Mr. Tringali and Mr. Madhava re 534 St. Joseph

City Council Agenda Item Report FROM:

Ryan Cummins, City Manager

MEETING DATE:

July 8, 2026

SUBJECT:

Mr. Tringali and Mr. Madhava re 534 St. Joseph

DESCRIPTION: At the May 6 workshop, City Council passed the following motion: Motion by Dean, second by Muncey to add Mr. Tringali and Mr. Madhava to the next workshop meeting agenda. Via roll call vote, motion carried unanimously. Correspondence from Mr. Madhava is attached. A copy of the previous letter from the City Attorney to Mr. Madhava is also attached, along with a copy of the ordinance and its most recent amendments. LEGAL REVIEW: Legal has reviewed and will be at your meeting for any questions. SAMPLE MOTION: Workshop item at this time.

CHAPTER 99.5: SHORT-TERM RENTALS Section 99.51 Intent and purpose 99.52 Applicability 99.53 Definitions 99.54 License required 99.55 Application for short-term rental license 99.56 Fire inspection 99.57 Short-term rental standards and regulations 99.58 Duration of license; renewal 99.59 Effect on previously issued short-term rental certificates 99.60 Duty to remedy violations 99.61 Suspension and revocation of license 99.62 Violations and penalties 99.63 Transfer of ownership 99.64 Administration and interpretation § 99.51 INTENT AND PURPOSE. (A) The purpose of this chapter is to protect and promote the health, safety and welfare of the city's residents, property owners, and visitors by licensing short-term rentals within the city and establishing standards and regulations for the operation of the same. (B) The city's Short-Term Rental Task Force gathered facts and data pertaining to the potential community impacts of short-term rentals, both positive and negative, and provided recommendations on how to revise the city's short-term rental regulations, which this chapter seeks to implement into a cohesive regulatory framework. Consistent with those findings and recommendations, the city recognizes that short-term rentals have the potential to promote tourism and visitors to the city, increase property values, and provide valuable business opportunities for property owners. The city also recognizes that without appropriate regulation and enforcement, short-term rentals have the potential to create conflicts with adjacent properties, degrade the residential character of neighborhoods, impact long-term housing availability, and create nuisance conditions. (C) Accordingly, the intent and purpose of this chapter is to license and regulate short-term rentals in a manner that promotes the healthy development of short-term rentals and maintains the city's status as a tourist destination while minimizing potential adverse impacts of short-term rentals and preserving the character of the city that makes it such a popular destination for residents and visitors alike. (Ord. 240229-B, passed 2-29-2024) § 99.52 APPLICABILITY. All persons who desire to operate a short-term rental located anywhere within the city must first obtain a license from the city under the terms and conditions established in this chapter. (Ord. 240229-B, passed 2-29-2024) § 99.53 DEFINITIONS. For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. BEDROOM. A room which is intended, arranged, and designed to be occupied by one or more individuals primarily for sleeping purposes, as determined by the enforcing officer. DWELLING UNIT. Any building or portion thereof having independent cooking, bathing, and sleeping facilities, which is occupied wholly as the home, residence, or sleeping place, either permanently or transiently, with an independent entrance not located within another dwelling. In no case shall a motor home, trailer coach, automobile chassis, tent, or portable building be considered a dwelling. In the case of mixed occupancy where a building is occupied in part as a dwelling unit,

the part so occupied shall be deemed a dwelling unit for the purpose of this chapter and shall comply with the provisions thereof relative to dwellings. A dwelling unit shall include both manufactured units (mobile homes and modular homes) and site-built units. Hotels, motels, motor courts, bed and breakfasts, and inns, as those terms are defined by the Saugatuck City Zoning Ordinance, are not included in the definition of a DWELLING UNIT. ENFORCING OFFICER. The City of Saugatuck Zoning Administrator or his or her designee. FINISHED FLOOR. The finished horizontal base of any story of a dwelling unit that meets all building code requirements for a habitable space. LICENSE HOLDER. The person who applies for and receives a short-term rental license from the city pursuant to this chapter. A license holder may or may not be the owner of the dwelling unit and/or premises where the short-term rental is located. LOCAL AGENT. The individual or management company designated by the license holder to perform obligations under this chapter and to serve as the contact person for issues relating to a short-term rental. A LOCAL AGENT may be, but is not required to be, an owner or license holder, provided such owner or license holder satisfies the requirements of this chapter. MAXIMUM OCCUPANCY. The maximum number of allowable occupants and visitors of a short-term rental, as established in § 99.57(A). OCCUPANT. An individual living in, sleeping in, or otherwise having possession of a shortterm rental. An individual present in a dwelling unit during the term of a short-term rental shall be presumed to be an occupant unless circumstances clearly indicate that the individual is a visitor, as defined herein. OWNER. Any person holding legal or equitable title to a property or to real improvements upon a property solely, jointly, by the entireties, in common, or as a land contract vendee. PERSON. An individual, firm, corporation, association, partnership, limited liability company, or other legal entity. PREMISES. The property on which a short-term rental will be located. SHORT-TERM RENTAL. A dwelling unit which is rented to a person for less than 31 consecutive days, or is advertised to be rented for any period less than 31 days. VIOLATION NOTICE. A written notice issued by city advising the license holder and/or the local agent of a violation of this chapter. VISITOR. An individual visiting a short-term rental who will not stay overnight. A visitor shall not be considered an occupant, as defined herein. (Ord. 240229-B, passed 2-29-2024) § 99.54 LICENSE REQUIRED. An owner of any dwelling unit located anywhere within the city shall not rent, or allow to be rented, a dwelling unit to another person for less than 31 consecutive days, unless the owner or the owner's authorized agent has obtained a shortterm rental license for that dwelling unit in accordance with the requirements of this chapter. A short-term rental license is required for every dwelling unit intended to provide short-term rental accommodations, even if there are multiple dwelling units located on the same premises. (Ord. 240229-B, passed 2-29-2024) § 99.55 APPLICATION FOR SHORT-TERM RENTAL LICENSE. (A) Responsibility. The owner, either directly or through an authorized agent, shall apply for a short-term rental license through the submission of a short-term rental license application. (B) Application information required. A person seeking a license under this chapter shall submit a complete application, certified as being true, to the enforcing officer. The application shall include documentation and information reasonably required to demonstrate current and continuing compliance with the standards and regulations contained in §§ 99.56 and 99.57 and all of the following information: (1) The name, address, telephone numbers (home, work, or cell phone), and email address of the owner of the proposed short-term rental. If the proposed short-term rental owner is a corporate entity, the application must identify all current members and their percentage ownership interests in the corporation or other entity. If the proposed short-term rental owner is a trust, the application must identify all beneficiaries and trustees of the trust. (2) A signed attestation by the owner of the proposed short-term rental granting authority to the applicant to act on behalf of the owner to request a license under this chapter, if the applicant is not the owner. (3) The name, address, telephone numbers (home, work, or cell phone), and email address of the applicant, if different than the owner.

