TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Masa Alkire, AICP, Community Development Director
Adam Finestone, AICP, Planning Manager
Jaehee Yoon, AICP, Senior Planner
SUBJECT:Title
Conduct a Public Hearing to Consider Temporarily Allowing Short-Term Rentals Outside of the Coastal Zone During the 2026 FIFA World Cup (Not Budgeted) (Community Development Director Alkire).
(Estimated Time: 1 Hr.)
INTRODUCE ORDINANCE NO. 26-0001
Body
_________________________________________________________
RECOMMENDATION:
Staff recommends that the City Council consider introducing Ordinance No. 26-0001, allowing short-term rentals (STRs) on a temporary basis outside of the Coastal Zone in preparation for the 2026 FIFA World Cup.
FISCAL IMPLICATIONS:
The fiscal implications associated with this item are limited to expenditure of staff time in preparing the staff report, drafting the proposed ordinance and coordinating with other Departments to ensure the program is implemented as intended, if the City Council chooses to adopt Ordinance No. 26-0001. Additional revenues generated by temporarily lifting the ban outside of the Coastal Zone may provide opportunities to fund City services needed to manage event-related impacts to public safety, sanitation, and traffic management, as well as offset the added administrative and processing costs from additional STRs.
STR operators are required to obtain a business license and collect and remit the City's 14% Transient Occupancy Tax (TOT) from visitors. To obtain a business license, an operator must pay a one-time $76 Zoning Business Review Fee and the current base tax of $313.88 (plus $2.80 per $1,000 in excess of the first $91,661 of gross receipts). The Zoning Business Review Fee is based on cost recovery and not subject to proration.
Without concrete metrics at this time, it is difficult to project the potential increase in business license tax and TOT revenues...
Click here for full text