City Council
Report
City Council Meeting: July 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 to Promote Economic Recovery in the City’s Downtown Districts, including the Third Street Promenade Area, and Provide Other Minor and Clerical Amendments to the Zoning Ordinance Related to Economic Recovery.
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Sections 15301 (Existing Facilities), 15303 (New Construction or Conversion of Small Structures), and 15304 (Minor Alterations to Land) of the California Environmental Quality Act (CEQA) Guidelines.
2. Introduce for first reading an Interim Zoning Ordinance to promote economic recovery in the City’s Downtown Districts, including the Third Street Promenade Area, and provide other minor and clerical amendments to the Zoning Ordinance related to economic recovery.
Summary
On January 24, 2023, Council held a discussion requesting that the City develop strategies to revitalize the Third Street Promenade that included but were not limited to, establishing an arts and entertainment district in the 1200 block of the Third Street Promenade, expanding outdoor dining opportunities, promoting available space and development opportunities, Zoning Code amendments to expand allowable uses, and opportunities to partner with Downtown Santa Monica, Inc. on street performers.
The subject Interim Zoning Ordinance (“IZO”) includes proposed zoning changes supporting a variety of potential commercial uses within the Downtown. These changes 2 of 14
focus on enabling certain outdoor uses and providing a streamlined review for alcohol permits based on recent discussions with prospective businesses considering available tenant space within the Promenade area. In summary, the following proposed zoning changes focus on the Third Street Promenade area 1) allowing greater flexibility for restaurants that provide entertainment within the Third Street Promenade Area District, 2) expanding Alcohol Exemption (AE) permits to additional uses to further streamline the review of alcohol permits while also correcting and refining existing AE permit conditions, 3) allowing the Director of Community Development or designee to consider commercial uses that are not clearly defined in the Zoning Code, 4) allowing a longer term for Temporary Use Permits, and 5) allowing outdoor rooftop commercial uses on public parking structures owned by the City:
▪ Restaurants with Entertainment. Allow greater flexibility for restaurants with entertainment located within the Third Street Promenade Area district by removing certain operational restrictions on ancillary entertainment before a discretionary Conditional Use Permit is required.
▪ Alcohol Exemptions. Expand uses that can obtain an Alcohol Exemption permit to further streamline the review of alcohol permits, establish operational conditions for these added uses, and correct and refine existing operational conditions for restaurants, bars/nightclub, general retail sales, and liquor stores that were approved by Council in October 2022.
▪ Land Use Flexibility. Establish greater land use flexibility by allowing the Director of Community Development or designee to consider land uses that are not clearly defined in the Zoning Code that are similar, consistent with, and no more disruptive than uses that are permitted or conditionally permitted within all Downtown Community Plan Districts.
▪ Temporary Use Permits. Extend the approval term of Temporary Use Permits from 45 days to 180 days (6-months), with the ability to administratively extend the permit an additional 180 days (6 months) with Director approval, subject to findings.
▪ Other Minor and Clerical Amendments related to Economic Recovery. Staff proposes a few other minor and clerical amendments that will correct Zoning 3 of 14
Code inconsistencies. These include updating the bar/nightclub/lounge use from being subject to a Conditional Use Permit to a permitted use by-right, adding a limitation to ensure that both bar/nightclub/lounge and liquor store uses are permitted by-right in the Third Street Promenade Area district, provided they obtain an administrative Alcohol Exemption permit. Additionally, a clerical amendment to correct an inconsistency in parking requirement exclusion as part of the recently adopted Outdoor Space Program is proposed. ▪ Outdoor Commercial Uses. Allow certain outdoor commercial uses on the toplevel of public parking structures owned by the City, including cinemas, community assembly, community gardens, and small/large-scale commercial entertainment and recreation facilities. Such outdoor uses would be excluded as floor area and Floor Area Ratio requirements, and would not be subject to developer linkage or impact fees. For rooftop cinemas, allow additional height projections of supportive structures including cinema screens, concession stands, restroom and storage facilities, and similar structures to extend above the height of an existing City-owned parking structure.
