Commission recommends Council OK hotel expansion and limited parking reduction, with monitoring

Staff presented a design review, coastal development permit and a recommendation to City Council for a conditional use permit to reduce required off‑street parking by 15% for a hotel at 2020 South Coast Highway. The application seeks to add rooms through interior conversion and exterior modifications; staff reported the parking reduction requested is four spaces and that the applicant submitted a Transportation Demand Management (TDM) plan supporting the reduction.

Planning staff said the TDM measures include guest bicycles, transit incentives and parking fees to discourage on‑site parking. “The necessary supporting documentation is requested, and there is a requirement that they show effectiveness one year and five years from the date of approval,” staff said, describing post‑approval monitoring conditions.

Commissioners scrutinized the practical mechanics of the parking plan. The applicant said the hotel will provide eight guest bicycles with locked storage (interior and a secured side yard) and that a year of 2024 data on paid parking indicates the proposed reduction has been manageable even during peak months. The applicant also explained that a designated rideshare/drop‑off stall would be time‑restricted and signed so it functions as a short‑term pickup/drop‑off during the day and as parking at night.

Commissioners raised concern about an after‑the‑fact paint approval for the building’s darker color; staff acknowledged the city previously approved the color through a staff oversight and included it in the design review scope for a formal decision. Commissioners also discussed the applicant’s decision to pay in‑lieu fees rather than provide on‑site public art; the owners said limited project space and internal decisions drove that choice.

After deliberation the commission voted to adopt the design review and coastal permit and to recommend City Council approve the conditional use permit and coastal permit for the parking reduction with monitoring conditions; the motion passed on roll call with one commissioner voting no on the final motion.

Conditions recorded include requiring the TDM implementation, documentation of the plan’s effectiveness at one‑ and five‑year intervals, signage and operational details for the rideshare stall and bicycle program, and payment of in‑lieu fees for required affordable‑housing/public‑art obligations where applicable.