A week after indicating they would consider approving shortterm rental licenses for four homes still under construction, the Ouray City Council reversed course Monday, saying granting an exemption to those property owners would be unfair to others seeking licenses.

City Administrator Silas Clarke had included an exemption in a draft resolution outlining new policies governing short-term rentals that would have allowed the issuance of short-term rental licenses to the owners of properties at 736 a...