City of Pelican Rapids, Minnesota Ordinance no. 2026-06 an Ordinance amending Chapter Ten, Part 4, short-term rentals of The Pelican Rapids City Code

THE COUNCIL OF THE CITY OF PELICAN RAPIDS DOES ORDAIN:

SECTION ONE. That Chapter Ten of the Pelican Rapids City Code be amended as follows:

CHAPTER 10. HOUSING

PART 4. SHORT-TERM RENTALS

1004.01 PURPOSE

It is hereby declared that the purpose of this ordinance is to establish a licensing procedure to regulate the short-term rental of residential property in the City of Pelican Rapids 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 the short-term rental of dwellings is conducted, operated, and maintained so as not to become a nuisance to the surrounding neighborhood or an influence that fosters deterioration or creates a disincentive to reinvest in the community. The operation of a short-term rental property is a business enterprise that entails responsibilities required of the owner, the local property manager, and guests.

1004.02 OBJECTIVES

Subdivision 1. To establish a licensing procedure for short-term rentals in the City of Pelican Rapids.

Subdivision 2. To provide local governance to promote the health, safety, and welfare of local residents and patrons of short-term rentals.

Subdivision 3. To prevent conditions that may adversely affect citizens and persons utilizing short-term rentals.

Subdivision 4. To provide and enforce standards, design, operation, and maintenance of short-term rentals that will reduce negative impacts to the community.

1004.03 DEFINITIONS

The following definitions shall apply in the interpretation and enforcement of this Ordinance:

Bedroom shall mean 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 multiple means of egress.

Dwelling shall mean a building or portion thereof, designated exclusively for residential occupancy, including single-family, two-family, twin home, and townhome dwellings, but not including hotels, motels, or boarding houses.

Guest shall mean any person or persons renting a short-term rental.

Licensee shall mean a person or entity to whom a license for a short-term rental is issued under this chapter.

Local Property Manager shall mean a natural person who is authorized to make decisions about the rental, occupancy, and maintenance of the short-term rental and who is able to be on-site within 60 minutes of notification.

Short-term Rental shall mean 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 thirty (30) day period and that is not a rental unit, bed and breakfast, resort, hotel, motel, or any such location required to be licensed by the Commissioner of Health under Minnesota Statutes, section 157.16.

1004.04 LICENSE REQUIREMENT

Subdivision 1. License Required. No person or entity shall operate or permit the operation of a short-term rental unless they have obtained a valid license from the City of Pelican Rapids, which is in full force and effect. Only a licensee who complies with the requirements of this ordinance shall be entitled to hold a license.

Subdivision 2. License Application and Fee. Any property owner desiring to operate a short-term rental must apply to the City for a short-term rental license on the form provided by the City, as well as pay the required license fee as established in the City’s fee schedule and register to pay lodging tax, if applicable. The license application shall require the following information.

A. Name, physical and mailing address, and 24-hour phone number of the property owner;

B. Address of the subject property;

C. Name, physical and mailing address, and 24-hour phone number of the local property manager;

D. Number of bedrooms and sleeping areas in the short-term rental;

E. A site plan of the subject property containing the following:

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

2. Location of buildings;

3. Location and number of parking spaces;

4. Location of all fences used for screening; and

5. Adjacent streets with names.

F. Any licensing requirements by the Minnesota Department of Health under Minnesota Statutes Section 157.16, and compliance with state licensing is required where applicable;

G. Proof of rental liability insurance;

H. Proof of registration to pay lodging tax, if applicable; and

I. Any supplemental information that the City finds reasonably necessary to determine whether to approve a short-term rental license. Any supplemental requests made by the City shall be furnished by the applicant within fifteen (15) days of the request. If the supplemental information is not provided within this timeframe, the City may move forward on approval or denial of the short-term rental license.

Subdivision 3. Processing of License Application.

A. City Administration will review the application.

B. The license will be issued if the application meets all the requirements and conditions of this section, including passing the short-term rental inspection. Knowingly making a false statement of fact or knowingly omitting any information that is required in the application shall be grounds for denial of a license.

C. The City shall not issue more than eight (8) short-term rental licenses. Licenses shall only be issued for dwellings located in the Residential (R-1, R-2, and R-3) Zoning District. Short-term rental licenses may be allowed in a commercial zone but shall be permitted only as special uses after compliance with the proper special use permit procedures.

