City Council Report
City Council Meeting: January 25, 2022
Agenda Item: 7.B
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To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Introduction and Adoption of an Emergency Interim Ordinance Amending Interim Zoning Regulations Established by Emergency Interim Zoning Ordinance Number 2636 (CCS) and Extended and Amended by Emergency Interim Zoning Ordinance Numbers 2658, 2667 and 2682 (CCS) for Economic Recovery of the BC (Promenade) District and Those Portions of the BC (2nd and 4th Street) District Bounded by Second Street to the West, Broadway to the South, 4th Street to the East, and Wilshire Boulevard to the North to Increase Flexibility for Automobile/Vehicle Showrooms.
Recommended Action
Staff recommends that the City Council:
1. Introduce and adopt an Emergency Interim Ordinance amending interim zoning regulations established by Emergency Interim Zoning Ordinance Number 2636 (CCS) and extended and amended by Emergency Interim Zoning Ordinance Numbers 2658, 2667 and 2682 (CCS) for economic recovery and increased occupancy in the City’s BC (Promenade) District and those portions of the BC (2nd and 4th Street) District Bounded by Second Street to the West, Broadway to the South, 4th Street to the East, and Wilshire Boulevard to the North by allowing automobile/vehicle showrooms of all fuel types.
Summary
As retail environments across the region and country continue to evolve, there is a need to adjust allowed uses and activities to enable economic recovery and provide increased flexibility to minimize vacancies in the district. The Third Street Promenade, as Santa Monica’s primary retail destination, has been undertaking such an evolution, allowing new and diverse uses previously not permitted, including automobile dealerships for alternative fuel vehicles. Recent inquiries have been made to potentially enable all vehicle types to have showrooms Downtown. The change can be immediately 2 of 11
enabled with the existing interim Zoning Ordinance for the area that is in effect through the end of 2022.
Background
The Third Street Promenade has long served as a local, regional, national, and international destination, attractive for its blend of retail, dining, services, outdoor atmosphere, entertainment, and proximity to the beach. The ongoing COVID-19 pandemic and subsequent economic recovery has been difficult for many segments of the economy, and Santa Monica’s Downtown area, including the Promenade, is experiencing the same uncertainty with the vacancy rate along the Promenade recently rising to almost 25%. Staff and community stakeholders continue to be concerned about the health and vitality of Downtown overall and the Third Street Promenade area in particular.
In December 2011, prior to the adoption of the Downtown Community Plan, Council adopted Ordinance Number 2384 (CCS), amending the Zoning Ordinance to allow showrooms for alternative fuel vehicles. The policy was continued with the 2017 adoption of the Downtown Community Plan. At the time of its original adoption, alternative fuel vehicles were still an emerging technology, but due to the sustainability aspects of alternative fuel vehicles and changing marketing for such vehicles, the City permitted alternative fuel vehicle showrooms in the Downtown area. Since the adoption of Ordinance 2384 in 2011, the number of traditional fuel vehicle manufacturers that have expanded product lines to include hybrid and electric vehicles has increased rapidly, with many manufacturers announcing plans to electrify large portions of their fleets over the next decade.
Interim Zoning Ordinance Changes
The changes proposed with this ordinance are the latest in an ongoing effort to be responsive to the rapidly evolving retail and Downtown land use marketplace.
Council adopted Emergency Interim Zoning Ordinance Number 2636 (CCS) (“IZO 2636”), on May 12, 2020, which established interim zoning regulations to support the 3 of 11
economic recovery of local businesses impacted by the COVID-19 pandemic for the Third Street Promenade area bounded by 2nd Street to the west, Broadway to the south, 4 th Street to the east, and Wilshire Boulevard to the north. The interim regulations streamlined processes for simple changes of use to remove barriers to the establishment of common neighborhood-serving uses. Changes permitted the multitenant Food Halls and Light Industry uses such as breweries, roasteries, and artisan activities; the initial ordinance also eliminated the need for a Conditional Use Permit (CUP) to convert space from a food serving use to retail or other uses.
