A group of Wayzata property owners has filed a lawsuit in Hennepin County District Court challenging the City of Wayzata’s recently adopted short-term rental ban. The case, filed October 17 under Court File No. 27-CV-25-18923, names the City as the sole defendant and seeks to block enforcement of Ordinance 852, which prohibits the use of homes for short-term rentals (STRs) within city limits beginning April 1, 2026.
The plaintiffs — Adlon C. Adams, 225 Manitoba Ave LLC, Olivia A. Adams, Wayzata Cottage LLC, and Robert C. Fisher, as trustee of the Robert C. Fisher Trust — collectively own several single-family homes in downtown Wayzata, including properties on Central Avenue, Manitoba Avenue, and Lake Street East. Each property has been used as a short-term rental through platforms such as Airbnb, and the owners allege they purchased and improved the homes specifically for that purpose.
Filed by attorneys Patrick B. Steinhoff and Bruce D. Malkerson of Malkerson Gunn Martin LLP, the complaint argues that the City’s STR prohibition amounts to both a procedural violation and an unconstitutional taking of property rights. The plaintiffs assert three primary claims:
- Procedural Challenge: They contend that Ordinance 852 is a de facto zoning ordinance adopted without the legally required public hearing before the Wayzata Planning Commission, in violation of Minnesota’s Municipal Planning Act (Minn. Stat. § 462.357).
- Nonconforming Use Protections: The plaintiffs claim that because their short-term rentals were lawful prior to the ordinance, they constitute “legal nonconforming uses” that cannot be retroactively prohibited under Minnesota law.
- Regulatory Taking: They allege that banning STRs “goes too far” and unfairly diminishes the value of their properties, amounting to a regulatory taking under both the U.S. and Minnesota Constitutions.
The ordinance at the center of the dispute — approved in September and published October 6 — states that “no person is allowed to lease, license or agree to allow the use of a dwelling unit, or portion thereof, for a short-term rental,” defined as a stay of fewer than 30 consecutive days. The effective date was timed to coincide with the expiration of existing rental dwelling licenses on March 30, 2026.
As previously reported by Wayzata.com, the City Council voted 4–1 on September 9, 2025, to approve the first reading of the STR ban following months of debate over neighborhood impacts, parking, and enforcement. The second reading passed September 23.
The plaintiffs are asking the court to declare the ordinance void, enjoin the City from enforcing it, and — if necessary — compel the City to initiate condemnation proceedings to determine “just compensation” for the alleged taking.
The case represents one of the first legal challenges to a municipal short-term rental prohibition in the west-metro area and could set precedent for how Minnesota cities regulate Airbnb-style lodging.
Wayzata.com will continue to follow developments in the case as it proceeds through the Hennepin County District Court.