(4) The name, address, telephone numbers (home, work, or cell phone), and email address of the local agent. (5) The address and parcel identification number of the subject parcel containing the dwelling unit of the proposed short-term rental. (6) Documentation showing the owner's valid tenancy, ownership, or other legal interest in the proposed short-term rental premises, which may include, but is not necessarily limited to, a deed, land contract, or lease agreement. If the owner possesses less than fee ownership in the proposed short-term rental premises, a signed attestation from the owner of the premises authorizing the use of the same for a short-term rental must also be included. (7) A floorplan drawing of the proposed short-term rental that includes the number of bedrooms intended to be occupied as part of the short-term rental. (8) Proposed occupancy of the dwelling unit, not to exceed the maximum occupancy established by this chapter. (9) A drawing of the premises on which the short-term rental will be located that includes all buildings on the premises and the location where all parking will be provided. (10) A signed certification from the owner stating that the dwelling unit will be operated in conformance with all applicable requirements of this chapter. (11) A completed and signed rental inspection checklist from the Saugatuck Township Fire District. (12) Documentation showing that the dwelling unit that is being used as a short-term rental has been insured as a rental dwelling. (13) The owner shall notify the city of any changes to the approved application within no later than 30 days of the date of the change, including change of mailing address, contract information, or local agent/rental agency. (C) Application fee; eligibility. The application shall be accompanied by an application fee as established and set forth in the city's schedule of fees. This fee schedule shall also establish an "after the fact" fee that must be paid when a short-term rental is operated but without first complying with the procedural requirements of this chapter. This "after the fact" fee is not intended to be a penalty but shall reflect the additional legal and administrative costs incurred by the city as the result of the applicant's failure to initially comply with the requirements of this chapter. In addition, to be eligible for a short-term rental license, applicants must have no outstanding city taxes, permit or inspection fees, escrow deposits, or other amounts due and owing to the city. (D) Complete application. A short-term rental license application shall not be considered accepted until the enforcing officer deems it to be complete. If the enforcing officer determines that all required information was not supplied and/or if the applicant fails to pay the required fee, then the enforcing officer shall send written notification via mail or email to the applicant of the deficiencies. If the applicant fails to provide all the information required by this chapter and/or fails to pay the required fee within 14 days after being notified of the deficiencies, then the application shall be deemed incomplete and shall be denied on that basis. (E) License. Once deemed to be complete, if an application complies with all the standards and regulations of this chapter and the required fire inspection certificate has been submitted pursuant to § 99.56, the enforcing officer shall approve the short-term rental license. Each short-term rental license shall be designated with a unique license number. (F) Maximum limits on short-term rental licenses. (1) Findings and purpose. The city formed a task force, conducted studies, took surveys, and held public hearings to better understand the benefits and impacts of short-term rentals within the city. The city recognizes that while short-term rentals offer many benefits, short-term rentals are commercial in nature and that the over proliferation of short-term rentals may, among other things, be incompatible with, and may cause adverse impacts to, residential uses and the long-term residential character of certain zoning districts. The city also recognizes that its R-1 zoning districts are intended to promote and preserve single-family residential uses and are the most susceptible to the potential negative effects of the unchecked growth of short-term rentals. The city therefore finds that the public health, safety, and welfare will be best served by a maximum limit on the number of short-term rental licenses that may be approved in its R-1 zoning districts initially equal to approximately 20% of the total dwelling units in each R-1 district. It is the city's intent for this maximum limit to operate prospectively and to allow existing short-term rental licenses and certificates to continue to operate and renew, and to achieve such limits through attrition as licenses or certificates expire, are terminated, or are voided within districts that exceed the established limit. (2) Initial maximum limits on licenses in R-1 zoning districts.The initial maximum number of short-term rental licenses that may be issued in each R-1 zoning district shall be established as follows: (a) Community Residential R-1: No more than 67 licenses. (b) Peninsula West R-1: No more than ten licenses. (c) Maple Street R-1: No more than seven licenses. (d) Peninsula South R-1: No more than 11 licenses. (e) Peninsula North (Duneside) R-1: No more than three licenses.

(f) Peninsula North (Riverside) R-1: No more than two licenses. (3) Effect of maximum limit. When the number of short-term rental licenses and short-term rental certificates in a zoning district meets or exceeds the maximum number of licenses established for that district, the city shall not accept any additional applications for short-term rental licenses in that district until the number of active (e.g., not expired, voided, or terminated) short-term rental licenses and/or short-term rental certificates in that district falls below the maximum number, creating an available license. This maximum limit shall not be the basis for the termination or nonrenewal of an issued and otherwise valid short-term rental license. (4) Accessory dwelling units. Accessory dwelling units shall not be subject to the maximum number of licenses established herein, such that accessory dwelling units may be licensed as short-term rentals even if the current number of short-term rental licenses in the applicable zoning district exceeds the maximum limit. In addition, accessory dwelling units shall not be counted towards the total number of dwelling units in a district for the purposes of calculating the maximum limit of short-term rental licenses. (5) Issuing available licenses. The city shall develop a policy for providing notice of available short-term rental licenses and for receiving and approving applications for the same once the number of active short-term rental licenses in a zoning district falls below the maximum limit. When short-term rental licenses become available, submitted applications shall be selected for processing and approval through a random lottery. (Ord. 240229-B, passed 2-29-2024; Am. Ord. 240826-B, passed 8-26-2024) § 99.56 FIRE INSPECTION. (A) Required fire inspection. The short-term rental unit shall meet all applicable building, health, fire, and related safety codes at all times and shall be inspected annually by the Saugatuck Township Fire District no later than 30 days following the submittal of the application for a short-term rental license or an application to renew a short-term rental license. Violations found by the Saugatuck Township Fire District shall be corrected within 15 days of notification from the Fire Inspector. No license or renewal shall be issued until after the fire inspection has been completed and approved. The owner or rental agency shall submit a completed and approved inspection certificate from the Saugatuck Township Fire District to the city prior to the approval of any license application or license renewal. (B) Fire inspection criteria. The Saugatuck Township Fire District shall promulgate the criteria necessary to pass a shortterm rental fire inspection, including but not limited to, requirements regarding smoke alarms, emergency exits, fire hydrants, fire extinguishers, occupancy/capacity, fire exits, fire escapes, and any other criteria that the Saugatuck Township Fire District finds necessary to protect to the health, safety, and general welfare of the community. (Ord. 240229-B, passed 2-29-2024) § 99.57 SHORT-TERM RENTAL STANDARDS AND REGULATIONS. A license for a short-term rental shall be issued when an applicant demonstrates that all of the following standards and regulations are met. Continued compliance with the following standards and regulations is required to maintain a valid shortterm rental license within the city. (A) Occupancy. The maximum occupancy for short-term rentals shall be determined by the Saugatuck Township Fire District following the required fire inspection, shall be based on applicable building, health, fire, and safety codes, and shall not exceed the following: (1) The maximum number of occupants shall be two per bedroom, plus an additional two occupants per finished floor as defined herein (provided adequate sleeping space is provided for such additional occupants), not to exceed a maximum of 12 occupants. (2) The maximum number of visitors shall be equal to the maximum number of occupants as calculated above multiplied by a factor of one and one-half. Visitors are permitted only between the hours of 7:00 am and 11:00 pm. (B) Designation of a local agent. If the owner or license holder does not qualify as, or does not desire to be, a local agent, then the license holder shall designate a local agent and authorize in writing the local agent to act as the license holder's agent for any acts required of the license holder under this chapter. The local agent must reside or maintain a physical place of business within a 25mile radius of the short-term rental. The local agent shall be knowledgeable about the premises and accountable for responding to the premises 24 hours per day, seven days per week, 365 days per year. (C) Information. All notification information for the owner, license holder, and local agent shall be kept current and up to date. (D) Advertising. All advertising for the short-term rental shall display the number of the license issued pursuant to this chapter. If a short-term rental license holder within the city chooses to advertise the short-term rental online (for instance, on AirBnB, VRBO, or a similar website) the license holder shall post their short-term rental license number within the listing. (E) Water and sewer. All water and sewer connections and/or systems servicing short-term rentals shall be fully functional and shall meet the minimum applicable requirements imposed by the city, the Kalamazoo Lake Water and Sewer Authority, and/or the Allegan County Health Department.

(F) Compliance with zoning; signage. The short-term rental dwelling unit and premises shall, at all times, fully comply with all applicable requirements of the Saugatuck City Zoning Ordinance, including applicable provisions concerning signs. (G) Rules and regulations to be provided to occupants. The license holder or local agent will provide all occupants of a short-term rental with the following information prior to occupancy and will post such information in a conspicuous place within each short-term rental: (1) The name of the license holder and/or local agent responsible to perform obligations related to the short-term rental under this chapter, that individual's telephone number(s), and an email address at which that individual may be reached on a 24-hour basis. (2) Notification of the maximum number of overnight occupants permitted in the short-term rental. (3) A copy of the city's Noise Ordinance as set forth in §94.04 of this code, as may be amended from time to time. (4) A copy of this chapter, as it may be amended from time to time. (5) Notification that an occupant and/or a visitor of an occupant may be cited for a violation of this chapter, the city's Noise Ordinance as set forth in § 94.04 of this code, in addition to any other citations or remedies available to the city. (6) A copy of the city's Good Neighbor Guide, which contains considerations for noise, trash disposal, parking, and maximum occupancy. (H) Pets. The occupants and visitors of a short-term rental shall be informed prior to occupancy that all pets must be secured on the premises or on a leash at all times. (I) Taxes. The person who rents a short-term rental shall pay any applicable sales tax and/or required Michigan Use Tax for any stay of 31 nights or less. (J) Garbage and recycling. All short-term rentals must provide at least one outdoor garbage can and one recycling bin of sufficient size to service a single-family residential dwelling. If a shortterm rental has an occupancy of six or more, at least two outdoor garbage cans and at least one recycling bin shall be provided. All waste generated by a short-term rental, its occupants, and visitors must always be stored in a garbage can or similar trash receptacle, and exposed waste or garbage shall be considered a violation of this chapter. Occupants of the short-term rental shall be notified prior to occupancy that they are not allowed to leave waste outside of garbage cans or recycling bins. (K) Subletting or renting individual rooms. No owner, agent, or license holder may rent individual rooms within a dwelling unit used for a short-term rental, nor may any occupants of a shortterm rental sublease rooms within a short-term rental. All rooms within a dwelling unit that is rented as a short-term rental shall be fully rented under a single contract. However, nothing in this section shall prevent an owner or license holder from occupying a dwelling unit while it is being used as a shortterm rental. (L) Tents, campers, or similar sleeping facilities. The use of tents, campers, or similar temporary sleeping facilities at a short-term rental premises shall be prohibited. (M) Fireworks. Owners/and or license holders shall prohibit the use of fireworks by shortterm rental occupants and visitors. (N) Insurance. A dwelling unit that is licensed as a short-term rental must, at all times, maintain rental property insurance. (O) Short-term rental registry. By applying for and being issued a short-term rental license from the city, the owner and/or license holder consents to having their name, contact information, the address of the short-term rental, the maximum occupancy of the short-term rental, and contact information for their local agent included in the city's publicly available shortterm rental registry. (Ord. 240229-B, passed 2-29-2024) § 99.58 DURATION OF LICENSE; RENEWAL. (A) Except as otherwise provided herein, a license issued under this chapter shall remain in effect for a period of one year from the date it was issued unless it is suspended or revoked by the city. (B) The license holder or local agent may apply for a renewed license by submitting a renewal application to the enforcing officer no later than 30 days prior to the date that the license is set to expire, along with the license renewal fee established by the city’s fee schedule. Renewal applications may be submitted no later than five calendar days after this deadline, subject to a late fee established by resolution of the City Council. Renewal applications submitted after this five calendar day grace period by any amount of time shall be deemed untimely and shall not be processed by the city, and the short-term rental license shall be deemed expired. (C) All information submitted with the prior application(s) shall be deemed submitted with the application for renewal, except that each year a new completed and signed fire safety checklist must be submitted, a new fire inspection must be conducted, and an approved fire inspection certification must be issued before a license can be renewed. In addition, shortterm rentals owned by corporate entities or trusts must submit updated documentation each year showing that the interest, composition, membership, or ownership in said corporation or trust has not changed so as to constitute a transfer as defined in this chapter. Aside from the renewed fire safety checklist, fire inspection, and updated ownership documentation, the

