Malibu City Council to hear appeal over proposed motel at former La Salsa site
By Judy Abel · Fri Jul 24 2026
Malibu Township Council challenges approval of plan citing affordable housing, wastewater, parking, and public safety concerns
The Malibu City Council met on Wednesday to consider an appeal of a Planning Commission resolution regarding coastal development at the former La Salsa restaurant site. The site owner, Carbon Investments, a Ventura real estate company, is proposing the conversion of nine residential units into a nine-room motel, a proposal that has sparked debate over affordable housing, wastewater concerns, traffic, and the future of short-term visitor accommodations in the city.
Editor's Note: This article was written before the meeting to provide background and context on the topic. The Malibu Times will report on the outcome of the meeting in next week's edition. A link to watch the full meeting is provided below.
The restaurant site at 22800 Pacific Coast Highway has long since been vacant, but there are existing residential units in the back. At a special meeting, held on July 22, one day after The Malibu Times went to press, council members will hear Appeal No. 25-009 filed by the Malibu Township Council challenging Planning Commission Resolution No. 25-62, which approved a Coastal Development Permit and Conditional Use Permit for Carbon Investments.
The project would convert nine existing residential units into motel rooms while repurposing the vacant former La Salsa restaurant building as the motel manager's office. No new construction, additions, demolition or expansion of the property's wastewater system are proposed. According to city staff, the project is a change of use only and does not alter the site's existing buildings.
The approximately one-third-acre beachfront property was originally developed in 1955. County records show the last comprehensive site plan was approved in 1986, allowing nine rental units, a commercial building, and associated parking. Since then, unauthorized landscaping and parking modifications were made, leading the city to require restoration of the original parking configuration through an Administrative Plan Review approved in 2023. The property has also been brought into compliance with Malibu's Dark Sky lighting ordinance.
City staff note that although the residential units were originally approved as rental apartments, they have operated as short-term rentals since 2015. By 2022, all nine units held valid short-term rental permits, and the staff report states the property has operated without receiving complaints.
Planning staff concluded that converting the existing short-term rental units into a motel represents a conforming commercial visitor-serving use within the Commercial Visitor Serving-1 zoning district. The Planning Commission agreed, approving the project in December after the applicant completed a room-rate analysis requested by the California Coastal Commission.
Opponents, however, argue the proposal raises broader policy issues that extend beyond a simple change of use.
Bill Sampson, speaking on behalf of the Malibu Township Council (MTC), said the appeal centers on concerns that approving the project could create an unintended precedent throughout Malibu.
"The Township Council is opposed because this is a dangerous precedent," he said. "Apartment-type housing can essentially be converted into motels without even those rather meager controls that we have.” The MTC is also concerned about the lack of an on-site manager. “They are not local at all,” noted MTC’s Jo Drummond, who added, "they would not be able to get out there in minutes with any emergency.”
According to Sampson, relying on a telephone number instead of requiring a resident manager could create problems if emergencies or disturbances occur.
MTC's appeal also questions whether the existing parking is adequate and raises concerns about reports of longstanding septic system issues on the property.
Jefferson Wagner, owner of Zuma Jay Surf Shop across Pacific Coast Highway, echoed concerns about wastewater infrastructure while also expressing disappointment over the loss of lower-cost housing.
Wagner, whose business has operated at the location for more than 50 years, said the apartments previously provided some of Malibu's more affordable rental housing before tenants' leases were not renewed.
"We are supposed to be meeting our low-cost housing numbers," Wagner said. "We're losing low-cost housing, and now we're gaining short-term rentals."
Wagner said he is not categorically opposed to visitor accommodations but believes Malibu should carefully consider the cumulative impacts of replacing residential units with tourist lodging.
His greatest concern, however, involves the property's wastewater system.
"The septic system is failing," Wagner said, citing city records showing frequent pumping of the system over an extended period. He argued that if neighboring commercial properties have been required to install advanced wastewater treatment systems, similar standards should apply here.
"If the guys next door had to come up to code and do the advanced onsite wastewater treatment system, why doesn't this guy?" Wagner asked.
Sampson also pointed to the property's location along one of Malibu's busiest stretches of Pacific Coast Highway, saying additional visitor traffic could affect an already congested corridor. "It's right where it's all happening," he said. "It affects everybody's quality of life,” adding, “Have adequate parking and have somebody there to maintain order.”
City staff, however, maintain that because no physical expansion is proposed and the buildings already exist, the project qualifies for a categorical exemption under the California Environmental Quality Act. The staff report also notes that no expansion of the existing onsite wastewater treatment system is included in the application.
You can watch the meeting on the City's YouTube channel. The Malibu Times will follow up with a separate article after the meeting.