STAFF REPORT
Meeting Date: December 6, 2022
To: Honorable Mayor & City Council
From: Laura Biery, Marketing and Economic Sustainability Manager Timothea Tway, City Planner
Mandana Motahari, City Architect
Subject: Request for City Council to Extend the Temporary No-Fee OpenBH Program for an Additional 9 Months through September 30, 2023
Attachment: 1. Letter From Lawrence Leisure
INTRODUCTION
This item provides an opportunity for City Council to review extending the temporary OpenBH program for an additional 9 months through September 30, 2023 while the OpenBH Subcommittees continue their work. This item will also provide a brief update on the progress made by the OpenBH Subcommittees to date.
DISCUSSION
In response to the COVID-19 pandemic, the City of Beverly Hills created the OpenBH program in June 2020 to allow businesses to temporarily expand (open up) their services to adjacent outdoor areas such as private parking lots, the public right of way (sidewalks), and metered parking spaces (parklets) through a no-fee Special Event Permit. This item provides the opportunity to discuss extending the temporary OpenBH program for an additional 9 months through September 30, 2023 while the OpenBH Subcommittees continue their work on the long-term conversion of the program.
Background
Since the program’s creation in June 2020, 149 businesses have received a permit to participate in OpenBH by expanding their business model to the sidewalk, parking lots, or in metered parking spaces (parklets). Currently, 87 businesses are using the OpenBH program to provide services outside, of which 75 are restaurants or hotels utilizing OpenBH for outdoor dining service, with new businesses joining as recently as November 2022. The remaining 12 OpenBH permit holders include retail stores, houses of worship, COVID testing sites, and salons who are continuing to use the program to provide outdoor services or line queuing.
At the March 1, 2022, City Council Meeting, the City Council approved the extension of the OpenBH program to December 31, 2022. Additionally, during the same meeting the BEVERL
HILLS
id
Meeting Date: December 6, 2022
City Council approved the continuance of the temporary street closure at the 100 Block of N. Cañon Drive to allow for the Spago temporary outdoor dining tent through December 31, 2022. The NusrEt temporary outdoor dining tent in the 100 Block of N.
Cañon Drive however did not receive approval to continue beyond March 31, 2022. This was due to opposition from the neighboring property owner and the tent was subsequently removed and instead converted to a parklet.
Subcommittee Updates
At the October 26, 2021, City Council Meeting, the City Council approved the formation of two Ad Hoc Subcommittees to work on the long-term conversion of the OpenBH program for outdoor dining participants. An update on the progress made to date is included below for each Subcommittee:
Design and Operating Standards Subcommittee (Mayor Bosse and Councilmember Nazarian).
o Architecture firm Lorcan O’Herlihy Architects selected to create design standards for parklets.
o Subcommittee has met several times and held two community outreach focused meetings to date (June 13 and August 17) with a third community outreach focused meeting scheduled for December 12.
o Outreach surveys have been conducted surveying both existing business participants, residents, diners, and other businesses.
o Topics discussed thus far have covered the following:
Safety measures integrated into the design and not outwardly invisible
Parklets should not be regulated by overall size, but rather by factors like business frontage and vehicular visibility Some visibility from street to storefront should be maintained Design guidelines should prioritize flexibility and choice for business owners
Canopies (umbrellas and overhead shade) are essential to diner comfort
Pedestrian paths should be distinct and unobstructed
Prototype to be developed with a kit of parts for selection Code and Fee Changes Subcommittee (Vice Mayor Gold and Councilmember Friedman)
o Subcommittee held several meetings to develop recommendations related to permanent code changes and fees that will be shared with the business community and formalized for approval by the full City Council at a future meeting date.
o Topics discussed thus far have covered the following:
potential fee changes for the permanent program, including the establishment of a tiered fee system
potential zoning code changes for the permanent program that address:
allowed location of open air dining
parking requirements for open air dining
required width of path of travel on sidewalks
standards for umbrellas and barriers, and
a new approval process for open air dining
Meeting Date: December 6, 2022
For the purpose of today’s meeting, staff is requesting approval to extend the temporary OpenBH program beyond December 31, 2022 for an additional 9 months through September 30, 2023. Staff however is not requesting an extension of the street closure and temporary outdoor dining tent for Spago due to an opposition letter (Attachment 2) received from the property owner in the 100 block of N. Cañon Drive. Staff is currently working with Spago to determine the removal plan for the temporary outdoor dining tent to be scheduled for January 2023.