Background
Economic Recovery Initiatives
On October 11, 2022, Council adopted an Ordinance amending the text of the City’s Zoning Ordinance related to economic recovery in commercial districts Citywide and in the area including and immediately adjacent to the Third Street Promenade. These zoning changes codified Emergency Interim Zoning Ordinances approved in response to the COVID-19 pandemic. Those amendments focused on relaxing barriers that had been shown to create unnecessarily difficult processes for simple changes of use inhibiting the establishment of common neighborhood-serving uses. As part of the amendments, the Third Street Promenade Area District was established and is described as the area bounded by 2nd Street to the west, Broadway to the south, 4th Street to the east, and Wilshire Boulevard to the north, as shown in Figure 1 below. 4 of 14
Figure 1: Third Street Promenade Area District
Expanding Uses at City-Owned Parking Structures
In 2019, staff began discussions on the concept and feasibility of a rooftop cinema on the top level of Parking Structure 2 in the Downtown. Staff considered the displacement of approximately 79 parking spaces to accommodate the rooftop cinema and determined that the reduction in spaces would not be detrimental to the Downtown parking supply. Although structural feasibility remained in question due to the existing condition of Parking Structure 2, the applicant filed for a Conditional Use Permit to initiate the review procedure concurrent with ongoing discussions with staff. The outdoor cinema consisted of two screens and 480 seats. However, the application would later cease due to the pandemic commencing in March 2020. Downtown Santa Monica Inc., city staff, and the Rooftop Cinema Club have reengaged discussions on the concept, instead utilizing Parking Structure 6 that was constructed in 2016 with the anticipation that associated building permits would be more attainable. This IZO focuses on the land use and zoning regulation aspects of the potential project, including zoning amendments allowing the use and the height of its support structures on the roof-level of the parking structure to exceed district height requirements. 5 of 14
Discussion
The subject Interim Zoning Ordinance reflects staff’s ongoing evaluation and simplification of zoning requirements to provide greater flexibility and streamlined review for new potential businesses within the Downtown area and specifically for the newly established Third Street Promenade Area District. Similar to the October 2022 zoning amendments, the proposed IZO continues the City’s ongoing efforts in supporting new and existing Santa Monica businesses following the pandemic. Below is a summary of the proposed interim zoning changes, with redline changes to the Zoning Ordinance text reflecting such amendments, provided in Attachment A.
Greater Flexibility for Restaurants with Entertainment:
The following proposed changes support restaurants located in the Third Street Promenade Area District that offer ancillary entertainment with greater operational flexibility before a discretionary Conditional Use Permit is required for the establishment.
1. Restaurants with Entertainment (9.31.290). Existing Section 9.31.290 allows restaurants to have an entertainment component such as music, DJs, dance, stand-up comedy, and poetry readings for the patrons’ enjoyment, provided that the establishment meets certain operational standards. Restaurants operating beyond the scope of the standards/limitations require a Conditional Use Permit.
Proposed Changes: Allow greater flexibility for restaurants with entertainment by simplifying and removing certain existing operational restrictions related to providing such entertainment. Changes include the following:
a. A dance floor area for patrons would be allowed provided that dancing is ancillary to the restaurant use and sit-down meal service is available for patrons at all times which dancing is taking place.
b. Size and number of televisions screen restrictions would be eliminated. c. Provision prohibiting pool tables, video games, bowling, darts, and similar entertainment activities would be eliminated.
d. Provision prohibiting liquor bottle service would be eliminated. 6 of 14
e. Provision prohibiting organized queuing of patrons at the entry or checking of identification to control entry into and within the establishment, and any age limitation imposed restricting access to any portion of the restaurant would be eliminated.
f. Provision prohibiting the organization or participation of organized “pubcrawl” events would be eliminated. g. Restaurants would remain subject to the City’s Noise Ordinance, however would not be subject to requirements applicable to establishments with amplified music such as adding noise mitigating two-door vestibules and double-pane glass storefront improvements.
