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Atascadero council introduces ordinance to regulate extended-stay hotels, adopts 3% administrative fee
Summary
The council introduced an ordinance to create a new “extended occupancy” hotel/motel land use, establish an administrative-use-permit process, limit certain long-term-stay features and adopt a 3% ongoing fee; the motion passed unanimously on first reading.
Atascadero City Council on a unanimous vote moved to introduce an ordinance to define and regulate extended-stay hotels and motels and adopted a companion resolution establishing a 3% administrative fee on those units.
City planning staff told the council that the change is meant to address an increase in hotel stays that exceed 30 days and the resulting loss of transient-occupancy tax (TOT) revenue. Community Development Director Phil Dunsmore said the proposed code changes would create a new land use category—an “extended occupancy hotel, motel”—and an administrative use-permit process with standards, limits and penalties recorded against the property.
Dunsmore summarized the policy rationale: “When these days do exceed that 30 days, essentially, what that is is an apartment building. It’s something that really is a different animal. It’s a different land use, and we have to acknowledge that.”…
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