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agenda-report Introduction and First Reading of an Interim Zoning Ordinance to Promote Economic Recovery by Increasing Flexibility and Streamlined Approvals in the Downtown and Establishing a Pilot Program for Exclusively Outdoor Commercial Uses in the Office Campus District and Introduction and Adoption of an Emergency Ordinance Amending the Sign Code to Increase Flexibility for Signage in the Bayside Conservation District and the Third Street Promenade Area

Santa Monica City Council
October 22, 2024

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agenda-report Introduction and First Reading of an Interim Zoning Ordinance to Promote Economic Recovery by Increasing Flexibility and Streamlined Approvals in the Downtown and Establishing a Pilot Program for Exclusively Outdoor Commercial Uses in the Office Campus District and Introduction and Adoption of an Emergency Ordinance Amending the Sign Code to Increase Flexibility for Signage in the Bayside Conservation District and the Third Street Promenade Area
Meeting
October 22, 2024
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Santa Monica City Council
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City Council
Report
City Council Meeting: October 22, 2024
Agenda Item: 10.A
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To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Introduction and First Reading of an Interim Zoning Ordinance to Promote Economic Recovery by Increasing Flexibility and Streamlined Approvals in the Downtown and Establishing a Pilot Program for Exclusively Outdoor Commercial Uses in the Office Campus District and Introduction and Adoption of an Emergency Ordinance Amending the Sign Code to Increase Flexibility for Signage in the Bayside Conservation District and the Third Street Promenade Area
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemption pursuant to Sections 15301 (Existing Facilities, 15303 (New Construction or Conversion of Small Structures), and 15311 (Accessory Structures) of the California Environmental Quality Act (CEQA) Guidelines.

2. Introduction for first reading an Interim Zoning Ordinance Amending Interim Zoning Regulations Established by Interim Zoning Ordinance Number 2754 (CCS) and Amended and Extended by Interim Zoning Ordinance Number 2761 (CCS) to Promote Economic Recovery by Increasing Flexibility in the City’s Downtown Area, Establishing a Pilot Program to Allow Exclusively Commercial Outdoor Uses in the Office Campus District, and Providing Other Minor and Clerical Amendments.

3. Introduction and Adoption of an Emergency Ordinance Amending Santa Monica Municipal Code Chapter 9.61: Signs to Increase Flexibility for Signage in the Bayside Conservation District and Third Street Promenade Area, and Make other Minor Changes to Promote Economic Recovery, Public Safety and Welfare.

Summary
On July 25, 2023, Council adopted Interim Zoning Ordinance (“IZO”) Number 2754 (CCS) establishing interim zoning regulations promoting economic recovery in the City’s Downtown, including the Third Street Promenade Area and Santa Monica Place, and 2 of 22
also included minor clerical amendments further supporting economic recovery. On September 26, 2023, the Council introduced for first reading Interim Zoning Ordinance Number 2761 (CCS), which was adopted on October 10, 2023, extending and amending the IZO that is effective through November 22, 2028.

The Interim Zoning Ordinance included zoning changes supporting a variety of potential commercial uses within the Downtown. These changes focused on enabling certain outdoor uses and providing a streamlined review for alcohol permits. In summary, the interim zoning changes focused on:
1) Allowing outdoor rooftop commercial uses on Public Parking Structures owned by the City;
2) Allowing greater flexibility for restaurants that provide entertainment within the Third Street Promenade Area and Santa Monica Place;
3) Expanding Alcohol Exemption (AE) permits to additional uses to further streamline the review of alcohol permits while also correcting and refining existing AE permit conditions; and
4) Allowing the Director of Planning to consider commercial uses that are not clearly in the Zoning Code; and
5) Allowing a longer term for Temporary Use Permits.

Consistent with the Council’s continued support of local businesses and to promote economic recovery efforts within the Downtown and Third Street Promenade Area, staff proposes this next phase of zoning changes that further simplify the review process for new businesses and relaxes sign code limitations to encourage the use of creative signs and to enhance overall business promotion on the Promenade. DTSM and the business community are in support of these amendments and believe these zoning changes are critical in providing greater certainty and predictability for property owners and their existing tenants, along with prospective businesses considering locations within the Promenade area.

