The 362 active licenses are among the nearly 500 properties land services officials have thus far identified using a software program as those currently listed for rent on various websites. Staff members shared these statistics and more with commissioners during the Tuesday, Nov. 16, committee of the whole meeting, including complaints received, revenue collected and compliance issues.
“This was our first year, and I think we’ve learned a lot,” said Gary Griffin, land services director. “We’ve got a really good process, really going from scratch to where we’re at today.”
The ordinance, which went into effect at the beginning of 2021, outlines the responsibilities of operators to abide by rules concerning septic systems and solid waste, occupancy, noise, parking and conformity with existing county and state requirements. It also establishes penalties for not resolving complaints, as well as fines for those falsely reporting violations at short-term rental properties.
— Gary Griffin, land services director
The ordinance states short-term rentals will not be allowed to operate in the county without an annual license and defines these rentals as “any home, cabin, condominium or similar building that is advertised as, or held out to be, a place where sleeping quarters are furnished to the public on a nightly, weekly, or for less than a 30-day time period and is not a bed and breakfast, resort, hotel or motel.”
Griffin said going through the exercises of addressing complaints and compliance issues in practice served as learning opportunities for staff. He pointed to one particular short-term rental in Crosslake where neighbors brought concerns about a number of issues to the mayor and planning and zoning officials in the city. Beyond noise and other nuisances, Griffin explained after Tuesday’s meeting that the property owner was also out of compliance with the ordinance by allowing too many people to sleep in each bedroom.
It took weeks for county officials to become involved, Griffin noted, which revealed the county must do further education on its 24-7 hotline and online form for short-term rental complaints, particularly with local governments should residents approach them with concerns.
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Revenue generated by the ordinance exceeded the $70,000 projection by more than 50%, with $107,000 collected. Griffin also pointed to other positive impacts of the ordinance, including septic compliance inspections that may not have occurred otherwise and a mechanism for addressing neighbor complaints.
“When you sum this all up, the amount of septics that have been upgraded or replaced or ensured they were in compliance, what a great story,” he said. “We didn’t do that a year ago, you know. I mean, that’s protecting our natural resource. They resolved 36 (complaints), and 24 of that were noise, parking or all that — all resolved. We learned some stuff in there so we’re going to be a lot quicker, but (there’s) a tool for folks that they can call and get some resolve, where we weren’t doing that a year ago.”
The 496 properties identified under 785 total listings included 46 operated by resorts, which are not required to obtain a separate license. The remaining properties include 15 in the license application process; 24 that received a first, second or third notice of the requirement; and 44 referred to the Crow Wing County Attorney’s Office for enforcement.
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More than half of the licensed properties — 191 — are located in Commissioner District 2, which includes the vacation destinations of the Whitefish Chain of Lakes and the communities of Crosslake, Breezy Point and Nisswa. District 5, which covers the northeastern and central portions of the county including the Cuyuna Range, is home to 83 licensed short-term rentals. Just one licensed property exists in District 3, which includes much of Brainerd and Baxter.
Land services staff fielded a total of 36 complaints about short-term rentals among 17 individual properties. Two-thirds of these complaints ultimately fell within what the ordinance regulates, with eight complaints concerning unlicensed rentals, seven concerning noise, five regarding garbage or waste, three about occupancy and one about parking.
Another 34 properties faced issues with septic systems, including 19 with substandard septic sizing and three that failed compliance inspections. These 22 properties have until 2022 to resolve these issues. Twelve properties granted licensure in the winter failed to complete a compliance inspection once it warmed up, and those cases were also referred to the county attorney’s office.
Commissioner Doug Houge asked how the county handles licensure in communities with more restrictive ordinances on short-term rentals. Houge noted leaders in the city of Cuyuna maintain their land use ordinance restricts short-term rentals entirely but the county issued four licenses to properties within the city limits. The city of Ironton this summer placed a moratorium on additional short-term rentals to explore the issue further.
Griffin said the licensing process is countywide and not dependent on local restrictions.
“The conclusion that was drawn is that by us allowing and licensing somebody that they’re legal, we’re saying they’re legal under our ordinance, but the city has full rights to shut them down with their own controls,” he said. “ … The argument or discussion was, well, it gets confusing for the property owner. And I can kind of get that. However, at the same time, we would be refunding if that was the case. We’re not enforcing city ordinances. That’s a real slippery slope, because we don’t have the tools to do that.”
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Houge said he wasn’t asking for the county to interject itself in city business, but he’d prefer some way for land services to avoid issuing a license to someone who wouldn’t be able to operate a short-term rental without violating a city’s ordinance.
“I guess I would prefer we try to avoid even issuing a license if we know we have cities or townships that they’re not relevant,” Houge said. “I don’t know. I’m just trying to prevent, I guess, the butting of heads against, you know, other jurisdictions.”
County Administrator Tim Houle said the ordinance is through the county’s public health authority rather than land use, meaning it applies countywide. Establishing the ordinance in this way was in part a response to requests from various city leaders who wished to see the regulations apply within cities as well as outside.
“We chose the path of we’re going to regulate everywhere,” Houle said. “It created this issue of, if the city wants to regulate, too, if the city’s ordinance prohibits something and our ordinance allows something, if we don’t issue the license, we lose. If they don’t issue a license, they might get sued. If we don’t issue a license because of their ordinance, we’re going to get sued, too. And we’re trying to avoid that. Because we can’t take responsibility for the ordinance they pass.”
— Commissioner Doug Houge
Houle suggested land services may be able to send notices to cities or townships as licenses are granted within their bounds or an annual report could be prepared and sent.
Griffin noted as part of the application process, property owners are advised to check with their local municipalities for any further regulations.
Houge said he’d like to see something sooner in the process to loop in local authorities rather than providing notice once a license is already issued.
“What I’m trying to do is prevent that from happening, where we’re just creating more friction or tension between the city and us. So I don’t know what the answer is either,” Houge said. “I just never expected to have areas that wouldn’t allow them, to be honest. I assumed everybody would be open to some. Some may want to cap it.”
Commissioner Paul Koering, participating in the meeting virtually, reiterated his opposition to the ordinance on the whole and noted he was shocked the cities of Cuyuna and Ironton wouldn’t welcome short-term rentals.
“I mean, these mountain bikers that come here from all over the country are the lifeblood of Crosby and Ironton, and bringing their dollars to spend there,” Koering said. “And now you’re telling them, you’re in essence saying, ‘No, we don’t want you to come here.’ I mean, that’s about the dumbest thing I’ve ever heard.”
Crow Wing County offers a 24-hour complaint hotline and online complaint form for reports concerning short-term rentals.
The hotline number is 218-824-1132 or submit a complaint at crowwing.us/shorttermrental.
Information required to report includes contact information for the complainant (kept confidential), the property address and the nature of the complaint.
The staff member will then follow up with the property owner or other emergency contact to relay the complaint and seek remedies. If the complaint is noise-related and it’s after 10 p.m., law enforcement will be contacted if the property owner cannot be reached.
CHELSEY PERKINS, community editor, may be reached at 218-855-5874 or [email protected]. Follow on Twitter at twitter.com/DispatchChelsey.
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