D. The City shall not issue more than two (2) short-term rental licenses to the same person or entity.

E. Licenses shall be issued for a calendar year and expire on July 31st of each year. To renew a short-term rental license, the licensee shall file an application with the City no later than thirty (30) calendar days prior to the short-term rental license expiration date.

F. Licenses are non-transferable, either to a different person or location. The City shall be notified in writing within five (5) business days of any change of property owner. The new property owner shall be required to re-apply for a short-term rental license within thirty (30) days of assuming ownership. If a new application is not submitted, the City may revoke the existing short-term rental license for the subject property.

G. The City shall notify the applicant by first class mail if a license application is denied. The applicant shall have the right to appeal the determination to the City Council. Such appeal shall be requested by submitting a written notice of appeal to City Administration within fifteen (15) days after notification is issued. The appeal will be heard by the City Council at its next meeting, at which time the applicant or an attorney representing them, may appear and make a presentation to the City Council. After the hearing, the Council may uphold or reverse the determination based upon the provisions of this chapter and upon the protection of the public health, sanitation, safety or general welfare of the community at large. The City Council shall issue written findings and determination within thirty (30) days of the hearing.

Subdivision 4. Conditions of License. Short-term rentals shall be subject to the conditions identified in this subdivision, as well as Part 2 standards, except where expressly modified in this Part 4. Failure to meet or comply with these conditions shall be grounds for denial or revocation of a short-term rental license.

A. Compliance Required: The short-term rental shall comply with all applicable Federal, State, and local codes, ordinances, and regulations.

B. Inspections: The property owner shall allow the premises to be inspected by personnel authorized by the City during normal business hours.

C. Posting of License: The licensee must post the license and the site plan at the short-term rental in a conspicuous location.

D. Lodging Tax: If applicable, the licensee must apply for and pay the required lodging tax and provide the City with their State and local sales tax numbers. The licensee must comply with all applicable federal, state, and local tax laws, including, but not limited to, any applicable sales taxes on fees or services provided.

E. Local Property Manager: Each short-term rental must have a local property manager who is within fifty (50) miles of notification and able to be on-site to respond to any complaints, regardless of the time of day.

F. Insurance: The licensee shall maintain rental liability insurance and provide evidence of insurance to the City, when requested.

G. Cooking Facilities: Cooking facilities are not permitted in any guest bedroom.

H. Garbage and Recycling: Garbage and recycling shall be stored completely enclosed within designated containers. The licensee shall provide sufficient trash storage containers and services to accommodate the demand of the occupants.

I. Parking: At least two off-street parking spaces are required.

J. Outdoor Noise: Outdoor amplified sound that can readily be heard by surrounding property owners shall be prohibited between the hours of 10:00 p.m. and 7:00 a.m. This ordinance defers to state law and city code, should any part conflict.

K. Fireworks: The use of fireworks is prohibited on the premises.

L. Signage: All signage must comply with the City’s Zoning Ordinance.

M. Exterior Appearance: There shall be no change in the exterior appearance of the dwelling, or other visible evidence of the conduct of a short-term rental.

N. Age Restriction: The main rental contact/person renting from the licensee must be a minimum of twenty-one (21) years of age.

O. Occupancy Limit: A maximum number of two (2) guests are allowed per bedroom, not counting children under the age of three (3), with a maximum of twelve (12) registered guests per short-term rental. Additional occupancy by the use of recreational vehicles, trailers, tents, or other structures is not permitted. Occupancy limits shall not exceed those otherwise permitted under the City’s Zoning Ordinance, should the restrictions be stricter that set forth in this section.

P. Unregistered Guests: Unregistered guests are allowed on a limited basis and must leave the property by 10:00 p.m. any night of the week.

Q. Guest Limit: The total number of guests, registered or unregistered, cannot exceed double the occupancy limit for the short-term rental.

R. Guest Records: The owner shall keep a record of all short-term rental activity for thirty (30) days. 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 request. Guest records are private data under Minn. Stat. §13.02 and shall only be used when needed for inspection or enforcement purposes.

S. Guest Disclosure: The licensee shall post within the short-term rental notice of all use restrictions as set forth in this subdivision.

