West Fargo staff seeks policy direction on draft short‑term rental ordinance

City planning staff presented a draft short‑term rental ordinance to the West Fargo City Commission on Jan. 20 and asked commissioners for policy direction on residency limits, notification requirements and enforcement before staff returns with a final ordinance for consideration.

Aaron Nelson, director of planning and zoning, said the draft would apply to rentals of 29 or fewer consecutive days and would require city-issued licenses, an annual renewal, a fire-department safety inspection before issuance, and compliance with the city’s occupancy and parking standards. Nelson said the draft ties short‑term rental occupancy limits to existing zoning rules that allow up to five unrelated persons in a dwelling unit and that the license would be limited to an owner’s primary residence (defined in the draft as occupancy more than half the year).

The draft would also require owners to collect applicable lodging taxes and display license numbers in advertising. Nelson said the ordinance includes a 30‑day grace period for operators found operating without a license to come into compliance before additional enforcement action. The draft does not yet set the exact fee schedule; staff intends to adopt fees by resolution if the ordinance is approved.

Commissioners asked several policy questions that staff requested guidance on. Commissioner Jorgensen asked whether the five‑person limit was taken from the zoning code; Nelson confirmed it was. Commissioners asked whether short‑term rentals should be limited to primary residences, limited to residents only, or whether business entities (such as LLCs) should be permitted to hold licenses. Nelson said the draft currently restricts licenses to an owner’s primary residence but that staff can draft alternative language if commissioners prefer broader or narrower rules.

Commissioners also discussed neighbor notification and enforcement. Some commissioners favored the city performing formal notification to adjacent property owners to ensure neighbors receive accurate information and compliance instructions; others preferred voluntary notification by applicants. Commissioners asked about revocation or suspension procedures, appeals processes, and how the 30‑day cure period would work for non‑resident owners. Nelson said staff would draft an appeal mechanism and consider multi‑tiered enforcement and revocation language for the final ordinance.

Because this was a nonaction discussion item, no vote was taken. Nelson asked commissioners to send additional feedback before staff prepares a final ordinance for formal consideration.