Petersburg council narrows short-term rental rules; requires special-use permits except for owner-occupied homes

Petersburg City Council on June 17 adopted changes to the city's zoning ordinance to define, register and regulate short-term rentals (examples: Airbnb, homestay) and to require special-use permits for short-term rental uses except when the property is the owner's primary residence.

Planning staff presented a text amendment that had been developed over the prior year with extensive planning-commission review and public outreach. Planning Director Naomi Saadmock said the planning commission recommended approval (5-0) and staff proposed a registry, annual verification, and operational standards addressing safety, occupancy and nuisance controls. Key proposed standards the council considered included: limiting short-term rentals to the primary structure (not accessory buildings), minimum operator age of 18, a cap of six unrelated overnight guests, no visible on-site RV storage, no exterior signage advertising the rental, coordination of trash removal, prohibition on food service or commercial uses, and for multiunit buildings a limit of either 10 units or one-third of the building's units (whichever is less) being used as short-term rentals. Staff proposed a $500 penalty for failure to register and an October 1 deadline for existing operators to register so the city can collect taxes and begin enforcement prior to anticipated casino-area demand.

During the public hearing more than a dozen residents and property owners spoke. Supporters, including hosts renting to traveling nurses and other visitors, cited revenue for homeowners, better upkeep of properties used short-term, and the need to capture transient-tax revenue. Opponents voiced concerns about parking impacts on narrow residential streets, turnover and noise in established neighborhoods, and potential loss of long-term housing stock. Several speakers urged grandfathering existing operators; others suggested a requirement that the owner be present during rentals.

Councilmember Coburn moved an amendment requiring that, going forward, short-term rentals be allowed only by special-use permit, except when the property is occupied as the owner's primary residence; owner-occupied short-term rentals would not require a special-use permit. Councilmember Jones seconded. On roll call the ordinance as amended passed 3-2: Councilmember Cuthbert and Councilmember Jones voted aye; Councilmember Myers and Councilmember Smith Lee voted no; Mayor Perrin voted aye.

The ordinance establishes the registry and standards, sets enforcement penalties, provides an appeals process for revocation and includes an initial registration deadline for operators who already are offering short-term rentals. Staff noted that after the registry is in place the commissioner of revenue can implement tax collection procedures.