Santa Monica City Council
May 14, 2024

POLICIES:

T19.1 Develop land use policies that focus
development potential in locations best served
by transit.

T19.2 Impose appropriate Transportation
Demand Management (TDM) requirements for
new development.

T19.3 Create incentives for existing
employers, institutions and residential
neighborhoods to reduce their vehicle trips.

T19.4 Encourage a mix of land uses that
meet residents’ daily needs within walking
distance.

T19.5 Encourage local-serving retail uses
within walking distance of housing, particularly
in new mixed-use neighborhoods, such as
Bergamot Transit Village and Memorial Park
Activity Center.

T19.6 Develop community benefits incentives
so that new development will contribute
toward improving surrounding neighborhoods.

T19.7 Perform a nexus study and implement a
transportation impact fee to mitigate negative
transportation impacts of new development.

T19.8 Establish a system of transportation
performance measures, regularly track
performance of the system according to these
measures, report results to the public and
suggest remediation as necessary.

T19.9 Strengthen the Transportation
Management Ordinance to further reduce trips
generated by existing employees.

GOAL T20: Manage the transportation
system to prioritize flexibility, cost
effectiveness and accountability.

POLICIES:

T20.1 Develop and implement clear
transportation performance measures that
will be publicly reported on a regular basis to
help City staff, elected and appointed officials,
residents, and other stakeholders understand
the components of the transportation system
that are working well and where improvements
are needed.

T20.2 When balancing the needs of different
modes of transportation, consider person
capacity and person delay over vehicle capacity
and vehicle delay.
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goals and policies: circulation
Evaluating performance measures—such as intersection
capacity—will help determine how well the transportation system is operating.

Carpools and vanpools are powerful tools to reduce congestion.

T20.3 When considering transportation
investments, emphasize lifecycle costing,
considering the operating costs and annualized
capital costs and comparing these to the
benefits to new and existing users.

T20.4 When considering transportation
investments, consider latent demand,
particularly for roadway capacity increases, and
evaluate future expandability and flexibility.

T20.5 Recognize quality and maintenance as
important priorities.

T20.6 Foster the success of Transportation
Management Organizations (TMOs) in the
City’s commercial districts, and leverage
transportation funds through the TMOs.

GOAL T21: Use all available tools to
make the most effective possible use of the
transportation system.

POLICIES:

T21.1 Regularly update the TDM requirements
for new development.

T21.2 Consider eliminating direct and
hidden subsidies of motor vehicle parking and
driving, making the true costs of parking and
driving visible to motorists.

T21.3 TDM program requirements shall be
triggered for new development consistent with
the LUCE performance standards.

T21.4 Seek to fund TDM programs through
transportation related fees such as Transportation
Management Ordinance fees and parking fees.

T21.5 Strive to implement measures to minimize
the time motorists spend searching for parking
through way-finding and pricing parking to create
availability.

T21.6 Consider parking pricing and
commuter parking limits as tools for managing
congestion.

T21.7 New multi-family and nonresidential
developments should be incentivized to construct
facility design elements that will enable price
control for parking.

T21.8 Seek methods to use parking revenue
to support travel by transit, bicycle, walking and
other modes.

T21.9 Consider modifications of existing
facilities to support changes in demand, for
example, replacing auto parking with bicycle
parking as bicycle use grows.

T21.10 Continue to strengthen the marketing
and promotion of non-auto transportation to
residents, employees and visitors.

T21.11 Continue to invest in information
technology to help improve access to all
transportation choices.
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Dedicated car-share parking spaces in convenient locations can help incentivize decreased private automobile ownership in Santa Monica.

The LUCE promotes alternatives to driving to work.

ACTIONS
Establish and regularly update mode split
targets for each Demand Management
District and the City as a whole, and develop
strategies to achieve those targets.

Facilitate the formation of Transportation
Management Organizations (TMOs),
Business Improvement Districts, or other
organizations to help manage vehicle trips at
a local level.

Explore and develop feasible approaches to
unbundling the cost of parking from the cost
of housing for new multi-family projects.

Regularly update the City’s TDM program
and evaluate the following for possible
implementation:

Bike-transit centers with bicycle parking, bike
rentals, bike repair shops, lockers, showers
and transit information and amenities (such
as maps, schedules, and sales of fare media
like monthly passes)
Bikesharing Program, with public bicycle
rentals located throughout the City
Carsharing Program
TMOs to provide TDM programs and
coordinate parking management activities
for distinct sub-areas of the City
The provision by employers, institutions or
residents’ associations of Universal Transit
Passes for Big Blue Bus and Metro
Safe Access to Transit Program to provide
safer bicycle and pedestrian access to transit
stops
Vanpool and carpool ride-matching
services for TMOs and employers, including
customized, real-time, online tools
Mobility Centers located in each TMO
that create a one-stop shopping center for
residents, employees, and visitors to get
information on travel options
Methods of monitoring TDM programs to
ensure that each TMO or employer meets
specified trip reduction targets
While evaluating the car-sharing program,
consider approaches to increase car-sharing,
such as:

New development providing “right-of-firstrefusal” to parking spaces for car-sharing organizations and the City, and
Providing public on- and off-street spaces to
qualified car-share operators for little or no
charge.
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Parking is a concern in the City. In addition to neighborhood parking pressures, there is enormous demand for parking access for regional amenities like the Third Street Promenade, the Pier, Santa Monica Place (above), the beach and parks.

PARKING
The Role of Parking
Sufficient automobile parking is necessary
for the success of most of Santa Monica’s
businesses, and for the quality of life of its
car-owning residents. Indeed, lack of available
parking has been among the strongest
complaints voiced in the LUCE process by
neighborhood residents and retail business
owners. But how much parking is sufficient?
Too much parking may be just as bad as too
little. This section examines how the City
can quantify the “right” amount of parking,
manage that parking optimally, and design it
for function and beauty—all to achieve Santa
Monica’s larger goals.

Parking Issues
Parking issues vary significantly across the City.

Residential neighborhoods face the following
key issues:

Increased auto ownership. As Santa Monica’s
demographics have changed, so have its
rates of auto ownership.

Parking used for storage. In some cases,
residents use their off-street parking space
for storage, increasing the demand for
street parking.

Employees, visitors and shoppers park in
neighborhoods. Along the beach, in
neighborhoods with no parking permit
restrictions, and in permit zones that allow
limited free parking, nonresidents choose to
park free in the neighborhoods rather than
paying to park in beach or commercial lots.

Commercial districts face other issues:

Low parking supply in some areas. Santa
Monica’s neighborhood commercial districts
were originally built for travel by foot and
streetcar, not automobiles.

Fragmented supply. Many off-street lots and
garages are reserved for particular users and
sit
empty at other times of day, an inefficient
use of a valuable resource.

Employees park at the front door. In some
cases, employees take the most prized frontdoor parking spaces, forcing shoppers and visitors to park farther away.

Shoppers circle for parking. Where parking
availability is tight, and where available
spaces are hidden in garages or at the
back of buildings, shoppers may circle the
block repeatedly, contributing to traffic
congestion.
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The cost of parking is high, both for motorists and for cities.

Pricing is a common tool that is used to balance supply with demand.

Parking: The LUCE recommends several strategies to make parking easier and more predictable in Santa Monica.

Parking Economics
Parking is expensive. Building a new parking
structure costs about $30,000 per space in
2009 dollars—and over $40,000 underground.

A surface space can be even more expensive,
when inncluding the high cost of land in Santa
Monica. While it is important to have sufficient
parking, building too much parking is wasteful.

At these high prices, it is essential that all of
Santa Monica’s parking spaces be managed as a
precious resource.

For motorists, the critical issue is parking
availability, not parking supply. Citywide, there
are always plenty of empty spaces—just not
where motorists want them or can find them.

The goals and policies of this section are largely
structured to match parking supply and parking
demand through better management of the
existing parking system. Economic theory
teaches that there are limited tools the City can
use to balance parking supply and demand:

Substitution increases the attractiveness of
alternatives to driving, including all the tools
covered in the TDM section.

Market segmentation allows parking to be
restricted to a certain set of users, such as
the City’s existing residential parking permit
districts.
“First-come-first-served” requires that motorists
circle around to find a space or wait for
another motorist to leave.

Price sets a rate that may vary by time of day
and location to encourage motorists to shift
from high-demand facilities to empty lots.

Pricing is the most commonly used mechanism
to balance supply and demand for most goods
and services, including housing, food, and
clothing because it tends to be more efficient
and fair than the other tools. As the price of
parking declines, its demand increases—and
as price increases, demand falls. If the price
is set too low, parking becomes scarce, and
businesses will suffer and motorists will be
annoyed. If the price is set too high, parking
spaces will sit empty, and shoppers and
visitors will go elsewhere. The trick is to set the
price of parking just right, so that everyone
can always find a space but no spaces are
wasted. At this optimal price, commerce and
residential quality of life are both maximized.

The LUCE recommends using all four tools,
reducing queuing and emphasizing price.

This conclusion is supported by a 2008 Rand
Corporation study that found properly priced
parking to be one of the most immediate and
effective tools local government can use to
reduce traffic congestion.

Who Pays for Parking?
Most motorists who park in Santa Monica do
not pay for the full costs of providing that
parking, including the value of the land, the
construction and maintenance costs, and
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The cost of parking is “built-in” to the price of housing, often adding 20 percent to the cost of the unit.

Parking assessment: The Third Street Promenade is located in a Parking Assessment District in which property owners pay a portion of the shared parking costs.
ancillary expenses like enforcement, and
garage lighting and security. As a result, these
motorists receive a direct or indirect subsidy
to help pay for their parking. That is, some of
the costs of parking are hidden in the costs of
other goods and services, or paid for through
public funds. From an economic perspective,
parking subsidies may be a valuable tool for
promoting business in a competitive region
where most motorists park free. From a social
equity perspective, discounted parking at
home and work can be just as important as
affordable housing and decent wages for lowincome, automobile-dependent households.

From a congestion-management perspective,
however, subsidizing parking is the same
as paying people to drive, the economic
equivalent of giving away free gasoline. In
areas such as Santa Monica, where local street
capacity is overburdened, “solving” a parking
problem by providing more spaces will put
more pressure on the streets that provide
access to the parking.

Parking supply and management also raise
complex tensions related to Santa Monica’s
housing affordability goals. Each off-street
parking space, along with its share of necessary
aisles and ramps, consumes about the
same amount of building space as a studio
apartment. Each parking space added to a
typical multi-family residential unit increases
the price of that unit by about 20 percent and
decreases the number of units that can be
built by roughly the same amount. Moreover,
households that can give up ownership of one
vehicle can qualify for an additional $100,000
to $150,000 in mortgage in 2008 dollars, or
save $650 a month.

Santa Monica’s parking policies must
acknowledge the tensions they pose in
implementing all of its economic vitality,
quality of life, social equity and ecological
sustainability goals.

Successful Parking Strategies
To address its parking issues, Santa Monica
should pursue a coordinated parking
management strategy:

In residential neighborhoods, the City should
explore all of the following as part of its
integrated approach:

Constrain residential permits. Residential
parking permits should be more than
just “hunting licenses.” Instead, permit
distribution should be limited to ensure that
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SANTA MONICA LUCE | 4.0 - 69
Residential parking management districts can help ensure a balance between parking supply and demand.

Real-time occupancy monitoring systems can be utilized
in commercial and residential areas to effectively communicate parking availability to the public and to streamline the process of looking for parking.
some spaces are always available. Before
expanding residential parking supply, the
City should pursue options for constraining
permits so that increases in supply will result
in increases in availability. Similarly, the City
should create incentives for residents to park
in their own garages rather than use them
for storage.

Provide residents access to available
commercial spaces. Where commercial
properties have surplus parking—particularly
at night—the City should help create
mechanisms to allow residents to lease these
available spaces. This will likely mean having
a third party manage the spaces so that
commercial property owners do not have to
accept added liability or management costs.

Ensure new development improves parking
availability. New developments may be
excluded from participating in existing
residential permit zones, and they may
be required to rent their shared parking
spaces to nearby residents just as they do to
building tenants.

Reduce or eliminate free parking in residential
permit zones. To limit spillover from
surrounding commercial districts, free
time-limited parking may be reduced
or eliminated. To maintain access for
guests and residential vendors, the City
may expand availability of guest permits
or provide pay-and-display machines in
neighborhoods. Such changes or new
programs require the support of the
residents of the affected area.

Create residential parking benefit districts.

Through parking permits or space by space,
some neighborhoods may want the option
of selling their surplus daytime parking
supply to commuters, provided that net
revenues are invested in the parking district
for improvements like traffic calming, transit
amenities, bicycle routes, street trees or
other local priorities. Such programs would
require the support of affected residents.

Create centralized neighborhood valet parking.

In areas of great parking scarcity, valet
parking for residents may be as successful as
it is in commercial districts.

Create an online residential parking rental
program. The City or neighborhood
organizations may work to create a market
for available parking through an online
information and auction site.

Bring car-sharing to Santa Monica. In other
urban markets in the United States, every
car-share vehicle provided has eliminated
up to 25 private vehicles, with residents
selling their second or only car, or avoiding
the purchase of a car altogether. Such
neighborhood rental cars are perfect
for Santa Monica, especially as its transit
investments make it easier to live without
multiple vehicles.

In commercial and beach areas, the City should
explore these strategies:

Adjust parking price to ensure availability. The
City should establish a target that 15 percent
of spaces in every lot and garage, and along
every block face, be available at all times. It
should then adjust the price of parking and
the hours of enforcement to meet this target,
varying by time of day, season and location.
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4.0 - 70 | SANTA MONICA LUCE
Expand valet programs. Centralized valet
programs allow shoppers, visitors and
employees to drop their car off at any valet
and pick it up elsewhere.

Enable more efficient use of parking
spaces through innovative technologies,
such as stacked parking systems, where
appropriate and well-screened from
view.

Public and private parking options should be continuously evaluated against current trends and demand. Parking payment options: Different payment options give customers a choice of how they want to pay.

Expand payment options. It should be as easy
for a customer to pay for parking as it is to
buy goods from any retailer, and the City
should ensure that credit cards, debit cards
and other convenient forms of payment may
be used for all parking spaces.

