Planning commission upholds staff approval to convert second-floor commercial space to six-room hotel after appeal

The Planning Commission voted 2–1 to deny three appeals and uphold a Community Development Director approval that allows 2,807 square feet of second-floor commercial space at the Klintner mixed-use project to be converted into a six-room hotel.

The director had approved the conversion on June 6 as a minor revision to an earlier development plan and coastal development permit for the mixed-use project that the City Council approved in March 2024. The approval included supplemental conditions specific to hotel operations, including a 30-night maximum stay limit, required business licensing for a hotel use and transient occupancy tax payment.

Staff told commissioners the proposed hotel use is an allowed visitor-serving use in the CPD zone and V overlay and that it would generally generate a lower parking demand than other commercial uses such as restaurants. The staff report said the conversion would not increase impacts beyond what was considered during the project’s original environmental review, and staff applied the city’s development-plan rules to determine the revision was minor.

Three appeals were filed during the 10-day appeal period (June 6–16): one by Aaron Badoyne, a joint appeal by Andrea Harrison and Robert Rubin Gonzalez, and a third by Karen Aragaki. Appellants raised concerns about loss of community-serving commercial space, insufficient notice and outreach, potential impacts on parking and traffic, and whether the director exceeded authority by approving a change they considered major.

The applicant, identified in the staff report as Justin Klinkner, told the commission he had explored other paths, including housing, and submitted the hotel conversion as consistent with the visitor-serving overlay. “I am following the rules,” he said in his remarks, calling the proposal consistent with the zoning that allows hotels, restaurants and other visitor-serving uses.

Commission debate focused on whether the revision should have been treated as a major change requiring City Council review and whether conversion to visitor lodging contradicts prior public expectations. Commissioner Van Antwerp argued the conversion is consistent with the municipal code and the visitor-serving overlay and that hotel use could require fewer parking spaces than other commercial options; Commissioner Lafeverse said the change was substantial enough to warrant a full development-plan amendment and said more operational details and community benefit analysis were needed. Vice Chair Moyer joined Van Antwerp in voting to deny the appeals.

The roll call vote was: Lafeverse — yes (in favor of appeal), Van Antwerp — no, Moyer — no; motion to deny the appeals and uphold the director carried 2–1.

Ending: The commission’s action leaves the director’s minor-revision approval in place; staff will continue to enforce supplemental conditions required for any future hotel business license and will monitor compliance with occupancy and transient-occupancy requirements.