While the Ad Hoc Subcommittees continue their work, the following extension options are provided for City Council consideration. These options also provide the existing OpenBH program participants with timelines for budgeting and renewals as they evaluate making long-term investments in their existing OpenBH concepts. The timelines also allow time for additional outreach and the adoption of code changes to the municipal code that will be required to implement the new fees and guidelines.
Thus, the first date for extension of the program for Option A is 9 months from now with a date of September 30, 2023. Additional options are also provided:
Extend No Fee
Program
Additional
Renewal Cycles
Return to Council
with Fee Schedule
Fees Begin No
Earlier Than
Option A: An additional 9
months to
9/30/2023
Businesses can
budget for 3
additional 90-Day
no fee renewals
Prior to 9/30/2023 10/1/2023
Option B: An additional 12
months to
12/31/2023
Businesses can
budget for 4
additional 90-Day
no fee renewals
Prior to 12/31/2023 1/1/2024
Option C: Other duration as recommended by the City Council The City Council previously approved that other OpenBH participants, such as houses of worship, salons, and retail stores, comprise a small percentage of the OpenBH permit holders and will continue under the existing no-fee OpenBH program until 30-days beyond the end of the local emergency before returning indoors or paying for a permit.
FISCAL IMPACT
A discussion regarding the fiscal impact of a long-term fee-based program will be brought back to the City Council in the coming months based on the timeline selected.
This discussion will also include a timeline for implementation of a fee-based program along with any continued fee waivers or stop-gap measures until such a program may be implemented.
The current OpenBH program is a combination of waived permit fees, waived inspection fees, loss of revenue from parking meters/valet operations, and traffic control equipment purchase, installation and maintenance costs. While the total fiscal impact of the waiver of special event permit fees for OpenBH depends on the number of businesses participating at any given time, using the current number of permit holders of 87 businesses, the following is the fiscal impact of extending the temporary OpenBH program:
Meeting Date: December 6, 2022
Extend No
Fee Program
Date
Additional
Renewal
Cycles
Fiscal
Impact of
Additional
Waived
Permit Fees*
Fiscal
Impact of
Additional
Meter
Loss**
Additional
Fiscal
Impact
Total
Option A: An additional
9 months to
9/30/2023
Businesses can
budget for 3
additional 90-
Day no fee
renewals
$850,338 $212,345.60 $1,062,684
Option B: An additional
12 months to
12/31/2023
Businesses can
budget for 4
additional 90-
Day no fee
renewals
$1,133,784 $283,127.40 $1,416,911
Option C: Other timeframe as recommended by the City Council *If the City continues to waive permit fees, assuming the number of active permits remains at 87 and at the current average rate of $1,086 per permit per month. **Approximate parking meter revenue loss from 29 parklets using a combined 81 meters between S. Beverly Drive (12 meters at $300.10/month avg) and the Business Triangle (69 meters at $289.75/month avg) combined.
RECOMMENDATION
It is recommended that the City Council provide feedback regarding the duration for the extension of the no fee temporary OpenBH program.
Based on City Council direction, staff will return to the City Council in the coming months regarding design standards, code changes, and fee structure for the long-term conversion of the OpenBH Program dining participants.
Nancy Hunt-Coffey
Assistant City Manager
Approved By
CENED
November 1, 2022
Liii BosseMayor of Beverly Hills
455 North Rexford Drive
Beverly Hills, California 90210RE: Open BH Program and Spago Restaurant Outdoor Tent on North Canon Drive Leisure & Carpenter Properties / 166 and 174 North Canon Drive, Beverly Hills Dear Ms. Bosse,I am the President of Leisure & Carpenter that is the landlord for 166 and 174 North Canon Drive where Coldwell Banker and Spago are the current tenants.
Approximately two years ago, Coidwell Banker vacated 166 North Canon Drive due to the COVID 19 pandemic, the sound barrier wall, and the Metro Purple Line construction project. During that time, the City granted temporary permits to both Spago and Nusret to construct outdoor diningtents that ultimately occupied the entire end of North Canon Drive at Wilshire Blvd.