Expand real-time parking information. To reduce
circling for parking, motorists should be
able to know the best route to the closest
available parking, with real-time messaging
signs from the freeway off-ramps to most lots
and garages.

Expand car-sharing. If employees can easily rent
a car by the hour during the day, they may
not need to bring a car with them to work in
order to run errands or go out for lunch.

Implement employee TDM. All of the programs
listed in the TDM section can reduce parking
demand and make more spaces available for
customers.

Manage employee parking. Employees
should not be encouraged to park in
prime customer spaces or in residential
neighborhoods. Instead, each commercial
area should have a tailored employee
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SANTA MONICA LUCE | 4.0 - 71
Car-sharing: Part of the parking solution is linked to providing opportunities for shared automobile programs to locate in residential and commercial areas.

New technologies: Parking lifts and other innovative
technologies make good use of limited space.

GOALS AND POLICIES
GOAL T22: Provide adequate parking
availability for residents on residential streets
at all times of day.

POLICIES:

T22.1 Strive to manage on-street parking in
residential neighborhoods so that on average,
15 percent of the spaces are available to
residents at all times of day.

T22.2 Expand management options for
residential parking permit districts in order
to increase parking availability for residents,
including methods such as setting limits on the
availability of permits, elimination of free timelimited parking in residential zones and the establishment of parking benefit districts.

T22.3 Maximize the efficient use of existing
off-street parking and make this parking
available to residents.

T22.4 Promote programs that reduce
residents’ average vehicle ownership, including
car-sharing and pricing parking separately
from housing.

GOAL T23: Encourage new projects
to improve residents’ opportunities to
find parking.

POLICIES:

T23.1 In new multi-family and commercial
buildings, encourage building owners to lease
parking spaces separately from residential units
and commercial space, and allow residents
of nearby buildings to lease these spaces at
comparable rates as building tenants.

T23.2 In new multi-family and commercial
buildings, encourage owners to make parking
spaces available to qualified car-share
operators, and allow public access to the
car-share vehicles.

T23.3 In new multi-family buildings, the
City should encourage developers to enroll
residents in a qualified car-share program.

T23.4 On properties where parking is leased
separately from residences, exclude the
property from participation in any existing
residential parking permit zone.

GOAL T24: Provide adequate parking
availability for commuters, visitors and
shoppers throughout the day.

POLICIES:

T24.1 Manage all public parking in commercial
areas so that on average, 15 percent of the
spaces are available at all times of day.
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4.0 - 72 | SANTA MONICA LUCE
goals and policies: circulation
Management: The City should strive to manage on-street parking in residential neighborhoods so that on average, 15 percent of the spaces are available to residents at all times of day.

Shared parking is encouraged in the LUCE Plan.

T24.2 Use price as the primary tool for
achieving parking availability targets.

T24.3 Subject to funding availability,
provide tools for motorists to find the closest
available parking space, including real-time
information signage and publishing parking
availability information on the internet.

T24.4 Strive to manage beach parking
availability in collaboration with the Coastal
Commission, including periodic adjustments
to variable pricing and exploring shared
parking arrangements between the beach
and nearby commercial districts.

T24.5 Encourage all new commercial
parking to be shared and designed so that
it is interconnected with adjacent parking
facilities.

GOAL T25: Design parking to meet
applicable urban design goals and
minimize negative impacts on pedestrians,
bicyclists and transit users.

POLICIES:

T25.1 Require adequate on-site loading
areas for child care centers, healthcare offices
and other uses with intensive passenger
drop-off demands, and work with schools to
encourage provision of adequate
loading areas.

T25.2 Require that parking be accessed only
from alleys, where alley access is available.

T25.3 Minimize the width and number
of driveways at individual development
projects.

T25.4 Require surface parking lots to be
screened by landscaping from adjacent
public streets.

T25.5 Above-ground parking structures
should be designed according to the same
urban design principles as other buildings.

T25.6 Encourage technologies that reduce
the physical space needed for parking, such
as mechanical lift systems.

T25.7 Encourage installation of electrical
outlets in loading zones, including signage,
to reduce vehicle idling associated with
operating refrigeration for delivery trucks.

GOAL T26: Use parking policies to
achieve housing affordability, congestion
management and air quality goals.

POLICIES:

T26.1 Encourage shared parking and
discourage reserved parking. Ensure that
shared parking is open to all motorists,
regardless of whether they are customers,
employees or tenants of a building, with
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SANTA MONICA LUCE | 4.0 - 73
the same parking prices, restrictions and
privileges as building occupants.

T26.2 Ensure that public parking prices
reflect the true cost of automobile parking.

T26.3 Use a portion of revenues raised from
parking charges to achieve more sustainable
transportation choices including transit,
walking and biking.

T26.4 Adjust parking requirements for
projects when it can be demonstrated that a
lower parking demand is appropriate.

T26.5 Charge a fee when commercial
developments remove public on-street
parking for a driveway or other purpose.

T26.6 Use parking pricing as a tool to
manage congestion.

T26.7 Consider allowing developers to
meet their minimum parking requirements
via shared parking between uses, payment
of in-lieu fees, or off-site parking within a
reasonable walking distance.

T26.8 Encourage coordinated valet services
to balance parking supply and demand.

T26.9 In all new multi-family development,
seek to provide the option to purchase
parking separately from residential units to
reduce the overall cost of housing.

T26.10 In one hundred percent affordable
housing projects, consider allowing
residential guest parking to be used to
meet parking requirements, or establishing
thresholds under which parking would not be
required, for on-site local-serving retail and
services.

T26.11 If the owners and operators of
properties can demonstrate that they have
more parking than is actually necessary
to meet the needs of their various users
(employees, visitors, etc.), consider
developing parking efficiency strategies
that include leasing their surplus parking to
help alleviate parking shortages and avoid
development of unnecessary parking.

T26.12 Continue to establish reduced parking
requirements and explore pursuing additional
parking reductions or consider eliminating
parking requirements for all housing projects
where appropriate.
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measuring progress:
implementing the plan
CHAPTER 5.0
SANTA MONICA LUCE | 5.0 - 1
The LUCE makes a commitment to careful
and inclusive implementation. The dedicated
participation and vision of thousands of
community members created the LUCE, and
it will require the participation of the entire
community to see it become reality. Residents,
property owners, businesses, schools, religious
institutions, hospitals, community groups,
transit and other public agencies are all part
of the solution. The LUCE provides a vision for
complete neighborhoods, green and livable
streets and an integration of land use and
transportation that requires cooperation across
traditional boundaries. With continued public
engagement and thoughtful, comprehensive
decision-making we have the opportunity to
work together to implement a future much
greater than the sum of its parts.
“A good plan goes to waste if it is not
implemented.”
measuring progress

5.0 - 2 | SANTA MONICA LUCE
A key to success is the active management
of the City and its critical resources—land
use, housing, transportation, arts and culture,
economics and natural environments—in a
holistic and sustainable manner. Integrating
these traditionally separate disciplines requires
the multifaceted implementation strategy
described in this chapter.

The Zoning Ordinance, specific plans, area
plans, streetscape plans, and the City’s capital
improvement program are the traditional
tools for implementing a general plan.

These implementing documents provide a
framework of detailed design and development
regulations— based on the General
Plan vision— that are applied to specific
development proposals. The City has the
opportunity to flourish and be renewed through
the implementation of these individual projects,
guided by the community’s vision and goals.

Equally as important are public improvements
such as roadways, bike paths, shared parking,
parks and open spaces, transit and shuttles,
landscaping and the beachfront improvements.

The complete neighborhoods envisioned by
the Plan require coordinated improvements
in both the public and private realms.

Therefore, implementing the LUCE through the
prioritization of public investments and
the municipal budgeting decisions will be
important determinants for achieving the
community’s vision.

After adoption, the community has a central
role in the Plan’s implementation. Residents
will be actively engaged in the development of
a series of area plans, creation or updating of
specific plans, development of neighborhood
conservation programs, review of proposed
development projects with community benefits
required, and monitoring of the Plan’s progress.

As part of the Santa Monica’s commitment
to community dialogue and lifelong learning
the City shall continue programs to educate
the public regarding land use, development,
design, green design, bicycle and pedestrian
safety, and sustainability. These may include:
ƒ Neighborhood conservation education
ƒ Bike and pedestrian safety information
ƒ Sustainable building practices and tips for
residents and businesses on saving water
and energy
chapter 5.0
SANTA MONICA LUCE | 5.0 - 3

PURPOSE AND STRUCTURE
The purpose of this chapter is twofold: to
outline the tools for implementation, and to
identify opportunities for continued
community participation.

The chapter is organized in the following
manner:
ƒ Framework for Implementation
ƒ Key Implementation Tools:

1. Managing and Monitoring Change -
Tracking Our Progress

2. Neighborhood Conservation

3. Area Plans and Specific Plans

4. Zoning Ordinance and Map Revisions

5. Review of Proposed Projects

6. Transportation Improvements and
Programs

7. Capital Improvements

8. Coordination on Regional Transit
Investments

9. Budgeting Decisions in line with
General Plan

FRAMEWORK FOR

IMPLEMENTATION
Managing and Monitoring Change
A cornerstone of the LUCE approach is the
commitment to monitoring the progress of
the Plan, and managing the pace and type
of change. The LUCE has incorporated five
key strategies for monitoring and controlling
growth. They involve: (1) the location of uses,
(2) the type of uses, (3) quality controls, (4) the
amount of change, and (5) the rate of change.
(See chapter 2.7 Managing Change for further
information.)
The LUCE also incorporates a concept for
monitoring and managing the implementation
of the Plan. Careful implementation ensures
that improvements are balanced and maintain
Santa Monica’s high quality of life. A series
of performance measures tied to the Plan’s
desired outcomes will be periodically reviewed
to assess trends and progress. By tracking
progress, the Plan can be dynamic and
incorporate modifications if needed, including
“putting on the brakes” to provide time to
assess and respond to changing conditions.

Incorporating a management approach
supports sustainability by allowing the General
Plan to be a living document, maintaining its
relevancy through timely adjustments. The Plan
takes a long-term approach while also allowing
for adjustments to incorporate new ideas and
innovations.

Sustainability and Climate
Change Planning
The LUCE establishes the land use and
transportation framework crucial to achieve
fundamental citywide sustainability goals and
to implement the Sustainable City Plan (SCP).

The LUCE sets the foundation for a substantial
decrease in greenhouse gas (GHG) emissions
Climate Change
Scoping Plan
a amework for change
Prepared by
the California Air Resources Board
for the State of California
Arnold Schwarzenegger
Governor
Linda S. Adams
Secretary, California Environmental Protection Agency
Mary D. Nichols
Chairman, Air Resources Board
James N. Goldstene
Executive O
cer, Air Resources Board
DECEMBER 2008
Pursuant to AB 32

e California Global Warming Solutions Act of 2006
Location
of Uses
Type of
Uses
Amount
of Change
Rate of
Change
Quality
Controls
measuring progress

5.0 - 4 | SANTA MONICA LUCE
through vehicle trip reduction and bicycle
and pedestrian network improvements, and
by creating focused land use patterns that
emphasize concentrating diverse uses near
transit. These strategies are consistent with the
California Attorney General’s interpretation that
GHG reduction and climate change planning
need to be incorporated into local general
plans. The specific metrics showing how the
City’s GHG reduction targets will be achieved
will be laid out in Santa Monica’s Climate Action
Plan. With over 40 percent of the City’s GHG
emissions generated by vehicle trips, the
LUCE’s integrated land use and transportation
strategies will be a foundation of the Climate
Action Plan.

Performance monitoring for the LUCE will be
coordinated with the SCP and the biennial
Sustainable City Report Card. The LUCE
measures could be done with every other
report card (every four years) or in accordance
with a monitoring framework approved by the
City Council.

Assembly Bill 32 and Senate Bill 375 require
metropolitan planning organizations to
include Sustainable Communities Strategies
(SCS) in the Regional Transportation Plan for
the purpose of reducing GHG emissions.

The laws are intended to align planning
for transportation and housing; they create
specified incentives for the implementation
of the strategies. Jurisdictions in the Southern
California Association of Governments region
will be required to prepare an SCS for inclusion
in the 2012 Regional Transportation Plan. Santa
Monica will participate in the preparation of the
SCS and many of the innovative transportation
and land use strategies outlined in the LUCE
will be valuable input.

KEY IMPLEMENTATION TOOLS
The development of individual projects will be
subject to an updated Zoning Ordinance that
will incorporate the goals and policies of the
LUCE and establish public outreach processes
and review procedures. Targeted areas of the
City will be subject to area plans and specific
plans to ensure that they are developed
in ways that are consistent with the stated
objectives of the LUCE. These implementation
tools will allow for the realization of the
progressive and innovative concepts of the
LUCE that will transform the City.

I. MANAGING AND
MONITORING CHANGE –

TRACKING OUR PROGRESS
The LUCE makes a strong commitment to
monitoring and measuring the progress of
implementation over the life of the Plan.

This allows the City to assess, evaluate and
respond to naturally changing conditions,
new information, and new ideas. Growth
management allows the healthy evolution
of the City while preserving community
resources for future generations, addressing
environmental justice, and minimizing the
negative impacts of new development on
existing neighborhoods. The LUCE provides
the ability to measure, reassess and modify
policies as conditions change throughout the
life of the Plan.

SUSTAINABLE

SANTA MONICA
Sustainable City
Report Card Fourth Annual
September 18, 2008
The Sustainable City Plan was created to enhance our resources, prevent harm to the natural environment and human health, and benefit the social and economic well-being of the community for the sake of current and future generations. chapter 5.0
SANTA MONICA LUCE | 5.0 - 5
Measuring progress will rely on a set of
indicators and trends or targets. Establishing
a trend or target is not intended to generate
additional goals but to create a means by
which the City can measure the performance of
the Plan. The LUCE review will be coordinated
with and build upon the Sustainable City Plan’s
biennial Sustainable City Report Card. Some
of the indicators take root in those previously
identified in the SCP, and new indicators are
being developed from the transportation
demand model to reflect a more sophisticated
method of managing congestion.

