Short-term rentals possible in St. Joseph

A proposed St. Joseph city ordinance allowing AirBnb and VRBO short-term rentals could expand lodging options, but the city council has slowed its progress to discuss further next month.

The council voted to table the proposed ordinance on Sept. 16 due to disagreement among council members over whether to include residentially zoned areas in the ordinance. They are scheduled to revisit the proposed ordinance at a council work session in mid-October.

St. Joseph’s two current temporary dwelling options for visitors are the Roadway Inn and The Estate Bed and Breakfast. To host more visitors within city limits, the city council asked the St. Joseph Planning Commission to recommend that the current rental ordinance allow short-term rentals. After months of research and drafting the new ordinance, the planning commission presented it to the council on Sept. 16.

Short-term rentals offer new opportunities for St. Joseph. Instead of visitors driving from hotels in St. Cloud or Sartell, they would be able to stay in St. Joseph and be more likely to engage with local businesses, promoters of the new ordinance say.

Council member Adam Scepaniak predicts the passing of the ordinance to allow short-term rentals will have a positive effect on the community.

“If people want to visit their sons and daughters or attend city events, we don’t have a great way of hosting them,” Scepaniak said.

For family members visiting their CSB+SJU students, the potential increase in St. Joseph lodging options offers convenience and variety that is not available currently.

Short-term rentals would also generate more tax revenue for the city of St. Joseph. A 5% tax on short-term rental transactions would go directly to the Convention and Visitors Bureau (CVB), according to Nate Keller, the director of community development. The CVB is responsible for marketing and promoting the business community as well as enhancing the visitor experience in St. Joseph. More recently, the CVB has been active in promoting St. Joseph on social media and hosting Joetown Blocks, a community block party, which was held in June of this year.

Uncertainty remains as to whether Airbnbs and VRBOs will become a reality in Joetown. Despite the proposed ordinance passing through the planning commission with a 6-0 vote, it was tabled at the most recent city council meeting.

The main points of contention among council members stem from concerns over how residential areas will be affected if this ordinance is adopted. Council members worry this move would decrease property values, damage the character of residential areas, invite parties and result in losses of permanent units from the housing market. Keller pointed out that the planning commission foresaw many of these concerns and addressed them within the proposed ordinance.

As the ordinance is drafted, all units must be owner-occupied to prevent corporations from purchasing homes in the area for the sole purpose of renting them out short-term. The proposed ordinance defines short-term as fewer than 27 days. Each short-term rental unit would be licensed and inspected annually, which is in alignment with other cities’ regulatory methods.

At the next council work session, the council intends to do a deep dive into the language used in the proposed ordinance, Keller says. They hope to examine sample ordinances to understand how other communities have structured their ordinances to address some of the concerns council members have about the short-term rental ordinance as it is drafted now. Keller added that the ordinance should have enough teeth that it can be enforced and effectively protect the residential areas of St. Joseph.

As the city council continues to grapple with this issue, visitors to St. Joseph and parents of Bennies and Johnnies await the opportunity for new lodging options.