02 2
ECONOMIC IMPACT OF TOURISM REPORT FOR 2023
March 18, 2025
3 Prepared for Travel Costa Mesa•Received report 4th QTR 2024 for calendar year 2023 •Last report 2017•Quantify the significance of tourism within the city
KEY ECONOMIC IMPACT
VISITOR SPENDING$883MTOTAL ECONOMIC IMPACT$1.1B GENERATED STATE & LOCAL TAXES$50.2MTOTAL JOBS8,421 4 VISITOR VOLUMEYEAR-OVER-YEAR CHANGE
MMMM
5 VISITOR VOLUME BY MARKETYEAR-OVER-YEAR CHANGE
6 DIRECT VISITOR SPENDYEAR-OVER-YEAR CHANGE
*Visitor Spending10% Above Pre-Pandemic Levels
*
7 DIRECT VISITOR SPENDING
8 DIRECT IMPACTSVisitor spending creates direct economic value within group sectors (retail, entertainment)INDIRECT IMPACTSEach sector purchases goods/services (utilities, food wholesalers)INDUCED IMPACTSEmployees who earn wages from visitor spending use their pay in the local economy 3 LEVELS OF IMPACT CALCULATED
9 ECONOMIC IMPACT FINDINGS-Direct Visitor Employment2023 was the 1st year direct visitor employmentsurpassed 2019 levels 10 BUSINESS SALES IMPACTS
SUMMARY ECONOMIC IMPACT 2023IN MILLIONSSALES IMPACT BY INDUSTRY 2023TOP 5 IN MILLIONS Outside of direct impacts, significant benefits accrued insectors that include:-Finance-Insurance- Real Estate & business services 11 JOBS IMPACTS
Employment-Number of Jobs 2023Job Impacts by Industry 2023Top 6 by Industry 12 LABOR INCOME IMPACTSSUMMARY LABOR INCOME IMPACT 2023IN MILLIONS 7 industries in which visitor activity supports more than $10 million in personal income.
SALES LABOR INCOME IMPACTS BY INDUSTRY 2023TOP 7 IN MILLIONS 13 TAX IMPACTS
Each household in Costa Mesa would pay an extra $1,212 in taxes to replace the visitor taxes collected by state and local government.100% of transient occupancy tax (only hotel guests pay this) goes directly into the city’s general funds. 14 15
Thank you!
@TravelCostaMesa
Don’t Forget to Follow Us!
City Council Meeting
March 18, 2025
Statutory Accessory Dwelling Unit
Ordinance Amendments
2 Accessory Dwelling Unit (ADU) Ordinance Update
• California Government
Code ADU regulations
recently changed
• Recent State changes
are inconsistent with
current City ADU
provisions
• California Department of
Housing and Community
Development (HCD) sent
a letter requesting
modifications to City ADU
provisions
• Requires ADU Ordinance
update
3 What is an Accessory Dwelling Unit (ADU)?
• ADUs are small housing
units on residential
properties that provide
for additional housing in
California.
• ADUs are accessory to
the main unit but serve
as individual housing
units (can be rented).
• Previously called
“granny flats” or “guest
houses”.
4 City ADU Ordinance History
• 2019 Urgency
Ordinance
• ADU Ordinance No.
2021-03
• ADU Ordinance No.
2023-03
• Planning
Commission Study
Session(Jan 27) and
Recommendation
(Feb 24)
5 Proposed Code Amendments
• State ADU changes (SB
477, SB 1211, & AB 2533)
require local ADU Code
update regarding ADU
density, size, parking and
development standards
• Consistency and
clarification per HCD
Letter
• Public Comment from
California Housing
Defense Fund
6 Changes to the Number of Allowed ADUs
Existing Maximum
ADUs
Proposed Maximum ADUs
Single-
Family
Dwelling
Properties
• 1 ADU
• 1 JADU
• 1 conversion ADU
• 1 JADU
• 1 detached/attached ADU
Multi-
Family
Dwelling
Properties
• 2 detached ADUs
• No ADUs within new
construction
• ADUs converted
from non-livable
space up to 25% of
the existing units
• 8 detached ADUs*
• 1 ADU within new construction
• ADUs converted from non-livable
space up to 25% of the existing
units
*Provided ADUs do not exceed the number of existing units. One ADU can be attached. 7 Multi-Family ADU Square Footage
Current Maximum Size Proposed Maximum Size
Multi-Family
Dwelling Properties
Detached – 800 SF per ADU
if more than one ADU is
proposed. Otherwise, 1,200
SF for one ADU.