To coordinate with the monitoring schedule
of the Sustainable City Report Card, the LUCE
land use indicators could be reviewed at
least every four years or in accordance with a
monitoring framework approved by the City
Council. The LUCE builds upon the Sustainable
City Plan’s biennial Sustainable City Report
Card process by giving more specificity to the
existing transportation goals, and presenting a
new opportunity to implement the goals of the
SCP with respect to economic development,
open space, and human dignity. Indicators
associated with these areas will be reported
with the publishing of the Sustainable City
Report Card. The overall progress report will
measure key trends that assess the Plan’s
implementation, progress,
and phasing.

Potential Indicators to be Measured
The LUCE is designed with an inherent
control mechanism by allowing the City to
adapt and change the Plan according to new
circumstances. Measurements allow the City
to see how the Plan is progressing, identify
trends early, and proactively manage change.

The process by which meaningful trends and
indicators can be measured was sketched out
in concept during creation of the LUCE and will
be carefully developed in detail after adoption.

Potential data sources include: surveys; City
permit tracking and other newly-developed
data collection mechanisms; citywide Travel
Demand Model; census data; regularly
published reports and indices; and population,
housing and employment estimates from other
government agencies. When needed, this
will allow the City Council to respond to new
opportunities and challenges. Measurements
will parallel key goals of the LUCE to ensure
that performance matches the vision of the
Plan. The preliminary concept for measuring
and monitoring utilized the LUCE’s extensive
public engagement process and is organized
into the following five core areas that relate to
the framework elements of the Plan.

Residents and stakeholders will continue to be actively involved in shaping and evaluating the progress of the LUCE. measuring progress

5.0 - 6 | SANTA MONICA LUCE
A Complete Community
A key tenet of the LUCE is the integration of
land use with transportation through mixeduse development that includes affordable and workforce housing limits as well as marketrate housing in areas accessible to transit such as activity centers and transit districts
and along major bus routes including Lincoln
Boulevard, Wilshire Boulevard, and Santa
Monica Boulevard. This strategy will also
focus daily needs and services within walking
distance of existing neighborhoods. This
category identifies progress towards the LUCE
vision of sustainable, accessible, and complete
neighborhoods where residents can shop, play,
and socialize locally. Specifically, trends and
measures to evaluate could include the ability
of residents to access daily needs and services;
access to open space amenities; housing
affordability; and diversity of housing types.

Neighborhood Conservation
The LUCE preserves and protects
neighborhoods by not allowing development
that conflicts with or detracts from the existing
community character. This category addresses
the key preservation and protection strategies
for residential areas, and assesses whether
the neighborhood conservation initiative has
been successful in retaining the strong sense
of community and connectedness that defines
many of Santa Monica’s neighborhoods.

Trends and measures to evaluate progress could
include neighborhood safety; compatibility
of new development; construction impacts
including vacant and abandoned properties;
and the state of the urban forest.

Transportation Choice
The LUCE strives to create a land use pattern
that is integrated with transportation choice,
proactively manages congestion, reduces
the number of vehicle trips and increases the
number of trips made by transit, walking and
biking. This category measures the success of
proactive congestion management policies,
including the No Net New Evening Peak Period
Vehicle Trips target as measured by the Travel
Demand Model.

Tracking our progress through regular data collection, reporting, and evaluation of trends and measures will enable the community to adapt to changing conditions and ensure that the LUCE remains a living document. Regular reporting will measure our progress toward creating complete neighborhoods, protecting existing communities and increasing transportation choice. chapter 5.0
SANTA MONICA LUCE | 5.0 - 7
Trends and measures to evaluate progress
could include the shift from the automobile
to other modes of travel; net new Santa
Monica-generated trips in the evening peak
period; vehicle miles traveled per capita; and
completeness of bicycle and
pedestrian networks.

A Fiscally Healthy City
The ability of the City to continue to provide
high service levels and to implement many
of the innovative actions and programs of
the LUCE relies on a healthy and sustainable
economy based in a diversity of sectors,
including visitor and local-serving uses,
hospitality, creative and cultural arts, small
businesses, hospitals and medical facilities,
schools and retail. The goals and policies of
the LUCE strive to maintain the Downtown as
a thriving citywide and regional destination,
while also supporting independent, small
businesses and the creative arts that give the
neighborhood commercial areas like Main
Street and Montana Avenue their unique local
flavor. Also important is a greater diversity of
employment options and economic sectors in
order for Santa Monica to continue to enjoy
relatively stable revenue streams. Options
for expansion include green industries and
businesses engaged in advanced research
and development.

This category monitors the fiscal health of
the City to ensure revenues that support
continued high levels of services and quality
of life. It addresses the diversity and economic
health of the City’s commercial districts for
commercial, cultural/arts, healthcare, and
educational activities. Trends and measures to
evaluate progress could include diversity of
revenue-generating economic sectors; share
of sustainable businesses that generate high
revenue with low resource consumption; ratio
of jobs to available housing units; and quality
of municipal services ranging from emergency
response to recreational and maintenance
operations.

The LUCE also considers the fiscal health of the City, which is important in order to allow residents to continue enjoying highquality services and response levels, and a variety of cultural, recreational and educational enrichment programs. measuring progress

5.0 - 8 | SANTA MONICA LUCE
Public Engagement
The process of making the LUCE a dynamic
and responsive document will depend on the
ability to continue to fully involve residents
and stakeholders in the public discourse.

This category measures success in engaging
stakeholders in civic life and community process,
allowing for meaningful input, sharing of
information, and a clear understanding of why
decisions are made.

Specifically, trends and measures to evaluate
could include number of community meetings
held for proposed development projects;
diversity of opportunities for public input, and
public understanding of the civic decisionmaking process.

II. NEIGHBORHOOD

CONSERVATION
The community’s highest priority is to preserve
the existing character and scale of Santa Monica’s
neighborhoods. The LUCE proposes a robust
and diverse collection of policies and programs
to control the type of change occurring within
existing neighborhoods, including:
ƒ Neighborhood Conservation Overlay Districts
ƒ Courtyard housing protections
ƒ Modified demolition regulations to protect
existing neighborhoods
ƒ Modified development standards to preserve
neighborhood character
ƒ A Transfer of Development Rights program
ƒ Parking management programs
ƒ Educational tools and programs
(See chapter 2.2 Neighborhood Conservation for further
information.)
III. AREA PLANS AND

SPECIFIC PLANS
Area plans and specific plans are a useful
bridge between the broad policies of the
General Plan and the prescriptive standards
of the Zoning Ordinance. These plans give
special attention to a sub-area and identify
opportunities consistent with the General
Plan’s vision. Additional regulations, conditions,
programs, standards and guidelines bring the
citywide vision into local focus. Such plans are
often used to ensure that multiple property
owners and developers adhere to a common
plan or coordinate multiple phases of a longerterm development project.

State law (Government Code Section 63450)
authorizes cities to adopt specific plans for
implementing their general plans in designated
areas. These plans may include types of uses,
development standards and design standards,
circulation and infrastructure improvements.

Specific plans have been used in Santa Monica
to guide development in the Downtown
through the Bayside District Specific Plan, in the
Civic Center through the Civic Center Specific
Plan, and in the vicinity of Saint John’s Health
Center and Santa Monica-UCLA Medical Center
through the outdated Hospital Area Specific
Plan, which will be repealed and replaced by
the underlying zoning and/or a new HASP, and
with respect to Providence Saint John’s Health
Center, a Master Plan.

The LUCE calls for the creation of area plans
and new or modified specific plans for a
number of locations. The public process for
the development of these plans should pursue
broad outreach with a range of stakeholders
that is tailored to the area and could include
surrounding neighbors, property owners,
tenants, schools, developers, businesses,
students, teenagers, families, seniors, social
service agencies, and religious institutions.

Three specific plans are identified as priorities:
• Downtown Specific Plan
• Hospital Area Specific Plan or an effective
alternative to the HASP
• Santa Monica Airport/Business Park Specific
Plan
Area plans and specific plans should address
the key opportunities and potential for the
area, and at a minimum include the following:
ƒ Specific criteria by which development will
proceed
ƒ Location, phasing and amount of land uses
chapter 5.0
SANTA MONICA LUCE | 5.0 - 9
ƒ Development demands on hard and soft
infrastructure such as transportation, water,
sewage and energy consumption
ƒ An implementation program for
comprehensive public and private
development.

Area Plans for the Activity Centers
An area plan is proposed for each activity
center overlay identified in the LUCE. In
addition to location-specific issues, these area
plans should identify the following overarching
issues:
ƒ Principles to guide the activity center
overlay’s interface with the surrounding
neighborhood
ƒ Identification of improvements that are
candidates for community benefits
ƒ Opportunities for parking districts that
provide common shared parking to serve the
commercial and residential development
ƒ Strategies to implement a Transportation
Demand Management District for trip reduction
ƒ Bicycle and pedestrian access priorities
ƒ The most appropriate locations for open
space
ƒ Implementation strategies
ƒ Specific opportunities for shared access
and service
ƒ Methods to encourage the development of
affordable and workforce housing
ƒ Open space criteria for new boulevard
development
Plans for the Districts
ƒ Specific plans, area plans, studies or
amendments to existing plans will be prepared
for the districts listed.
(See chapter 2.6 Districts for further information.)
Bergamot Transit Village Area Plan
Establish a new neighborhood focused around
the Bergamot Light Rail Station and including
expanded housing opportunities, local-serving
retail uses, creative arts, employment, and
consolidated parking in a small grid network of
streets and pedestrian pathways.

Downtown Specific Plan Update
Update and replace the existing Bayside District
Specific Plan and encompass an expanded
Downtown area stretching to
Lincoln Boulevard, and linking to the Civic
Center and Oceanfront.

Mixed-Use Creative Neighborhood Area Plan
Coordinate with the Bergamot Transit Village
Area Plan to create new connections to the
Expo Light Rail and the City’s pedestrian,
bicycle, transit, and automobile grids. The
development intensity will reflect the district
location as a transition zone to lower-scale
residential neighborhoods to the north and
east and will feature mixed-use commercial/
residential neighborhoods where opportunities
for creative arts jobs are balanced with a variety
of affordable, work force and market-rate
housing and local-serving retail and services.

In addition to new plans to be created for new districts, specific plans to be updated or replaced include the Civic Center Specific Plan and the Hospital Area Specific Plan in order to reflect evolving community values and address new challenges and opportunities. measuring progress

5.0 - 10 | SANTA MONICA LUCE
Hospital Area Specific Plan Update
Update or repeal the outdated HASP
concurrently with the master plans for both
Saint John’s Health Center and Santa MonicaUCLA Medical Center to reflect the LUCE vision and boundaries, including portions of
Santa Monica Boulevard, Wilshire Boulevard,
Broadway and Colorado Avenue. The updated
plans should address the preservation and
enhancement of surrounding residential
neighborhoods and the changing needs of
the healthcare community—with expanded
healthcare uses, such as medical offices and
retail to provide a complete neighborhood
that supports the primary use of healthcare.
and which reduces vehicle trips. Particular
attention should be given to affordable and
workforce housing for area employees, and
comprehensive parking and trip reduction
strategies.

Civic Center Specific Plan Update
Update the CCSP to reflect the emergence
of the district as an integral link between
the Downtown, Beach and Oceanfront, and
Main Street Districts and the Ocean Park
neighborhood—in addition to being the
civic and cultural core of the City. Address
pedestrian activation of the edges of the
Palisades Garden Walk and along Pico
Boulevard, improve physical and visual access
to the Santa Monica High School campus,
connect to the Downtown Light Rail Station,
and pursue opportunities to cap the I-10.

Pico Boulevard Corridor Area Plan
Create a plan to encourage pedestrian activity,
neighborhood retail, north-south connections
and shared parking. The plan should also look
at public/private reinvestment potential and
select opportunity areas for infill to achieve the
broader vision.

Santa Monica Airport/Business Park Specific
Plan, Streetscape Plan for Ocean Park
Boulevard
The Specific Plan for the Business Park should
identify redevelopment opportunities and
desired mix of uses for the business park,
utilization of surface parking area, land uses
and enhancements for the north side of
Ocean Park, and integration with future of
Santa Monica Airport, if known. A streetscape
improvement plan for Ocean Park Boulevard,
from Centinela to Lincoln Boulevards should
be explored at the same time, or earlier, that
emphasizes pedestrian and bike safety, wider
sidewalks, dedicated bike lanes and
green space.

Updating the Zoning Ordinance and Map is a critical step in implementing the goals and policies of the LUCE. chapter 5.0
SANTA MONICA LUCE | 5.0 - 11
Industrial Conservation Area Study
Explore the potential to attract industries to this
area that contribute to the City’s sustainability
goals. Conduct a study to identify whether there
are appropriate sites for 100 percent affordable
housing, particularly in the area between 17th
Street and Cloverfield Boulevard.

Local Coastal Program Land Use Plan
ƒ Update the LCP Land Use Plan (LUP) to be
consistent with the LUCE goals and policies for
the Beach and Oceanfront District, Downtown,
and residential neighborhoods within the
Coastal Zone. Until the LUP update is
complete, if any conflicts arise between the LUP
and the LUCE, the policies of the LUCE shall
take precedence in the Coastal Zone.

IV. ZONING ORDINANCE AND

MAP REVISIONS
The Zoning Ordinance and associated Zoning
Map are critical tools for implementing the LUCE.

The City will prepare a comprehensive revision
to the Zoning Ordinance and Map, consistent
with the vision, goals and policies of the LUCE
to include, among other things, the land use
classifications and development standards
outlined in the LUCE. The updated Zoning
Ordinance will be a central regulatory mechanism
that must be carefully prepared and work in
concert with the LUCE in order to achieve the
City’s and community’s goals. Innovative LUCE
concepts to be incorporated into the revised
Zoning Ordinance include,
but are not limited to:

Mixed-Use
ƒ The creation of mixed-use boulevards and
districts that reorient regional commercial areas
toward housing for a range of income levels
ƒ Ground floor pedestrian-oriented uses and
standards that encourage local-serving goods
and services and community-serving amenities
ƒ Ground floor residential uses that are
oriented towards the street within areas
designated as Mixed-Use Boulevard Low on
Santa Monica Boulevard, Pico Boulevard,
and Broadway allowing new development
to be more compatible with the surrounding
neighborhood character; the residential
development should be designed to engage
the street with street-facing doors and
fenestration, ground floor open space, porches
or stoops.