license holder or local agent shall only be required to submit new information with the application for renewal when that application information has changed since the last application was filed with the city. (D) A renewed license for a short-term rental shall be issued when all of the standards and regulations of this chapter are met. (E) If the short-term rental premises does not meet all the requirements of this chapter at the time of renewal, the city shall promptly notify the license holder. The license holder shall have 30 calendar days from the date the notice of a deficiency was sent to cure any deficiencies. If the license holder cannot demonstrate full compliance with this chapter at the end of the cure period, the short-term rental license will not be renewed and will be deemed expired. (Ord. 240229-B, passed 2-29-2024; Am. Ord. 250414-A, passed 4-14-2025) § 99.59 EFFECT ON PREVIOUSLY ISSUED SHORT-TERM RENTAL CERTIFICATES. (A) It is the express intent of this chapter to “grandfather” short-term rental certificates that were issued under the city's previous regulatory scheme until those certificates expire. Therefore, short-term rentals with certificates issued pursuant to the Saugatuck City Zoning Ordinance prior to the effective date of this chapter may continue to operate until the certificate expires, subject to the requirements in effect at the time the short-term rental certificate was issued. (B) (1) Once a previously issued short-term rental certificate expires, the certificate-holder must receive a short-term rental license under this chapter to continue operating a short-term rental at the premises. Applications for a short-term rental license may be submitted no later than five calendar days after the previously issued short-term rental certificate expires, subject to a late fee established by resolution of the City Council. Applications submitted after this five day grace period by any amount of time shall be deemed untimely and shall not be processed by the city, and the short-term rental certificate shall be deemed expired. (2) Notwithstanding anything in this chapter to the contrary, an application for a short-term rental license may be submitted by an owner who previously held a short-term rental certificate if the following applies: 1) the short-term rental certificate expired between August 26, 2024 and the effective date of this chapter; and 2) the certificate holder did not timely apply for a short-term rental license but otherwise satisfied all applicable requirements of the City Code. In such circumstances, the certificate holder may apply for a short-term license no later than five calendar days after the effective date of this chapter. Such applications may be processed and a short-term rental license issued, subject to the payment of the late fee set forth herein and satisfaction of all other requirements of the City Code. (C) No short-term rental certificates issued pursuant to the Saugatuck City Zoning Ordinance may be renewed after the effective date of this chapter. (Ord. 240229-B, passed 2-29-2024; Am. Ord. 250414-A, passed 4-14-2025) § 99.60 DUTY TO REMEDY VIOLATIONS. (A) Duty to remedy. The license holder and/or local agent shall have the duty to remedy any violation of this chapter and the city's Noise Ordinance, as set forth in § 94.04 of this code, by the occupants and visitors of a short-term rental. (B) Notification from city. For any violation of division (A), the city may (in addition to other remedies) notify the license holder and/or local agent for the short-term rental of such violation by telephone or return receipt email. The license holder and/or local agent shall be deemed to have received notice of the violation upon being contacted by telephone (including a call or text message, if applicable) or when a return receipt email message is received by the city, whichever is sooner. (C) Corrective action. Upon receiving notice of the violation, the license holder and/or local agent shall ensure that the violation is remedied within two hours of receipt of such notice. (D) Failure to remedy. Failure to remedy the violation within two hours after receiving notice of the violation, without good cause, shall constitute a violation of this chapter and may subject the license issued under this chapter to suspension or revocation pursuant to § 99.61 and may subject the license holder and/or local agent to court enforcement proceedings and the penalties under § 99.62. (Ord. 240229-B, passed 2-29-2024) § 99.61 SUSPENSION AND REVOCATION OF LICENSE. (A) Suspension or revocation of license. The following shall constitute grounds for suspending or revoking a short-term rental license: (1) A license holder, owner, and/or authorized agent’s inclusion of false, incorrect, or misleading information and/ or statements on an application for a short-term rental license. (2) A license holder, owner and/or local agent’s failure to comply with the standards and regulations set forth in §99.57. (3) A license holder, owner, and/or local agent’s failure to timely remedy a violation of this chapter or the city's Noise Ordinance, as set forth in § 99.60.

(4) A license holder and/or owner’s transfer of any interest in a short-term rental license or premises to a person or entity that does not have an existing interest in said license or premises. (B) Violation notice. If the enforcing officer has reason to believe that there are grounds to suspend or revoke a shortterm rental license, the enforcing officer may, but is not required to, prepare a written notice specifying the alleged grounds for suspension or revocation and the factual basis for this belief. The written notice shall inform the alleged violator of the time, date, and place of the hearing before the City Council, shall be served on the license holder either personally or by certified mail no less than 21 days before the hearing. (C) Violation hearing. If such a violation notice is prepared and served, the City Council shall hold a hearing at which time the license holder shall be given an opportunity to show cause why the short-term rental license issued under this chapter should not be suspended or revoked. The City Council's decision shall be in writing and shall specify the factual evidence upon which it is based and shall be final and binding upon the license holder. A copy of the City Council's written decision shall then be provided to the license holder. The City Council's determination that an unauthorized transfer of interest in a short-term rental license or premises took place or that an applicant included false, incorrect, or misleading information and/or statements on an application for a short-term rental license and that the inclusion of the correct information would have rendered the applicant ineligible for a short-term rental license, shall result in the immediate revocation of the shortterm rental license. For all other types of violations found by the City Council, a short-term rental license shall first be suspended before being revoked, as set forth below. (D) Subsequent violations. After a short-term rental license has been suspended, any additional violation(s) committed by the license holder and/or local agent within one year of the expiration of the last suspension shall be grounds for a second suspension. If it has been more than two years since the expiration of an initial suspension of a short-term rental license, a subsequent violation shall be deemed to be a first suspension. Upon the City Council's determination that a short-term rental license holder has committed an additional violation within two years of the expiration of a second suspension, the City Council may permanently revoke the short-term rental license, at which point that license holder will be permanently ineligible to apply for a short-term rental license for the premises in question. (E) Length and timing of suspensions and/or revocations. Subject to division (F) below, suspensions and revocations shall generally be effective immediately. Provided, however, if any portion of the suspension time falls outside the primary tourist season of May through September, then the balance of the suspension time shall carry over to the next primary tourist season, with rental activity outside of the primary tourist season remaining prohibited until the suspension expires. Suspensions/revocations shall be for the following periods: (1) First suspension: Three months. (2) Second suspension: Six months. (3) Revocation: Permanent. (F) Existing contracts. Existing short-term rental contracts up to 60 nights beyond the beginning date of any suspension/revocation may be honored by the license holder with approval by the City Council. Those existing contracts beyond 60 nights shall be canceled. The time period approved to honor existing contracts shall be added to the end of any suspension period. (G) Fraudulent complaints. Any person who knowingly files a fraudulent, false, or fictitious complaint about a short-term rental shall be deemed to be in violation of this chapter and may be subject to court enforcement proceedings and the penalties under § 99.62 of this chapter. (Ord. 240229-B, passed 2-29-2024; Am. Ord. 250414-A, passed 4-14-2025) § 99.62 VIOLATIONS AND PENALTIES. (A) Any person who violates any provision of this chapter, including the continued operation of a short-term rental after the license for that short-term rental has been suspended or revoked as provided in this chapter, shall be responsible for a municipal civil infraction as defined in Public Act 12 of 1994, amending Public Act 236 of 1961, being M.C.L.A. §§ 600.101 through 600.9939, and shall be required to pay a civil fine established by resolution of the City Council along with statutory costs. Each day this chapter is violated shall be considered as a separate violation. (B) The enforcing officer, deputies of the Allegan County Sheriff’s Department, and other persons appointed by the City Council are hereby designated as the authorized city officials to issue municipal civil infraction citations directing alleged violators of this chapter to appear in court. (C) A violation of this chapter is hereby declared to be a public nuisance or a nuisance per se and is declared to be offensive to the public health, safety, and welfare. (D) In addition to any other remedies available to it, the city may initiate proceedings in the circuit court abate or eliminate the nuisance per se or any other violation of this chapter. (Ord. 240229-B, passed 2-29-2024) § 99.63 TRANSFER OF OWNERSHIP.

