Exhibit 5E Return to Agenda

ORDINANCE NO. 501

ESTABLISHING SECTION 616 OF THE CITY CODE REQUIRING

LICENSING OF SHORT TERM RENTALS

The City Council of the City of Detroit Lakes does hereby ordain:

Section 1: City Code is amended to include Section 616 as follows:

Section 616. Short Term Rental

616.01 Purpose. The purposed of this ordinance is to establish a licensing procedure to
regulate short term rental of residential property in the City of Detroit Lakes in order to protect
the health, safety, and welfare both of guests using short term rentals and of citizens impacted by
short term rentals. This ordinance is adopted to ensure that short term rental of dwelling units is
conducted, operated, and maintained so as not to become a nuisance to the surrounding
neighborhood or an influence that fosters blight and deterioration or creates a disincentive to
reinvest in the community. The operation of short term rental property is a business enterprise
that entails responsibilities required of the owner, local agent, and guests.
616.02 Objectives.
Subd. 1. To establish a licensing procedure for short term rentals in the City
of Detroit Lakes.

Subd. 2. To provide local governance to promote the health, safety, and

welfare of local residents and patrons of short term rental establishments.

Subd. 3. To prevent conditions that may adversely affect citizens and

person utilizing short term rental establishments.

Subd. 4. To provide and enforce standards, design, operation, and

maintenance of short term rentals that will reduce negative impacts to the community.

616.03 Definitions. The following terms when used in this ordinance have the following
definitions:
Subd. 1. Bedroom. A part of the inside of a short term rental that is divided
from other areas by walls and a doorway and that has its own floor and ceiling that is
furnished primarily as sleeping quarters, containing a bed or furniture that can convert to
a bed, and having more than one means of egress.

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 Subd. 2. Code Enforcement Officer. An employee of the City designated as
the Code Enforcement Officer. The term Code Enforcement Officer also includes all
City employees authorized to issue citations.

Subd. 3. Dwelling. Means any building or other permanent or temporary

structure, including a manufactured or mobile home which is wholly or partly used, or
intended to be used, for living or sleeping by human occupants.

Subd. 4. Guest. Any person or persons renting a short term rental.

Subd. 5. Hotel. A building, structure, enclosure, or any part thereof used as,
maintained as, advertised as, or held out to be a place where sleeping accommodations
are furnished to the public. May also be referred to as a motel.

Subd. 6. Owner. Any person who, alone or with others, has title or interest
in any building, property, dwelling, dwelling unit or portion thereof, with or without
accompanying actual possession thereof, including any person who as tenant, agent,
executor, administrator, trustee, or guardian or an estate has charge, care, control or any
dwelling or dwelling unit.

Subd. 7. Person. Any individual, firm, corporation, association,

governmental entity, or partnership and its agents or assigns.

Subd. 8. Primary Residence. Means the dwelling unit within which a

person lives for six months plus a day during a calendar year.

Subd. 9. Primary Resident. Means a person living on a property where the

property is the person’s primary residence.

Subd. 10. Property Manager. Means a natural person residing within 30

miles of the City of Detroit Lakes who is authorized by the rental unit owner to make
decisions for the owner about rental, occupancy and maintenance of the rental unit, or a
licensed, or bonded, and/or insured company engaged primarily in providing such
services for hire.

Subd. 11. Rent, Lease, Let, or Sublet. Means the leasing or rental unit to a
non-owner for a fixed or non-fixed period of time, and shall include other similar

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 arrangements whereby nonpayment of a periodic payment means the occupants may be
evicted without the necessity of either a statutory mortgage foreclosure procedure, a
statutory termination or contract for deed procedure, or a statutory repossession
procedure.

Subd. 12. Short Term Rental. A dwelling or part of a dwelling that is used as,
maintained as, advertised as, or held out to be a place where sleeping accommodations
are furnished to the public on a nightly, weekly, or for less than a 30-day time period and
is not a bed and breakfast, resort, hotel or motel, or any such location required to be
licensed by the Commissioner of Health under Minnesota Statutes 157.16.

Subd. 13. Short Term Rental, Hosted. (Hosted shore term rental) A dwelling
unit that is offered to transient guests for a period of less than 30 consecutive days, where
a primary resident of the property is present while the transient guests are present.

Subd. 14. Short Term Rental, Un-hosted. (Un-hosted shore term rental) A
dwelling unit that is offered to transient guest for a period of less than 30 consecutive
days, where the property serves as a person’s primary residence but a primary resident of
the property is not present while the transient guests are present.

Subd. 15. Short Term Rental, Dedicated. (Dedicated short term rental) A
dwelling unit that is offered to transient guests for a period of less than 30 consecutive
days, where the property does not serve as a person’s primary residence.

