Koochiching County commissioners Tuesday asked staff to gather more information about rules on homeowners renting their residences for short periods.
Environmental Services Director Dale Olson met with the board in committee Tuesday to inform them that three residences in the county are being rented for short-term periods without first gaining a conditional use permit.
Two of the property owners have said they will allow current reservations to take place, but agreed to stop advertising their homes on the Internet until county officials determine how to proceed.
An letter from Shermoen & Jaksa Law Offices, representing a third homeowner, said no county ordinances prohibits short-term rental of single-family dwellings. The letter said since no violation of county rules exist, the residence will continue to be rented, and forwarded a case in another county for the county to consider.
County Attorney Jeff Naglosky said he would research the establishment by the county of a lodging taxing district, as well as other laws governing short-term rentals, and report back to the board.
Steve Blair, ESD staff, reminded the board that half a dozen property owners in the past have sought conditional use permits to allow rentals of their residences for less than 30 days. All of those requests have been rejected by the Zoning Commission, based on concerns voiced by neighboring property owners, he said.
Commissioners Wade Pavleck and Rob Ecklund said that while they respect the rights of county residents to use their properties, commercial lodging establishments must comply with state and county law in offering rooms and cabins.
“If they rent in the short term, shouldn’t they be subject to the same conditions, including paying a lodging tax?” Pavleck asked.
In other business during a brief morning meeting Tuesday, the board in committee discussed with members of the Public Health Nuisance Committee complaints about blight and other issues in the county.
Susan Congrave, public health director and a member of the committee, said the committee’s directive is to deal with health threats and nuisances; not blight issues.
The county does not have an ordinance on blight, however ESD staff send letters when they receive complaints about junk cars and other similar issues.
Commissioners agreed that the committee must be aggressive when dealing with health threats, and may need to be more aggressive on other issues that are outlined in the county’s ordinances.
Board Chairman Brian McBride urged the committee to consider how to help people correct issues when complaints are voiced.
The board also heard in committee that there may be time to consider a public meeting in order to modify the 2012 county budget to help finance a second cold box at the Koochiching Economic Development Authority facility.
The board, however, said it would prefer to guarantee a loan by the city of International Falls for the more than $600,000 cold box, with the city retaining 2-percent interest in a payback from the client.
According to county officials, International Falls has said it would commit up to $350,000 toward the project.
The client remains undisclosed, but has indicated to officials it would sign a 10-year agreement to test at the facility, with the loan repaid in five years.
Pavleck noted that the KEDA has the authority to bond for such projects.
“If they get the benefit, why shouldn’t they finance it,” he said of the KEDA.
And, he said, the city has an Economic Development Authority that will soon have its own director. He later added that in the long term, he would like to see KEDA operated under the city’s EDA.
“I don’t want to open the (county) budget for this,” he said. “I support the cold box, but I don’t want to put the county taxpayers at risk.”
In the meantime, KEDA Director Paul Nevanen indicated to Ecklund that he would also seek funding for the project from Minnesota Power and the Northspan Group, reported Ecklund.
The board directed Administration Director Teresa Jaksa to send a letter to city officials saying that the county would guarantee the loan with the city to retain the interest in a payback scenario.
Timber harvest
In regular session, the board heard from Land Commissioner Dennis Hummitzsch that the county, at about mid-year, has sold 57,832 cords of wood at a value of $1.54 million.
Hummitzsch said that’s about $300,000 more than was sold at this time last year. And, he said, the amount of wood sold is on track in the county’s goals of its timber sales plan.
However, he told the board, that harvest is at a high point in the plan, which calls for a drop in the amount of aspen that will be sold in coming years.
He said that the income level will be at about the 2009 level for the next five or 10 years.
“That’s the lowest year,” said Jaksa. “That’s not good.”
Wood sold by the county is shared by the county’s general fund, school districts, cities and other funds.
“I just want you to be aware of that change in our plan,” said Hummitzsch.
Meanwhile, Hummitzsch reported that 30,657 cords of wood at a value of $877,3000 were sold in May 2 auctions. Aspen price at the auctions ranged from $13.75 per cord to $42.46. The average aspen price was $32.92 per cord. The average price for all species sold at auction was $28.61 per cord.
