By James Windell
The South Haven City Council voted to send a revised Short-Term Rental (STR) ordinance to the Planning Commission.
While this was welcome news to some factions, it was met with something less than enthusiasm by others.
The revised STR ordinance proposal, which was the product of an STR Workgroup, appointed at the last City Council meeting, features various changes from the current ordinance. Among the changes in this latest version are a new licensing process, new occupancy requirements, new parking requirements, and a system for acknowledging complaints. One of the key changes includes a new licensing requirement that all existing short term rentals transition to this updated licensing system. The proposed ordinance introduces two distinct classes of STRs. Replacing the previous “STR Business Unit” and “STR Personal Unit,” there would be Class I and Class II STRs. A second key change would be the creation of an overlay district where any new STRs would have to be located.
In accepting the revised STR ordinance most members of the City Council admitted it was not a perfect ordinance and some, including Council Member Mary Hosley, who was a member of the STR Workgroup, wanted additional changes.
Citizens making public comments were of two minds. On the one hand, were those who wanted to advance this proposed ordinance, like Joe Wilkins, who said that the City Council members should not be intimidated by threats of lawsuits and instead should “Keep your heads down and do what’s right.”
On the other side were those who expressed the opinion that this version was so flawed it invited lawsuits. One representative of this point of view was James Oakley. Oakley identified himself as an attorney and President of the South Haven Property Rights Coalition, an organization of 87 members. Oakley said that if this ordinance was approved it would harm STR busi-nesses and will hamper the profitability of STRs. Oakley added that “If you go forward with this ordinance, you are knowingly and intentionally trampling their rights.” He said that approving the ordinance will cost the city millions of dollars. And he implied that his group and others will sue the city over the ordinance.
Prior to the regular City Council Meeting on Monday, February 17, 2025, a workshop was held from 5:00 pm to 6:45 pm. During this workshop, the proposed ordinance was reviewed and discussion was held between the City Manager, City Attorney David Eberle and the City Council.
Eberle gave an overview of the specific changes in the proposed ordinance and City Manager Kate Hosier commented on aspects of those changes. Eberle said that while any new STRs would have to be in the overlay district, “If they are lawful nonconforming use, then they are allowed to continue.” Prolonged discussion of what exactly constitutes “lawful nonconforming use” followed.
In the regular City Council meeting after the Workshop, Council members unanimously approved sending the proposed ordinance to the South Haven Planning Commission and asked that the commission do an “expedited review” of the document so that a public hearing could be held at the next City Council Meeting on March 3, 2025.
Various members of the Council expressed their views of the actions they took to move the proposed ordinance to a public hearing and a possible vote to accept the ordinance. Council Member from Ward 2, Wendy Onuki, said, “I feel good about the STR ordinance moving forward. It will be an improvement for the residents.”
Mayor Annie Brown ended the meeting by stating: “I want to thank everyone who worked on the STR work committee. I’m very pleased you were able to work together and move forward.”