Approximately 6 months ago with the COVID 19 epidemic under control, the City of Beverly Hills mandated the removal of the Nusret tent in response to concerns raised by Robert Hayman, the owner of the Hayman Building located at 190 North Canon Drive. As he articulated at the time, the Nusret tent had diminished access to his building making it very challenging for him to retain his existing tenants and secure new tenants.Our challenges at 166 North Canon Drive are materially greater than Robert Hayman’s. As you areaware, our property is blocked on the south side by the wall with very limited access to Wilshire and the Spago tent on the other side and much of the front of the building. It no surprise that it has been extremely challenging to attract any new tenants. While we can’t solve the wall issue in the short term, the City can certainly give us some relief relative to the Spago tent.
Given the economic distress that we’re now experiencing and the diminished COVID 19 rationale, we implore the City not to consider any extension of Spago’s outdoor tent permit beyond December 31, 2022.
To be clear we are very supportive of the City’s approval of smaller parkiets like those erected by Nusret, II Pastaio, Porta Via, and many more restaurants on the street. We view this as a reasonable compromise for Spago allowing them to retain that outside dining experience (complimenting their existing indoor patio) while they transition more of their unused internal seating capacity back into service.
RECEIVED
!ev 3 - 2022
BY: .
November 1, 2022
Lili Bosse Mayor of Beverly Hills
455 North Rexford Drive
Beverly Hills, California 90210 RE: Open BH Program and Spago Restaurant Outdoor Tent on North Canon Drive Leisure & Carpenter Properties/ 166 and 174 North Canon Drive, Beverly Hills Dear Ms. Bosse, I am the President of Leisure & Carpenter that is the landlord for 166 and 174 North Canon Drive where Coldwell Banker and Spago are the current tenants.
Approximately two years ago, Coldwell Banker vacated 166 North Canon Drive due to the COVID 19 pandemic, the sound barrier wall, and the Metro Purple Line construction project. During that time, the City granted temporary permits to both Spago and Nusret to construct outdoor dining tents that ultimately occupied the entire end of North Canon Drive at Wilshire Blvd. Approximately 6 months ago with the COVID 19 epidemic under control, the City of Beverly Hills mandated the removal of the Nusret tent in response to concerns raised by Robert Hayman, the owner of the Hayman Building located at 190 North Canon Drive. As he articulated at the time, the Nusret tent had diminished access to his building making it very challenging for him to retain his existing tenants and secure new tenants.
Our challenges at 166 North Canon Drive are materially greater than Robert Hayman's. As you are aware, our property is blocked on the south side by the wall with very limited access to Wilshire and the Spago tent on the other side and much of the front of the building. It no surprise that it has been extremely challenging to attract any new tenants. While we can't solve the wall issue in the short term, the City can certainly give us some relief relative to the Spago tent.
Given the economic distress that we're now experiencing and the diminished COVID 19 rationale, we implore the City not to consider any extension of Spago's outdoor tent permit beyond December 31, 2022.
To be clear we are very supportive of the City's approval of smaller parklets like those erected by Nusret, II Pastaio, Porta Via, and many more restaurants on the street. We view this as a reasonable compromise for Spago allowing them to retain that outside dining experience (complimenting their existing indoor patio) while they transition more of their unused internal seating capacity back into service.
As you can imagine, this is very time sensitive as we have been challenged in leasing the 166 North Canon property with time running out on the current Coldwell Banker contract. The economic loss, should we not be able to lease the property, exceeds $90,000 per month based on the current rent. This loss will have a meaningful impact on family members that rely on this income.
We look forward to your response as time is of the essence. I would be more than welcome to meet in person (or Zoom) to discuss.
Thank you for your consideration.
Regards,
Lawrence B LeisurePresidentLeisure & Carpenter190 North Canon Drive, Suite 304 Beverly Hills, CA 90210
As you can imagine, this is very time sensitive as we have been challenged in leasing the 166 North Canon property with time running out on the current Coldwell Banker contract. The economic loss, should we not be able to lease the property, exceeds $90,000 per month based on the current rent. This loss will have a meaningful impact on family members that rely on this income.
We look forward to your response as time is of the essence. I would be more than welcome to meet in person (or Zoom) to discuss.
Thank you for your consideration.
Regards,
Lawrence B Leisure President Leisure & Carpenter
190 North Canon Drive, Suite 304
Beverly Hills, CA 90210