Lake Elmo City Council — Transcript
Tuesday, December 9, 2025
Story
Lake Elmo Planning Commission rejects broad short-term rental allowance
2026 Planning Commission Work Plan Review and Approval
Topics for Joint City Council Planning Commission Workshop
Votes (3)
Short-Term Rentals: Policy Discussion
Dissent: Commissioners who voiced support for private property rights and the allowance of short-term rentals in some form, or suggested further research, represented the minority view.
Moved by N/A (Workshop Discussion) · Seconded by N/A (Workshop Discussion)
The Planning Commission engaged in an extensive workshop on whether to amend the zoning code to allow short-term rentals (STRs), currently not permitted. Key points included defining STRs versus bed and breakfasts, current regulations in Lake Elmo and Washington County, and policies of neighboring cities (Stillwater, Oak Park Heights, Woodbury, Hugo). Commissioners debated the impact of STRs on housing affordability, the potential for nuisance complaints (noise, gatherings), and the challenges of enforcement with limited city resources. Arguments for property rights were balanced against concerns for maintaining community character. While there was agreement on the need for Conditional Use Permits and limitations if STRs were allowed, a majority of commissioners expressed overall opposition to updating the zoning code to broadly permit them at this time.
2026 Planning Commission Work Plan
Dissent: None
Moved by Commissioner [0:53:35] · Seconded by Commissioner [0:53:45]
Staff presented a review of the 2025 work plan's accomplishments, including housekeeping amendments, cannabis ordinance status, the Old Village study, short-term rentals discussion, CIP review, annual training, public hearing notice updates, joint workshops, and sustainability program achievements (Green Steps, Gold Leaf). The proposed 2026 work plan outlined continued processing of housekeeping amendments, annual CIP review, preparation for the 2050 Comp Plan, annual training, and processing land use applications for significant city properties like the City Hall and Parks Building, the 76-acre park, and 180 acres. Commissioners inquired about the details of the sustainability programs and the priority level of the 2050 Comp Plan. The item regarding short-term rental regulation was proposed for removal from the 2026 work plan based on the prior discussion.
Discussion of Topics for January Joint Workshop with City Council
Dissent: N/A
Moved by N/A (Discussion for future agenda) · Seconded by N/A (Discussion for future agenda)
Commissioners discussed potential agenda items for the upcoming joint workshop with the City Council in January. Topics proposed included a request for more information and reconsideration of the proposed ball complex development on the 76-acre city park, with a suggestion to explore the 180-acre parcel as an alternative site. Other items raised were updates on county-tied paths and crosswalks, particularly a specific sidewalk on Wildflower, and safety concerns related to a sharp curve on Stillwater Way. An update on the Pioneer school property sale and other city-owned properties like Fury (fire station phase two) was also requested.
Notable Quotes (10)
Good evening. Tonight we're going to talk about short-term rentals and this format will be a little bit different. It'll be similar like a council workshop to get input. This is part of the work plan for 2025. So, as you recall at the beginning, we this went the planning commission as a housekeeping to include non winter occupied um uses and to move them into the bed and breakfast. This was pulled out and then we went ahead and had did a workshop on November 12th with the council and the council gave us some feedback on how what they would like to see. So, just to take a step back, the city currently does not allow short-term rentals in any zoning districts.
So the issue before the commission is should the commission consider short-term rentals? And if so, should the zoning code be updated to allow them? Um, where should they be located? Does it really um certain zoning districts, would it be more appropriate? Lot sizes? Um, should there be a conditional use permit? Also, if you want to approve them, should there be a limit on how many? And then, we'll talk about this a little bit um in the presentation, but um should they regulate as an R1 or R3 occupancy?
I do not recommend allowing single um short-term rentals that are non-h homesteaded, non-owner occupied in a single family home inventory. Um bed and breakfast homesteads, those are fine. You know, I'm totally fine with those. But the the short-term rentals, um they're going to alter our neighborhoods. Um they're they have a negative impact on our citizens safety, comfort, and expectations for predictability and um will transform the quality of life and the character of our community. I my biggest concern is, you know, we're in a housing shortage right now and so an investor is always going to be able to outbid a homeowner and so they're going to eat up our inventory and if city staff isn't able to handle the or coordinate with the bed and breakfast at this point, how will we manage short-term rentals?
But you know that's private property that's America. That's what very privy rights are important to us that you get to be able to deal with what you own.
So number one, should the zoning code be updated to allow short-term rentals? I say no. You say no. I say yes. I say no. Say no. No. Tom, did you have an opinion? I never have an opinion. [laughter] He's thinking, you know, I I think we I think we should in the sense of private property rights. Agreed. or you know, here's my thought too that you say that and and like I said, I've used them. I don't know if now's the time. I I agree with that. I feel like more research maybe uh more talking with the staff and seeing what they they think, what kind what can we put into place. I I'm not totally totally against it, but I don't know if just right now saying yay or nay is the way to go.
So, tonight we're looking at the 2026 planning commission work plan. I wanted to first start off with talking about what the 2025 work plan had on it and what we accomplished this year.
I have on here short-term rental registration and regulation ordinance. Based on our conversation tonight, it sounds like maybe planning commission is not interested in pursuing that. So, we can take that off the list if if you all agree.
I would ask staff that they do a formal presentation to us on each of these so we understand what we're committing to as a number two.
I'd like to learn a little bit more about this $2 million they spent on this 70ome acres between the two uh passive parks, the regional park reserve and Sunfish Park to put that big ball complex supposedly. That's one of the plans. And I was wondering that might be a little bit more appropriate over in that 180 acres. you might want to consider a different site for that type of use. You know, that uh that kind of blindsided me. I didn't know that was happening until the other day.
An update on that is the Valley Community Center has been looking at sites throughout the St. Croy Valley. We've been talking to them for over a year now. Um, they are in their due diligence process to see if their project is feasible. So, they should know.
Ordinances & Resolutions (21)
Defines hotel/motel, relevant to the classification of short-term rentals for licensing purposes.
Governs fire safety requirements, differentiating between R1 and R3 occupancy classifications for lodging.
Classifies residential and transient lodging structures into R1 (transient) and R3 (permanent) occupancies based on guest rooms and occupants.
The current code that prohibits short-term rentals; proposed to be updated for potential allowance.
A previous workshop where the City Council provided feedback to staff on short-term rentals.
Document outlining the planning commission's objectives and accomplishments for the past year.
Proposed document outlining the planning commission's objectives for the upcoming year, which was approved by the commission.
A type of license required by Stillwater and Oak Park Heights for operating short-term rentals.
Proposed as a requirement for short-term rentals in Lake Elmo if they are eventually permitted.
The current permit type in Lake Elmo, requiring owner-occupied residences, with concerns raised about fraudulent applications.
Specific city code section governing the conditions for operating a bed and breakfast.
A major long-range planning document, preparation for which is a new item on the 2026 work plan.
An annual item reviewed by the planning commission.
Reviewed in 2025 as part of housekeeping amendments, but no applications or refining were needed this year.
An ongoing study that is being rolled into the 2050 Comp Plan process.
City staff updated the mailing notice template to include more robust information.
A five-step voluntary program for cities to promote sustainable initiatives; Lake Elmo achieved steps 4 and 5 in 2025.
A program that continues work on green steps and tracks energy efficiency in city operations; Lake Elmo received two leaves in 2025.
Identified as the Creary platting application, which has been pushed to a later City Council meeting.
Annual Urban Reports that are expiring soon and will be reviewed in 2026.
An organization looking at sites for a project, currently in due diligence for the Pioneer school site.