City eyes condo conversions

Concerns about condo conversions may lead Costa Mesa officials to put the brakes on some of them.

Planning commissioners and City Council members have worried about conversions of residential rental units to condos for sale, but a more pressing issue now is commercial developments.

The council later this month will consider a moratorium on industrial condo conversions while the city develops a new permit process.

With residential units, city officials are sometimes torn between competing interests. They want to create more home ownership opportunities and bring the city’s home rental-to-ownership ratio more into line with the national average.

Census data shows Costa Mesa’s residents are 60% renters and 40% homeowners, while nationally the ratio is 34% renters to 66% owners, city assistant development services director Mike Robinson said.

But a big problem is the condition of some of the units owners want to convert.

“Most of the concern is that some of the older residential developments, even more than 5 years old, don’t meet current parking standards, may not meet open space standards … and may be more dense than would be allowed with new development,” Robinson said.

Now commercial/industrial condos are topping the agenda, after the planning commission in February approved the conversion of a 51-unit industrial development near West 17th Street and Placentia Avenue.

It’s the first industrial conversion request since the council adopted the Westside overlay plans, which are intended to spur redevelopment of properties with new residential and mixed-use projects.

Councilwoman Linda Dixon last week suggested a moratorium on industrial conversions, and City Manager Allan Roeder told her she’s not the only one to have asked.

Officials aren’t sure yet whether letting owners sell off industrial units will impede Westside redevelopment.

Before an industrial park is converted, Robinson said, “you’re dealing with a single owner,” but if the units are sold separately, there could be many owners.

“It’s a lot more difficult dealing with 50 owners rather than one,” he said.

Councilman Eric Bever has asked staff to develop a permit process for industrial condo conversions, which would give the city the flexibility to deny projects when it’s warranted. A temporary moratorium starts at 45 days and can be extended up to two years.

The council and planning commission will meet jointly to talk about industrial condos within two months and they could be voting on new rules by summer, Robinson said.