Buellton council introduces ordinance to revert Avenue of Flags motel units to short-term rentals; first reading approved 3-1

Buellton City Council on Aug. 14 took initial action to change how long-term occupants of certain motels on the Avenue of Flags are regulated, approving the introduction and first reading of Ordinance No. 25-06 with amended deadlines.

The ordinance would amend Buellton Municipal Code provisions to require that units originally developed as motels be rented only on a short-term basis (less than 30 days) and that transient occupancy tax (TOT) be collected on those units. The council voted to introduce the ordinance as amended on the record; the motion passed 3-1 with Vice Mayor Lewis, Councilmember Hornick and Mayor Silva voting yes and Councilmember Sanchez voting no (one councilmember was absent for the vote). The council directed staff to return the ordinance for a second reading at the council's first meeting in September.

City Manager Scott Wolf told the council the proposal is intended to remove an obstacle to reinvestment and redevelopment along the Avenue of Flags. Wolf said motel units that had been used as long-term residences were treated by state law as housing units (single-room-occupancy or SRO) and, without replacement housing, were effectively protected from removal. To address that, the city has participated in affordable housing projects and used approximately $340,000 from the city’s affordable-housing in-lieu fund to support the Polo Village Apartments; Wolf said 14 family units moved from motel units on the Avenue of Flags into Polo Village.

The draft ordinance has two main components: a zoning change and a taxing/regulatory change to require TOT collection. Wolf said the planning commission reviewed the item and recommended…