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SR-092308-6CCity Council Meeting: September 23, 2008 Agenda Item: ~~° To: Mayor and City Council From: Eileen Fogarty, Director of Planning and Community Development Department Director Subject: Revised Conditions to Address Low Cost Lodging Accommodations and Air Rights Privileges for Pedestrian Bridge Associated with the Proposed Travelodge Hotel. Recommended Action City Council adopt revised condition #8 regarding low cost lodging accommodations and add condition #64 regarding right-of-way privileges related to the proposed pedestrian bridge. Executive Summary Staff recommends a modification to a proposed condition of approval for the Travelodge Hotel. Condition #8 within the proposed Draft City Council Statement of Official Action (Attachment C to the September 9, 2008 Staff Report) has been further refined and reevaluated to more effectively implement the City policies and existing ordinance relative to low cost lodging within the coastal zone. The key provisions are: 1) Hotel must be affordable at time of opening; 2) Hotel will be monitored yearly for compliance; and 3) At such time as the hotel is not in compliance the hotel will be required to pay the fee to the City. Additionally, should the Council approve a pedestrian bridge across the alley, a condition is recommended to require the Applicant to negotiate and pay for air rights privileges with the City prior to issuance of a building permit. Discussion Staff. recommends a modified condition to replace Condition #8 and the addition of Condition #64 in the proposed Statement of Official Action for the Appeal of Planning Commission's Certification of Environmental Impact Report, and adoption of a Statement of Overriding Considerations (SOC) and approval of Development Review 1 Permit, Conditional Use Permit, Variance and .General Plan Amendment for the construction of a new 164-room Travelodge Hotel at 1515-1525 Ocean Avenue and 1530 Second Street. Low Cost Lodging Accommodations Ordinance No. 1516 (CCS) was adopted by the City Council in 1990 to help preserve low cost lodging accommodations with the City's coastal zone. Ordinance No.1516 requires a mitigation fee to mitigate removal of low cost lodging accommodations within the Coastal Zone. .The project proposes to replace the low cost lodging accommodations that are being removed and, therefore, fee payment is not anticipated at this time. Condition #8 was. initially intended to ensure that the replacement hotel rooms remain affordable. Upon further consideration of the low cost lodging accommodations issue, and with input from the applicant and his legal counsel, Staff recommends that Condition #8 be revised to more appropriately and effectively implement the provisions of Policy 35 of the City's Land Use Plan of the Local Coastal Program and Ordinance No. 1516 (CCS) as compared to the previously worded condition. To clarify that the City is approving the Travelodge Hotel as a low cost lodging facility which replaces the existing seventy seven rooms previously identified by the City in 1989 as low cost lodging, the modified condition requires an annual. report to the City to verify that these rooms have not been removed. The revised condition stipulates that should any of the low cost rooms cease to be low cost lodging, including if the room has become higher cost lodging or converted to another use, the Applicant shall pay a mitigation fee pursuant to Ordinance 1516 (CCS) requirements. Revised Condition #8: The City is approving this project as a low cost lodging facility which replaces the existing seventy-seven (77) rooms previously identified by the City in 1989 as low cost lodging. The current (2008) average daily room rate for low cost lodging is 2 $172.27, a rate which is subject to annual adjustment in accordance with the formula contained in Section 5(c) of Ordinance No. 1516 (CCS). Applicant shall designate the seventy-seven (77) rooms in the project which constitute the replacement low cost lodging and shall report the average daily room rate for each of these rooms and the use of these rooms on an annual basis, with the first report due one year after the Certificate of Occupancy is issued for the Project. In the event that any of these rooms cease to be low cost lodging, including if the room has become, higher cost lodging or converted to another use, Applicant shall pay a mitigation fee for that room(s) in accordance with Ordinance 1516 (CCS) or any successor ordinance, based on the fee in effect at the time of payment. Air Rights Privileges for Pedestrian Bridge The City would have to enter into an air rights agreement to allow the proposed structure to extend over the public right of way and connect the two hotel buildings by way of a one level or multi-level bridge. Should the Council approve a pedestrian bridge, the following condition is recommended: Revised Condition #64: Prior to the issuance of a building permit, the Applicant shall negotiate and enter into an agreement for payment of air right privileges for construction of a pedestrian bridge across the alley. Prepared by: Paul Foley, Principal Planner Approved: Forwarded to Council: ~Eile~nFo a \° P ont Ew 9 Director, PI Wing d Co nity ~ Manager Development Departure 3 Reference Resolution Nos. 10345 (CCS), 10346 (CCS), and 10347 (CCS). Additional attachments available for review in City Clerk's Office.