Title
AN ORDINANCE AMENDING CHAPTERS 29 AND 29A OF THE DULUTH CITY CODE TO REGULATE SHORT TERM RENTAL LICENSING AND PERMITTING
Body
CITY PROPOSAL:
The city of Duluth does ordain:
Section 1. That Sections 29-1 through 29-10 of the Duluth city code, 1959 be amended as follows:
Sec. 29-1. Definitions.
For the purposes of this Chapter, the following words and phrases shall have the meanings respectively ascribed to them by this Section:
Bed and breakfast. A bed and breakfast as defined in Section 50-41.2 of this Code lodging establishment that was originally built and occupied as, or was converted to, a single family residence prior to being used as lodging that is not owner-occupied, with a caretaker having up to five (5) guest rooms.
Business entity. A corporation, limited liability company, partnership, or other legal entity that is not a natural person.
Chief Administrative Officer City Administrator. The Chief Administrative Officer City Administrator of the city or a person dedicated by said Officer.
Hotel. A hotel as defined in Section 50-41.8. A building or group of buildings, or any part thereof used as, maintained as, advertised as, or held out to be a place where six (6) or more sleeping units or dwelling units are furnished to the public and furnishing accommodations for periods of less than thirty (30) days. The person in charge of any such hotel, whether as owner, lessee, manager or agent, shall, for the purpose of this Chapter, be deemed to be the proprietor of such hotel.
Motel or motor court. A building or group of buildings used for the temporary residence of motorists or travelers and held out to the public to be what is commonly known as a motel or motor court. The person in charge of any such motel or motor court, whether as owner, lessee, manager or agent, shall, for the purpose of this Chapter, be deemed to be the proprietor of such motel or motor court.
Short term rental. A short term rental as defined in Article V of Chapter 29A-51 of this Code.
Sec. 29-2. License--required.
No person or business entity shall keep, maintain or operate a hotel, motel ,motor court, or bed and breakfast, or short term rental within the city without first having obtained a license to do so. For purposes of this Chapter, neither a vacation dwelling unit as defined by Section 50-41.22 of this Code nor an accessory a home share or an accessory vacation dwelling unit as defined in Section 50-41.1 of this Code shall not be required to obtain a license pursuant to this Chapter.
Sec. 29-3. Same--Investigation.
The city clerk, immediately upon receipt of an application for a license required by this Chapter, shall transmit a notice thereof to the State commissioner of health with a request that said commissioner determine whether or not the establishment for which a license is being sought is in compliance with the minimum standards for regulation and conduct of hotels, motels or motor courts, or bed and breakfasts, as prescribed by Minnesota Statues Annotated. 2019, Chapter 157 as they now read or may hereafter by amended to read: Upon receiving a report of the commissioner’s findings that the establishment meets said minimum standards, the Chief Administrative Officer City Administrator shall approve issuance of the license. Upon receiving a report that the establishment does not meet said minimum standards, the Chief Administrative Officer City Administrator shall deny the license.
No such license shall be issued until all the regulations relating to hotels, motels or motor courts, or bed and breakfasts have been complied with.
Sec. 29-4. Same--Fees.
The annual fee for each hotel, motel or motor court license shall be set in accordance with Section 31-6(a) of this Code for the first 25 rooms and an additional annual fee for each additional guest room shall also be set in accordance with Section 31-6(a) of this Code, which fees shall be paid to the city clerk with their application.
The annual fee for each bed and breakfast, or short term rental license shall be set in accordance with Section 31-6(a) of this code, which such fees shall be paid to the city clerk with their application. Notwithstanding such fee schedule, no fee for a short term rental license shall be required before January 1, 2027.
Sec. 29-5. Same--Expiration date.
All licenses issued under this Chapter shall expire on the 30th day of April next following the issuance of the same, except all short term rental licenses which shall expire on the 31st day of December next following the issuance of the same.
Sec. 29-6. Same--Revocation and suspension.
Any license to conduct a hotel, motel, motor court, or bed and breakfast, or short term rental may be revoked by the city council in its discretion upon the receipt of a report from the Chief Administrative Officer City Administrator that the operations of such hotel, motel, motor court, or bed and breakfast, or short term rental is being conducted in a disorderly manner, or that such hotel, motel, motor court, or bed and breakfast, or short term rental being conducted, operated or maintained in violation of any of the laws of the state, any provisions of this Code or other ordinances of the city; provided, that pending the action of the city council or between sessions of the same, whenever it shall appear that any such operations conducted in a manner herein is prohibited, the Chief Administrative Officer City Administrator may, after due investigation, suspend the license of any such hotel, motel, or motor court, bed and breakfast, or short term rental and cause the same to be temporarily closed pending the action of the city council.
