1 City Council Meeting: July 28, 2026 Santa Monica, California ORDINANCE NUMBER _________ (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING THE TEXT OF THE ZONING ORDINANCE TO
EFFECTUATE THE GOALS OF THE REALIGNMENT PLAN, INCLUDING, BUT NOT
LIMITED TO, AMENDMENTS TO MAXIMIZE THE POTENTIAL OF CITY-OWNED
SITES IN THE DOWNTOWN
WHEREAS, Downtown Santa Monica (“Downtown”) is one of Los Angeles County’s most recognizable city centers; and
WHEREAS, framed by the Santa Monica Bay and mountains, the Downtown is located centrally at the western edge of the city, providing convenient retail, entertainment, and employee destinations for all the City’s neighborhoods; and WHEREAS, with its unique location, the Downtown serves as the heart of the local community, making it a destination not only for locals and Angelenos who see a vibrant, exciting, and urban-scale ambiance, but also for world travelers who come here to enjoy easy access to beaches, hotel accommodations, culture, shopping, and the larger region; and
WHEREAS, on July 25, 2017, the City Council of the City of Santa Monica (“City Council”) adopted the Downtown Community Plan (“DCP”) which sets forth the City’s vision of Downtown as a high quality, mixed-use district offering opportunities as a major public space framed by a mix of retail, restaurants, services, and housing that form unique experiences enjoyable to both residents and visitors; and 2 WHEREAS, the Zoning Ordinance includes land use regulations governing the Downtown Plan area, that respond to the DCP’s vision and principals, and that direct future development within the Downtown Plan area; and
WHEREAS, the DCP identifies the area adjacent to the 1-10 freeway as a “Gateway” possessing conditions that necessitate special considerations regarding development standards and regulations; and
WHEREAS, the DCP identifies a future effort, the Gateway Master Plan, which would identify critical improvements, provide a framework for orderly development of currently vacant or underutilized areas, and explore various funding models for implementation, which would potentially include participation by properties within the Gateway Master Plan area; and
WHEREAS, the Gateway Master Plan area is generally bound by 5th Street, Colorado Avenue, and the I-10 Freeway; and
WHEREAS, the Gateway Master Plan planning process was initially scheduled to be completed in 2021, but was delayed due to the novel coronavirus (“COVID-19”) and other City emergencies and priorities; and
WHEREAS, with the City Council’s adoption of the Fiscal Year 2025-2027 Operating Biennial Budget in June 2025, the City Council affirmed its commitment to various Strategic Priorities, including, but not limited to promoting economic opportunity and growth; endorsing affordable, livable, and secure housing for all; using the City’s real estate strategically; developing distinct business attraction and retention strategies; and activating our public spaces with signature events; and 3 WHEREAS, in line with these goals, City Council adopted its Realignment Plan on October 28, 2025, which prioritizes: (1) developing affordable, livable, and secure housing by, among other things: (a) focusing housing development in the Downtown; and (b) incentivizing future development along the Boulevards that remains compatible with existing neighborhoods through local incentives and without jeopardizing Housing Element compliance; and (2) strategic use of City’s land assets and removing artificial land value constraints, which includes, but is not limited to: (a) reassessing development standards, land uses and processes for City-owned parcels in the Downtown and Gateway Master Plan sites; (b) regulatory adjustments for City-owned parcels and for Gateway Master Plan sites; and (c) providing more flexibility to maximize community benefit from City-owned sites and support economic opportunity and growth and developing housing opportunities; and
WHEREAS, as the commercial and economic landscape evolves, Downtown’s economic recovery and competitive advantage will depend on its ability to deliver on a diverse range of uses and access to a broad range of housing options; and WHEREAS, the City’s Strategic Priority regarding developing affordable, livable, and secure housing for all includes expanding affordable housing options, stabilizing the Housing Trust Fund, and pursuing equity-based housing initiatives; and WHEREAS, consistent with these Strategic Priorities, the Realignment Plan, and important government interests, the City seeks to revive the “Gateway” concepts in the DCP while also allowing the City to be more strategic regarding the use of City-owned parcels that meet the goals for housing production and also provides flexibility for other uses; and
4 WHEREAS, amendments to the Zoning Ordinance include, but are not limited to, providing flexibility in development standards, land uses, and processes for the City to manage its real estate assets in the Downtown area in alignment with the strategic objective of economic opportunity and growth; and
WHEREAS, the amendments will allow the City to maximize land residual revenues through redevelopment or joint-venture opportunities at all City-owned parcels; and
WHEREAS, in line with the goals for maximizing economic potential of City-owned Downtown sites; amendments include exempting City-owned Downtown sites from the Zoning Ordinance and providing added flexibility to maximize community benefits of these valued sites; and
