Okoboji planning commissioners decline to take position on developer’s short‑term rental request

The City of Okoboji Planning & Zoning Commission on Feb. 9, 2026 heard a public hearing on Commons Holdings LLC’s request to amend a conditional use permit so that up to 15 one‑bedroom condominium units could be rented for periods shorter than the current 90‑day minimum. After extended public comment and legal questions about state preemption, commissioners voted to neither recommend nor deny the amendment.

The amendment would have allowed the developer to convert up to 15 of the condominium units to short‑term rentals, a change the developer said was sought because only seven units had sold in two years. John Stevens, representing Commons Holdings LLC, told the commission the property had been a hotel historically and that the developer reduced the overall density to 45 units in later iterations of the project.

Neighbors and several owners opposed the change. Rod Simonson said residents had accepted the condominium project because the original conditional use permit included a 90‑day restriction and raised specific concerns about ‘‘late night activities on the beach, people walking through yards, large events, and intrusive’’ behavior tied to short‑term occupancy. Owner Melissa Mullinax said she bought her unit in part because of the 90‑day restriction and told the commission she ‘‘feels like this was a bait‑and‑switch situation,’’ adding she was worried about safety for her small children if frequent turnover increased unfamiliar visitors.

City staff clarified process and legal limits. City Administrator Michael Meyers explained that the Planning & Zoning Commission reviews conditional use permits and forwards a recommendation to the Board of Adjustment, which makes the final decision. City Attorney David Stein Jr. read and cited Iowa Code §414.1 and advised commissioners that state law constrains the city’s ability to regulate short‑term rentals in ways that could be preempted; Stein also noted that condo covenants and bylaws were created voluntarily and that a developer can have authority to change bylaws until units are sold.

Commissioners expressed sympathy for neighbors but also concern about exposing the city to legal risk. Commissioner Mendenhall recalled that the 90‑day restriction was a central factor in the original approval and said repeatedly amending the permit undermined expectations; Commissioner Nadler said he believed the state statute limited the city’s enforceability and cautioned that a city decision contrary to state law could lead to a successful legal challenge. Commissioner John McMahon said he cared about the neighbors but that the commission must follow existing law and ordinances.

Faced with those legal constraints, Commissioner Nadler moved and Commissioner Lanfear seconded a motion to neither recommend nor deny the amendment request; Commissioners Lanfear, McMahon, Nadler and Welle voted AYE and Commissioner Mendenhall abstained. The motion passed, leaving the contested short‑term rental restriction written into the existing conditional use permit but without a formal recommendation from the commission. The Board of Adjustment will be the next body to consider the developer’s application.

No final change to the conditional use permit was approved at the Feb. 9 meeting; commissioners concluded the 90‑day provision remains part of the permit record but noted that Iowa Code §414.1 could limit the city’s ability to enforce that provision.