Further, the program that has allowed outdoor commercial uses on private property has enabled many businesses to remain in operation and has supported the opening of new 3 of 22
businesses in the City. There have been 23 outdoor space permit applications (8 approved), and most are close to obtaining permits. In making this pandemic-era program permanent, Council gave additional direction to explore allowing exclusively outdoor uses on private property. The zoning ordinance requires that uses occur primarily indoors so allowing exclusively outdoor uses that are not associated with the primary business on a property would require further study due to the potential for impacts on adjacent sensitive uses. Since the Outdoor Space Program’s adoption, the City has not received any interest from businesses to operate exclusively outdoors until recently. This interim zoning ordinance brings forward a pilot program limited only to the Office Campus zoning district, that would allow exclusively outdoor uses such as open-air markets to locate on private property, subject to meeting certain conditions.

The proposed land use amendments in the Bayside Conservation District are based on recent inquiries from prospective businesses considering available tenant space within the Promenade and surrounding area. Staff has also received recent inquiries asking for guidance on whether larger signage proposals and on-premises digital signage would comply with the current Sign Code, which has historically been conservative by restricting signage size and prohibiting all animated signs. Based on feedback from the business community on further streamlining land use review while also providing additional flexibility in business sign allowances, the proposed zoning changes are consistent with Council’s priority of economic recovery in the Downtown and with tenanting vacant spaces on the Promenade. The proposed amendments to Interim Zoning Ordinance No. 2761 and Emergency Ordinance amending the Sign Code includes the following changes:
• Maximize Flexibility for Downtown Uses
o Relax limitations on permitted non-residential land uses within the Third Street Promenade Area, including
▪ Removing restrictions on game arcades; and
▪ Simplify review for larger sized restaurants in the Wilshire Transition and Lincoln Transition zone
▪ Allow large-scale commercial entertainment and recreation on Cityowned property 4 of 22
o Expand Alcohol Exemption to both sides of 2nd and 4th Streets • Authorize Special Exceptions to the Sign Code for establishments with frontage on the Third Street Promenade:
o Allow a substantial increase in permitted, non-animated signage; and o Allow for animated signage within a certain portion of the storefront facade, including:
▪ Digital display screens;
▪ 3D signs.
o Allow longer timeframes for temporary commercial signage • Exempt signs authorized through City-license agreements (i.e. on public property) and through Temporary Use Permits (for the duration of the temporary use)
• Evolution of the Outdoor Commercial Uses on Private Property Program to allow exclusively outdoor uses on private property in the Office Campus (OC) District, subject to specific standards and regulations.

Except for the proposed Sign Code amendments, the above amendments are proposed through an amendment to Interim Zoning Ordinance No. 2761. The amendment to the IZO will maintain the same expiration date of November 22, 2028, unless codified by the City Council. Because the Sign Code (Chapter 9.61) is not a part of the comprehensive Zoning Ordinance, the Sign Code amendments will be processed separately through an Emergency Ordinance, which will take effect immediately upon adoption.

Discussion
The subject Interim Zoning Ordinance and Emergency Ordinance reflects staff’s ongoing evaluation and simplification of zoning and sign requirements to provide greater flexibility and streamlined review for new potential businesses within the Downtown and specifically the Third Street Promenade Area. Below is a summary of the proposed 5 of 22
amendments. Zoning and Sign Ordinance text reflecting such amendments is provided in Attachment A in redline (strikeout/underline) form.

Eliminated Discretionary Process for Land Uses within the Bayside Conservation District
In order to provide more flexibility in re-tenanting vacant spaces in the Bayside Conservation (BC) District, staff reviewed the permit requirements for each listed land use. As a general approach, nearly all discretionary permits are being converted to permitted uses meaning that land uses will be permitted without any public hearing and without conditions within the BC District Third Street Promenade Area, defined as the area bounded by 2nd Street on both sides, Broadway to the south, 4th Street on both sides, and Wilshire Boulevard to the north.

