Minneapolis officials are pursuing a new ordinance to limit short-term rentals in the city. Council member Steve Fletcher wants to revise city requirements for property owners. Fletcher believes that “airbnbs” drive up rental costs for local residents, among other issues. While the new regulations have yet to be finalized, the real estate parties involved have agreed to address concerns posed by residents and local lawmakers. Sonder, the alternative rentals company, will reduce the number of short-term rental units originally dedicated for the Vicinity apartment complex owned by Sherman Associates - from 94 to 25 units. Sonder recently raised an additional US$225 million to grow its lease arbitrage model which takes on long-term lease agreements with owners, curates and manages the units, and then markets the units at a premium to short-term renters via direct and third-party channels including Airbnb.