City Council

10A. RECONSIDERATION OF A RESOLUTION TO INITIATE A ZONING AMENDMENT RELATED TO THE AMORTIZATION PROCESS OF SHORT-TERM LODGING UNITS, AND REQUEST FOR FURTHER CONSIDERATION OF HOTEL-DEVELOPMENT OPPORTUNITIES FOR ENHANCEMENT OF TRANSIENT OCCUPANCY TAX REVENUE (Agendized by Councilmember Loeffler, with the support of Councilmember Wu and Mayor Pro Tem Enmeier at the June 3, 2025 City Council meeting.) Staff Recommendation Adopt Resolution No. 25-85, which will: 1. Revoke the City Council’s previous direction on May 20, 2025 regarding initiation of a zoning amendment related to the amortization process of short-term lodging units and consideration of hotel-development opportunities for enhancement of transient occupancy tax revenue. 2. Initiate a zoning amendment to increase development potential of hotels and motels City-wide through zoning code enhancements or other special exceptions, beyond the zoning modifications currently contemplated as part of the Gateway Overly. 3. Initiate a zoning amendment to expand the allowed areas or capacities for STLUs, with a focus on non-residential areas, such as mixed-use and commercial zones, and explore opportunities for a limited-term expansion related to the 2028 Olympics or other major regional events in such zones as well as residential zones. 4. Initiate an amendment to the Marblehead Coastal Specific Plan and carry out required environmental review to identify the hotel site on the Outlets property as a landmark building, and “fast track” the process by bringing the item directly back to the City Council for consideration and action. 5. Maintain the status quo in processing applications for short term lodging units (STLU) to short term apartment rentals (STAR) conversions on a first-come, first-served basis in the order in which such applications are deemed complete, not from the date upon which they are submitted and apply current 300-foot minimum separation requirements.