STAFF REPORT
C
OMMUNITY
DEVELOPMENT
DAT
E: December 6, 2022
T
O: Justin Hess, City Manager
F
ROM: Patrick Prescott, Community Development Director
VIA: Simone McFarland, Asst. Director Community Development BY: Mary Hamzoian, Economic Development Manager
S
UBJECT: Update on Outdoor Dining in Private Parking Lots
RECOMMENDATION
1. Direct staff to conduct a study on the conversion of private parking lots to outdoor dining areas as part of the ongoing specific plan processes.
2. Temporarily suspend enforcement of municipal code parking requirements otherwise imposed on restaurants that are currently utilizing their private parking lots for dining, while staff studies the potential for more permanent conversion of private lots, through December 31, 2023.
BACKGROUND
Since March 2020, the restaurant sector was faced with multiple challenges as a result of the COVID -19 Pandemic (Pandemic) and related State and Local Health Orders , requiring closures, operational limitations and mask mandates . On May 19, 2020, City Council approved the Economic Recovery Plan, which included amongst other things strategies to support the local economy by allowing restaurants to operate outdoors in their private parking lots.
T
o help support the restaurant community through the ongoing economic uncertainties of the Pandemic, for nearly three years, City Council adopted a series of Resolutions and Urgency Ordinances to increase outdoor dining by allowing expanded sidewalk dining, dining in private parking lots, and in-street parklet dining in Downtown Burbank. On July 14, 2020, the City Council adopted Ordinance 20-3,941 temporarily allowing restaurants to use their private parking lots for outdoor dining and waiving Burbank Municipal Code parking requirements. On December 10, 2020, this Ordinance was extended to June 30, ATTACHMENT 1 - 1
2 2021 and on April 27, 2021, the Ordinance was extended to December 31, 2021. On December 14, 2021, the Ordinance was once again extended to December 31, 2022.
DISCUSSION
Ongoing Economic Uncertainty
The devastating economic impacts of the Safer at Home Orders in effect since March 19, 2020, are still being felt. According to the 2022 State of the Industry Report published by the National Restaurant Association1:
• More than half of restaurant operators said it would be a year or more before business conditions return to normal.
o Food, labor, and occupancy costs are expected to remain el evated, and continue to impact restaurant profit margins in 2022.
• Ninety-six percent of operators experienced supply delays or shortages of key food or beverage items in 2021, and these challenges still continue in 2022. • Fifty-one percent of adults say they aren’t eating at restaurants as often as they would like, an increase of six percentage points from pre-Pandemic estimates.
Furthermore, the latest national statistics from The National Restaurant Association 2 report that:
• Restaurant industry sales in 2021 were down $65 billion from 2019's pre-pandemic levels.
• More than 90,000 r estaurant locations are temporarily or permanently closed because of the Pandemic.
• 9 in 10 restaurants have fewer than 50 employees.
• 7 in 10 restaurants are single-unit operations.
• Restaurants employ more minority managers than any other industry. • 41% of restaurant firms are owned by minorities – compared to 30% of businesses in the overall private sector.
T
here are currently less than a dozen restaurants in Burbank that are utilizing outdoor dining in their private parking lots. The restaurant industry continues to face economic challenges, which include difficulties with hiring and retaining staff , increasing inflation and supply chain issues, and loss of revenue from less daytime workforce population as some of the City’s largest employ ers are still offering work from home op tions. Allowing for continued outdoor dining in private parking lots will help restaurants regain financial stability b y enhancing their capacity to provide the public with alternative options for dining.
As previously stated, City Council approved an extension of the temporary allowance of outdoor dining in private parking lots through December 31, 2022. With the new date 1 "2022 State of the Restaurant Industry" February 2022, https://restaurant.org/research-and- media/research/research-reports/state-of-the-industry/ (accessed August 1, 2022). 2 "Restaurant Industry Facts at a Glance" November 2022, https://restaurant.org/research-and- media/research/industry-statistics/national-statistics/ (accessed November 9, 2022).
ATTACHMENT 1 - 2
3 approaching, staff recommends that City Council direct staff to study the effect s of and alternatives for a more permanent continued use o f dining areas in private parking lots.
