STAFF REPORT
COMMUNITY
DEVELOPMENT
DATE: December 12, 2023
TO: Justin Hess, City Manager
FROM: Patrick Prescott, Community Development Director VIA: Simone McFarland, Asst. Director Community Development BY: Mary Hamzoian, Economic Development Manager
Katie Picha, Administrative Officer
SUBJECT: Update on Citywide Outdoor Dining in Private Parking Lots
RECOMMENDATION
Direct staff to 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, 2024.
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.
To 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, 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.
2 On December 6, 2022, City Council directed staff to conduct a study on the conversion of private parking lots to outdoor dining areas as part of the ongoing specific plan processes and temporarily suspended enforcement of municipal code parking requirements through December 31, 2023. However, staff needs more time to complete this study and is therefore requesting City Council to direct staff to continue the temporary suspension of enforcement of municipal code parking requirements on these restaurants that are currently using their parking lots for dining through December 31, 2024.
DISCUSSION
Ongoing Economic Uncertainty
The devastating economic impacts of the Safer at Home Orders in effect since March 19, 2020, are still being felt. Even though the 2023 National Restaurant Association1 reported that three out of four operators are close to normal, or a new, more positive normal, the focus is on sustaining growth over the next year. It was also reported that:
• 92% of operators report higher food costs as a significant challenge. • 62% of restaurants are understaffed.
• Competition from other restaurants is expected to be more intense than it was in 2022.
• Ninety-six percent of operators experienced supply delays or shortages of key food or beverage items in 2021, and these challenges continued in 2022. • 66% of consumers are more likely to order food for takeout than they were in 2019. • 64% of consumers consider restaurants essential to their lifestyle while 55% of consider takeout and delivery essential.
• More than 90,000 restaurant 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.
As the restaurant industry continues to recover from the impacts of the Pandemic, new challenges have emerged with the rising cost of food, goods, and staff wages caused by inflation and state laws such as Assembly Bill 1228 which will require increasing minimum wage for fast food employees to $20 an hour beginning April 1, 2024. These conditions continue to negatively impact the restaurant industry and therefore it is important to study the opportunity for outdoor dining in private parking lots in the City of Burbank.
There 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
1 2023 State of the Restaurant Industry” February 2023, https://restaurant.org/research-and-media/research/research-reports/state- of-the-industry/ "Restaurant Industry Facts at a Glance" November 2022, https://restaurant.org/research-and- media/research/industry-statistics/national-statistics/ 3 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 by enhancing their capacity to provide the public with alternative options for dining.
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 City Council direct staff to 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, 2024, or such earlier time when a permanent program has been formally approved or rejected. 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.
COMMUNITY OUTREACH
Staff has received minimal complaints regarding the impacts of outdoor dining in private parking lots and has received positive feedback from the restaurants currently utilizing this option. Restaurants that have established outdoor dining within private parking lots have created new business and revenue opportunities. Staff is currently in the process of conducting community outreach through the study and will provide a more detailed update on community outreach upon completion. This includes conducting me etings with the community, and 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 to ensure that the City is connecting with su rrounding 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.
ENVIRONMENTAL REVIEW
Temporarily suspending the enforcement of parking requirements on restaurants that are currently offering outdoor dining in their private parking lots is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15303 (Class 3: New Construction or Conversion of Small Structures) permitting location of limited numbers of new, small facilities or structures where only minor modifications are made in the exterior of the structures, Section 15305 (Class 5: Minor Alterations to Land Use Limitations) permitting minor alterations in land use limitations that do not result in any changes in land use or density , as well as Section 15301 (Class 1: Existing Facilities) permitting minor alterations to existing faciliti es involving negligible expansion of existing use. The City’s Guidelines governing the suspension of enforcement , the minimal expansion of operations associated with these few businesses, and the temporary nature of this authorization ensure negligible or no expansion of existing restaurant uses.
FISCAL IMPACT
There are no costs to the City to temporarily suspend enforcement of parking requirements against restaurants that are currently offering outdoor dining in their private 4 parking lots through the end of 2024. Property owners and/or the tenant will incur the cost and shoulder the burden of continuing to maintain these outdoor dining areas.
CONCLUSION
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. 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 re duce constraints and help our businesses survive.
Staff is in the process of studying 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. 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 through December 31, 2024, or such earlier time when a permanent program has been formally approved or rejected.
ATTACHMENT
Attachment 1 – December 6, 2022 Staff Report