Certain land uses are permitted and only require a discretionary approval based on size of tenant space. Staff targeted these land uses and removed any size limitation that result in a discretionary requirement. Discretionary requirements are maintained for certain uses that typically result in an impact to surrounding uses, such as bed and breakfasts, hotels and motels, parking lots, and animal care, sales, and services.

The following is a summary of key changes:
• Remove all discretionary actions for the Third Street Promenade Area; • Remove discretionary actions for alcohol related uses along 2nd and 4th Streets (e.g. bars/nightclubs/lounges and liquor stores).

Land Use Designation Previous Regulation Proposed Regulation Grooming and Pet Stores Linear Frontage and Size
Maximum Permitted, By-Right
New Automobile/Vehicle Sales and
Leasing
Linear Frontage and Size
Maximum Permitted, By-Right
Banks and Credit Unions Prohibited Permitted, By-Right
Cinemas and Theaters Conditional Use Permit Permitted, By-Right Convention and Conference
Centers Conditional Use Permit Permitted, By-Right
Large-Scale Commercial Facility Linear Frontage Permitted, By-Right 6 of 22
Land Use Designation Previous Regulation Proposed Regulation Maximum
Small-Scale Commercial Facility Linear Frontage and Size Maximum Permitted, By-Right
Bars/Nightclubs/Lounges Conditional Use Permit Permitted, By-Right Foodhall Conditional Use Permit Permitted, By-Right
Convenience Market Linear Frontage and Size
Maximum Permitted, By-Right
General Market Size Maximum Permitted, By-Right
Liquor Stores Conditional Use Permit Permitted, By-Right Instructional Services Linear Frontage and Size
Maximum Permitted, By-Right
Bed and Breakfast Conditional Use Permit Permitted, By-Right Hotels and Motels Conditional Use Permit Permitted, By-Right Nurseries and Gardens Linear Frontage and Size
Maximum Permitted, By-Right
Outdoor Newsstands Minor Use Permit Permitted, By-Right General Personal Services Linear Frontage and Size
Maximum Permitted, By-Right
Physical Training Linear Frontage and Size
Maximum Permitted, By-Right
Small-Scale Retail (Up to 25,000
SF)
Linear Frontage and Size
Maximum Permitted, By-Right
Medium-Scale Retail (25,000 –
80,000 SF) Conditional Use Permit Permitted, By-Right
Larger-Sized Restaurants Permitted By-Right in the Wilshire Transition (WT) and Lincoln Transition (LT) Zone
Currently, restaurants over 5,000 sf require a Conditional Use Permit in the Wilshire Transition and Lincoln Transition Zone. These zones represent the edges of the Downtown area and have adjacency to existing residential uses. Conditional Use Permits are intended to authorize permitted uses with conditions to mitigate potential impacts.
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Figure 1: Map of WT and LT zones
The existing conditions for parcels in the WT zone along Wilshire Boulevard are different from the LT zone along Lincoln Boulevard in that parcels along Wilshire tend to be on sites that are built out or have ground floor tenant spaces integrated into a new or existing building. In those instances, there is a natural buffer between the ground floor tenant space facing Wilshire and the residential uses to the north.

Parcels along Lincoln Boulevard generally contain standalone buildings with some surface parking and residential uses are across an alley. This increases the possibility of impacts on adjacent residential uses from restaurant back-of-house operations in addition to potential noise and traffic impacts from customers.

As a result, some loosening of the restrictions for larger restaurants in the WT zone and the west side of the LT zone is warranted as a CUP may not be appropriate when restaurants may already have a natural buffer of an existing building and in the case of 8 of 22
the west side of the LT zone, is along a busy corridor without immediate proximity to adjacent residential neighborhoods. The proposed changes to the WT Zone and the west side of the LT Zone are summarized as follows:
• WT Zone: Allow restaurants up to 7,500 sf to be a permitted use as long as the restaurant is located at least 75 feet from a residential use and district • LT Zone (West Side): Allow restaurants of any size to be permitted Restaurants over 5,000 sf on the East side of the LT Zone would continue to require a Conditional Use Permit.

