Mobridge council adopts short-term rental rules, sets 30-license cap and fees

Mobridge — The Mobridge City Council approved the second reading of Ordinance 25-01 to license short-term rentals and then adopted a resolution limiting non–owner-occupied short-term rental licenses to 30 and setting the application fee at $500 and the annual renewal fee at $100.

The ordinance passed on its second reading during the council’s April 9 meeting at Wilbert City Hall. Councilors discussed how the licensing cap and a 60-day application window would interact with existing operators, and staff outlined how the ordinance treats owner-occupied “home-based” rentals separately from non–owner-occupied listings.

The licensing ordinance requires short-term rental operators to apply for a city license and maintain insurance and a lodging license; the council adopted a separate resolution to set the limit of non–owner-occupied licenses at 30. Councilors and staff explained that a 60-day initial application period allows existing operators to apply even if the adopted cap is lower than the current number of active listings, and that owner-occupied short-term rentals are excluded from the numeric cap under the ordinance.

Councilor Brent and other members pressed on the city’s objectives, noting concerns about the local rental market and the potential effect of short-term rentals on housing supply. Mitchell, the city’s housing director, told the council, “I think you guys are on the right track,” and urged caution about setting a cap that would constrain housing availability. Councilors also discussed enforcement logistics and the staff time required to process applications and renewals.

After discussion the council approved the following: the second reading of Ordinance 25-01; Resolution 25-05 setting the number of non–owner-occupied short-term rental licenses at 30; and a fees resolution establishing a $500 application fee and a $100 annual renewal fee. The council’s attorney reviewed the draft application and confirmed it conforms to the ordinance; the council voted to publish the fees by resolution, which begins the required referral period after publication.

Council members stressed that the ordinance includes a provision that licenses will not be renewed if a property did not operate as a short-term rental in the prior year, a measure the council said is intended to prevent license holding without active operation.

Votes at a glance

- Ordinance 25-01 (second reading): licensing short-term rentals — approved (roll call recorded in minutes). - Resolution 25-05: set number of non–owner-occupied short-term rental licenses at 30 — approved (roll call recorded in minutes). - Fees resolution (application $500, renewal $100): approved (roll call recorded in minutes).

Why it matters

The council’s action creates a permanent licensing framework for short-term rentals in Mobridge and places a numerical cap on non–owner-occupied listings while excluding owner-occupied short-term rentals from that cap. The policy change is intended to give the city a way to monitor safety, collect fees to cover staff time and inspections, and limit growth of commercial short-term rental operations that council members said could reduce the stock of long-term housing.

What’s next

The fees resolution will be published and is subject to the city’s referral period. Staff said the city will operate an initial 60-day application window for existing operators; after that window the numeric cap will be enforced for new non–owner-occupied applications. Council members suggested the cap and fee levels could be revisited by future councils.

Ending

The council discussed but did not change the adopted fee amounts and numeric limit at the meeting. Staff will finalize the short-term rental application form to reflect the fees and return it for implementation steps and public notice.