ESCONDIDO -- A staff proposal to restrict the types of businesses that move into closed auto dealerships was seen as too onerous Wednesday by the Escondido City Council.

The Planning Commission last month also rejected the proposal, which city staff members had recommended as a way to control what might become of car dealerships that close during the recession.

In a 3-2 vote, with Mayor Lori Holt Pfeiler and Councilwoman Olga Diaz opposed, the council rejected the proposal, which would have required businesses to apply for conditional use permits to move into closed dealerships. Such requirements give municipalities a say in how properties can be used by requiring a review of each proposal.

While rejecting the proposed restriction, the council majority asked city staffers to return with design guidelines that could be applied to businesses moving into the closed dealerships.

City staff members had proposed the conditional use permit requirement after the recent closure of Witt Lincoln-Mercury on Escondido Boulevard and Budget Used Car Sales on North Broadway.

With the recession taking a heavy toll on the car industry, staff members said they were preparing for the possibility of more dealerships closing.

Director of Community Development Jonathan Brindle told council members Wednesday the city's concern was that any business that meets building code and parking requirements could move into former auto dealerships, which typically have large lots with no landscaping, multiple buildings and no defined entrances.

The proposed restriction would have applied only to the city's two dozen used-car dealerships and a few new-car dealers outside of the auto park. All other dealerships in the city already are subject to strict guidelines.

"My concern is we would over-regulate something that's already regulated," Diaz said.

Pfeiler questioned why only closed auto dealerships would trigger the requirement for conditional use permits.

"We either have a general commercial zone and it works for us or it doesn't," she said. "My question is why car dealerships are so special."

Ken Lounsberry, an attorney who represents Zeedee Erler, owner of the Witt Lincoln-Mercury site, said he does not think it's unreasonable for closed businesses to be "dressed up a little bit," but he found the requirement for a conditional use permit too much of a burden on businesses considering renting his client's property.

"My favorite line from the Planning Commission meeting was from a staff member who said, 'A use might be proposed that we don't like,'" he said. "Who is 'We?' It's just not fair."

Contact staff writer Gary Warth at (760) 740-5410 or gwarth@nctimes.com.

ESCONDIDO: City aiming to restrict what happens to abandoned auto dealers