Policy Questions
Citywide Expansion of Alcohol Exemptions Beyond the Downtown Staff is seeking feedback from the Commission on whether an AE permit would be acceptable for certain land uses proposed in areas outside of the Downtown area.
Similar to uses expanded in the Downtown, potential types of uses other than restaurants include bars, taprooms, cultural facilities, personal services, and retail sales. Staff recognizes that applicants are proposing hybrid businesses models compared to the traditional alcohol outlets that the citywide requirements are based on that potentially warrant a streamlined review process. The Commission may discuss whether this expansion would be appropriate in other commercial districts outside of the Downtown and provide direction on potential operational standards which could include alcohol service hours, considering such uses may be located in proximity to residential districts.
▪ Bar Establishments. As discussed earlier, staff proposes to allow bar establishments subject to a MUP instead of a CUP. An AE for a bar could have earlier closing hours consistent with restaurants, with the option for an operator to request later closing hours through a MUP. Although traditional bar establishments have become less frequent, there are newer business models that broadly fall under the bar category even though they are less likely to be associated with alcohol-related issues (see below). ▪ Taproom & Wine Bars. A new land use classification that could be introduced if the Commission believes that the traditional bar establishment still warrants some form of discretionary review. This taproom and wine bar concept seeks to recognize recent businesses models in the City, including non-traditional bar establishments such as wine bars and tasting rooms that currently require CUPs, even though their uses are normally not associated with alcohol-related issues.
Taprooms are traditionally establishments where breweries can serve its beer to customers. Taprooms may feature locally produced beverages and can include a retail component of such featured beverages for off-site consumption. Wine bars are establishments primarily serving wine by the bottle or glass, excluding wine shops with ancillary tasting.
Taprooms and wine bars would be similar to a bar establishment; however, could be considered less intensive by limiting the type of alcohol to beer, wine, and similar malt beverages only, with spirits strictly prohibited.
Taprooms and wine bars could be restricted to the same AE operating hours as a restaurant with alcohol service (12 AM closing). This new use classification could be an alternative to providing flexibility to those types of establishments that do not operate as the traditional bar establishment even though they are defined as such.
Recent examples of businesses that could fall into this new land use category include the following:
o Juneshine on Main Street, which provides patrons with a variety of beverages (primarily known for hard kombucha) and includes an ancillary retail component, was required to obtained an alcohol CUP because they do not have an onsite food component whereas an AE could be warranted given its operations and beverage service type. o Aja Vineyards on 2nd Street in the Downtown recently opened a wine tasting bar supportive of the retail of their locally produced wines with the assistance of an AE pursuant to the Downtown IZO which was critical for the business opening in Santa Monica.
▪ Cultural Facilities. Cultural facilities include performing art centers for theater and music, art galleries, and museums. Requests would include ancillary alcohol service to patrons during performances or events. These types of uses are normally not associated with alcohol-related issues and standardized operational standards could be achieved. The Broad Stage and the Crow comedy club are examples of establishments that have obtained alcohol permits through a CUP.
▪ Instructional Services: Uses in this classification include, but not limited to, specialized programs in personal growth and development, typically in a classroom setting. Typical uses include classes or instruction in music, health, athletics, art, or academics. While not typical for these uses to engage in providing ancillary alcohol service, a recent art instruction studio (Splatter Studios) located in the Downtown recently qualified for an exemption under this category under the Downtown IZO’s expanded uses. ▪ General Personal Services. Uses in this classification include, but are not limited to, barber shops, beauty salons, and day spas with massage. While not their primary, business such as these sometimes like to include alcoholic beverages to their clients while services are provided. ▪ Retail Sales: Small-Scale; Medium-Scale. This would apply to retail businesses such as a wine shop or general retailer with a smaller selection of beverages sold for off-site consumption with ancillary tasting, or a retailer that may offer wine to accompany customer visits or during promotional events. Divine Vintage on Montana Avenue is a recent example of a hybrid clothing retailer with a small retail selection of wines with ancillary tasting who changed their business model to include food so they could qualify for an AE. These businesses currently require a CUP, despite their primary function being for the retail sales of non-alcoholic products and are establishments not generally associated with alcohol-related issues. This category excludes liquor stores and convenience markets which typically still require CUP in most districts outside of the Downtown.
In all instances, the Planning Commission may add additional standard conditions of approval for each use, such as alcohol service hours, noise mitigating requirements, or specific areas to include or exclude. It should be noted that any conditions proposed would apply across the board for any business that falls within the use classification being regulated.
The proposed changes within both the Downtown and citywide districts intend to address restrictive land use limitations that have shown to impact the feasibility of new businesses from opening in Santa Monica. These changes seek to provide similar zoning flexibility currently provided for the Downtown that has been critical for new and existing businesses since the start of the pandemic.
Based on the information above, below is a summary of three policy questions staff have for the Commission related to alcohol use.
Policy Question #1 – Would expanding Alcohol Exemptions for bar establishments be appropriate outside of the Downtown?
What this means:
▪ This would expand the AE process for bar establishments to the commercial boulevards, employment districts (IC, OC, HMU), neighborhood commercial (Main, Montana, Pico, Ocean Park), and the Bergamot area. ▪ This option would require establishing operational standards for bars including, but not limited to, alcohol service hours. Currently, there are standards established for bar uses for the Downtown with service hours until 2 AM. The Commission should discuss appropriate service hours for these citywide uses. ▪ No Taproom and Wine Bar classification is necessary since such establishments would fall within bar classification.
Options:
1. YES, expand Alcohol Exemption permits for bars outside of the Downtown. If this option is selected, the Commission should provide direction for such operational standards as hours of service (potentially aligning with standards for restaurants)
2. NO, do NOT expand Alcohol Exemption permits for bars outside of the downtown
Policy Question #2 – Would establishing a new Taproom and Wine Bar land use classification warrant an Alcohol Exemption permit both within the Downtown and citywide?
What this means:
▪ This option requires the creation of a new land use classification and allows the exploration of a more restrictive bar use by-right, outside of the Downtown. ▪ This would expand the AE process for Taproom and Wine Bar establishments to the commercial boulevards, employment districts (IC, OC, HMU), neighborhood commercial (Main, Montana, Pico, Ocean Park), and the Bergamot area.
▪ While this new land use is not required if the Commission gives the policy direction to expand Alcohol Exemptions to bars, staff would still like to receive direction for City Council purposes.
Options:
1. YES, establish a new Taproom and Wine Bar land use classification and allow the applicable uses to be eligible for an Alcohol Exemption with similar standards that are applied to restaurants.
2. NO, do NOT create a new taproom and wine bar land use classification.
Policy Question #3 – Would expanding Alcohol Exemptions for cultural facilities, instructional services, personal services, and retail establishments be appropriate citywide outside the Downtown? What this means:
▪ This would expand the AE process for such establishments to the commercial boulevards, employment districts (IC, OC, HMU), neighborhood commercial (Main, Montana, Pico, Ocean Park), and the Bergamot area. ▪ This option would require establishing operational standards for each use. including but not limited to, alcohol service hours. Currently, there are standards established for each of these uses for the Downtown with service hours until 2 AM.
Options:
1. YES, expand Alcohol Exemption permits for cultural facilities, instructional services, general personal services, and retail establishments outside of the Downtown. If this option is selected, the Commission should provide direction for such operation standards as hours of service (potentially aligning with standards for restaurants)
2. NO, do NOT expand Alcohol Exemption permits for cultural facilities, instructional services, general personal services, and retail establishments outside of the downtown