Overview: Are Short-Term Rentals Allowed in Red Wing?

YES, short-term rentals are allowed in Red Wing, MN, but with specific regulations and permit requirements. As of November 4, 2023, Red Wing has implemented a comprehensive regulatory framework for short-term rentals through Ordinance No. 203 and No. 204. The city distinguishes between owner-occupied and non-owner-occupied units, with different permit requirements for each category. There are also caps on the number of non-owner-occupied units allowed citywide.

How to Start a Short-Term Rental Business in Red Wing

Step 1: Determine Your Permit Type

• Owner-occupied units: Require a Certificate of Compliance
• Non-owner-occupied units: Require an Interim Use Permit (limited to 50 total citywide)

Step 2: State-Level Licensing

All short-term rentals must obtain a Minnesota Department of Health (MDH) lodging license regardless of ownership status.

Step 3: Local Application Process

Submit applications to the Community Development Department at 419 Bush St. Applications can be:

• Submitted by fax: 651.388.4782
• Emailed to Planning Manager Steve Kohn (steve.kohn@redwingmn.gov) or Permits & License Manager Lisa Acker (lisa.acker@redwingmn.gov)
• Dropped off in person Monday-Friday, 8 AM - 4:30 PM

Required Documents, Permits, Licenses, and Guidelines

City of Red Wing Requirements

For All Units:

1. Short-Term Rental Application Form
2. Hotel and Motel Sales Tax Return Form (required for all approved STRs)
3. MDH Lodging License (must be submitted prior to operation)

For Owner-Occupied Units:

• Certificate of Compliance
• Must include proof of owner occupancy
• Administered administratively

For Non-Owner-Occupied Units:

• Interim Use Permit (IUP)
• Valid for 5 years from approval
• Renewable per Section 90-045 (G)
• Expires upon property sale, use cessation, or owner/operator change

State of Minnesota Requirements

Minnesota Department of Health (MDH):

1. New Construction Plan Review Application (complete pages 1, 2, and 4)
2. Lodging License
3. Initial state inspection (conducted at least 2 weeks before opening)
4. Tax ID Number from Minnesota Department of Revenue

Fee Structure:

• MDH plan review fee: $375
• Annual MDH license fee (prorated for remainder of year)
• Licenses run January-December annually

Specific Regulations for Short-Term Rentals

City of Red Wing Zoning Districts

Owner-Occupied Units Allowed With Certificate of Compliance:

• A – Agriculture zoning district
• AR – Agriculture residential district
• R-1 – Single family residential district
• R-2 – Two family residential district
• RM-1 – Multiple family residential district
• RM-2 – Multiple family residential district

All Districts Require Interim Use Permit (Owner-Occupied or Non-Owner-Occupied):

• B-2 - General Business district
• B-2a - Mixed General Business & Central Business district
• B-3 - Central Business district
• Civic District
• MC - Mixed use Industrial/Office Commercial district
• MCT – Mixed Use Commercial Tourism district
• Riverfront district

Capacity and Parking Requirements

Occupancy Limits:

• Total occupancy = 1 + (number of bedrooms × 2)
• Example: 2-bedroom unit = maximum 5 guests

Parking Requirements:

• Residential districts: 1 off-street space per 2 guest rooms + 2 spaces per permanent residence
• All districts: Guest parking must be on improved driveway or parking surface on-site
• Must comply with Chapter 11 Zoning Code, Division 60

Distance and Concentration Limits

Non-Owner-Occupied Units:

• Maximum 50 total units citywide (currently 25 licensed as of January 14, 2025)
• Maximum 2 non-owner-occupied units within 400 feet of each other
• Multi-family building limits per Section 55-119 (Q):
  • 12 or fewer units: up to 33% can be STRs
  • 13-24 units: up to 25% can be STRs
  • More than 25 units: up to 10% can be STRs

Owner-Occupied Units:

• No count toward maximum citywide limit
• Not subject to distance requirements

Operational Restrictions

Events and Gatherings:

• Events (more than 3 unregistered guests) not allowed unless approved in IUP
• Outdoor activities must cease by 10 PM

Grandfathered Operations:

• Existing conditional use permits remain valid
• Exempt from new requirements until permit revocation under existing guidelines

Tax Obligations

Hotel/Motel Tax:

• 3% tax on lodging charges (Ordinance No. 153, effective November 1, 1993)
• Must file monthly returns by 15th of following month
• Late fees apply for late payments
• Applies to all STR types (owner-occupied and non-owner-occupied)

State and County Regulations

Minnesota Department of Health (State Level)

• All lodging units require MDH licensing regardless of duration
• Units rented for less than one week are considered hotels/motels
• Initial inspections required before operation
• Ongoing compliance with building code, fire code, and public health regulations

Goodhue County

• No additional county-specific regulations identified
• MDH local contact: Andrea Kieffer, Health Sanitarian III (507.206.2721, andrea.kieffer@state.mn.us)

Contact Information

City of Red Wing - Community Development Department

Physical Address: 419 Bush St., Red Wing, MN 55066
Phone: 651.385.3623
Office Hours: M-Thursday 7 AM-4:30 PM, Friday 7-11 AM

Key Contacts:

• Lisa Acker, Permits and License Manager
  Phone: 651.385.5113
  Email: lisa.acker@redwingmn.gov

• Steve Kohn, Planning Manager
  Phone: 651.385.3622
  Email: steve.kohn@redwingmn.gov

Minnesota Department of Health

• Local Contact: Andrea Kieffer, Health Sanitarian III
  Phone: 507.206.2721
  Email: andrea.kieffer@state.mn.us

Minnesota Department of Revenue

• Required for business tax ID number
• Website: revenue.state.mn.us

Links to Source Pages

Official City Documents

• Short-Term Rental Application Form (PDF)
• Hotel and Motel Sales Tax Return Form (PDF)
• Short-Term Rentals FAQ (PDF)
• Current Approved STR Locations List (PDF)
• Owner-Occupied Process Timeline (PDF)
• Non-Owner-Occupied Process Timeline (PDF)

State Resources

• MDH New Construction Plan Review Application
• Lodging in Minnesota
• MDH Lodging License Information
• Minnesota Lodging Requirements (Chapter 4625)

Municipal Websites

• City of Red Wing Short-Term Rental Main Page
• Community Development Department
• Ordinance No. 203
• Ordinance No. 204

Important Note for Investors: Given the 50-unit cap on non-owner-occupied STRs and the concentration limits, interested buyers should verify property eligibility before purchase. Contact the Community Development Department to confirm if prospective properties meet current regulatory requirements.