WHEREAS, the amendments also include other minor changes, corrections, and clarifications as necessary; and
WHEREAS, on May 6, 2026, in accordance with Santa Monica Municipal Code Section 9.46.030(B), the Planning Commission adopted a Resolution of Intention, Resolution Number 26-006 (PCS), declaring its intention to consider recommending to the City Council that the City Council amend the text of the Zoning Ordinance consistent with the City’s Realignment Plan including, but, not limited to, amendments necessary to provide for (1) focusing housing development in the downtown; and (2) maximizing the potential of city-owned sites in the Downtown and Gateway Master Plan sites; and WHEREAS, on June 17, 2026, the Planning Commission conducted a duly noticed public hearing to consider recommending to the City Council that the City Council amend the text of the Zoning Ordinance; and
5 WHEREAS, at the June 17, 2026, hearing, after considering all oral and written testimony, the Planning Commission adopted Resolution Number 26-010, recommending to the City Council that the Council amend the text of the Zoning Ordinance to maximize the potential of city-owned sites in the Downtown as noted herein, and the Planning Commission continued discussion for additional amendments regarding Downtown housing developments to allow for additional discussion; and WHEREAS, the City Council now desires to amend the text of the Zoning Ordinance to maximize the potential of city-owned sites in the Downtown and to require certain community benefits for the Gateway Master Plan sites.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. City Council hereby amends the text of the Zoning Ordinance to maximize the potential of city-owned sites in the Downtown and require certain community benefits for the Gateway Master Plan sites. In amending the text of the Zoning Ordinance, the City Council hereby finds and declares that, for the reasons articulated above, and in the staff report dated July 14, 2026:
1. The amendments to the text of the Zoning Ordinance are consistent with the General Plan and any applicable specific plan in that the downtown is the economic center for the City and is envisioned by the Downtown Community Plan as a high quality, mixed-use district offering opportunities for housing, jobs, arts and culture, local-serving retail, innovative businesses, and gathering spaces. As City-owned land represents significant public assets and place making opportunities, the amendments 6 to remove constraints on these sites will allow for the greatest level of flexibility to ensure that public land can be strategically maximized for creative proposals, reinvestment, and community benefit within the downtown. Therefore, the proposed amendments are consistent with the goals and policies of the General Plan.
2. The amendments are consistent with the purpose of the Zoning Ordinance to promote and protect the public health, safety, and welfare in that the amendments allow for the greatest level of flexibility in how best to utilize City-owned sites in the Downtown in order to generate public benefits, increase economic opportunities, and create transformative place making redevelopment projects. Therefore, the proposed amendments maintain and facilitate the existing polices, standards, and regulations of the Zoning Ordinance that promote public health, safety, and welfare.
SECTION 2. Santa Monica Municipal Code Section 9.01.040 is hereby amended to read as follows:
Section 9.01.040 Applicability.
A. General Rules for Applicability of Zoning Regulations.
1. Applicability.
a. This Zoning Ordinance shall apply, to the extent permitted by law, to all property within the corporate limits of the City and to property for which applications for annexation and/or subdivisions are submitted to the City, including all uses, structures and land owned by any private person, firm, corporation or 7 organization, or the City or other local, State, or Federal agencies, except as provided below.
b. Governmental Agencies. Any governmental agency shall be exempt from the provisions of this Zoning Ordinance only to the extent that such property may not be lawfully regulated by the City.
c. City Government Uses. City government uses, including, without limitation, fire stations, police stations, and public safety facilities, may be permitted in any district subject to the approval of a conditional use permit. d. Projects that Include Affordable Housing on City-Owned Property. In accordance with Program 2.E of the 6th Cycle 2021-2029 Housing Element, this Zoning Ordinance shall not apply to property owned by the City when used for projects that include housing affordable to 80% area median income (AMI) households, subject to a public process to be determined by the City Council, and upon a determination that the project is consistent with the General Plan. Any such exemption shall apply only for the life of the project approved in accordance with this paragraph.
e. Projects on City-Owned Property in the Downtown. Notwithstanding the provisions in subdivision (a) above, projects on City-owned property within the Downtown Community Plan Area shall be exempt from the provisions of this Zoning Ordinance, subject to a public process to be determined by the City Council. Any such exemption shall apply only for the life of the project approved in accordance with this paragraph.
