HomeMy WebLinkAboutAUP_2026-02-18_AgendaAdministraƟve Use Permit
HOW TO OBSERVE THE MEETING:
Interested individuals may attend the meeting in-person at Atascadero City Hall. To observe
remotely, the meeting may be livestreamed on Zoom. The video recording of the meeting will be
available upon request. To observe remotely using the Zoom platform, please visit:
To join the virtual hearing: https://us02web.zoom.us/j/84567568854
Webinar ID: 845 6756 8854
HOW TO SUBMIT PUBLIC COMMENT:
Public comment may be provided in-person.
Written public comments are accepted at aup-comments@atascadero.org by 5:00 pm the day
before the meeting. Such email comments must identify the Agenda Item Number in the
subject line of the email. The comments will be forwarded to the Administrative Hearing Officer
and made a part of the administrative record. If a comment is received after the deadline for
submission but before the close of the meeting, the comment will still be included as a part of the
administrative record of the meeting but will be forwarded to the Zoning Administrator the next
business day. Please note, email comments will not be read into the record.
AMERICAN DISABILITY ACT ACCOMMODATIONS:
Any member of the public who needs accommodations should contact the City Clerk’s Office at
cityclerk@atascadero.org or by calling (805) 470-3400 at least 48 hours prior to the meeting or
time when services are needed. The City will use their best efforts to provide reasonable
accommodations to afford as much accessibility as possible while also maintaining public safety
in accordance with the City procedure for resolving reasonable accommodation requests.
Administrative Use Permit agendas and staff reports may be viewed on the City's website:
www.atascadero.org. Final Action Reports will be available after the meeting, and upon request
from the Community Development Department.
Copies of the staff reports or other documentation relating to each item of business referred to on the Agenda are on
file in the Community Development Department and are available for public inspection on our website,
www.atascadero.org. All documents submitted by the public during AUP meetings that are either read into the record
or referred to in their statement will be noted in the audio recording and available for review by contacting the
Community Development Department. All documents will be available for public inspection during City Hall business
hours by appointment request.
CITY OF ATASCADERO
ADMINISTRATIVE USE PERMIT HEARING
AGENDA
Wednesday, February 18, 2026, 3:00 p.m.
City Hall, Room 104
6500 Palma Ave, Atascadero CA 93422
Pages
The City of Atascadero's Administrative Hearing Officer will hold a public hearing
in person at the time, date and location listed above to consider the following
project:
1.1800 EL CAMINO REAL (USE25-0073)4
This application is to allow stays exceeding 30 days at the Home2 Suites
hotel located at 1800 El Camino Real (APN 049-133-027) (USE25-0073).
The proposed project qualifies for a Class 1 categorical exemption from
the provisions of the California Environmental Quality Act (California
Public Resources Code §§ 21000, et seq., “CEQA”) and CEQA
Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.)
pursuant to CEQA Guidelines Section 15301, which exempts projects
involving existing facilities where there is negligible or no expansion of
use. Staff recommendation is to approve the project. (Sahana Kotha,
Planning Intern)
PLEASE NOTE: Any court challenge to the actions taken at the public
hearing may be limited to considering only those issues raised at the
public hearing described in this notice or in written correspondence to the
City of Atascadero at, or prior to, the public hearing.
Any decision of the Hearing Officer is final unless appealed to the
Planning Commission within 14 days of the action. Any person aggrieved
by the decision may file an appeal. Appeal forms are available in the
Community Development Department or on the City’s website
(www.atascadero.org). The fee for filing an appeal is $1,714 (fee as of 7-
28-25) and must accompany the appeal documentation.
2.9010 WEST FRONT ROAD (USE25-0074)7
This application is to allow stays exceeding 30 days at the Holiday Inn
Express and Suites hotel located at 9010 W. Front Road (APN 056-131-
024) (USE25-0074). The proposed project qualifies for a Class 1
categorical exemption from the provisions of the California Environmental
Quality Act (California Public Resources Code §§ 21000, et seq.,
“CEQA”) and CEQA Guidelines (Title 14 California Code of Regulations
§§ 15000, et seq.) pursuant to CEQA Guidelines Section 15301, which
exempts projects involving existing facilities where there is negligible or
no expansion of use. Staff recommendation is to approve the project.