616.04 License Required. No person or entity shall operate or permit the operation of a
short term rental regardless of whether a fee is charged for such use, unless they have obtained a
valid license from the City of Detroit Lakes, which is in full force and effect. Only a person who
complies with the requirements of this ordinance shall be entitled to hold a license. The license
for a short term rental is nontransferable, either to a different person or location.

616.05 License Procedure.

Subd. 1. License Application. Any property owner desiring to undertake

short term rentals must apply to the City of Detroit Lakes for a short term rental license
on the form provided by the City. The application must include all the information
requested. A license must be approved prior to operating a short term rental within the
City. A license will not be approved until the applicant has applied for the rental
registration and the unit has passed inspection. A license will not be approved until the
applicant has registered to pay the lodging tax.

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Subd. 2. The license application shall include the following information.

A. Name, residence and mailing address of property owner;

B. Address and Parcel Identification Number of the subject property;

C. Legal description (from the deed) of the subject property;

D. Name of property manager including address and phone number;

E. Number of bedrooms and sleeping areas in the subject property;

F. Building plans clearly dimensioned and scaled;

G. A site plan showing the following:

1) Exterior property lines showing lot width, lot depth, and lot area;

2) Location and size of buildings showing setbacks from lot lines;

3) Number of parking spaces;

4) Screening plan listing all plants or fences;

5) Adjacent streets with names.

H. Type of short term rental

1) Hosted short term rental;

2) Un-hosted short term rental;

3) Dedicated short term rental.

I. Proof of registration to pay lodging tax;

J. Proof of rental registration and successfully completed inspection.

Subd. 3. Processing Application.

A. The City Administrator will refer the application to City staff for review.

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 B. The license will be issued if the application meets all the conditions in Section
616.06 including passing the rental registration inspection and registration to
pay the lodging tax.

C. The City will not issue more than 100 short term rental licenses.

D. The City will notify the applicant in writing if the application is denied. The
applicant may appeal the denial by filing a written notice to the City
Administrator within 15 days of the date of the notice of denial.

616.06 Conditions of License. Short term rentals shall be subject to the conditions and
standards identified in this subdivision.

Subd. 1. Design. The building shall be of residential design. Accessory

structures such as a guest cottage can only be used for a hosted short term rental.

Subd. 2. Licenses. The owner must obtain all required State and local
license.

Subd. 3. Rental Registration. The owner must apply for rental registration
and rental unit must pass the required inspection.

Subd. 4. Lodging Tax. The owner must apply for and pay the required
lodging tax and provide the City with their State and local sales tax numbers.

Subd. 5. No cooking facilities. Cooking facilities are not permitted in any

guest bedroom.

Subd. 6. Parking. At least two off street parking spaces are required plus
one space for each bedroom. The parking area shall be screened from adjacent
residential property as provided in Section 3 of the zoning ordinance.

Subd. 7. Signage. Signage is limited to one sign single or double faced that
is non-illuminated and does not exceed four (4) square feet per sign face. The content of
such sign is limited to the name and address of the facility.

Subd. 8. Number of Guests. A maximum number of two guests are allowed

per bedroom (not counting children under the age of 3) with a maximum of 10 guests per

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short term rental. Additional occupancy by the use of recreational vehicles, trailers, tents
or other structures is not permitted.

Subd. 9. Insurance. The owner shall provide evidence of rental liability

insurance.

Subd. 10. Inspections. The owner will allow the licensed premises to be
inspected by City employees during normal business hours.

Subd. 11. Guest Records. The owner shall keep a record of all short term
rental activity. The information shall include name, address, phone number, and vehicle
license plate information for all guests. Such information shall be provided to the City
upon 48 hours notice.

Subd. 12. Events. No events can be hosted at the facility.

Subd. 13. Guest Disclosure. The license must disclose in writing to their
guests the following information.

A. Contact information and phone number for the Property Manager;

B. Emergency phone numbers;

C. The maximum number of guests allowed at the short term rental;

D. Property rules related to outdoor features of the rental;

E. That the City’s noise ordinance will be enforced by the Detroit Lakes Police
Department;

F. That disorderly behavior is prohibited;

G. That no events can be hosted at the facility.

Subd. 14. Zoning. Short Term Rentals are allowed in residential and
business zoning districts.

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 Subd. 15. Posting of License. The licensee must post the license at the
licensed property and post the license number on all print, posters, or web
advertisements.

Subd. 16. Dwelling Maintenance. The short term rental licensed premises
must meet the requirements of City Code 1002 – Dwelling Maintenance Code and City
Code 612 – Rental Unit Registration and any other relevant City codes.

Subd. 17. Property Manager. Each short term rental must have a property
manager residing within 30 miles of the City of Detroit Lakes.

616.07 License Period.

Subd. 1. Term. Licenses shall be issued for a calendar year and expire on
st
December 31 of each year.

Subd. 2. Non-Transferable Licenses. Licenses are non-transferable and

shall expire upon change of ownership of the property.

