The Rapid City Legal & Finance Committee voted Nov. 26 to forward a first reading of Ordinance No. 6698 — an amendment to Title 17 to define and regulate vacation homes — to the full City Council without recommendation.

Councilman Stephen Tamang, who introduced the ordinance, said the measure creates a clear legal path for whole‑home short‑term rentals while providing neighbors a way to file complaints and seek enforcement. "Having regulations that actually permit vacation homes in the city allows owners and operators a legal basis to operate in the city," Tamang said. "It gives them some protection, and it gives neighbors a path forward."

City staff described the ordinance as a product of an 18‑member advisory committee that included operators, hoteliers and neighborhood representatives. Marlo Capsa, staff lead on the ordinance, told the committee the draft centers on four basics: requiring existing state lodging licensing for life‑safety inspections, an annual local registration (fee under $100) to support monitoring software, an occupancy standard of two persons per bedroom plus two sofa sleepers, and two off‑street parking spaces for each unit. "The registration will allow us to verify that those safety inspections are being conducted," Capsa said.

The draft treats larger houses differently. Units with more than five bedrooms would require a conditional use permit, the staff presentation said, citing repeated complaints about very large gatherings at some properties. Staff also proposed a six‑month grace period to allow existing operators time to secure state licensing and complete the local registration process.

Public commenters included Mike Derby, who said the Department of Health already enforces licensing and that the city ordinance largely brings local rules into compliance. "The Department of Health that coordinates a lot of the licensing for vacation homes already has in place rules, regulations, and statute governing vacation homes," Derby told the committee. Pat Roseland, a member of the advisory committee, described the yearlong deliberations and said the ordinance is a "great beginning," while urging future tightening if needed.

Committee members discussed several specifics. Staff reported a sample of listings shows roughly 25% of listings are currently listed as not owner‑occupied and that fewer than 1% of properties within the city limits currently hold the state license staff reviewed. Committee members asked about the rationale for the two‑persons‑per‑bedroom rule; staff said the advisory committee reached that compromise and noted hotels typically follow a similar occupancy expectation. The committee also confirmed the draft applies to whole‑home, non‑owner‑occupied units and does not change bed‑and‑breakfast rules for owner‑occupied rentals.

After discussion, Councilman Tamang moved — with a second from Layman — to send the ordinance to council without recommendation; the motion passed by voice vote. Director Vicky Fisher offered to meet individually with committee members and to circulate clarified ordinance language prior to the council hearing.

Next steps: the ordinance will appear on the City Council agenda for consideration. The committee record and staff materials will accompany the council packet; staff said they plan a one‑year review after the grace period to assess implementation and any needed amendments.