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HomeMy WebLinkAbout07-13-2026 Community Investment & Zoning and Annexation Joint Committee MinutesOFFICE OF THE CITY CLERK BIANCA L. TIRADO, CIT'Y CLERK COMMUNITY INVESTMENT & ZONING AND ANNEXATION (JOINT MEETING) Community Investment Committee Members Present: Community Investment Committee Members Absent: Zoning and Annexation Committee Members Present: Zoning and Annexation Committee Members Absent: Other Council Present: Others Present: Presenters: Agenda: JULY 13, 2026, 5:00 P.M. Sheila Niezgodski, Sherry Bolden-Simpson, Kevin Upton, Ophelia Gooden-Rodgers, Karen L. White Tom Gryp Dr. Heidi Beidinger, Karen L. White, Kay Farlow, Stacey Odom (arrived late), Rachel Tomas Morgan, Dr. Oliver Davis None Canneth Lee, Sharon McBride Bianca L. Tirado, Matthew Neal, Jasmine Jackson, Lari 'onna Green, Veronica Pitt- Payne, Bob Palmer Troy Warner, Jenna Throw Discussion -Short-Term Rentals Members marked with an asterisk(*) are in virtual attendance via Microsoft Teams. Please note the attached link for the meeting recording: https://docs.southbendin.gov/WebLink/browse.aspx?dbid=0&mediaid=411085 Community Investment Committee Chair Karen L. White called to order the Community Investment & Zoning and Annexation Joint Committee meeting at 5:00 P.M. Jasmine Jac kson Cl IIEF D EPLTY CnY Ci.ERK / Cl11EF OF ST \FF INTEGRITY I SERVICE I ACCESSIBILITY Matthew cal D EPLTY CITY CLERK / DIR.1-:C:TOR OF POLICY Veronica Pill-Payne DIRECTOR OF SPECL\L PROJECT~ EXCELLENCE I ACCOUNTAB ILITY I INNOVATION I INCLUSION I EMPOWERM ENT 300 City Hall I 215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 If. 574.235.91731 www.southbendin.gov @ CITY OF SOUTH BEND I OFF1CE OF THE CITY CLERK Discussion -Short-Term Rentals Troy Warner, Mayor's Chief of Staff, with offices on the sixth (6th) floor of City Hall, South Bend, IN 46601 , provided background for the discussion. He spoke about the impact of short-term rentals (STRs) on neighborhoods and described resident-reported public nuisance and safety concerns. He noted that state law restrains what the City can do about STRs. He introduced City Attorney Jenna Throw to present draft legislation aimed at regulating STRs, and he recommended waiting to hear public comment until the bill is filed and formally presented on August l 0, 2026. Jenna Throw, City Attorney, with offices on the sixth (6th) floor of City Hall, South Bend, IN 46601 , gave a PowerPoint presentation about the proposed bill She defined STRs as homes or rooms that are rented to guests for fewer than thirty (30) days. She gave an overview of the concerns about STRs including noise, trash, parking, absentee landlords, reduced housing stock, and increased housing costs. She explained that state law prevents cities from banning STRs, capping the total number of STRs, and regulating STRs more harshly than other homes. She said state law does allow cities to require permits and special exceptions for STRs, enforce existing building and fire codes, enforce existing noise and nuisance ordinances, and require owners to provide emergency contact information. She said the proposed bill would require STRs to obtain a City permit, provide a local emergency contact, and meet basic safety and property maintenance standards, with permits subject to revocation after three (3) violations. She said the proposed bill would also require non-owner-occupied STRs to obtain special exceptions, with approval contingent upon holding a valid STR permit and satisfying all other special exception requirements per Municipal Code. She said these measures would enhance oversight ofSTRs and provide clear enforcement tools while complying with state law and keeping the rules consistent and fair. Community investment Committee Chair White said she would allow two (2) members from each Committee to ask questions of the presenters. She noted that she may ask Zoning and Annexation Committee Chair Dr. Davis for more time if the joint meeting extends past the scheduled 5 :40 P.M. start of the Zoning and Annexation Committee meeting. Zoning and Annexation Committee Chair Dr. Davis said he would allow this. Community Investment Committee Chair White invited questions from Community Investment Committee Members and requested a copy of the PowerPoint from Attorney Throw. Community investment Committee Vice Chair Ophelia Gooden-Rodgers asked about the permitting process. Attorney Throw said permits would be valid for one (1) year, and permit holders could rent their property multiple times during the one (1 )-year permit period. Community Investment Committee Vice Chair Gooden-Rodgers asked about emergency contact procedures. Attorney Throw confirmed that the South Bend Police Department (SBPD) would call the emergency contact on file if an issue is reported with the property. She said