SOLANA BEACH — Restaurants, cafes, and bars with outdoor dining in public spaces such as sidewalks and parking areas will need to pay a licensing fee to the city of Solana Beach beginning in 2027, the City Council agreed last week.
The fee, approved unanimously by the City Council on May 6, follows the adoption of an ordinance regulating outdoor dining that went into effect in February. The ordinance requires businesses to obtain a conditional use permit to offer outdoor dining and sets requirements for allowable space.
The city proposed charging businesses an annual fee of $20 per square foot of outdoor dining space in public areas, in addition to an annual consumer price index adjustment of no more than 2.5%.
The fee would be collected during the annual renewal of the business certificate.
“The delayed implementation would provide businesses approximately six months to prepare for the fee,” said Assistant Planner John Delmer.
At Pizza Port on Coast Highway 101, the annual fee for the existing 320-square-foot outdoor dining area would be $6,400, according to city staff.
The $20-per-square-foot fee is lower than those of neighboring cities, Delmer said. Del Mar charges $21.42 per square foot, San Diego charges $25.12, and Encinitas charges $30.96.
City Council members Jewel Edson and Dave Zito, who serve on the small business subcommittee, said they worked closely with local businesses and city staff to develop a fee that would be feasible for everyone.
“This has been well received. Councilmember Zito and I have been on this subcommittee quite some time to get to this point, and we’ve worked hand in hand with the business community to make sure that it was something that was acceptable to everyone and beneficial to everyone,” said Edson.
Fee revenue would go toward city maintenance and enforcement costs.
The ordinance allows outdoor dining in various areas of a business, including the frontage, sidewalks, private parking areas, and public off-street parking. The size of outdoor dining areas is limited to 50% of the business’s interior public-use area.
The square footage used to calculate the outdoor dining area fee does not include the path of travel to the business entrance, which must be at least 4 feet wide.
Solana Beach previously allowed businesses to operate outdoor dining areas under a temporary permit process to help restaurants stay afloat during the COVID-19 shutdowns. The new conditional use permits allow it to continue on a more permanent basis.
At the same May 6 meeting, the City Council clarified the language of the outdoor dining ordinance regarding the types of shade structures permitted in public spaces.
The ordinance states that canopies, umbrellas and shade structures are permitted, while pop-up canopies and tents are not. City officials clarified that the construction of permanent shade structures in the public right-of-way is not permitted, including wooden patio covers that extend from the side of a building.
Mayor Lesa Heebner asked that the word “canopy” be removed from the ordinance, noting that it could be interpreted as permanent rather than removable.
“I can see that a canopy, if I’m thinking of four supports and some sort of fabric over the top, nobody’s gonna take it down. It’s gonna be there kind of permanently,” Heebner said. “In my opinion, I would think we would just want to have an umbrella that can be put up or put down.”
Delmer said the city uses “awning” to refer to a canopy, but that rules about awnings are addressed elsewhere in the municipal code.
City officials also reiterated that umbrellas in outdoor dining areas, as well as awnings, may display only the establishment’s name and type. Restaurants can also place movable menu boards in outdoor dining areas.