Subdivision 5. Other Requirements This chapter does not replace any licensing requirement of the Minnesota Department of Health under Minnesota Statutes Section 157.16; compliance with state licensing is required where applicable. The licensee must comply with all applicable federal, state, and local tax laws, including, but not limited to, lodging taxes and any applicable sales taxes on fees or services provided.

1004.05 INSPECTIONS, ACTION

Subdivision 1. Authority. Personnel directed by the City Administrator are hereby authorized to make inspections reasonably necessary for the enforcement of this chapter.

Subdivision 2. Right of Access. All persons authorized herein to inspect shall have the authority to enter, at all reasonable times, any licensed short-term rental for the purpose of enforcing this chapter. Such inspections shall be made at such frequencies as the City Administration deems appropriate and necessary. If any owner, occupant, or other person in charge of a short term rental unit subject to licensing this Ordinance fails or refuses to permit free access and entry to the structure or premises under his control, or any part thereof, with respect to which an inspection authorized by this Ordinance is sought to be made, the Appropriate Authority as defined in 1002.04 may, upon showing that probable cause exists for the inspection and for the issuance of an order directing compliance with the inspection requirements of this section with respect to such short term rental unit, petition and obtain such order from a court of competent jurisdiction.

Subdivision 3. Inspections. The City shall provide reasonable advance notice to the licensee or the local property manager prior to entry into any short-term rental for the purpose of inspection. The licensee of the short-term rental or their representative shall have the right to be present at the inspection. Upon completion of an inspection, the City shall provide a completed copy of the inspection report to the licensee or their designated local property manager.

Subdivision 4. Notice of Violation. Written notice of a violation of this chapter may be given to the licensee by first class mail. Said notice may contain a compliance order stating that compliance with this chapter shall be made immediately, and in that case, the notice shall advise the licensee that the short-term rental may be reinspected in not less than fifteen (15) days.

Subdivision 5. Appeals. A licensee may appeal to the City Council the requirements of any compliance order. Such appeal shall be requested by submitting a written notice of appeal to City Administration within fifteen (15) days of the date of issuance of the compliance order. Enforcement of the compliance order shall be stayed during the appeals process. The appeal will be heard by the City Council at its next meeting, at which time the licensee, local property manager, or an attorney representing them, may appear and make a presentation to the City Council. After the hearing, the Council may uphold, reverse, or modify the requirements of the compliance order based upon the provisions of this chapter and upon the protection of the public health, sanitation, safety or general welfare of the community at large. The City Council shall issue written findings and determination within thirty (30) days of the hearing, which shall include a timeframe for compliance, if applicable.

1004.06 CONDUCT ON LICENSED PREMISES:

Subdivision 1. Disorderly Premises. It shall be the responsibility of the licensee to ensure that all guests occupying or visiting the licensed short-term rental and associated property conduct themselves in such a manner as not to cause the premises to be disorderly. For the purposes of this section, a short-term rental is disorderly when a violation of the following statutes, codes, and ordinances occurs on the premises:

A. Minnesota Statutes, section 609.75 through section 609.76, which prohibits gambling;

B. Minnesota Statutes, section 609.321 through section 609.324, which prohibits prostitution and acts relating thereto;

C. Minnesota Statutes, section 152.01 through section 152.028, which prohibits the unlawful sale of possession of controlled substances;

D. Minnesota Statutes, section 340A.401, which prohibits the unlawful sale of alcoholic beverages;

E. Minnesota Statutes, section 340A.503, which prohibits the underage consumption of alcoholic beverages;

F. Minnesota Statutes, section 609.595, which prohibits damage to property;

G. Minnesota Statutes, section 97B.021, Minnesota Statutes, section 97B.045, Minnesota Statutes, section 609.66 through section 609.67, and Minnesota Statutes, section 624.712 through section 624.716, which prohibit the unlawful possession, transportation, sale, or use of a weapon;

H. Minnesota Statutes, section 609.72, which prohibits disorderly conduct, when the violation disturbs the peace and quiet of the other occupants of the licensed premises or other surrounding premises;

I. Minnesota Statutes, section 624.20 through section 624.21, which prohibits exploding fireworks;

J. Minnesota State Fire Code, section 302 and Minnesota State Fire Code, section 307.4.2 through section 307.5, which regulates recreational fires; and

K. Chapter 8, Part 1 of the City Code, which prohibits public nuisances.

Subdivision 2. Violations.