Affordable and Workforce Housing
ƒ Continuation of the City’s effective
implementation of the Affordable Housing
Production Program in compliance with
Proposition R
ƒ Additional opportunities to provide a greater
share of housing for all income levels including
very low, low, moderate and above moderate,
including housing for employees of area
businesses
Neighborhood Conservation
ƒ Modified development standards in the
residential zoning districts to achieve greater
conservation of residential quality, type and
character
ƒ Modified development standards to require
projects to be of a compatible scale and
character with the existing neighborhood;
provide respectful transitions between new
and existing structures; conform to building
envelopes that preserve access to light and
air and require appropriate setbacks along
neighborhood streets; and provide ground level
open space
ƒ Modified demolition process that considers
neighborhood defining character issues such as
aesthetic, social and cultural attributes
ƒ Neighborhood Conservation Overlay
Districts to address conservation of distinctive
New requirements for TDM measures should be included in modifications to the Zoning Ordinance.
measuring progress

5.0 - 12 | SANTA MONICA LUCE
neighborhood features, streetscape, and site
planning; protections for unique properties,
sites or building types
ƒ Programs for addressing transportation
and parking issues starting in areas with the
greatest on-street parking scarcity
Community Benefits
ƒ Complete neighborhoods achieved through
a program for community benefits that
responds to the community’s broader social
and environmental goals
ƒ Maximum by-right base height and intensity
for new development
ƒ Incorporate of special rules for new
development that requests to build above
the base height or intensity; such new
development will be subject to a Development
Review Permit or its equivalent or a
Development Agreement with those additional
requirements consistent with the community’s
broader social and environmental goals
Enhanced Public Engagement Process
Changes to the development review process to
allow for early public review and input during
the conceptual phase of a project. The purpose
of early consultation is two-fold:
ƒ It provides an opportunity for residents to
gain a clear understanding of the timing and
steps involved in the development review
process
ƒ It takes place at a time when the project
concept is still flexible, providing the
community the greatest opportunity to actuate
change in the project components. These
concept review meetings will also increase
certainty for the neighborhood and developer
and reduce costly changes during the
entitlement process.

Transportation Demand Management and
Circulation Standards
ƒ Incorporation of requirements for TDM into
the Zoning Ordinance that will be applied to
project review in order to achieve the City’s
goals for GHG reduction and climate change
prevention.
ƒ Coordination of TDM provisions with
potentially reduced or shared parking
requirements to maximize land efficiency
and minimize disruption, while still providing
adequate parking for area uses.
ƒ Consideration for shared and reduced
parking requirements for projects with
comprehensive TDM programs located near
transit.
ƒ Updating the Municipal Code, as
appropriate, with the Circulation Element
actions and programs in Section VI of this
chapter.

V. REVIEW OF

PROPOSED PROJECTS
Development proposals that conform with
stated goals and policies of the LUCE are
the implementation tools that have the most
direct influence on the City’s ability to achieve
complete communities, housing opportunities,
and integrated transportation and land use.

Exacting review is the primary method by
which the City ensures that individual projects
achieve the vision, goals, and standards of the
community. The vision is set by the General
Plan, and the standards are established in the
Zoning Ordinance. Although Santa Monica has
limited vacant land, it is anticipated that over
the time horizon of this Plan, some properties
in the City will redevelop as existing structures
reach the end of their useful life, and/or as
property owners seek more effective use of
their sites.

An enhanced public review process will include early concept review, and revised standards and criteria.
chapter 5.0
SANTA MONICA LUCE | 5.0 - 13
Objective Standards and Criteria
By stating the goals and policies for each land
use designation and each neighborhood,
boulevard, district, and activity center, the
LUCE creates certainty for residents and
developers and establishes how development
projects can positively affect the character,
form, and quality of the city.

Objective standards and criteria rooted in
community priorities and measures to mitigate
the impacts of new development will be the
method by which all administrative projects
will be reviewed. Review of discretionary
projects that involve new construction will be
guided by a new incentive system that places
significant emphasis on inclusion of affordable
housing and other community benefits with
the objective that new development should
contribute to the city’s physical, environmental,
and cultural goals. Types of review for new
projects are described below and include:
ƒ Ministerial review for projects that fall within
established base height and FAR limits
ƒ Planning Commission and/or City Council
review for projects that exceed base height
and FARs
ƒ Development Agreements
Maximum Ministerial Base Height and FAR
and Provisions for Increases when Projects
Offer Community Benefits
The LUCE establishes a maximum ministerial
base height of 25–35 feet. As an incentive,
additional height and FAR above the base
may be granted, subject to a discretionary
review process, if it meets community benefit
criteria. A Development Agreement may be
required for these increases in height and FAR.
(See chapter 3.2 Community Benefits for further
information.)
VI. TRANSPORTATION

IMPROVEMENTS AND

PROGRAMS
The Circulation Element acknowledges that
due to regional growth around Santa Monica,
congestion and associated GHG emissions will
continue to occur even if no new development
occurs in the City for the next 20 years. In
response, the LUCE establishes an aggressive
goal of No Net New Evening Peak Period
Vehicle Trips with a Santa Monica destination
or origin and includes the GHG reduction
targets articulated in the Sustainable City Plan.

Progress toward achieving the stringent
GHG reduction targets established by the
Sustainable City Plan and regaining control
over some of the existing negative trends
related to citywide circulation will be aided by
the transportation improvements and programs
outlined in the Circulation Element. Specific
actions identify local funding, implementation
measures, partnerships and cooperation that
must occur at a regional level. For the first
time, the success of transportation investments
may be measured by the effect on the quality
and experience of the transportation system,
particularly streets and the various modes of
travel: walking, biking, transit and automobile.

The following are the programs and actions to
be implemented for each component of the
transportation system.

Measuring the success of streets includes examining how well streets support active recreation and living. The LUCE encourages the design and use of streets to be for more than just automobiles. measuring progress

5.0 - 14 | SANTA MONICA LUCE
Performance Measures
Streets
Streets should support active living, and this
contributes toward local and regional air
quality, sustainability, and GHG reduction
goals. The following are specific investments
for streets:
ƒ Establish transportation performance
criteria for each street to reflect the Circulation
Element goals and principles and incorporate
these into the Sustainable City Plan.
ƒ Establish transportation impact analysis
criteria for each street to reflect the Circulation
Element goals and principles.
ƒ Establish street design standards and
management tools for each street to reflect
Circulation Element principles.
ƒ Review transportation system performance
regularly and adjust resources to align with
community priorities.

Walking
The pedestrian environment should be safe,
comfortable and attractive. The following are
specific investments for the walking network
based on funding availability:
ƒ Public Improvements
ƒ Create a destination-oriented pedestrian
signage program.
ƒ Establish a plan for separate spaces for
pedestrian and cyclists for the entire beach
path. Work with the City of Los Angeles
to discuss the construction of similar
treatments in the areas of Los Angeles
adjacent to Santa Monica.
ƒ Create a priority list for enhanced
pedestrian crossings along all major
boulevards. Construct enhancements as
funding becomes available.
ƒ Develop a plan to enhance alleys citywide
to create a Shared Street environment. In
the Downtown areas, create “Arts Alleys”
as described in Creative Capital, the City’s
cultural master plan.
ƒ Create a priority list of locations in the City
where sidewalks should be completed.

Construct new or reconstruct existing
sidewalks as funding becomes available.
ƒ Create a priority list of locations to install
dual curb ramps to improve the pedestrian
environment and construct ramps as
funding becomes available.
ƒ Construct pedestrian improvements
identified through Safe Routes to School
programs.
ƒ Information and Education
ƒ Establish Safe Routes to School programs
such as “walking school buses,” walking
audits, classroom instruction and
promotional events.
ƒ Create a program to educate parents about
the benefits of their children walking to/
from school. Emphasize the existing high
levels of safety in Santa Monica.
ƒ Create a program to promote pedestrian
safety through outreach both to pedestrians
and motorists.
ƒ Policies and Projects
ƒ Develop a pedestrian plan that
incorporates design standards and policies
and provides a framework for prioritizing
investments in pedestrian improvements.

The pedestrian environment should offer convenient and
comfortable access to local services while also functioning as a social gathering place.

Improvements to the pedestrian network will include new crosswalks coupled with educational programs to ensure safe access to schools.
chapter 5.0
SANTA MONICA LUCE | 5.0 - 15
ƒ Conduct a pedestrian environment study
that identifies locations that may be
difficult for the disabled. As part of the
plan, develop a priority list of physical
improvements and identify potential
funding sources.
ƒ Prepare citywide pedestrian design
guidelines that encourage walking.
ƒ Update the Municipal Code to improve
public and private standards addressing
driveway location, pedestrian-oriented
design and pedestrian-oriented lighting.

Biking
The bicycle network in Santa Monica should
feature high-quality facilities and safe,
interconnected, and convenient access that
promote a gradual shift towards increasing the
number of people who use bicycles for their
daily transportation needs. The following are
specific investments for the bicycle network,
based on funding availability:
ƒ Public Improvements
Parking
ƒ Identify locations where more bike parking
would be beneficial and install bicycle racks
and bicycle storage facilities, as funding
becomes available.

Signage
ƒ Develop a plan for beach access bikeway
signage and way-finding mechanism.
ƒ Develop a plan for destination-oriented
bikeway signage and way-finding systems
to direct riders to bikeways and major
destinations such as hospitals, schools,
shopping districts, and bike share/rental
and repair locations.
ƒ Treatments and Facilities
ƒ Install countdown indicators to inform
cyclists and pedestrians of time remaining
to cross the street.
ƒ Create design standards addressing
bicyclists at intersections, and as funding
becomes available, upgrade existing
intersections to the new standard and
prioritizing the areas identified on the
bicycle map as “Key Connections.”
ƒ Construct and ensure operation of bicycle
transit access centers, which provide
amenities such as secure bike parking, bike
repair, and transit information.
ƒ Create a public bicycle rental program with
a network of drop-off and pick-up locations
throughout the community.
ƒ Collaborate with the SMMUSD to identify
bicycle routes around and/or through Santa
Monica High School and promote cycling
for students.
ƒ Collaborate with Santa Monica College to
identify a bicycle route in the 17th Street
corridor through the college campus and
promote cycling for college students.
ƒ Reduce bicyclist-pedestrian conflicts along
the beach bike path, such as larger standing
areas for pedestrians and expansion of the
pedestrian path.
ƒ Development Review
Parking
ƒ Update bicycle parking requirements for
new development and periodically monitor
bicycle parking demand and use demand
data to monitor and adjust requirements.

Signage
ƒ Require projects to provide directional
signage to ensure users know where to find
bicycle parking.

Facilities
ƒ Establish requirements for access to
showers and locker facilities for bicycle
commuters in new developments.
ƒ Create a system of bicycle-transit access
centers that provide secure bike parking,
rentals, repairs, showers, and transit
information located at rail stations, major
bus stops, and destinations.

A complete and safe bicycle network, including features such as bicycle harbors, will facilitate a gradual shift towards increasing the number of cyclists.
measuring progress

5.0 - 16 | SANTA MONICA LUCE
ƒ Information and Education
ƒ Develop a program of personalized travel
marketing to help those interested in
bicycling to find the best route to travel.
ƒ Establish a program to promote bicycle
safety through outreach both to bicyclists
and motorists.
ƒ Partner with regional agencies to develop
Web-based, real-time bicycle route
mapping tools.
ƒ Promote classroom instruction and
information on bike safety and awareness
that targets different populations such as
seniors, children, and commuters.
ƒ Create Safe Routes to School programs
with the goal of making them selfsupporting.
ƒ Encourage events to promote bicycling,
such as National Car Free Day and Bike-toWork Day with events throughout the City. ƒ Work with the Convention and Visitors
Bureau to provide bicycle rentals and
information about cycling at hotels and
popular tourist attractions.
ƒ Policy and Projects
ƒ Develop a bicycle master plan—include a
discussion of the feasibility and prioritization
of specific recommended measures and
facilities.
ƒ Encourage others to adopt effective
regulations regarding innovative bicycle
design and technologies.
ƒ Create design standards for “living streets”
where pedestrians, bicycles and low-speed
motor vehicles safely share the streets,
especially in the neighborhoods of Ocean
Park and directly south of the Pier.
ƒ Complete major gaps in the bikeway
network including: connections to all future
rail stations and activity centers; Expo
Light Rail bike path; Connections between
Stewart Park and Bergamot Station; “Key
Connections” to all schools and major
employment centers; bicycle and pedestrian
bridge across the Santa Monica Freeway
at 7th Street; connections from Ocean
Avenue to the beach bike path, focusing
on opportunities at Montana Avenue,
the California Incline, Arizona Avenue,
Broadway, and the Santa Monica Pier;
Enhancements to Airport Avenue between
Airport Park and 23rd Street; improve
connections with the City of Los Angeles,
including Dewey Street between Marine
Park and 23rd Street.

Transit
The transit system should aim to increase
transit ridership by providing high-quality
and high-frequency service to increase
interconnections between Santa Monica
and the region and to improve intra-city
connections within Santa Monica. The following
are specific investments for the transit network,
based on funding availability:
ƒ Public Improvements
ƒ Implement signal prioritization for transit
along regional and connecting transit
streets.
ƒ Establish queue-jump lanes or transitonly lanes when signal prioritization is inadequate to maintain transit speed and
reliability.
ƒ Regularly update the Big Blue Bus Service
Improvement Plan, with an emphasis on
service efficiency and improved regional
connections.
ƒ Update transit technology systems
to maximize use with communication
technology.
ƒ Create guidelines for major bus stops that
include amenities such as real-time bus
arrival displays, shade, lighting, trash cans,
and benches.
ƒ Expand existing transit stop improvements
program, including real-time bus arrival
displays and schedule information.

