City Council Agenda Report
July 15, 2025
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Alex Hamilton, Interim Director of Community Development Nancy Lee, Development Services Manager
SUBJECT: URGENCY ORDINANCE NO. 24-1753U - 10-DAY REPORT ON THE
MORATORIUM TO ESTABLISH, IMPLEMENT, OR OPERATE (TEMPORARILY
OR PERMANENTLY) CONVENIENCE STORES (LIQUOR STORES),
DISCOUNT STORES, PERSONAL USE - LAUNDROMATS,
VEHICLE/AUTOMOBILE - WASHING, PAYDAY LOAN ESTABLISHMENTS,
EMERGENCY SHELTERS, SINGLE-ROOM OCCUPANCY, SUPPORTIVE
HOUSING, AND TRANSITIONAL HOUSING CITYWIDE
Background:
On August 6, 2024, City Council adopted Urgency Ordinance No. 24-1752U, a 45-day moratorium to establish, implement, or operate (temporarily or permanently) convenience stores (liquor stores), discount stores, personal use – laundromat, vehicle/automobile washing, payday loan establishments, emergency shelters, single-room occupancy, supportive housing, and transitional housing city-wide (“Moratorium”). Urgency Ordinance No. 24-1752U included a waiver process for those requesting to establish the listed uses during the Moratorium.
After a 10-day report was received and filed by City Council on September 3, 2024, the Moratorium was extended on September 17, 2024 under Urgency Ordinance No. 24-1753U (see Attachment 1) for an additional 10 months and 15 days and is set to expire on August 5, 2025, unless extended for an additional year by City Council pursuant to Government Code Section 65858(a).
Prior to City Council consideration of the second (and final) extension of the Moratorium, City Council is required to issue a “10-day report”, which describes the measures taken to alleviate the condition in which led to the adoption of Urgency Ordinance No. 24-1753U. Per Government Code Section 65858(d), this action is required before any extension of an urgency ordinance.
City Council
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Convenience stores (liquor stores), discount stores, personal use – laundromat, vehicle/automobile washing, and payday loan establishments - Prior to the adoption of the Moratorium, the establishment and operation of the aforementioned uses was a concern by virtue of their operational characteristics. Staff has researched to determine if these uses may have detrimental effects (i.e., maintenance, proliferation, security issues, loitering, noise, and economic impacts) on the community. To date, staff has completed the following research:
1. Reviewed City business license records to quantify the number of each type of use operating within the City to determine if there is a saturation of these uses;
2. Initiated studies of land use tables for surrounding cities for the same or similar uses to determine if the uses are permitted by right, not permitted or permitted with a discretionary review (such as a conditional use permit);
3. Studied surrounding cities’ development and operational standards for aforementioned uses; and
4. Researched various sources (i.e., American Planning Association, Urban Land Institute), publications and articles on the aforementioned uses.
Due to the various uses and issues studied, additional time is needed for the next steps, which would be for staff to initiate a zoning code text amendment(s) that will clarify definitions of the aforementioned uses and provide additional regulations which may include (but are not limited to) standards for the following:
1. Discretionary review requirements;
2. Distance requirements (i.e., from other uses, from sensitive uses, etc.);
3. Development standards (i.e., minimum lot size, standards for new developments to minimize the need for these uses (i.e., in-unit laundry hookups for new residential units)); and
4. Operational standards (i.e., property maintenance and security).
Emergency shelters, single-room occupancy, supportive housing, and transitional housing (“housing uses”) – During the COVID-19 pandemic, the County of Los Angeles (“County”) operated Project RoomKey at 12500 Firestone Boulevard without input from the community.
Upon closure of Project RoomKey in 2021, individuals who were housed were not provided with an exit plan.
Following the closure of Project RoomKey, the County received a $52 million encampment resolution grant, which included Norwalk. Due to the experience of the Project RoomKey in the City, Norwalk officials requested that Persons Experiencing Homelessness (“PEH”) not be located at 12500 Firestone Boulevard and alternative sites were provided.
Despite the request, the County selected 12500 Firestone Boulevard for a two-year transitional housing program without consideration of City and community interests and an exit plan at the conclusion of the housing program. Given the poor performance of Project RoomKey, City Council directed staff to draft an Urgency Ordinance pursuant to Government Code Section 65858. Since the adoption of the Moratorium, the City and the County have had productive City Council
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discussions about utilizing the former Metro State Hospital located at 11401 Bloomfield Avenue for PEH instead of 12500 Firestone Boulevard.
As a result of the Moratorium on the housing uses, the California Department of Housing and Community Development (“HCD”) issued a Notice of Violation and Corrective Action Letter on September 16, 2024, and after discussions with City staff and HCD, HCD subsequently revoked the City’s 2021-2029 Housing Element Certification.
Following this action, the State of California filed a lawsuit against the City on the grounds of violation of state housing laws. While there has been discussion recently between HCD and City staff on next steps to obtain Housing Element recertification, the possibility of extending the Moratorium for an additional year without the housing uses may be considered by City Council.
A trial date for the pending litigation is scheduled for August 19, 2025. The City Attorney’s Office and the attorney from the California Attorney General’s Office have been engaged in discussions which may bring resolution to the litigation and may include the City taking steps to not extend the Moratorium as it relates to the emergency shelters, single-room occupancy, supportive housing, and transitional housing uses.
On August 5, 2025, staff will present at a noticed public hearing for City Council’s consideration of an additional year extension of the Moratorium.
Fiscal Impact:
N/A
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
The recommended action will further the City’s Strategic Plan Goals 2 and 3 to work in partnership with our community to achieve safe and livable neighborhoods and to create and sustain a resilient and economically prosperous City.
City Council
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Recommended Action:
Staff recommends City Council receive and file this 10-day report pursuant to Government Code Section 65858(d).
Attachments:
Urgency Ordinance No. 24-1753U