Park Township reiterates short-term rental rules, but won't enforce yet

PARK TWP. — The plot thickens as short-term rental disputes continue in Park Township.

On Thursday, March 14, the Park Township Board of Trustees voted in favor of two STR-related ordinances.

The first, staff said, was intended to "provide clarity" by reaffirming pre-existing regulations. It describes, according to township documents, the history of transient lodging in Park Township, the rationale for past and current limitations on such uses, and describes enforcement practices that began last year.

The ordinance amends the Zoning Ordinance "by defining short-term rentals" and asserting they are prohibited in all zones except C-2 Resort Service. The ordinance states anything not expressly allowed by the Zoning Ordinance is prohibited.

The plot thickens as short-term rental disputes continue in Park Township.
The plot thickens as short-term rental disputes continue in Park Township.

The second ordinance, staff said, was to address "confusion in the community" regarding the "impact of the temporary injunction imposed by the Ottawa County Circuit Court, which currently prevents Park Township from enforcing the prohibition on short-term rental activity."

Staff said, as a result, some believe short-term rentals are now a permitted use and others have begun new operations. The second ordinance establishes a moratorium on new short-term rentals, and explicitly states the move "shall be interpreted to be consistent with and not in conflict with the injunction" issued Dec. 1, 2023.

"There is no intent on the township's part to begin enforcement practices as long as the injunction is in effect."

In other words, the township holds short-term rentals were always prohibited under existing Zoning Ordinance and wants to remind the public not to operate them, but will not enforce those rules until the injunction is lifted.

The injunction was granted after a local group, Park Township Neighbors, filed suit arguing 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 to avoid the grandfathering of existing STRs.

The nonprofit argued this was a de facto zoning ordinance and asked the court to strike down the ban, declare STRs a lawful use and requiring the township to allow them or alter its ordinances "following the requirements and procedures in the Michigan Zoning Enabling Act."

Katie Johnson, a representative for Park Township Neighbors, was again in attendance Thursday.

“I’m here to reiterate the comments I made to the (planning commission) last month,” Johnson said. “We think the ordinances violate the intent and spirit of the preliminary injunction. ... We also think the judge is going to view the township’s maneuvers as some sort of end around the preliminary injunction or gamesmanship, and it will be frowned upon by the judge.”

The township's ban on STRs went into effect Oct. 1, 2023. Park Township Neighbors, a group of property owners and other stakeholders, filed the lawsuit Thursday, Oct. 5, alleging the township refused to give them a chance to address their grievances or present in public meetings

"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 STRs as an unauthorized use — however, because they also weren't listed as an authorized use, the township's attorney eventually advised officials STRs in residential areas were illegal by default; an argument the township is now leaning on.

Park Township, in response, agreed to research and potentially develop a new ordinance that would allow for the licensing and proper regulation of STRs, rather than shutting existing ones down.

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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. A later motion declared the sunset date of Oct. 1, 2023.

— Contact reporter Austin Metz at ametz@hollandsentinel.com.

This article originally appeared on The Holland Sentinel: Park Township reiterates short-term rental rules, but won't enforce yet