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Commission considers restricting short‑term rentals in transitional district amid housing shortage
Summary
Commissioners discussed lifting a short‑term rental moratorium and recommended at least removing new permits in the transitional district, leaving existing grandfathered short‑term rentals intact; staff proposed options including a standalone amendment or a broader zoning update and will prepare district‑level counts and ratios for the commission.
Members of the Munising Planning Commission debated changes to the city’s short‑term rental (STR) rules at their March 26 meeting as staff presented data from the housing needs assessment.
A planning commissioner said the commission has enough data to take action and suggested that the most appropriate step would be "removing short‑term rentals as a use from the transitional district," while leaving existing, grandfathered permits in place. Staff noted the transitional district currently hosts 10 grandfathered short‑term rentals and that owners who meet the ordinance’s renewal requirements have legal protections under the current code.
Staff (Ryan and Jessica) advised commissioners that the existing moratorium—adopted in August 2024—was limited in time (24 months or until the master plan and housing assessment were adopted) and that a moratorium can be lifted early by the governing body. Officials outlined two paths: craft a standalone amendment to the zoning ordinance focused on STR rules (similar to a four‑page amendment used previously) or embed STR regulations into the broader zoning‑update process. Staff recommended compiling district‑level counts (single‑family vs. multi‑unit units and current STRs) and returning with a proposal.
Commission discussion focused on balancing tourism demand in downtown/commercial zones with residential stability in the transitional district, concerns about employee housing and seasonal worker accommodations, and enforcement/renewal mechanics (annual letters of intent are required for permitted STRs; two consecutive years without renewal can result in loss of the conditional permit).
Commissioners asked staff to prepare a district breakdown of housing types and existing STR counts and to place a short‑term rental ordinance item on a future planning commission agenda so members could decide whether to pursue a targeted amendment or wait and include the changes in the comprehensive zoning update.
