Lake County Planning Commission backs two vacation rental requests with conditions

Lake County's Planning Commission backed two more vacation-rental proposals, but only on a one-year clock and only with conditions. The decisions, one for 770 Airport Road in Two Harbors and another for 480 Kawishiwi Trail in Ely, show how the county is allowing short-term rentals while keeping a firm hand on future reviews.

At its June 15 meeting at the Law Enforcement Center in Two Harbors, the commission recommended interim use approval for a vacation rental home filed by Sasha Fjeran for the Airport Road property. A public hearing notice identified the site as the NE1/4 of NW1/4 in Section 27, Township 53, Range 11, zoned R-1 Residential in Unorganized Territory No. 2, under parcel ID 25-5311-27250. The property is described in public real-estate listings as a single-family home built in 1978 on a 40-acre lot. Because the site sits in shoreland tributary zoning, the approval carries added weight for neighbors watching lake access, environmental impacts and compatibility.

The panel then took up a second request from Under Pine Skies LLC for 480 Kawishiwi Trail in Ely and again recommended a one-year approval with conditions. Taken together, the two decisions suggest the county is not treating vacation rentals as a permanent entitlement. Instead, the Planning Commission is using short-term approvals to preserve leverage if a site creates conflict, fails inspection or runs afoul of local rules.

That approach fits Lake County's current framework. The county says short-term vacation rentals of 30 days or less are permitted through interim use permits, reviewed in public hearings, with renewals every one to five years. Its start-up guide tells applicants to check permit availability in townships with caps, file an initial IUP application and later submit renewal paperwork before expiration. County materials also say vacation rental homes and bedroom additions require inspections after five years when new and every three years after that. Lake County staff list Alexandra Campbell as the Environmental Services Specialist handling vacation rentals and Planning Commission and Board of Adjustment meetings, underscoring how routine and specialized the permit process has become.

The policy grew out of the county's 2023 ordinance overhaul. Commissioners approved amendments to Section 27.06 A of Land Use Ordinance No. 12 on May 9, 2023, and the county said the changes took effect May 28, 2023, after Interim Ordinance No. 19-2 expired. Lake County said it began accepting vacation-rental interim use applications on May 30, 2023. The amended ordinance also places caps or limits on vacation rental homes in residential zoning districts in Unorganized Territory No. 2, Unorganized Territory No. 1, Beaver Bay Township, Crystal Bay Township, Silver Creek Township, Stony River Township and Knife River.

For Lake County, the June 15 votes were more than two site-specific approvals. They reflected a broader land-use posture that tries to accommodate tourism demand while keeping vacation rentals under active review, especially in rural and shoreland settings where pressure on housing, neighborhood character and county enforcement is likely to continue.