(Sahana Kotha, Planning Intern)
PLEASE NOTE: Any court challenge to the actions taken at the public
hearing may be limited to considering only those issues raised at the
public hearing described in this notice or in written correspondence to the
City of Atascadero at, or prior to, the public hearing.
Any decision of the Hearing Officer is final unless appealed to the
Planning Commission within 14 days of the action. Any person aggrieved
by the decision may file an appeal. Appeal forms are available in the
Community Development Department or on the City’s website
(www.atascadero.org). The fee for filing an appeal is $1,714 (fee as of 7-
28-25) and must accompany the appeal documentation.
3.900 EL CAMINO REAL (USE25-0075)10
This application is to allow stays exceeding 30 days at the SpringHill
Suites hotel located at 900 El Camino Real (APN 049-045-032) (USE25-
0075). The proposed project qualifies for a Class 1 categorical
exemption from the provisions of the California Environmental Quality Act
(California Public Resources Code §§ 21000, et seq., “CEQA”) and
CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et
seq.) pursuant to CEQA Guidelines Section 15301, which exempts
projects involving existing facilities where there is negligible or no
expansion of use. Staff recommendation is to approve the project.
(Sahana Kotha, Planning Intern)
PLEASE NOTE: Any court challenge to the actions taken at the public
hearing may be limited to considering only those issues raised at the
public hearing described in this notice or in written correspondence to the
City of Atascadero at, or prior to, the public hearing.
Any decision of the Hearing Officer is final unless appealed to the
Planning Commission within 14 days of the action. Any person aggrieved
by the decision may file an appeal. Appeal forms are available in the
Community Development Department or on the City’s website
(www.atascadero.org). The fee for filing an appeal is $1,714 (fee as of 7-
28-25) and must accompany the appeal documentation.
4.9400 EL CAMINO REAL (USE25-0076)13
This application is to allow stays exceeding 30 days at the Motel 6
located at 9400 El Camino Real (APN 056-071-006) (USE25-
0076). The proposed project qualifies for a Class 1 categorical
exemption from the provisions of the California Environmental Quality Act
(California Public Resources Code §§ 21000, et seq., “CEQA”) and
CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et
seq.) pursuant to CEQA Guidelines Section 15301, which exempts
projects involving existing facilities where there is negligible or no
expansion of use. Staff recommendation is to approve the project.
(Sahana Kotha, Planning Intern)
Page 2 of 15
PLEASE NOTE: Any court challenge to the actions taken at the public
hearing may be limited to considering only those issues raised at the
public hearing described in this notice or in written correspondence to the
City of Atascadero at, or prior to, the public hearing.
Any decision of the Hearing Officer is final unless appealed to the
Planning Commission within 14 days of the action. Any person aggrieved
by the decision may file an appeal. Appeal forms are available in the
Community Development Department or on the City’s website
(www.atascadero.org). The fee for filing an appeal is $1,714 (fee as of 7-
28-25) and must accompany the appeal documentation.
Page 3 of 15
CITY OF ATASCADERO
ADMINISTRATIVE HEARING
STAFF REPORT Item 1
Department: Community
Development
Date: 02/18/2026
TO: Phil Dunsmore, Administratfve Hearing Officer
FROM: Kelly Gleason, Planning Manager
PREPARED BY: Sahana Kotha, Planning Intern
SUBJECT: Home2 Suites Extended Occupancy
RECOMMENDATION:
The Administratfve Hearing Officer approve Administratfve Use Permit USE25-0073, allowing
extended-occupancy lodging at the Home2 Suites at 1800 El Camino Real based on findings and
subject to conditfons of approval.
DISCUSSION:
BACKGROUND
On April 22nd, 2025, the City Council approved Ordinance No. 685, amending Title 9 of the
Atascadero Municipal Code to add Extended Occupancy Hotel/Motel to the land use definitfons
and establish standards for the use. This ordinance responds to an interest expressed by local
hoteliers in extended stays in order to increase occupancy in slower seasons and better compete
with medium-term rental platiorms.
ANALYSIS
Home2 Suites is located on a property zoned CR and CT. It has 120 rooms in total. The applicant
requests an Administratfve Use Permit to allow extended-occupancy lodging, defined as stays
longer than 30 days. While these stays are not subject to transient occupancy tax (TOT) per State
law, hotel/motel operators are subject to fees for each extended stay, as stfpulated in a separate
agreement with the City required by conditfons of approval. Revenue generated from extended
occupancies is limited to 20% of an operator’s annual gross revenue.
