Lake County to hear short-term rental proposal in Two Harbors

Lake County planners will review Chelsea and Joel Schultz’s request for a short-term vacation rental at 3812 Hwy 3 in the Silver Creek area of Two Harbors, putting another rental proposal into the county’s land-use process. The Planning Commission is set to meet July 20 at 5 p.m. at the Law Enforcement Center in Two Harbors and will make a recommendation to the Lake County Board of Commissioners.

The application, filed under Lake County Land Use Ordinance No. 12, seeks an interim use permit for a home on a 20-acre parcel in shoreland R-1 residential zoning. That makes the case larger than a single property notice. In Lake County, vacation rentals sit at the point where housing supply, shoreline rules, visitor demand and neighborhood expectations collide.

County rules treat short-term rentals as a regulated use, not an informal side business. Lake County says a permit is required for any dwelling rented for 30 days or less, and the permitting process includes public hearings before the Planning Commission. Permits are renewed every one to five years. The county also says vacation rental homes and bedroom additions require inspections after five years for new properties and every three years after that.

The county’s own startup guide adds another layer: applicants are told to check whether permits are available in townships with permit caps and to submit applications by the deadline for the Planning Commission meeting they want. That framework gives nearby property owners a formal place to raise concerns about parking, noise, guest turnover and how a home is used over time.

Lake County has been tightening and revising those rules for several years. On May 9, 2023, the Board of Commissioners approved amendments to Section 27.06 A of Land Use Ordinance No. 12 covering vacation rental homes. The county said it would begin accepting interim use applications on May 30, 2023, after a moratorium expired, and the Planning Commission held a hearing on proposed vacation-rental amendments on April 27, 2023. More recently, commissioners approved additional amendments to the comprehensive plan and Land Use Ordinance No. 12 on June 24, 2025, with those changes taking effect July 4, 2025.

The Planning and Zoning department says it has worked since the mid-1970s to protect the health, safety and general welfare of the public and environment through land-use standards. That mission will be central again on July 20, when planners weigh whether the Schultz application fits the county’s residential shoreline rules and whether it should move on to the five-member county board.