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Coachella council removes two‑year STR moratorium at Pyramid Ranch amid owner expectations and staff miscommunication
Summary
Council voted to rescind a condition that had barred short‑term rentals for two years after project completion at the Sevilla 2/Pyramid Ranch development. Staff said the change aligns the project with the city's updated STR ordinance (20% neighborhood cap on annual permits, a five‑permit ownership limit) after earlier miscommunications with the developer and some homebuyers.
The Coachella City Council on March 25 voted to rescind a previously adopted condition that had barred short‑term rentals (STRs) in the Sevilla 2/Pyramid Ranch project for two years following final occupancy.
Kendra Reeve, community development director, said the restriction was originally adopted in October 2023 as condition number 75. Staff recommended removing that specific two‑year restriction so the project would instead follow the city's updated STR ordinance (Ordinance No. 1222), which includes an annual neighborhood cap of 20% for regular STR permits and a five‑permit ownership limit per owner; seasonal permits are not counted toward the 20% annual cap.
Reeve told the council the request responds to miscommunication between prior staff and the developer; some buyers were told they could operate STRs under prior conversations. "If the council approves the removal, the development will be regulated by the city's current STR rules," Reeve said.
Public commenters urged caution, arguing that a new community partially financed with affordable‑housing or grant sources should not quickly convert units to transient lodging. One commenter said allowing too many STRs would create a hotel‑like environment rather than a residential neighborhood.
Council members discussed enforcement and complaint processes, notification to neighborhoods as the 20% cap is approached, and possible outreach and education for residents on the code enforcement and administrative citation process. Staff said code enforcement and the city's rental‑registration enforcement officers would receive training and that the city has complaint reporting channels on its website.
Council voted to adopt the modified resolution rescinding the two‑year restriction and applying the project's STR regulation to the updated city ordinance; the council also directed staff to return with clarifying ordinance language for campgrounds and transient occupancy where necessary.
