Fairview council directs staff to exclude hotels from village mixed‑use zone, pursue impact‑based rules for adult entertainment

Fairview leaders agreed Wednesday to modernize the city’s zoning tables for the village mixed‑use (VMU) and village commercial (VC) zones and to take a cautious approach to hotels and adult entertainment. Planning staff presented a code rewrite that would replace an outdated, itemized list of permitted uses with broader, tabled categories intended to ease business permitting while keeping each zone’s intent.

The council signaled it did not want hotels and motels added to the VMU. Staff told the council short‑term rentals (Airbnb‑style units) are defined in the development code as a form of short‑term lodging that falls under the city’s hotel category; allowing hotels in VMU would, in effect, permit short‑term rentals there. Councilors noted most village parcels are small and that existing homeowners’ associations already restrict commercial short‑term rental uses on many blocks, but members said they did not want to create unintended opportunities for party houses or other nuisance uses.

On adult entertainment and video lottery uses, staff said city‑attorney advice cautioned that singling out expressive businesses by use could violate state and federal free‑speech protections and state rules on lottery regulation. Instead, staff recommended — and councilors agreed in principle — that the city pursue impact‑based regulations that apply across uses. Those measures could include noise and hours restrictions, parking and security requirements, and exclusions from certain local incentive programs. A council member noted the city’s urban‑renewal program already excludes businesses that bar minors during all hours.

Planning staff said further work sessions and focused code drafting will follow. If council chooses to adopt any regulation that is more restrictive than current code, staff reminded the council the city must provide Measure 56 notice to affected property owners before a public hearing. The planning commission will take the council’s direction into account as it prepares ordinance language and public outreach materials.

Next steps: staff will draft proposed ordinance language reflecting the council’s direction to exclude hotels/motels from VMU and to craft neutral, impact‑based standards for entertainment uses; the planning commission will schedule additional review and public notification prior to a hearing.