Council splits on short-term rental appeals; first reading advances Airbnb licensing ordinance

The Mobridge City Council spent considerable time on short-term rental conditional use permits (CUPs) and advanced a licensing ordinance aimed at regulating short-term rentals, including commercial insurance and renewal rules.

Zoning appeals and results

City staff member Dave summarized the zoning board decisions and appeals for multiple addresses in the city, telling the council the zoning board denied certain CUP applications largely over parking concerns and the adequacy of the evidence provided at the zoning hearing. He said one property’s denial “looks like that motion carried by a 4 to 2 vote to deny the conditional use permit.”

Council deliberations focused on parking and neighborhood impacts. Several councilors said rear-yard parking and clearly designated spaces would address most concerns; others emphasized deference to the zoning board when neighbors raise credible complaints.

After debate, the council reached different outcomes for the properties under appeal: - 115 Fifth Avenue East: The zoning board had denied the CUP. The council considered a motion to approve the CUP with a stipulation (one on-street vehicle allowed; remainder to park in designated off-street spaces, brought into compliance with city ordinance) but the motion failed for lack of a majority (recorded roll call: Kimnitz—No; (Kmieckeert?)—No; Cerny—Yes; Ound—Yes; Carlson—No; Jensen—No). The zoning-board denial therefore remained in effect. - 217 Third Avenue East: The zoning board recorded a 3–3 tie on a motion to deny; the tie meant the motion to deny lacked a majority. Council discussion did not result in an overturning at that time and the item was left without an affirmative council approval recorded in the minutes. - 3306 (or 306) Third Avenue East and related Third Avenue properties: The council heard multiple appeals of Third Avenue properties with mixed results. The council approved at least one appeal (recorded as “Appeal number 3306 Third Avenue E” with a motion carried on roll call) and denied at least one other that the zoning board had denied (a motion to deny was carried on record for another Third Avenue address). The council recorded a separate approval for a different Third Avenue property (318 Third Avenue East) after discussing that rear-yard parking appeared sufficient.

Throughout the discussion staff and council emphasized that inspections must occur before a permit is issued and that conditional use permits can be revoked if conditions are not met.

Ordinance: short-term rental licensing

After the appeals discussion councilors advanced, on first reading, a revision to the city’s licensing ordinance governing short-term rentals (referred to in the meeting as the Airbnb/license revision, ordinance 25-01). The ordinance, as presented in the first reading, would require applicants to provide a lodging license copy, evidence of insurance with a specific endorsement for short-term rental activity, proof of sales-tax registration, and other documentation; it would also allow the city to require proof that a licensed short-term rental had been used in the prior 12 months to maintain a license. A council member framed the ordinance as a neighborhood-protection measure: “this ordinance protects me because it makes sure that the person who owns the short term rental…have the correct legal framework, they have the correct insurance.”

Next steps

Council approved the first reading of the licensing ordinance and will consider subsequent readings. For the appeals, the council’s votes were taken on each property; where the council did not vote to overturn a zoning-board denial, the denial remains in effect.

Actions: The council recorded several motions on individual CUP appeals with mixed outcomes (documented approvals and denials by roll call) and approved the first reading of the short-term rental licensing ordinance to return for second reading and final vote.