8 f. Relocation of School and Child Care and Early Education Facilities Impacted by the 2025 Pacific Palisades Fire ("Palisades Fire"). Notwithstanding the land use regulations of Division 2, Base and Overlay Districts, of Article 9 of the Zoning Ordinance, schools, as that term is defined by Santa Monica Municipal Code Section 9.51.030.A.11, and child care and early education facilities, as that term is defined by Santa Monica Municipal Code Section 9.51.030.A.3 that were displaced by the Palisades Fire or expansions to existing schools to accommodate students displaced by the Palisades Fire may operate within the City's nonresidential zones without obtaining a Conditional Use Permit. Schools with existing Conditional Use Permits in residential zones that are subject to occupancy limitations may expand to accommodate students from other campuses operated by the existing school displaced by the Palisades Fire. Prior to occupancy and upon request by the City, schools or child care and early education facilities operating or expanding under this Section shall submit a Parking and Loading Operations Plan to the Director of the Community Development Department, or designee, for review and approval, which may be amended from time to time.
2. Compliance with Regulations. Except as provided in this Zoning Ordinance, land or buildings may be used and structures may be erected or altered only in accordance with the following provisions:
a. No new building shall be erected and no existing building shall be moved, altered, or enlarged, nor shall any land, building or premises be used, designed, or attempted to be used or designed for any purpose or in any manner other than a use listed in this Chapter, as permitted in the district in which the land, 9 building, or premises is located. The lawful use or uses of all buildings, improvements, and premises existing in any district at the time of the adoption of the ordinance codified in this Chapter may be continued except as provided by this Chapter.
b. No building shall be erected nor shall any existing building be moved, reconstructed, or structurally altered to exceed in height or floor area the limit established by this Chapter for the district in which such building is located. c. No building shall be erected nor shall any existing building be moved, altered, enlarged, or rebuilt, nor shall any open spaces surrounding any buildings be encroached upon or reduced in any manner except in conformity with the property development standards for each district in which such building is located. d. No yard or open space provided adjacent to any building for the purpose of complying with the regulations of this Chapter shall be considered as providing a yard or open space for any other building or structure. e. No parcel or building shall be separated in ownership, or reduced in size in any manner, so that:
i. Any separate portion shall contain a parcel area or parcel dimension less than the minimum required for the district in which the property is located;
ii. Any yard area is reduced below the minimum required for the district in which the project is located;
iii. The parcel fails to comply with any other requirement of this Chapter;
10 iv. Any portion of a parcel that is necessary to provide the required area per dwelling unit is separated from the portion of the parcel on which the building is located.
f. No lot or parcel of land held under common ownership which does not meet the requirements of the district in which it is located shall be separated in ownership or further reduced in size in any manner.
g. A building or use may cross property lines only if:
i. The building site shall be subject to all requirements of this Chapter as though the total area comprised in the site were a single parcel; ii. A covenant by the owner(s) of the parcels shall be filed with the Zoning Administrator and recorded with the County Recorder's office before any use or combination of parcels occurs. The covenant shall state the intention of the owner(s) to develop the parcels as a single building site and shall be in the form required by the Zoning Administrator. h. A legally-created parcel of land existing prior to the effective date of this Zoning Ordinance having less area, frontage, or dimensions than required by this Zoning Ordinance in the zoning district in which the parcel is located, shall be considered a legal conforming parcel.
B. Relation to Other Regulations.
1. General. Where conflict occurs between the provisions of this Zoning Ordinance and any other regulations, City ordinance, chapter, resolution, guideline, or regulation, the more restrictive provisions shall control, unless otherwise specified. See, 11 e.g., Section 9.56.270.F (the State Historic Building Code applies to alterations to historic resources and properties on the Historic Resources Inventory).
2. Permit Streamlining Act. All actions taken by the decision-making body pursuant to this Zoning Ordinance shall be consistent with the provisions of Government Code Section65920 et seq. (the Permit Streamlining Act), to the extent applicable.
3. Relation to Private Agreements. Where this Zoning Ordinance imposes greater restriction than imposed by an easement, covenant, or agreement, this Zoning Ordinance shall control.
