Short-term rentals may resume operations in Park Township, for now
PARK TWP. — Short-term rentals in Park Township may continue to operate, for now, after an Ottawa County judge granted a preliminary injunction Friday, Dec. 1.
More: Property owners sue Park Township in hopes of reinstating short-term rentals
Judge Jon Hulsing issued the decision after listening to arguments in an hour-long hearing, reports FOX-17, after agreeing with newly formed nonprofit Park Township Neighbors the ban appears to be a "zoning-type" ordinance, which PTN argues the township hasn't adequately addressed.
The organization, comprised of property owners and other stakeholders in Park Township, filed its lawsuit against the municipality on Thursday, Oct. 5, alleging the township refused to give them a chance to address their grievances or present in public meetings.
The ban on short-term rentals went into effect Sunday, Oct. 1. It was the result of months of back-and-forth between members of the Park Township Planning Commission.
"For nearly 50 years, Park Township repeatedly and expressly permitted the use of single-family dwellings for short-term rentals," PTN, represented by Kyle Konwinski and Chloe Cunningham of Varnum LLP and Daniel Hatch of Butzel Long, alleged in October.
It's true the municipality's zoning ordinances didn't explicitly list short-term rentals as an unauthorized use — however, because they also weren't listed as an authorized use, the township's attorney eventually advised officials short-term rentals in residential areas were illegal by default.
That created a problem for short-term rental owners who claimed they'd previously been given a green light by staff, and for homeowners frustrated by ever-changing neighbors.
Park Township, in response, agreed to research and potentially develop a new ordinance that would allow for the licensing and proper regulation of short-term rentals, rather than shutting existing ones down.
Planning commissioners drafted an ordinance, hinged on a short-term rental cap and a lottery system — but during a joint meeting in October 2022, consensus between commissioners and trustees seemed to veer toward elimination.
Trustees voted 6-0 on Nov. 10, 2022, to lift an ongoing moratorium on enforcement and require all short-term rentals operating in residential zones to cease. Rentals in commercial zones are unaffected.
A later motion declared a sunset date of Oct. 1, 2023, by which all existing short-term rentals had to close their doors or convert to long-term rentals.
PTN, according to releases posted online, represents over 100 vacation home owners in Park Township that are "in support of regulation, rather than the prohibition of short-term rentals."
In its lawsuit, the organization alleges the board voted, without holding a proper hearing or providing prior notice to the public, to adopt an amendment to its zoning ordinance by defining, regulating and prohibiting short-term rentals.
The lawsuit further alleges the township later adopted another ordinance, also without a proper hearing, that's essentially the same, but amends the general code of ordinances rather than the zoning ordinance to avoid the grandfathering of existing STRs.
The nonprofit argues this is a de facto zoning ordinance and asks the court to strike down the ban, declare STRs a lawful use and require the township to allow them or alter its ordinances "following the requirements and procedures in the Michigan Zoning Enabling Act."
But in court on Friday, the attorney for Park Township, Dan Martin, argued the ban regulates business, not property. In issuing a preliminary injunction, Hulsing indicated there's merit to PTN's argument.
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"We really need to ascertain and get this right," Hulsing said in his closing comments, according to FOX-17.
It could be months before the case is resolved, with Hulsing warning the hearing on Friday wasn't the end of the case, but rather "the beginning."
— Cassandra Lybrink is the local editor of The Holland Sentinel. Contact her at clybrink@hollandsentinel.com.
This article originally appeared on The Holland Sentinel: Short-term rentals may resume operations in Park Township, for now
