City Council
Report
City Council Meeting: April 25, 2023
Agenda Item: 10.B
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To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Introduction and First Reading of an Interim Zoning Ordinance Extending Interim Zoning Regulations Adopted by Interim Zoning Ordinance 2738 (CCS) to Eliminate the Prohibition of Certain Restaurants 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 extending interim zoning regulations adopted by Interim Zoning Ordinance 2738 (CCS) eliminating the prohibition of certain restaurants with frontage on the Third Street Promenade.
Summary
On March 14, 2023, Council adopted Interim Zoning Ordinance Number 2738 (CCS) (IZO 2738) which adopted interim zoning regulations to eliminate the prohibition of certain chain fast food restaurants with frontage on the Third Street Promenade. In accordance with Santa Monica Municipal Code Section 9.46.090(C), IZO 2738 is set to expire on June 12, 2023. Staff proposes an extension of the interim zoning regulations that would continue until April 13, 2028. Over this timeframe, staff will monitor the number of restaurants that open on the Promenade as a result of this IZO and will provide periodic updates to Council. Depending on the circumstances, Council could make amendments to the IZO or repeal it.
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Discussion
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 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.
In light of current economic conditions and the high vacancy rate along the Promenade, on March 14, 2023, Council adopted an IZO that eliminated the prohibition of certain restaurants with frontage on the Third Street Promenade and restored the ability to allow a full range of Limited-Service and Take-Out Restaurants. This increases flexibility of use and opportunities for economic recovery by enabling additional dining options on the Promenade for the duration of the interim ordinance.
The Interim Zoning Ordinance is proposed to remain unchanged as it is still too early to gauge the benefits and impacts the initial IZO has had since its adoption. No new restaurants with more than 150 locations nationwide have yet to open on the Promenade since the adoption of the IZO in March.
The interim ordinance became effective on April 13, 2023, and is set to expire on June 12, 2023. Council may extend the interim ordinance until April 13, 2028, allowing the IZO to be in effect up to 60 months in accordance with Santa Monica Municipal Code (SMMC) Section 9.46.090(C).
Staff recommends extension of the IZO for the allowable 60 months until April 13, 2028.
As the economic recovery from COVID-19 continues and the retail landscape evolves, 3 of 4
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. The proposed extension would allow staff an opportunity to monitor the number of restaurants that open on the Promenade as a result of this IZO and provide periodic updates to Council. The proposed extension would not preclude Council from revisiting the IZO prior to its expiration to potentially amend the provisions or duration of the IZO. Depending on the circumstances, Council could make amendments to the IZO or repeal it.
Past Council Actions
Meeting Date Description
03/14/23
(attachment A)
Second Reading and Adoption of an Interim Zoning Ordinance Eliminating Prohibition of Certain Restaurants in
Establishments with Frontage on the Third Street Promenade Environmental Review
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 because of the recommended action.
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Prepared By: Tony Kim, Principal Planner
Approved Forwarded to Council
Attachments:
A. City Council Meeting - March 14, 2023 (Web Link)
B. CDD--IZO re Fast Food on Promenade Extension 042523