Public hearing on zoning change to permit short‑term rentals in R‑1 neighborhood draws resident opposition; council discusses state law limits

Two Rivers City Council held a public hearing April 21 on a proposed ordinance to amend municipal code section ten‑one‑20A to add short‑term rentals as a permitted use in the R‑1 single‑family residence district. Planning commission staff recommended approval; the item drew multiple public comments and a substantive council discussion about state preemption and local regulatory options.

Resident Susan Robitai identified herself and said her R‑1 street includes several households that oppose allowing short‑term rentals in their neighborhood. “I wasn't prepared to speak on this and it notices on the agenda. I guess, well, we live on an R 1 Street and we have repeatedly talked to counsel about our situation,” Robitai said, adding that a property owner who does not live in the city is operating a rental “as a business” in her neighborhood and that neighbors had gathered a petition with more than 104 signatures opposing Airbnb expansion.

City legal staff described limits and options under state law. “The city is prohibited from doing is under, 66.1014, which is the city cannot prohibit the rental residential dwelling for 7 consecutive days or longer or longer,” said Sean Griffin (identified in the record as “Sean Griffin City of Zurich”), explaining that the state statute prevents local bans on rentals of seven or more consecutive days but leaves local authority over shorter stays. Council members discussed regulatory choices that remain available for rentals of six nights or fewer, owner‑occupancy requirements, manager/response requirements and short‑term rental license rules that staff are drafting.

Council members also discussed options such as making short‑term rentals conditional uses that require separate public hearings, differentiating requirements by zoning district (for example, stricter rules in R‑1 than in higher‑intensity zones), and imposing operational limits such as occupancy caps or a requirement that a professional manager be available to respond to complaints. Staff noted the licensing ordinance amendments for short‑term rentals are not yet finalized and are expected to return to council at a future meeting for action.

What the council did: a roll call was taken for the matter; the provided transcript records one vote (Miller — aye) but does not contain a full recorded tally or a final ordinance adoption in the excerpt. Staff and council discussed next steps and indicated licensing and enforcement language will be considered in forthcoming ordinance drafts.

Why it matters: the change would clarify whether short‑term rentals are an explicit permitted use in single‑family zones; policy choices will affect neighborhoods, property owners and enforcement resources. Residents and council members cited both property rights and neighborhood character as considerations as the city drafts implementing licensing rules.