Detached – 850 SF or 1,000
SF for an ADU with more
than 1 bedroom
Attached > of, 1000 SF or
50% of average existing
residence size
No Changes
Conversions – No Maximum No Changes
8 Types of ADUs Exempt From Local Standards
Single Family Development:
• ADUs and JADUs that are converted from existing floor area and accessory structures
• Detached ADU less than 800 SF with:
o Four-foot side and rear setbacks
o 18’ Height (plus 2 feet to align with roof of main building Multi-Family:
• ADUs that are converted from existing floor area and accessory structures
• Detached ADUs with:
o Four-foot side and rear setbacks
o Less than 18’ Height (plus 2 more feet to align with roof pitch of main building)
Safe ADU Legalization Program:
• Unpermitted ADUS built prior to Jan 1, 2020, may seek legalization. 9 Objective Design Requirements
• All standards must be
objective.
• Attached and detached
ADUs shall match
materials, finishes and
colors of main residence.
• All converted units are
State exempt and
therefore are subject to
minimal standards.
(Garage conversion
standards are now
recommendations that
cannot be enforced).
10 Parking Space Removal for ADUs
• Existing: Garages and
carports may be
removed to make room
for ADUs.
• Proposed: Any parking
space including
garages, carports, or
open parking may be
removed to make room
for an ADU.
11 Short Term Rentals (STRs)
• HCD’s letter requested that City allow short-term rentals (STRs) in JADUs.
• A potential challenge is that JADUs used as STRs, will reduce the number of long-term housing units available to residents in the City.
• The City may adopt an ordinance without the requested changes if findings are explaining the reasons why the City believes that the ordinance complies with State ADU law. 12 New “Pre-Approved ADU Program”
City’s “pre-approved ADU
designs” to be available
soon on City website
• Building Dept. currently
reviewing plans
• Faster processing times
and cost reduction
• Plans available end of
spring/early summer 2025
13 Noticing and CEQA
• Public Notice published in the Daily Pilot on March 1, 2025. • Exempt CEQA pursuant to PRC Section 21080.174 and CEQA Guidelines Section 15282(h), “the adoption of an ordinance regarding second units in a single-family or multifamily zone by a city or county to implement the provisions of Sections 65852.1 and 65852.2 of the Government Code” relating to “granny” housing and “second unit ordinances” are exempt from the requirements of CEQA.
Recommendation and Alternatives
1. Find that the project is exempt from the provisions
of the California Environmental Quality Act (CEQA)
pursuant to Public Resources Code Section
21080.174 and CEQA Guidelines Section
15282(h); and
2. Introduce for first reading, by title only, Ordinance No. 2025-XX approving Code Amendment PCTY-
24-0002, amending Title 13 of the Costa Mesa
Municipal Code (CMMC) pertaining to ADUs to
conform to recent revisions to State law.
14 City Council Meeting
March 18, 2025
695 W 19th Street (Site of Senior Center)
Senior Affordable Residential Development
2 Project Background
• 2008: Costa Mesa includes Senior Housing in the 4th Cycle Housing Element • 2016: The City includes Senior Housing in the 6th Cycle Housing Element • 2020 - 2021: COVID-19 pandemic occurred; project focus shifted due to managing pandemic
• July 2020: Exclusive Negotiating Agreement with Jamboree Housing Corporation (JHC) is adopted
• 2022 - 2023: JHC and City staff continue to meet to discuss proposed project • February 2024: City Council Urban Master Plan screening • July 2024: Option to Lease Agreement (OPL) approved by City Council • May 2024: Urban Master Plan application submitted
• December 2024: Planning Commission recommended City Council approve the project
3 19 West Urban Plan
• Intent of Urban Plan allow opportunities for live/work and residential development in Westside Costa Mesa
• Allows for horizontal and vertical mixed-use developments • Objectives of the Urban Plan includes new housing types to satisfy a diverse residential population and providing well designed and integrated urban residential development
• Original plan for Senior Center site in the early 1990s included a residential component
• Senior Center property has been identified as a housing opportunity site in the Housing Element since 2008
4 Project Location
5 Request
• Tentative Parcel Map 2023-160
• Master Plan with Density Bonus
• Affordable Housing Agreement and Affordable Housing Plan • Disposition and Development Agreement (including a Regulatory Agreement) and Ground Lease
• City Financial Assistance/Loans
6 Tentative Parcel Map 2023-160
Parcel 1 (1.16 acres): Senior
Center
Parcel 2 (1.50 acres): proposed
senior housing project
Parcel 1 Parcel 2
7 Master Plan
o 70 affordable units (35 low-income, 34 very-
low income, and one manager’s unit.)
o 1.44 Floor Area Ratio
o 57’-6” (4 stories) building height
o Fitness room, library/computer room,
pet spa and dog run
o 59 parking spaces under podium –
40 reserved for housing development
8 Site Plan
W. 19th Street
Pomona Avenue
Plumer Street
9 Ground Floor
10 2nd Floor
11 3rd Floor
12 4th Floor
13 Density Bonus
• State Density Bonus Law and Costa Mesa Municipal Code. • No increase in number of units.