Allow Game Arcades in Bayside Conservation (BC) District Staff has received recent interest for arcade bars which offer arcade games within a bar/pub atmosphere. Arcade bars are similar to traditional bars, however with a gaming arcade as the primary theme. Arcade bars would be allowed within the BC District and the proposed amendments include clarifications in removing limitations associated with traditional gaming arcades that are currently established in the Zoning Code to allow the use specifically within this area of the City. Arcade bars would be considered a bar use for the purposes of an Alcohol Exemption permit (administrative review), which is currently available for bar uses within the Third Street Promenade Area.

Expand Alcohol Exemptions to Include the Entire Bayside Conservation District As part of prior economic recovery efforts for the Third Street Promenade Area, an administrative process for alcohol service (Alcohol Exemption or “AE”) was authorized for a variety of land uses in the Third Street Promenade, Santa Monica Place, the east side of 2nd Street, and the west side of 4th Street. The expanded AE process allows a variety of businesses to be administratively approved for alcohol services. Land uses currently eligible for an alcohol exemption include the following:
• Restaurants of any size;
• Food halls;
• Bars/Nightclubs/Lounges;
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• Convenience Markets;
• Liquor Stores;
• Commercial Entertainment and Recreation;
• Retail Sales, small- and medium-scale (up to 25,000 SF).

The proposed changes will expand the AE process to the entire BC district to include both sides of 2nd and 4th Streets.

Sign Code Changes
Staff has received recent inquiries regarding allowing substantially more sign area on the Third Street Promenade and to also allow animated signage. Santa Monica’s Sign Code currently establishes strict limits on sign area and prohibits all animated signage.

Temporary signage is currently limited in area ranging from up to 16 square feet of area or 8 square feet above what would otherwise be allowed for freestanding signs and up to 100 square feet for temporary banners. Signage associated with a temporary use authorized through a Temporary Use Permit is limited to a maximum of 16 square feet.

The Sign Code includes some exceptions applicable only to the Third Street Promenade including allowing for portable signs and upper-level signs. Pursuant to SMMC Chapter 9.61:
• Upper-level Sign is defined as, “Any sign mounted on a building that is placed in whole or in part between thirty inches above the second-floor floor line and the top of a parapet or roof line, but does not include a high rise sign.” • Animated Sign is defined as, “Any sign that has any visible moving part, flashing or oscillating lights, visible mechanical movement of any description, or other apparent visible movement achieved by any means”.

The City’s sign ordinance primarily regulates commercial signage by exempting most types of noncommercial signs and prohibits off-premises signage. Regulations on commercial speech are permitted so long as (1) The speech concerns lawful activity and is not misleading; (2) the asserted government interest is substantial; and (3) the 10 of 22
regulation directly advances the governmental interest asserted in a way that is not more extensive than necessary to serve the interest. (Central Hudson Gas & Elec.

Corp. v. Public Service Commission (1980) 447 U.S. 557.) Following Reed v. Town of Gilbert, the City made updates to its sign code to address the ruling in that case that sign regulations may not discriminate based on the topic to be discussed or the idea or message expressed. (Reed v. Town of Gilbert (2015) 576 U.S. 155.) Since Reed, courts have held the distinction between on-premises and off-premises signage is not a content-based distinction, but rather a valid time, place, manner distinction, as it only requires the viewer to determine whether the subject matter is located on the same property as the sign. (City of Austin, Texas v. Reagan National Advertising of Austin, LLC (2022) 596 U.S. 61, 67.) The updates the City is proposing now to the onpremises/off-premises distinction does not change the prohibition on off-premises signage and closely tracks the language in San Francisco’s sign ordinance, which was upheld by the Ninth Circuit. (Contest Promotions, LLC v. City and County of San Francisco (9th Cir. 2017) 874 F.3d 597.)
Moreover, the City has a substantial interest in allowing increased signage types on the Promenade and surrounding area in the interest of economic recovery. The City also has a substantial interest in continuing to limit these sign types elsewhere in the City, as Courts have consistently upheld aesthetics, traffic and pedestrian safety are substantial interests advanced by such regulations. (Contest Promotions, 874 F.3d at 601.) The Third Street Promenade is unique in both its function and physical layout. As an important city, regional, and internation destination with a distinct pedestrian-only environment, consideration for additional signage on the Promenade is warranted. The building facades are generally co-planar, or along parallel building facades, making business visibility challenging to pedestrians. Animated on-premises sign faces that face only the interior of the Promenade reduce the risk of traffic distraction, and are consistent with the character of the district, while allowing animated signs elsewhere in the City would contribute to blight and visual clutter.

