Isabella Vanderheiden / Wednesday, Feb. 14 @ 7:01 a.m. / Agendizer

Old Town Housing Development, Design Plans for Habit Burger Grill, Short-Term Vacation Rentals and More at Tonight’s Eureka Planning Commission Meeting

The Eureka Planning Commission has a hot date with a jam-packed agenda this Valentine’s Day. Let’s take a look!

Starbucks-Habit Burger Combo

Many of our readers will recall last year’s thrilling announcement: Habit Burger Grill is coming to Eureka. The fast food chain, known for its “signature Charburgers and unparalleled fast-casual dining experience,” will set up shop at the old Sizzler location at 1907 Fifth Street next to the soon-to-be Starbucks.

A little over a year ago, the Eureka Planning Commission approved demolition plans for the three vacant buildings – the former homes of Annie’s Cambodian, Subway and Sizzler (RIP) – on two adjoining properties, located on T Street between Fourth and Fifth Streets. The commission also approved design plans, submitted by applicant Humboldt QOZ Fund, for two drive-thru restaurants on the site. Starbucks was included in the original plans, but Habit Burger wasn’t identified as a tenant until last year.

During tonight’s meeting, the commission will review the modified design plans, which include reconfiguring both parking lots, reversing the layout of the Habit Burger building and drive-thru entrance, adding a designated ADA path of travel between the buildings and closing the exit onto Fifth Street, according to the staff report.

The report notes that the proposed modifications are consistent with the Site Plan Review criteria, adding that the building designs and signage are “not ugly” or “inharmonious” with their surroundings. Staff is recommending approval of the application.

Mixed-Use Housing Development in Old Town

The planning commission will also consider a permit application for the construction of a new mixed-use housing project on a vacant lot at the corner of Third and G Streets in Old Town. 

Designs for the four-story building, by Eureka-based developer Adams Commercial General Contracting, Inc. (ACGC), include 13 apartments above two ground-floor commercial retail spaces. “The apartments will be a mix of studio, one-bedroom and two-bedroom units, with three fully ADA-accessible units,” according to the staff report. “The building will feature night-sky-friendly exterior lighting and rooftop photovoltaic solar power generation.”

The 4,460-square-foot parcel, formerly home to Russ Meat Market and later Globe Imports, has sat vacant since the historic building was destroyed by a fire in 2006. The parcel was previously part of a larger 10,890-square-foot parcel, which included a single-story metal building on the alley and the two-story Joseph Russ Building next door, but was subdivided in 2021 to accommodate the development of the vacant corner.

Along with the Conditional Use Permit and Coastal Development Permit, ACGC is seeking a variance from zoning regulations that generally require housing projects to include designated parking spots for residents. Raelina Krikston, ACGC’s real estate development director and community liaison, previously told the Outpost, “Given the size of the lot it wouldn’t be possible to put in this kind of development and still include parking.”

There are parking options nearby. The new building will be located near several city-owned parking lots and catty-corner to the EaRTH Center, the city’s future mass transit hub. The city is also considering the possibility of building a multi-story parking garage on the parking lot directly across from the proposed project, where City Hall used to be.

The Eureka’s Historic Preservation Commission unanimously approved the mixed-use housing project at the end of last year. Once the project gets the green light from the planning commission, it will go to the city council for final approval.

Short-Term Vacation Rental Update

The commission will also receive an update on city’s ongoing efforts to regulate short-term vacation rentals, such as Airbnbs and Vrbos, operating in the Eureka.

The city created a permitting structure for vacation dwelling units (another term for short-term rentals) through a council-approved ordinance back in 2016, although the rules didn’t take effect in the Coastal Zone until they were certified by the Coastal Commission in 2018. The city has spent the last couple of years working with the monitoring service Host Compliance to create an inventory of permitted and unpermitted short-term rentals operating in the city. To date, approximately 142 units are being advertised “wholly or in part” as short-term rentals in Eureka.

While short-term rentals offer numerous upsides for property owners and tourists, staff believe a memo prepared by the vacation rental subcommittee indicates that the proliferation of such services has caused “disharmony in Eureka neighborhoods” in recent years.