FINDINGS:
Atascadero Municipal Code § 9-6.186 requires the Administratfve Hearing Officer to make the
following three findings:
1. FINDING: The hotel/motel is located within a commercial zone of the City.
FACT: Home2 Suites is located in a commercial zone.
Page 4 of 15
02/18/2026 | Item 1 | Staff Report
2. FINDING: None of the extended occupancy is intended to be rented as a permanent
residentfal multffamily room or unit.
FACT: Extended occupancy is intended for temporary stays only. The operator of Home2 Suites
will enter into an agreement with the City confirming the maximum length of occupancy is
120 days.
3. FINDING: Extended occupancy of a portfon of the rooms/units is necessary to ensure the
economic viability of the transient lodging and short-term occupancy lodging uses in the
hotel/motel.
FACT: Permitting extended-occupancy rooms provides flexibility to local hoteliers and offers
revenue optfons during slower seasons. Hoteliers have indicated that long-term stays are
necessary to balance revenue and staffing.
ENVIRONMENTAL DETERMINATION:
The proposed project qualifies for a Class 1 categorical exemptfon from the provisions of the
California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”)
and CEQA Guidelines (Title 14 California Code of Regulatfons §§ 15000, et seq.) pursuant to CEQA
Guidelines Sectfon 15301, which exempts projects involving existfng facilitfes where there is
negligible or no expansion of use.
CONCLUSION:
The applicant is requestfng approval to offer extended-occupancy lodging at the Home2
Suites at 1800 El Camino Real.
They meet the intent of the code and all applicable City standards.
CONDITIONS:
1. This approval shall be for an Extended Stay Administratfve Use Permit, which allows for
transient stays of greater than 30 days and up to 120 days, subject to these conditfons
and governing sectfons of the Atascadero Municipal Code.
2. The approval of these entftlements shall become final and effectfve the day after the
administratfve hearing, unless an appeal is made in accordance with the Atascadero
Municipal Code. Implementatfon of extended stays is subject to executfon of an
agreement as outlined in Conditfon #6.
3. In accordance with the Atascadero Municipal Code sectfon 9-8.105, any violatfon of any
of the conditfons of approval may be cause for revocatfon of this entftlement and subject
the applicant and/or future property owners to the penaltfes set for in the Atascadero
Municipal Code, as well as any other available legal remedies.
4. Approval of these entftlements shall be effectfve immediately. Should the lodging use not
be operatfonal at the tfme of approval, this entftlement shall be valid for twenty-four (24)
months after its effectfve date. At the end of the period, should the lodging use stfll not
Page 5 of 15
02/18/2026 | Item 1 | Staff Report
be operatfonal, the approval shall expire and become null and void unless the project has
received a tfme extension, consistent with the Atascadero Municipal Code.
5. The applicant shall defend, indemnify, and hold harmless the City of Atascadero or its
agents, officers, and employees against any claim or actfon brought to challenge an
approval by the City, or any of its entftfes, concerning the grantfng of or operatfon pursuant
to the permit.
6. Prior to any lodging units or rooms being offered for stays greater than 30-days, the
owner/operator shall enter into an Extended Stay Agreement (Agreement) that sets forth
the conditfons of extended occupancy. The term of the Agreement shall be retroactfve to
July 1st of the fiscal year in which the approval occurs and, should any rooms or units have
been rented to extended stay guests prior to approval, those stays shall be subject to all
fees and conditfons set forth in the Agreement.
7. A memorandum of agreement shall be recorded against the property specifying
partfcipatfon in the program, requirements to renew the approvals upon sale, and
reference to the Agreement.
8. This entftlement shall be personal to the lodging use owner and shall not be transferable
whether by operatfon of law or otherwise. Sale of the property shall require a new
applicatfon and/or Agreement.
9. This entftlement shall supplement and not supplant any other approval, entftlement, or
permit granted for the lodging use.
