By James Windell
Despite threats of a lawsuit and other consequences, the South Haven City Council at their regular meeting on Monday, February 3, 2025, passed a resolution pertaining to Short Term Rentals (STR).
Resolution 2025—09 proposed an additional six-month extension on the registration and commencement of any new STR businesses and the cancellation of the lottery for 2025.
A previous six-month moratorium was approved by the City Council last year. Although there are, according to the Short-Term Rental Snapshot Report released last month, 35 possible STR certificates available, those were previously put on hold by the moratorium. After the Short-Term Rental Snapshot report was presented to the City Council in January, 2024, City staff began preparing for a drawing, or lottery, to issue the new “non-exempt” business rental certificates identified in the report as being available for 2024. However, at a City Council meeting in February, 2024, the Council voted to enact a six-month moratorium to prohibit the issuance of the 27 available non-exempt business rental certificates and cancel the lottery scheduled for 2024. A second moratorium was implemented by the City Council in August, 2024.
Although only three South Haven residents made public comments on the proposed resolution, all three of them urged the City Council to oppose the moratorium extension. According to one speaker, “If you pass this resolution, we will be going to our lawyers first thing in the morning and file a lawsuit.” He stated that adding another six-month moratorium would not be upheld by a Michigan court.
Another person making a public comment, asserted that “Extending this moratorium beyond a year is legally questionable, financially damaging, and an overreach of property rights.” She added that no appellate court in Michigan has upheld a moratorium extending beyond six months.
Comments by City Manager Kate Hosier regarding the resolution reminded the council that there is a work group, appointed at the last City Council meeting, tasked with resolving issues holding up a new STR ordinance. “We are very close with our work group in getting something accomplished,” Hosier said. The work group is to report back by the middle of February.
While some City Council members acknowledged that delaying a revised STR ordinance by approving a new moratorium extension was not likely to be a popular decision they nonetheless supported it.
When the roll call vote was completed, the resolution passed calling for a six-month extension of the moratorium.
The terms of the moratorium are that beginning on February 19, 2025 (at the end of the current moratorium that commenced on August 19, 2024) and continuing until August 19, 2025, the City will not accept any applications (or process or approve any pending applications or requests) to register or approve any new STR business units. The moratorium will have no effect on any STR that was registered and certified prior to January 1, 2024.
