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Council approves first readings to permit short‑term rentals in select districts and sets cap at 18
Summary
Clawson City Council approved first readings of two ordinances: one to permit and set standards for short‑term rentals (STRs) in six commercial and mixed‑use districts plus Core Residential, and a second ordinance establishing an annual cap of 18 STR licenses. Both measures passed first reading despite at least one dissenting councilor.
Clawson City Council on Tuesday approved the first reading of two ordinances to regulate short‑term rentals, narrowing where short‑term rental units (STRs) may operate and establishing an annual cap of 18 licenses.
The zoning ordinance amendment lists STRs as permitted uses in six commercial or mixed‑use districts — B‑3 General Business, CC City Center, CMD Central Mixed Use, CR Core Residential, BRD‑2 Business Renewal, and I‑1 Limited Industrial — and establishes general operational standards. The related ordinance sets the maximum number of active short‑term rental licenses in the city at 18 at any one time.
City staff reminded council members that the package contains two separate items: a zoning amendment that defines where STRs can operate and an amendment to the general code that sets an annual cap on licenses. The staff presentation noted that existing STRs located in residential districts would become nonconforming uses; owners may continue to operate but would lose that status if they transfer the property or fail to renew their license.
The council discussion returned repeatedly to the question of where STRs should be allowed. One councilor observed that a number of nearby communities have completely opted out of STRs, while another said Clawson — a small city — should not be treated as a “test case” and that keeping STRs out of single‑family residential districts was preferable. Staff said the planning commission had recommended the listed districts and also recommended an annual cap.
The zoning ordinance first reading passed on roll call with one dissenting vote from Mayor Pro Tem Moffitt; other members voted in favor. The companion ordinance establishing the cap at 18 likewise passed its first reading with the same roll‑call outcome.
Both ordinances will return for a second reading before they take effect. Council members and staff said they expect to add implementation details and to finalize application and enforcement processes before final adoption.