Subsequent amendments to the Emergency IZO adopted by Council on November 10, 2020 (“IZO 2658”), April 13, 2021 (“IZO 2667”), and September 28, 2021 (“IZO 2682”) made minor changes to allow more flexible loading standards, clarify physical training use standards, prohibit fast-food restaurants, enable design and use flexibility, and extend the interim zoning regulations until December 31, 2022. The most recent decisions by Council enable liquor stores, medical and dental offices, grooming and pet stores, and tattoo and body modification parlors – one of which is already open for business on the Promenade.
Past Council Actions
Meeting Date Description
05/12/20
(attachment A)
Adoption of Emergency Interim Zoning Ordinance Number 2636 to Support and Facilitate the Economic Recovery of the Third Street Promenade Area
11/10/20
(attachment B)
Adoption of Emergency Interim Zoning Ordinance Number 2658 to Extend Interim Zoning Regulations Adopted by Emergency Interim Zoning Ordinance Number 2636 for Economic Recovery in the City’s Downtown Districts
4/13/21
(attachment C)
Adoption of Emergency Interim Ordinance Number 2667 Making Minor Changes, Corrections and Clarifications to Interim Zoning Regulations Established by Emergency Interim Zoning Ordinance Number 2636 (CCS) and Extended by Emergency Interim Zoning Ordinance Number 2658 (CCS) for Economic Recovery in the City’s BC (Promenade) District and Those Portions of the BC (2nd and 4th Street) District Bounded by Second Street to the West, Broadway to the South, 4th Street to the East, and Wilshire Boulevard to the North
9/28/21 Adoption of an Emergency Interim Ordinance Number 2682 4 of 11
(attachment D) Making Minor Changes, Corrections and Clarifications to Interim Zoning Regulations Established by Emergency Interim Zoning Ordinance Number 2636 (CCS) and Extended by Emergency
Interim Zoning Ordinance Number 2658 (CCS) for Economic Recovery in the City’s BC (Promenade) District and Those Portions of the BC (2nd and 4th Street) District Bounded by Second Street to the West, Broadway to the South, 4th Street to the East, and Wilshire Boulevard to the North
Discussion
Due to the continued economic uncertainty arising out of the COVID-19 pandemic, the high vacancy rate along the Promenade, and the number of traditional fuel vehicle manufacturers that have expanded product lines to include hybrid and electric vehicles, including plans to electrify large portions of their fleets over the next decade, staff recommends one additional change to increase flexibility of use and opportunities for economic recovery by enabling automobile dealer showrooms for vehicles of any fuel type within the Third Street Promenade area. As indicated in Specific Limitation #8, only automobile dealer showrooms will continue to be permitted. Ancillary activities such as automobile repair, storage, and servicing would not be permitted.
This change would be consistent with the overall retail and auto industry trend of locating showrooms in high pedestrian areas such as shopping districts and centers.
Having a wide range of retailers, experiences, and attractions on the Third Street Promenade supports it as a destination and community resource.
The proposed change to the IZO land use table is detailed below. The table is consistent with the formatting of the existing land use table. A key of designations is contained in the bulleted list before the table and the section ends with the limitations indicated in the table itself, such as L(1) and are listed after the table. The recommendation would change L(8) by deleting the reference to alternative fuel vehicles. In the table:
• “P” designates permitted uses.
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• “L(#)” designates limited uses, which are permitted by right, provided they comply with specific limitations listed at the end of the table. • “MUP” designates use classifications that are permitted after review and approval of a Minor Use Permit.
• “CUP” designates use classifications that are permitted after review and approval of a Conditional Use Permit.
• “-“ designates uses that are not permitted.
Use Classification BC
(Promenade)
BC
(2nd & 4th
Streets)
Additional Regulations
Residential Uses
Residential Housing Types See sub-classifications below.
