Richfield City Council members discussed proposed limits on short-term rentals during a work session April 22, with staff recommending a one-month (30-day) minimum stay for rentals unless the licensee lives on-site.

The recommendation came from Sam Crosby, planner in the Community Development Department, who said staff found the available police and fire record-keeping did not allow reliable conclusions about public-safety calls and that a widely distributed public survey drew 541 responses. “Staff has concluded that the flexibility that short term rentals provide to the community does not outweigh the loss of housing or the staff time that would be needed to ensure they're operating on par with other lodging establishments. And therefore, we recommend a 1 month limitation as the best approach,” Crosby said.

The proposal would exempt on-site licensees (for example, an owner or a long-term resident holding the license) so those operators could rent for shorter terms. Councilmembers questioned how to define “lives on-site.” “Would it be more helpful to be a little more specific about what lives there?,” Walter Burke asked. Staff said the draft language was prepared with the city attorney and used “licensee” so a long-term renter acting as the license holder could qualify; staff committed to clarifying the term’s meaning in the ordinance.

Council reaction was split. Several councilmembers said a one-week minimum would be more proportionate to local market conditions and to preserve some visitor options near Mall of America and other local attractions. “I would strongly prefer that we do a 1 week minimum and not a 1 month minimum,” Councilmember Sean said. Others, citing survey comments and concerns about inspections, taxes and accessibility, supported the 30-day approach. “Because of limitations of state law, I feel like I'm still stuck at 30 days,” Councilmember Walter Burke said.

Staff told the council it does not currently have the capacity to perform lodging-style inspections in residential districts or to reliably collect lodging tax from short-term rental platforms. Melissa Pittman, Community Development Director, said the city contracts with Bloomington for lodging inspections at hotels, but Bloomington would not provide such inspections for short-term rentals and Bloomington itself bans short-term rentals. Staff said enforcement of any short-term rental limit would be complaint-driven and that operators would be expected to produce lease or reservation records when asked; staff noted that platforms and operators can alter posted terms quickly.

Councilmembers asked about implementation timing. Crosby said that, under the current draft, the ordinance would take effect January 2026 and that staff would provide a transition period and public notice to self-identified short-term rental operators. Staff also flagged that rental-licensing inspections in Richfield generally occur every other year and that adding a separate tier or additional inspections for short-term rentals could require augmenting staff.

Rather than taking a formal vote at the work session, the council asked staff to refine the draft ordinance language (including clearer definitions of “licensee” and “lives on-site,” and duplex/ADU treatment), and to return the item to a future meeting where council members may propose amendments (for example, a one-week minimum) at the time of formal consideration.

Ending: The council left the work session with no final decision; staff will revise the draft ordinance, clarify enforcement and administrative details, and publicize the proposed effective date and transition process before bringing the ordinance back for council action.