Traverse City Planning Commission recommends zoning limits on short‑term rentals, asks city to preserve grandfathering policy

Traverse City Planning Commission on May 6 voted to send proposed zoning changes for short‑term rentals to the City Commission, with a clarification lowering one district cap and a formal request that the City Commission preserve the existing grandfathering/transfer policy for current licenses.

The commission’s recommendation would reduce allowable percentages of short‑term rentals in multiple commercial and development zoning districts and set the D‑3 district percentage at 25% (amendment to draft ordinance section 13.47.01, number 2.c). Planning commissioners also included a statement urging the City Commission to adopt the same grandfathering policy that has previously governed transfers of licenses.

The change before the Planning Commission addressed only the zoning allowances (what uses the land can accommodate), not the licensing rules enforced by the clerk’s office. Planning staff said licensing and enforcement (police powers) are a separate, parallel process that the City Commission will address. Leslie (planning staff) told the hearing, “If you currently have a short term rental and…