Single Unit Dwelling L(1) L(1)
Accessory Dwelling Unit P P
Section 9.31.025,
Accessory Dwelling Units
and Junior Accessory
Dwelling Units
Junior Accessory Dwelling Unit P P
Section 9.31.025,
Accessory Dwelling Units
and Junior Accessory
Dwelling Units
Duplex L(1) L(1)
Multiple-Unit Structure L(1) L(1)
Senior Citizen Multiple-Unit Residential L(1) L(1)
Single-Room Occupancy Housing L(1) L(1)
Group Residential L(1) MUP, L(1)
Congregate Housing L(1) CUP, L(1)
SMMC Section 9.31.110,
Congregate and
Transitional Housing
Senior Group Residential L(1) MUP, L(1) SMMC Section 9.31.310, Senior Group Residential
Elderly and Long-Term Care L(1) L(1)
Emergency Shelters CUP/L(1) L(1),
L(6)/CUP
Family Day Care See sub-classifications below.
Large L(1) L(1) SMMC Section 9.31.140,
Family Day Care, Large
Small L(1) L(1)
Residential Facilities See sub-classifications below.
Residential Care, General L(1) L(1) SMMC Section 9.31.270, Residential Care
Facilities
Residential Care, Limited L(1) L(1)
Residential Care, Senior L(1) L(1)
Hospice, General L(1) L(1)
Hospice, Limited L(1) L(1)
Supportive Housing L(1) L(1)
Transitional Housing L(1) L(1)
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Use Classification BC
(Promenade)
BC
(2nd & 4th
Streets)
Additional Regulations
Public and Semi-Public Uses
Adult Day Care L(1) L(1)
Child Care and Early Education Facilities P P
SMMC Section 9.31.120,
Child Care and Early
Education Facilities
Colleges and Trade Schools, Public or Private L(1) L(1) Community Assembly L(15) P
Community Gardens - P
Cultural Facilities P P
Hospitals and Clinics L(1) L(1)
Park and Recreation Facilities, Public P P
Public Safety Facilities P P
Schools, Public or Private L(1) P
Social Service Centers - P
SMMC Section 9.31.350,
Social Service Centers
Commercial Uses
Animal Care, Sales, and Services See sub-classifications below.
Grooming and Pet Stores P L(5)/CUP
No more than 10 dogs or
cats can be kept
overnight
Pet Day Care Services - MUP
Veterinary Services P MUP
Automobile/Vehicle Sales and Service See sub-classifications below.
Alternative Fuels and Recharging Facilities - -
Automobile Rental L(10) L(10)
Automobile Storage Use - -
New Automobile/Vehicle Sales and Leasing L(8),
L(5)/CUP
L(8),
L(5)/CUP
Additions 7,500 sq ft or less to Automobile/
Vehicle Sales and Leasing buildings existing
as of 7/06/2010
- -
SMMC Section 9.31.070
Automobile/ Vehicle
Sales, Leasing, and
Storage
Additions larger than 7,500 sq ft to
Automobile/Vehicle Sales and Leasing
buildings existing as of 7/06/2010
- -
Automobile/Vehicle Repair, Major - -
Automobile/Vehicle Service and Repair, Minor - -
Automobile/Vehicle Washing - -
Service Station - -
Towing and Impound - -
Banks and Financial Institutions See sub-classifications below.
Banks and Credit Unions - -
Check Cashing Businesses - -
Business Services L(15) L(5)/CUP
Commercial Entertainment and Recreation See sub-classifications below.
Cinemas & Theaters, up to 99 seats P P
Cinemas & Theaters, more than 99 seats P CUP
Convention and Conference Centers P CUP
Large-Scale Facility L(21)/CUP L(21)/CUP
Small-Scale Facility P L(5)/CUP SMMC Section 9.31.340
Small Scale Facility
Fortunetelling P P
Eating and Drinking Establishments See sub-classifications below. 7 of 11
Use Classification BC
(Promenade)
BC
(2nd & 4th
Streets)
Additional Regulations
Bars/Nightclubs/Lounges P P
Restaurants, Full-Service, Limited Service &
Take-out (2,500 sq ft and smaller, including
Outdoor Dining and Seating)
L(22) P SMMC Section 9.31.040,
Alcoholic Beverage
Sales
SMMC Section 9.31.280,
Restaurants, Limited
Service, and Take-Out
Only
SMMC Section 9.31.200,
Outdoor Dining and
Seating
Restaurants, Full-Service, Limited Service &
Take-out (2,501 – 5,000 sq ft, including Outdoor
Dining and Seating)
L(22) P
Restaurants, Full-Service, Limited Service &
Take-out (greater than 5,000 sq ft, including
Outdoor Dining and Seating)
L(22) P
Food Hall P P
Equipment Rental - -
Food and Beverage Sales See sub-classifications below.