Temporary Signs
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There has been a prevalence of both temporary “pop-up” uses and activations and requests for temporary signage to be allowed for longer on the Third Street Promenade.

This has been driven as consumer preferences have focused on experiences and entertainment and as property owners find creative ways to lease vacant spaces. In order to support the business community’s effort to revitalize the Promenade, timeframes for temporary signs and temporary signs associated with temporary events are being updated.

The changes would allow temporary signs up to one year with the possibility of a 6- month extension for each one-year period. Although this would cover all temporary commercial signs, this would also support requests from the Promenade business community to consider allowing signage that would allow businesses to advertise their opening while going through the permitting and construction process. Similarly, these new allowances for temporary signs would also support recent trends in pop-up uses that would provide property owners the full range of flexibility to activate tenant spaces either as recurring or interim uses. The table below summarizes the proposed changes.

Table 1: Summary of Changes for Temporary Signs
What’s Allowed Now What the Changes Would Do
Temporary signs for temporary
businesses or future business
openings with size limitations (but not
exceeding 100 SF) for only 60 days.

Temporary signs allowed for up to 1 year
with one possible 6-month extension for
each 1-year period.

Permitted Non-Animated Signs
The Sign Code permits commercial signs but limits their size largely based on the length of the business frontage. Limiting overall sign area and letter height has presented barriers to creative sign proposals particularly if businesses want to open flagship locations on the Promenade.

The proposed Sign Code changes would not place any restriction on sign area for signs facing the Third Street Promenade. Signs covering windows that serve an occupied tenant space would be required to be 50% visually transparent. On October 10, 2024, 12 of 22
the proposed changes were presented to the DTSM Board who expressed support. A question was asked about whether the 50% visual transparency requirement would be applied to high-volume single-story tenant spaces. In response, there is a provision that signs on glazing (i.e. glass surfaces that are not windows serving an occupied tenant space) above 15 feet would not have to meet the 50% visually transparency requirement as the visual transparency at that height is not necessary for pedestrian orientation and would not impact any tenant spaces. Consistent with current provisions, signs would be allowed to project up to 42 inches from the building facade, which could project into the public right-of-way. Signs that face side streets (e.g. Broadway, Santa Monica Boulevard, Arizona, Wilshire) would still be required to comply with existing Sign Code limitations.

Table 2: Summary of Changes for Permitted Non-Animated Signs What’s Allowed Now What the Changes Would Do
Sign area limited in size to 1 square foot
of sign area for each foot of building
frontage
No limit to sign area for signs facing the
Promenade
Sign is not allowed to be placed on upper
levels with exception of banners of up to
10 square feet
No limit to sign placement for signs facing
the Promenade
Permitted Animated Signs
Animated signs have historically never been permitted on the Third Street Promenade.

However, in response to recent proposals and requests from property owners to consider allowing flexibility for more creative sign proposals, animated signs are being introduced as part of the proposed changes. Animated signs include digital signs and would only be for on-premises signage. Since digital signs would be a new permitted sign for the Promenade, staff reviewed illumination standards from other cities such as Los Angeles and Carson that allow similar signage to develop standards that would be applicable to the Promenade. Further, the basis of lighting standards is based on the California Energy Code for Lighting Zones 1-4. Lighting Zones (LZs) are defined by the CEC, with LZ1 applying to areas of low ambient lighting and LZ4 applying to areas of high ambient lighting. Within each Lighting Zone, there is a different limit on light 13 of 22
trespass. All urban areas are designated LZ3 as default under the California Energy Code. Based on the existing conditions in the Downtown (dense urban environment with nighttime retail and entertainment), the City has used the LZ3 standards as the basis for the lighting standards for the proposed Ordinance.

