Encinitas to begin charging fees for outdoor dining parklets

ENCINITAS — The Encinitas City Council unanimously adopted a resolution at its June 12 meeting to begin charging restaurant owners a fee for outdoor dining areas in public right-of-way parking spaces.

Starting Aug. 1, local store owners must pay a monthly right-of-way usage fee of $2.50 per square foot for outdoor dining parklets.

The resolution comes after over a year of mounting frustration and criticism from non-restaurant retailers over a lack of downtown parking. The outdoor dining concept was first established to help restaurants survive mandatory lockdowns and public health restrictions in the early months of the COVID-19 pandemic.

The changes are part of an eight-step process the council established in December 2023 to update outdoor dining permitting processes. 

“While their revenue is obviously nice, that’s not the main point here,” Mayor Tony Kranz said. “These encroachments into public space, I think, call for the users of that public space, the beneficiaries of that public space, to pay for the public space.” 

In Encinitas, 27 outdoor dining areas absorb 95 parking spaces, most of which are in the public right-of-way (59 public, 36 private). In March 2022, council members directed city staff to conduct a coastal parking study to help advise the development of a permanent outdoor dining ordinance.

City staff said during Wednesday’s meeting they will have results from the study prepared to share with the council in August. 

Currently, the cities of San Diego and Carlsbad charge a right-of-way usage fee of $2.50 and $1.28 per square foot of parking space, respectively. In Encinitas, city staff originally proposed during the meeting that council members implement a $2 right-of-way usage fee.

Councilmember Allison Blackwell proposed raising the rate to $2.50 to match San Diego’s usage fee, which staff noted has the most similar retail prices to Encinitas.

“I don’t want to scare off too many of the outdoor dining areas; we want to encourage it,” Blackwell said. “So, I’m trying to find that right balance.” 

Council members also amended the resolution to include an annual review of the rate in accordance with the Consumer Price Index.

John Edenhofer, co-founder of Culture Brewing on Coast Highway 101, thanked the council for allowing eateries to apply for permits for outdoor dining, which he said kept his business alive during the pandemic.

Edenhofer said the city should continue to make outdoor dining a permanent part of Encinitas culture, and he thinks it is only fair for retailers to pay a parking space fee.

“Of course, we should pay for generating revenue on city property. It’s a matter of what’s fair,” Edenhofer said.

The council also directed city staff to replace the protective orange plastic barriers with earth-toned concrete K-rails, which will serve as a canvas for murals or mosaics in the future. Kranz also amended the resolution to charge the city rather than retailers for the provision and maintenance of K-rails.

Leucadia resident Nancy Deghionno said the city should not bear any costs from the barriers, and all related expenses for outdoor dining should be the restaurant owner’s responsibility. 

Deghionno added that businesses near restaurants with outdoor dining parklets will continue to suffer due to fewer parking spaces downtown. Another store owner in Encinitas, who did not disclose his business during the meeting, said more people have been parking in his lot due to the fewer available spaces downtown. 

“Restaurants have had this benefit for years already and should really pay up for the privilege if they wish to continue to benefit,” Deghionno said in a public comment. “Personally, I think $3 is more appropriate, hoping some restaurants will forego this option and we will get some much-needed parking back in downtown coastal Encinitas.”