighborhoods while avoiding a local ordinance that could be overturned quickly in court. Speakers flagged specific policy ideas: conditional permits requiring neighbor notice and hearings, spacing limits (for example, a model that limits one short-term rental per 100 yards), and permit revocation for repeated violations such as noise or over-occupancy. Several council members said a conditional-permit pathway may be more defensible than an outright ban, but no formal ordinance text was introduced at the meeting. The mayor and council said the city and its outside counsel are tracking state developments, citing past bills and the prospect of court challenges from investors. The mayor asked for patience while staff and legal advisors work through draft language and potential defenses. No formal vote on short-term rental regulations occurred at the meeting; the item remains under study and staff will return with draft language and legal memoranda. Ending: Council members said they expect to present draft legislation in September and decide whether to introduce an ordinance by the first meeting in October; residents who addressed council urged strict limits during that drafting process.