Hurdle to conversions

Editor’s note: This corrects an earlier version.

In early February, Coast Motel owner Corey Donaldson asked the Costa Mesa City Council to waive the $1,550 planning application fee needed to convert the Westside lodge into an apartment building.

But he was turned down March 16.

“That was a hard one,” said Councilwoman Wendy Leece, who voted against waiving the fee. “In principal, it was good of him to ask, but in these lean times, it would set a precedent that we would have to waive other fees down the road. I think he has got a good project, and I’m very supportive of what he’s doing, but it’s a dollars-and-cents issue for me.”

The application illustrates a bigger issue the city has dealt with for more than a decade.

In 1997, the Newport Boulevard Specific Plan was passed to change the zoning and encourage motel owners to convert their properties into steady homes or apartments, said Councilman Gary Monahan.

Donaldson, who co-owns Coast Motel, 2278 Newport Blvd., is looking to convert his motel because of some of the problems he encountered with operating the business in the city, especially as the economy plummeted.

Many of the renters at Coast Motel are transients who stay at one motel for about 28 days, which is the maximum one can occupy a motel room, then move onto another, Donaldson told the city.

Donaldson, who operates two rental properties in Costa Mesa, told the City Council he’d rather work with stable residents. Donaldson said he has dealt with overcrowding, issues involving drugs or alcohol, lack of payment and having to spend money on evictions.

He began the idea of the converting the Coast Motel after receiving a letter from the city last fall that encouraged him to convert his property into stable housing, Donaldson said.

Except for Monahan and Councilman Eric Bever, the rest of the council members turned him down.

“I felt because it fell in line with what the city was looking for, we owed it to him to waive the fee,” Monahan said. “It just fell in line with a lot of the city’s goals and it was a good way to get him started on the right path.”

Major alterations to convert Coast Motel into single or family room occupancy units will not be needed. Each 450-square-foot unit already comes with a living space, closet, full kitchen and bath, according to a city staff report.

Although the city turned down Donaldson’s request, he’s still looking to convert the motel, said Minoo Ashabi, city senior planner.

On April 12, the Planning Commission is scheduled to review Donaldson’s plan and give feedback, Ashabi said.