The purpose of this chapter is to provide the opportunity to create bed and breakfast inns utilizing historic structure(s) in certain zones within the city. This chapter is enacted on the basis of public policy that supports the city of Laguna Beach as a tourist destination and the preservation of historic structures within the city. This chapter also focuses on the need to provide incentives for owners to continue to occupy and maintain historic structures. This chapter emphasizes protection of neighborhoods with provisions that prohibit nuisance and detrimental change in the residential character of any site proposed for a bed and breakfast operation.

For the purposes of this chapter, "bed and breakfast inn" means any residential dwelling(s) with short-term lodging rooms and the service of breakfast meals included in the daily room rate, and one common room available for guest interaction.

Bed and breakfast inns, pursuant to this chapter, shall be subject to the approval of a conditional use permit as provided for in Section 25.05.030 of this title. The approval of such conditional use permit shall be subject to the findings set forth in Section 25.22.060 of this chapter. The applicant(s) for a conditional use permit shall be the owner(s) of the real property on which the bed and breakfast inn is proposed to be established, or his/her authorized agent. The historic register properties shall be listed on the city's historic register at the time of conditional use permit application. The heritage committee shall make a recommendation to the planning commission prior to its evaluation of a conditional use permit application to establish a bed and breakfast inn and to request parking reduction incentives under this chapter.

The following are the minimum requirements for the establishment of a bed and breakfast inn:

The following incentive may be allowed for proposed bed and breakfast inns, in addition to those specified in Chapter 25.45 of this title, Historic Preservation. The granting of such incentive shall be conditioned upon a written agreement between the city and property owner that ensures preservation of the building's historic character. Structures listed on the register, which are intended to be used as bed and breakfast inns and are located in the R-2 or R-3 residential zones, may be granted a conditional use permit to allow a reduction in parking requirements based on the degree to which the historic character of the building is preserved and/or enhanced. Properties on the City's register may be granted up to a seventy-five percent reduction. Such incentive shall be reviewed by the heritage committee, and the committee shall make recommendations to the planning commission. After reviewing the heritage committee recommendations at a public hearing, the planning commission shall make recommendations to the city council, which has the final approval authority.

Applications for parking reduction shall include methods to be employed to encourage use of alternative forms of transportation. Whenever a parking reduction is granted, the applicant shall be required to provide and/or promote use of alternate forms of transportation for both employees and guests.