there is no mandated EXCELLENCE I ACCOUNTABILITY ! INNOVATION ! INCLUSION I EMPOWERMENT 300 City Hall I215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 If. 574.235.9173 1 www.southbendin.gov ® CITY OF SOlITH BEND I OFFICE OF THE CITY CLERK timeframe for the emergency contact to answer calls and reiterated that state law tightly limits what the City can do. Community Investment Committee Member Sheila Niezgodski asked if the City can require a property manager. Attorney Throw said the City likely cannot require a property manager. She said owners who have a property manager would be required to provide property manager information in their permit application. Community Investment Committee Member Sheila Niezgodski noted that the proposed STR permits could be revoked after three (3) violations. She asked about the timeline for permit revocation and the property owner's ability to obtain a new permit after one (1) has been revoked. Attorney Throw said permits can be revoked for up to one (1) year following three (3) citations in a calendar year. She said property owners would get a notice and opportunity for a hearing as part of the process. She said property owners with revoked permits may apply for a new permit, provided they pay another permit application fee and pay all outstanding fines. Community Investment Committee Member Sheila Niezgodski asked if the City is required to reissue permits, or if they can deny permit renewals due to previous issues. Attorney Throw said it would depend on the property's special exception status. She said non- owner-occupied properties with special exceptions can lose their special exception or legal non- conforming status, requiring them to come before Council for a new special exception. She noted that SBPD Sergeant Jarveair Bourne commented on Community Investment Committee Vice Chair Gooden-Rodgers's question about emergency contact procedures in the meeting chat, stating that SBPD would document "no contact" if emergency calls went unanswered. Zoning and Annexation Committee Member Dr. Heidi Beidinger asked about the number of STRs in the City. Attorney Throw said zoning staff are aware of one-thousand-three-hundred (1 ,300) active STRs in the last five (5) years. Zoning and Annexation Committee Member Dr. Beidinger asked about permit enforcement logistics for one-thousand-three-hundred (1 ,300) properties. Attorney Throw said fines would be issued for STRs operating without a permit. Zoning and Annexation Committee Member Dr. Beidinger asked how much the fines would be. Attorney Throw said the City can fine five-hundred dollars ($500) per violation. She noted that each transaction without a permit would be a separate violation. Zoning and Annexation Committee Member Dr. Beidinger asked how the City can address "bad actors" in the STR market and ensure they are aware of the permitting requirements and consequences. Attorney Throw said there would be messaging from the City to communicate the new EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 300 City Hall I215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 If. 574.235.9173 1 www.southbendin.gov (~ CITY OF SOUTH BEND I OFFICE OF THE CITY CLERK requirement, and an initial time period for owners to obtain permits before they are in violation. Tim Staub, Zoning Specialist, with offices on the fifth (5th) floor of City Hall, South Bend, IN 4660 l, said they can partner with code enforcement to identify STR properties with a history of code violations and work from there. He said enforcement would be mostly based on reporting. Zoning and Annexation Committee Member Dr. Heidi Beidinger asked if it would be possible to enforce occupancy limits based on the number of bedrooms. Attorney Throw said any occupancy limits would be restricted to what is already included in the fire code. Zoning and Annexation Committee Member Dr. Beidinger asked if the Legal Department could provide Committee Members with the fire code occupancy limits. She expressed hope that this could prevent groups of twenty (20) or more people from staying in three (3)-bedroom homes. Community Investment Committee Chair White noted the time as 5:40 P.M. and asked Zoning and Annexation Committee Chair Dr. Davis for additional time. Zoning and Annexation Committee Chair Dr. Davis agreed to give additional time to the joint meeting. Zoning and Annexation Committee Vice Chair Rachel Tomas Morgan spoke about her research on the issue and said she has copies of the book Host Nation: How Governments Regulate Short- Term Rentals for a Happier Community for fellow Councilmembers. She acknowledged that some of the solutions in this book are not allowable under Indiana state law and asked if it would be possible to cap the number of STRs per block, enforce occupancy and spacing limits, or cap the number of rental days per