City Council
Report
City Council Meeting: February 28, 2023
Agenda Item: 10.B
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To: Mayor and City Council
From: David Martin, Director, City Planning
Subject: Introduction and First Reading of an Interim Zoning Ordinance Eliminating Prohibition of Certain Restaurants in Establishments with Frontage on the Third Street Promenade
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines; and
2. Introduce for first reading an Interim Zoning Ordinance eliminating the prohibition of certain restaurants with frontage on the Third Street Promenade.
Summary
The Third Street Promenade’s success has resulted from the creation of an authentic urban retail, dining, and cinema experience. As the economic recovery from COVID-19 continues and the retail landscape evolves, the Promenade’s competitive advantage will depend on the ability to deliver on a range of unique dining, retail, and entertainment uses with an emphasis on promoting a diverse base of eating establishments. It is not the intent to create a Promenade experience that could be found in any number of other Southern California cities. However, in light of current economic conditions and the high vacancy rate along the Promenade, staff recommends eliminating the prohibition of certain restaurants with frontage on the Third Street Promenade and restore the ability to allow a full range of Limited-Service and Take-Out Restaurants. This would increase flexibility of use and opportunities for economic recovery by enabling additional dining options on the Promenade for the duration of the interim ordinance. 2 of 6
Background
In 2017, the City Council adopted the Downtown Community Plan (DCP) which set forth a vision for the continued vitality of the Third Street Promenade as a major public space framed by retail and restaurant uses that form unique experiences enjoyable to both residents and visitors. The DCP values the retention of the Downtown’s authenticity, encourages local uses, and promotes unique visitor experiences not found in every neighborhood.
The IZO adopted in November 2019 created a new land use classification for “Restaurant, Fast Food” applicable only to the BC (Promenade) zone as establishments having the following:
(a) More than 100 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.
Typically, such establishments utilize standardized signage or décor, and permit consumption of food and beverages on the premises within a short period of time or taken off the premises. The IZO prohibited fast food restaurants in establishments with frontage on the Third Street Promenade. In addition, the land use classification for “Restaurant, Limited-Service and Take-Out” was modified to not include Fast Food Restaurant uses. The IZO was subsequently extended in January 2019.
On January 26, 2021, Council made permanent the interim prohibition on fast food uses with frontage on the Promenade. However, to facilitate the ease in identifying these types of establishments and implementing the regulations, creating new or modifying existing land use definitions that would only be applicable to one specific zoning district were not created as was done with the IZO. Instead, the criteria identifying these types of Restaurant, Limited-Service and Take-Out uses were added as a Specific Limitation #22 to the land use regulations table in Zoning Ordinance Section 9.10.040. In addition, 3 of 6
in order to provide additional flexibility in light of the economic conditions due to COVID19, the applicability threshold for establishments prohibited from occupying locations with frontage on the Promenade was increased from 100 to 150 locations nationwide at the time that the application for the establishment is deemed complete by the City.
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 27%. In addition to economic impacts that threaten the health, safety and economic welfare of its citizens and businesses, high vacancy rates may lead to public safety impacts, including, but not limited to, increase calls for emergency services. The Council, staff, and community stakeholders continue to be concerned about the health and vitality of Downtown overall and the Third Street Promenade area in particular.
Past Council Actions
Meeting Date Description
11/27/18
(attachment A)
Introduction and First Reading of an Ordinance to Amend Santa Monica Municipal Code Section 9.10.040 to Prohibit Certain Fast Food Restaurants in Establishments with
Frontage on the Third Street Promenade
01/08/19
(attachment B)
Introduction and Adoption of an Urgency Interim Ordinance Extending Urgency Interim Zoning Ordinance 2594 (CCS)
Prohibiting Fast Food Restaurants on the Third Street
Promenade
01/26/21
(attachment C)
Second Reading and Adoption of an Ordinance of the City Council of the City of Santa Monica Amending Santa Monica Municipal Code Section 9.10.040 to Prohibit Certain Fast Food Restaurants in Establishments with Frontage on the Third Street Promenade
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Discussion
The Promenade’s success has resulted from the creation of an authentic urban retail, dining, and cinema experience. As the economic recovery from COVID-19 continues and the retail landscape evolves, the Promenade’s competitive advantage will depend on the ability to deliver on a range of unique dining, retail, and entertainment uses with an emphasis on promoting a diverse base of eating establishments. It is not the intent to create a Promenade experience that could be found in any number of other Southern California cities. However, in light of current economic conditions and the high vacancy rate along the Promenade, staff recommends eliminating the prohibition of certain restaurants with frontage on the Third Street Promenade and restore the ability to allow a full range of Limited-Service and Take-Out Restaurants. This would increase flexibility of use and opportunities for economic recovery by enabling additional dining options on the Promenade for the duration of the interim ordinance.
Currently Specific Limitation #22 in the land use regulations table in Santa Monica Municipal Code Section 9.10.040 reads as follows:
(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.
The proposed Interim Zoning Ordinance would eliminate the applicability of Specific Limitation #22 which applies to establishments with frontage on the Promenade.
An interim ordinance is effective 30 days after second reading of the ordinance.
Pursuant to SMMC Section 9.46.090(C), an interim ordinance shall be of no further force and effect 60 days from its effective date. The City Council may extend the interim ordinance up to 60 months or adopt a permanent ordinance. 5 of 6
Alternative Action
Should Council decide not to eliminate the prohibition of certain Restaurant, LimitedService and Take-Out establishments with frontage on the Promenade, an alternative action could be to amend the applicability threshold for establishments prohibited on the Promenade (Specific Limitation #22) and increase the number of locations from 150 to 500. This amendment would provide increased flexibility for dining options while still retaining the Promenade’s authenticity, encouraging local uses, and restricting establishments that have more than 500 locations nationwide.
Environmental Analysis
The proposed ordinance is categorically 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 ordinance 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. 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 action.
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Prepared By: Tony Kim, Principal Planner
Approved Forwarded to Council
Attachments:
A. City Council Meeting - November 27, 2018 (Web Link)
B. City Council Meeting - January 8, 2019 (Web Link)
C. City Council Meeting - January 26, 2021 (Web Link)
D. CDD--IZO re Fast Food on Promenade 022823