City works to enhance tourism

Following nearly 10 months of deliberation, the St. Joseph City Council officially approved a final ordinance on Feb. 18 regulating short-term rentals (STRs), marking a significant step toward balancing the needs of homeowners, renters, and the local tourism economy.

An STR is defined 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 28 days and is not a bed and breakfast, resort, hotel, or motel.” Owner-occupied housing refers to a property where the listed owner resides for at least 183 days per year, ensuring that STRs in residential and agricultural zones remain community -focused. The ordinance establishes clear guidelines for property owners who wish to offer STRs through platforms such as Airbnb and VRBO while addressing concerns related to neighbourhood integrity, safety, and fair competition with traditional lodging businesses.

Under the new regulations, all STRs must obtain an annual license and a conditional use permit, which must be applied for and approved within commercial downtown districts and residential areas. The conditional use permit is property-specific, triggers a public hearing, and notifies all property owners within 350 feet of the residence. The proposed fees include $100 for the first STR unit and $25 for each additional unit, a $50 re-inspection fee, an annual license renewal that aligns with standard rental licenses, and a 3% lodging tax on all stays, which is due quarterly to the city.

Community Development Director Nate Keller emphasized that “All STRs in residential and agricultural districts shall be owner-occupied” to prevent corporations from buying up properties solely for short-term rentals.

“St. Joseph already has a low housing stock, and we don’t want to lose the housing units that we have for short-term rentals. This also brings new opportunities for local snowbirds or residents who are gone for a couple of months to rent out their homes instead of leaving them vacant,” Keller said.

The ordinance requires STRs to display license and emergency contact information in a visible location on the property. It also establishes enforcement mechanisms, including fines, suspensions, and permit revocations. Property owners must maintain rental records to ensure compliance with tax and occupancy laws, promoting transparency and accountability.

To address neighbourhood concerns, the ordinance sets occupancy limits and noise restrictions to prevent disturbances. Rental properties will have a maximum guest limit to avoid overcrowding, and repeated noise violations may result in fines or permit loss. These measures aim to preserve the quality of life for permanent residents while allowing STRs to operate responsibly.

Health and safety standards are another key component. STR owners must maintain working smoke detectors, carbon monoxide detectors, and emergency exits. Periodic inspections will ensure compliance, with penalties for violations.

By passing this ordinance, the City Council has created a structure that encourages responsible STR practices while minimizing future disruptions.

“It can help increase visitors to our town, offering additional lodging within St. Joseph rather than forcing them to stay in Waite Park or St. Cloud,” Keller said. “It also provides snowbirds with flexibility to generate residual income.”

The city is planning a larger goal to build a “boutique hotel,” but this ordinance offers immediate lodging solutions. Homeowners can now apply for short-term rental permits.

There are also potential benefits for our CSB+SJU community. When campus events draw large crowds, such as football games, senior activities, and commencement ceremonies, visitors now have the option of staying within the community if a nearby short-term rental is available. Bennie and Johnnie alumni can reconnect with their college experience while staying within St. Joseph.

Furthermore, these new regulations strive to create a fair and sustainable system that benefits property owners, visitors, and local residents alike. Moving forward, city officials will monitor the ordinance’s effectiveness and make adjustments as necessary to ensure a balanced approach to short-term rentals.

If you know anyone within the St. Joseph area or incoming families interested in this new opportunity, they can contact Community Development Director Nate Keller through email at nkeller@cityofstjoseph.com or 320-229-9425