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
Consideration of Temporarily Allowing Short-Term Rentals Citywide During the 2026 FIFA World Cup and 2028 Summer Olympic/Paralympic Games (Not Budgeted) (Community Development Director Alkire).
(Estimated Time: 1 Hr.)
DISCUSS AND PROVIDE DIRECTION
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RECOMMENDATION:
Staff recommends that the City Council provide direction on whether to proceed with drafting a temporary ordinance with a sunset clause to allow short-term rentals (STRs) citywide in preparation for the 2026 FIFA World Cup. If directed to proceed, additional input is needed on: 1) the specific timeframe for which STRs would be allowed; and 2) operational requirements that should be included to address potential concerns.
FISCAL IMPLICATIONS:
The fiscal implications associated with this item are limited to expenditure of staff time in preparing the staff report, drafting the proposed amendments, and coordinating with other Departments to ensure the program is implemented as intended, if the City Council chooses to proceed with temporarily allowing STRs citywide. 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.
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 $73 Zoning Business Review Fee and the current base tax of $303.28 (plus $2.71 per $1,000 in excess of the first $88,562 of gross receipts), which are all subject to Consumer Price Index (CPI) increases for 2026. ...
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