4. Relation to Prior Ordinance. The provisions of this Zoning Ordinance supersede all prior Zoning Ordinances codified in Article 9 of the Santa Monica Municipal Code and all prior amendments. No provision of this Zoning Ordinance shall validate any land use or structure established, constructed, or maintained in violation of the prior Zoning Ordinance, unless such validation is specifically authorized by this Zoning Ordinance.
5. Application During Local Emergency. The City Council may authorize a deviation from a provision of this Zoning Ordinance during a local emergency declared and ratified under the Santa Monica Municipal Code.
C. Consistency with the General Plan. The Zoning Ordinance and any amendment thereto shall be consistent in principle with the goals, objectives, policies, land uses, and programs specified in the adopted General Plan.
D. Effect on Previously Approved Projects and Projects in Progress. The following projects shall have a vested right to proceed without complying with this Zoning Ordinance:
12 1. Previously Approved Development. The erection, construction, enlargement, demolition, moving, conversion of, and excavation and grading for any building or structure for which a valid permit or building permit was issued prior to the effective date of this Zoning Ordinance and which does not subsequently expire. A permit that does not contain an express limit on the time for exercising the permit shall be deemed valid only if a building permit is obtained within one year of the effective date of this Zoning Ordinance;
2. Development Agreement. Development in accordance with the terms and conditions of a development agreement approved by the City Council pursuant to Chapter
9.60 of the Municipal Code prior to the effective date of this Zoning Ordinance;
3. Vesting Tentative Maps. Any residential project for which a vesting tentative map application was determined complete prior to the effective date of this Zoning Ordinance; and
4. Applications for Projects in Progress. Any application fora Planning entitlement, except a Development Agreement application, determined complete on or before April 15, 2015.
SECTION 3. Santa Monica Municipal Code Section 9.10.070 is hereby amended to read as follows:
9.10.070 Project Requirements for Tier 2 and Tier 3 Projects and Projects Located on Gateway Sites
A. Purpose. The purpose of this Section is to implement LUCE policies which require that as development is approved above the base FAR and height, it must be accompanied by a range of community benefits from 4 priority categories: Affordable Housing, Trip 13 Reduction and Traffic Management, Community Physical Improvements, and Social and Cultural Facilities. In addition to promoting the development of additional affordable housing and to maintaining existing City programs that provide incentives for the production of affordable housing, these requirements are intended to reduce the additional burdens more intense development allowed by the General Plan will impose on the City by requiring applicants to pay additional fees to mitigate project impacts or, in specific instances, allowing applicants to incorporate features into their projects.
B. Applicability.
1. The requirements of this Chapter apply to all projects involving new development and additions that are not housing projects, as defined by Section
9.52.020.1125, and for which applicants propose to exceed the Tier 1 maximum allowable base floor area or height or a project on a Gateway Site, as identified in the Downtown Community Plan, with an FAR above 1.75 and up to 3.0.
2. Pursuant to Section 9.10.030(D), Development Agreements and Planning Applications submitted on or before November 11, 2016, shall have a vested right to proceed without complying with the Downtown Community Plan except that they shall be subject to the following affordable requirements:
a. 20% on-site affordable housing; or
b. 25% off-site affordable housing.
C. Qualifying Benefits for Tier 2 and Tier 3 Projects with Residential Uses. An applicant seeking approval for a project that is not a housing project, as defined by Section
9.52.020.1125, but proposes residential uses shall comply with the following requirements.
14 1. Housing. All Tier 2 and Tier 3 projects that propose to include dwelling units must meet the following requirements:
a. Affordable Housing. Subject to the modifications contained in this Section 9.10.070, all of the affordable units shall comply with the provisions of Chapter 9.64, Affordable Housing Production Program. Applicants proposing residential and mixed-use residential projects shall incorporate on-site or off-site affordable housing units as set forth in Table 9.10.070.A.