Sec. 29-7. Reports to council by Chief Administrative Officer City Administrator.
The Chief Administrative Officer City Administrator, immediately upon the receipt of any information or knowledge that any hotel, motel, or motor court, bed and breakfast, or short term rental is being conducted in a manner violative of Section 29-6 above, shall report such fact to the city council. The city council, immediately upon receipt of such report, shall consider the same and may, in its discretion, revoke the license of such hotel, motel, motor court, or bed and breakfast, or short term rental.
Sec. 29-8. Investigations.
The Chief Administrative Officer City Administrator is hereby authorized to inspect any hotel, motel, motor court, or bed and breakfast, or short term rental with whatever frequency and whenever, in his their judgment, the circumstances call for such action. If after any such inspection it is found by the Chief Administrative Officer City Administrator that any such hotel, motel, or motor court, bed and breakfast, or short term rental is being conducted in an unclean or unsanitary manner or in violation of any of the laws of the state, provisions of this Code or other ordinances of the city as to the public health or safety, Chief Administrative Officer the City Administrator shall make a full report to the city council.
Sec. 29-9. Guest register required; limitations on assignment of rooms.
Every person operating a hotel, motel, motor court, or bed and breakfast, or short term rental in the city shall, at all times, keep a suitable book, to be known as the guest register, in which it shall be required that every person to whom a room is let or assigned shall have his their name registered therein, listing the name, address, phone number, and vehicle license plate information of all guests, in ink and shall set forth a proper statement of the date and the hour of the day at which the room was let or assigned. No person operating a hotel, motel, motor court, or bed and breakfast, or short term rental under the provisions of the Chapter shall let or assign any room for sleeping accommodations or otherwise oftener than once in any period of ten hours following the time of its original assignment. The register must be available for inspection by city officials at all times.
Sec. 29-10. Certain terms not to be used to designate or advertise premises without license.
Any person conducting or operating a hotel, motel, motor court, or bed and breakfast, or short term rental without a license therefor, whose license is revoked by the city council, to whom a renewal of license shall be denied or to whom an original license is denied, shall immediately cease to operate such hotel, motel or motor court, bed and breakfast, or short term rental, and shall immediately cease to employ the word "hotel," "motel" or "motor court" or “bed and breakfast” or “short term rental” or “vacation rental” any other word or sign in any place or upon any such building in designating or advertising the premises.
Section 2. That Chapter 29 of the Duluth city code 1959, as amended, is amended by adding the following Section 29-12:
Sec. 29-12. Short term rental license - nontransferable.
A short term rental license is non-transferable. Any change in ownership of the short term rental is deemed a transfer under this Section and a new license is required. A business entity shall state in its application for a short term rental license, the names of its shareholders, directors, officers, members, managers, and local managing agents. The transfer, sale, pledge, or assignment of the record or equitable ownership of any stock or membership interest to new or different shareholders, directors, officers, members, or managers, by a business entity licensee is a change in ownership and shall be deemed a transfer under this Section. The failure of any business entity license holder to comply with the provisions of this Section shall be grounds for the revocation of all short term rental licenses held by the business entity license holder. The city clerk shall be notified in writing within 30 days of all changes to the ownership, including changes to the names or to the record or equitable interests in a business entity.
Section 3. That Article V of Chapter 29A of the Duluth city code, 1959, as amended, is added as follows:
Article V. Short Term Rental Permitting.
Sec. 29A-50. Purpose and Intent.
(a) The purpose of this Article is to establish uniform standards for the licensing, inspection, operation, and enforcement of short term rental properties within the city.
(b) This Article is intended to:
(1) Protect public health, safety, and welfare;
(2) Preserve the availability of long-term housing;
(3) Ensure equitable enforcement of life safety standards;
(4) Promote neighborhood stability and accountability; and
(5) Establish consistent operational standards for transient lodging.
(c) This Article does not apply to the following: hotel, motel or motor court, home share, state-licensed residential care facilities/assisted living, nursing home, campground, co-housing facility, rooming house, or sober house.
