STAFF REPORT
Meeting Date: March 18, 2024
To: Honorable Mayor & City Council
From: Michael Forbes, AICP, Director of Community Development Masa Alkire, AICP, Assistant Director of Community
Development/City Planner
Cindy Gordon, AICP, Principal Planner
Subject: Annual Medical Use Ordinance Update
Attachments: 1. BHMC Section 10-3-1620.1
2. Medical Conversions (October 21, 2022 through December 1, 2023)
INTRODUCTION
On September 20, 2022, the City Council adopted an ordinance (22-O-2864) that revised the City’s medical use regulations to allow the conversion of commercial space to certain types of medical uses. The ordinance continued the provisions of an urgency ordinance that had been in place for two years, which was intended to create more flexibility for property owners regarding the use of space in commercially zoned properties during the Covid-19 pandemic when vacancies of commercial spaces were increasing and demand for typical commercial uses (e.g., retail, office, etc.) was decreasing.
The adopted ordinance includes a requirement that the revised regulations be reviewed approximately three years from the date of adoption with a report to the City Council every year thereafter in order to ensure that an increase in medical uses has not created unforeseen adverse impacts to commercial or residential properties and uses.
This is the first annual report and the information provided reflects the period from the ordinance’s effective date (October 21, 2022) through the end of 2023.
DISCUSSION
The revised regulations, outlined in Subsection F of Beverly Hills Municipal Code (BHMC) §10-3-1620.1 (Attachment 2), allow for the establishment of new medical uses in commercial zones throughout the city by converting existing commercial space provided the proposed medical use complies with the following requirements:
• No new medical uses may be located on the ground floor of a building; and Meeting Date: March 18, 2024
• No 'specialty clinic' uses are permitted, as defined in BHMC §10-3-1604.5.
However, ambulatory surgical care uses, as defined in BHMC §10-3-100, are permitted within one operating room with a maximum floor area of 250 square feet or 10% of the total floor area of the overall medical suite floor area, whichever is greater.
Other modifications in the ordinance included the following:
• Established a new definition for ambulatory surgical care, which is defined as “one or more surgical procedures performed by a licensed medical professional that do not require an overnight stay, and may be performed on an outpatient basis”;
• Modified the applicable parking regulations to make them consistent with other commercial uses, at one parking space per 350 square feet (SF); the prior requirement was one parking space per 200 SF; and
• Amended permitted and excluded use sections of the various commercial zone regulations to clarify that medical uses are no longer prohibited so long as they comply with the regulations of the medical use code sections.
Medical Conversion Permit Tracking
During the period from October 21, 2022 and the end of 2023, a total of 28 building permits were issued for the conversion of existing office space into medical space, resulting in the conversion of approximately 81,575 SF of floor area during the approximate 14-month period (Attachment 2). During the urgency ordinance’s effective period, from November 17, 2020 through October 20, 2022 (approximately 23 months), a total of 33 building permits for medical conversion were issued, representing approximately 90,400 SF of floor area.
When comparing the two time periods, the number of building permits issued for medical conversion and the total square footage converted, utilizing a per-month average, has increased beyond that seen during the urgency ordinance’s effective period. This is likely due to the fact that the urgency ordinance did not allow speculative conversion of office space to medical as applicants were required to show that a lease for a medical tenant had been procured and the medical tenant had to provide proof of business tax payment. However, the requirement to provide a lease was removed with the City Council’s consensus with the adoption of the permanent ordinance (once the urgency ordinance had expired), due to concerns regarding the difficulty of implementing this requirement.
Medical conversions continue to be a common request with the City’s Community Development Department with a sustained interest by commercial property owners and brokers. While the amount of office space converted to medical space has increased with the permanent ordinance, staff is not aware of any adverse impacts to commercial or residential properties or uses. Staff’s assessment is that the revised medical use regulations are operating as intended by providing flexibility in the use of commercial space throughout the city, without resulting in a surge of office space conversions to medical or causing unforeseen adverse impacts.
FISCAL IMPACT
There is no fiscal impact to the City for this annual report beyond staff time required to research permits issued for the preceding year. Any medical conversion permit is subject Meeting Date: March 18, 2024
to permitting fees as set forth in the City’s Comprehensive Schedule of Taxes, Fees, and Charges for Fiscal Year 2023-24.
RECOMMENDATION
This report is for information only; no further action is required.
Michael Forbes, AICP
Director of Community Development
Approved By
Attachment 1
BHMC Section 10-3-1620.1
10-3-1620.1: MEDICAL USES:
A. Registered Medical Buildings: Registered medical buildings are buildings that received a certificate of occupancy from the city prior to February 11, 2011, and have received a medical registration letter issued by the Director of Community Development. Registered medical buildings may be used for medical uses provided that the amount of floor area occupied by medical uses does not exceed the amount of floor area occupied by legally permitted medical uses on February 11, 2011, as noted in the medical registration letter, and provided that such medical uses comply with any applicable conditions and requirements, as outlined in the registration letter. In addition, notwithstanding section 10-3-4101 of this chapter, registered medical floor area may be relocated within the building provided that the total amount of floor area occupied by medical uses does not increase beyond the amount of floor area occupied by lawfully permitted medical uses on February 11, 2011.
