DATE: August 21st, 2011
TO: Planning Commissioners Irving, Topping, Christianson, Murphy and O'Grady
RE: FILE NO. LRP2009-00005, Proposed Amendments to Coastal Zone Land Use Ordinance Section 23.08.165- Residential Vacation Rentals. Hearing Date: August 25th, 2011.
FROM: Richard L. Watkins
As the third Planning Commission hearing regarding amendments to the Vacation Rental Ordinance approaches, there are a few remaining issues worthy of consideration.
> Oceanfront properties in Cayucos should be granted an exemption from the density standards in Section 1 c. (1) Location. These oceanfront houses have no beach side neighbors, experience high ambient noise from surf and exuberant public beach activity. They also front streets with significant traffic count and few are occupied by full time residents. Many oceanfront houses were grandfathered as vacation rentals, but when the older structures are expensively remodeled or replaced with new construction, they are seldom vacation rented again. This creates another source of attrition, within the most productive sector of visitor serving lodging in the County. An exemption from the density standards is unlikely to result in numerous new vacation rentals in Cayucos. Setting aside existing active rentals, houses with unused licenses, substandard houses, houses used extensively for family vacations and full time residents, the demand for additional vacation rental licenses is not likely to be high. Importantly, oceanfront rentals show strong occupancy year round producing impressive TOT/BID figures while providing a singular experience for vacationers who tend to contribute heavily to the local economy. Even a few additional oceanfront vacation rentals would account for far more visitor serving occupancy than a substantial number of vacation rentals in less prime locations.
> Oceanfront properties in Cayucos should be granted an exemption from the density standards in Section 1 c. (1) Location. These oceanfront houses have no beach side neighbors, experience high ambient noise from surf and exuberant public beach activity. They also front streets with significant traffic count and few are occupied by full time residents. Many oceanfront houses were grandfathered as vacation rentals, but when the older structures are expensively remodeled or replaced with new construction, they are seldom vacation rented again. This creates another source of attrition, within the most productive sector of visitor serving lodging in the County. An exemption from the density standards is unlikely to result in numerous new vacation rentals in Cayucos. Setting aside existing active rentals, houses with unused licenses, substandard houses, houses used extensively for family vacations and full time residents, the demand for additional vacation rental licenses is not likely to be high. Importantly, oceanfront rentals show strong occupancy year round producing impressive TOT/BID figures while providing a singular experience for vacationers who tend to contribute heavily to the local economy. Even a few additional oceanfront vacation rentals would account for far more visitor serving occupancy than a substantial number of vacation rentals in less prime locations.
Note: Oceanfront houses in Cambria share the ambient surf sound, but differ from Cayucos oceanfronts in enough other ways to suggest modifying Cambria oceanfront density standards might pose problems.
> Condominium and Planned Development projects in residential zoning categories of Cayucos deserve consideration for special treatment regarding the density standards in Section 1 c. (1) Location. Avila feels a 50 ft measure from the wall of individual condominium/PD units is fair, but Cayucos has a more complex situation with condos in commercial zoning not subject to density standards and oceanfront condos in which a majority of units are grandfathered as vacation rentals. Home Owners Associations have the ability to ban vacation rentals altogether or set standards that are more restrictive than those contained in the vacation rental ordinance. Why not simply allow the HOAs to regulate their individual common interest developments by creating standards fitting the needs of the owners. If an HOA Board votes to allow all the units to have the option of becoming vacation rentals, that decision should prevail. There are no winners when the County attempts to micro manage HOAs.
> A different means of measuring density standards in Section 1 c. (1) Location is needed for large parcels in both Los Osos and Cambria. Houses on contiguous parcels can be located well over 200 feet apart. For example, where at least one of the parcels in question exceeds a half acre, the distance between house footprints, not property lines, should be used in performing density measurements.
> The staff report regarding "Existing Residential Vacation Rentals (permitted) describes a situation in which a house that is licensed, but not used as a rental, could loose its eligibility for a license, decreasing the number of potential future vacation rentals. Licensed vacation rentals, unused as such at present, could be used as vacation rentals at a later date, either though a change in owner plans or upon a change of ownership. The prevailing motivation for sunsetting unused licensed has always been to allow other houses to obtain licenses. This mechanism would only rarely accomplish that because of supersaturation in prime areas. Net visitor serving lodging opportunities would decrease over time.
> Condominium and Planned Development projects in residential zoning categories of Cayucos deserve consideration for special treatment regarding the density standards in Section 1 c. (1) Location. Avila feels a 50 ft measure from the wall of individual condominium/PD units is fair, but Cayucos has a more complex situation with condos in commercial zoning not subject to density standards and oceanfront condos in which a majority of units are grandfathered as vacation rentals. Home Owners Associations have the ability to ban vacation rentals altogether or set standards that are more restrictive than those contained in the vacation rental ordinance. Why not simply allow the HOAs to regulate their individual common interest developments by creating standards fitting the needs of the owners. If an HOA Board votes to allow all the units to have the option of becoming vacation rentals, that decision should prevail. There are no winners when the County attempts to micro manage HOAs.
> A different means of measuring density standards in Section 1 c. (1) Location is needed for large parcels in both Los Osos and Cambria. Houses on contiguous parcels can be located well over 200 feet apart. For example, where at least one of the parcels in question exceeds a half acre, the distance between house footprints, not property lines, should be used in performing density measurements.
> The staff report regarding "Existing Residential Vacation Rentals (permitted) describes a situation in which a house that is licensed, but not used as a rental, could loose its eligibility for a license, decreasing the number of potential future vacation rentals. Licensed vacation rentals, unused as such at present, could be used as vacation rentals at a later date, either though a change in owner plans or upon a change of ownership. The prevailing motivation for sunsetting unused licensed has always been to allow other houses to obtain licenses. This mechanism would only rarely accomplish that because of supersaturation in prime areas. Net visitor serving lodging opportunities would decrease over time.
> Unlicensed vacation rentals should be targeted by a more effective enforcement program than currently exits. Whatever the County is doing to enforce the vacation rentals license law is not working, as evidenced by the growing number of Internet offerings. A proactive effort by County staff to identify and cite unlicensed vacation rentals is needed, but if that's not feasible, the process should be made far simpler. An online, menu driven system in which a complaint could be filed by a member of the public (identity known only to County), then tracked and resolved in a transparent process, could act as both an effective enforcement tool and a strong deterrent.
The historic role of Cambria as a retirement haven arose from an entitlement/benefit environment unlikely to survive the current economic cycle. Tourism has greater potential as a long term source of economic vitality, but the magnificent geography that provides San Luis Obispo County with unmatched beauty also dictates a need for diverse visitor serving lodging to encourage the necessary travel. The amended Vacation Rental Ordinance to emerge from this lengthy process may be in effect for 10 years, or more. If it fails to accommodate an increase in vacation rentals and their visitor serving lodging contribution that can offset natural attrition in prime, supersaturated areas, the overall well being of these small coastal communities may erode into a bleak future of missed opportunity.
Richard L. Watkins
Richard L. Watkins Real Estate Services
PO Box 211
Cayucos, CA 93430
CDRE # 00897399
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