(d) Notwithstanding any restrictions set forth in this Article, a property owner may offer up to five (5) guest rooms for rent for a period of less than 30 days to a guest in a homesteaded, owner-occupied, single family home and the owner complies with any requirements of the building code, fire code, and any other regulatory agency.
Sec. 29A-51. Definitions.
(a) Except as defined in items (b) through (e) of this section for purpose of this Article, The definitions contained in Minnesota State Building Code and the Minnesota State Fire Code, as adopted by Chapters 10 and 21, respectively, of this Code and definitions contained in Chapter 50 of this Code, shall apply to this Article.
(b) The phrase “one-family dwelling” shall mean a building containing one dwelling unit designed for exclusive occupancy by one family. This definition includes a manufactured or modular home that meets this definition and the requirements of the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. Sections 5401 et. seq.).
(c) The phrase “two-family dwelling” shall mean a building containing two dwelling units, neither of which is an accessory dwelling unit, designed for exclusive occupancy by two families.
(d) The phrase “multiple-family dwelling” shall mean a building containing three or more dwelling units, none of which are accessory dwelling units, that is not a townhouse.
(e) The phrase “dwelling unit” shall mean a single habitable unit in a dwelling providing complete independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and sanitation facilities and that is physically separated from any other habitable unit that may be located in the same building.
(f) The phrase “sleeping unit” shall mean a single unit that provides rooms or spaces for one or more persons, includes permanent provisions for sleeping and can include provisions for living, eating, and either sanitation or kitchen facilities but not both. Such rooms and spaces that are also part of a dwelling unit are not sleeping units.
(g) The phrase “guest room” means a room or group of rooms used or intended to be used for purposes of lodging by guests.
(h) The phrase “short term rental guest” or “guest” means any adult person or emancipated minor who is occupying a dwelling unit, sleeping unit, or guest room under any agreement, lease or contract, whether oral or written, and for a period of less than 30 consecutive days, whether or not such occupancy requires the payment of rent, fees or the payment of utilities or the provision of services, for the use of the dwelling unit; sleeping unit, or guest room.
(i) The phase “short term rental” or “short term rental unit” shall mean any of the following: a dwelling unit, a sleeping unit, or guest room that is offered for occupancy to a short term rental guest for a period of less than 30 consecutive days.
(j) The phrase “hotel” means any building or portion thereof containing six or more guest rooms.
(k) The phrase “caretaker” means a person with a primary residence on-site that is responsible for the maintenance and operation of a short term rental unit.
(l) The phrase “conversion” or “convert” means a change in use from a long-term residential use or a commercial use to a transient use.
Sec. 29A-52. Permit required.
No owner of any short term rental unit shall permit the occupancy of any portion of a dwelling unit by any guest unless that portion is permitted as required by this Article.
Sec. 29A-53. Permits--application, procedure, type.
(a) Applications for short term rental permits shall be filed with the code official by the owner or the owner’s agent and shall be accompanied by the required permit fee. The code official may reject any incomplete application;
(1) Applications for permit renewals shall be filed at least 90 days prior to permit expiration;
(2) Applications shall include a floor plan, drawn to scale, clearly indicating, layout and configuration of all guest rooms, location of all doors, exits, and all fire protection equipment. All dwelling units shall be equipped with a fire extinguisher with a minimum rating of 2A:10BC located near the kitchen area;
(3) Applications shall include a site plan, drawn to scale, showing parking and driveways, distance from lot line of proposed short term rental unit to neighboring residential structures, all structures and outdoor recreational areas that guests will be allowed to use, including but not limited to, deck/patio, barbecue grill, recreational fire, pool, hot tub, or sauna.
(4) Upon receipt of a complete application and fees the code official may issue a permit if the short term rental unit is eligible for permitting;
(5) Short term rental units which comply with the state building code and state fire code and have been constructed and certified for occupancy within one year prior to date of application and are otherwise eligible for permitting shall be issued a permit for the initial permitting period without additional inspection;
(b) All other short term rental units shall be inspected before a permit is issued. No permit shall be issued unless the short term rental unit complies with the provisions of this Chapter and all other applicable laws;
(c) Except as otherwise provided in this Article, any application for the renewal of an expired permit shall be processed as a new permit application and the short term rental unit must comply with all applicable laws;
(d) If a short term rental permit lapses as a result of the failure to comply with this section, the permit may be administratively reissued without regard to the provisions of paragraphs (a) through (c) of this Section if within 60 days of the expiration of the permit the owner complies with all other requirements of this Section 29A-53;
(e) The applicant shall identify a managing agent or contact person who resides within a 25 miles radius of the city and who has the authority to act for the owner. It shall be the responsibility of the owner or owner’s agent to provide and maintain updated contact information, including address, phone number, and e-mail, for receipt of all notices, orders, or other correspondence relating to the permitted property within ten days of any change in the managing agent or local contact’s contact information. Permittees and owners are responsible for the acts or omissions of any managing agent or contract person;
(f) Except as otherwise provided, all new short term rental permits, and short term rental permit renewal applications shall be completed and applicable fees paid for the maximum number of dwelling units or sleeping units that can be occupied by guests under the permit. The maximum allowable number of dwelling units or sleeping units that can be occupied by guests pursuant to a short term rental permit is determined by Section 29A-56.