(A) Transfers prohibited. Except as expressly provided herein, short-term rental licenses are non-transferable, and a short-term rental license issued under this chapter shall become void upon the attempted transfer of a license to a new owner or owners or the transfer of the short-term rental premises to a new owner or owners. Any attempt by an existing owner of a short-term rental to convey partial interest in a short-term rental licenses or premises to a third party while retaining some interest in the short-term rental licenses or premises shall render the license revocable. In the event of an unauthorized transfer, a new short-term rental license must be obtained by the new owner of the short-term rental premises from the city before short-term rentals may be resumed. (B) Transfer defined. As used in this chapter, a TRANSFER of a short-term rental license shall include the following: (1) Any transfer, sale, change in ownership, or other conveyance of a short-term rental license to a person or entity other than the owner or license holder; (2) Any transfer, sale, change in ownership, or other conveyance of the premises; (3) Any transfer, sale, change in ownership, or other conveyance of an interest or membership in the corporate entity which is the owner of the premises or the short-term rental license; or (4) Any change in the trustee(s), beneficiary, or beneficiaries of the trust which is the owner of the premises or the short-term rental license. (C) Permitted transfers. Notwithstanding the above, the city recognizes that as a matter of public policy it is equitable and consistent with the intent of this section to enable transfers of short-term rental licenses in certain limited circumstances, which include transfers that change the form of ownership but not the identity of the persons having an ownership in a shortterm rental, and transfers that reallocate or remove current ownership interests but do not add any new ownership interests. Consistent with these policy goals, short-term rental licenses may be transferred under the following circumstances, provided that a transfer application conforming to the requirements and regulations set forth in this ordinance and indicating the relationship of the transferor to the transferee is first submitted to and approved by the enforcing officer: (1) Change to the form of ownership. The following transfers that change the form of ownership, but not the identity of the owners, shall be permitted: (a) Short-term rental licenses or premises may be transferred to a corporate entity from individuals, trusts, or other corporate entities, provided that the transferee corporate entity is solely owned and controlled by all of the current owners of the short-term rental license or premises, and that no third parties (meaning individuals or entities who do not currently have an interest in the short-term rental licenses or premises) will hold any interest or membership in said corporate entity. (b) Short-term rental licenses or premises may be transferred to a trust from individuals, corporate entities, or other trusts, provided that the transferee trust is solely owned, controlled by, and benefits all of the current owners of the shortterm rental license or premises, and that no third parties will be designated as settlors, trustees, or beneficiaries of said trust. (c) Short-term rental licenses or premises may be transferred to an individual or individuals from a corporate entity or trust, provided that the individual or individuals are the current owners, members, settlors, trustees, or beneficiaries of the corporate entity or trust that currently owns the short-term rental license or premises. (2) Removal or reallocation of ownership interests. Where more than one individual or entity has an interest in a shortterm rental license or premises, the composition of ownership may be altered so as to remove an existing ownership interest or to reallocate ownership interests among existing owners. By way of example but not limitation, this could include the following scenarios: (a) A short-term rental premises owned by a married couple can be transferred to the surviving spouse upon the death of a spouse. (b) A trust owning a short-term rental license can be revised to remove a beneficiary. (c) A corporation owning a short-term rental premises can reallocate ownership interests among its members or remove members. (3) General prohibition. Notwithstanding anything in this chapter to the contrary, no transfer will be permitted that has the effect of conveying any sort of interest in a short-term rental license or premises to a third party who does not have an existing interest in said license or premises, including any transfer that attempts to add new individuals or entities owning, controlling, or having any interest in a short-term rental license or premises. (D) Waiver. For transfers not expressly authorized herein, a license holder may make a written application to the enforcing officer for a waiver from this section’s prohibition on transfers. Such application must demonstrate that the proposed transfer only changes the form of ownership or removes or reallocates existing ownership interests without adding any new ownership interests and is otherwise consistent with the purpose and objectives of this ordinance on good cause shown to the enforcing officer. The enforcing officer shall approve or deny such applications, and his or her decision shall be final. (E) Prior transfers. (1) The City Council recognizes that the imposition of maximum limits on short-term rental licenses in certain districts has markedly increased the consequences of unauthorized transfers within those districts. The City Council further recognizes that some short-term rental owners may have transferred interest in a short-term rental without understanding

that this would render the premises ineligible for a short-term rental license so long as maximum limits are in effect. Therefore, notwithstanding any maximum license limits in effect, an owner may apply for a short-term rental license if, at the time of application, all of the following apply: (a) The short-term rental premises is located within a zoning district subject to maximum limits on the total number of short-term rental licenses and the number of active licenses within that district exceeds the maximum limit; (b) A short-term rental license or certificate was previously issued for the premises; (c) The short-term rental license, certificate, or premises was subject to an unauthorized transfer that occurred between August 26, 2021, and March 5, 2025; (d) The short-term rental license or certificate had not expired or lapsed by reason of nonrenewal and had not been revoked or voided for reasons other than the unauthorized transfer identified above; and (e) An application describing the nature and date of the unauthorized transfer and containing all other information required by the City Code, along with the accompanying application fee, are submitted to the city no later than five days of the effective date of this chapter. (2) The city may process applications for short-term rental licenses from applicants who satisfy the above criteria and may approve short-term rental licenses for the same if all other applicable requirements of the City Code are satisfied. (Ord. 240229-B, passed 2-29-2024; Am. Ord. 250414-A, passed 4-14-2025) § 99.64 ADMINISTRATION AND INTERPRETATION. The enforcing officer shall have the authority to administer and interpret this chapter. This shall include, but shall not be limited to, developing and enacting administrative policies and procedures pertaining to short-term rental licenses and interpreting or construing provisions of this chapter so as to give effect to the City Council's intent underlying the enactment of this chapter. (Ord. 240229-B, passed 2-29-2024)

a short-term rental license if the following applies: 1) the short-term rental license at issue expired between April 24, 2025, and the effective date of this Ordinance; and 2) the license holder submitted a renewal application to the City after the renewal deadline but before the license expired; and 3) the untimely renewal application otherwise satisfied all applicable requirements of the City Code. In such circumstances, the license holder may apply for a short-term license no later than five (5) calendar days after the effective date of this Ordinance. Such applications may be processed and a short-te1m rental license issued (effective on the date of issuance), subject to the payment of the late fee set forth herein and satisfaction of all other requirements of the City Code. (C)

All information submitted with the prior application(s) shall be deemed submitted with the application for renewal, except that each year a new completed and signed fire safety checklist must be submitted, a new fire inspection must be conducted, and an approved fire inspection certification must be issued before a license can be renewed. In addition, short-term rentals owned by corporate entities or trusts must submit updated documentation each year showing that the interest, composition, membership, or ownership in said corporation or trust has not changed so as to constitute a transfer as defined in this chapter. Aside from the renewed fire safety checklist, fire inspection, and updated ownership documentation, the license holder or local agent shall only be required to submit new information with the application for renewal when that application information has changed since the last application was filed with the City.

A renewed license for a short-term rental shall be issued when all of the standards and regulations of this chapter are met. Once issued, a renewed license for a shortte1m rental shall take effect on the same day as the expiration of the prior license, such that a short-term rental license will retain the same expiration date from yearto-year.

If the short-term rental premises does not meet all the requirements of this chapter at the time of renewal, the City shall promptly notify the license holder. The license holder shall have thirty (30) calendar days from the date the notice of a deficiency was sent to cure any deficiencies. If the license holder cannot demonstrate full compliance with this chapter at the end of the cure period, the short-term rental license will not be renewed and will be deemed expired.

SECTION 2. AMENDMENT TO ORDINANCE NO. 240299-B, Section 99.64: City of Saugatuck Ordinance No. 240229-B, Section 99.64, shall be amended to read as follows: §99.64 ADMINISTRATION AND INTERPRETATION. (A) The enforcing officer shall have the authority to administer and interpret this chapter.

