Economic Recovery Ordinances
City Council
October 22, 2024
Background & Purpose
• Background
• Two rounds of zoning changes to support economic recovery in the Promenade area
• Flexibility in land uses
• Substantially expand alcohol service to variety of land uses without public hearing
• Allow longer-term for temporary uses
• Why Now?
• Respond to recent proposals (e.g. signage, restaurants) • Focus of changes
• Support experiences and entertainment
• Support trend for “pop-up” uses
• Flexibility for creative signs
Downtown Business Activity in 2024
22 New
Businesses
Have
Opened
26 Businesses
Coming
Soon
13 Businesses
Have
Closed
6 of the (13)
have been
re-leased
3 Businesses
have
relocated
within
DTSM
1 Existing
Business
has
opened a
new
location in
DTSM
22 New Businesses Have Opened
26 Businesses Coming Soon
Third Street Promenade Ground Level Occupancy
Occupied Vacant Total Occupancy
Rate
Vacancy
Rate
1200 Block 20 6 26 76.9% 23.1%
1300 Block 32 3 35 91.4% 8.6%
1400 Block 29 7 36 80.6% 19.4%
Entire
Third Street
Promenade
81 16 97 83.5% 16.5%
DTSM 453 110 563 80.5% 19.5%
Downtown Development Snapshot
• Hospitality
• New Investment & Economic Recovery
Underway
• Over $1 Billion Investment by Current
Operators
• Georgian Hotel
• Sonder The Beacon (former Shangri-La)
• The Pierside (former Wyndham Hotel)
• Sandbourne (former Le Merigot)
• Regent Santa Monica Beach (former Loews
Hotel)
• Miramar Hotel
• Ocean Avenue Hotel
• Housing
• Under Construction: 491 units
• Approved: 1,222 units
• Pending: 913 units
What’s New?
• Zoning Changes
• Flexibility for land uses
• Expand Alcohol Exemption allowances to cover both sides of 2nd & 4th Streets
• Update Sign Code
• For signs facing the Promenade
• No limits to permitted static signs
• Animated signs
• Extended timeframes for temporary signs
Flexibility in Land Uses
• Generally remove public hearing requirement
from land uses in Bayside Conservation District
• Prohibited uses proposed to stay the same
• Highlights
• Simplify review for commercial entertainment and
recreation
• Allow larger restaurants up to 7,500 sf without public hearing provided they meet certain conditions
• Allow game arcades without meeting onerous
requirements in zoning ordinance
• Note that “barcades” would currently fall under
classifications like Commercial Entertainment &
Recreation or Bars
What is the Bayside
Conservation District?
2nd Street (both sides),
4th Street (both sides),
Wilshire Boulevard,
Broadway
Alcohol Exemption ("AE")
• Alcohol Service allowed through
AE process in entire BC Zone
• Restaurants and Food Halls
• Bars/Nightclubs/Lounges
• Convenience Markets and Liquor
Stores
• Cultural Facilities and Instructional
Services
• Outdoor Rooftop Commercial Uses
• Commercial Entertainment &
Recreation
• Retail Sales
Sign Code Changes: Promenade - Facing Signs
• Promenade Facing
• Would allow permitted signs
that are non-animated to be
of any size (i.e. no size
restrictions)
• Non-Promenade Facing
• Subject to regular Sign Code
• Prohibited Signs Remain
• Off-Premise Signs
• Roof Signs
• Pole Signs
• Plastic Streamers & Posters
• Vehicle Signs
Promenade - Facing Sign Changes
Tenant Space Window Signage
• 50% Transparency
• Coverage or visually transparent
High-Volume Single-Story Storefronts
• 50% transparency not applicable for
glazing surfaces above 15’ height
Supergraphic Signs
• Vinyl wraps on building facades
that enhance business visibility
and visual interest/design
Promenade - Facing Sign Changes
Projecting Signs
Greater Allowance of Projecting Signs,
Including 3-D Projecting Signs
Adds visual depth, creativity to building
facades and could enhance design of
tenant spaces for businesses.
Temporary Signs
• Allow temporary signs for 1 year
• Possibility of 6-month extension
• Temporary signs exempt from Sign
Code
• Authorized by City lease
• Authorized by Temporary Use Permit
• Would allow animated signs
subject to certain illumination
standards
• Where would it be allowed?
• Must face Promenade only
• Allowed above storefront and
up to roof line if there is only 1
story
• Cannot cover any windows
• Administrative Regulations
• Establish sign illumination
testing protocols.
Animated / Digital Display Signs
On-Premise Signs: Tenant/Business Space Related
** Not for Off-Site Advertisement
• Would allow animated signs
subject to certain illumination
standards
• Where would it be allowed?
• Must face Promenade only
• Allowed above storefront and
up to roof line if there is only 1
story
• Cannot cover any windows
• Administrative Regulations
• Establish sign illumination
testing protocols.
Animated / Digital Display Signs – 1-Story Bldgs
On-Premise Signs: Tenant/Business Space Related
** Not for Off-Site Advertisement
Animated / Digital Display Signs – 1-story Bldgs
• Would allow animated signs
subject to certain illumination
standards
• Where would it be allowed?
• Must face Promenade only
• Allowed above storefront and
up to roof line if there is only 1
story
• Cannot cover any windows
• Administrative Regulations
• Establish sign illumination
testing protocols.
Allowable Size/Sign Area
• Determined by façade
area above storefront and
2nd floor window sill
Placement
• Sign could be placed
anywhere on the façade so
long as area isn’t exceeded
• Cannot cover any windows
Animated / Digital Display Signs – Over 1-story
Allowable Size/Sign Area
• Determined by façade
area above storefront and
2nd floor window sill
Placement
• Sign could be placed
anywhere on the façade so
long as area isn’t exceeded
• Cannot cover any windows
Animated / Digital Display Signs
Pilot Program for Exclusively Outdoor Uses
• Evolution of Outdoor Commercial
Uses on Private Property Program
• Pilot Program in the Office Campus
(OC) District: Temporary Events
• Development Agreements would still
govern if applicable
• Open-Air Market Activities
• Antique Markets
• Food Markets
• Surface Parking Lots
• Min. 500 feet from Residential Uses
• Parking/Loading Plans Required
• Max. 4x /month, 5 consecutive days
• 7am-11pm
Office Campus (OC)
Districts
1. Ocean Park Blvd
(SM Airport)
2. Colorado Ave
(Water Garden Area)
Recommendation
Recommendation to adopt the proposed Ordinances:
1. Amend IZO 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, other Minor and Clerical Amendments.
2. Adopt Emergency Ordinance Amending SMMC 9.61: Signs to Increase Flexibility for Signage in the Bayside Conservation District & Third Street Promenade Area, other Minor Changes to Promote Economic Recovery