Shakopee council adopts hotel licensing ordinance; prohibits permanent residency by owners or staff in guest rooms

The Shakopee City Council on May 6 adopted ordinance 02025-013, a new hotel-licensing ordinance, after clarifying language to prohibit permanent residency by owners, employees, managers or contractors in guest rooms.

Why it matters: the change is intended to distinguish lodging from dwelling units and to protect lodging-tax collection and related regulations by preventing long-term occupancy that would convert hotel rooms into de facto apartments.

Councilmember Delaney removed the hotel-license item from the consent agenda for discussion. He asked how the draft ordinance’s phrase “may reside in a guest room” would apply to contractors or owners who stay overnight. The city attorney advised that the clause was intended to prevent living in the hotel as the owner and that “reside” should be clarified to mean permanent residency.

Council discussion clarified that Minnesota practice treats residency as a state-based definition — generally tied to 30 days — and that extended-stay operations typically use rules that separate transient lodging from permanent residence. The city attorney proposed a one-word text amendment to make the prohibition read: “no interested person, employee, manager, or contractor performing services of any kind may permanently reside in a guest room at the hotel.”

Councilmember Delaney moved to adopt ordinance 02025-013 as modified. The motion was seconded, council voted in favor and the ordinance passed. No roll-call tally was read into the record at the meeting.

Ending: The council approved the ordinance as amended and directed staff to make the language consistent elsewhere in the document where the word “reside” appears.