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Stillwater advances overhaul of short-term rental rules, including 20% per-block cap
Summary
The City Council advanced an ordinance rewriting short-term rental regulations — requiring licenses citywide, removing a 300-foot notice requirement, requiring a 24-hour contact able to respond within an hour, instituting a 20% per-block density cap in certain residential zones — to second reading by a 4-0 vote.
Mayor William Joyce on May 4 opened a public hearing and the City Council advanced a comprehensive rewrite of the city's short-term rental rules to a second reading, voting 4-0 to move the ordinance forward.
David Barth of Development Services presented the text amendment (TXT-26-01), saying the proposal would require short-term rental licenses in residential zoning districts, add definitions and new application requirements, and emphasize enforcement and compliance. "We currently have a 167 active licensed short term rentals within the city limits," Barth told the council.
Key provisions summarized by Barth include requiring an application with occupancy limits, posted house rules and a floor plan, proof of insurance, working smoke detectors, and a 24-hour contact who must be available to respond within one hour to complaints. Barth said staff intends to work with property managers and owners to bring properties into compliance and is evaluating third-party software to help locate unlicensed units.
The amendment would remove the city’s existing 300-foot notice requirement and the routine public-hearing step for applications unless an appeal is filed; appeals and revocation procedures would remain. For RSS and RSL zoning districts the draft ordinance would cap short-term rental licenses at 20% of dwelling units within any block (fractional results rounded up). Barth said three blocks currently exceed that threshold but would continue to operate under existing licenses until those licenses are surrendered or revoked.
Planning staff noted the Planning Commission voted 5-0 on April 21, 2026, to recommend council approval of the text amendment as presented. Councilor Clark moved to advance ordinance 3604 to second reading; the motion passed on a 4-0 vote.
The ordinance will return to the council for a second reading where the council may adopt, amend, or further postpone the measure. The Planning Commission’s recommendation, the staff report and the ordinance language remain the official records of the proposal.
