Minnetonka City Council — Transcript

Monday, March 2, 2026

Substance Regulations (Kratom, Tobacco, Cannabis)

Zoning Ordinance Update

Short-Term Rental Research and Regulation

Votes (3)

Substance Regulations Overview

Informational updates were provided for Kratom, Tobacco Enforcement, and Cannabis Retail. For Kratom, the council expressed a consensus to monitor the issue and encourage state-level action rather than pursuing local ordinances immediately. For Tobacco and Cannabis, no new formal actions were taken, but staff provided details on ongoing processes.

Chief Bordon provided a detailed overview of Kratom, its lack of regulation, health risks, and availability. He noted Minnetonka stores currently enforce a 21+ age limit for purchase, exceeding state law (18+). The discussion highlighted the complexity of regulating synthetic drugs due to constantly changing formulas. Regarding tobacco, the police department outlined its annual compliance checks and a balanced approach to enforcement, emphasizing education before punitive measures. The city attorney clarified the timeline for criminal vs. civil penalties in violations. Julie Wishnack then updated the council on the progress of cannabis retail registrations, explaining the multi-step state and local permitting process, with three of five allowed locations currently in various stages. A specific issue regarding a location's proximity to a park was discussed.

Zoning Update

Informational update received. Staff was directed to continue with the planned zoning update timeline, monitor state legislative developments, and integrate changes as necessary or amend the ordinance at a later date. Robust public engagement, including highlighting key changes, was emphasized.

Susan Thomas detailed the progress of the zoning update, highlighting the consultant's work in compiling feedback and drafting new ordinance modules. The ambitious timeline for completion by year-end 2026 includes extensive public engagement activities such as educational videos, tabling at local events, and virtual planning hours. Council members inquired about specific communication strategies for highlighting significant changes to residents. A key discussion point was how pending state housing legislation might affect the city's zoning update, with staff indicating they would continue with the current process while monitoring state developments for potential future amendments.

Short-Term Rental (STR) Research

Direction was provided to staff to explore regulation options for short-term rentals, specifically focusing on a homesteading requirement (with further clarification needed for snowbirds/part-time residents), establishing a maximum number of rentals, and considering geographical limitations. Staff will also seek legal advice regarding the optimal approach (licensing versus zoning), particularly after the forthcoming Weisetta court decision. Robust public engagement is a prerequisite for any proposed ordinance.

Kendall Larson presented a detailed report on short-term rentals (STRs), covering national trends (housing market impact, tourism), regional regulations (including Lake Minnetonka cities), and Minnetonka-specific data (low number of registered STRs, minimal complaints). Eric Nelson provided a critical legal analysis of licensing versus zoning approaches to STR regulation, referencing pending lawsuits against other cities (Weisetta, Apple Valley, Bloomington) and the implications for non-conforming rights. Council discussion revealed concerns about potential future impacts on housing affordability, neighborhood quality of life, and the character of lake properties, with several members advocating for some form of proactive regulation. While an outright ban was not favored, there was interest in regulating through homesteading requirements (with questions about 'snowbirds'), establishing a maximum number of STRs, and exploring geographical restrictions. The importance of robust public engagement was also stressed.

Notable Quotes (12)

I personally believe the best course is for the state and for I actually brought this up to u somebody in Congress and the cratom wasn't even on their radar and so I think it's more just education and then for the state of Minnesota to maybe step into this arena and take a look at where can they as a as a state control this.

Scott Bordon, Police Chief [9:56]
Substance Regulations Overview

So, I think if there is a discussion with the league, it's to maybe look at not so much identifying the name of the plant. It's like the the cause and effect.

Rebecca Shack, Mayor [10:29]
Substance Regulations Overview

remember that it takes a long time to get through a criminal prosecution. So if someone uh sold to an underage person, this could be for tobacco or for liquor, it takes sometimes up to a year to process that person.