This shall include, but shall not be limited to, developing, and enacting administrative policies and procedures pertaining to short-term rental licenses and interpreting or construing provisions of this chapter so as to give effect to the City Council's intent underlying the enactment of this chapter. (B) The enforcing officer shall also have the authority to excuse compliance with the deadlines set forth in this chapter (but no other requirements of this chapter) if a license holder provides the enforcing officer with satisfactmy proof that an untimely submission was caused by extraordinaiy circumstances beyond the license holder's control. For the purposes of this subsection, "extraordinaiy circumstances" may include such circumstances as acts of God including flood, fire, endemic, pandemic, war, or civil umest; a documented medical condition that renders the license holder unable to submit a timely application; or militaiy service or deployment. "Extraordinaiy circumstances" shall not include any circumstances attributable to the license holder or local agent's own actions, inaction, negligence, or neglect; any alleged failure of the City to provide notice; or any other reasonably foreseeable circumstances. The enforcing officer's determination of whether extraordinaiy circumstances exist shall be final. SECTION 3. SEVERABILITY: Should a court of competent jurisdiction find any provision, clause, or portion of this ordinance amendment to be invalid or unconstitutional, the balance or remainder of this ordinance amendment shall remain valid and in full force and effect and shall be deemed "severable" from the portion, clause, or provision deemed to be invalid or unconstitutional by the court. SECTION 4. REPEAL: All Ordinances or parts of Ordinances in conflict herewith are hereby repealed. SECTION 5. EFFECTIVE DATE: This Ordinance shall become effective immediately upon the date of this Ordinance's publication as required by law. YEAS: Anderson, Clark, Dean, Gardner, Muncey and Peterson. NAYS:None. ABSENT/ABSTAIN: Stanton. ORDINANCE DECLARED ADOPTED.

�u-I-folAnderson City of Saugatuck, Mayor

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�==---------------City of Saugatuck, City Clerk

CITY OF SAUGATUCK ALLEGAN COUNTY, MICHIGAN NOTICE OF ADOPTION SHORT-TERM RENTAL LICENSING ORDINANCE AMENDMENT ORDINANCE NO. 260209-A Please take notice that on February 9, 2026, the City Council of City of Saugatuck adopted Ordinance No. 2 6 0 2 0 9 - A , which, among other things, amends the City of Saugatuck's Short-Term Rental Licensing Ordinance, Ordinance No. 240229-B, to update provisions regarding the renewal of STR Licenses to provide a fixed renewal date for issued licenses, to establish an application window in which renewal applications can be submitted, to provide an exception for waivers based on extraordinaiy circumstances, and, in recognition of some apparent confusion surrounding annual renewal deadlines under previous Ordinance language, to provide a narrow exception for licenses that lapsed due to a failure to timely submit a renewal application to reapply for a license if certain criteria are met. Copies of the ordinance may be obtained from Jamie Wolters, City of Saugatuck Clerk, at 102 Butler Street, P.O. Box 86, Saugatuck, Michigan 49453, during regular business hours. The Amendmen,t to Ordinance No. 240299-B has the following sections, which are summarized below: Section 1: Amendment Section 99.58; Section 2: Amendment to Section 99.64; Section 3: Severability; Section 4: Repeal; and Section 5: Effective Date. Jamie Wolters City of Saugatuck, Clerk (269) 857-2603 JWolters@saugatuckcity.com Publication Date: Februaiy 19, 2026

To answer Mr. Madhava’s question from the February 26, 2026 email, the City Code does not specifically require an STR license to be delivered to the owner. It simply states: “Once deemed to be complete, if an application complies with all the standards and regulations of this chapter and the required fire inspection certificate has been submitted pursuant to § 99.56, the enforcing officer shall approve the short-term rental license.” Section 99.55(E). The City’s STR application form similarly states: “Upon approval, the City will issue a Short-Term Rental License which will be valid for 1 year.” Therefore, City staff are not required under the City Code to deliver an issued license to an owner. More to the point, the City did properly provide a copy of the STR license for 534 St. Joseph St. immediately upon issuance, and again upon request of its local agent. The application for an STR license for 534 St. Joseph St. was submitted by Mr. Madhava on April 23, 2024. (Exhibit 1, 2024 STR Application). The 2024 STR Application listed Bella Vita Vacation Rentals as the Local Agent, along with the following email address: info@bellavitavacationrentals.com. Further, Mr. Madhava signed and dated the following statement in the “Local Agent” portion of the 2024 STR application: “I designate the local agent above and authorize the local agent to act as my agent for any acts required of the license under Chapter 99.5” (emphasis added). The application was approved on July 5, 2024, with the approved STR license being sent by the City via email to info@bellavitavacationrentals.com, which is the same local agent email address that was identified in the 2024 STR Application. (Exhibit 2, 7/5/24 Email to Bella Vita). Indeed, according to the City’s records, even after July 2024, Bella Vita Vacation Rentals submitted numerous STR license applications for other properties that were signed by Mr. Tringali that similarly listed info@bellavitavacationrentals.com as the email address for the local agent. The email from the City stated: “Please note the maximum occupants and expiration date.” On January 7, 2025, Mr. Tringali emailed the City Manager (using the email address kevin@bellavitavacationrentals.com, rather than the address listed in the 2024 STR Application), stating: “We know 534 St. Joseph was recertified back in July of 2024 however I don’t recall seeing an actual certification document.” (Exhibit 3, 1/7/25 Email). The City Manager sent a copy of the license to Mr. Tringali. It was not until August 29, 2025, that Mr. Tringali informed the City Manager that the email address for Bella Vita had changed from info@bellavitavacationrentals.com to kevin@bellavitavacationrentals.com, after which the City Manager responded that he would update the City’s system to change that contact information for Bella Vita. (Exhibit 4, 8/29/25 Email). By this point, the STR license has already expired.

The City appropriately sent the STR license to the email address provided for the local agent in the 2024 STR Application. To the extent that email address was incorrect, it was incumbent on Mr. Madhava—not the City—to keep contact information for the local agent current, pursuant to Section 99.55(B)(13) of the City Code, which provides: “The owner shall notify the city of any changes to the approved application within no later than 30 days of the date of the change, including change of mailing address, contact information, or local agent/rental agency.” Mr. Madhava’s February 26 email continues: “Either staff failed to administer the ordinance properly and as a result it is now trying to ignore it's own clerical error, inflicting a significant financial loss to me. Or it has no responsibility under the ordinance to actually issue the license with the expiration date to the legal STR license holder.” For the reasons explained above, City Staff does not have an affirmative obligation to provide a copy of an STR license to the license holder. Further, to the extent any clerical errors contributed to the nonrenewal of that license, those errors are attributable to Mr. Tringali, who was authorized by Mr. Madhava to act as his agent for “any acts required of the license” and had actual knowledge of the STR license’s expiration date. Mr. Tringali has acknowledged this fact in an email dated August 4, 2025, to the City, in which he stated: “I believe this oversight from our office stems from actually receiving our certification back on January 7th 2025. Our office mistakenly took that as the January 7th date as our annual expiration date and therefore was not prepared to have this ready by June 5th, 2025 for the July 5th expiration date.” (Exhibit 5, 8/4/25 Email Chain). Notably, the STR license clearly stated that it was “valid through 07/05/2025.” (Exhibit 6, 2024 STR License). Even if Mr. Tringali did not open the attachment the to view the STR license, the filename itself noted the issuance date, as it was titled: “STR License – 534 St. Joseph – 7-5-24.” (Exhibit 2, 7/5/24 Email to Bella Vita). That same August 4, 2025, email chain contains a similar admission from Mr. Madhava acknowledging this error: “As the result of a clerical error, we believed the license was issued on a January to January basis and not on a July to July basis.” (Exhibit 5, 8/4/2025 Email Chain). NOTICE OF EXPIRATION DATE Mr. Madhava’s February 26, 2026 email additionally states: “If delivering the license is NOT required, please identify precisely how an STR holder would be expected to find the expiration date. Please also include reference to the ordinance that identifies this as a responsibility of the STR holder.” The City Code provides that the license holder and local agent are responsible for applying for a renewed license no later than 30 days prior to the date that the license is set to expire. See City Code, Section 99.58. The City Code does not contain any requirements for the City to affirmatively notify license holders or local agents of license expiration dates. Thus, it is the license holder and local agent’s responsibility to know the expiration date of an STR license and to timely submit a renewal application prior to expiration.

