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Council discusses limits on VRBOs as part of upcoming zoning rewrite
Summary
Councilors asked staff to examine whether the city can limit short‑term rentals (VRBO/Airbnb) by zone as part of the land‑use and subdivision rewrite; legal counsel said zoning changes are a lawful tool but could raise grandfathering or challenge issues for existing owners.
Councilors raised concerns that a growing number of properties are being used as short‑term rentals (referred to in the discussion as VRBOs), and that new construction is increasingly catering to short‑term occupancy rather than long‑term housing. Legal counsel told the council that municipalities can use zoning to prohibit short‑term rentals in specific zones but that properties already operating before a zoning change may have grandfathering or legal‑challenge arguments.
City staff said the current drafting of the city’s zoning and subdivision regulations this spring provides an appropriate opportunity to examine restrictions, notice provisions and whether to implement zone‑specific caps. Council asked staff to study options, including whether to restrict new permits and how grandfathering should be handled, and to return with proposals and public‑comment opportunities as part of the land‑use schedule.
The manager noted staff can use existing GIS and state registration lists to identify known short‑term rentals; councilors emphasized public outreach and legal review before any ordinance change. No formal zoning action was taken at the meeting.