Eric Nelson, City Attorney [16:05]
Substance Regulations Overview

Minnitankka is doing things slightly different than some other cities in terms of that building permit requirement. And I think a a example is a a a business owner who's looking for a site in Minnotonka that actually thought they had secured a site in the city of Hopkins, but some folks secured this site previous to them.

Julie Wishnack, Community Development Director [25:12]
Substance Regulations Overview

Since September, then Zone Co. has been uh compiling and considering all of the feedback that they got out of those work group sessions. They've been drafting a new zoning map. Um they've been drafting language in three modules.

Susan Thomas, City Planner [30:17]
Zoning Update

I personally would hate for all the good work that we've started to just pause not not knowing what will happen at the legislature.

Susan Thomas, City Planner [38:15]
Zoning Update

research has shown that short-term rentals are prevalent in places that, you know, attract tourism, have high income earners, um, have high value properties, you know, a lot of places that are city centers and have really good transit.

Kendall Larson, Housing Coordinator [1:35:10]
Short-Term Rental (STR) Research

The Weisetta case is going the crux of that lawsuit is that Weisetta says we've adopted our short-term rentals as a business regulation... and the flip of that is the plaintiffs are arguing that doesn't matter what you call it, your ordinance or where you say it's placed. This is a zoning ordinance.

Eric Nelson, City Attorney [1:42:25]
Short-Term Rental (STR) Research

The main concerns is that we looking at the chart which is a little bit more readable I think than what was presented in the staff report. Uh again, we in Mitaka Beach are the only communities around Lake Minnotonka that do not regulate um and do not regulate short-term rentals at all.

Paty Foster Bolton, Ward One [1:51:30]
Short-Term Rental (STR) Research

if I had to make a decision I probably would prefer that if we're going to do short-term rental it would be owner occupied. Um because I feel like I think about this landlord that lives in Minnitonka who owns homes in Minneapolis and she owns a lot of homes in Minneapolis but she lived in Maton.

Kimberly Wilburn, at large [2:02:51]
Short-Term Rental (STR) Research

I disagree with having to some sort of requirement for having the owner stay nearby or be in the place because again for our purpose, we wanted privacy. We wanted to get away. I could also see if we had um if we required homestead there being uh owners who say live in Arizona or Florida in the winter who want to have short-term rentals in their space.

Amanda Maxwell, W two [2:09:47]
Short-Term Rental (STR) Research

I don't think if the issue is short-term rentals on lakes, that is not impacting our affordability. Like, those are two separate things. And I think we at least should be intellectually honest about that conversation.

Rebecca Shack, Mayor [2:12:02]
Short-Term Rental (STR) Research

Ordinances & Resolutions (15)

2026 annual study session work planPlan

The plan that surfaced the Kratom discussion and scheduled the short-term rental item.

Kratom Consumer Protection ActOther

State-level legislative act introduced in 2023 but did not pass, intended to regulate Kratom sales.

City CodeOrdinance

Governs predescribed penalties for tobacco violations.

City Ordinance (Cannabis)Ordinance

Regulates cannabis retail, including buffer requirements from youth-oriented facilities.

Diagnostic Report (2024)Plan

Report reviewed at the start of the zoning update process.

Draft Module 1Other

Draft zoning ordinance covering introductions, districts, and uses.

Draft Module 2Other

Draft zoning ordinance covering development standards (setbacks, heights, landscaping, etc.).

Draft Module 3Other

Draft zoning ordinance covering nonconformities, administration, procedures, and glossary.

Comprehensive PlanPlan

Future planning document to be updated after the zoning ordinance.

Weisetta Ordinance (September 2025)Ordinance

Regulation adopted by Weisetta to prohibit short-term rentals, central to a pending lawsuit.

Rental Registration ProgramOther

Minnetonka's current mechanism for tracking short-term rentals.

Municipal Planning ActOther

State law providing enabling authority for cities to zone and plan.

Community Survey ResultsOther

Data on resident concerns, including short-term rentals, mentioned in the STR discussion.

2017 MemoOther

Previous city memo referenced in STR discussion.

July 2025 Meeting NotesOther

Previous council meeting where direction for STR research was given.

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