City Council Study Session

City of Spearfish City Council Study Session Minutes May 29, 2024, 4:15 p.m. The City Council Study Session was called to order by Mayor Senden at 4:15 p.m. in the Council Chambers of City Hall on Wednesday, May 29, 2024. The following c o u n c i l members were present: Clark, Hafner, Hourigan, Klarenbeek, Jacobs, and Rath. Absent: None. City staff present were: Finance Officer DeNeui, Parks and Recreation Director Ehnes, Public Works Director McMahon, Interim Planning Director Ecker, and Assistant Public Works Director Caron. Hourigan moved, Jacobs seconded, and all voted to approve the agenda. Items for Discussion Short-term Rental Taskforce Preliminary Recommendations – Interim Planning Director Ecker reviewed the preliminary recommendations of the short-term rental (STR) taskforce. The taskforce adopted the policy goal of, “aim to create a regulator framework that enables the continuation of STR market and addresses critical concerns related to housing, safety, taxation, and community well- being.” The recommendations are to require licensing of STRs, create a STR business improvement district (BID), enter into agreements with rental platforms to require posting of the license number for all listings in Spearfish, provide a Sturgis Rally exception, and set a policy monitoring and adaptation schedule for future policy changes. Discussion was held and Ecker indicated the next steps were to gather community input on the recommendations and to work with peers on the implementation and enforcement of the recommendations. Mayor Senden opened the meeting for public comment at 4:34 p.m. Ryan Cain, STR owner, provided input on the recommendations. Cain noted that the licensing fees could be directed to support Visit Spearfish and that homes should be required to have commercial insurance, not just standard homeowners’ insurance. Joe Jorgensen, resident, noted that some Development Review Districts already approved by the Council have authority to operate STRs so policies or ordinances should not prevent those already approved. Nathan Hoogshagen, STR manager and owner, provided input regarding research done on STRs and he will share that information with members of the council. Hoogshagen also noted that an exception should be stated allowing all homeowners the ability to use their home as STR for 14 days or less in a year instead of a “Sturgis Rally” exception. Randy Smith, resident, spoke on the concerns from homeowners and it is time to set a maximum on the number of STR in Spearfish as they have impacted the quality of life in the community. Smith noted that some smaller homes have been demolished to make way for larger STR properties. Draft Agenda The draft agenda for the June 3, 2024, City Council Regular Session was reviewed. Mayor Senden noted he received a nice compliment on the excellent service provided by the staff of the Grace Balloch Memorial Library. No additional discussions were held, and with a motion from Hourigan and second from Rath, the meeting adjourned at 5:03 p.m.