West Fargo commission tables short-term rental ordinance, forms stakeholder committee

The West Fargo City Commission voted 4-1 on June 16 to table the second reading of ordinance 8-24-28, a city proposal to establish licensing and regulations for short-term rentals, and directed staff to form a stakeholder committee to study the issue further.

The commission’s decision followed a public comment period in which four residents gave opposing views. Eric Stewart, a West Fargo resident, urged the commission to delay regulation until the city collects more data: “We don’t have the data required to make an informed decision on this level of regulation.” Tyler Erickson, another resident and owner of short-term rentals, said he supported the version approved on first reading and argued the primary-residence requirement is needed “to stop incompatible commercial use of residential neighborhoods.” Rita Lunderman, a real estate investor, said the draft ordinance “amounts to a ban” and warned it would strip property owners of the ability to earn income from private property.

Aaron Nelson, the city’s planning and zoning director, told commissioners the ordinance had not changed since the June 2 meeting but that staff had received additional written comments, both supporting and opposing the draft. Nelson also said a resolution establishing related fees was included in the packet.

Commissioner Olson moved to table the item and gather additional information; the motion carried on a 4-1 vote. The commission president directed staff to assemble a public committee to include two commissioners (Commissioner Anderson and Commissioner Jorgensen were named), representatives of short-term rental owners, planning and zoning staff and a public-safety representative from the police department. Commissioners noted the committee’s meetings will be public and require posted agendas and minutes.

Commissioners and commenters raised recurring issues the committee will review: whether short-term rentals produce demonstrably higher rates of disturbances than other residential uses; how private covenants interact with a city licensing program (Nelson noted a draft subsection contemplates that a city-issued license may conflict with private covenants and disclaims responsibility); and enforcement options, including noise and parking complaints.

The commission’s action was explicitly procedural: tabling the ordinance to allow the newly formed committee to gather additional information and bring recommendations back to the commission at a later date.

The commission did not adopt any licensing or fee changes at the June 16 meeting. Staff was asked to coordinate committee membership, public meeting notices and to report back to the commission with findings and draft language as appropriate.