Sec. 29A-54. Fees.
Fees provided for in this Article shall be established by resolution of the city council.
Sec. 29A-55. Term of permit.
Permits issued pursuant to this Article shall be for a term of three (3) years.
Sec. 29A-56. Permit conditions.
All short term rental units are subject to the following conditions:
(a) Allowable occupancy types. No permit for the operation of a short term rental shall be issued and the operation of any short term rental shall not be allowed within the following: Single family dwelling, two-family dwelling, multi-family dwellings, temporary structures, tents, recreational vehicles, motorhomes, trailers, boats, watercraft, pet houses, storage sheds, or garages, except:
(1) A single, detached, accessory dwelling unit having no more than 800 square feet of total floor space located on a property having one principal structure that is owner-occupied and homesteaded;
(2) A single family dwelling with five guest rooms or less, with a caretaker;
(3) The city council finds that it has a significant interest in both the development of housing and the vital economic interest of the tourism industry. Through new development of dwelling units, including the conversion of existing buildings having commercial uses to residential uses, up to ten (10%) percent of new dwelling units, with a maximum of five dwelling units per project, may be available for short term rental upon execution of a development agreement approved by city council, provided that city council must make the finding that but for the permitted short term rental unit(s), the development of new dwelling units proposed by the project would not reasonably be expected to occur. City council may impose conditions, including, but not limited to, the filing of restrictive covenants, in order to assure the continuation of permanent residential housing units, the preservation of neighborhood character, and other restrictions advancing the housing goals of the city; and
(4) Existing, non-conforming occupancy. Single family dwellings, two-family dwellings, accessory dwelling units, or multi-family dwellings, that on November 10, 2025 held at least one of the following: (i) an interim use permit for a vacation dwelling unit or accessory vacation dwelling unit; or (ii) an operational permit issued by the city code official for a vacation dwelling unit. A short term rental unit excepted by this paragraph, may be eligible to apply for a permit under this Article until and upon the latest expiration of such permits, and shall reasonably conform to all conditions provided herein. Existing, nonconforming occupancies types may be permitted provided that their nonconforming aspects are not changed or expanded. If the permit for the existing, nonconforming occupancy is revoked or lapses for any period of time, any right under this paragraph shall terminate;
(b) Prohibition on transfers. No permit shall be transferred;
(c) Informational notice. At the principal exterior entrance to a short term rental unit that is not owner-occupied, an informational notice shall be posted that complies with the following requirements:
(1) The notice shall be displayed in a conspicuous place;
(2) The notice shall indicate the name, e-mail address and telephone number of the owner or managing agent;
(d) Managing agent. If there is a change in managing agent, the new managing agent shall notify the code official in writing within ten days of the change;
(e) Parking Minimum. Except as otherwise provided in this Section, all short term rental units permitted shall provide a minimum of off-street parking spaces at the following rate:
(1) 1-2 bedroom unit shall provide one space;
(2) 3 bedroom unit shall provide two spaces;
(3) 4 bedroom unit shall provide three spaces;
(4) 5 bedroom unit shall provide four spaces;
The minimum off-street parking requirements of this Section shall not apply to short term rental units located in Form Districts, as defined in Chapter 50 of this Code;
(f) Parking requirements. All off-street parking spaces shall comply with the standards for off-street parking provided for in Chapter 50 of this Code. The number of required off-street parking spaces shall be determined by the applicable code official at the time of permitting. Failure to comply with these requirements will result in an additional nonconformance fee per parking space, except that effective [Effective date of ordinance], each permittee that the code official determines has space on the property to provide or construct the required off-street parking space(s) in conformance with this Code shall provide the off-street parking spaces required in this Section at its own cost, and the permittee shall not be entitled to tender payment of the nonconformance fee in lieu of providing the required off-street parking. The owner shall ensure that all required off street parking spaces are cleared of snow to at least the required dimension of off-street parking spaces within 72 hours after the end of every snowfall;
(g) Bedrooms. The maximum number of bedrooms in a short term rental unit that can be occupied by any guest shall be based on the number of bedrooms on record in the city assessor’s office on the date of short term rental application;
(1) The number of guests cannot exceed the occupancy limit for the number of bedrooms that can be occupied under this Code and Minnesota law, but shall not exceed ten;
