Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Short Term Rentals topic
No spam. Unsubscribe anytime.
Council adopts new short-term rental rules with owner-occupied exemption and six-month review
Summary
After extended discussion about neighborhood impacts and property rights, the council adopted Ordinance 364 to tighten short-term rental licensing and activity reporting, adding an exception for owner-occupied properties tied to homestead exemptions and a six-month review of density caps. The ordinance passed 4–0 as amended.
The Stillwater City Council voted unanimously on June 15 to adopt major revisions to the city's short-term rental code, including measures intended to curb defensive licensing, require proof of liability and property insurance, allow an exception for owner-occupied short-term rentals tied to a homestead exemption, and require a six-month staff review of any density caps.
Mr. Moore of city staff presented the amended code and outlined key safeguards: an "active license" definition that requires a listing on a short-term rental platform and the ability to accept bookings to prevent defensive licensing; verification of liability and property insurance; and a proposed owner-occupied exception based on evidence of homestead exemption to be used as an exemption from the density cap. "If you'd like to include the exception language, I would recommend that it be included at section 23-115..." staff said when describing the draft amendment.
Councilors debated the density cap. One councilor called the caps "anti-competitive" and "anti‑property rights," saying they were not comfortable with placing caps on owner rights. Another councilor responded that residents had expressed concerns about neighborhoods being overtaken by short-term rentals and that a six-month review would allow the city to assess impacts and adjust policy. The counciler supporting the cap said the change would help preserve neighborhood character, particularly near the university.
The council approved the ordinance as amended (adding the homestead-exemption owner-occupied exception and the six-month review language) by a 4–0 vote. Staff said enforcement will rely on an active-license standard and third-party compliance software to generate reports of listings, and that the city will verify insurance and sales-tax registration as part of the local licensing process. The code changes will take effect following standard ordinance adoption procedures and staff will return with the six-month report as required by the amendment.
The action represents an effort to balance property-owner rights with neighborhood protections and to build a measurable review point into an evolving regulatory regime.
