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Hoisington Koegler Group Inc. ®® <br />®® j <br />Creating Places that Enrich People's Lives <br />TO: Mayo rTed Kozlowski and Members of the Stillwater City Council <br />BiII Turnblad, Community Development Director,:City of Stillwater <br />FROM: Jeff Miller, AICP, Consulting Planner <br />Laura Chamberlain, A1CP, Consulting Planner <br />DATE: November 30,.2016 <br />SUBJECT: Short Term Home Rental Analysis and Ordinance Alternatives <br />BACKGROUND <br />The proliferation of short term home rentals (STHR) has increased in the last several years, thanks to <br />the popularity of online:services and websites, such as Vacation Rental By Owner (VRBO) and AirBnB. <br />These sites aI16W individual property owners to rent. out their houses,: condominiums, individual <br />rooms, and vacation homes for these short term rental. stays. Users of short term home rentals. often <br />enjoy the "neighborhood" or "residential" feel of their accommodations, which is typically less in cost <br />than.a traditional hotel or other lodging. The ability to rent out property for the short term also brings. <br />the benefit of supplemental income to the homeowner. Some of the cost savings are due to the lack <br />of regulations, in the form of permits; zoning constraints, licenses, or taxes, which often apply to <br />lodging uses but not residential uses. Many.0ties.around the nation and within Minnesota have begun <br />to look at regulations for short term home rentals. <br />The City of Stillwater decided. to: undertake a study of this issue in part due to complaints from <br />traditional bed and breakfast (B&B) owners: It can be difFicult'for B&S owners to cornpete.with short <br />term home rentals because they do not Have to meet the. same regulations as B&Bs in Stillwater. There <br />have also been a few complaints about noise and parking issues from neighbors of short term home <br />rental properties in Stillwater. <br />In August of this year; the City Council selected Hoisington Koegler Group, Inc. (HKGi) to conduct a <br />study regarding Short Term Home.RentaIs {STHR}.This technical memo provides a summary of HKGFs <br />researcl, of other cities' approaches to STHRs, a summary of a community -wide questionnaire <br />regarding STHRs in Stillwater, a summary of input received at the Oct. 10`h stakeholders meeting. <br />Ho'isington Koegler Group Inc. <br />123 North Third Street, Suite 100 <br />Minneapolk, Min nesota:SS4a1 <br />(612) 338-0800 Fax (612) 338 6838 www.hkgi.com <br />