Convenience Market L(5)/CUP L(5)/CUP
SMMC Section 9.31.040,
Alcoholic Beverage
Sales
Farmers’ Market P P
General Market L(12)/ CUP L(12)/ CUP
SMMC Section 9.31.040,
Alcoholic Beverage
Sales
Liquor Stores P CUP
Funeral Parlors and Mortuaries - -
Instructional Services L(1),
L(5)/CUP L(5)/CUP
Live-Work L(1)(13) L(13) SMMC Section 9.31.170,
Live-Work
Lodging See sub-classifications below.
Bed and Breakfast P MUP SMMC Section 9.31.090,
Bed and Breakfasts
Hotels and Motels P CUP
Maintenance and Repair Services - -
Nurseries and Garden Centers - L(5)/CUP
SMMC Section 9.31.220,
Outdoor Retail Display
and Sales
Offices See sub-classifications below.
Business and Professional L(1) L(1)
Creative L(1) L(1)
Medical and Dental P L(1)
Walk-In Clientele L(1) L(5)/CUP
Outdoor Newsstands P P
SMMC Section 9.31.210,
Outdoor Newsstands
Parking, Public or Private - CUP
Personal Services See sub-classifications below.
General Personal Services P L(5)/CUP SMMC Section 9.31.230, Personal Service
Physical Training L(17),
L(21)/CUP
L(17),
L(5)/CUP
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Use Classification BC
(Promenade)
BC
(2nd & 4th
Streets)
Additional Regulations
Tattoo or Body Modification Parlor P MUP SMMC Section 9.31.230, Personal Service
Retail Sales See sub-classifications below.
Building Materials Sales and Services - -
SMMC Section 9.31.220,
Outdoor Retail Display
and Sales
General Retail Sales, Small-Scale P L(5)/CUP
General Retail Sales, Medium-Scale P CUP
General Retail Sales, Large-Scale - -
Medical Marijuana Dispensaries - -
SMMC Section 9.31.185,
Medical Marijuana
Dispensaries
Pawn Shops - -
Swap Meets - -
Industrial Uses
Artist’s Studio L(2) L(2)
Commercial Kitchens - -
Industry, Limited L(9) L(9)
Media Production See sub-classifications below.
Support Facilities L(1) L(1)
Transportation, Communication, and Utilities Uses
Bus/Rail Passenger Stations P P
City Bike Share Facility P P
Communication Facilities See sub-classifications below.
Antennas and Transmission Towers - -
Equipment within Buildings - -
Light Fleet-Based Services - -
Utilities, Major - -
Utilities, Minor P P
Specific Limitations:
(1) Limited to upper floors, and on the ground floor where the entire tenant space shall be located at least 25 feet from the front property line, except for residential units shall be limited to upper floors only.
(2) A minimum depth of 25 feet from the front parcel line adjacent to a street for the entire ground-floor street frontage shall be designed to accommodate interactive uses. For purposes of this limitation, interactive uses shall be commercial uses with an interactive element, including, but not limited to, retail sales, exhibitions, displays, demonstrations, or instruction.
(5) Permitted if within buildings existing as of the date the ordinance codified in this Chapter is effective. Permitted within new buildings, except:
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(a) No individual ground floor tenant space shall occupy more than 7,500 square feet of floor area and/or exceed 50 linear feet of ground floor street frontage without a Conditional Use Permit.
(b) Ground floor tenant spaces in the Santa Monica Place are not subject to size limitations.
