(A) No property, structure or dwelling may be used as a short-term rental unless an application is submitted, and a license is first granted by the city. Short-term rentals located within the Central Business District shall not be subject to the restrictions of this section except with respect to the registered agent and short-term tax requirements as contained herein. The license shall be entered on a short-term rental registry.
(B) Application. A person desiring to undertake or allow the short-term rental of a dwelling unit in the city shall apply to the Building Official for a short-term rental license. The application shall by submitted by the owner. The license application shall be on a form prescribed by the city and include all required information.
(C) Criteria for issuance.
(1) Prior to issuance of a short-term rental license hereunder, the applicant shall ensure and the Building Official will verify the following criteria are met:
(2) The licensee accurately certifies on the application form that all applicable items found in this section are satisfied. In addition, the certfication shall constitute an ongoing assurance of compliance herewith. Such items shall include, but not be limited to, the following:
(a) A policy number for a valid, in-force liability insurance policy is provided to the city;
(b) That all garbage and rubbish are stored in compliance with city's solid waste ordinance;
(c) Compliance with all applicable provisions of the city code;
(d) Compliance with any special conditions established in the license.
(e) The dwelling must be materially used for its owner's enjoyment, which shall mean to state the owner shall accurately certify and document to the city annually that the dwelling has been physically inhabited by the owner for more days and nights than it has been rented.
(f) Short-term rental tax.
(i) Minnesota Sales Tax under M.S. § 297A.61: Short-term rentals must charge sales tax on lodging.
(ii) City of La Crescent lodging tax ordinance No. 573: Properties in the City of La Crescent who rent short-term rentals are required by law to comply with the City of La Crescent's lodging tax ordinance (Ch. 119).
(D) License fee. Each application shall be accompanied by payment in full of the required license fee. The annual license fee shall be determined by the City Council and set forth in the city fee schedule. The fee shall not be prorated.
(E) Number of bedrooms. Each license shall indicate the number of bedrooms which are contained in the dwelling. No license shall advertise the dwelling as containing any more than the identified number of bedrooms. The number of bedrooms, as indicated on the license, shall be used for all calculations required herein.
(F) Issuance of short-term rental license.
(1) If the Building Official determines that an applicant has met the requirements for issuance of a short-term rental license, the Building Official shall issue the applicant a short-term rental license.
(2) If the Building Official determines that an applicant has not met the requirements for issuance of a short-term rental license, the Building Official shall endorse on such application his/her disapproval and his/her reasons for the same and provide the application and recommendation for denial to the City Administrator. The City Administrator may either:
(a) Deny the application and return the endorsed application to the applicant to notify the applicant that his/her application is denied and that no license will be issued; or
(b) Direct the Building Official to issue the applicant a short-term rental license.
(G) Expiration of license. Except as otherwise provided in this section, all short-term rental licenses shall expire annually on December 31 of each year unless suspended or revoked earlier. Licenses granted hereunder constitute a revocable, limited right. Nothing herein shall be construed as granting a vested property right. No party shall have any expectancy of re-issuance of any license after its annual expiration.
(H) Renewal of license. Applications for renewal of an existing short-term rental license shall be made at least 30 days prior to the expiration of the current short-term rental license. All such applications shall be submitted to the Building Official on forms provided by the city and shall be accompanied by the required fee.
(I) License not transferable. No short-term rental license shall be transferable to another person or to another dwelling unit. Every person holding a short-term rental license shall give notice in writing to the Building Official within five business days after having legally transferred or otherwise disposed of the legal control of any dwelling unit for which a short-term rental license has been issued. Such notice shall include the name and address of the person succeeding to the ownership or control of such dwelling unit.
(J) Resident agent required. No short-term rental license shall be issued without the designation of a local agent. The agent must live within 30 miles of the dwelling unit. The agent may, but is not required to be, the owner. One person may be the agent for multiple dwelling units. At all times, the agent shall have on file with the Building Official a primary and a secondary phone number as well as a current address. The agent or a representative of the agent shall be available 24 hours a day during all times that the dwelling unit is being rented at the primary or secondary phone number to respond immediately to complaints and contacts relating to the dwelling unit. The Building Official shall be notified in writing within two business days of any change of agent. The agent shall be responsible for the activities of the tenants and maintenance and upkeep of the dwelling unit and shall be authorized and empowered to receive service of notice of violation of the provisions of city ordinances and state law, to receive orders, and to institute remedial action to affect such orders, and to accept all service of process pursuant to law.
(K) Denial of short-term rental license. Any applicant aggrieved by the denial of a short-term rental license, or the non-renewal of an existing license may appeal to the City Council. Such appeal shall be taken by filing with the City Administrator within ten days after the date of issuance of the written denial, a written statement requesting a hearing before the City Council and setting forth fully the grounds for the appeal. A hearing shall be held within 60 days of receipt of the request. Notice of the hearing shall be given by the City Administrator in writing, setting forth the time and place of hearing. Such notice shall be mailed, postage prepaid, to the applicant at his/her last known address at least ten days prior to the date set for hearing.
(Ord. 567, passed 5-22-23; Am. Ord. 574, passed 9-11-23)