Attachment I
Recommended Findings for Approval of the Ocean Avenue Project Development Agreement Findings
1. The proposed Development Agreement is consistent with the objectives, policies, general land uses and programs specified in the general plan and any applicable specific plan. The 2010 Land Use and Circulation Element (LUCE) and 2017 Downtown Community Plan (DCP) are the City’s applicable general and specific plans. The Ocean Avenue Project site is located in the 2010 LUCE’s Downtown District and has a Downtown Core General Plan Land Use Designation. Policies in this District are geared primarily toward reinforcing the Downtown as the focus of the City, encouraging a broad mix of uses and new investment in the District that creates dynamic daytime and evening activity, and reinforces the Downtown as the place with the greatest concentration of activity in the City. As outlined in the LUCE, this broad mix of uses in the Downtown includes retail, hotels, office, high-density residential, and entertainment and cultural uses (Goal D.7, Policy D.7.1). With respect to Downtown residential development, units with a diversity of types, forms, sizes, tenure, and affordability for all income levels are encouraged (Policy D7.7). Policy D1.4 also states that new and expanded hotels and other visitor-serving uses are also to be encouraged. General LUCE discussion about the Downtown District recognizes that the Downtown is considered a true urban place where streets are important pedestrian activity spaces, buildings are generally the tallest in the City, and the intensity of development is higher than in the rest of the City (page 1.3.8). The LUCE’s Downtown District also specifically identifies the subject property as one of seven sites in the Downtown District to focus new investment given its accessibility to transit and ability to accommodate mixed-use development, contribute to the pedestrian-oriented environment, and support substantial community benefits; (Goal D1.5). DCP Goal LU1 supports the Downtown Community Plan area as a high quality, mixed-use district offering opportunities for housing for people across the income spectrum, jobs, arts and culture, local-serving retail and community/visitor gathering places. The proposed project is consistent with these LUCE and DCP goals and policies based on the project’s mix of uses comprised of a new full-service hotel, provision of 64 marketrate housing units, 25 deed-restricted affordable housing units, and 11 rentcontrolled housing units, retail and dining, and a full range of community benefits.
These community benefits include the commitment to construct and operate a Cultural Uses Campus open to the public; protection of two designated historic Landmark Buildings; provision of publicly-accessible open space; and a development plan that includes buildings with a range of building heights from 53’ to a maximum height of 130’ while still providing substantial ground level open space on the parcel.
2. The proposed Development Agreement is compatible with the uses authorized in the district in which the real property is located, in that the subject property is located in the Downtown District that allows multi-family residential uses and a wide range of commercial and community-serving uses. The proposed Development Agreement is consistent with LUCE Goal D7, Policy D7.1, and DCP Goal LU1.2 which all seek to create a balanced mix of uses in the Downtown that reinforces the area’s role as having the greatest concentration of activity in the City. DCP Policy LU1.2 supports accommodating the development of uses that support a 17 hours a day/7 days a week environment that meets the needs of businesses and residents; such uses include retail goods and services, food stores, restaurants and cafés, hotels, health clubs, entertainment and comparable uses. The project proposes a full-service hotel, other commercial retail and restaurant uses as part of the project, and a Cultural Uses Campus that will provide opportunities for residents and visitors alike to experience a world-class cultural use venue. Further, the project proposes 100 residential units, of which 25 units will be deed-restricted affordable housing units for households of varying income levels within the Downtown, consistent with LUCE Policy D7.7
3. The proposed Development Agreement is in conformity with the public necessity, public convenience, general welfare, and good land use practices, in that it allows for the redevelopment of an underutilized property that would benefit from reinvestment to increase employment, create new transit occupancy taxes paid to the City, and to create a mixed-use project consisting of a full-service hotel, new housing units in the Downtown, and a new Cultural Uses Campus available to the public that is consistent with the 2010 Land and Use Circulation Element’s vision for the area. The proposed project would also preserve and adaptively reuse two designated City Landmark Buildings as part of the Cultural Uses Campus.
Moreover, the project will provide community benefits including affordable housing, publicly-accessible open space on the parcel, and provide monetary fees that would support mobility, construction of affordable housing, parks and recreation, early childhood initiatives, and recycled water infrastructure expansion in the City.
Further, the project seeks to be consistent with the City’s sustainability goals by committing to LEED® Platinum certification with a project designed to achieve 15% less energy than required by California Energy Code, using recycled, non-potable water sources for landscape irrigation and other County-approved uses.
