Solvang council directs staff to draft short‑term rental rules focused on downtown VMU; sets limits, notifications and enforcement priorities

City planning staff returned to the Solvang City Council with two draft approaches for updating the city’s 2015 vacation rental rules: one that would allow short‑term rentals only in the Village Mixed Use (VMU) district, and another that would permit them more broadly with restrictions. Rafael Castillo, the staff presenter, said permitted short‑term rentals are concentrated in the VMU and that advertised but unpermitted listings appear citywide.

The council discussed tradeoffs including housing preservation, neighborhood impacts and businesses’ concerns. Rafael Castillo summarized options and implementation details: neighborhood notification handled by staff, property‑line minimum distances, permit caps, minimum stay requirements, and handling of homestays. He noted the 2015 code treated some multi‑unit properties inconsistently and that the proposed drafts would clarify definitions so hotels, multi‑unit rentals and single‑house short‑term rentals are treated distinctly.

Council direction and key elements: Councilmembers coalesced around directing staff to prepare an ordinance that would:

- Limit new short‑term rental permits to the Village Mixed Use (VMU) zone rather than allowing citywide residential permits; existing permitted units in R‑3 would not transfer on sale. - Establish a cap on VMU short‑term rental permits (council indicated a preference near 30 permits as a starting point). - Require staff‑run neighborhood notices to properties within approximately 300 feet of a proposed short‑term rental and include required on‑site parking and permit information in the notice. - Add a minimum stay requirement; council discussion favored a 30‑night minimum as the working number. - Exclude homestays from the short‑term rental program (council indicated no homestays in the VMU permitting approach). - Strengthen enforcement tools, upgrade administrative citation procedures and evaluate criminal citation options where appropriate, and procure monitoring software to identify advertised unpermitted listings.

Staff and legal teams also told the council that accessory dwelling units (ADUs) and junior ADUs remain excluded from short‑term rental use under current state and local guidance; the staff presentation noted state ADU rules generally promote long‑term housing and local incentives encourage that outcome.

Public comment split along commercial and neighborhood lines. Tracy Beard, representing local business interests, urged caution and said the business community felt the city should study the economic effects on hotels and restaurants before broadening short‑term rental allowances. Beard said, “This is a very poor decision within the hotels in our restaurants,” and asked for more outreach and clarity for residents and businesses. Several councilmembers responded that limiting permits to VMU helps concentrate tourist lodging downtown and preserve other neighborhoods for longer‑term housing.

Enforcement and next steps: Staff said they will prepare draft code amendments and an implementation timeline, including six months for software procurement, permit processing and public notice to existing operators. Legal and administrative staff told the council they are revising the city’s citation provisions and fine schedules so enforcement will include stronger administrative and, where appropriate, criminal citation options.

Ending: Councilmembers asked staff to return with a proposed ordinance and implementing regulations reflecting the directions above; no ordinance was adopted at the meeting and staff will present a formal draft for future council consideration.