(2) In no case shall a bedroom, sleeping unit, guest room or dwelling unit be allowed that does not comply with all applicable state and city building and fire codes;
(3) If the short term rental unit is a one-family or two-family dwelling, the maximum number of bedrooms that can be occupied by any guest shall be based on the lesser of the number of bedrooms on record in the city assessor’s office and verified or corrected by the life safety division on the date of the short term rental application or five bedrooms;
(h) Nuisance reduction. The permit holder shall ensure all requirements for waste removal services and prohibitions on burning of trash is strictly adhered to by guests of the short term rental unit;
(i) Compliance with codes. All structures proposed to be used as a short term rental unit must comply with the codes and requirements of the building official, fire official, land use supervisor, city clerk, and all other regulatory agencies.
Sec. 29A-57. Conversion fee.
Any dwelling unit or sleeping unit, not currently permitted pursuant to this Code on or after [Effective date of ordinance], shall be subject to a short term rental conversion fee at the time it is initially permitted as a short term rental unit. The conversion fee shall not apply if:
(a) Permit is being renewed; or
(b) Permit is being issue for a newly constructed dwelling unit or sleeping unit, constructed and inspected to state and city building and fire code standards in conformance with this Article and Section 29A-54(A)(5); or
(c) Permit is being issued for an existing, non-conforming short term rental unit on or before July 1, 2027.
Sec. 29A-58. Short term rental education requirement.
(a) Every owner or owner’s agent shall be required to complete a short term rental education course or program approved by the code official and provide satisfactory written proof of completion within the past six months:
(1) Upon application for a new short term rental permit or a renewal short term rental permit except that proof of completion of the approved course is valid for a period of three years; and
(2) Upon verification by the code official of one or more guest complaints or city code violations, the owner or owner’s agent shall be required to again complete and provide satisfactory written proof of completion of an approved short term rental education course or program within 90 days of notice by the code official to the owner or owner’s agent;
(b) The short term rental course or program shall include curriculum as determined by the code official, to include but not be limited to, Duluth short term rental ordinances, owner responsibilities, and safety standards. The code official may establish and maintain a short term rental education course or program that satisfies this requirement.
Sec. 29A-59. Inspection procedure.
(a) All premises permitted pursuant to this Article shall be made available for inspection by the code official at any reasonable time whether the request for inspection is in conjunction with the permitting of the short term rental unit or the result of a complaint. In addition, the code official may require the permittee to produce records and information demonstrating that the short term rental unit complies with the occupancy limits of the permit;
(b) If during the inspection or other investigation, violations of the provisions of this Chapter, or other applicable provisions of this Code are identified, or the permittee fails to produce records or information as requested by the code official, written notice shall be mailed to the permittee at the notification address on file with the code official. The notice shall identify all violations identified and provide a timeline in which all violations must be corrected or the short term rental unit vacated. Emergency repairs shall be completed in an expedited fashion in accordance with the order of the code official. All other repairs shall be completed within a reasonable period of time as determined by the code official. For repairs not identified as emergency repairs by the code official, the owner or owner’s agent shall, within fourteen calendar days of receiving the notice of violation, inform the code official and the guest(s) in the affected unit(s) of the scheduled repair date. At the end of the correction time, the short term rental unit shall be reinspected. If the short term rental unit is not vacated or the violations are not corrected, the code official may take any of the following actions:
(1) Provide for an additional correction period. In no case may the total amount of correction time provided by the initial period and any additional period exceed 60 days;
(2) Revoke the permit and order the vacation of the short term rental unit of all persons and property. The code official shall provide a reasonable time for vacation which shall not exceed 30 days;
(c) If the code official revokes a permit, written notice shall be mailed to the permittee at the notification address on file with the code official and posted in a conspicuous place at the short term rental unit. The code official or their designee, shall post the date the short term rental unit shall be vacated, and no person shall reside in, occupy, or cause to be occupied that short term rental unit until the code official permits. No person, other than the code official, shall remove or alter any posting.
