Many restaurants, coffee shops, retail stores and other Carlsbad businesses that moved outdoors during the COVID-19 pandemic will keep their expanded operations, according to a report provided to the City Council Tuesday.

To help support local businesses affected by health restrictions that forced them to close or dramatically curtail operations, the Carlsbad City Council voted in 2020 to temporarily suspend certain land use standards. This allowed businesses to either operate on city property such as sidewalks and the street, or private property like parking lots, or both, depending on the location.

Many businesses took advantage of the opportunity to move operations outdoors. The city issued 28 permits for businesses to operate on city property in the Village and Barrio area and 100 permits to businesses citywide who wanted to operate outdoors on private property. Businesses are not allowed to operate on city property outside of the Village and Barrio area. Most of the businesses that moved outdoors were eating and drinking establishments. Other uses include outdoor displays for retail businesses, gyms and personal services.

As COVID restrictions began to lift, city staff sought feedback from businesses and the public about next steps. In 2021, residents and business owners who responded to an online survey generally supported continuing outdoor business activities.

• 88% of businesses said outdoor operations helped them recoup a portion of lost revenues
• Most respondents said they enjoyed eating outdoors and did not notice a negative effect on parking. About 40% of respondents thought the reduction in parking was noticeable
• 51% said they would like Carlsbad to have more private outdoor dining areas.
• About 37% of respondents did not want to see the city allow more curb cafes, and 19% wanted fewer than there are today.

According to Tuesday’s report to the City Council, city staff will work with local businesses to provide direction and guidance if they want to make their temporary outdoor operations permanent. So far, the majority of businesses with temporary permits have moved back indoors. Most that have remained either already meet the criteria to be allowed once the temporary suspension of rules expires or could meet the criteria with minor modifications. Those operating as curb cafes will need to begin paying the annual fee to offset the cost of parking.

If businesses do not make their outdoor activations permanent, those within the Village and Barrio neighborhoods can continue to operate on city property until the public health orders are repealed, at a date not yet identified. Temporary activations citywide on private property will be able to continue until Jan. 1, 2024.

More information
June 7 City Council staff report
Outdoor space activation for businesses
Eric Lardy, Principal Planner, eric.lardy@carlsbadca.gov, 442-339-2712