Transit investments that enhance passenger convenience
could include bus shelters that provide real-time information such as time and next bus arrival.
chapter 5.0
SANTA MONICA LUCE | 5.0 - 17
ƒ Information and Education
ƒ Provide transit information at popular
tourist destinations and hotels on transit.
ƒ Create a universal transit pass program
developed and implemented in partnership
with transit agencies, schools, colleges, and
major employers.
ƒ Establish transit information centers in all
libraries and locations within TDM Districts.
ƒ Include transit information with
communications from the City of
Santa Monica.
ƒ Policies and Projects
ƒ Prepare an analysis to identify appropriate
fees which could support transit, such as
development impact fees, variable parking
fees or an increased parking tax.
ƒ Expand shared ride access, such as vanpool
programs to supplement existing transit
service, for larger employers.
ƒ Create detailed station area plans for all
Expo Light Rail stations.
ƒ Support regional rail planning efforts.
ƒ Establish local planning projects to prepare
for future rail service and station areas.
ƒ Work with the Expo Construction Authority
to seek a PUC waiver to allow parking on
both sides of Colorado Avenue with two
transit lanes, two travel lanes, and sufficient
sidewalk widths.

Automobiles
The main purpose of the roadway network
is the efficient movement of cars on Santa
Monica’s major boulevards and limiting access
through local residential streets. Congestion at
the local and regional level can be managed
by locating bottlenecks away from residential
and commercial areas, thereby reducing entry
points into the City, and by striving to manage
travel times on major boulevards and avenues.

The following are specific investments for
the automobile network, based on funding
availability:
ƒ Public Improvements
ƒ Establish traffic analysis guidelines
and significance thresholds to isolate
congestion in the areas with the least
negative impact on the neighborhoods,
neighborhood commercial areas and the
Downtown.
ƒ Install and maintain real-time signage,
especially at freeway exits and in the
downtown, to direct traffic to available
parking to reduce congestion.
ƒ Implement an Advanced Traffic
Management System to improve signals.
ƒ Develop a Traffic Management Center to
optimize motor vehicle flow throughout the
City.
ƒ Study Civic Center circulation
improvements to improve bus, automobile
and pedestrian circulation at the Expo Light
Rail terminus, including new connections
over the freeway.
ƒ Private Development
ƒ Restrict driveways on boulevards and major
avenues where access is available from a
side street or alley.
ƒ Ensure safe and convenient design of
projects, including safe interaction between
private property and the public right-of-way.
ƒ Information
ƒ Establish way-finding and real-time
information systems.
ƒ Information on safe motoring skills
and habits.
ƒ Policies and Projects
ƒ Revise neighborhood traffic management
policies to reflect LUCE goals.
ƒ Develop a traffic signal master plan.
ƒ Restrict new building driveways on major
avenues and boulevards, where access is
available from a side street or alley.
ƒ Establish traffic engineering standards to
ensure that they are up-to-date and support
a multi-modal transportation system.
ƒ Create design guidelines for shared
streets in residential neighborhoods where
rights-of-way are constrained, ensuring
autos travel slowly enough to mix with
pedestrians and cyclists.
ƒ Target speeds for each street classification.
ƒ Incorporate indicators into the Sustainable
City Plan that support the goals and policies
of the LUCE.
ƒ Establish congestion management targets
and significance thresholds by individual
district and corridor.
ƒ Create a Transportation Management
Center to consolidate real-time information
on roadway conditions, manage intelligent
transportation tools, and coordinate
traffic management planning and parking
operations among City departments and
outside transportation agencies.
measuring progress

5.0 - 18 | SANTA MONICA LUCE

MANAGEMENT TOOLS
Transportation Demand Management
TDM Districts are at the core of the City’s trip
reduction strategy and will ultimately allow the
LUCE to achieve the aggressive goal of No
Net New Evening Peak Period Vehicle Trips.

The following are specific actions that may be
undertaken as part of a city- or district-wide
TDM program:
ƒ Establish targets for mode split between
walking, bicycling, transit and vehicle trips for each
TDM District and the City as a whole, and develop
strategies to achieve those targets.
ƒ Form Transportation Management
Organizations (TMOs), Business Improvement
Districts, or other organizations to help manage
vehicle trips at a local level.
ƒ Explore approaches to unbundle the cost of
parking from the cost of housing for new multifamily projects. ƒ Include the following features as part of a
TDM Program:
ƒ Bike-transit centers, with bicycle parking,
bike rentals, bike repair shops, lockers,
showers, and transit information and
amenities (such as maps, schedules, and
sales of fare media like monthly passes)
ƒ Bike-sharing program, with public bicycle
rentals located throughout the City
ƒ Car-sharing program
ƒ TMOs to provide TDM programs and
coordinate parking management activities
for distinct sub-areas of the City
ƒ The provision by employers, institutions or
residents’ associations of Universal Transit
Passes for Big Blue Bus and Metro
ƒ Safe access to transit program to provide
safer bicycle and pedestrian access to
transit stops
ƒ Vanpool and carpool ride-matching
services for TMOs and employers, including
customized, real-time, online tools
ƒ Mobility Centers located in each TMO
that create a one-stop shopping center for
residents, employees, and visitors to get
information on travel options
ƒ Methods of monitoring of TDM programs
to ensure that each TMO or employer
meets specified trip reduction targets
ƒ Approaches to increase car-sharing: new
development providing “right-of-firstrefusal” to parking spaces for car-sharing organizations, and the City providing public
on- and off-street spaces to qualified carshare operators for little or no change Parking
Controlling the availability of parking can
be a tool for achieving housing affordability,
congestion management, and air quality goals.

The availability of parking will be controlled
by four main tools: (1) adjusting supply and
demand by restricting access to parking through
special permits, (2) providing alternatives more
attractive than driving, (3) allowing parking to be
used on a “first-come, first-served” basis, and
(4) pricing strategies. The following are specific
actions that may be undertaken as part of a
parking management strategy:
ƒ Update parking requirements in the City’s
zoning code to reflect the latest parking
demand data and the City’s parking principles,
including loading and drop-off areas for markets,
restaurants, schools, child care, healthcare, and
senior housing.
ƒ Update residential parking permit district
ordinance to include expanded options for
Parking management strategies, such as real-time information, can help to achieve LUCE goals, including congestion
management.
chapter 5.0
SANTA MONICA LUCE | 5.0 - 19
increasing parking availability for residential
neighborhoods.
ƒ Create parking management policy with
availability targets for various areas of the City.
ƒ Update codes to reflect policy decisions on
shared parking, unbundled parking, in-lieu fees,
independently accessible parking, mechanized
parking, and universal valet programs.
ƒ Work with car-share operators to create a
strategy for establishing a strong car-share
program in Santa Monica.
ƒ Update parking payment equipment so
that motorists may use a variety of convenient
payment options.
ƒ Expand real-time parking availability
information.

VII. CAPITAL IMPROVEMENTS
At the heart of the LUCE are goals and polices
that are the catalysts for positive physical and
environmental changes in the community. A
number of specific physical improvements
are needed to ensure the complete
neighborhoods, transportation systems, and
green streets envisioned in the LUCE Plan,
such as:
ƒ Wider sidewalks, and enhanced crosswalks
ƒ Additional street trees to complete
the urban forest, and enhanced parkway
landscaping
ƒ Infrastructure repair to ensure consistent
service
ƒ Transit service and facilities improvements
ƒ Bicycle paths, lockers, showers, and parking
ƒ Shared parking facilities
The City’s Capital Improvements Program
(CIP) itemizes specific improvements
and indicates schedules and anticipated
funding. Construction of public facilities
and infrastructure is an important link
between the development of the City and
the implementation of the General Plan, and
the CIP provides the tool to link them. For
example, the CIP can be used to time and
control targeted development objectives by
locating and programming public facilities
and infrastructure in areas where targeted
development is planned. Specific capital
improvements identified in the LUCE should
be programmed into the City’s CIP during each
funding and project selection cycle. Each CIP
should be reviewed by the City Council for
consistency with the General Plan prior
to approval.

Physical investments, such as the Expo Light Rail, are
necessary in order to implement many of the LUCE goals
and policies.
measuring progress

5.0 - 20 | SANTA MONICA LUCE
VIII. COORDINATION

ON REGIONAL TRANSIT

INVESTMENTS
Several larger City transportation investments
still in early stages of consideration include:

Beach Shuttle
Santa Monica should explore pedestrianfriendly shuttle services to transport passengers along the beach. This will improve access to
the beach with limited local transit service and
limited auto parking.

Downtown Circulator
The City should explore transit connections
between the Downtown Light Rail Station and
the transit mall and Downtown area, the Civic
Center, the Pier and the Beach. A Downtown
circulator service effectively linking all of these
transit stops and destinations would expand
the area served by each individual line, as well
as support shared parking in the Downtown.

Expo Light Rail
The Expo Light Rail line is a planned and
funded extension of the regional rail system to
Downtown Santa Monica. Although planning
decisions and funding for this line are made
by regional agencies, the City has a key role in
ensuring the project is implemented effectively.

The targeted operational date is 2015. The
high-frequency connectivity to the larger region
and the three stations at Bergamot Station,
Memorial Park, and Downtown, slated to serve
Santa Monica will be a tremendous benefit for
the City and will positively impact the ability to
achieve the City’s congestion management and
GHG emission reduction goals.

Westside Subway
A Westside Subway Extension, also identified
as “Subway to the Sea,” is being studied by the
regional transit agency to extend the heavy rail
subway originating in Downtown Los Angeles
and include two or three stations in Santa
Monica, most likely on Wilshire Boulevard.

While the proposal has a time horizon that
will likely exceed the lifetime of the LUCE, the
City will continue to work toward prioritizing
this project and ensuring that stations are
consistent with City plans.

The LUCE is the blueprint for Santa Monica’s future and should be the guiding document upon which decisions regarding community priorities are made. This will ensure the ability to measure our success in “stepping lightly” and preserving valued resources for future generations to enjoy.
chapter 5.0
SANTA MONICA LUCE | 5.0 - 21
IX. BUDGETING DECISIONS IN

LINE WITH GENERAL PLAN
Budget Development
As a statement of the City’s 20-year vision
and specification of actions and programs
developed from goals and policies, the
LUCE should act as an integrating tool for
setting spending priorities and developing
work programs for the City. However, it is not
feasible to fund all of the programs and actions
at once. The annual budget approval process
should use the LUCE as an assessment tool for
determining funding decisions and timing. This
process ensures that the Plan remains relevant
and that the community’s long-term vision
is realized.

Fee Revisions
Long-Range Planning Recoup Fees
Costs for city planning documents, such as
general plans and specific plans are, generally,
reimbursed by pro rata allocation of fees to
developers applying for development permits
in the plan area. To enable continued longrange planning for the activity centers, and to recoup the significant investment in the
LUCE, the City should explore and prepare
any studies necessary to establish a pro rata
planning fee. Such a fee would enable detailed
and comprehensive planning to ensure careful
design and implementation of the Plan visions.

Impact Fees
One of the key principles of the LUCE is for
development to pay its way. This can include
private investment in utilities and infrastructure
as well as community-wide benefits. Examples
of such facilities may include child care centers,
cultural facilities, and green space. Should
the construction of community facilities at
the developer’s sole expense not be feasible,
a fair-share contribution to a community
improvement fund could be made. It is
expected that a linkage study would need
to be prepared to establish a reasonable
relationship between the fees imposed and
the impact of the new development.
appendix
SANTA MONICA LUCE | A - 1

ECONOMICS AND

DEMOGRAPHICS
The purpose of this section is to provide
background information that supports the
forecasts and policies presented in chapter

3.4 of the LUCE, Diversified and Sustainable
Economy. It also describes in some detail those
components of the City’s economic base that
present significant opportunities in the future,
including retail commercial activities, visitorserving activities, creative industries, localserving office employment, and the healthcare industry.

In reviewing this appendix, it is important to
consider that the strong performance of the
local economy is critical to the City’s ability to
fund public services as well as to maintain the
proper setting for private economic activities
that offer jobs and provide for other needs of
local residents and visitors. In this regard, the
major functions of a diversified and sustainable
City economy under the LUCE may be
summarized as follows: ƒ Create opportunities for personal and community growth and provide the basis for
enjoyment of a high standard of living.
appendix
A - 2 | SANTA MONICA LUCE
ƒ Respond to the needs of its residents for
local services and provide a source of jobs.
ƒ Respond with flexibility to technological
change and adapt to internal and external
forces for change.
ƒ Promote superior economic performance
by capitalizing on opportunities presented by
land use and related development policies that
encourage businesses locating in the City.
ƒ Serve as an important force in the promotion
of social equity and diverse residential
neighborhoods.
ƒ Encourage and support other goals of the
community such as sustainability and mobility.
ƒ Ensure that Santa Monica can meet its
current economic needs without compromising
future generations to do the same.
ƒ Encourage and support other goals of the
community such as sustainability and mobility.

BACKGROUND
In July 2005 the City’s Planning and
Community Development Department
published the Opportunities and Challenges
Report, a document that provides important
economic background information about the
City while framing the key economic questions
that are addressed in the LUCE. These issues
included the following:

How can Santa Monica plan for the
regional aspects of its economy, medical
and educational institutions, and locational
draw to create balanced growth and
enhance the quality of life for residents?
In this regard, Santa Monica has become a
major regional source for certain types of
employment, such as creative industries and
medical services.

What role can visitor services play in Santa
Monica’s future?
The hotel sector, together with other visitorserving industries, is a major contributor to the City’s fiscal health. For Fiscal Year 2008-2009
transient occupancy tax revenues (TOTs) were
$31.7 million, representing nearly 13 percent of
the anticipated revenues that support the City’s
General Fund.

How much new housing should Santa
Monica plan for to maintain inclusiveness
and opportunities for affordable housing
and yet retain an “appropriate town scale,”
and what types of new development could
fulfill the City’s diversity and quality of life
objectives?
Housing in the City is a complex issue that
transcends purely economic considerations
related to the market forces of supply and
demand. In recent years the combination
of land scarcity, the desirability of the City
as a residential location, vacancy decontrol,
regional growth pressures and a multiplicity of
other factors have led to an emerging polarity
in the market supply of housing, with highpriced “market-rate” units at one end and low-priced “affordable” units at the other,
leaving a large gap in the middle of the market
that is underserved. This market need is often
identified as “workforce housing,” in reference
to those middle income residents that provide
essential services to the City’s residents such
as teachers, police and firemen, and hospital
workers.