(6) Limited to shelters containing less than 55 beds; Conditional Use Permit required for emergency shelters with 55 or more beds.
(8) Limited to alternative fuel vehicle automobile/vehicle dealer showrooms only. (9) A minimum depth of 25 feet from the front parcel line adjacent to a street for the entire ground-floor street frontage shall be designed to accommodate interactive uses. For purposes of this limitation, interactive uses shall be commercial uses with an interactive element, including, but not limited to, retail sales, dining, demonstrations, or instruction.
(10) Permitted as an ancillary use to support a primary use. (12) General Markets greater than 15,000 square feet require approval of a Conditional Use Permit, except general markets in the Mixed-Use Boulevard district greater than 25,000 square feet require approval of a Conditional Use Permit.
(13) If the commercial use requires a MUP or CUP, an application shall be required in accordance with SMMC, Chapter 9.41. Even if the commercial use would otherwise be permitted, no such use shall be approved where, given the design or proposed design of the live-work unit, there would be the potential for adverse health impacts from the proposed use on the people residing in the unit. An example of a potential health impact is the potential for food contamination from uses that generate airborne particulates in a unit with an unenclosed kitchen. (15) Limited to the ground floor with frontage along 2nd Court and 3rd Court alleys or to upper floors.
(17) Youth-serving personal services, physical training requires review and approval of a passenger loading and drop-off plan by the Director. 10 of 11
(21) No individual Fitness Center tenant space shall exceed 100 linear feet of ground floor street frontage without the approval of a Conditional Use Permit. (22) Restaurant, Limited-Service and Take-Out establishments with frontage on the Third Street Promenade and the following characteristics shall be prohibited:
(a) More than 150 locations nationwide at the time that the application for the establishment is deemed complete by the City; and
(b) Characteristics, including but not limited to, orders placed at a walk-up window, counter, or machine; payment prior to food consumption; and food served with disposable, one-time, or limited-use wrapping, containers, or utensils.
Alternative Actions
Council may choose to further limit the locations of auto dealer showrooms if there is concern of a potential over-concentration of the use or if there is concern with the appropriateness of the use on the Third Street Promenade versus Second and Fourth Street. The Council could adopt the recommendation with a modification setting a limit to the number of showrooms per block face. Alternatively, the Council could adopt the recommendation to only allow the use on the Third Street Promenade and not include the BC (Second and Fourth Streets) District.
Environmental Analysis
The proposed Interim Zoning Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State Implementation Guidelines (common sense exemption). Based on the evidence in the record, it can be seen with certainty that there is no possibility that the proposed changes may have a significant effect on the environment. Neither the general plan land use designations nor zoning designations for the properties within the Third Street Promenade Area will be changed. The current development standards and land use regulations for the properties within the Third Street Promenade Area were analyzed in an Environmental Impact Report (SCH #2013091056) certified in 2017 in conjunction 11 of 11
with the adoption of the City’s Downtown Community Plan. Therefore, no further environmental review under CEQA is required.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended actions at this time. Increasing flexibility in leasing should also help to boost other important City revenue streams, including sales tax, which are essential to the City’s fiscal health.
Prepared By: Beth Rolandson, Administrative Services Officer Approved Forwarded to Council
Attachments:
A. Adoption of Emergency Interim Zoning Ordinance Number 2636 Support and Facilitate Economic Recovery of Third Street Promenade Area 5/12/2020 (Web Link)
B. Adoption of Emergency Interim Zoning Ord Number 2658 Extending Interim Zoning Regulations Adopted by Emergency IZO No. 2636 for Economic Recovery in Downtown District 11/10/20 (Web Link)
C. Adoption of Emergency Interim Ord No. 2667 Making Minor Changes, Corrections & CClarifications to Interim Zoning Regulations Established by Emergency IZO No. 2636CCS 4/13/21 (Web Link)
D. Adoption of Emergency Interim Zoning Ordinance No. 2882 E. CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes20210125 DRAFT F. PowerPoint Presentation