Saugatuck hears Planning Commission’s 20% cap recommendation on R‑1 short‑term rentals amid broad public comment

City Manager Cummins presented a Planning Commission recommendation that the City adopt a 20% cap on short‑term rental (STR) licenses in R‑1 residential zoning districts at the July 3 workshop. The commission voted 4–3 in favor of the cap and recommended grandfathering all existing STR licenses until properties change ownership; full‑time residents with a PRE would be permitted to short‑term rent their primary residence for up to three weeks per year.

The recommendation would apply only to R‑1 zoning districts (identified in the presentation as Community Residential; Peninsula West; Maple Street; Peninsula South; Peninsula North—Duneside; and Peninsula North—Riverside) and would calculate caps based on the total number of dwelling units in each district (for example, a 20% cap in a 100‑unit district would limit new licenses once 20 licenses exist). Planning Commission materials and staff noted several unresolved implementation questions, including how frequently caps would be recalculated, how vacancies or transfers would free up licenses, and how the PRE exemption would interact with existing licensing rules.

Public comment at the workshop was largely opposed to imposing new caps. Speakers who identified themselves as residents or non‑residents argued the cap could harm property values, restrict access for tourists, or unfairly prioritize certain voices. Among those speaking were Seth Arthur (representing residents opposed to caps), Steve Manns (who thanked the Planning Commission and STR Task Force), Joe Leonatti (who warned about limiting tourist access from hill rentals), and Melissa Friedl (who said she has lived on the hill 20 years without STR issues). Several commenters urged the council to seek more information before acting.

Council discussion reflected a range of views. Councilmember Gardner said he thought the council should reject the Planning Commission proposal and emphasized representing both residents and visitors; Mayor Pro‑Tem Baldwin and others thanked the public and noted the matter has been under study for two years. No vote on the cap was taken at the workshop. Council was presented with three options: accept the recommendation (with or without changes), reject it, or remand the issue back to the Planning Commission for further proceedings.