ACTION:
☐ APPROVE ☐ APPROVE AS MODIFIED ☐ DENY
☐ CONTINUE TO ALLOW _________________________________________________________
SIGNED:
Phil Dunsmore, Administratfve Hearing Officer Date
Page 6 of 15
CITY OF ATASCADERO
ADMINISTRATIVE HEARING
STAFF REPORT Item 2
Department: Community
Development
Date: 02/18/2026
TO: Phil Dunsmore, Administratfve Hearing Officer
FROM: Kelly Gleason, Planning Manager
PREPARED BY: Sahana Kotha, Planning Intern
SUBJECT: Holiday Inn Express and Suites Extended Occupancy
RECOMMENDATION:
The Administratfve Hearing Officer approve Administratfve Use Permit USE25-0074, allowing
extended-occupancy lodging at the Holiday Inn Express and Suites at 9010 West Front Road based
on findings and subject to conditfons of approval.
DISCUSSION:
BACKGROUND
On April 22nd, 2025, the City Council approved Ordinance No. 685, amending Title 9 of the
Atascadero Municipal Code to add Extended Occupancy Hotel/Motel to the land use definitfons
and establish standards for the use. This ordinance responds to an interest expressed by local
hoteliers in extended stays in order to increase occupancy in slower seasons and better compete
with medium-term rental platiorms.
ANALYSIS
Holiday Inn Express and Suites is located on a property zoned CR. It has 80 rooms in total. The
applicant requests an Administratfve Use Permit to allow extended-occupancy lodging, defined
as stays longer than 30 days. While these stays are not subject to transient occupancy tax (TOT)
per State law, hotel/motel operators are subject to fees for each extended stay, as stfpulated in a
separate agreement with the City required by conditfons of approval. Revenue generated from
extended occupancies is limited to 20% of an operator’s annual gross revenue.
FINDINGS:
Atascadero Municipal Code § 9-6.186 requires the Administratfve Hearing Officer to make the
following three findings:
1. FINDING: The hotel/motel is located within a commercial zone of the City.
FACT: Holiday Inn Express and Suites is located in a commercial zone.
Page 7 of 15
02/18/2026 | Item 2 | Staff Report
2. FINDING: None of the extended occupancy is intended to be rented as a permanent
residentfal multffamily room or unit.
FACT: Extended occupancy is intended for temporary stays only. The operator Holiday Inn
Express and Suites will enter into an agreement with the City confirming the maximum length
of occupancy is 120 days.
3. FINDING: Extended occupancy of a portfon of the rooms/units is necessary to ensure the
economic viability of the transient lodging and short-term occupancy lodging uses in the
hotel/motel.
FACT: Permitting extended-occupancy rooms provides flexibility to local hoteliers and offers
revenue optfons during slower seasons. Hoteliers have indicated that long-term stays are
necessary to balance revenue and staffing.
ENVIRONMENTAL DETERMINATION:
The proposed project qualifies for a Class 1 categorical exemptfon from the provisions of the
California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”)
and CEQA Guidelines (Title 14 California Code of Regulatfons §§ 15000, et seq.) pursuant to CEQA
Guidelines Sectfon 15301, which exempts projects involving existfng facilitfes where there is
negligible or no expansion of use.
CONCLUSION:
The applicant is requestfng approval to offer extended-occupancy lodging at Holiday Inn
Express and Suites at 9010 West Front Road.
They meet the intent of the code and all applicable City standards.
CONDITIONS:
1. This approval shall be for an Extended Stay Administratfve Use Permit, which allows for
transient stays of greater than 30 days and up to 120 days, subject to these conditfons
and governing sectfons of the Atascadero Municipal Code.
2. The approval of these entftlements shall become final and effectfve the day after the
administratfve hearing, unless an appeal is made in accordance with the Atascadero
Municipal Code. Implementatfon of extended stays is subject to executfon of an
agreement as outlined in Conditfon #6.
3. In accordance with the Atascadero Municipal Code sectfon 9-8.105, any violatfon of any
of the conditfons of approval may be cause for revocatfon of this entftlement and subject
the applicant and/or future property owners to the penaltfes set for in the Atascadero
Municipal Code, as well as any other available legal remedies.
4. Approval of these entftlements shall be effectfve immediately. Should the lodging use not
be operatfonal at the tfme of approval, this entftlement shall be valid for twenty-four (24)
months after its effectfve date. At the end of the period, should the lodging use stfll not
Page 8 of 15
02/18/2026 | Item 2 | Staff Report
be operatfonal, the approval shall expire and become null and void unless the project has
received a tfme extension, consistent with the Atascadero Municipal Code.