Sec. 29A-60. Violations, enforcement and penalties.
(a) Violations. It shall be a violation of this Article, and a public nuisance, to do any of the following:
(1) Allow guest occupancy in any portion of an unpermitted short term rental unit;
(2) Allow guest occupancy in any unpermitted portion of a permitted short term rental unit;
(3) Allow more total guests to occupy a short term rental unit than are allowed pursuant to that unit’s number of legal bedrooms.
(4) Refuse entry to an inspection official where such entry is allowed pursuant to Section 29A-3;
(5) Fail to comply with any final order of the code official;
(6) Advertisement by a property owner or owner’s representative of any dwelling or sleeping unit or any portion thereof as available for rent that is not permitted for short term rental at the time the advertisement is made. For purposes of this Section, advertisement includes, but is not limited to, oral or written notice, such as a poster or a paid announcement in the print, broadcast, or electronic media, designed to attract public attention or patronage;
(7) Advertisement by a property owner or owner’s representative of any dwelling or sleeping unit or any portion thereof in excess of the number of bedrooms permitted for short term rental at the time the advertisement is made. For purposes of this Section, advertisement includes, but is not limited to, oral or written notice, such as a poster or a paid announcement in the print, broadcast, or electronic media, designed to attract public attention or patronage;
(8) Advertisement by a property owner or owner’s representative of any dwelling or sleeping unit or any portion thereof as available for rent without the short term rental permit number for the short term rental unit appearing in the advertisement. For purposes of this Section, advertisement includes, but is not limited to, oral or written notice, such as a poster or a paid announcement in the print, broadcast, or electronic media, designed to attract public attention or patronage;
(b) Continuing violations. Each day that a violation occurs or remains uncorrected after the final order of the code official shall constitute a separate violation;
(c) Enforcement. The city has the following enforcement powers:
(1) The city may issue an administrative citation pursuant to Chapter 12 of this Code;
(2) The city may issue a citation as authorized by Section 1-7 of this Code;
(3) The city may pursue any other civil action in law or equity in any court of competent jurisdiction, including without limitation a request for a declaratory judgment, restraining order or a temporary or permanent injunction;
(4) The city may revoke a short term rental permit and issue an order for vacation of the premises;
(d) Penalties. The owner of any property where a violation of this Article occurs, and any person violating this Article, shall be guilty of a misdemeanor and may be fined as provided in Section 1-7 or Section 12-6 of this Code;
(e) Rebuttable presumption of violation. There shall be a rebuttable presumption for a civil or administrative violation that a property owner is in violation of this Article upon the existence of any of the following:
(1) An agreement between a property owner and a guest that by its terms demonstrates a lease or license of a dwelling unit or sleeping unit for occupancy of a period less than 30 days; or
(2) An advertisement in any medium that holds out the dwelling unit or sleeping for lease or license for a period of less than 30 days.
Section 4. That this ordinance shall take effect and be in force 30 days from and after its passage and publication.
Statement of Purpose
STATEMENT OF PURPOSE: Short-term rentals were added as a use in 2012 in the City’s Unified Development Chapter (UDC). As lodging trends and demand have changed, the City has adjusted code standards, instituted a maximum cap, and made other adjustments related to short-term rentals. A moratorium was initiated by Resolution 25-0808R and Ordinance 25-028-O to review existing requirements of the licensing process, enforcement measures, and effects on housing and neighborhoods.
This Ordinance is the result of further study and collaboration of the Life Safety Division, Construction Services Division, Planning & Development Division, City Clerk’s Office, and the City Attorney’s Office. The ordinance amends Chapters 29 and 29A of the Duluth City Code and the key changes include; 1) Establishing a licensing process with a single entry point and is overseen by the Life Safety Division, 2) Establishing under what parameters short-term rentals can be established, including prohibiting the conversion of existing single-family homes to a short-term rental, allowing homeowners to establish short term rentals in detached accessory dwelling units, allowing home sharing in owner-occupied homes, and allowing short-term rentals to be established in new residential development (up to 10% of the units with a maximum of 5 units), 3) Streamlining lodging uses and classifications, and 4) Establishing a pathway for previously licensed short-term rentals to operate.
After this ordinance is adopted, it will be necessary to remove the vacation rental rules and processes from Chapter 50 (UDC) of the Duluth City Code.