Planning commission approves rehabilitation of Oak Court Commercial Block, adds one apartment unit

The Carmel-by-the-Sea Planning Commission voted unanimously to approve design review DR24087 and use permit UP25188 for Esperanza Carmel Commercial LLC, enabling a multi-building rehabilitation of the locally significant Oak Court Commercial Block and adding one additional residential unit and an additional retail unit.

Staff reported that the complex ' identified on the historic inventory ' comprises three buildings developed in the late 1930s and early 1940s and that the Historic Resources Board (HRB) found the applicant's plan consistent with the Secretary of the Interior's standards for rehabilitation. The project does not increase building height or overall floor area, and staff recommended approval after the HRB review and incorporation of the HRB conditions into the plans.

Under the approved plan: Building A (the former Cottage restaurant) will be rehabilitated and converted from one restaurant to two retail units at the front and an apartment unit at the back; Building B will add an ADA-accessible public restroom accessed from the inter-block walkway; Building C (the rear apartment building) will convert former office space into residential apartments, reconstruct individual balconies, and eliminate certain exterior stairs. Site improvements include replacement of worn concrete with hexagonal pavers, refurbished brick steps, new landscaping, and partial removal of a wooden dividing fence to improve circulation.

Staff emphasized that the project does not increase required parking and therefore does not trigger additional parking mitigation: the property's existing parking deficit is not increased by the proposed change in uses and number of units. Staff also reported that the project meets unit-mix requirements and other standards required for the retail and residential use-permit findings.

Applicant project manager Joseph Naftel was present and answered commission questions; he told the commission he had "not so much of a presentation... if you have any questions, I can answer them." Commissioners praised the applicant's conservative rehabilitation approach and the thorough staff report. Commissioner Albert singled out staff for thoroughness and noted the work addresses buildings that are "in dire need" of repair and reuse.

The commission adopted the resolution finding the project exempt from CEQA under small structures and historic rehabilitation exemptions, approved the design review and granted the two use permits (residential and retail), all by unanimous roll call.

Next steps: the applicant will proceed to final design and building-permit submittal; staff will monitor required conditions including historic-board items, materials, and any building-code requirements such as fire-protection work at the permit stage.