5. The applicant shall defend, indemnify, and hold harmless the City of Atascadero or its
agents, officers, and employees against any claim or actfon brought to challenge an
approval by the City, or any of its entftfes, concerning the grantfng of or operatfon pursuant
to the permit.
6. Prior to any lodging units or rooms being offered for stays greater than 30-days, the
owner/operator shall enter into an Extended Stay Agreement (Agreement) that sets forth
the conditfons of extended occupancy. The term of the Agreement shall be retroactfve to
July 1st of the fiscal year in which the approval occurs and, should any rooms or units have
been rented to extended stay guests prior to approval, those stays shall be subject to all
fees and conditfons set forth in the Agreement.
7. A memorandum of agreement shall be recorded against the property specifying
partfcipatfon in the program, requirements to renew the approvals upon sale, and
reference to the Agreement.
8. This entftlement shall be personal to the lodging use owner and shall not be transferable
whether by operatfon of law or otherwise. Sale of the property shall require a new
applicatfon and/or Agreement.
9. This entftlement shall supplement and not supplant any other approval, entftlement, or
permit granted for the lodging use.
ACTION:
☐ APPROVE ☐ APPROVE AS MODIFIED ☐ DENY
☐ CONTINUE TO ALLOW _________________________________________________________
SIGNED:
Phil Dunsmore, Administratfve Hearing Officer Date
Page 9 of 15
CITY OF ATASCADERO
ADMINISTRATIVE HEARING
STAFF REPORT Item 3
Department: Community
Development
Date: 02/18/2026
TO: Phil Dunsmore, Administratfve Hearing Officer
FROM: Kelly Gleason, Planning Manager
PREPARED BY: Sahana Kotha, Planning Intern
SUBJECT: SpringHill Suites Extended Occupancy
RECOMMENDATION:
The Administratfve Hearing Officer approve Administratfve Use Permit USE25-0075, allowing
extended occupancy lodging at the SpringHill Suites at 900 El Camino Real based on findings and
subject to conditfons of approval.
DISCUSSION:
BACKGROUND
On April 22nd, 2025, the City Council approved Ordinance No. 685, amending Title 9 of the
Atascadero Municipal Code to add Extended Occupancy Hotel/Motel to the land use definitfons
and establish standards for the use. This ordinance responds to an interest expressed by local
hoteliers in extended stays in order to increase occupancy in slower seasons and better compete
with medium-term rental platiorms.
ANALYSIS
SpringHill Suites is located on a property zoned CPK. It has 130 rooms in total. The applicant
requests an Administratfve Use Permit to allow extended-occupancy lodging, defined as stays
longer than 30 days. While these stays are not subject to transient occupancy tax (TOT) per State
law, hotel/motel operators are subject to fees for each extended stay, as stfpulated in a separate
agreement with the City required by conditfons of approval. Revenue generated from extended
occupancies is limited to 20% of an operator’s annual gross revenue.
FINDINGS:
Atascadero Municipal Code § 9-6.186 requires the Administratfve Hearing Officer to make the
following three findings:
1. FINDING: The hotel/motel is located within a commercial zone of the City.
FACT: SpringHill Suites is located in a commercial zone.
Page 10 of 15
02/18/2026 | Item 3 | Staff Report
2. FINDING: None of the extended occupancy is intended to be rented as a permanent
residentfal multffamily room or unit.
FACT: Extended occupancy is intended for temporary stays only. The operator SpringHill Suites
will enter into an agreement with the City confirming the maximum length of occupancy is
120 days.
3. FINDING: Extended occupancy of a portfon of the rooms/units is necessary to ensure the
economic viability of the transient lodging and short-term occupancy lodging uses in the
hotel/motel.
FACT: Permitting extended-occupancy rooms provides flexibility to local hoteliers and offers
revenue optfons during slower seasons. Hoteliers have indicated that long-term stays are
necessary to balance revenue and staffing.
ENVIRONMENTAL DETERMINATION:
The proposed project qualifies for a Class 1 categorical exemptfon from the provisions of the
California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”)
and CEQA Guidelines (Title 14 California Code of Regulatfons §§ 15000, et seq.) pursuant to CEQA
Guidelines Sectfon 15301, which exempts projects involving existfng facilitfes where there is
negligible or no expansion of use.
