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KEARNEY — The Kearney city council had their first discussions regarding new code amendments related to short term rentals and downtown residences during their meeting on Tuesday, Jan. 13.
The new code amendments were generally aimed at clarifying the status of residential units on the street level in one-story and multi-story downtown buildings and addressing a grey area in the code regarding short term rentals.
Prior to the code amendment coming to the city council, the Kearney Planning Commission had discussed the amendments extensively. In September 2025, the commission approved naming members to sit on a sub-committee to discuss both short-term rentals and downtown residence.
The committee met three times since September and gathered input from the Downtown Improvement Board.
Ultimately, the planning committee voted 6-1 to send the code amendments to the city council.
Melissa Dougherty-O’Hara, City Planner, appeared before the city council to present the specifics of the amendments and their purpose.
Regarding downtown residences, per the current code, multi-story buildings are allowed to have residences at the street if they comply with the Americans with Disabilities Act (ADA). No residences are allowed in one-story buildings.
The owners must seek approval from the Board of Adjustment for downtown residences in multi-story buildings.
The proposed amendments would allow no residences along a street facing façade, whether it is a single or multi-story structure. Any multi-story street level residences must be APA compliant.
The need to go through the Board of Adjustment would be removed and 40 percent of a one-story building can be converted to residential, to allow for more flexibility when it comes to development.
Other code changes updated occupancy numbers and minimum floor area per resident based on adopted building codes.
Dougherty-O’Hara moved on to short term rentals and noted that currently, there is no code that exists addressing the topic, making it a grey area. A home could be rented as a short-term rental to a family or a maximum of four unrelated people to align with other parts of the code.
The new code amendments would clarify the guidelines for short-term rental operators and users. It would also increase the occupancy to allow more than four unrelated people and address certain safety concerns.
Definitions that would be added to the code include short term rental, “A residential property used in whole or a portion thereof for temporary accommodations for a length of stay per guest visit of no more than 30 consecutive days.”
The amendment would also define a sleeping area, “An area located in a habitable space within a dwelling that contains at least one operable emergency escape and rescue opening. Sleeping areas include bedrooms and may include rooms that meet egress requirements, but exclude hallways, kitchens and bathrooms.”
The new amendments for short-term rentals would also include an annual permitting process, addressing safety items and use of a residential home for commercial applications. It would also clarify how code enforcement complaints are addressed and support compliance with the Hotel Occupation Tax.
Permits would be issued annually, each calendar year, and there would be no inspection necessary for permit approval. There would also be a 60-day compliance period for existing short-term rentals.
The upfront cost would be $200 to fill out an application and $100 ever year for renveal.
Complaints against a short-term rental would have to be verified and operators would be allowed to address complaints before enforcement action would take place.
There would be no regulation that would limit the number of short-term rentals or the number of short-term rentals owned by an individual.
When asked about the necessity of short-term rentals applying for a permit, Brenda Jensen, City Manager, said it would provide a way to monitor for taxes and to have a contact person for an address, which isn’t readily available through short-term rental outlets such as Airbnb or Vrbo.
Council member Alex Straatmann voiced his opinion that short-term and long-term rentals should be addressed through code with equity. He did note that the market for short-term rentals is becoming large enough that city code needs to address it.
Council member Randy Buschkoetter voiced his concern over the $200 application fee and wanted to have further discussion over the cost, as he felt this could be prohibitive.
Two Kearney residents spoke during the public comment period, both to voice concerns about certain parts of the code amendments.
One said that while he appreciates the city’s intent with the new code amendments, he said that responsible short-term renters are not the issue and he felt like there should be equity when it comes to codes aimed at short-term and long-term rentals.
They also noted that short-term renters don’t go out of their way to host large groups that could be disruptive to the neighborhood. They have concern about their property and the lack of parking in most places prohibits large gatherings.
Another resident who operates short-term rentals said they agree with the spirit of the new amendments, but feared that they would be at a competitive disadvantage if they followed all of the new regulations and incurred the new costs as compared to an operator who may skirt the new rules.
Straatmann said at the end of the discussion that he appreciated the conversation and input from the residents; he said that it is clear that different items need to be further worked out with the city staff.
The council approved tabling the code amendments until the next city council meeting on Tuesday, Jan. 27 at 5:30 p.m.
