Planning commission recommends council allow vacation rentals in downtown mixed‑use district with 50% per‑building cap

The City of Redding Planning Commission voted to recommend that City Council adopt amendments to the short‑term rental ordinance to allow vacation rentals in the Downtown Mixed Use District, subject to an amendment from the commission limiting the share of units in any single building used as vacation rentals to no more than 50 percent.

Commissioner Grama, who presented the item, said the proposed revisions respond to property‑owner requests to allow vacation rentals in apartment units and duplexes in the mixed‑use area. "We saw over a number of years, sort of year‑over‑year doubling of the number of short‑term rentals," Grama said, summarizing the policy history that led to current regulations and the 600‑foot buffer rule adopted in prior amendments.

The nut graf: Staff proposed allowing vacation rentals in downtown mixed‑use areas to support downtown economic vitality while preserving the 600‑foot buffer where the mixed‑use district abuts single‑family zones (specifically the Garden Tract). The Planning Commission added a per‑building cap (50 percent of units) to address commissioner concerns about wholesale conversions of apartment buildings to short‑term rentals and potential loss of workforce housing and parking impacts.

Staff described the proposed code changes as four main components: (1) allow vacation rentals in apartment units and duplexes in the Downtown Mixed Use District (DMUD) and Downtown Core (DCD) area; (2) clarify that density restrictions and off‑street parking requirements are not applicable in the core but would be applied in the mixed‑use district only where parcels are adjacent to single‑family zoning; (3) allow reduction of the 600‑foot buffer to 300 feet in cases where an open‑space easement or other qualifying buffer exists; and (4) technical clean‑up items including terminology changes and references to the Government Code for accessory dwelling units.

Staff said the EIR/CEQA determination for this amendment is that it is not a project under CEQA. The staff report and mapping show the buffer applied specifically where the mixed‑use district abuts the Garden Tract single‑family neighborhood; that map also shows many Garden Tract parcels already hosting short‑term rentals as legal nonconforming uses (permits issued before the buffer rule). Staff told the commission the city is not near its 400‑unit citywide cap for short‑term rentals; staff estimated about 150–170 permitted short‑term rental units currently.

Commission discussion centered on housing and parking impacts. Several commissioners voiced concern that allowing conversions of entire apartment buildings could remove existing market‑rate workforce housing. Commissioners suggested policy options including limiting the percentage of units per building that may be converted, applying limits per block, or otherwise restricting density. One commissioner described experience in which an entire building's upstairs apartments were operated as short‑term rentals and said the change removed affordable units and pressured on‑street parking.

Commissioner Balkovec proposed — and a colleague seconded — a motion recommending council adopt staff changes with an amendment that no more than 50 percent of units in any one building in the mixed‑use district be used as vacation rentals; the commission approved the recommendation unanimously (6–0, Chair Minor absent). Planning staff and the city attorney said the motion's language is sufficient for staff to implement without returning to the commission for further refinement; Council action is required for the ordinance to take effect.

Ending: Because zoning text amendments are legislative, City Council will hold public hearings and take up first and second readings. If council adopts the ordinance, staff said the ordinance would become effective 30 days after the second reading. The commission's recommendation includes the 600‑foot buffer next to the Garden Tract, a possibility to reduce buffer to 300 feet where an open‑space easement exists, and a staff‑recommended cleanup of terminology and parking references; Council will consider the commission's 50% per‑building cap during the legislative process.