The proposed Sign Code changes would allow animated signs subject to the following:
• Must face the Third Street Promenade only,
• For 1-story buildings: Allowable sign area and placement would be the area above the storefront extending the width of the frontage and up to the roofline, • For buildings that have more than 1-story:
o Allowable sign area would be the area above the storefront extending the width of the frontage and up to the second floor window sill. o The animated sign could be located anywhere on the facade so long as the allowable sign area is not exceeded. This flexibility in placement would allow more creativity in designing signage so that it does not have to only be within a rectangular box.
• Signs would be allowed to project up to 42 inches from building facades and would be measured only by the sign area facing the Promenade to allow flexibility for three-dimensional signs,
• Compliance with illumination standards including the following (compliance would be demonstrated through a required lighting study and post-installation testing):
o Limitation of 0.3 foot candles above ambient lighting at the property line; o Maximum brightness levels of 300 candelas per square meter at nighttime (sunset to sunrise) and 5,000 candelas per square meter at daytime; o The minimum requirements in the California Energy Code for Lighting Zone LZ3;
o Ability to be dimmable; and
o Project sign luminance contrast shall be less than 30 to 1 contrast ratio.

Contrast exceeding 30 to 1 are usually deemed uncomfortable; 10 to 1 are clearly visible; and less than 3 to 1 appear to be equal. 14 of 22
Pilot Program for Exclusively Outdoor Uses in the Office Campus Zone On April 11, 2023, the Council adopted Ordinance Number 2741 (CCS), adding Section

9.31.199, Outdoor Commercial Uses on Private Property, to the Zoning Ordinance, which allowed eligible businesses to use available private property to expand the on-site use. During the COVID-19 pandemic, this was a program that complemented sidewalk dining and parklets and in some cases, became the only option for businesses to remain open. On March 14, 2023, when Council introduced the ordinance for first reading, Council directed staff to further explore the consideration of allowing other utilizations for underutilized privately owned lots that are not connected other brick and mortar businesses.

Consistent with that direction, and inquiries staff has received with respect to conducting open air market activities, the proposed pilot program would allow outdoor operators to conduct exclusively outdoor commercial uses on private property such including but not limited to open-air market events, such as antique markets and food markets, in the Office Campus (OC) district (see Figure 2). It should be noted that parcels that are governed by a Development Agreement within the OC district must still comply with the terms of the DA, which may restrict the ability to have outdoor uses pursuant to the proposed pilot program. To reduce the impact of these temporary events on residential districts, certain conditions are proposed that would limit their extent and location.

Proposed conditions include:
• Location: On a surface parking lot with the boundaries of the event no closer than 500’ to a residential district.
• Parking: No replacement parking is required during these temporary events, although a parking, loading, operations plan would be required to ensure the circulation is safe for attendees and surrounding areas. • Duration: Events are limited to four times per month for no more than 5 consecutive days with two days allowed for setup and cleanup before and after the event.
• Hours of Operation: 7:00AM to 11:00PM. Setup limited to no earlier than 5:00AM with all clean-up concluded by midnight. Hours can be modified through the 15 of 22
Zoning Conformance Review to ensure compatibility with surrounding neighborhoods.
• Music/Noise: No amplified music or public address system shall be audible beyond the boundaries of the parcel on which the Exclusively Outdoor Commercial Use is being conducted.
• Security: Private security shall be provided during all hours that the event is open to the public.
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Figure 2: Map of Office Campus Zone
Past Council Actions
Meeting Date Description
May 12, 2020 Council adopted two Emergency Interim Zoning Ordinances establishing interim zoning regulations to support the
economic recovery of local businesses impacted by the
COVID-19 pandemic.

November 10, 2020 Extended Emergency Interim Zoning Ordinances for both Citywide and Promenade, extended through December 31,
2022.