The “Steps to Check Expiration Date” tab on the City’s STR landing page also contains the following relevant statement: “It is each owner’s responsibility to know and keep track of their expiration date—the City will not provide you with any advance notice prior to your expiration date.” Thus, it was the responsibility of Mr. Madhava and Mr. Tringali—not the City—to know and keep track of the expiration date of the STR license for 534 St. Joseph St. RECENT AMENDMENT TO STR REGU LATIONS Both Mr. Madhava and Mr. Tringali have raised issues relating to their expectations of what would be included in the recent amendment to the City’s STR regulations. Unfortunately, these unilateral expectations of what the Council could have done are not grounds for reinstating an expired license or excusing compliance with the City Code. At a Council workshop on January 7, 2026, the Council directed my office to prepare an amendment to the City Code that would effectuate: “a one-time license reinstatement/amnesty for those affected by recent administrative lapses, to address the possible inclusion of an ‘act of God’ hardship exemption and to clarify and codify the renewal process and notification standards.” 1 This direction was not an amendment to the City Code, nor was it a final and definitive statement of the final terms of the amendment. Rather, it was a general framework within which City Staff would prepare a proposed amendment for adoption at a later date. The draft amendment to the City Code was presented to the Council at its February 4, 2026 workshop, and a copy of the amendment was included in the meeting packet for that workshop, which was available to the public in advance of the meeting. The meeting minutes contain the following summary of the Council’s discussion of the amendment: Ordinance No. 260204-A - Short Term Rental Licensing Ordinance Amendment: The ordinance discussion was about addressing how short-term rental renewals are handled and creating a one-time amnesty for a small group of owners. Going forward, there will be a single, clear renewal date and a defined application window, so people know exactly when they must apply. Staff and the attorney also added a very narrow “extraordinary circumstances” exception—for things truly beyond an owner’s control, not simple forgetfulness—that can be used for late items (like renewals or inspection follow-ups). The one-time amnesty is limited to specific properties recognizing they made a good-faith effort while still keeping the ordinance firm for others. Council was generally supportive, and the redlined ordinance with these changes is going to the next meeting for formal adoption.

Meeting minutes from City Council meetings, as well as the meeting packets and agendas, are available on the City’s website: https://www.saugatuckcity.com/city-council.html

The amendment was unanimously approved by the Council at its February 9, 2026, regular meeting. At the February 9, 2026, regular meeting, the City Council even asked City staff, prior to voting on the relevant ordinance amendment, “Do we have a list of the properties impacted by this[.]” (See Recording of City Council Meeting, February 9, 2026 YouTube, https://www.youtube.com/watch?v=EUwVYrZlOh4, timestamp 1:50:00). In response to that question, City staff expressly explained that there is a list of 8 properties, but “two of those are unable to renewed under this ordinance due to applying after the application period.” See id. Therefore, it was clear on the record that the ordinance amendment that was being considered by City Council and that was ultimately adopted did not provide amnesty for all affected properties. Mr. Madhava’s February 26, 2026 email states: “I'm confused, there was a unanimous vote to reinstate my license along with the 8 others. I was there. How does this amendment get written and passed if it doesn't reflect the intent of the city council. The question was brought to order, seconded and voted on individually.” Mr. Tringali’s February 25, 2026 letter similarly states: “it was clearly conveyed that all nine properties impacted during the transition period would be afforded amnesty consideration. Based on that understanding, we were surprised and disappointed to learn that amnesty was ultimately granted to only five properties, with ours among those excluded.” These statements may be reflective of a misunderstanding of the Council’s actions. As explained above, the Council never voted to provide amnesty to every license or to any specific license holder. As indicated above, there was consensus by the Council at a workshop for an amendment to be prepared that afforded some amnesty for “administrative lapses,” which was later clarified to include various criteria for eligibility, including the requirement to have submitted a renewal application prior to license expiration. While the Council may have considered, and some may have hoped for, a broader amnesty while the amendment was initially discussed, that was not incorporated into the final amendment. Mr. Tringali’s February 25, 2026 letter states: “Public statements indicated broader relief than what was ultimately applied, and we relied on those representations in good faith.” Reliance requires an affirmative act or omission, or some other kind of change in position. By the time the Council was discussing the latest amendment to the City’s STR regulations, the license for 534 St. Joseph St. had already expired, and there was nothing that Mr. Tringali nor Mr. Madhava did or could have done to change their positions in reliance on this discussion. Thus, the suggestion that there was good faith reliance on these discussions is unavailing. Finally, Mr. Madhava’s February 26, 2026 email asserts that he had “no notice to be able to address this prior to passing of the new ordinance, nor given an opportunity to comment on the language of the ordinance.” This is simply untrue. The City provided notice of all meetings and workshops where changes to its STR regulations were to be discussed as required by law. The agenda and

packets for these meetings were available in advance on the City’s website, and citizens are able to attend and participate in-person or virtually. The City is under no legal obligation to provide affirmative, individualized notice of agenda items to persons who may have an interest in the Council’s final decision on that agenda item, nor would it be remotely feasible for the City to do so. According to the City’s records, Mr. Madhava subscribes to the City’s email list and was sent specific emails as to both the February 4, 2026 City Council workshop and the February 9, 2026 City Council regular meeting. These emails included links to the relevant meeting packets, which contain the agenda for the meeting and would have clearly indicated that the STR amendment was being discussed and acted upon. Accordingly, the City provided ample notice to Mr. Madhava. Mr. Madhava could have easily learned when the STR amendment was going to be discussed and acted upon via the City’s website or the subscription emails and participated in the discussion via Zoom or in person. Mr. Madhava was entitled to no more notice or opportunity for comment than what was afforded to him. EXTRAORDINARY CIRCUMSTANCES Mr. Madhava’s February 26, 2026 email finally requests a renewed license due to claimed extraordinary circumstances, claiming that “the ordinance clearly enables staff to exercise it's judgment in renewing licenses,” and that “[t]he circumstances around the failure to deliver the STR license is documented, is extraordinary, and was beyond my control.” Section 99.64(B) of the City Code, as amended by the Council on February 9, 2026, does provide the City’s enforcing officer with the ability to excuse compliance with deadlines in extraordinary circumstances. Therefore, Mr. Madhava’s February 26 email will be treated as a request to excuse compliance with the June 5, 2025, renewal deadline for the STR license issued for 534 St. Joseph St. due to extraordinary circumstances pursuant to Section 99.64(B) of the City Code, and this letter from my office serves as the official determination of the City enforcing officer 2 as to whether such extraordinary circumstances exist. The newly amended Section 99.64(B) provides: The enforcing officer shall also have the authority to excuse compliance with the deadlines set forth in this chapter (but no other requirements of this chapter) if a license holder provides the enforcing officer with satisfactory proof that an untimely submission was caused by extraordinary circumstances beyond the license

The City’s enforcing officer is the Director of Planning & Zoning, Grayson Moore. He has reviewed and adopted the determination set forth in this letter.

holder’s control. For the purposes of this subsection, “extraordinary circumstances” may include such circumstances as acts of God including flood, fire, endemic, pandemic, war, or civil unrest; a documented medical condition that renders the license holder unable to submit a timely application; or military service or deployment. “Extraordinary circumstances” shall not include any circumstances attributable to the license holder or local agent’s own actions, inaction, negligence, or neglect; any alleged failure of the City to provide notice; or any other reasonably foreseeable circumstances. The enforcing officer’s determination of whether extraordinary circumstances exist shall be final. Mr. Madhava identifies the City’s “failure to deliver the STR license” as extraordinary circumstances warranting renewal of the STR license for 534 St. Joseph St. On behalf of the City enforcing officer, this request is rejected on the basis the City’s failure to deliver an STR license to an owner does not constitute “extraordinary circumstances” as defined by Section 99.64(B) of the City Code, for the following reasons: Section 99.64(B) requires “proof that an untimely submission was caused by extraordinary circumstances beyond the license holder’s control.” Notwithstanding that a copy of the STR license was not emailed to Mr. Madhava, a copy was sent to his local agent on two occasions before it expired. It was not beyond Mr. Madhava’s control to ask his local agent for a copy, nor was it beyond Mr. Tringali’s control to forward the license to Mr. Madhava or otherwise appraise him of the renewal deadline. Further, Mr. Madhava could have ascertained the renewal deadline even without a copy of the STR license using the easily accessible tools on the City’s website or by asking City staff for a copy. Section 99.64(B) further provides that “‘extraordinary circumstances’ shall not include any circumstances attributable to the license holder or local agent’s own actions, inaction, negligence, or neglect.” The circumstances surrounding the failure to submit a timely renewal application were primarily attributable to the inaction, negligence, or neglect of the local agent in mistakenly believing that the STR license for 534 St. Joseph St. expired in January of 2026, rather than July of 2025, despite the expiration date of July 5, 2025, being very clearly indicated on the license. Section 99.64(B) finally provides that “‘extraordinary circumstances’ […] shall not include any alleged failure of the City to provide notice.” The circumstances cited by Mr. Madhava—that the City did not send him a copy of the license for 534 St. Joseph St.—are essentially an allegation of the City failing to provide notice of his expiration date, which does not constitute extraordinary circumstances under Section 99.64(B). As indicated on the City’s website and as explained in this letter, it is the responsibility of the license holder and the local agent to know the expiration date.

