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Clayton adopts conditional permitting to allow limited short‑term rentals downtown
Summary
Board approved an ordinance to allow short‑term residential units on upper floors of older downtown buildings under a conditional use permit, adding building‑code and licensing provisions and inspection and permit requirements.
The Board of Aldermen voted unanimously Aug. 12 to approve an ordinance allowing short‑term residential dwellings in parts of Downtown Clayton under a conditional use permit and an occupancy sub‑permit process. City Manager presented the ordinance as a tailored, cautious opportunity to repurpose underused second‑ and third‑floor spaces in smaller, older downtown buildings.
“Revisions to the city's zoning regulations, building codes, and licensing regulations are required to facilitate short term dwelling units,” the city manager said as staff described changes to chapters 405, 500 and 605 of the Clayton Code of Ordinances. The ordinance adds a definition for “short‑term dwelling,” allows the use in the High Density Commercial (HDC) district with a conditional use permit, creates a short‑term occupancy permit under the building code, establishes location, design, operation and maintenance standards, and sets procedures for suspension and revocation of permits and penalties for violations.
The plan commission held public hearings on June 16, 2025 and July 7, 2025 and recommended approval after revisions, staff said. The ordinance limits eligible properties to smaller, older downtown buildings (staff used a 1955 construction cutoff as part of the inventory of likely candidates) and generally requires one parking space per unit; the board will evaluate parking waivers through the CUP process case‑by‑case.
Public safety concerns were raised by email before the meeting; Mayor McAndrew reported that Police Chief Smith reviewed the draft and told city leadership he did not expect a disproportionate demand on police resources under the tailored rules. The board discussed the ordinance’s ability to encourage occupancy of underused second‑ and third‑floor spaces while preserving retail or commercial uses on first floors.
Alderwoman Beuse introduced Bill No. 7081. After unanimous consent to consider the measure on the day of introduction, the board approved the ordinance by recorded vote: Beuse, Patel, Fader, Hummel, York and Mayor McAndrew voted aye on second reading and adoption.