How best can the existing industrial areas
meet Santa Monica’s needs?
The Opportunities and Challenges Report
documents that manufacturing jobs have
been declining for the last 20 years, and it is
highly unlikely that this trend will be reversed
in the future. Notwithstanding the strong
market demand for reutilization of the existing
industrial lands, it is important to recognize
that they constitute a scarce land resource in a
community that is virtually built-out, and that
they accommodate a variety of commercial and
industrial services that are important both to
residents and to other businesses.
appendix
SANTA MONICA LUCE | A - 3
What is the appropriate scale and mix of
uses for boulevard commercial corridors,
and what is the appropriate scale and
character of specialty commercial
corridors?
The LUCE envisions new land use strategies
in the form of activity centers that integrate
economic opportunity with transit programs,
focused development incentives, and public
benefits. In this regard, it is important to
recognize that each of the major boulevards
and commercial streets has a special character
that has evolved due to its location, existing
use, development character and market(s)
served. The LUCE recognizes the unique
elements of each corridor.

How can the City maintain its economic
vitality and protect economic advantages?
According to the Opportunities and Challenges
report, the City’s economic vitality and
locational advantages can be assessed from
three different, yet interrelated perspectives.

These are the following:
ƒ Employment Wage Levels. Employment
sectors can be evaluated in terms of their
typical pay scales and growth characteristics
as well as their multiplier effects in the local
community.
ƒ Concentration/Specialization. Relative
to Los Angeles County, Santa Monica has
a number of business types that exhibit a
pattern of high concentration attributable to
the community’s unique location and other
competitive advantages.
ƒ Fiscal Contribution. Sectors can be
evaluated in terms of their contribution to the
City’s General Fund via a range of revenue
sources, including transient occupancy taxes,
sales taxes, utility taxes, property taxes, and
various licenses and fees.

One important set of industries that are highly
concentrated in the City are the “Creative
Industries” that constitute entertainmentrelated businesses, media/communications, and visual and performing arts. Together, they
constitute an important cultural resource to
the community as well as a source of local
employment.

How can the City foster small businesses,
“incubator” industries and establishments
that contribute to, and maintain, its
uniqueness?
Recognizing the importance of small
businesses, in general, and the specific desire
of the community to provide for the local
employment space needs of local residents,
the LUCE presents land use and transportation
strategies that encourage locally-focused small
businesses and introduces new concepts for
community-scaled commercial space that is
local-serving and dispersed throughout
the City.

POPULATION AND

SOCIOECONOMIC

CHARACTERISTICS
The following sections provide a review of the
population and socioeconomic trends and
projections that were originally presented
in the Opportunities and Challenges Report
prepared in 2004–2005, and serve as important
background information to the LUCE. Many
of these original projections have been
updated to reflect recent economic trends
and information related to changes in housing
supply and occupancy characteristics that have
taken place in the community.

Southern California Regional Growth
Perspectives
While the proper focus of the LUCE is rightfully
placed on the future use of the lands which
are within the boundaries of Santa Monica,
the City’s present and future is also directly
related to the larger Southern California region
which encompasses six counties—Los Angeles,
Orange, San Bernardino, Riverside, Ventura
and Imperial—and over 18 million people.

Over the period 2000 to 2030, this six-county
region is anticipated to grow and change as
follows:
ƒ Total population growth is projected at over
6 million persons, increasing at an annual rate
of over 200,000 residents per year.
appendix
A - 4 | SANTA MONICA LUCE
ƒ This population increase, along with other
demographic changes, will result in 2.26 million
additional households that will require housing
at a rate of almost 100,000 new units annually,
after allowing for vacancy and the replacement
of obsolete units.
ƒ The population will age significantly; the
percent of total population aged 65 years or
more will increase from 10 percent to
17 percent and number over 4 million by
the year 2030.
ƒ Employment growth for the period is
projected at over three million jobs or about
100,000 net new jobs on an annual basis,
assuming that one of every two residents will
be employed.

Given the growing scarcity of developable land
within the region, the most likely impact of this
regional population growth will be to create
significant pressures for intensification of land
use in existing cities.

Population Trends
As noted in chapter 3.4, the scale and
composition of Santa Monica’s current and
future population is an important consideration
that impacts the LUCE process, as local
resident demographic characteristics provide
insights regarding likely demand for housing,
local services, transportation and cultural
facilities. Santa Monica’s population growth
patterns and socioeconomic characteristics
differ in material respects from the rest of the
Southern California region. As a group, its
residents tend to be older, more affluent, and
more homogeneous racially and ethnically
while living in smaller households.

In chapter 3.4, two population estimates were
provided for the City as of January 2009;
one was provided by the State of California
Department of Finance; according to their
Demographic Research Unit, the population
currently stands at 92,494 persons, constituting
a net increase of 8,410 persons over the last
nine years. However, it should be recognized
that this is an estimate based on reported
housing activity and somewhat dated vacancy
rate estimates and household size estimates
that appear overstated given the population’s
age structure and housing supply composition.

Accordingly, an alternative estimate based
more closely on the average household size
reported historically in the US Census reports
suggests that the City currently has about
88,700 residents1
.

The Southern California Association of
Governments (SCAG) provides forecasts of
population, household and employment
growth for the Southern California region
that are generally relied upon by its
member counties and cities for land use
and transportation planning. While local
jurisdictions including Santa Monica may
disagree with forecast specifics, they still
serve as an important baseline that reflects
explicit policies at the regional scale. The most
recently adopted 2008 forecast prepared by
SCAG provides a 30-year projection for the
region covering the period 2000-2030. After
consideration of the SCAG forecasts, two
forecasts for the City’s future population were
made, utilizing the two current population
estimates as the basis for the future growth
projection. As shown in Table 1 (opposite
page), they suggest that the population by
2030 could range from 93,500 persons to
96,500 persons, representing a total growth
for the period of between 5,100 persons
and 5,600 persons, or an annual growth of
230 to 250 persons. Thus, both forecasts are
consistent insofar as they represent Santa
Monica as a mature city with limited capacity
for significant future residential growth.

It should be noted that the Opportunities
and Challenges Report conducted a review of
prior SCAG forecasts and presented its own
series of three alternative 20-year projections
covering the period from 2005 to 2025 for the
City of Santa Monica based upon differing
assumptions about migration and growth.

Under the assumptions guiding these forecasts,
1 It is important to note that the last detailed information regarding population is nine years old, and all estimates and forecasts will be subject to review and revision upon completion of the census that will be conducted in 2010. appendix
SANTA MONICA LUCE | A - 5
the projected 2025 population for the City
ranged between a low of 77,215 persons
to a high of 109,123 persons, representing
annual net changes that range from a low of
-406 persons to a high of +1,038 persons.

In comparison, the current forecasts fall in the
middle of the extremes that came from the
Opportunities and Challenges report more
detailed examinations.

Socioeconomic Characteristics
As a group, the residents of Santa Monica
exhibit a number of unique socioeconomic
characteristics that distinguishes the City
from the aggregate of Los Angeles County.

These special attributes are presented and
summarized in Table 2.

Age
With a median age of 39.3 years, the typical
Santa Monica resident is more than seven years
older than the typical county resident. One
in seven residents is aged 65 or over; for the
county overall, less than one in ten is 65 years
of age or over.

Household Size
For both owners and renters, households in
Santa Monica are substantially smaller than
the typical county household, averaging 1.83
persons per unit in contrast to the county’s 2.98
persons per unit.

City of County of
Socioeconomic Characteristic Santa Monica Los Angeles
Age: Median Age in Years 39.3 32.0
Percent of Residents 65 and Over 14.4% 9.7%
Persons per Household: Owners 2.24 3.14
Renters 1.63 2.84
All Households 1.83 2.98
Ethnic Composition: White, Non-Hispanic 71.9% 31.1%
Hispanic/Latino 13.4% 44.6%
All Other Ethnicities 14.7% 24.3%
Total 100.0% 100.0%
Nativity/Place of Birth: Born in United States 75.2% 63.8% Foreign Born 24.8% 36.2%
Total 100.0% 100.0%
Language Spoken at Home: Other than English 29.2% 54.1% Educational Attainment: Bachelor's Degree or Higher 54.8% 24.9% Income Level : Median Family Income $ 75,989 46,452$
Average per Capita Income $ 42,874 20,683$
Persons Living in Poverty: Number of Residents 8,740
Percent of Residents 10.4%
Source: 2000 U S Census.

Table 2
SOCIOECONOMIC COMPARISON: CITY OF SANTA MONICA AND LOS ANGELES COUNTY 2000
Estimate Estimate
2008 2009 2010 2015 2020 2025 2030 Annual Growth Total
Low Current Estimate 88,400 88,700 88,900 90,000 91,000 92,000 93,500 232 5,100 High Current Estimate 90,926 92,500 92,800 93,700 94,800 95,900 96,500 253 5,574 Projected Change, 2008-2030
Table 1

ALTERNATIVE POPULATION FORECASTS FOR CITY OF SANTA MONICA 2008-2030
(Rounded)
appendix
A - 6 | SANTA MONICA LUCE
Ethnicity
Santa Monica residents classify themselves
as over 70 percent “White/Non-Hispanic”;
in contrast, the county overall is just over 30
percent “White/Non-Hispanic”, with Hispanic/
Latino residents likely to become at least 50
percent of the total population by 2010.

Educational Attainment
Nearly 55 percent of adult Santa Monica
residents have Bachelor’s or higher degrees,
more than double the county average.

Income Level
Similar to educational attainment, the Santa
Monica resident income levels are well above
the county average. Per capita incomes
averaged $42,874, more than twice the county
average of $20,683. Median family incomes
were measured at $75,989, over 60 percent
higher than the county average.

Persons Living In Poverty
Despite the high educational attainment and
relative affluence in the community, in 2000
over 10 percent of the City’s population had
incomes that were defined as at or below the
poverty level.

Labor Force
The labor force includes City residents who are
at least 16 years of age and are employed or
looking for work. The labor force participation
rate in the City is 69.5 percent, a figure
substantially higher than the county average
of 60.5 percent. About one-third of the labor
force (32.3 percent) works in Santa Monica.

The future size and composition of the labor
force, coupled with the degree to which City
residents choose jobs located in the City rather
than outside it, has a number of implications
for planning. A good “match” between the
City’s labor force and the mix of jobs located
in the City could lead to a higher percentage
of residents who also work within the City.

Such a match is encouraged by the LUCE in
its support of locally-focused employment
opportunities.

Three labor force projections have been
prepared for Santa Monica covering the
period from 2005 to 2025 based upon the
alternative population forecasts presented
in Table 3 (page A-7). The participation rates
are consistent with those used by SCAG, and
are generally constant over the projection
period with one major exception: labor
force participation is expected to increase
markedly for older workers, ages 55 and over.

This adjustment is consistent with national
forecasting assumptions indicating that the
older residents in the future will likely enjoy
better overall health and longevity, thus
working longer than in the past.

Under the alternative scenarios, the City of
Santa Monica resident labor force is shown
to potentially change in the future from
its 2005 level of 51,390 participants to (1)
somewhere between 65,605 participants, for
a net growth of 14,215 participants; or (2)
decline to 44,625 participants, thus recording
a net loss of 6,765 participants. The mid-range
projection suggests that the City’s labor force
could expand at a rate of about 400 net new
participants annually, recording a net growth of
5,044 participants between 2005 and 2025.

Employment Characteristics
As noted in chapter 3.4, growth in employment
is a key consideration in maintaining the
strength of the local economy, as jobs typically
represent the primary source of income for
most residents and local employers typically
are the major sources of the City’s municipal
revenues that pay for ongoing public services.

In contrast to the City’s labor force—which
essentially measures the capacity of the
residents to work but not where they work—
employment provides a measure of the actual
number of jobs that are located within the
community, and serves as the foundation for
appendix
SANTA MONICA LUCE | A - 7
its long term economic growth and stability. As
current employment totals and employment
projections have been reported previously,
the following paragraphs examine the unique
aspects of the local employment base in the
City.

There are a number of employment sectors
or “industries” which have found important
economic advantages from locating in Santa
Monica, and so have concentrated in the
City in much greater proportionate numbers
than they are found typically throughout the
region. This relative concentration is measured
by a “Location Quotient,” where a value
greater than 1.00 means that the sector has
a concentration of jobs in the City that is
greater than the county average. Often, these
industries are viewed as “drivers” of the local
economy insofar as they generate income from
sources located outside the City. The sectors
in the City of Santa Monica which have the
highest Location Quotients typically are found
in four industry categories: the Information/
Creative Arts, Retail, Professional Services and
Visitor-Serving sectors. Those industries with
the highest location quotients are listed in
Table 3.

ECONOMIC SECTOR ANALYSIS
The following sectors were evaluated with
respect to their potential to contribute to the
economic well-being of the community:
ƒ Hotels/Tourism
ƒ Retail, including cinemas
ƒ Automobile dealers, an important
component of the City’s retail base
ƒ Creative employment, including both
information-related and cultural occupations
ƒ Medical Facilities
Hotel/Tourism Sector
The Hotel/Tourism sector is a major contributor
to the City of Santa Monica, both as a source of
private employment and as a major contributor
to the General Fund through the generation
of Transient Occupancy Taxes (TOT) and sales
taxes. Based upon surveys conducted by the
Santa Monica Convention & Visitors Bureau
(SMCVB), visitors produce TOT, sales and other
tax revenues that are estimated to amount
to 15 – 20 percent of the current revenues
of the City’s General Fund; during 2007 the
average TOT generated by hotel occupancies
amounted to the equivalent of $9,000 per hotel
room.

