April 11th, 2023 – Crosslake, MN
The Crosslake City Council punted on comprehensive oversight of the city’s booming short-term rental market last week, outsourcing regulation and licensing to Crow Wing County for the remainder of 2023 despite expert input championing smart growth policies.
Chad Dixon, founder and CEO of Above & Beyond Homes | RE/MAX Results and a member of the RE/MAX Hall of Fame, urged the council to adopt innovative rules enabling “responsible growth of this industry, supporting our business community and neighbors while addressing reasonable concerns.”
“Crosslake is the premier vacation and 2nd home destination of the Midwest. More people want to visit but are unable to due to a lack of vacation lodging availability,” Dixon said. “We want smart rules that enable responsible growth of this industry, supporting our business community and neighbors while addressing reasonable concerns.” Dixon generously offered to provide unparalleled industry insight and cutting-edge technological solutions at zero cost to taxpayers.
However, the 3-2 vote (voting no: Sandy Farder and Dave Nevin) delegated comprehensive oversight to county administrators for the remainder of 2023 while allowing city staff time to set up local administration, hiring personnel, and permitting for 2024.
Last month, the 4-1 council vote (voting no: Dave Nevin) looked at next year for implementation of local control for STRs while contracting county services. The council has discussed this issue since last year.
Council then heard from Chad Dixon, an STR manager, and Tim and Patricia Berg of the Whitefish Area Lodging Association (WALA). Both offered their assistance implementing local control for 2023, but the council stated more time was needed.
The Bergs asked help collecting approximately 78 rental properties’ share of a 1 percent lodging tax to WALA, part of a Joint Powers Agreement and Taxing District with Ideal Township marketing the area.
Fire Chief Chip Lohmiller said life safety measures (egress, smoke and carbon monoxide detectors) were ignored contracting county services, requiring local ordinance address. The chief was told life safety importance, but would wait until the city establishes its own rules.
By outsourcing partial regulation, Crosslake surrendered opportunity gaining more say over its vacation haven destiny. And by refusing forward-thinking leadership, the City Council failed residents and tourism interests – at least for now. With rules and oversight partially outsourced county administrators, Crosslake’s future remains uncertain.
By choosing inaction over proactive governance, Crosslake kicks the can down the road on an issue fundamental to its prosperity. And so the debate continues, threat of lost potential lingering overhead.
