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HomeMy WebLinkAbout03 - Amending the NBMC to Update Administrative Procedures Related to Good Cause Determinations and the Extension of Deadlines for Short-Term Lodging Permits - CorrespondenceReceived after Agenda Printed March 25, 2025 Item No. 3 PLEASE DISTRIBUTE THESE COMMENTS TO THE PUBLIC AND THE CITY COUNCIL AND ENTER INTO THE PUBLIC RECORD — CITY COUNCIL MEETING March 25, 2025, SECTION VIII. Item # 3. COMMENTS RE.PROPOSED ORDINANCE NO. 2025 Amending the Newport Beach Municipal Code to Update Administrative Procedures re. Short -Term Lodging Permit Mayor Stapleton, Mayor Pro-tem Kleiman and Members of the City Council: I am a member of a group of residents and community leaders who have previously testified to the City in connection with our concerns with the Over -concentration of Short -Term Lodging uses in our dense residential communities. There have been multiple adverse impacts on the Community which have already been memorialized in the record, both with the City and the Coastal Commission. In response to these concerns, a maximum allowable cap of 1,550 STL permits was established. In 2023, with the expressed intent to begin to mitigate, the City Council proposed to reallocate 75 units of the Maximum Cap to Mixed- Use zones and out of Residential zones. At the time, residents and other community stakeholders were encouraged by this direction to restore Housing stock and neighborhood integrity to Residential zones. However, when numerous members of the community inquired as to the need for a specific Plan to ensure the reduction in number of Residential STLs permitted to 1,475 prior to approval of permits for 75 STLs in Mixed Use zones, the City through staff indicated that the reduction would occur through, "attrition", and conceded that such attrition would take "a long time" to occur. Residents and other community stakeholders expressed continued concern, and requested that the Council defer on approval of the Reallocation of units subject to the presentation and vetting of a Plan. The Council disregarded the community's position, and proceeded to approve the Ordinance not subject to such a condition, or direct staff to provide a specific Plan to ensure the feasibility of the reduction. Residents have followed up on numerous occasions with the City Council and staff requesting the Plan, but nothing has been forthcoming to the public. In October, 2024, 1 along with a group of concerned residents once again made a request for empirical information which could provide high confidence that the proposed reduction of STL permits in Residential zones could be accomplished. We attempted to obtain information from staff in various deparments, eg. Community Development and Revenue without response. With growing concern, several residents reached out to our elected representatives to request assistance to obtain information with a 24 month trail, so we could understand if reductions could be reasonably assured from one or more of the following : Revocation ( due to code enforcement or failure to pay for permit); permits closed and not reinstated; or property transfers .We also inquired as to the approximate number of parties on the City's waiting list. We received the following information from City staff: 2 permits suspended, 0 revoked 44 Transfers completed (none known to result in change of property status out of STL permit or use) 3-4 permits "abandoned" or expired 600 properties on Waiting list Staff estimated active STL permits in force at 1547 at that time, but counselled that the permit cycle was as of Oct 31, and that the counts would likely change a bit by November. Staff further represented that none of the proposed 75 STL permits to be allocated Mixed use zones had been considered or issued. SUMMARY: Residents concluded, based on Information provided by the City, that it was NOT FEASIBLE to achieve a net reduction to facilitate the addition of the 75 Mixed use and hold a TOTAL NUMBER OF STL Permits in Residential zones at or less than the allowable Maximum Cap of 1,475, for a total Maximum of 1,550. WITHOUT SOME MODIFICATION OF THE CITY ORDINANCES AND ENFORCEMENT POLICY/PRACTICE. The modifications will likely need to address: • More rigorous consistent enforcement and progression to Suspension and Revoation of permit • Limit allowed Transfers to those of an intra-family nature ( truncate increasing speculation on real estate sale/acquisition to make a quick buck with STL use. • Modification of waiting list application until Residential permits are less than or do not exceed 1,475 and Mixed use permits are less than or do not exceed 75 In the City Council Meeting of March 25, 2025, it is proposed that the Council have a second reading and approve Modifications to the NBMC Ordinances pertaining to STL permits. We object to the proposed modifications, which provide overly broad, sweeping authority to the City Finance Director to administer the STL program and apply discretion to extend deadlines for compliance and City action. • The definition of, "Good Cause" as stated is overly broad an inappropriate. undermines the letter and intent of the NBMC Ordinances pertaining to STLs. Examples in proposed language: "unusual of unforeseen circumstances justifying the taking of a particular action ... a medical emergency; delay caused by events beyond the person's control; a natural disaster;a weather - related delay; an administrative error; or health and safety concerns" • The authority vested in the Dir of Finance/this position to make such determinations is excessive and inappropriate. A Finance Director should not be adjudicating any of these circumstances. • Our City should not invite parties to dodge it regulations which are FOR THE PUBLIC GOOD. We respectfully request that the City Council: • Not proceed to approve such broad delegation of authority to the Finance Director . • Remand the definition of "Good Cause" to be much more narrow, and not to be administered without adequate operational controls. • Direct Staff to provide a specific Plan for making the transition to the reallocations of Residential and Mixed Use WITHOUT EXCEEDING MAX TOTAL of 1,550. ( Note: as of Mar 23, the City reports 1,520 Active Short Term Lodging Permits). We request that such Plan be subject to a Public Hearing and vetted by the City Council prior to any further modifications to the NBMC regarding this issue, and prior to the Coastal Commission submittal and review. Thank you for your consideration. Sincerely, Denys H. Oberman, resident and community stakeholder Cc: Residents and community leaders in impacted areas as defined in testimony and record regarding Short Term Lodging permits and reallocation of uses between Residential and Mixed use within the Total STL cap