Ordinance No. 260204-A - Short Term Rental Licensing Ordinance Amendment

To:

City of Saugatuck, City Council

From:

Grayson Moore, Director of Planning & Zoning

Meeting Date:

February 4, 2026

RE:

Short Term Rental Ordinance Amendment

City Council Members, At your January 12, 2026 meeting, staff presented the 2025 Short Term Rental Report. Council provided guidance for staff along with legal counsel to prepare amendments to the Short Term Rental Ordinance to address concerns raised by both staff and the public. The attached draft ordinance proposes the following amendments: •

Fixed License Renewal Date: All short term rental licenses will now take effect on the same date as the expiration of the prior license, establishing a consistent renewal cycle.

Application Window: Renewal applications may be submitted no earlier than sixty (60) days and no later than thirty (30) days prior to the license expiration date.

One-Time Amnesty: A one-time amnesty is provided for license holders meeting all of the following criteria: o The short term rental license expired between April 24, 2025, and the effective date of the proposed ordinance. o The license holder submitted a renewal application after the original renewal deadline but before the license expired. o The renewal application otherwise complied with all applicable City Code requirements.

Amnesty Application Period: Applications under this amnesty must be submitted within five (5) calendar days of the ordinance’s effective date.

Amnesty Fee: Applicants submitting under the amnesty provision will be subject to a late fee ($525) previously determined by the Council.

Enforcement Discretion: The enforcing officer may excuse compliance with deadlines if a license holder can demonstrate that the untimely submission was caused by extraordinary circumstances beyond their control, such as natural disasters, public health emergencies, documented medical issues, or military service or deployment, but not by the license holder’s or agent’s own action, inaction, or negligence, or other reasonably foreseeable circumstances.

These amendments are intended to simplify the licensing process, provide flexibility for license holders affected by timing issues, and maintain compliance with City Code requirements. Respectfully submitted,