City Council
Report
City Council Meeting: September 26, 2023
Agenda Item: 10.A
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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 Ordinance Number 2754 (CCS) Promoting Economic Recovery in the City’s Downtown Area, including the Third Street Promenade Area and Santa Monica Place, and Providing 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) and 15303 (New Construction or Conversion of Small Structures) of the California Environmental Quality Act (CEQA) Guidelines.
2. Introduction and first reading of an Interim Zoning Ordinance extending Interim Zoning Ordinance Number 2754 (CCS) promoting economic recovery in the City’s Downtown area, including the Third Street Promenade Area and Santa Monica Place, and providing 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 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. (DTSM) on street performers.
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On July 25, 2023, Council adopted Interim Zoning Ordinance Number 2754 (CCS) establishing interim zoning regulations promoting economic recovery in the City’s Downtown, including the Third Street Promenade Area and Santa Monica Place, and also included minor clerical amendments further supporting economic recovery.
The Interim Zoning Ordinance (“IZO”) included proposed zoning changes supporting a variety of potential commercial uses within the Downtown. These changes focus on enabling certain outdoor uses and providing a streamlined review for alcohol permits based on recent inquiries from prospective businesses considering available tenant space within the Promenade area. In summary, the interim zoning changes focus on:
allowing outdoor rooftop commercial uses on Public Parking Structures owned by the City;
1) allowing greater flexibility for restaurants that provide entertainment within the Third Street Promenade Area and Santa Monica Place;
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 Planning to consider commercial uses that are not clearly in the Zoning Code; and
4) allowing a longer term for Temporary Use Permits.
The subject interim ordinance became effective on September 22, 2023 and is set to expire on November 22, 2023. Council may extend the interim ordinance through November 22, 2028, allowing the IZO to be effective up to 60 months in accordance with SMMC Section 9.46.090(C).
Staff recommends extending the IZO for the allowable 60 months through November 22, 2028. As the City continues to support local businesses during this next phase of economic recovery following the pandemic, the proposed extension would allow adequate time for staff to further evaluate the 1200 block of the Promenade as a potential arts/entertainment district and evaluate the results of the land use changes included in the IZO. The proposed extension would not preclude Council from revisiting 3 of 9
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, elect to make it permanent, or repeal it at any time.
Staff recommends that the Council extend the IZO as adopted by the Council on July 25, 2023, with the exception of a few non-substantive clerical amendments as described in this report.
Background
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 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 was established and 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.
Third Street Promenade Area
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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 including the Santa Monica Place and specifically for the newly established Third Street Promenade Area. 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 interim zoning changes as adopted by Council on July 25, 2023:
▪ Outdoor Commercial Uses. Allow certain outdoor commercial uses on the toplevel 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. For rooftop cinemas, allow additional height projections of supportive structures including cinema screens, concession stands, restroom facilities, storage structures, and shading devices to extend above the height of existing parking structures.
▪ Restaurants with Entertainment. Allow greater flexibility for restaurants with entertainment located within the Third Street Promenade Area and Santa Monica Place 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 recently approved by Council in October 2022. ▪ Land Use Flexibility. Establish greater land use flexibility by allowing the 5 of 9
Community Development Director to consider land 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 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. Other minor clerical amendments correcting Zoning Code inconsistencies included 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, provided they obtain an administrative Alcohol Exemption permit. Additionally, a clerical amendment to correct an inconsistency in parking exemption for new private outdoor space for commercial businesses as part of the recently adopted Outdoor Space Program as included.
These IZO provisions are further detailed in the July 25, 2023 Council staff report.
Non-Substantive Clerical Amendments and Clarifying Language Staff recommends the following non-substantive clerical amendments and clarifying language that correct terms and further clarify certain Alcohol Exemption operational standards currently established in the subject IZO:
1. Ensure that the subject area is correctly identified as the “Third Street Promenade Area” by deleting in some instances any terms or reference to this area as a “District”.
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Purpose: Corrects that the “Third Street Promenade Area” is not a “district”.
2. Alcohol Exemption Operational Standards: Provide greater clarity by adding the following standard for 1) Cultural Facilities and Instructional Services and 2) Commercial Entertainment and Recreation: Small-Scale Facilities and LargeScale Facilities:
- “Service of alcoholic beverages shall be incidental to the primary use”.
Purpose: Further clarifies that alcohol service is not the primary use of the establishment.
3. Alcohol Exemption Operational Standards: Provide greater clarity by amending the following standards for General Retail Sales, Small-Scale and Medium-Scale:
i. The permitted hours of alcoholic beverage sales for off-site consumption and/or on-site tasting shall be 8:00 a.m. to 2:00 a.m. daily.
ii. Sale of alcoholic beverages shall be incidental to the primary use.
Purpose: Clarifies that retail establishments such as wine shops may offer a tasting component during permitted operating hours. Removal of the second provision clarifies/eliminates an inadvertent conflict with such establishment. 1200 Block of the Third Street Promenade: Future Evaluation as an Arts and Entertainment District
As stated in the July 25, 2023 Council report, although this IZO extension does not include changes unique to the 1200 block of the Third Street Promenade for arts and entertainment, the amendments provide a more holistic approach for the Promenade 7 of 9
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. These are simple revisions that provide a streamlined review path that will help attract these types of uses to the Promenade 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 will continue 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 and Santa Monica Place. 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 and Santa Monica Place.
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
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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.
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.
July 25, 2023 Council adopted Promenade Interim Zoning Ordinance 2754 to Promote Economic Recovery in the City’s Downtown
area, including the Third Street Promenade Area and Santa Monica Place, and Provide Other Minor and Clerical
Amendments to the Zoning Ordinance Related to Economic
Recovery.
Environmental Analysis
The proposed extension of Interim Zoning Ordinance Number 2754 (CCS) promoting economic recovery in the City’s Downtown, including the Third Street Promenade Area and Santa Monica Place, and other minor clarifications and clerical amendments to the Zoning Ordinance related to economic recovery are categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Sections 15301 and 15303 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 for flexibility in land uses for the Downtown and 9 of 9
associated alterations to existing commercial buildings to accommodate the proposed changes in land uses in the Downtown. Therefore, the proposed amendments qualify under 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 minor construction to accommodate the proposed changes in land uses in the Downtown. Therefore, the proposed amendments qualify under the Class 3 exemption.
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, Principal Planner
Approved Forwarded to Council
Attachments:
A. 2023.09.26 - Promenade IZO Extension