A. Upon determination by the City that a licensed short-term rental was used in a disorderly manner, the City shall notify the licensee by first class mail of the violation, direct the licensee to take steps to prevent further violations, and issue a fine to the licensee for an amount determined by the City Council as part of the approved annual city fee schedule. The fine shall be paid within fifteen (15) days after notification is issued. If the licensee fails to pay the fine, the license for the short-term rental may be denied, revoked, suspended, or not renewed by the City Council. The licensee may appeal the violation determination, as provided in subdivision 2D below.

B. Upon a second violation within twelve (12) months of subdivision 1 of this section involving the same licensed short-term rental, the City shall notify the licensee by first class mail of the violation, require the licensee to submit a written report of the action taken to prevent further violations, and issue a fine to the licensee for an amount determined by the City Council as part of the approved annual city fee schedule. The written report shall be submitted to City Administration within fifteen (15) days of request of the report and shall detail all actions taken by the licensee in response to all notices regarding violations to subdivision 1 of this section within the preceding twelve (12) months. The fine shall be paid within fifteen (15) days after notification is issued. If the licensee fails to comply with the requirements, the license for the short-term rental may be denied, revoked, suspended, or not renewed by the City Council. The licensee may appeal the violation determination, as provided in subdivision 2D below.

C. If a third or subsequent violation of subdivision 1 of this section occurs at the same licensed short-term rental within twelve (12) months after any two (2) previous violations for which notices were sent to the licensee, the license for the short-term rental may be denied, revoked, suspended, or not renewed by the City Council. The licensee may appeal the violation determination, as provided in subdivision 2D below.

D. Any licensee aggrieved by a violation of subdivision 1 of this section shall have the right to appeal the determination to the City Council. Such appeal shall be requested by submitting a written notice of appeal to City Administration within fifteen (15) days after notification is issued. During the appeals process, the deadline for any requirements shall be stayed. The appeal will be heard by the City Council at its next meeting occurring at least fifteen (15) days after the filing of the notice of appeal, at which time the licensee, local property manager, or an attorney representing them, may appear and make a presentation to the City Council. After the hearing, the Council may uphold, reverse, or modify the determination based upon the provisions of this chapter and upon the protection of the public health, sanitation, safety or general welfare of the community at large. The City Council shall issue written findings and determination within thirty (30) days of the hearing. If the City Council upholds the original determination, the licensee shall be notified by first class mail of any outstanding requirements and be provided fifteen (15) days from the date of the notification to complete said requirements. The date of notification shall be three (3) days after postmark of the notice. If the licensee fails to comply with the requirements, the license for the short-term rental may be denied, revoked, suspended, or not renewed by the City Council.

E. The standard of proof to be used in determinations as to conduct constituting violations under subdivision 1 of this section is a fair preponderance of evidence in support of such a determination. It is not necessary that criminal charges be brought to support a determination of violation of subdivision 1 of this section, nor shall the fact of dismissal or acquittal of such a criminal charge operate as a bar to adverse license action. The City shall consider whether the licensee took reasonable steps to prevent violations.

1004.07 ENFORCEMENT; MISDEMEANOR VIOLATION; EFFECT OF REVOCATION

Subdivision 1. Nothing in this chapter prevents the City from taking enforcement action under any of its fire, housing, zoning, health, safety, or other codes or ordinances and State laws for violations thereof, or from seeking injunctive relief and criminal prosecution for violations of any ordinance, code, or law. 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 short-term rental license.

Subdivision 2. Nothing contained in this chapter prevents the City from seeking injunctive relief against a property owner, licensee, or local property manager who fails to comply with the terms and conditions of this chapter.

Subdivision 3. Violation of this chapter is a misdemeanor. Each separate day on which a continuing violation occurs is a separate violation.

Subdivision 4. If a short-term rental license is revoked, it shall be unlawful for anyone thereafter to allow any new short-term rental occupancies of the dwelling until such time as a valid short-term rental license is issued by the City. No person who has had a license revoked under this chapter shall be issued a short-term rental license for a period of at least one (1) year from the date of revocation.

SECTION TWO. That this ordinance shall take effect and be in force on publication.

Adopted this 8th day of September, 2026.

CITY OF PELICAN RAPIDS

ATTEST: Danielle Harthun, City Clerk

BY: Brent E. Frazier, Mayor