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Dunes City council caps short-term rentals at 35, adopts escalating fines for unpermitted rentals
Summary
Council set a local cap on short-term rental permits at 35 and adopted an occurrence-based escalating fine schedule for unpermitted rentals (example framework discussed: first offense $1,500; second $2,250; third $3,375 with potential permit denial after repeated violations). The council approved the measures by voice vote.
The Dunes City Council voted to cap short-term rental (STR) permits at 35 and to adopt an occurrence-based enforcement structure intended to deter unpermitted rentals.
Chair summarized the current permit status: the city reported a decline from 43 licensed STRs to 29 finalized applications after recent renewals. Council referenced the state’s guidance that STRs may begin to affect housing stock at about 5% of dwelling units; using the council’s count of roughly 700 dwelling units, the 5% threshold informed the 35-permit cap. The council moved and the motion carried; the vote was taken by voice and recorded as in favor.
On enforcement, council approved a per-occurrence definition (a verifiable rental period) and an escalating fine schedule intended to remove the financial incentive to operate without a permit. The example schedule that the council adopted in motion would set a first unpermitted occurrence fine at $1,500, a second at $2,250 and a third at $3,375, with the council reserving the option to deny future permit applications for repeat violators. Council members emphasized the goal is compliance rather than revenue — the fines are meant to remove the economic advantage of noncompliance.
The council also directed staff to develop application and wait-list procedures (nonrefundable application fee examples discussed: $500 application + $1,000 permit fee and a 5% gross revenue room tax currently collected by the city) and to prepare public notices required for ordinance adjustments. The new cap and enforcement rules will be codified in the city's ordinance and staff will publish terms and timelines for affected owners and short-term rental managers.