These changes are intended to provide new and existing restaurants with greater flexibility and options to provide ancillary entertainment thereby encouraging a more active nightlife presence within the district. Additional refinements to Alcohol Exemption permit operational conditions for restaurants and bars/nightclubs within the district are also proposed as discussed in the next section.
Alcohol Exemption [9.31.040(D)(2)]: Expanded Uses & Updated Operational Conditions The following proposed changes include expanding the types of uses that can obtain an Alcohol Exemption permit. Staff has received inquiries from prospective businesses proposing alcohol service in conjunction with the following permitted uses in the district.
Revisions also include establishing operational conditions for new uses and correcting/refining existing conditions for restaurants, bars/nightclubs, general retail sales, and liquor stores recently approved by Council.
Proposed Changes:
2. Expanded Uses: The following proposed uses would qualify for an Alcohol Exemption Permit instead of a Conditional Use Permit, thereby streamlining alcohol review. Ordinarily, these uses are not associated with alcohol-related issues. Specific operational conditions would be established for these uses:
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a. Outdoor Rooftop Commercial Uses including Cinemas, Community Assembly, and Small/Large-Scale Commercial Entertainment and Recreation Facilities located on the top-level of public parking structures owned by the City;
b. Cultural Facilities (museums, etc.);
c. Instructional Services (art studios, group lessons with wine offerings, etc.); d. Commercial Entertainment/Recreation: Small & Large-Scale Facilities; and e. Convenience Markets.
3. Corrected Operational Conditions: Specific operational conditions for each of the following uses that currently qualify for an Alcohol Exemption permit would be established to provide greater clarity, correcting inconsistencies with the applicability of operational conditions based on each use. No substantive changes to the conditions are proposed and the revised conditions will continue to provide flexibility for each business.
a. Restaurants (full service and limited service/take out); b. Bars/Nightclubs/Lounges;
c. Food Halls;
d. General Retail Sales (small and medium scale); and
e. Liquor Stores
Land Use Flexibility
As prospective tenants develop creative and unique business models particularly during this period of economic recovery, allowing the Director of Community Development or designee to consider uses that are not clearly defined in the Zoning Code that are similar, consistent with, and no more disturbing or disruptive than uses that are permitted or conditionally permitted within the Downtown Community Plan Districts would allow greater flexibility in encouraging new potential businesses to the Downtown.
Proposed Changes:
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4. Section 9.10.040 Land Use Regulations for downtown districts would be amended to include the Director of Community Development or designee with authority in considering uses that are similar, consistent with, and no more disturbing or disruptive than uses that are permitted or conditionally permitted within all Downtown Community Plan districts.
Temporary Use Permits (applicable to all commercial zoning districts Citywide) A range of zoning and land-use related changes were made throughout the Pandemic through emergency orders. Interim Zoning Ordinance 2724 which expired on June 30, 2023 included extending the permit timeframe for Temporary Use Permits from 45 days to 180 days (6-months). Extending the temporary use permit period up to 180 days provided flexibility for outdoor temporary uses supportive of economic recovery efforts and consistent with social distancing practices during the pandemic. Examples of prior temporary uses utilizing this provision during the Pandemic included outdoor drive-in theaters, pop-up outdoor retail events, and a dog park. In efforts to maintain Temporary Use Permit flexibility and based on the support this provision provided businesses during the pandemic, staff proposes to reestablish this provision.
Currently, Temporary Use Permits for uses permitted pursuant to SMMC 9.31.370(b) of more than 45 days require the approval of a Minor Use Permit.
Proposed Changes:
5. Term of Permit for Temporary Use Permits: For uses permitted pursuant to
9.31.370(b) of more than 45 days and not exceeding 180 days (6 months) would be permitted administratively and not require a Minor Use Permit. Subsequently, the Director may administratively approve a single extension of the permit and may amend the permit with additional operational conditions as deemed necessary provided that the operation of the approved temporary use at the location and within the time period specified operated in a manner that did not jeopardize, endanger, or otherwise constitute a menace to the public health, safety, or general welfare.