616.08 License Fee. The license fee for 2023 shall be $350. Thereafter, license fees shall
be established by City Council resolution as set forth in part 210 fees. Fees shall not be prorated.

616.09 Ordinance Enforcement and License Revocation.

Subd. 1. Enforcement.

A. Injunctive Relief. In the event of a violation or threatened violation of this

ordinance, the City, in addition to other remedies, is entitled to seek injunctive
relief or proceedings to prevent, restrain, correct or abate such violations or
threatened violations. The City shall be entitled to recover its costs,
disbursements and attorney fees incurred in obtaining such injunction, as a
condition of issuance of the license.

B. Misdemeanor. The penalty for a violation of this ordinance shall be a

misdemeanor.

C. Fines. In addition to penalty provisions in (A) and (B) above, the

administrative fines for violations of this Section shall be as established by the
City Council in the schedule. For 2023, the fine for the first substantial and

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 relevant violations shall be $250. The fine for the second violation shall be
$500 and the fines for the third violation shall be $750 and automatic license
revocation.

Subd. 2. License Revocation. Any short term rental license may be revoked for
any violations related to this Section including but not limited to the following:

A. Failure to meet the provisions of Section 616. Licensing of Short Term

Rental;

B. Failure to meet the provisions of Section 1002. Dwelling Maintenance Code;

C. Failure to meet the provisions of Section 612. Rental Registration;

D. Failure to meet the provisions of Section 506. Lodging Tax;

E. Failure to meet the provisions of Section 505. Noise Ordinance;

F. Disorderly Conduct.

Subd. 3. License Revocation for Disorderly Conduct. Disorderly conduct is

prohibited at all short term rentals. It shall be the responsibility of the owner to ensure
that all guests occupying or visiting the licensed short term rental property conduct
themselves in such a manner as not to cause the licensed short term rental to be
disorderly. For the purposes of this Section disorderly conduct includes but is not limited
to the following Statutes or ordinances.

A. Minn. Stat. §§ 609.75 – 609.76, which prohibits gambling;

B. Minn. Stat. §§ 609.321 – 609.324, which prohibits prostitution and acts

relating thereto;

C. Minn. Stat. §§ 152.01 – 152.07, which prohibits the unlawful sale of

possession of controlled substances;

D. Minn. Stat. §§ 340A.401, which prohibits the unlawful sale of alcoholic

beverages;

E. Minn. Stat. §§ 340A.503, which prohibits the underage consumption of

alcoholic beverages;

F. Minn. Stat. §§ 609.595, which prohibits damage to property;

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 G. Minn. Stat. §§ 97B.021, 97B.045, 609.66 – 609.67, and 624.712 – 624.716,
which prohibit the unlawful possession, transportation, sale, or use of a
weapon;

H. Minn. Stat. §§ 609.72, which prohibits disorderly conduct, when the violation
disturbs the peace and quiet of the other occupants of the permitted premises
or other surrounding premises;

I. Minn. Stat. §§ 152.027, Subd. 4, which prohibits the unlawful sale of

possession of small amounts of marijuana;

J. Minn. Stat. §§152.092, which prohibits the unlawful possession or use of drug
paraphernalia;

K. City Code Section 901, which prohibits public nuisances;

L. City Code Section 505, which prohibits nuisance noise;

M. Minnesota State Fire Code 302 and 307 – 307.5, which limit recreational fires
to no larger than 3’ x 3’ feet, natural wood only, attended until extinguished,
conditions permitting; and

N. Minn. Stat. §§ 624.20 – 624.21, which prohibits exploding fireworks.

Subd. 4. Determination of Disorderly Conduct.

A. Upon determination by the City that a licensed short term rental was used in a
disorderly manner, the City shall notify the owner by mail of the violation and
the amount of the fine ($250) to be levied and direct the owner to take
appropriate action to prevent further violations.

B. If a second instance of disorderly use of the licensed property occurs within

120 days of the first violation, the City shall notify the owner by mail of the
violation and require the owner to submit, within 15 days, a written report of
the actions taken and actions proposed to be taken to prevent further
disorderly use of the premises and notify the owner that the amount of fine
($500) to be levied.

C. If a third violation of disorderly use occurs within one year of the second of
any two previous instances of disorderly conduct for which notices were sent
to the owner pursuant to this Section, mailed notice will be sent to the owner
notifying him/her of the fine to be levied ($750) and that the short term rental
license is revoked. If a license is revoked under this Section the owner cannot
apply for any licenses for a short term rental for a period of one year.

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Section 2: EFFECTIVE DATE

This ordinance shall take effect upon passage and publication as provided by Law.

Passed and adopted this 13th day of December 2022.

Approved this 13th day of December 2022.

Matt Brenk, Mayor

Glori French, City Clerk

First Reading: November 7, 2022

Second Reading: December 13, 2022

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