Tag: Wayzata City Council

The Wayzata City Council voted 4-1 Tuesday night to approve an emergency interim ordinance imposing an immediate 12-month moratorium on new short-term rentals, with Mayor Andrew Mullin casting the lone dissenting vote, citing concerns largely centered on procedural sequencing.

The action follows a March 30 district court order that voided the city’s earlier short-term rental ordinance, setting off a new round of discussion over how Wayzata should regulate the use moving forward. City staff said the emergency pause is intended to give the council time to study the issue and consider changes to the city’s zoning ordinance and other official controls.

Community Development Director Alex Sharpe opened the discussion by outlining the legal and procedural backdrop. He said the city adopted Ordinance 852 on Oct. 9, 2025, prohibiting short-term rentals through its rental dwelling licensing regulations, but that approach was later challenged in court by short-term rental operators.

“On March 30th, 2026, the district court issued an order declaring that Ordinance 852 was a zoning regulation and therefore void,” Sharpe told the council.

Sharpe said staff brought forward the moratorium as a possible tool while the city considers a new zoning-based framework. He emphasized that staff was not explicitly urging the council to adopt the moratorium, but said it was being presented for consideration because of the risk that additional operators could apply before new zoning rules are in place.

“Specifically, we’ve had already one, potentially two new applicants that were not short-term rental operators in 2025 apply for short-term rental licenses in 2026,” Sharpe said.

He later confirmed those were not just preliminary inquiries. When asked whether the applications were complete or still in an early phase, Sharpe said: “They’re complete applications with fees paid,” adding that rental inspections had not yet occurred.

That timing, Sharpe explained, could carry long-term consequences. He told the council that once a use is lawfully established, it can become a legal nonconforming use if the city later changes its zoning rules. In practical terms, that means a newly approved short-term rental could potentially continue even after a new ordinance is adopted, so long as it complies with applicable provisions and does not lapse for more than a year.

Council Member Molly MacDonald said she supported both the moratorium itself and the decision to adopt it on an emergency basis, framing the vote as a continuation of the city’s earlier work on the issue.

“We had really studied this, engaged the community, and I think really came to the right conclusion,” MacDonald said. “While there may be some debate about how we got there, I think where we got was the right place.”

Council Member Ken Sorensen also backed immediate action, saying the temporary pause was consistent with the city’s earlier direction and would give the council time to continue discussing the issue without allowing additional applications to move forward in the meantime.

“I’m in favor of this moratorium. I think we should enact it as soon as possible,” Sorensen said. He said the move was “very consistent with where we ended up with the ordinance we passed last year,” and noted the city had already received two new applications.

“I think we could expect more if we don’t enact a moratorium,” Sorensen said. Sorensen said the emergency measure would create space for the council to continue evaluating its options. “It gives us the time we need to really think this through,” he said.

Mayor Andrew Mullin said his opposition was procedural rather than substantive. He said the council had not yet received “a full legal briefing on the status of our existing case, which we lost,” and that he wanted the city to signal to the community that it was still evaluating all available paths before acting. In his view, adopting a moratorium before receiving that briefing felt “out of order,” and he said he would have preferred to table the matter and revisit it after council had a clearer understanding of the court ruling and its options. “We are looking at all options and we are going to take the path that makes the most sense,” Mullin said, indicating those options could include an appeal, zoning regulations, or a return to what he described as responsible regulations.

Mullin said he considered the move premature because the council still did not know what path it would ultimately choose. “It doesn’t mean that I’m not in support of it,” he said, but added that his concern was “how the information is coming to us and not having a full understanding of the implications of court ruling.” He said he would have preferred to consider the moratorium after receiving a fuller legal briefing.

Mullin also read a statement into the record from existing short-term rental license holders Theresa and Bob Fisher, who he said were unable to attend the meeting. Their message urged the city to include current operators in the discussion rather than treating them as outsiders to the community.

“We sincerely want our voice to be heard,” Mullin read from the statement. “We would welcome an opportunity to work with a task force or related group to come up with ideas and an action plan to identify and address the issues of short term rentals.” The Fishers added that local owners want “to have a positive relationship with our fellow community members, be responsible residents, and want to be treated as part of the community.”

In the public forum portion of the council meeting, Benton Avenue resident Marilyn Richter urged the council not to lose momentum on regulation despite the recent court ruling. Richter said the need for short-term rental rules “still exists for Wayzata” and pointed to ongoing problems on Benton Avenue, where she said issues tied to a concentration of short-term rentals had persisted for at least two years.

Richter told council members that the city should not let its planning efforts be derailed by the lawsuit. “Please don’t let your interest in planning be dropped because of the lawsuit,” she said, adding that “there has to be a way” to regulate short-term rentals, noting that similar issues have been addressed in communities across the country.

The ordinance approved Tuesday imposes a 12-month moratorium on any new short-term rental use in the city while staff studies whether and to what extent Wayzata’s official controls should be revised. Under the ordinance, the moratorium does not apply to short-term rentals with licenses that are active and in good standing as of the ordinance’s effective date, or that were active and in good standing when Ordinance 852 took effect.

Because at least four of the five council members voted to declare an emergency, the moratorium took effect immediately upon adoption rather than waiting for an additional reading and publication. Staff had told the council that without emergency adoption, the ordinance likely would not have taken effect until sometime in May.

In the ordinance preamble, the council found that short-term rentals “have the potential to negatively impact the health, safety and welfare” of the city if not properly regulated, and that the city needs time to study the issue and consider “necessary and appropriate changes” to its policies, ordinances and official controls.

Tuesday’s vote marks the city’s latest move in an ongoing fight over short-term rentals, as Wayzata shifts from a court-rejected prohibition toward a temporary freeze designed to preserve time for a new regulatory approach.