CONCLUSION:
The applicant is requestfng approval to offer extended-occupancy lodging at the SpringHill
Suites located at 900 El Camino Real.
They meet the intent of the code and all applicable City standards.
CONDITIONS:
1. This approval shall be for an Extended Stay Administratfve Use Permit, which allows for
transient stays of greater than 30 days and up to 120 days, subject to these conditfons
and governing sectfons of the Atascadero Municipal Code.
2. The approval of these entftlements shall become final and effectfve the day after the
administratfve hearing, unless an appeal is made in accordance with the Atascadero
Municipal Code. Implementatfon of extended stays is subject to executfon of an
agreement as outlined in Conditfon #6.
3. In accordance with the Atascadero Municipal Code sectfon 9-8.105, any violatfon of any
of the conditfons of approval may be cause for revocatfon of this entftlement and subject
the applicant and/or future property owners to the penaltfes set for in the Atascadero
Municipal Code, as well as any other available legal remedies.
4. Approval of these entftlements shall be effectfve immediately. Should the lodging use not
be operatfonal at the tfme of approval, this entftlement shall be valid for twenty-four (24)
months after its effectfve date. At the end of the period, should the lodging use stfll not
Page 11 of 15
02/18/2026 | Item 3 | Staff Report
be operatfonal, the approval shall expire and become null and void unless the project has
received a tfme extension, consistent with the Atascadero Municipal Code.
5. The applicant shall defend, indemnify, and hold harmless the City of Atascadero or its
agents, officers, and employees against any claim or actfon brought to challenge an
approval by the City, or any of its entftfes, concerning the grantfng of or operatfon pursuant
to the permit.
6. Prior to any lodging units or rooms being offered for stays greater than 30-days, the
owner/operator shall enter into an Extended Stay Agreement (Agreement) that sets forth
the conditfons of extended occupancy. The term of the Agreement shall be retroactfve to
July 1st of the fiscal year in which the approval occurs and, should any rooms or units have
been rented to extended stay guests prior to approval, those stays shall be subject to all
fees and conditfons set forth in the Agreement.
7. A memorandum of agreement shall be recorded against the property specifying
partfcipatfon in the program, requirements to renew the approvals upon sale, and
reference to the Agreement.
8. This entftlement shall be personal to the lodging use owner and shall not be transferable
whether by operatfon of law or otherwise. Sale of the property shall require a new
applicatfon and/or Agreement.
9. This entftlement shall supplement and not supplant any other approval, entftlement, or
permit granted for the lodging use.
ACTION:
☐ APPROVE ☐ APPROVE AS MODIFIED ☐ DENY
☐ CONTINUE TO ALLOW _________________________________________________________
SIGNED:
Phil Dunsmore, Administratfve Hearing Officer Date
Page 12 of 15
CITY OF ATASCADERO
ADMINISTRATIVE HEARING
STAFF REPORT Item 4
Department: Community
Development
Date: 02/18/2026
TO: Phil Dunsmore, Administratfve Hearing Officer
FROM: Kelly Gleason, Planning Manager
PREPARED BY: Sahana Kotha, Planning Intern
SUBJECT: Motel 6 Extended Occupancy
RECOMMENDATION:
The Administratfve Hearing Officer approve Administratfve Use Permit USE25-0076, allowing
extended occupancy lodging at the Motel 6 at 9400 El Camino Real based on findings and subject
to conditfons of approval.
DISCUSSION:
BACKGROUND
On April 22nd, 2025, the City Council approved Ordinance No. 685, amending Title 9 of the
Atascadero Municipal Code to add Extended Occupancy Hotel/Motel to the land use definitfons
and establish standards for the use. This ordinance responds to an interest expressed by local
hoteliers in extended stays in order to increase occupancy in slower seasons and better compete
with medium-term rental platiorms.
ANALYSIS
Motel 6 is located on a property zoned CT. It has 118 rooms in total. The applicant requests an
Administratfve Use Permit to allow extended-occupancy lodging, defined as stays longer than 30
days. While these stays are not subject to transient occupancy tax (TOT) per State law, hotel/motel
operators are subject to fees for each extended stay, as stfpulated in a separate agreement with
the City required by conditfons of approval. Revenue generated from extended occupancies is
limited to 20% of an operator’s annual gross revenue.