The SMCVB monitors the activities of three
types of visitors to the City of Santa Monica:
ƒ Overnight visitors utilizing hotels.
ƒ Overnight visitors staying with friends or
other non-hotel accommodations
ƒ Day visitors who reside outside Los Angeles
County
Recent growth in visitation by each visitor
type is shown in Table 4 (page A-8). Over the
period 2003 to 2006/2007, total visitors to
Santa Monica increased by 19 percent from
4,679,000 to 5,578,200 visitors, a net growth
of nearly 900,000 visitors. Leading this positive
trend has been overnight hotel guests with a
54 percent increase in their visitor nights.

The significance of an individual overnight
visitor on the local economy is perhaps best
expressed by their typical expenditure patterns.

As noted in Table 5 (page A-8), each visitor
to the City spent an average of $153 per day
Location
Industry Sector Quotient
Hotels, Motels and Other Accommodations (Visitor-Serving) 3.56 Real Estate 3.37
Electronics and Appliance Stores (Retail) 2.41
Non-Store Retailers (Retail) 2.38
Securities, Commodity Contracts and Other Financial (Services) 2.37 Professional, Scientific and Techical Services (Services) 2.22 Sporting Goods, Hobby, Book and Music Stores (Retail) 2.07 Clothing and Clothing Accessories Stores (Retail) 1.99
Personal and Laundry Services (Visitor-Serving) 1.97
Performing Arts, Spectator Sports and Related (Information) 1.88 Telecommunications (Information) 1.87
Motion Picture and Sound Recording Industries (Information) 1.66 Food Service and Drinking Places (Visitor-Serving) 1.64 Motor Vehicle and Parts Dealers (Retail) 1.63
Publishing Industries (Information) 1.60
Source: EDD; HR&A Advisors, Inc.

Table 3

INDUSTRIES THAT ARE CONCENTRATED IN SANTA MONICA
BASED UPON EMPLOYMENT LOCATION QUOTIENT ANALYSIS, 2004
appendix
A - 8 | SANTA MONICA LUCE
in 2006, an amount that is equivalent to the
average daily expenditure for a typical visitor to
Hawaii. The visitor staying overnight in a hotel
spent $100 more per day ($255) equivalent to
what was spent by the overnight hotel visitor
to the Island of Maui in Hawaii during the same
period.

Overnight visitors to Santa Monica are served
by the City’s 35 hotels that presently offer
3,407 rooms. Of this inventory, 2,448 rooms,
or 72 percent of the available inventory, are
in the Luxury/Deluxe and First Class category.

During 2006–2007 the four classes of facilities
combined to achieve an occupancy rate of 83.6
percent, well above the ounty average which
was in the mid-70 percent range.

The recent (2002–2008) growth in hotel
occupancy rates coupled with the likely
continued growth in visitation, indicate that
there should continue to be a strong demand
for hotel facilities. While the performance of
the hotel industry has softened during the
national recession in 2008 and 2009, over the
longer term there should be market support
of the development of new hotel facilities.

As demonstrated in Table 6 (page A-9),
projecting into the future 11 years to 2020 at
a comparatively modest growth rate of 1.5
percent annually, hotel demand in the City of
Santa Monica should reach 4,315 rooms, a net
increase by 908 rooms over the current supply.

Approximately 260 rooms of this total room
demand would logically fall within the “MidPrice” or “Budget/Value” price ranges.

While Proposition S places restrictions on
the location of new hotel facilities westerly of
Ocean Avenue, oceanview rooms are a scarce
commodity and should be maintained to the
maximum extent possible through renovation
or replacement of existing facilities. In addition,
as noted in chapter 3.4 there are a number of
other areas within the City of Santa Monica that
are suitable for new or expanded hotel use.
2003 2006–2007 Percent Growth
Overnight Visitors Utilizing Hotel Accommodations 496,000 761,900 54% Overnight Visitors Staying with Friends or in Other Accommodations 178,000 200,600 13% Day Visitors who Reside Outside LA County 1/ 4,005,000 4,615,700 15% 4,679,000 5,578,200 19%
1/ A "Day Visitor" by definition lives outside Los Angeles County. Thus, the typical Los Angeles County beach visitor/shopper is not included in the total visitor count.

GROWTH IN VISITATION TO CITY OF SANTA MONICA, 2003–2007 Source: Santa Monica Visitors and Convention Bureau (SMVCB); W & W, Inc.

Table 4
Santa Monica State of Hawaii
1 All Visitors 153$ 156$
2 Hotel Visitors Only
Expenditure Type Santa Monica Maui Island
Lodging/Spa 116$ 130$
Shopping 73$ 33$
Food and Beverage 44$ 49$
Other 23$ 44$
Total 255$ 257$
Source: State of Hawaii Department of Business, Economic Development & Tourism; SMVCB; CIC Research, Inc.; W & W, Inc.

Table 5

COMPARISON OF DAILY PER CAPITA EXPENDITURES
CITY OF SANTA MONICA AND STATE OF HAWAII, 2006
appendix
SANTA MONICA LUCE | A - 9
Retail Sector
Table 7 (page A-9) documents the growth in
taxable retail sales over the 11-year period
1996 through 2007. During this time frame
taxable retail sales have nearly doubled,
increasing from $1.38 billion to $2.59 billion, a
net growth of nearly $1.21 billion. The average
annual rate of growth before inflation was 5.9
percent; after adjusting for inflation, the rate
remained a healthy 4.5 percent. However,
while the City achieved a reasonable level of
growth on an overall basis, some categories of
retail stores were very successful in capturing
increasing demand while others failed to keep
pace with the growing economy.

It should be noted that the retail stores have
been grouped in a manner that reflects,
to some extent, the manner in which retail
stores are currently positioned in the market
place. “Shopper Goods” or “Comparison
Goods” refer to stores that are commonly
found in regional shopping centers, specialty
shopping centers, downtown districts and
special boulevards like Montana Avenue
and Main Street. Given the price and other
characteristics of the goods sold, the customer
typically “compares” alternatives while making
the purchase decision. Stores selling goods
in the Shopper Goods category include
Apparel and Accessories stores; General
Merchandise/Department stores; Furniture,
Home Furnishings and Appliance stores; and
Other/Specialty stores, a category covering a
diverse range of shops that sell items such as
jewelry, books, stationery, and sporting goods.

Convenience Goods include stores selling
drugs, variety items, and food and beverages;
typically, these items are purchased near the
home or workplace on a frequent basis, and
the shopping decision is based primarily on
convenience. The Eating and Drinking Facilities
Potential Supportable Rooms Supportable Rooms Net Increase Total Total Average Hotel Annual Estimated 2008 at 75% Occupancy w/ 1.5% Annual Growth in Supportable Rooms Hotel Class Hotels Rooms Size in Rooms Room Nights Occupancy Rate Rate, 2008 2009-2020 by Classification, 2020 Luxury/Deluxe 8 1,578 197 575,970 80.0% 1,683 1,983 405 First Class 6 870 145 317,550 80.0% 928 1,093 223
Mid-Price 9 586 65 213,890 85.0% 664 782 196
Budget/Value 12 373 31 136,145 78.0% 388 457 84
Total 35 3,407 97 1,243,555 80.6% 3,663 4,315 908
Less: Existing Rooms, 2008 3,407
Net Increase in Supportable Rooms, 2020 908
Source: PFK Consulting; AAA; CIC Research, Inc.; W & W, Inc.

Table 6

MARKET POTENTIAL FOR ADDITIONAL HOTEL ROOMS, CITY OF SANTA MONICA 2009-2020
Retail Store Category 1996 2007 Net Increase Annual Percent Net Increase Annual Percent Shopper Goods
Apparel and Accessories Stores 145,213 323,297 178,084 7.5% 129,076 6.0% General Merchandise/Department Stores 106,131 63,041 (43,090) -4.6% (31,232) -3.1% Furniture, Furnishings, Appliances 101,681 285,376 183,695 9.8% 133,143 7.9% Other/Specialty 270,981 344,552 73,571 2.2% 53,324 1.6% Total, Shopper Goods 624,005 1,016,265 392,260 4.5% 284,312 3.5% Convenience Goods
DrugStores 27,858 44,077 16,219 4.3% 11,756 3.3%
Food and Beverage Stores 70,690 100,613 29,922 3.3% 21,688 2.5% Total, Convenience Goods 98,548 144,690 46,142 3.3% 33,444 2.7% Eating & Drinking Facilities
Limited Service Restaurants 82,910 125,880 42,970 3.9% 31,145 2.9% Full Service Eating & Drinking Places 165,855 333,902 168,047 6.6% 121,801 5.1% Total, Eating & Drinking Facilities 248,765 459,782 211,017 5.3% 152,946 4.5% Building Materials Group 63,322 126,251 62,929 6.5% 45,611 5.1% Automotive Group 292,091 702,087 409,997 8.3% 297,167 6.6% Service Stations 53,310 137,758 84,448 9.0% 61,209 7.2% All Other (Boat, Motorcycle Dealers, et al) 3,421 297 (3,125) -19.9% (2,265) -9.4% Grand Total, Retail Stores 1,383,462 2,587,131 1,203,669 5.9% 872,424 4.5% Source: State of California, State Board of Equalization; W & W, Inc.

Table 7

TAXABLE RETAIL SALES GROWTH BY MAJOR RETAIL CATEGORY
CITY OF SANTA MONICA RETAIL STORES, 1996 AND 2007
(in Thousands of Current and Constant Dollars)
Net Change in Taxable Sales, 1996-2007
Measured in Current Dollars
Net Change in Taxable Sales, 1996-2007
Measured in Constant 1996 Dollars
appendix
A - 10 | SANTA MONICA LUCE
category includes two types of restaurants:
“Restaurants, no Alcohol,” encompassing fast
food facilities, coffee houses and sandwich
shops; and “Restaurants with Alcohol,”
encompassing dinner restaurants and
high-quality dining. Finally, the other retail
categories are largely self-explanatory, and
include the Building Materials Group that
covers lumberyards to boutique hardware
stores and home finishing products, and to
garden supplies; the Automotive Group,
encompassing new and used automobile
dealers and auto parts stores; Service Stations;
and All Other stores, a catch-all category
that covers boat, motorcycle, RV dealers and
related types of stores.

In the analysis of the four categories of
Shopper Goods, it can be seen that two
of the retail store groups—Apparel Stores
and Furniture/Furnishings—have been very
successful in terms of sales performance.

In contrast, sales have declined in General
Merchandise/Department stores, attributable
in many respects to the loss of the Robinson’sMay store in Santa Monica Place. In addition, the “Other” or Specialty store group has failed
to keep pace with the other Shopper Goods
facilities in terms of sales performance.

With regard to Convenience Goods and
smaller eating establishments classified as
“Limited Service Restaurants,” sales have been
consistent, but well below the performances
achieved by restaurants classified as ”Full
Service Eating & Drinking Places.” The former
retail store groups have achieved annual sales
growth in the 3 – 4 percent range, while the
latter groups recorded annual gains in excess
of 6 percent.

Baseline Assumptions
City Population, 2007: 89,650 Percent of Income Allocable for Retail Sales 33.4% Income per Capita (BEA Definition): 76,293$ Total Potential Retail Sales (in '000s) 2,284,449$ Potential Resident Actual 1/ Surplus (+) or Actual Sales as Retail Store Category Retail Sales Retail Sales Shortfall (-) Percent of Potential Shopper Goods
General Merchandise/Department Stores 223,114 63,041 (160,073) 28.3% Apparel and Accessories Stores 118,475 323,297 204,822 272.9% Household Furnishings/Appliances Group 92,329 285,376 193,047 309.1% Specialty Group, incl Used Merchandise 309,662 344,552 34,890 111.3% Subtotal 743,580 1,016,266 272,686 136.7%
Convenience Goods
Food and Beverage Stores 291,673 332,325 40,652 113.9%
Drug Stores 99,172 36,212 (62,960) 36.5%
Subtotal 390,845 368,537 (22,308) 94.3%
Eating and Drinking Facilities
Limited Service Restaurants 130,231 125,880 (4,351) 96.7% Full Service Eating & Drinking Places 151,323 333,902 182,579 220.7% Subtotal 281,554 459,782 178,228 163.3%
Building Materials Group 145,996 126,651 (19,345) 86.7% Automotive Group
Auto Dealers/Parts 514,892 702,087 187,195 136.4%
Service Stations 194,498 137,758 (56,740) 70.8%
Other (Boat, Motorcycle Dealers, et al) 13,092 297 (12,795) 2.3% Subtotal 722,482 840,142 117,660 116.3%
Retail Stores Total 2,284,456 2,811,378 526,922 123.1%
1/ Actual Retail Sales include both taxable sales as shown in Table 15 and estimates of non-taxable retail sales.

Source: State of California, State Board of Equalization; U S Census of Retail Trade; W & W, Inc.

Table 8

COMPARISON OF POTENTIAL RESIDENT RETAIL SALES WITH ACTUAL RETAIL SALES RETAIL STORES IN CITY OF SANTA MONICA, 2007
(in Thousands of Current Dollars)
appendix
SANTA MONICA LUCE | A - 11
An analysis of retail sales “leakage” was
undertaken in order to assess the degree to
which Santa Monica’s retail store base has
been capturing existing resident demand.

To this end, an evaluation was undertaken
which compared the retail sales generated
in the City of Santa Monica during 2007 with
the projected demand for sales from City
residents. The results of the comparison for
2007 are presented in Table 8 (page A-10).

The data indicate that the City’s total retail
sales, including both taxable and non-taxable
retail transactions that were generated by
retail stores, exceeded $2.8 billion while the
potential retail demand from Santa Monica
residents was estimated at less than $2.3
billion. This comparison indicates that on the
macro-level of total retail store sales the City’s
retail base achieved a net inflow of retail dollars
totaling approximately $527 million, an amount
that was 23 percent above the theoretical
Santa Monica resident demand. Store
categories that created the greatest surpluses
included Apparel and Accessories, Household
Furnishings/Appliances and Full Service Eating
& Drinking Places. There were several retail
sectors that did not generate sales at or near
the levels that would be expected given the
size and character of local resident demand.

These poorly-performing sectors included
General Merchandise/Department Stores,
which achieved the equivalent of only 28
percent of potential resident sales; Drugstores,
with 37 percent of potential sales; and Service
Stations, with 71 percent of potential sales.