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Other Minor and Clerical Amendments related to Economic Recovery
6. Third Street Promenade Area District:
A. Correct Bar/Nightclub/Lounge from CUP to Limitation (26): As part of the Economic Recovery Zoning amendments adopted by Council in October 2022, bar/nightclub/lounge were authorized to obtain an Alcohol Exemption Permit opposed to a discretionary Conditional Use Permit as the intent was to streamline the review of such establishments. However, the CUP requirement in Land Use Table 9.10.040 was not revised accordingly to reflect this change as a permitted use in the district. Proposed Limitation (26) states that a bar/nightclub/lounge is a permitted use, subject to obtaining an Alcohol Exemption Permit, thereby correcting this inconsistency.
B. Add Limitation (26) to Liquor Stores: As part of the Economic Recovery Zoning amendments adopted by Council in October 2022, liquor stores were changed to a permitted use no longer requiring a Conditional Use Permit. To provide greater clarity and as discussed, the subject IZO includes alcohol exemption conditions for liquor stores. Similar to bar/nightclub/lounge establishments discussed above, proposed Limitation (26) states that a liquor store is a permitted use, subject to obtaining an Alcohol Exemption Permit, thereby correcting this inconsistency.
7. 9.28.040(A)(5) Parking Exclusions: As part of the Outdoor Space Program adopted by Council on March 14, 2023, the following strikethrough amendment regarding outdoor space being exempt from parking requirements was approved however has been inadvertently omitted by subsequent Ordinance 2742 (Housing Element Implementation Ordinance) which erroneously did not include this prior change in its Ordinance language and the language reverted back to the original text. This will be corrected as follows:
Outdoor dining and seating less than 200 square feet in size associated with restaurants. Outdoor dining areas and other outdoor space permitted 10 of 14
pursuant to SMMC 9.31.199, Outdoor Commercial Uses on Private Property, and SMMC 9.31.200, Outdoor Dining and Seating on Sidewalks. 11 of 14
Outdoor Commercial Uses:
The following proposed changes support the expansion of certain permitted uses within the Third Street Promenade Area District as outdoor commercial uses limited to the toplevel of public parking structures owned by the City and subject to City approval and executed via lease agreements:
8. Outdoor Commercial Uses. Currently, cinemas, community assembly, community gardens, and small/large-scale commercial entertainment and recreation facilities are not permitted in conjunction with the City’s public parking structures.
Proposed Changes: Allow certain outdoor commercial uses on the top-level of public parking structures owned by the City, including rooftop cinemas, community assembly, community gardens, and small/large-scale commercial entertainment and recreation facilities. Such outdoor uses would be excluded as floor area, exempt from Floor Area Ratio requirements, and would not be subject to developer linkage or impact fees pursuant to new proposed Section 9.10.050.
For rooftop cinemas, allow additional height projections above the finished parking surface level including cinema screens up to 25 feet and 15 feet for concession stands, restrooms facilities, storage structures, and shading structures to extend above the height of existing parking structures. 1200 Block of the Third Street Promenade: Future Evaluation as an Arts and Entertainment District
Although this IZO does not include changes specific to the 1200 block of the Third Street Promenade for arts and entertainment, the proposed amendments provide a more holistic approach for the Promenade area as a whole in providing greater entertainment flexibility by eliminating certain existing entertainment restrictions for new and existing restaurants. Additionally, changes include streamlining the alcohol review for cultural facilities such as interactive museums and instructional services such as art studios with group lessons. Staff believes these are simple revisions that provide a streamlined review path that will help attract these types of uses to the Promenade 12 of 14
while staff continues to evaluate how specifically the 1200 block can evolve into an active arts and entertainment hub.
