Lakeville's New Airbnb Rules and What's Coming to Cedar Avenue

Lakeville's New Airbnb Rules and What's Coming to Cedar Avenue

February 20, 2026|6 min read|By South Metro Scoop

TLDR

Lakeville now requires a $100 permit for Airbnb and VRBO rentals. Two neighbors clashed over an old road from 1887, and the council hit pause to find a fair fix. The city shared early plans for a big stretch of empty land along Cedar Avenue — expect mostly homes, not a lot of shops. 1,300 residents weighed in on the future of Lakeville's parks, and the loudest ask was a community center. And Lakeville PD's crisis program kept police out of 88% of mental health calls last quarter.

Here's what went down at Monday night's Lakeville city council meeting on February 17th. There were votes, a neighbor fight, and two big chats about how the city grows from here.

New Airbnb Rules Are Here

Rent your place on Airbnb or VRBO? New rules just kicked in.

The council voted 5-0 to pass new rules for short-term rentals. That means anything rented for 31 days or less. You now need a yearly permit. It costs $100 to apply and $50 to renew.

There's a limit of two rental permits per person. The rules also cover how many guests you can have, where they park, and who manages the property.

This replaces some old rules that were written before Airbnb even existed. Council member Lee said Lakeville is "getting ahead of the curve." He pointed out that Lakeville has a high rate of home ownership. He wants to keep it that way — especially as outside groups try to buy up homes for rentals.

The city will set up an easy-to-use permit process on their website.

Two Neighbors Clash Over a Road From 1887

This one got spicy.

Back in 1887, someone drew up plans for a neighborhood in the woods of northwest Lakeville. Streets were mapped out. Lots were plotted. But none of it was ever built. 139 years later, those old "roads" still exist on paper.

A property owner on Legal Avenue, Darren Schmidt, asked the city to drop those old road plans from his property. The city has no roads or pipes out there. No plans to build any. And Schmidt was offering road access along Legal Avenue in return.

Seemed like a done deal. Then his neighbor showed up.

Steven Buck lives on Judicial Road nearby. His worry? If one of those old paper roads goes away, any future traffic to nearby empty land would have to run right past his house. Just 50 feet from his front door.

"For 15 years I've been taking care of that gravel road in front of my home," Buck told the council. "I do all the snow removal. I do all the work."

Schmidt said they'd been working on this deal for 10 months. He says the land is too steep there for a real road anyway.

Mayor Hellier pumped the brakes. "I don't want to fix it for one person and cause problems for another," he said. The council delayed the vote. Staff will work with both neighbors to find a fair answer.

Cedar Avenue's "Donut Hole" — What's Coming to South Lakeville

Live in south Lakeville? You'll want to know about this.

There's a big chunk of empty land along Cedar Avenue between 185th and 200th Street. City staff call it "the donut hole." It's one of the last big growth areas in Lakeville.

Here's why it matters now. The city's old plan assumed a bus rapid transit line would run through here. That's not happening anymore. So the city needs a new plan for what goes there.

They hired a team to study it. The answer? Mostly houses and townhomes. Some apartments. And a little bit of retail — but not a ton. Shops and restaurants would go near major intersections, especially close to Grand Prairie Park. That park opens this year.

The area needs sewer lines first. So building will happen in phases. The whole thing could take past 2040 to finish.

Council members said they don't want to lock in too little retail. Shopping habits change fast. They want room to adjust later.

Nothing is set in stone yet. This is early planning. It'll feed into the city's big 2050 plan, which starts soon. Dakota County will also study the 185th Street extension through this area next year.

1,300 Residents Weighed In on Lakeville's Parks — Here's What They Said

The city is writing a new 10-year parks plan. They asked residents what they think. Over 1,300 people answered.

The good news: 82% say our parks are well taken care of. Over 90% feel safe using them. And trails are the clear favorite — 75% of people use them every day or several times a week.

So what do people want more of? Water stuff — splash pads, kayaking, fishing, swimming. Better trail crossings. Indoor space for activities year-round. Cooler, bigger playgrounds.

And the biggest ask by far? A community center.

Parks director Joe Macy said they're still figuring out what that means. "A community center can mean 100 different things to 100 different people," he said.

You can still share your thoughts. There's an online map where you can flag things you like, want fixed, or think need a closer look. It's open through March 31.

There's also an open house at city hall on March 4. And the team will be at the Lakeville Community Expo on March 21.

Lakeville PD: 88% of Mental Health Calls Handled Without Police

Police Chief Brad Paulson gave the Q4 report. One number stood out big time.

The city's crisis response program sent 88% of mental health calls straight to social workers. No cops involved. For the full year, it stayed above 80%. That's 90 calls where someone in crisis got help — not a squad car.

"The person calling did not want the police there," Paulson said. "They get more of what they're looking for. And it frees our staff up."

Other police highlights: DUI arrests are up. Not because more people are driving drunk — officers are just catching more. THC is now the top substance behind impaired driving after alcohol.

And the $25.8 million FiRST Center training facility keeps moving forward. A new building manager starts this week. Five partner agencies have signed on.

The mayor also thanked the department. "The last several weeks have been pretty tough for law enforcement," he said.

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