BABBITT- The city has placed a temporary hold on new short-term rentals while officials consider replacing Babbitt’s current conditional-use permit system with licensing requirements similar to those used by other area communities.
The city council approved a 180-day moratorium Tuesday on new conditional-use permits for short-term rentals. The moratorium could be lifted earlier if the Planning Commission completes its work and the council adopts new regulations before the six months have elapsed.
Babbitt currently has 12 short-term rentals operating under conditional-use permits. Planning Commission Chair Jim Lassi said the problem with that approach is that a permit remains with the property, rather than the owner. If the property is sold, the new owner retains the right to operate it as a short-term rental.
A licensing system could require new owners to apply separately and would give the city the ability to revoke or decline to renew a license if problems arise. Officials will also consider whether to limit the number or density of short-term rentals.
The city currently has no formal cap, although a limit of 15 has been discussed. Mayor Andrea Zupancich abstained from the moratorium vote.
Council members also resumed their lengthy search for a location for future industrial development.
A site near the Babbitt Conservation Club’s gun range had been considered previously but was rejected following a public hearing because of safety concerns and opposition from nearby property owners. Another privately owned industrially zoned property lies outside the city limits and could require annexation, property acquisition, and a substantial investment in infrastructure. City staff will contact the owner to determine whether the land is still available for sale.
Discussion ultimately returned to approximately 40 acres of city-owned land south of the wastewater treatment plant. The property had been reserved as a possible disposal site for solids from the treatment plant, but officials said environmental and other requirements make it unsuitable for that purpose.
The council directed staff to ask the Iron Range Resources and Rehabilitation Board, which has been assisting the city with its industrial development plans, to evaluate the city-owned property. Access remains an issue, particularly for businesses generating regular heavy truck traffic.
The council also discussed the sale of seven existing industrial lots near the golf course. Zupancich said a client she represented had considered purchasing all seven but withdrew the offer because covenants require hard-surfaced driveway approaches even though the road serving the lots is gravel.
Although the offer had been withdrawn and she was no longer representing an active buyer, Zupancich stepped away from the council table and made her presentation from the public podium to avoid a potential conflict.
The council referred the driveway requirement and other questions about the property covenants to the Planning Commission. Meeting later as the city’s Economic Development Authority, council members directed staff to develop two signs advertising the lots, one near the beginning of Conservation Club Road and another at the property. Information about the lots will also be added to the city website.
In a move aimed at broadening the city’s pool of police applicants, the council amended its patrol officer job description to allow officers to live within either 40 miles or a 60-minute response time of Babbitt. Officials said the expanded area could include Virginia and Mt. Iron. A similar change for the police chief position will be considered at a future meeting.
During the EDA meeting, members reviewed three options for a double-sided electronic message sign outside the Babbitt Municipal Center. The signs ranged in price from approximately $14,000 to $21,000, depending on the size and quality of the display. The estimates include installation of the sign but not the electrical connection.
Lassi moved to table the proposal until after the city begins its upcoming budget discussions, noting that the sign is not essential and that the council could soon be considering cuts in city departments. The EDA will revisit the proposal in September.
The council also agreed to have the city Street Department provide free assistance locating property pins after the Babbitt Public Utilities Commission discontinued the service. Property owners must first sign a waiver at city hall acknowledging that city employees are not surveyors, the pins may have been moved or may be inaccurate, and the locations cannot substitute for a legal survey.
In other business, the council:
• Authorized the Planning Commission to continue developing proposed updates to the city’s Mineral Mining District regulations for consideration at a future public hearing.
• Renewed the city’s facility-cleaning contract with Top to Bottom Cleaning for three years.
• Increased wages for Michelle Hoffman and Martin Vaughn to the state minimum of $11.41 an hour, retroactive to Jan. 1, and authorized an increase to $11.87 beginning Jan. 1, 2027.
• Added Connie Tulla to the city hall casual-labor roster.
• Authorized an interview with police officer applicant Reed Allen Fletcher.
• Adopted a resolution authorizing an IRRR Culture and Tourism grant application for improvements to the city dog park, Red Run Disc Golf Course, and Little League field.
• Hired Eric Pulkinen and Erika Maple for the ambulance service.
• Accepted Hoffman’s resignations from the Recreation Department and recycling center and hired Ashley Laine for the recycling position.
• Authorized staff to arrange the city’s annual fall Cleanup Week, tentatively planned for mid-September.
• The EDA also approved placement of a Discover the Range mine-tour sign near the city’s mining equipment display, subject to permission from Twin Metals. The project will pay for the sign and its installation.