The Evanston City Council on Jan. 12 introduced Ordinance 2‑O‑26, a rewrite of the city’s short‑term (vacation) rental rules, after extended debate and several amendments. The ordinance was introduced as amended by an 8–1 vote and is scheduled to return for final action at a later meeting.

Key changes adopted during the council discussion include: increasing the citywide ratio denominator from 80 to 100 (the working ratio used to limit the number of short‑term units citywide), changing the minimum separation between short‑term units from 300 feet to 600 feet, and narrowing the allowed distance for an offsite property manager from 10 miles to 3 miles. Staff and councilmembers also discussed grandfathering rules for previously approved licenses, notice procedures for neighbors and how to distinguish furnished month‑to‑month rental units from short‑term vacation rentals.

Planning and development staff provided technical background: they reported approximately 135 previously identified short‑term units and that 78 of those are currently licensed; staff said they had identified about 57 unlicensed but known short‑term units. Council members debated the tradeoffs between resident‑owned (owner‑occupied) short‑term rentals and investment properties, and several members urged stronger dispersal measures to avoid concentration of short‑term rentals in particular wards.

Corporation counsel noted a pending legal challenge in another Illinois municipality and advised the council that a rule restricting ownership to Evanston residents would be harder to defend than a mileage‑based manager‑proximity limit; council renamed the classification in the ordinance “short‑term rentals” for regulatory clarity.

The ordinance as amended is now introduced; staff and council indicated they expect more technical revisions and a final vote in a future meeting after public notice and any additional drafting.