CONCLUSION The City recognizes that the loss of the STR license for 534 St. Joseph St. is an unwelcome development, and that Mr. Madhava and Mr. Tringali may have had different expectations for how the City Code would be amended. However, the fact that a copy of the license was only sent to the local agent for 534 St. Joseph St. and not the license holder does not warrant reinstatement of a now-expired license under the City Code. The City considers this matter resolved at this time. If Mr. Madhava still desires to use the property for short-term rental purposes, he can submit an application for an STR license for the accessory dwelling unit (“ADU”) on the property, as ADUs are exempt from the maximum limits on STR licenses. However, it should be noted that all requirements for an ADU must be met in order to be considered. Sincerely,

JACOB N. WITTE SENIOR ASSOCIATE

Direct: 517.381.3201

jwitte@fsbrlaw.com

From: Sent: To: Subject: Attachments:

Ryan Cummins <rcummins@saugatuckcity.com> Friday, July 5, 2024 6:46 PM jennifer@theballroom.com; Bella Vita Vacation Rentals 534 St. Joseph STR License - 534 St. Joseph - 7-5-24.pdf; STR License - 534 St. Joseph ADU - 7-5-24.pdf

Hello, I was notified 534 St. Joseph main home and ADU passed inspection. Attached is the STR license. Please note the maximum occupants and expiration date. Here is a link to the Good Neighbor Guide to share with your visitors: https://www.saugatuckcity.com/uploads/1/3/3/9/133977444/copy_of_good_neighbor_guide__2_.pdf Thank you,

Ryan Cummins City Manager

City of Saugatuck 102 Butler St PO Box 86 Saugatuck, MI 49453 Ph: (269) 857-2603

We are updating all our files as we head into 2025. We know 534 St. Joseph was recertified back in July of 2024 however I don’t recall seeing an actuall certification document? Can we get one sent to us for our records?

Thank you Kevin Tringali Bella Vita Real Estate / Vacation Rentals A proud partner of Coldwell Banker Woodland Schmidt Realty 616-635-1717 www.bellavitavacationrentals.com

From: David Jirousek [mailto:david@horizon-planning.com] Sent: Friday, July 12, 2024 2:12 PM To: kevin@bellavitavacationrentals.com Cc: Ryan Cummins; Kyle Salay Subject: Re: 534 St. Joseph-recertification

KevinPlease disregard the notice. The subject property has a final permit, and there are no current violations.

David M. Jirousek, MCP, AICP Principal – Community Planner 616-540-1794

From: Kyle Salay <kyle@horizon-planning.com> Date: Wednesday, July 10, 2024 at 12:23 PM To: David Jirousek <david@horizon-planning.com> Subject: Fwd: 534 St. Joseph-recertification

Begin forwarded message: From: Kevin Tringali <kevin@bellavitavacationrentals.com> Date: July 10, 2024 at 11:44:05 AM EDT To: Kyle Salay <kyle@horizon-planning.com> Cc: Rakesh Madhava <rmadhava@nextpoint.com> Subject: 534 St. Joseph-recertification Hi Kyle, 2

My name is Kevin Tringali, property manager for 534 St. Joseph in Saugatuck. My homeowner received a violation notice regarding our recertification? This new application was originally submitted back in April 2024 and again in May for the 2 nd dwelling which I believe has not been used as of yet. The actual inspection date was mid June and as it always has passed with no issues and we did receive our certification from the city saying so. The month of June was primarily blocked off and occupied by the owner who was in the process of making sever improvements (painting, staining and replacing items in the home. According to Ryan Cummings (City manager) this is just a notice. We are asking to confirm this for our records as there was no violation. Thank you

Kevin Tringali Bella Vita Real Estate / Vacation Rentals A proud partner of Coldwell Banker Woodland Schmidt Realty 616-635-1717 www.bellavitavacationrentals.com

Hi Kevin, I want to make sure one thing is clarified as you mentioned your office actually received a copy of the license in January. The City sent Bella Vita a copy of the license via e-mail in July 2024. Attached is another copy of that e-mail. The license was attached to that e-mail and states the expiration date. The e-mail also noted you should keep track of it. You acknowledged back in January that it was recertified in July 2024 but wanted another copy of the license. On the January response, I attached a copy of the July 2024 e-mail that was previously sent. Last year, the City also sent owners and agents an e-mail and letter with instructions on how to check expiration dates online. How to check expiration dates is on our website as well. As we discussed on the phone, you believe under Section 99.58(E) that you have 30 days to correct this. As I explained, that provision relates to deficiencies in a renewal application that is submitted timely. Section 99.58(B) identifies when renewal applications are due: 99.58(B) The license holder or local agent may apply for a renewed license by submitting a renewal application to the enforcing officer no later than thirty (30) days prior to the date that the license is set to expire, along with the license renewal fee established by the City’s fee schedule. Renewal applications may be submitted no later than five (5) calendar days after this deadline, subject to a late fee established by resolution of the City Council. Renewal applications submitted after this five (5) calendar day grace period by any amount of time shall be deemed untimely and shall not be processed by the City, and the short-term rental license shall be deemed expired. As you can see, an untimely renewal application shall not be processed by the City, which is the case here. As we discussed, only the City Council can change the ordinance and staff has to carry out what is currently in place. Please let me know if you have any questions. Thank you,

Ryan Cummins City Manager

City of Saugatuck 102 Butler St PO Box 86 Saugatuck, MI 49453 Ph: (269) 857-2603

www.bellavitavacationrentals.com <image001.png> <image002.jpg>

From: Ryan Cummins [mailto:rcummins@saugatuckcity.com] Sent: Friday, August 01, 2025 5:01 PM To: Kevin Tringali; Kevin Tringali; rakesh.madhava@gmail.com Subject: 534 St. Joseph

Hello, Our system shows that your short-term rental license expired on 7/5/25. The unit cannot be rented without a STR license. Further information about short-term rentals can be found here: https://www.saugatuckcity.com/short-term-rentals.html Please let me know if you have any questions. Thank you,

Ryan Cummins City Manager

City of Saugatuck 102 Butler St PO Box 86 Saugatuck, MI 49453 Ph: (269) 857-2603

<Letter to STR Owners and Agents 12-23-24.pdf> <mime-attachment> <mime-attachment> <mime-attachment> <mime-attachment>

changes in paperwork going on at the time regarding the change of ownership in the house, which I was happy to undertake frankly because I wanted to keep the house. Additionally, the license went to Bella Vita's general email box and not directly to Mr. Tringali. In January, Bella Vita and Mr. Tringali began the process of ensuring all licenses were in place and requested a copy of the license which they received. However, they believed the license was issued on an annual basis from January to January. I apologize for the oversight, it was not intentional -- again we believed the license was issued on a January to January calendar basis and I didn't get a copy of the original license in either July or January. Mr. Tringali and I are in regular communication and neither he nor I were aware that the license application was required to be submitted 30 days before the July expiration date, were not aware the license has expired, and were not aware we had a 5 day grace period to submit the renewal. That said, given that this is the first year of the new ordinance, we are formally asking for the license for 534 to be reissued, per the regular application process with necessary inspections included. We have submitted the application with all necessary documentation. As to whether this requires a formal change to the ordinance or can be done by the Council on a one-off basis is clearly at your discretion. And I would formally request that the license be renewed by whatever mechanism necessary. Please let me know if you would like me to speak further to any of these facts at an upcoming meeting and I will gladly make myself available. Submitted respectfully, Rakesh Madhava On Mon, Aug 4, 2025 at 11:29 AM Ryan Cummins <rcummins@saugatuckcity.com> wrote: Hi Kevin,

I want to make sure one thing is clarified as you mentioned your office actually received a copy of the license in January. The City sent Bella Vita a copy of the license via e-mail in July 2024. Attached is another copy of that email. The license was attached to that e-mail and states the expiration date. The e-mail also noted you should keep track of it. You acknowledged back in January that it was recertified in July 2024 but wanted another copy of the license. On the January response, I attached a copy of the July 2024 e-mail that was previously sent. Last year, the City also sent owners and agents an e-mail and letter with instructions on how to check expiration dates online. How to check expiration dates is on our website as well.

As we discussed on the phone, you believe under Section 99.58(E) that you have 30 days to correct this. As I explained, that provision relates to deficiencies in a renewal application that is submitted timely. Section 99.58(B) identifies when renewal applications are due:

99.58(B) The license holder or local agent may apply for a renewed license by submitting a renewal application to the enforcing officer no later than thirty (30) days prior to the date that the license is set to expire, along with the license renewal fee established by the City’s fee schedule. Renewal applications may be submitted no later than five (5) calendar days after this deadline, subject to a late fee established by resolution of the City Council. Renewal applications submitted after this five (5) calendar day grace period by any amount of time shall be deemed untimely and shall not be processed by the City, and the short-term rental license shall be deemed expired.

As you can see, an untimely renewal application shall not be processed by the City, which is the case here.

As we discussed, only the City Council can change the ordinance and staff has to carry out what is currently in place.

Please let me know if you have any questions.

