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AN INTERIM ORDINANCE PURSUANT TO MINN. STAT. § 462.355, SUBD. 4, IMPOSING A MORATORIUM ON CERTAIN SHORT-TERM RENTAL PERMITS AND RELATED CITY ACTIVITIES AND APPROVALS PENDING COMPLETION OF A CITY STUDY WEIGHING THE NEED FOR ANY AMENDMENT TO OFFICIAL CONTROLS.
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CITY PROPOSAL:
The city of Duluth does ordain that:
Section 1. Statement of legislative intent.
At a time when the city of Duluth is experiencing a growing demand for housing units, the city continues to experience a trend in the conversion of long-term housing units into short-term rentals. In addition, multiple overlapping city short-term rental licensing, permit, and approval processes have created difficulties in the administration of short-term rentals. Relatedly, because the city’s Unified Development Chapter of the Duluth City Code, Minnesota State Fire Code, and Minnesota State Building Code impose inconsistent and occasionally conflicting standards governing short-term rental properties, the city’s various short-term rental procedures frequently result in confusion among stakeholders and place unnecessary burdens on the city’s staff, planning commission, and council.
Accordingly, within the boundaries of the city and for a period not to exceed 12 months, the council finds that an interim ordinance prohibiting the acceptance, processing, and issuance of new permits under Chapter 50 of the Legislative Code and any associated licensing, permitting, inspection, and approval processes for Vacation Dwelling Units, Accessory Vacation Dwelling Units, Accessory Vacation Dwelling Units (Limited), Accessory Home Shares, and Bed and Breakfasts is necessary to protect the planning process and to guard the health, safety and welfare of the city’s residents. The council further concludes that no public hearing is required under Minn. Stat. § 462.355 to enact the above-described short-term rental moratorium.
While this moratorium is in place, the council deems it necessary to commence a city study considering the need for any additions or amendments to the city’s official controls. This study may, without limitation and as deemed appropriate by the various city departments responsible for regulating short-term rentals within the city:
• Review existing enforcement measures for short-term rental violations and consider potential changes;
• Review existing requirements regarding the proximity of a caretaker or manager for short term rentals and consider potential changes;
• Consider reforms to the municipal short-term rental registry;
• Consider limitations on locations and saturation of short-term rentals;
• Review city code for amendments relating to official controls for short-term rentals;
• Review current city department and division regulatory responsibilities relating to licensing, permitting, oversight, and approval of short-term rental units, and consider potential methods for redistribution or consolidation of such responsibilities to eliminate potential inefficiencies, errors, and regulatory conflicts.
Finally, the council finds that it is necessary to temporarily preserve the status quo regarding the city’s regulation of the short-term rental units identified above through its zoning ordinances codified in Chapter 50 of the Duluth City Code and any other related provisions of the Duluth City Code governing short-term rental licensing, permitting, and approval of such units, pending completion of the above-described city study.
Section 2. City study authorized.
Pursuant to Minn. Stat. § 462.355, subd. 4, the Duluth city council hereby authorizes a study of the city’s official controls regulating Vacation Dwelling Units, Accessory Vacation Dwelling Units, Accessory Vacation Dwelling Units (Limited), Accessory Home Shares, and Bed and Breakfasts under Chapter 50 of the Duluth City Code and any other provisions of the Duluth City Code governing short-term rental licensing, permitting, inspection, and approval of such units for the purpose of protecting city processes and the health, safety and welfare of its citizens.
Section 3. Moratorium imposed.
The city of Duluth hereby imposes a moratorium to prohibit the acceptance, processing, or issuance of new permits and any related licensing, permitting and approval processes for Vacation Dwelling Units, Accessory Vacation Dwelling Units, Accessory Vacation Dwelling Units (Limited), Accessory Home Shares, and Bed and Breakfasts within the boundaries of the city, pending completion of the city study and any related regulatory enactments described in Section 1. This moratorium shall be effective until the expiration of 12 months following the introduction of this Ordinance, subject to adoption of Resolution No. 25-0808R, or until such earlier time as the council may have taken action to amend its official controls as a result of the city study described in Section 1.
Section 4. Exemptions.
The moratorium imposed by this Ordinance does not apply to the following applications, which the city shall continue to process according to the requirements and use-specific standards in place before the effective date of the above-described restrictions:
Applications for the permits described in Section 3 deemed complete by the city’s Department of Planning and Economic Development prior to the introduction of this Ordinance, subject to adoption of Resolution No. 25-0808R.
Section 5. Automatic Renewal of Certain Permits.
For all short-term rental units described in Section 3, above, that have fully complied with all necessary city inspections, licenses, and approval requirements, short-term rental permits previously issued by the city that expire while this Ordinance is in effect shall be automatically extended until the expiration date of this Ordinance.
Section 6. Effective date.
That this Ordinance shall take effect 30 days after its passage and publication. (Effective date: November 26th, 2025)