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Planning Commission Approves Motel Conversion on PCH with Conditions, Including Annual Rate Reporting
Summary
After hours of debate over traffic, staffing and short‑term rental policy, the Planning Commission approved a change of use and conditional‑use permit to convert an existing multifamily short‑term rental property into a 9‑room motel; the resolution requires parking controls, noise limits, a manager's office and an annual room‑rate report tied to LIP 12.10.
The Malibu Planning Commission on Dec. 1 approved Coastal Development Permit 23‑040 and Conditional Use Permit 21‑008 to convert an existing multifamily structure used as short‑term rentals into a motel and require the front commercial building to operate as an ancillary manager’s office.
Staff told commissioners that the property is in the CV‑1 zone and that motels are permitted in that zone with a CUP. Staff presented a room‑rate analysis showing a median nightly rate across six local hotels of $616; the LIP defines a "luxury" threshold at 120 percent of the median (here calculated as $740 per night). The applicant told the commission the proposed motel’s average nightly rate would be $415, which staff said places the project below the luxury threshold and therefore not subject to the affordable‑unit requirement in LIP section 12.10.
Commissioners debated multiple conditions to address neighborhood impacts and the broader short‑term rental policy. Key outcomes included:
- A condition requiring the commercial structure fronting Pacific Coast Highway to operate as the motel manager’s office; if it stops operating as the manager’s office, an amendment to the CDP is required.
- Parking controls: the property owner and operator may not use the parking lot for activities other than uses explicitly permitted by the CUP; if required parking is not provided on site, the owner must prepare an off‑site parking plan to the satisfaction of the planning director.
- Noise and events: amplified outdoor sound is prohibited; noise emanating from the premises is subject to the city noise standard (plainly audible at 5 feet from any residential unit between 10 p.m. and 7 a.m.). Special events would require a temporary use permit.
- Management and enforcement: the operator must provide a 24/7 contact and comply with inspection and compliance conditions; staff will inspect as needed to verify compliance with conditions.
- Annual rate reporting: the resolution requires the applicant to submit an annual motel‑room rate report to the Planning Division (first quarter each year). If staff determines reported rates exceed the LIP luxury threshold described in LIP 12.10, the matter must be reevaluated by the Planning Commission at a public hearing.
Commission debate addressed whether the city could, or should, attempt to regulate room rates directly; the city attorney and staff advised against fixed price caps and proposed a reporting/trigger approach to preserve legal compliance while allowing the commission to review cases where advertised rates approach the luxury threshold.
The motion to adopt Planning Commission Resolution No. 2,562 as amended (including the annual reporting requirement) passed on a roll‑call vote; Vice Chair Mazza recorded the lone no vote.