Thank you,

Ryan Cummins City Manager

City of Saugatuck 102 Butler St PO Box 86 Saugatuck, MI 49453 Ph: (269) 857-2603

A proud partner of Coldwell Banker Woodland Schmidt Realty 616-635-1717 www.bellavitavacationrentals.com

From: Ryan Cummins [mailto:rcummins@saugatuckcity.com] Sent: Monday, August 04, 2025 10:40 AM To: Kevin Tringali; Kevin Tringali; rakesh.madhava@gmail.com Subject: RE: 534 St. Joseph

Hi Kevin,

Unfortunately, it appears that the renewal would be untimely. It looks like there were STR licenses for both the home and ADU and both expired on 7/5/25.

The ordinance requires that renewals be submitted “no later than thirty (30) days prior to the date that the license is set to expire”. See 99.58(B). We reminded both owners and agents of this last year and advised folks it was important to keep track of the expiration dates. We also noted in the email when issuing the license that you should note the expiration date.

The ordinance allows for a late renewal application, but they may only be submitted five calendar dates after the deadline and are subject to a late fee. “Renewal applications submitted after this five (5) calendar day grace period by any amount of time shall be deemed untimely and shall not be processed by the City, and the shortterm rental license shall be deemed expired”. See 99.58(B).

The property cannot be rented without a STR license. With the cap in community residential there aren’t licenses available.

Please let me know if you have any questions. 5

We have everything in line, I believe this is our first “annual” renewal just waiting for a copy of the updated insurance policy, everything else is in line and will be handed in this week.

Thank you!

Kevin Tringali Bella Vita Real Estate / Vacation Rentals A proud partner of Coldwell Banker Woodland Schmidt Realty 616-635-1717 www.bellavitavacationrentals.com

From: Ryan Cummins [mailto:rcummins@saugatuckcity.com] Sent: Friday, August 01, 2025 5:01 PM To: Kevin Tringali; Kevin Tringali; rakesh.madhava@gmail.com Subject: 534 St. Joseph

Hello,

Our system shows that your short-term rental license expired on 7/5/25. The unit cannot be rented without a STR license.

Further information about short-term rentals can be found here: https://www.saugatuckcity.com/shortterm-rentals.html

Please let me know if you have any questions.

Thank you,

Ryan Cummins City Manager

City of Saugatuck 102 Butler St PO Box 86 Saugatuck, MI 49453 Ph: (269) 857-2603

March 28, 2026 Saugatuck City Council City of Saugatuck 102 Butler Street Saugatuck, Michigan 49453 Re: Proposed Amendment to Ordinance 260209-A, Section 99.58(B)(a) — Single Condition Revision to Amnesty Eligibility, STR Licenses CSTR-240021 and CSTR240024, 534 St. Joseph Street Dear Members of the City Council: My name is Rakesh Madhava. I am the sole owner of 534 St. Joseph Street. The Council has my March 21, 2026 submission requesting reconsideration of the extraordinary circumstances determination under Section 99.64(B), which I incorporate by reference. I respectfully request time to discuss this supplemental proposal at the April 8 workshop along with my previous submission, with a view to adoption at the April 13 regular meeting. I maintain that this Council has the authority and responsibility to direct staff to find that extraordinary circumstances exist in my situation, as documented in my March 21 submission. I am also proposing a separate legislative avenue by which the Council may rectify this situation directly, without requiring any determination by staff or outside counsel. I also want to state plainly for the record: at the January 7, 2026 workshop, this Council represented to me and to the community that it was granting amnesty to the affected STR license holders so that the City and license holders could start with a clean slate after the ordinance was amended. A majority of this Council believed that commitment covered all nine properties under discussion. I am one of the properties that did not receive relief under the amendment as adopted. This proposal gives the Council a narrow, principled path to honor that commitment — one that does not weaken the ordinance, does not overturn any staff determination, and is fully consistent with the ordinance’s own internal logic. I propose a single amendment to one condition within the existing amnesty provision of Section 99.58(B)(a). The change requires no new subsection, no new administrative structure, and no alteration to any other provision of the ordinance or the amendment. It does not overturn any determination made by staff or legal counsel. It addresses a narrow gap in the amnesty framework — one that by coincidence excluded my property — and it does so in a way that is fully consistent with the ordinance's own internal logic.

The Existing Provision Section 99.58(B)(a) of Ordinance 260209-A provides that an owner whose license lapsed may reapply if, among other conditions, the license holder submitted a renewal application to the City after the renewal deadline but before the license expired. This condition was designed to capture owners who made a good-faith effort to renew but missed the front-loaded application window. My license expired July 5, 2025. The City notified me of the expiration on August 1, 2025. I filed a renewal application on August 4, 2025 — three days after notification. Because my expiration preceded the City's notification, I was unable to file before the license expired, and I therefore do not meet the current condition. Every property that ultimately received amnesty filed after that same notification — they were able to file before their licenses expired only because my situation alerted them in time. The Proposed Change I propose that condition 2) of Section 99.58(B)(a) be revised as follows. The current “amnesty” language reads: a. Notwithstanding anything in this chapter to the contrary, an application for a short-term rental license may be submitted by an owner who previously held a short-term rental license if the following applies: 1) the short-term rental license at issue expired between April 24, 2025, and the effective date of this Ordinance; and 2) the license holder submitted a renewal application to the City after the renewal deadline but before the license expired; and 3) the untimely renewal application otherwise satisfied all applicable requirements of the City Code. In such circumstances, the license holder may apply for a short-term license no later than five (5) calendar days after the effective date of this Ordinance. Such applications may be processed and a short-term rental license issued (effective on the date of issuance), subject to the payment of the late fee set forth herein and satisfaction of all other requirements of the City Code. The proposed language would read (proposed changed emphasized): a. Notwithstanding anything in this chapter to the contrary, an application for a short-term rental license may be submitted by an owner who previously held a short-term rental license if the following applies: 1) the short-term rental license at issue expired between April 24, 2025, and the effective date of this Ordinance; and 2) the license holder submitted a renewal application to the City after the renewal deadline but before the license expired; or within 30 days of City’s written notification of expiration, consistent with the cure period established under Section 99.58(E); and 3) the untimely renewal application otherwise satisfied all applicable requirements of the City Code. In such circumstances, the license holder may apply for a short-term license no later than five (5) calendar days after the effective date of this Ordinance. Such applications may be processed and a short-term rental license issued (effective on the date of issuance), subject

to the payment of the late fee set forth herein and satisfaction of all other requirements of the City Code. That is the entirety of the proposed change. All other conditions of Section 99.58(B)(a) remain unchanged, including the requirement that the license expired within the defined pre-ordinance period and that the application otherwise satisfied all applicable requirements of the City Code, including payment of the applicable late fee.

Why This Change Is Sound Section 99.58(E) already establishes that when the City notifies an owner of a deficiency in the renewal process, the owner has 30 days to respond and cure. An expired license is a deficiency in the renewal process. Extending the same 30-day cure period to City notification of expiration is consistent with the ordinance’s own treatment of every other renewal deficiency. It does not create a new standard — it applies an existing one consistently across all renewal deficiencies. All requirements of the chapter continue to apply. The hard stop date remains in place. No ongoing exception is created and no future renewal cycle is affected. The amendment is administratively self-executing. If adopted at the April 13 regular meeting, it takes effect upon publication in the Commercial Record — the same mechanism by which Ordinance 260209-A itself took effect. Upon publication, the existing five-day filing window reopens from the effective date of this amendment, exactly as it did when the original amnesty provision was published. No new machinery is required. The Council has done this before. The amnesty framework as currently drafted produced an exclusion that was not publicly deliberated. This amendment corrects it. The 30-day window is not arbitrary — it mirrors the cure period the ordinance already provides under Section 99.58(E). An owner who receives City notification and responds within 30 days has demonstrated exactly the good-faith conduct that provision was designed to reward. The preamble of Ordinance 260209-A describes its purpose as addressing a failure to timely submit a renewal application — not permanent extinguishment based on calendar position. Rejecting this revision does not advance that objective. It contradicts it. There is also a fundamental asymmetry in the current outcome that the Council should consider directly. The City’s position is that it bears no responsibility for the accuracy of its own records — the wrong owner named on the license two months after the recorded deed, the license transmitted to a non-existent email address not in the application, records acknowledged as incorrect but never corrected. Those errors carry no consequence for the City. Yet a single clerical error by the owner’s agent — one misfiled date — who was hired by me in part because of his role in crafting the STR legislation results in permanent loss of two licenses with no cure pathway. The City cannot claim immunity from any consequence of its own administrative errors while imposing the maximum possible consequence for an equivalent error by the owner’s

agent. This amendment – or finding of extraordinary circumstances - provide avenues for a proportionate and principled remedy that reflect what City Council said it would do on January 7th.

Request I respectfully request that this proposed revision be placed on the agenda for the April 8 workshop for discussion, with a view to adoption at the April 13 regular meeting. I am available to address the Council at both meetings.

Respectfully submitted,

Rakesh Madhava Owner, 534 St. Joseph Street Saugatuck, Michigan 49453

cc: Grayson Moore, Director of Planning and Zoning cc: Jacob Witte, FSBR Law cc: Ryan Cummins, City Manager