A short-term rental case involving the city of Sedona may be heading to the Arizona Supreme Court.

At issue is a lawsuit filed against the city of Sedona by owners of Sedona Grand LLC, a property off Jasper Court in the Las Lomas subdivision of West Sedona.

The lawsuit doesn’t directly challenge the city’s ban on short-term rentals per se. Instead, Sedona Grand argues the city’s ordinance is not exempt from Proposition 207, which requires governments to reimburse private property owners when new land use laws reduce “the existing rights to use, divide, sell or possess private real property.”

The city of Sedona successfully defended its ban of short-term rentals in superior court. However, the appeals court recently overturned the lower court’s ruling, remanded portions of the ruling and set up a possible appeal to the Arizona Supreme Court.

For the full story, see the Friday, June 22, edition of the Sedona Red Rock News.