This analysis would coincide with work currently underway to update and establish new specific plans in the Golden State District, Downtown Burbank, and the Media District. It is staff’ s assessment that these long -range planning efforts that are slated to be completed in the coming year would be the best forum for public input and to establish a more permanent solution through objective development standards and future zoning code amendments. This process will allow that any future codified regulations are vetted with the public as part of the specific plan preparation and adoption proces s. Therefore, to continue supporting restaurants that are utilizing outdoor dining in their private parking lots, and provide time to formally study and publicly vet the potential for a more permanent program, it is recommended that Council temporarily suspend enforcement of Burbank Municipal Code parking requirements imposed on existing restaurants that are currently utilizing their private parking lots for dining areas until December 31, 2023, or such earlier time when a permanent program has been formally approved or rejected.
Outdoor Dining Study
Continuing to allow for outdoor dining in private parking lots will help restaurants regain financial stability by enhancing their capacity and providing the public with alternative options for dining.
The City has received positive feedback from both restaurants able to expand their dining areas, and patrons who enjoy the alternative option to dine outside. Restaurants that have established outdoor dining within private parking lots have created new business and revenue opportunities.
Staff has received minimal complaints regarding the impacts of outdoor dining in private parking lots. A dditional analysis of this outdoor dining approach through the current specific plan development and update process is recommended to understand whether the conversion or limited provision of parking for restaurants is feasible, and what potential impacts would result from that change. Undertaking this analysis as part of the specific plan process will allow the community to also evaluate as needed changes to parking standards. Some additional elements to be analyzed may include:
• Understanding if current minimum parking requirements are greater than demand; • Impacts to any surrounding uses, such as restaurants that are near residential neighborhoods;
• Understanding the relationship of allowing restaurants to have limited or reduced parking in comparison to other non-residential uses;
• Whether there are existing tools such as Shared Parking, Parking Reduction, or administrative use permits that could allow for the continued operation of outdoor dining in private parking lots for specific locations; and • Developing design and engineering standards to ensure that locations that include any form of built structure (e.g., platforms, shading, etc.) are safe and accessible.
As part of any additional analysis, staff would propose conducting meetings with restaurants and businesses that have created outdoor locations to better understand the needs, use, and demands. Economic Development staff will be working with City Planning ATTACHMENT 1 - 3
4 to ensure that the City is connecting with surrounding businesses and neighborhoods to understand current conditions as they relate to parking, noise disturbances, and any other potential impacts or concerns that could be a consequence of additional parking lot dining locations.
As restaurants continue to seek recovery and build resiliency, Burbank must do what it can to work with our business community during these uncertain economic times , which includes preserving the opportunity for local restaurants to maintain their ability for outdoor dining. Without these measures in place, many restaurants in Burbank do not have existing outdoor dining areas or the ability to expand their dining on sidewalks.
Temporarily suspending the enforcement of parking requirements on restaurants that are currently offering outdoor dining in their private parking lots until December 31, 2023 would give our restaurants additional opportunity to thrive, and allow staff to conduct a study of the impacts that a long-term program may have.
FISCAL IMPACT
There are no costs to the City to temporarily sus pend enforcement of parking requirements against restaurants that are currently offering outdoor dining in their private parking lots through the end of 2023. Property owners and/or the tenant will incur the cost and shoulder the burden of continuing to maintain these outdoor dining areas.
CONCLUSION
Consistent with the Economic Recovery Plan and to help support local business during the current state of economy, staff is seeking to continue allowing restaurants to operate outdoors in their private parking lots by temporarily suspending enforcement of parking requirements against these restaurants. Local restaurants continue to require support and opportunities for recovery. This is a time for the City to continue to be flexible in its requirements using out-of-the-box thinking to reduce constraints and help our businesses survive. Therefore, staff recommends that City Council direct staff to temporarily suspend parking requirements against restaurants that are currently providing outdoor dining locations on their private parking lots. Staff recommends that City Council direct staff to further study the impacts of outdoor dining as part of the proposed specific plans as a vehicle to facilitate a future set of objective development standards as part of a zone text amendment that provides more permanent solutions to create more outdoor dining opportunities to benefit local businesses while still working with the community to create a safe, beautiful, and thriving community.
ATTACHMENT
None.
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