FINDINGS:
Atascadero Municipal Code § 9-6.186 requires the Administratfve Hearing Officer to make the
following three findings:
1. FINDING: The hotel/motel is located within a commercial zone of the City.
FACT: Motel 6 is located in a commercial zone.
Page 13 of 15
02/18/2026 | Item 4 | Staff Report
2. FINDING: None of the extended occupancy is intended to be rented as a permanent
residentfal multffamily room or unit.
FACT: Extended occupancy is intended for temporary stays only. The operator of Motel 6 will
enter into an agreement with the City confirming the maximum length of occupancy is 120
days.
3. FINDING: Extended occupancy of a portfon of the rooms/units is necessary to ensure the
economic viability of the transient lodging and short-term occupancy lodging uses in the
hotel/motel.
FACT: Permitting extended-occupancy rooms provides flexibility to local hoteliers and offers
revenue optfons during slower seasons. Hoteliers have indicated that long-term stays are
necessary to balance revenue and staffing.
ENVIRONMENTAL DETERMINATION:
The proposed project qualifies for a Class 1 categorical exemptfon from the provisions of the
California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”)
and CEQA Guidelines (Title 14 California Code of Regulatfons §§ 15000, et seq.) pursuant to CEQA
Guidelines Sectfon 15301, which exempts projects involving existfng facilitfes where there is
negligible or no expansion of use.
CONCLUSION:
The applicant is requestfng approval to offer extended-occupancy lodging at Motel 6 at
9400 El Camino Real.
They meet the intent of the code and all applicable City standards.
CONDITIONS:
1. This approval shall be for an Extended Stay Administratfve Use Permit, which allows for
transient stays of greater than 30 days and up to 120 days, subject to these conditfons
and governing sectfons of the Atascadero Municipal Code.
2. The approval of these entftlements shall become final and effectfve the day after the
administratfve hearing, unless an appeal is made in accordance with the Atascadero
Municipal Code. Implementatfon of extended stays is subject to executfon of an
agreement as outlined in Conditfon #6.
3. In accordance with the Atascadero Municipal Code sectfon 9-8.105, any violatfon of any
of the conditfons of approval may be cause for revocatfon of this entftlement and subject
the applicant and/or future property owners to the penaltfes set for in the Atascadero
Municipal Code, as well as any other available legal remedies.
4. Approval of these entftlements shall be effectfve immediately. Should the lodging use not
be operatfonal at the tfme of approval, this entftlement shall be valid for twenty-four (24)
months after its effectfve date. At the end of the period, should the lodging use stfll not
Page 14 of 15
02/18/2026 | Item 4 | Staff Report
be operatfonal, the approval shall expire and become null and void unless the project has
received a tfme extension, consistent with the Atascadero Municipal Code.
5. The applicant shall defend, indemnify, and hold harmless the City of Atascadero or its
agents, officers, and employees against any claim or actfon brought to challenge an
approval by the City, or any of its entftfes, concerning the grantfng of or operatfon pursuant
to the permit.
6. Prior to any lodging units or rooms being offered for stays greater than 30-days, the
owner/operator shall enter into an Extended Stay Agreement (Agreement) that sets forth
the conditfons of extended occupancy. The term of the Agreement shall be retroactfve to
July 1st of the fiscal year in which the approval occurs and, should any rooms or units have
been rented to extended stay guests prior to approval, those stays shall be subject to all
fees and conditfons set forth in the Agreement.
7. A memorandum of agreement shall be recorded against the property specifying
partfcipatfon in the program, requirements to renew the approvals upon sale, and
reference to the Agreement.
8. This entftlement shall be personal to the lodging use owner and shall not be transferable
whether by operatfon of law or otherwise. Sale of the property shall require a new
applicatfon and/or Agreement.
9. This entftlement shall supplement and not supplant any other approval, entftlement, or
permit granted for the lodging use.
ACTION:
☐ APPROVE ☐ APPROVE AS MODIFIED ☐ DENY
☐ CONTINUE TO ALLOW _________________________________________________________
SIGNED:
Phil Dunsmore, Administratfve Hearing Officer Date
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