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Council narrows commercial‑to‑residential conversion pathway, instructs staff to introduce revised ordinance
Summary
Council reviewed two options to streamline conversions of commercial buildings to housing and directed introduction of an ordinance that creates a ministerial pathway for adaptive reuse but excludes hotel/motel conversions from the streamlined process.
Council members reviewed a proposed zone text amendment intended to simplify conversion of existing commercial buildings into housing as part of the city’s housing element implementation. Staff presented two options: Option 1 (includes hotel/motel conversions in the ministerial pathway) and Option 2 (excludes hotels/motels and requires discretionary review in those cases).
Public comment and labor representatives urged caution about making hotel conversions ministerial, citing potential employment and displacement concerns. Jonah Breslau of Unite Here Local 11 recommended Option 2 with language making clear that hotels and motel conversions are not eligible for the streamlined ministerial pathway.
Several council members voiced support for Option 2 because it preserves local oversight and protects Transient Occupancy Tax revenue; others supported Option 1 arguing conversions can expand housing supply and may be appropriate in many commercial zones. Councilmember Erickson offered draft amended language that would explicitly exclude any conversion of an existing hotel or motel to residential uses or a mixed‑use project that dedicates any floor area to hotel or motel use from the ministerial pathway. Staff confirmed discretionary pathways would remain available for conversions that do not meet ministerial criteria.
Council instructed staff to introduce the chosen ordinance on first reading with the clarified language excluding hotel/motel conversions from the ministerial conversion pathway; staff will return with the formal ordinance language. The item was introduced for first reading and will follow the standard ordinance adoption process with further review and final reading as required.
The discussion focused on balancing housing production goals with neighborhood impacts, TOT revenue, and worker protections; councilmembers asked staff to ensure clear standards, waivers and structure retention provisions for adaptive reuse projects.