• State Density Bonus law permits 100-percent affordable projects to be entitled to five concessions and an unlimited number of waivers from development standards. JHC is requesting four concessions.
Development Standard Urban Plan Standard DBL Concession Open Space – Development Lot 30% (19,619 SF) 5.04% (3,297 SF) Residential Open Space 200 SF (14,000 SF) 169 SF (11,857 SF) Front Setback along W. 19th St. 15 FT 0 FT 6 IN
Parking Stall Width next to Column 1-foot additional1 0 foot 1 Pursuant to the City of Costa Mesa Parking Design Standard Parking
15 Parking Management Plan
• A Construction Parking Plan will maximize the number of onsite parking spaces during construction.
• During construction, a Parking Management Plan will be implemented to ensure accessibility to the Senior Center by Costa Mesa seniors.
• Jamboree has entered into a partnership with FC Parking, a Certified Parking Professional company, to provide both valet and shuttle service to and from the Senior Center.
• Once construction starts, Jamboree, the City, and FC Parking will solicit input from Senior Center users to determine how to improve the parking management plan. A formal six-week review meeting will be a forum for stakeholder input to be considered.
16 Construction Phasing Plan
• Project T imeline : 22 months
• Phase 1: De molition, site grading, infrastructure, and podium construction
• Phase 2: I ngress/egress modifications, right-of-way improvements, final building and landscaping
• Parking M anagement Plan: Will ensure site parking availability during construction, with off-site solutions and valet for seniors • Ongoing C oordination: Regular evaluations and collaboration with the Senior Center and community to address parking needs 17 Construction Parking Plan
Providing as much onsite parking as possible during
construction is a priority. Since the proposed
development is a podium-style building, a level of
flexibility is maintained.
Red Zone (~80 spaces) – Unavailable for duration
of project (Approximately 22-24 months)
Blue Zone (~31 spaces) – Unavailable during
podium pour (Approximately 3 Months)
Yellow Zone (~14 spaces) – Unavailable during
concrete pour and framing (Approximately 16
months)
18 Affordable Housing Plan
• Affordable Housing Ordinance (Ordinance No. 2024-02) applies to residential developments with 50+ units
• JHC is required to submit an Affordable Housing Agreement and an Affordable Housing Plan, detailing unit distribution, income targets, site plans, and long-term affordability mechanisms
• All units, except the manager’s unit will be affordable, with a mix of 30% to 60% Area Median Income (AMI)
• Minimum 55-year affordability term
• Maximum occupancy for each unit is two persons for each bedroom plus one additional person
19 Disposition and Development Agreement /
Affordable Housing Agreement and Ground Lease
Terms Summary:
• 99-year affordability term and ground lease with a 55-year re-opener option. Annual lease cost = $1
• Ground lease area used for senior affordable housing
• JHC responsible for maintenance, repairs, and coordination with Senior Center to allow for special events
• City approval required for property management plan, social services program, and parking management plan
• JHC to prioritize Costa Mesa residents
• Coordination of programming areas with Senior Center
• Improvements become property of City at end of lease
20 City Financial Assistance
Overview:
• Ground L ease: $1 per year for use of City land
• City Pe rmit and Development Impact Fees:
• Initial def erral/waiver of up to $700,000
• Fees t o be repaid starting after building is completed or paid in full if Jamboree loans are refinanced
• Potential U se of HOME Funds:
• $1.5 mi llion (subject to competitive application process) • If appr oved, funds to be provided as a loan to be repaid • R epayment of the loans will occur after building is completed or if Developer’s loans are refinanced from the net proceeds ( 50/50 split of proceeds to ensure loan repayment and City participation in net proceeds).
21 Findings
• Tentative P arcel Map: The subdivision aligns with the General Plan, Zoning Code, and State laws, supporting affordable senior housing and balanced growth.
• Master Pl an : The project aligns with the General Plan, Zoning Code, and 19 West Urban Plan.
• Density B onus: 100% affordable senior housing qualifies for density bonuses/incentives under State Code, meets General Plan/Urban Plan goals, and requires concessions for financial feasibility, with no adverse impact on health, safety, or environment.
Planning Commission recommends the City Council:
• Find th e project is categorically exempt from the California Environmental Quality Act (CEQA) per CEQA Guidelines
Section 15332 (Class 32), In-Fill Development Projects; • Approve th e Disposition and Development Agreement
(DDA)/Affordable Housing Agreement (AHA) (including a
Regulatory Agreement) and Ground Lease; and
• Approve t he Master Plan (PMAP-24 -0001) with Density Bonus, and Tentative Parcel Map 2023-160.
Staff recommends the City Council:
• Approve Cit y Financial Assistance
Recommendation
22