Costa Mesa extends short-term rental ban, outdoor dining accommodations by a year

Costa Mesa City Council members Tuesday extended a moratorium on short-term rentals for another year, while staffers work out a system to regulate the practice, and extended allowances for outdoor dining implemented to give businesses a boost during the pandemic.

The prohibition against local homeowners renting out properties for periods of fewer than 30 days on sites like Airbnb and Vrbo was initiated in December 2020 in response to numerous resident complaints against “house parties” and their attendant noise and parking problems.

On Tuesday, the council decided one more year would give the city time to develop a comprehensive set of regulations and establish a permitting system that would potentially collect fees or taxes and track bad actors.

Jennifer Le, director of economic and development services, said staff were currently working on other housing-related issues, such as developing an inclusionary housing ordinance and finalizing the city’s updated housing element.

“Our intention… is to finish up the council’s top priorities identified for the next six months and then to immediately begin on some permanent regulations,” she said.

Longtime resident Flo Martin said she supported the moratorium, which helped a residence in her College Park neighborhood known for epic “Animal House” parties clean up its act. But others expressed hope a permanent ordinance would allow the practice, which provides homeowners additional income, to continue.

“This decision…throws the baby out with the bathwater,” said Kyle Circle, whose parents moved to Florida but occasionally return to their erstwhile abode and rent it out in the meantime. “It doesn’t properly communicate what is necessary for homeowners who pay taxes and live in the city to be able to earn some extra income and offset mortgages and other expenses.

Mayor Pro Tem Andrea Marr said the additional time will help city officials strike a balance between the competing needs of residents.

“We will come back, and we will have a more comprehensive set of regulations that we can have a conversation about as a community,” she said.

The extension will expire Nov. 10, 2022.

Also Tuesday, council members agreed to continue two urgency ordinance passed in June 2020 that allowed local business owners to bring restaurant and retail offerings outdoors during the pandemic through 2022. In November that same year, they were extended through Dec. 31, 2021.

The regulations lifted certain requirements to streamline the process during a health emergency, but residents and business owners mostly agree the change has been a good one.

“It was such a lifeline to our restaurant, when we weren’t allowed to have people inside, to have diners outside,” said Tim Taber, owner of Dick Church’s restaurant. “We were able to keep people employed and keep the restaurant going.”

Staff added a provision in the ordinances that would allow Le to revoke or modify approvals in certain circumstances to ensure outdoor offerings were compatible with the surrounding area and minimize impacts.

Council members agreed outdoor dining has been good for the city, encouraging more people to walk or bike ride to local establishments.

“As we look forward to the future of Costa Mesa, what is the picture we want to paint?” asked Councilman Manuel Chavez. “I want to paint a picture of Costa Mesa that’s a lot friendlier to pedestrians. And this is a step in that direction.”

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