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Planning commission reviews proposed Oceanfront STR boundary shrink and limits on using city garage parking
Summary
Staff briefed the commission on a City Council referral to redraw the oceanfront short-term rental overlay and to bar STRs from leasing city-owned garage spaces to meet parking requirements; commissioners requested more public outreach and time to review the boundary and parking impacts before forwarding a recommendation.
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Staff presented a City Council referral asking the Planning Commission to consider shrinking the Oceanfront Resort overlay that allows short-term rentals (STRs) and to prohibit STRs from leasing spaces in city-owned parking garages to meet their minimum on-site parking requirements.
Hannah Sabo, zoning administrator, said the proposed boundary would remove roughly 50 compliant STRs from the overlay while leaving those 50 grandfathered so they may continue to operate under existing CUP conditions; the change would also close a pathway for currently noncompliant STRs outside the new boundary to later apply for a conditional-use permit. Sabo said the policy change is intended to reduce neighborhood impacts from the proliferation of STRs in the resort area and to preserve housing stock.
Commissioners asked staff how the new boundary was drawn, how many compliant and noncompliant units would be affected and what grandfathering would allow. Several commissioners said the change deserved robust public outreach and more time for review because the overlay affects property values, long-term owners and renters and because parking policy intersects city-owned parking assets. Commissioner concerns included whether the Boston-style or other transit definitions could pull parts of the city into reduced parking standards and whether leases of municipal garage spaces by STRs should be restricted now or phased out over time.
Staff said about 331 compliant STRs existed in the larger current boundary and that December 2025 enforcement data showed additional noncompliant listings; they recommended further briefings to design a boundary and parking restrictions that are administrable and defensible. Staff also noted enforcement challenges with noncompliant STRs and said grandfathered CUPs would be restricted (no expansion beyond 25% of dwelling or 1,000 square feet; loss of grandfathering if not used as an STR for two years).
Commissioners did not vote on a recommendation but asked staff to return with a draft ordinance and to widen public engagement before the July 20 council deadline for a Planning Commission recommendation. The commission requested additional briefings to Old Beach and the design-review committee and asked staff for legal clarifications on use and parking enforcement.

