San Clemente council advances zoning work on short‑term rentals and hotel standards; adopts staff plan 4‑1

The San Clemente City Council voted 4‑1 on June 17 to adopt a staff resolution directing city planning work on short‑term lodging units (STLUs) and on development standards for a proposed hotel at the Outlets site.

Adam Matamian, community development director, told the council the package contains five separate staff recommendations: keep the current amortization timetable for nonconforming STLUs, initiate a zoning amendment to increase development potential for hotels and motels, study expansion of where STLUs may be allowed (focused on commercial and mixed‑use zones, not residential), carry out an amendment to the Marblehead Coastal Specific Plan for the outlet hotel, and maintain the city’s current first‑come, first‑served processing of conversion applications. "This item is a reconsideration of an item that was brought to the city council on May 20," Matamian said, and he summarized staff’s revised approach.

Why it matters: the council action preserves the city’s existing end date for amortized short‑term lodging permits but directs staff to pursue new standards and areas where short‑term lodging could be allowed outside residential neighborhoods and to pursue limited, event‑focused temporary options. The initiative also restarts a formal process to define development standards for a hotel at the Outlets (the property previously identified in the Marblehead specific plan), an item that has been the subject of repeated public comment and earlier environmental review addendums.

Council decision and immediate effect

- The council adopted the staff resolution (modified text provided by staff) by a 4‑1 vote. The motion called for initiation of the five work items Matamian described, including revoking the council’s prior direction (from May 20) that would have extended the amortization period for certain STLUs. The resolution language circulated with the meeting materials and a corrected (redline) version in the chamber packet were the documents voted on.

What staff said about scope and counts

- Matamian told the council there are 29 amortized licenses that remain under the code; 10 of those have not been rented short‑term and do not currently pay transient occupancy tax (TOT). He said about 12 STLUs may be candidates to convert to the city’s owner‑occupied STAR permit process, and that staff will retain the city’s existing first‑come, first‑served system for processing conversions: "they're done on a first come first served basis," Matamian said.

Public comment and community concerns

More than a dozen residents addressed the council during the lengthy public comment period. Major themes included neighborhood impacts of STLUs, enforcement concerns, economic and TOT consequences, and opposition to a proposed fifth‑floor rooftop bar at the hotel pad at the Outlets.

- Matthew Flesher (resident) urged the council to "revoke the city council's previous direction on 05/20/2025 regarding initiation of a zoning amendment related to the amortization process of short term lodging units," saying he and his neighbors want residential neighborhoods to remain residential.

- Several Marblehead residents asked the council to delay any decision on a rooftop bar or additional height until story poles are erected and view impacts are photographed from affected homes. David Monk said the council should "table the hotel fifth floor until story poles can be erected to determine the view impact" and recommended photos from specific streets in Marblehead.

- Multiple speakers from Marblehead and Highland Light homeowners associations raised concerns about noise, light and view impacts from a 5th‑floor open‑air bar and asked for more detailed environmental analysis or conditions if the project is pursued. Denise Zavolich and Don Hickman cited photos and elevation comparisons they said showed significant potential view loss and urged stricter review.

- Speakers who operate or support regulated STLUs emphasized the local economic contribution. Tim McGrath and Colby Wright quoted revenue and occupancy figures and warned that other…