April 13, 2021 (“IZO
2667”), September 28,
2021 (“IZO 2682”), and
January 25, 2022 (“IZO
2690”)
Subsequent amendments to the “Promenade” IZO.
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October 11, 2022 and
October 25, 2022
Council adopted Ordinance 2726 (CCS) approving Zoning
Ordinance amendments for the Third Street Promenade
Area
January 24, 2023 Council held a discussion requesting that the City develop strategies to revitalize the Third Street Promenade.

July 25, 2023 Council adopted Promenade Interim Zoning Ordinance 2754 to Promote Economic Recovery in the City’s Downtown
area, including the Third Street Promenade Area and Santa Monica Place, and Provide Other Minor and Clerical
Amendments to the Zoning Ordinance Related to Economic
Recovery.

September 26, 2023 Council adopted Interim Zoning Ordinance 2761 extending Interim Zoning Ordinance 2754 promoting economic
recovery in the City’s Downtown area, including the Third Street Promenade Area and Santa Monica Place, and
providing other minor clerical amendments to the Zoning Ordinance related to economic recovery.

Environmental Analysis
The proposed amendments to Interim Zoning Ordinance Number 2761 (CCS) promoting economic recovery in the City’s Downtown and expanding the Outdoor Space Program on private property to allow exclusively outdoor uses in the Office Campus District are categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Sections 15301, 15303, and 15311 of the CEQA Guidelines.
• Section 15301 of CEQA Guidelines provides (Class 1 Existing Facilities) exemption for the operation, repair, maintenance, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. Projects that fall into this 18 of 22
class of exemption include alterations to existing streets, sidewalks, gutter, bicycle facilities, and other similar facilities and additions of safety or health protection during for use in conjunction with existing facilities. The proposed amendments would allow for flexibility in land uses for the Downtown and associated alterations to existing commercial buildings to accommodate the proposed changes in land uses in the Downtown. The proposed amendments would allow exclusively outdoor uses to locate in the Office Campus District on existing underutilized portions of private property, subject to certain standards, as a means to continue to support economic recovery in other areas of the city. The proposed amendments would also allow for the installation of new on-premise signs, including larger signs, animated signs, and a longer term for temporary signs on the facades of existing buildings. No expansion of the existing land uses is proposed. Therefore, the proposed amendments qualify under the Class 1 exemption.
• Section 15303 of CEQA Guidelines provides (Class 3 New Construction or Conversion) exemption for the conversion of existing small structures from one use to another where only prior modifications are made to the exterior. The amendments would provide for new minor construction to accommodate the proposed changes in land uses in the Downtown. The proposed amendments would allow exclusively outdoor uses to locate in the Office Campus District on existing underutilized portions of private property, subject to certain standards, as a means to continue to support economic recovery in other areas of the city.

New signage allowed pursuant to the ordinance would be accessory structures to the commercial uses on the Third Street Promenade and Santa Monica Place.

Therefore, the proposed amendments qualify under the Class 3 exemption. • Section 15311 of CEQA Guidelines provides (Class 3 Accessory Structures) exemptions for the construction or placement of minor structures accessory to (appurtenant to) existing commercial facilities, including but not limited to onpremise signs. The amendments would provide for new on-premise signs, including larger signs, animated signs, and a longer term for temporary signs, in 19 of 22
the area bound by 2nd Ct, 3rd Ct, Broadway, and Wilshire Blvd. Therefore, the proposed amendments qualify under the Class 11 exemption.

In addition, none of the exceptions specified in Section 15300.2 of CEQA Guidelines would apply that would preclude the use of these CEQA exemptions:
• The project site is not located in a sensitive environment – The project site is located in the urbanized Downtown district of Santa Monica. The project area is entire developed surrounded by commercial and residential buildings and does not contain any natural or sensitive habitats. The likelihood of the presence of any sensitive or special status species is extremely remote. No vegetation, including sensitive or riparian vegetation, would be affected by the proposed amendments.
• The project will not have a significant effect on the environment due to unusual circumstances – The proposed amendments would allow for the installation of new animated signage. Such signage is not unusual for shopping centers and commercial areas, and are common in high activity urban areas in the Los Angeles region, particularly within downtowns, shopping districts, and commercial corridors (i.e., Westfield Century City, Downtown Los Angeles, West Hollywood’s Sunset Boulevard). Under the ordinance, new animated signage must comply with the following:

1. Limitation of 0.2 foot candles above ambient lighting at the property line

2. Maximum brightness levels of 300 candelas per square meter at nighttime and 7,500 candelas per square meter at daytime.