Future evaluation of the 1200 block as a potential arts and entertaining district will include engaging with a consultant to study how to connect people and activities using the sidewalks and public open space within the block. Staff is currently working with DTSM to identify a consultant and process to explore potential opportunities for additional uses of public space, including but not limited to additional restaurant seating/service area, while also maintaining key public art features and providing for public safety and emergency services access on the Third Street Promenade.
Conclusion
These interim changes reflect short and medium-term policy and procedural changes specific to the evolving economic vitality of the Promenade area. Simple changes would create fewer restrictions for restaurants with entertainment, and broaden the range of outdoor permitted uses, and further streamline alcohol permits for uses that ordinarily do not result in alcohol-related impacts. In coordination with DTSM and the City’s Economic Development staff, continued evaluation of zoning standards for the Promenade area is ongoing. Accordingly, the proposed IZO seeks to provide immediate zoning flexibility in response to feedback from businesses interested in leasing space within the Third Street Promenade Area.
Past Council Actions
Meeting Date Description
May 12, 2020 Council adopted two Emergency Interim Zoning Ordinances establishing interim zoning regulations to support the
economic recovery of local businesses impacted by the
COVID-19 pandemic.
November 10, 2020 Extended Emergency Interim Zoning Ordinances for both Citywide and Promenade, extended through December 31,
2022.
April 13, 2021 (“IZO
2667”), September 28,
2021 (“IZO 2682”),
and January 25, 2022
(“IZO 2690”)
Subsequent amendments to the “Promenade” IZO.
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October 11, 2022 and
October 25, 2022
Council adopted Ordinance 2726 (CCS) approving Zoning
Ordinance amendments for the Third Street Promenade
Area
January 24, 2023 Council held a discussion requesting that the City develop strategies to revitalize the Third Street Promenade.
Environmental Analysis
The proposed amendments establishing standards and requirements for outdoor space located on private property, amendments to existing Zoning Ordinance sections for consistency, and amendments codifying permit timeframe extensions established pursuant to Emergency Interim Zoning Ordinance Number 2698 (CCS) supporting economic recovery are categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Sections 15301, 15303, and 15304 of the CEQA Guidelines.
• Section 15301 of CEQA Guidelines provides (Class 1 Existing Facilities) exemption for the operation, repair, maintenance, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. Projects that fall into this class of exemption include alterations to existing streets, sidewalks, gutter, bicycle facilities, and other similar facilities and additions of safety or health protection during for use in conjunction with existing facilities. The proposed amendments would allow alterations to private property for outdoor space use.
Therefore, the project falls into the Class 1 exemption. • Section 15303 of CEQA Guidelines provides (Class 3 New Construction or Conversion) exemption for the conversion of existing small structures from one use to another where only prior modifications are made to the exterior. The amendments would provide for new construction and/or conversion of outdoor space. Therefore, the project falls into the Class 3 exemption. 14 of 14
• Section 15304 of CEQA Guidelines provides (Class 4 Minor Alterations to Land) exemption for minor public or private alterations in the condition of land, water, and or vegetation which do not involve removal of healthy, mature, scenic trees.
New outdoor space established as a result of the amendments would install amenities including landscaping and paving. Therefore, the project falls into the Class 4 exemption. In addition, none of the exceptions specified in Section 15300.2 of CEQA Guidelines would apply that would preclude the use of these CEQA exemptions - The project site is not located in a sensitive environment, the project will not have a significant effect on the environment due to unusual circumstances, the project would not damage scenic resources, the project would not be located on a hazardous waste site; and the project would not cause a change to a historical resource. Therefore, this project is categorically exempt per Sections 15301, 15303, and 15304 of the CEQA Guidelines.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of recommended action. Staff will return to Council if specific budget actions are required in the future.
Prepared By: Steve Mizokami, Senior Planner
Approved Forwarded to Council
Attachments:
A. 2023.07.25 - Promenade IZO
B. Written Comments
C. PowerPoint Presentation