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Saugatuck council debates caps on short-term rentals, considers ADU exemption
Summary
Councilmembers and residents debated a proposed short-term rental licensing package that would cap permits but exempt accessory dwelling units (ADUs); council members voiced competing views about neighborhood livability and the plan will return to staff for further review.
Saugatuck City Council members spent much of their Aug. 21 workshop debating proposed limits on short-term rental (STR) licenses and a draft zoning change that would exempt accessory dwelling units from the caps.
Councilmember Anderson said the proposal seeks balance but warned that some neighborhoods—particularly those on the hill—are already effectively "unlivable" because of the concentration of short-term rentals. "I do think people who live on the hill and others in town that are completely surrounded by short-term rentals, their area is unlivable," Anderson said.
The draft package presented by City Manager Cummins includes a police-powers ordinance, a companion zoning text amendment and a policy for allocating available STR licenses. Notable changes staff highlighted would allow owner-occupied single-family homes to apply for special land-use approval to separately rent an ADU without that unit counting toward a neighborhood cap; staff also noted that a prior consent judgment means 560 Campbell would not be listed for exemption under the proposed language.
Supporters of fewer restrictions urged the council to weigh economic and hospitality benefits. Councilmember Gardner recounted conversations at a neighborhood block party, noting visitors praised the town and that short-term rentals can help owners cover costs such as taxes. "Short-term rentals are part of my community," Gardner said.
Several council members disputed the characterization that the town as a whole is declining. Councilmember Muncey said claims that the community is "unlivable" are "unfounded," praising responsible rental companies and urging respectful debate. Mayor Stanton described short-term rentals as a "contentious issue" statewide and said the council is working to find balance.
Public comment included several residents and property owners who addressed the proposed caps; the record lists comments from Richard Williams and Eva San Pedro-Koontz as well as other residents who expressed views on licensing limits.
The workshop discussion did not include a formal vote on the ordinance package. Staff will take council feedback into account as it prepares next drafts and any formal ordinance for future council consideration.