3. The minimum requirements in the California Energy Code for Lighting Zones 1–4; Lighting Zones (LZs) are defined by the CEC, with LZ1 applying to areas of low ambient lighting and LZ4 applying to areas of high ambient lighting.

Within each Lighting Zone, there is a different limit on light trespass. All urban areas are designated LZ3 as default under the California Energy Code.

Based on the existing conditions in the Downtown (dense urban environment with nighttime retail and entertainment), the City has used the LZ3 standards as the basis for the lighting standards for the proposed Ordinance. 20 of 22

4. Ability to be dimmable.

5. Project sign luminance contrast shall be less than 30 to 1 contrast ratio.

Contrast exceeding 30 to 1 are usually deemed uncomfortable; 10 to 1 are clearly visible; and less than 3 to 1 appear to be equal.

The above standards would ensure that light pollution and glare impacts are minimized in an effort to maintain dark skies and to ensure that new digital signage reduce the amount of backlight, uplight, and glare that could adversely affect nearby residential use properties on or near the Promenade and Santa Monica Place. Therefore, lighting and glare impacts from the digital signs would not create a significant effect on the environment due to unusual circumstances.
• The project would not damage scenic resources - There are no scenic resources or scenic highways on the Third Street Promenade and within Santa Monica Place. Thus, the amendments would not have impacts on scenic resources. • The project is not located on a hazardous waste site - The following hazardous material databases were checked in October 2024 for known hazardous materials contamination at SMP pursuant to Government Code Section 65962.5:
o Department of Toxic Substances Control’s (“DTSC”) Envirostor database for hazardous waste and substances sites;1
o State Water Board’s Geotracker Database for cleanup program sites, land disposal sites, leaking underground storage tank sites, military sites, permitted UST sites, oil and gas monitoring sites, and National Pollutant Discharge Elimination System sites2
o State Water Board’s list of solid waste disposal sites with waste constituents above hazardous waste levels;3
1 Department of Toxic Substances Control, Envirostor Database. Website:
https://www.envirostor.dtsc.ca.gov/public/search?basic=True; accessed November 8, 2023. 2 State Water Board Geotracker Database. Website: http://www.geotracker.waterboards.ca.gov; accessed November 8, 2023. 3 State Water Board Sites Identified with Waste Constituents above Hazardous Waste Levels Outside the Waste Management Unit, online at https://calepa.ca.gov/wp-content/uploads/sites/6/2016/10/SiteCleanup-CorteseList-CurrentList.pdf; accessed November 8, 2023
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o California Environmental Protection Agency’s Lists of active Cease and Desist Orders (“CDO”), Cleanup and Abatement Orders (“CAO”), Contaminated Solid Waste Disposal Sites.4
o The Promenade and Santa Monica Place is not listed on any hazardous material sites lists compiled pursuant to Government Code Section 65962.5. Therefore, no impacts related to hazardous waste site listing pursuant to Government Code Section 65962.5 would occur. • The project would not cause a substantial adverse change in the significance of a historical resource – The Promenade and Santa Monica Place are not listed as a City’s designated Landmark. Therefore, the proposed amendments would not result in an adverse effect on a historic resource.

Based on the above analysis, the amendments are categorically exempt per Sections 15301, 15303, and 15311 of the CEQA Guidelines.

Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of recommended action. Staff will return to Council if specific budget actions are required in the future.

Prepared By: Steve Mizokami, Principal Planner
Approved Forwarded to Council
Attachments:

A. CDD-Ord- Promenade IZO Amendment + Outdoor Markets 10.22.24 4 CalEPA’s List of Active CDO and CAO sites, website: http://www.calepa.ca.gov/sitecleanup/corteselist/, accessed November 8, 2023.
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B. CDD-Ord_Sign Amendments (Promenade) 10.22.24
C. Written Comments
D. PowerPoint Presentation

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