4. The proposed Development Agreement will not be detrimental to the health, safety and general welfare, in that the Development Agreement would allow for the redevelopment of an existing, underutilized property that is consistent with the 2010 LUCE and 2017 DCP vision for the area. The proposed project will be located in an urbanized area and is consistent with other similar improvements in the area and does not have the potential to disrupt the urban environment or cause health or safety problems. The proposed project provides 100 new residential units, of which 25 units will be deed-restricted affordable units. The project will feature commercial uses on the ground floor, a variety open spaces on the property, including an approximately 5,000 SF publicly-accessible rooftop viewing deck. The project will also provide community benefits including the aforementioned deedrestricted affordable housing as well as payment of fees that would support the City’s affordable housing development fund, mobility/transportation, early childhood initiatives, recreation and parks, and community economic equity/opportunity initiatives.
5. The proposed Development Agreement will not adversely affect the orderly development of the property, in that the Development Agreement is contingent upon the review and approval of a specific site plan consistent with recognized urban design principles that reflect the goals and policies of the City of Santa Monica which were established through a long range planning process and are reflected in the 2010 Land Use and Circulation Element of the City’s General Plan and the 2017 Downtown Community Plan. Further, the project will be subject to a construction mitigation plan that will be reviewed and approved prior issuance of a building permit for the project.
6. It is estimated that the proposed Development Agreement’s net fiscal impact to the City’s General Fund is estimated at $6.2M ($3.44M net new) during the first year of stabilized operations. This net fiscal impact associated with the project would be a result of the project generating substantial new Transit Occupancy Tax for the City and commercial uses would generate City business license taxes and sales tax. The project would also provide an estimated total of $6,065,000 in monetary contributions that would support the City’s affordable housing development fund, mobility/transportation projects, early childhood initiatives, parks and recreation, and community economic equity/opportunity initiatives.
Local Coastal Program Land Use Plan Text Amendment Findings
1. The proposed amendment is consistent in principle with the goals, objectives, policies, land uses, and programs specified in the adopted 2010 Land Use and Circulation Element, 2017 Downtown Community Plan, the City Council-adopted 2018 Local Coastal Program Land Use Plan that has not been yet been certified by the California Coastal Commission (Draft LUP), with the 1992 Partially-Certified Local Coastal Program Land Use Plan (1992 LUP). Specifically, the proposed mixed-use hotel project includes lodging, retail, dining, and other commercial uses, along with market-rate and deed-restricted affordable residential units in a manner that protects water quality and does not adversely impact public access to the shoreline and along the coast and provides visitor-serving using on the east side of Ocean Avenue as outlined by the LUP. The 1992 LUP Amendment is consistent in principle with the goals, objectives, policies, land uses, and programs specified in the adopted LUCE, DCP, 1992 LUP, and Draft LUP. Specifically, per New Development Policy 64, the subject property is located on the east side of Ocean Avenue in subarea 3b and shall accommodate new visitor-serving uses including hotels, restaurants, commercial recreational uses, and visitor serving retail uses.
Residential uses are permitted on upper floors. Further, the proposed project includes a range of community benefits and incorporates a wide range of sustainable design features and commitments into its design and operations.
These include dual plumbing and use of recycled water, 100% Green Power, implementation of a TDM Program, inclusion of an on-site system for rainwater capture and reuse, and EV vehicle charging infrastructure. The project will provide new deed-restricted affordable housing units, replacement rent-controlled housing units and new market-rate residential units in order to provide more housing opportunities in non-sensitive Coastal Zone areas. The proposed project would redevelop underutilized buildings and surface parking lots and provide a hotel with up to 120 hotel rooms. This project therefore provides new lodging opportunities and new subterranean parking in the City’s Coastal Zone. The project also includes a Cultural Uses Campus that incorporates and rehabilitates two City-designated Landmarks, is designed to attract and exhibit works of significant local, international, established and emerging artists, including architects, and will have discounted entry fees for all students/youth. The project includes a rooftop observation/viewing deck that would be open to the public. Moreover, the project will also provide monetary contributions that would support mobility, construction of affordable housing, parks and recreation, and early childhood initiatives. As such, the proposed project is consistent with the policies applicable to the site as set forth in the both the 1992 LUP and the Draft LUP.
2. The public health, safety, and general welfare require the adoption of the proposed amendment in that the general welfare of the City is enhanced when the development of a mixed-use hotel project includes both market-rate and deedrestricted affordable housing that will serve households with a variety income levels. The proposed project will also generate new transient occupancy taxes paid to the City which will in turn support the general welfare by allowing the City to provided needed services and programs to the community.