Planning commission recommends short-term rental licensing with strict limits after divided vote

The Lake Elmo Planning Commission on April 13 voted 4–3 to recommend a zoning text amendment that would create a separate short‑term rental license distinct from the city’s bed‑and‑breakfast rules.

Staff presented the proposal as a tightly constrained program intended to bring existing unlicensed rentals into compliance. The proposed license would be valid for three years, require building‑ and fire‑safety inspections every three years, limit lodging rooms to five and overnight occupants to 10, require 24‑hour local contact information (within 60 miles), and cap the total number of city licenses at 20. The staff recommendation also included an HOA opt‑in: applications from properties inside a homeowners association would be accepted only if the HOA provided a letter authorizing participation.

City staff said the county licenses lodging establishments and handles pool/septic inspections, but county…