1. In addition to subsection A above, registered medical buildings may add up to six thousand (6,000) square feet of medical floor area to the building by converting general office space to a medical use, even though the building is not located in a medical overlay zone, if all of the following conditions are met:
a. The building is located on property in one of the following commercial zones: C-3, C-3T-1, C-3T-2, C-3T-3, C-RPD, C-R, C-3A, C-3B, or E-O-PD. b. If the property is located in the pedestrian oriented area, as defined in section 10-3-1653 of this chapter, the community development director issues a minor accommodation pursuant to the provisions of article 36 of this chapter to authorize a medical use to occupy a space in a pedestrian oriented area provided that all other requirements of this section are met and the director makes all of the findings pursuant to subsection 10-3-1655A of this chapter. c. The building contains one or more legal medical uses prior to application for either a building permit or minor accommodation pursuant to this section.
d. No new medical uses are located on the ground floor within the pedestrian oriented area. For development located outside of the pedestrian oriented area, no new medical uses are located within the first forty feet (40') measured from the front building facade, on the ground floor of any building with a depth of one hundred feet (100') or greater. For buildings with a depth of less than one hundred feet (100') and that are located on irregularly shaped lots, medical uses may be permitted in all or part of the first forty feet (40') upon a finding by the director of community development that: a) all other provisions of this subsection B have been met and b) the proposed expansion of medical use does not adversely impact surrounding development. Facades facing a "side street", as defined in section 10-3-100 of this chapter, shall not be considered a front building facade for purposes of this section.
e. Parking for the new medical use is provided pursuant to the requirements of section 10-3-2730 of this chapter or pursuant to a restriping permit issued before December 16, 2005. f. No existing floor area may be removed, demolished or vacated to satisfy the parking requirements for a medical use.
g. The medical use complies with the restrictions of the zone or underlying zone. h. The additional space shall not be occupied by a "specialty clinic" as defined in section 10-3-1604.5 of this article. i. The building owner has submitted documentation in form and content satisfactory to the Director of Community Development that the proposed medical use meets the conditions of this subsection A1.
2. In order to implement the requirements of this section, no building owner shall utilize the provisions set forth in this section to relocate or expand medical uses unless the building owner has submitted documentation to the Director of Community Development, in form and content satisfactory to the Director, documenting the amount of floor area occupied by legally permitted medical uses on February 11, 2011. Such documentation shall be provided no later than August 11, 2011, or the provisions of this section shall not be available to the building owner. This date may be extended by the Director.
Additionally, if the submitted documentation includes any false statements or misrepresentations, then the building owner shall not be able to utilize the provisions of this section.
B. Medical Use Overlay Zone: Buildings that received a certificate of occupancy from the city prior to February 11, 2011, may be used for medical uses if the building is located in the Medical Use Overlay Zone and the medical uses are approved as part of a planned development.
C. Legally Nonconforming Medical Uses: Notwithstanding the provisions of section 10-3-4101 of this chapter, a legal nonconforming medical use located in a building that has been damaged by a disaster to the extent of more than fifty percent (50%) of its replacement value, may be reestablished without application of the Medical Use Overlay Zone, provided the reconstructed building complies with applicable zoning standards, including parking requirements, in place at the time a building permit is issued for the replacement building. In no event shall the amount of floor area occupied by nonconforming medical uses in the replacement building exceed the floor area that would have been permitted in the damaged building.
D. The City Council may, by resolution, establish fees for reviews and approvals required by this section.
E. Cosmetic Spas: Notwithstanding any other provision in this section, a cosmetic spa permitted pursuant to section 10- 3-1620.2 of this article is not subject to the regulations of this section.
F. Establishment Of New Medical Uses: Notwithstanding any other provision in this section, existing commercial spaces that have received certificates of occupancy from the city may be converted to a medical use, and new medical uses may be established in new commercial buildings, upon meeting the following conditions:
1. No new medical uses may be located on the ground floor of a building.
2. No 'specialty clinic' uses, as defined in section 10-3-1604.5 of this article shall be permitted. However, ambulatory surgical care uses, as defined in section 10-3-100, shall only be permitted within one operating room that has a maximum ten percent (10%) of the total floor area of the overall medical suite floor area, but shall not preclude an operating room of up to two hundred fifty (250) square feet.
G. Review By The City Council. The provisions contained in section F above shall be reviewed approximately three (3) years from their adoption with a report to City Council every year, in order to ensure that an increase in medical uses has not created unforeseen adverse impacts to commercial or residential properties and uses. (Ord. 11-O-2602, eff. 2-11-2011; amd.
Ord. 19-O-2786, eff. 8-16-2019; Ord. 20-O-2826, eff. 11-17-2020; Ord. 20-O-2831, eff. 12-8-2020; Ord. 21-O-2852, eff. 10- 26-2021; Ord. 22-O-2864, eff. 10-21-2022)
Attachment 2
Medical Conversions (October 21, 2022
through December 1, 2023)
Address Square Footage
8383 WILSHIRE BLVD 15,282
150 RODEO DR S 1,609
433 CAMDEN DR N 2,525
9301 WILSHIRE BLVD 1,802
433 CAMDEN DR N 2,813
350 BEVERLY DR 2,397
9100 WILSHIRE BLVD 3,314
150 RODEO DR S 1,098
9777 WILSHIRE BLVD 1,747
301 CANON DR 1,466
9777 WILSHIRE BLVD 2,621
9301 WILSHIRE BLVD 2,279
9454 WILSHIRE BLVD 2,942
450 ROXBURY DR 4,888
434 BEDFORD DR N 1,057
9100 WILSHIRE BLVD 1,311
433 CAMDEN DR N 3,294
433 CAMDEN DR N 2,173
433 CAMDEN DR N 2,105
433 CAMDEN DR N 4,249
8484 WILSHIRE BLVD 1,284
9777 WILSHIRE BLVD 1,600
8484 WILSHIRE BLVD 1,922
150 RODEO DR 3,179
350 BEVERLY DR S 5,413
8530 WILSHIRE BLVD 3,052
8530 WILSHIRE BLVD 2,753
9025 WILSHIRE BLVD 1,400
TOTAL SQUARE FOOTAGE 81,575
MEDICAL CONVERSIONS
October 21, 2022 - December 31, 2023