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Seaside council asks staff to study commercial vacancy-tax options after public debate
Summary
Councilmembers asked the city manager and city attorney to research how commercial vacancy taxes have operated in other California cities and to return with legal, fiscal and economic analyses; former Mayor Felix Bachoffner and callers urged caution about unintended consequences.
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Councilmembers on Feb. 19 directed staff to study the feasibility and implications of a commercial vacancy-tax policy after a wide-ranging discussion and public input.
Background: The item began as a request to explore whether a vacancy tax could be a tool to reduce long-term commercial vacancies in Seaside and support downtown revitalization. Former Mayor Felix Bachoffner and other callers urged caution, warning that uncertainty about a ballot measure could prompt property sales or rent increases and that some earlier efforts in other cities faced legal challenges.
What council asked staff to do: Several councilmembers requested the city manager and city attorney compile background information on vacancy taxes adopted elsewhere in California (focusing on commercial-only measures), legal risks, economic consequences and design options (e.g., thresholds, exemptions and enforcement). Councilmember Garcia Arizola framed the request as a study to return with comparative analysis rather than immediate placement on the ballot.
Next steps: City staff said they will prepare a study summarizing other cities approaches, legal considerations (including relevant court outcomes) and potential economic impacts, then report back to council for further direction. No timeline for returning the study was set at the meeting.