year. Attorney Throw said the listed examples are likely not permissible under state law. She said special exceptions cannot be enforced in a manner that prohibits or unreasonably restricts STRs. Zoning and Annexation Committee Vice Chair Tomas Morgan asked about capping the number of STR units per owner. Attorney Throw said that is not specifically prohibited, but STR regulations cannot be stricter than those for typical residential use and long-term rentals. Zoning and Annexation Committee Vice Chair Tomas Morgan expressed concern regarding the City's ability to fully implement landlord registration. She said the City could experience similar challenges in executing the STR registry and permitting process. Community [nvestment Committee Member Sherry Bolden-Simpson asked if non-owner- occupied STRs could lose their special exception status based on past behavior that is injurious to the neighborhood. Attorney Throw said special exceptions are contingent upon a valid permit, and permits can be revoked for repeated code violations. Community Investment Committee Member Bolden-Simpson asked if property owners who are EXCELLENCE I ACCOUNTABILITY ! INNOVATION ! INCLUSION I EMPOWERMENT 300 City Hall I 215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 If. 574.235.9173 1 www.southbendin.gov CilY OF SOUTH BEND I OFFICE OF THE CITY CLERK cited for operating unpermitted STRs would then be eligible to apply for permits. Attorney Throw said applicants who provide their information and pay the application fee are eligible for permits. She said Council has more discretion when granting special exceptions, since the petitioner would need to demonstrate that the proposed use "will not be injurious to the public health, safety, comfort, community moral standards, convenience or general welfare", "will not injure or adversely affect the use of the adjacent area or property values", and "will be consistent with the character of the district in which it is located". Community Investment Citizen Member Kevin Upton asked about positive enforcement actions such as notifying neighborhoods, publishing a list of permitted STRs with their emergency contact information, and incorporating communication with Homeowners Associations (HOAs). He noted that HOA bylaws could help regulate STRs. Community [nvestment Committee Chair White said she would allow two (2) public comments and invited speakers to the podium. Bruce Gordon, 331 South Eddy Street, South Bend, IN 46617, said the discussion seems one (1)- sided. He said people cannot be restricted from buying investment properties, and visitors stimulate the local economy. He acknowledged public nuisance concerns and said non-STR properties can have similar issues. He said the City should focus on code enforcement for all properties with violations before taking on the operational work of regulating STRs. Mary Ellen O'Connell, 125 West North Shore Drive, South Bend, IN 46617, thanked the Committees for having this discussion. She said more code enforcement is needed across the board, and the City will need to ensure they have the resources to regulate STRs effectively. She spoke about the importance of families and community, and how STRs have changed the character of neighborhoods. Zoning and Annexation Committee Chair Dr. Davis thanked Attorney Throw and Troy Warner for presenting and stated that he looks forward to their follow-up. Troy Warner said they will share the draft ordinance and bill framework in the next few weeks. He encouraged members of the public to share their thoughts with their Councilmembers, Mayor Mueller, and the zoning staff. He said the proposal will be filed in August. Zoning and Annexation Committee Chair Dr. Davis announced that Zoning and Annexation Committee Member Dr. Beidinger will hold a public meeting about this issue soon. Community Investment Committee Chair White encouraged members of the public to contact their Councilmembers, send in their questions, and speak to their neighbors about the issue. She added that the Committees will seek input from neighborhood associations. She thanked City administration, Attorney Throw, Troy Warner, and Darryl Scott for facilitating the discussion. With no further business, Community Investment Committee Chair White adjourned the Community Investment & Zoning and Annexation Joint Committee meeting at 6:03 P.M. EXC ELLENC E I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERM ENT 300 City Hall I 215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 If. 574.235.9173 1 wvVW.southbendin.gov t@ CITY OF SOUTH BEND I OFFICE OF THE CITY CLERK Respectfully Submitted, 0~~~ Karen L. White , Community Investment Committee Chair EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 300 City Hall! 215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 If. 574.235.9173 ! www.southbendin.gov