STAFF REPORT
Meeting Date:
October 28, 2025
CONSENT
14 SUBJECT: CONDITIONAL WAIVER OF CITY FEES FOR THREE IN-LIEU PARKING CERTIFICATES AT 224/226 OCEAN AVENUE
RECOMMENDATION: It is recommended that the City Council:
1. Grant a conditional waiver of fees in the amount of $69,000 for three in-lieu parking certificates for the property located at 224 and 226 Ocean Avenue in consideration of the public benefit of increasing business development, employment opportunities, and the City’s tax base, on the condition that the property owner obtain an effective coastal development permit for the three parking certificates for such property; and
2. Find that the action, as described in the Environmental Analysis section of this staff report, is covered by the commonsense exemption under 14 CCR Section 15061(b)(3) and the existing facilities exemption under 14 CCR Section 15301.
SUMMARY OF THE MATTER
The property at 224 and 226 Ocean Avenue has remained vacant for seven years in part due to parking constraints created by a private easement agreement recorded in the 1990s, which allocates six of the site’s eight off-street parking spaces to the adjacent property at 222 Ocean Avenue. As a result, the building has been limited to two exclusive parking spaces, restricting its ability to attract a viable business tenant. The property was previously occupied by a dry cleaner and a jewelry store.
To resolve this issue of parking, City staff recommends that the City Council waive the fees in the amount of $69,000 for three in-lieu parking certificates, which would not only resolve the parking issue for the property owner at 224 and 226 Ocean Avenue and the neighboring property owner of 222 Ocean Avenue (Piatta), but it would allow Rivian to proceed with its lease of 224 and 226 Ocean Avenue and facilitate the renovation of a long-vacant building that has been a focus of downtown revitalization efforts. This recommended action also aligns with the City’s Economic Development Incentive Policy.
DISCUSSION
The property owner of 224 and 226 Ocean Avenue has submitted a Commercial Planning Application seeking three parking in-lieu certificates for 224 and 226 Ocean and a waiver of fees for the in-lieu certificates to resolve the property’s parking constrains. Pursuant to the City’s Zoning Code, the City Council may grant relief from some parking requirements if the property owner contributes to parking by purchasing in-lieu parking certificates equivalent to the number of spaces required for a development up to a maximum of three certificates for any one site. (See LBMC Section 25.52.006(E).) The City’s Planning Department is processing the coastal development permit for the three in-lieu parking certificates, which will be heard by the Planning Commission at a future date as to whether the findings for the coastal development permit can be made. In the interim, the Applicant is requesting that the City Council waive the fees for the in-leu certificates in the event that the coastal development permit is granted.
CONDITIONAL WAIVER OF CITY FEES FOR THREE IN-LIEU PARKING CERTIFICATES AT 224/226 OCEAN AVENUE
October 28, 2025
The City recognizes the importance of fostering a strong, resilient local economy and seeks to encourage business development, increase employment opportunities, and enhance the City’s tax base. On February 25, 2025, the City Council adopted Resolution No. 25.008 establishing the Economic Development Policy and Related Economic Incentives (“Economic Development Policy”) to encourage existing and new business development in the City. (Attachment 2.) The Economic Development Policy contemplates certain economic incentives for new and existing businesses subject to certain restrictions and limitations. While Applicant’s request does not fall directly within the Economic Development Policy, which is focused on serving businesses as opposed to property owners, City staff believes that the goals and intent of the Economic Development Policy is served by granting the waiver of the fees for three in lieu parking certificates.
City staff recommends that the City Council grant the waiver of the fees for the three in-lieu parking certificates in a total amount of $69,000 in fees (three certificates valued at $23,000 each) based on the public benefit of increasing business development, employment opportunities, and the City’s tax base. This action would resolve the parking issue for the property owner at 224 and 226 Ocean Avenue and the neighboring property owner of 222 Ocean Avenue (Piatta), allow Rivian to proceed with its lease of 224 and 226 Ocean Avenue, and facilitate the renovation of a long-vacant building that has been a focus of downtown revitalization efforts.
FINANCIAL ANALYSIS
Per the City’s fee schedule, each in-lieu parking certificate is valued at $23,000. The applicant is requesting three certificates for the property at 224 and 226 Ocean Avenue, resulting in a total fee obligation of $69,000. Staff recommend that these fees be waived in recognition of the public benefit associated with reactivating a long-vacant commercial property in the Downtown.
ENVIRONMENTAL ANALYSIS
The recommended action is exempt under the California Environmental Quality Act under CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Here, the waiver of fees for three parking in lieu certificates and potential issuance of three in-lieu parking certificates will not cause any physical changes to 224 or 226 Ocean Avenue.
In the alternative, the recommended action is categorically exempt pursuant to CEQA Guidelines Section 15301 (Existing Facilities) because the parking in lieu certificates pertain to the ongoing operation, permitting, or minor alteration of existing private structures, involving negligible or no expansion of existing or former use. The site currently has two exclusive parking spaces and this action of waiving three parking in lieu certificates and the potential issuance of such certificates simply confirms and continues the existing physical conditions of the site.
Upon taking the recommended action, City staff will cause to be filed within five calendar days a notice of exemption with the County and State Clearinghouse.
ATTACHMENTS
CONDITIONAL WAIVER OF CITY FEES FOR THREE IN-LIEU PARKING CERTIFICATES AT 224/226 OCEAN AVENUE
October 28, 2025
1. Commercial Planning Application
2. City Council Resolution No. 25.008 (Economic Development Policy and Related Economic Incentives) Submitted By:
.David A Kiff
Approved:
.David A Kiff
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Jeremy Frimond, Assistant City Manager Jane Abzug, Assistant City Attorney