With these initial results in mind, a second
leakage assessment was conducted for
selected retail store categories that considered
both resident demand and visitor sales derived
from the studies completed by the SMVCB.

Retail sales from visitor sources during 2007
that took place in retail stores were estimated
at $696 million. This total was then added to
potential resident demand in order to arrive at
a total potential sales figure for the City and for
the selected retail categories.

Table 9 (above) provides a summary of the
second leakage analysis where a comparison
was made for three general classes of retail
goods that matched demand from local
residents, plus known visitor sales with the
actual sales achieved. In this comparison,
the Potential Sales exceeded Actual Sales
by over $190 million, an indication that there
was a substantial loss of potential sales from
local residents that was being offset by visitor
expenditures. In effect, the analysis strongly
suggests that City of Santa Monica residents
are currently making extensive purchases
of both Shopper Goods and Convenience
Goods outside the City of Santa Monica. In all
likelihood, this outflow of retail sales by City
residents is likely far in excess of $200 million,
as the $190 million shown is a net figure which
does not consider additional resident sales
Baseline Assumptions:

Resident Population Potential Sales Estimated Visitor Retail Sales, 2007 (in Thousands) City Population, 2007: 89,650 Store Type Total Sales Allocation Income per Capita (BEA Definition): 76,293$ Shopper Goods Sales 467,800$ 100% Percent of Income Allocable for Retail Sales 33.4% Convenience Goods Sales 18,300$ 95% Total Potential Retail Sales (in '000s) 2,284,449$ Eating & Drinking Facilities 281,400$ 75% Total 767,500$ 91%
Potential Estimated Total Actual Surplus (+) or Actual Sales as Retail Store Category Resident Sales Visitor Sales Potential Sales Sales Shortfall (-) Percent of Potential Shopper Goods 670,731 467,800 1,138,531 1,016,266 (122,265) 89% Convenience Goods 420,514 17,385 437,899 368,537 (69,362) 84% Eating and Drinking Facilities 247,577 211,050 458,627 459,782 1,155 100% Total, Selected Retail Stores 1,338,822 696,235 2,035,057 1,844,585 (190,472) 91% Source: State of California, State Board of Equalization; U S Census of Retail Trade; W & W, Inc. (in Thousands of Current Dollars)
Table 9

COMPARISON OF POTENTIAL RESIDENT RETAIL SALES AND ESTIMATED VISITOR RETAIL SALES WITH ACTUAL RETAIL SALES SELECTED RETAIL STORES IN CITY OF SANTA MONICA, 2007
appendix
A - 12 | SANTA MONICA LUCE
outflows that are offset by Los Angeles County
residents—including local Malibu, Pacific
Palisades and Brentwood households—coming
to the beach and to the various shopping
districts.

The analysis of the growth patterns of the
City’s various retail sectors together with the
supply and demand comparisons indicate that
the City is currently losing retail sales to other
jurisdictions and has significant potential for
expansion of its retail base. These potential
market sources include the following:
ƒ Local resident demand, including demand
generated from anticipated population and
income growth over the next five to ten years,
as well as recapture of potential retail sales that
are currently leaving the community
ƒ Visitor growth, particularly overnight visitors
ƒ Potential sales from residents of surrounding
communities
At present, sales captured by Santa Monica
retailers from adjacent communities would
appear to be relatively small, and certainly
not large enough to offset the resident sales
that are being made outside the City. The
refurbishment of Santa Monica Place will
make a major contribution in addressing this
retail opportunity; however, there should
also be major opportunities for additional
major drugstores, general merchandise and
department stores and unique one-of-a-kind
specialty retail stores.
(See chapter 3.4 Diversified and Sustainable
Economy for locations considered most
suitable for new retail development.)
Automotive Group/Service Stations.

Historically, the Automotive Group—consisting
of new and used automobile dealerships,
automobile leasing companies and automotive
parts dealers – have been an important
component of the City’s retail base. Together
with Service Stations, the Automotive Group
has grown faster than the other retail sectors in
terms of taxable sales over the 11-year analysis
period 1996–2007, annually increasing at a rate
of 8.4 percent and generating total taxable
sales of $840 million in 2007. As noted in Table
10 (above), during this time frame AutomotiveRelated retail establishments have increased their proportionate share of retail sales taxes
generated to the City from 25 percent to 32
percent, thus accounting for 41 percent of the
City’s increase in sales taxes from retail stores.

Given the strategic importance of automotive–
related sales to the City, it is important for the
LUCE to provide for the expansion and other
requirements of major automobile dealerships,
so they, in turn, can respond to changing
market and technological conditions and to
changes in the industry which could lead to a
significant contraction in the number of local
dealerships.

Cinema
Movie theatres have played a critical role in the
revitalization of Downtown Santa Monica and
the emergence of the Third Street Promenade
as a premier visitor destination in Southern
California. There are presently four major
1996 2007 Total Annual % Total Annual %
Automotive Group 292$ 702$ 410$ 8.3% 297$ 6.6%
Service Stations 53$ 138$ 84$ 9.0% 61$ 7.2%
Total, Automotive-Related Retail 345$ 840$ 494$ 8.4% 358$ 6.7% Retail Store Category
Percent of Total Retail Store Taxable Sales 25% 32% 41% 41% Source: State of California, State Board of Equalization; W & W, Inc.

Constant Dollars

TAXABLE RETAIL SALES GROWTH, AUTOMOTIVE-RELATED ESTABLISHMENTS CITY OF SANTA MONICA , 1996 to 2007
(in Millions of Current and Constant Dollars)
Table 10
Growth Growth
Current Dollars
appendix
SANTA MONICA LUCE | A - 13
cinema complexes in the Downtown offering a
total of 21 screens and over 5,500 seats. The
facilities were largely developed in the 1980s,
and their powers of attraction are generally
recognized as a major catalyst for the rise in
popularity of the Promenade and the entire
Bayside District.

As shown in Table 1, movie-going is a very
popular activity in Santa Monica. In terms of
total facilities, there is one screen for every
4,000 persons in Santa Monica, whereas the
national average is one screen for every 8,000
persons. Cinema revenue growth for the period
1997 to 2002, the most recent data available,
was 42 percent; while this gain was less than
the growth recorded by the State on an overall
basis, it was still very significant given that the
City’s inventory of theatres remained virtually
unchanged. Finally, it should be noted that
the average cinema revenues generated per
Santa Monica resident in 2002 was $321,
nearly 6 times the per capita average of $54
for the State. While the “average revenues
per resident” figure is inflated substantially by
dollars from patrons who live outside the City, it
does reflect the significance of the theatres as
attractions for the Downtown area.

While the 2002 data indicate that the local
cinemas were performing at a high level
relative to statewide performance standards, in
many respects they are experiencing the same
issues facing many types of entertainment
venues in that they are becoming obsolete
and need to be upgraded in order to maintain
their competitive edge and continue to draw
customers. In recent years major competitive
developments such as Westfield Century City,
Westside Pavilion and Downtown Culver City
have completed major theatre upgrades, with
their new facilities featuring state-of-the-art
sound systems stadium seating, reservation
systems and vastly improved food and
beverage service.

In recognition of the need to maintain
competitiveness and modernize the cinema
complexes in Santa Monica and in response
to recommendations by a City Councilappointed Promenade Use Task Force, the City is considering jointly redeveloping one of
the Downtown parking structures to include
modernized cinema facilities. Involvement by
the City in redevelopment of the cinemas is
appropriate given their importance as prime
attractions for the entire Bayside District. It
is also necessary due to the realities of land
ownership on the Third Street Promenade
and surrounding streets and the economics of
theatre operation. In major shopping centers
under a single unified ownership, the owner/
developer can provide theatres an implicit
subsidy in the form of relatively low rents in
comparison to what is typically charged other
tenants. However, in the Downtown area,
without some public involvement there is little
opportunity for theatre operators to assemble
sufficient land and generate viable economic
return from their operation if required to
United States Santa Monica
Facilities
Number of Screens 38,000 21
Average persons per screen 8,000 4,000
Cinema Revenue Growth , 1997-2002 (in Millions) 1997 2002 Percent Growth State of California 1,262$ 1,906$ 51%
Santa Monica 19$ 27$ 42%
Cinema Revenues per Resident, 2002
State of California 54$
Santa Monica 321$
Source: U S Census; National Association of Theatre Owners; W & W, Inc.

Table 11

COMPARATIVE CINEMA PERFORMANCE STATISTICS
appendix
A - 14 | SANTA MONICA LUCE
pay rents at levels comparable to high-end
retailers. Therefore, it will be important for
the LUCE to support the redevelopment
of the theatres by encouraging mixed-use
developments that can provide for their unique
requirements.

Creative Industries
In recent years the City of Santa Monica has
witnessed significant growth in the “Creative
Industries.” This change has occurred partly
as a consequence of the structural changes
in the regional economy which have led to
the emergence of entertainment services
and other information-related occupations to
replace aerospace and other manufacturing
employment, and partly due to the City’s
strategic westside location that is proximate to
the emerging complex of film and television
production studios that are found in Culver
City and Playa Vista. In addition, within the
community there is strong support for the
creative arts that has encouraged the rise of
public and private cultural institutions, venues
for performing arts and concentrations of art
galleries that are found at Bergamot Station
and along Main Street.

One indicator of the City of Santa Monica’s
interest in and support for Creative Industries
is the magnitude of local employment that is
focused in the creative and artistic fields. As
United States Santa Monica
Total Employment, 2006 132,000,000 75,000
Creative Arts Employment, 2006 2,900,000 11,500
Creative Arts Employment as % of Total Employment 2.2% 15.3% Source: Americans for the Arts; U S Census; W & W, Inc.

Table 12

RELATIVE TO THE UNITED STATES
(Rounded)

COMPARISON OF THE RELATIVE CONCENTRATION OF CREATIVE INDUSTRIES IN SANTA MONICA Percent of
Creative Industry Establishments Employees Total Employment Museums and collections 7 324 2.8%
Performing Arts 261 1,581 13.8%
Visual Arts/Photography 328 1,071 9.3%
Film, Radio and Television 659 5,073 44.3%
Design and Publishing 331 3,180 27.7%
Art Schools and Services 48 235 2.0%
Total 1,634 11,464 100.0%
Source: Americans for the Arts
Table 13
SANTA MONICA'S CREATIVE INDUSTRIES: COMPOSITION AND EMPLOYMENT LEVELS, 2006 Percent
Business Type 1997 2002 Increase
Software Publishers
Paid Employees 1,290 1,914 48.4%
Broadcasting & Telecommunications
Number of Establishments 30 51 70.0%
Motion Picture and Sound Recording Industry
Number of Establishments 380 457 20.3%
Source: U S Census; W & W, Inc.

GROWTH TRENDS IN INFORMATION-RELATED BUSINESSES
CITY OF SANTA MONICA, 1997-2002
Table14
appendix
SANTA MONICA LUCE | A - 15
noted in Table 12 (page A-14), relative to the
rest of the country, Creative Arts employment is
roughly 7 times as prevalent in Santa Monica.

Creative Industry clusters found in Santa
Monica are listed in Table 13 (page A-14),
with data indicating the number of businesses
and total employment. As of 2006 there were
1,634 businesses involved in Creative Activities
as defined by the organization Americans
for the Arts; total employment in this sector
was estimated at 11,464 jobs, though in all
likelihood, that was an understatement of the
total size of the local creative arts community
due to the fact that many artists are selfemployed, thus not included in the census. The leading Creative cluster in terms of size was
the Film, Radio and Television subsector, with a
total of 659 firms and 5,073 employees. Other
major clusters were Design and Publishing and
Visual Arts/Photography—the latter category
including the City’s visual artists.

Growth trends and other measures of recent
economic performance for the Creative
Industries are sketchy due to the Census
Bureau’s policies that restrict disclosure
of confidential information about private
businesses. Published data for InformationRelated Businesses suggest that major gains in recent years have been recorded
in the Software Publishing, Broadcast &
Telecommunications and Motion Picture and
Sound Recording Industries, as shown in Table
14 (page A-14).

Of particular significance is the emerging PostProduction Industry related to motion pictures and television. According to the most recent
available data provided for 2002, the City of
Santa Monica’s market share of employment
in this industry within Los Angeles County was

17.5 percent, as noted in Table 15.

There are a number of reasons for encouraging
the growth of Creative Industries in Santa
Monica. First, it would be consistent with
the City’s broader goals and commitment to
support the creative arts and related activities
within the community. Second, given the large
number of residents currently employed in the
creative fields or interested in such activities,
this type of employment can be viewed as
local-serving in character. Finally, traffic studies
indicate that many of these businesses such as
Post-Production companies have commuting
patterns which cause substantially less stress on
peak period traffic conditions than other more
conventional businesses.

Medical Facilities
The two major medical complexes in Santa
Monica—Santa Monica-UCLA Medical Center
(SM-UCLA) and Saint John’s Health Center (St.

John’s)—are gaining increasing importance
as regional resources, with service areas that
extend well beyond municipal boundaries
to Palos Verdes, Ventura County and even
northern Los Angeles County. Each hospital
is undergoing expansion in response to
the growth in their service areas and to the
changing technological requirements for
medical services space.

St. John’s is currently implementing a 17 -
year redevelopment and expansion program
following a Development Agreement
completed with the City in 1998. Phase I,
a 475,000 square foot redevelopment of
Establishments Paid Employment
Los Angeles County 709 12,947
Santa Monica 83 2,267
Santa Monica's Market Share 11.7% 17.5%
Source: U S Census; W & W, Inc.

RELATIVE CONCENTRATION OF POST-PRODUCTION FACILITIES IN SANTA MONICA, 2002 Table 15
appendix
A - 16 | SANTA MONICA LUCE
the main hospital that was damaged by
the Northridge Earthquake in 1994, will be
completed in 2008. Phase II anticipates the
development of a state-of-the-art medical
campus with 799,000 square feet of space.

The proposed mix of uses includes hospital
and healthcare facilities; medical office space;
research facilities; visitor housing and assisted
living and senior housing. Similarly, the SMUCLA is also undertaking a major expansion program that will likely create demand for
support services on adjacent sites.