Hobbs

I. BACKGROUND1

A. The Regulatory Framework For the first time in 2010, with the enactment of Pacific Grove Ordinance No. 10- 0012, the City allowed “transient use of residential property for remuneration,” subject to licensing, taxes, and other regulation. Licenses were issued upon application for a period of one year, subject to earlier revocation for good cause. By January 2011, the City had licensed 85 active short-term rentals. In 2016, the City capped the overall number of short-term rental licenses citywide at 250 and further established a density cap of “15 [percent] per block.” (Ord. No. 16-007; Pacific Grove Mun. Code, former § 7.40.25.)3 In 2017, the City reaffirmed its 250-license citywide maximum, prohibited more than one license per parcel, and required a 55-foot buffer “zone of exclusion” between licensed properties. (Ord. No. 17-024; Mun. Code, § 7.40.040.) The 2017 ordinance included several provisions regarding renewal or revocation of short-term rental (SRT) licenses. “The City Manager or his/her designee may delay or deny issuance of an STR license for any reason.” (Ord. No. 17-024; Mun. Code, § 7.40.060(g).) “No STR license shall be automatically…