“Items on the good side of vacation rentals include providing choice for tourists that can be more economical or work better logistically, and their contributions to transient occupancy tax (TOT) funds,” according to the staff report memo. “The potential downsides include loss of housing stock for residents, conflict with neighbors and unwanted changes of neighborhood character. We should also note that vacation rentals vary greatly in degree of benefit/harm from a proprietor on-site renting a room or two in an occupied historical home to help pay for maintenance of the property, to expressions that resemble a boutique hotel and may not be staffed on-site, and have unresponsive, out-of-area ownership.”

During a previous discussion, one of the commissioners asked, “What percentage of rental housing on the market is now a vacation rental?” Staff The subcommittee found that short-term rentals account for the vast majority – about 71.4 percent – of rental properties in Eureka, according to data from July 2023. 

“This is not entirely an apples-to-apples comparison, in that vacation rentals are generally more continuously marketed, while long-term rentals are generally only marketed when there’s a vacancy,” the staff report memo notes.

Reached for additional information, Development Services Director Cristin Kenyon said staff are looking at various strategies to improve the city’s regulations surrounding short-term rentals. 

“We are still not satisfied with the regulatory framework so it’s our hope to tweak the regulations again during the 2024 or 2025 annual inland zoning code cleanup amendment,” Kenyon wrote via email. “[W]e are thinking about are doing away with the use permit approval process, potentially limiting how many rentals one entity can have, and potentially creating some sort of easier path for vacation rentals in homes on the Local Register of Historic Places (to incentivize purchase/maintenance of historic homes).”

Staff are The subcommittee is also looking at ways to prevent clusters of short-term rentals in a single neighborhood. Kenyon said that could be accomplished by “setting a minimum buffer distance between rentals.” 

Asked whether the city would consider a cap on short-term rentals, Kenyon said staff has recommended that the city deal with its backlog of un-permitted rentals first “so we have an understanding of the universe of rentals we’re dealing with.” 

Kenyon noted that staff had sent out compliance letters to 13 operators on Friday. “Combined, we estimate just these 13 owe the city $175,000 in back taxes for failure to remit TOT,” she said. “We are going to use this TOT money to help seed a housing trust fund for the city.”

Staff The subcommittee is going to propose solid policy recommendations to the Planning Commission later this year, with hopes of updating the city’s code by the end of the year.

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All that, plus a little preview of the new waterfront-themed play area going in at Grace Marton Memorial Park. Keep scrolling for further analysis and clever interpretations of the agenda from LoCO’s beloved agendabot, Gennie!

The Eureka Planning Commission will meet on Wednesday, Feb. 14 at 5:30 p.m. at Eureka City Hall – 531 K Street.

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Eureka Planning Commission

Feb. 14, 2024, 5:30 p.m.

A. ROLL CALL

B. SALUTE TO THE FLAG

C. APPROVAL OF MINUTES

1. Planning Commission Meeting Minutes

D. ORAL COMMUNICATIONS

E. PUBLIC HEARINGS - CONTINUED

F. PUBLIC HEARINGS - NEW

1. Tirsbeck Surplus Property and Right-of-Way Vacation and Local Coastal Program Amendment Location: 2000 Broadway and 936 West Hawthorne Street APN: 003-182-013 and -014 (the

2. Humboldt QOZ Fund Starbucks and Habit Burger Drive-Through Restaurants Location: 1906 4th Street and 1917 5th Street; APNs: 002-105-017 and 002-105-018 Project: Design Review Modification AA-21-0013 (MOD-23-0005)

3. ACGC Mixed-Use Development Location: Northwest corner of Third and G Streets; APN: 001-091-009 Projects: Conditional Use Permit CUP-23-0010, Coastal Development Permit CDP-23-0013, and

4. Grace Marton Memorial Park and Eureka Waterfront Trail Improvements Location: Halvorsen Park APNs: 001-161-015, 002-241-006, 002-241-007, 002-241-013,

G. OLD BUSINESS

1. Vacation Rental Sub-Committee Update

H. NEW BUSINESS

I. STAFF REPORTS AND COMMUNICATIONS

J. OTHER REPORTS AND COMMUNICATIONS

K. ADJOURNMENT

L. NOTICES

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