ITEM 5. 2
CITY MANAGER' S REPORT
FEBRUARY 13, 2023 CITY COUNCIL REGULAR MEETING
ITEM: CITY COUNCIL DISCUSSION REGARDING
REGULATION AND LIMITATION OF HOTEL
ESTABLISHMENTS
RECOMMENDATION: City Council to Discuss and Provide Staff Direction as to Whether to Prepare an Ordinance for Review by
the Planning Commission and Subsequent
Consideration of the City Council, for Regulation and
Limitation of Hotel Establishments.
CEQA STATUS: Exempt According to California Environmental Quality Act Article 5 § 15061( b)( 3), by the ' Common
Sense Exemption"
SUMMARY:
On November 14, 2022, the City Council directed staff to research and provide options regarding regulation and limitation of hotel establishments in the City. In particular, the area of concern is the Central Lathrop Specific Plan and Mossdale Landing development areas.
The purpose of this discussion item is to obtain input and direction from the City Council related to the establishment of new hotels in the City.
BACKG ROU N D:
There are two major commercial development areas along the west side of Interstate- •. 5; the Central Lathrop Specific Plan ( CLSP) and Mossdale Landing ( ML). As of writing of this report, there are three approved hotels and one in review within this part of town. The approved hotels include:
Fairfield Inn by Marriott ( 97 rooms), 17401 S. Manthey Rd.
TownePlace Suites by Marriott ( 97 rooms), 17400 Golden Valley Pkwy.
Homewood Suites by Hilton ( 112 rooms), 17100 Golden Valley Pkwy.
In addition, staff is currently processing an application to construct a Home2Suites by Hilton. This project proposes 93 guestrooms and is located at the southeast corner of Golden Valley Parkway and Stanford Crossing ( 15800 Golden Valley Pkwy.) In Central Lathrop, a hotel is listed as a " Permitted Use" in the CO- CL, Commercial Office Zoning designation. This means that no discretionary review is required and the use is allowed by- right ( as long as the project complies with the development standards and design guidelines of the CLSP).
CITY MANAGERS REPORT PAGE 2
FEBRUARY 13, 2023 CITY COUNCIL REGULAR MEETING
DISCUSSION ON HOTEL LIMITATIONS
In Mossdale, a hotel requires a " Conditional Use Permit" ( CUP) if located within the CH- MV, Highway Commercial and CS- MV, Service Commercial zones. A CUP requires a public hearing and the Planning Commission must make certain findings including the compatibility of the project with the surrounding area. In other words, a hotel is not allowed by- right in Mossdale and must obtain discretionary approval from the City.
ANALYSIS:
In regards to regulation and limitation of hotels in the City, staff is proposing the following options for Council' s consideration:
tion 1: Propose a development limit for new hotels in CLSP and Mossdale. This will require an amendment to the Zoning Ordinance and Mossdale UDC to limit the number of new hotels in these two areas of the City.
tion 2: Make no modifications to the existing process and let the market dictate the development of new hotels.
RECOMMENDATION:
Staff recommends that the City Council discuss the information contained in the presentation and provide direction.
CEQA STATUS:
Exempt according to California Environmental Quality Act Article 5 § 15061( b)( 3), by the ' Common Sense Exemption".
FISCAL IMPACT:
There is no fiscal impact to the City of Lathrop, only staff time to prepare this report.
CITY MANAGERS REPORT PAGE 3
FEBRUARY 13, 2023 CITY COUNCIL REGULAR MEETING
DISCUSSION ON HOTEL LIMITATIONS
APPROVALS:
C - 23
Ri Cagui D te
sistant mmunity Development Director
l 7 23
M k Meiss er Date
Community Development irector
Zp t--3
Salvador Navarrete Date
City Attorney
l • Ti3
Ste Salvatore Date
City Manager