TABLE 9.10.070.A: ON-SITE AND OFF-SITE AFFORDABLE
HOUSING REQUIREMENTS
Tier
On-Site Affordable
Housing %
Off-Site Affordable
Housing %
Tier 2 20% 25%
Tier 3 25% 30%
i. Affordable housing units may be provided off site pursuant to Section 9.64.060, except that the total number of affordable housing units shall be increased to the percentage of the total number of units in the project as set forth in Table 9.10.070.A. The off-site affordable housing units shall meet the following conditions:
(1) The affordable housing units are owned in whole or
part and operated by a nonprofit housing provider for the life of the project;
(2) The Final Construction Permit Sign Off or Certificate of Occupancy for the affordable units is issued prior to or concurrently with the project containing the market-rate units; and
15 (3) The off-site units may be located anywhere in the City except for within the area defined in Figure 9.64.060.A, Off-Site Affordable Housing Prohibition Area, in Section 9.64.060, Off-Site Option.
ii. The total number of affordable housing units shall incorporate the affordability mix specified in Table 9.10.070.B. Any fractional affordable housing units that result from the percentage mix of total affordable housing units shall be aggregated into whole affordable housing units (i.e., any resulting fraction shall be added to other resulting fractions). The resulting whole units may be provided at 50%, 80%, or moderate-income household affordability levels.
TABLE 9.10.070.B AFFORDABILITY
Affordability Level
Affordability Mix for
Affordable Housing
Units in Tier 2
Projects
Affordability Mix for
Affordable Housing
Units in Tier 3
Projects
50% Income
Household
10% 10%
80% Income
Household
5% 10%
Moderate Income 5% 5%
iii. An affordable housing unit shall have a minimum total floor area of no less than the average floor area of comparable market rate units in the project.
b. Unit Mix. Applicants proposing Tier 2 and Tier 3 projects with dwelling units shall incorporate the following:
16 i. For market rate units:
(1) At least 10% of the units shall be three-bedroom units; (2) At least 15% of the units shall be two-bedroom units; and
(3) No more than 15% of the units shall be studio units. ii. For affordable housing units:
(1) The unit mix percentage for affordable two- and threebedroom housing units shall be equal to or greater than the unit mix percentage required for the corresponding market rate units pursuant to subsection (C)(1)(b)(i) of this Section;
(2) The unit mix percentage for studio affordable housing units shall not exceed 15% of the total number of affordable units; and
(3) Affordable housing units shall be no smaller than the average size of comparable market rate units in the project. iii. The Director may grant a waiver from this unit mix requirement pursuant to the requirements and procedures for Waivers in SMMC Chapter 9.43.
2. Transportation Impact Fee. All Tier 2 and Tier 3 projects shall pay an additional transportation impact fee (TIF) of 90% of the maximum allowable fee established in the Transportation Impact Fee nexus study, for that portion of the floor area above the maximum Tier 1 floor area allowed by the Downtown Community Plan. 17 3. Open Space. All Tier 2 and Tier 3 projects shall pay an additional parks and recreation development impact fee of 90% of the maximum allowable fee established in the Parks and Recreation Fee nexus study for that portion of the floor area above the maximum Tier 1 floor area allowed by the Downtown Community Plan.
4. Affordable Housing Commercial Linkage Fee. All Tier 2 and Tier 3 commercial portions of mixed-use projects shall pay a housing mitigation fee 23% above the base fee as required by Chapter 9.68, Affordable Housing Commercial Linkage Fee Program, for that portion of the floor area above the maximum Tier 1 floor area allowed by the Downtown Community Plan.
5. Transportation Demand Management. All Tier 2 and Tier 3 projects shall include the following Transportation Demand Management measures in addition to those required by Chapter 9.53, Transportation Demand Management:
a. For nonresidential components of projects, provide the following:
i. Bike valet, free of charge, during all automobile valet operating hours.
b. For residential components of projects, provide the following:
i. Free on-site shared bicycles intended for resident and guest use. This shall be optional if Citywide bikeshare is available within a 2-block radius of the project site.
D. All Other Tier 2 and Tier 3 Projects Qualifying Benefits. An applicant seeking approval for Tier 2 and Tier 3 projects up to 30,000 square feet that are not housing projects, as defined by Section 9.52.020.1125, and do not propose any residential uses, 18 that exceed the base floor area or height allowed in the district where the project is located shall provide community benefits in each of the following categories.
1. Impact Fees.
a. Affordable Housing Commercial Linkage Fee. Tier 2 and Tier 3 up to 30,000 square feet – Projects shall pay a housing mitigation fee 23% above the base fee as required by Chapter 9.68, Affordable Housing Commercial Linkage Fee Program, for that portion of the floor area above the maximum Tier 1 floor area allowed by the Downtown Community Plan.
b. Transportation Impact Fee. Tier 2 and Tier 3 up to 30,000 square feet – Projects shall pay an additional transportation impact fee (TIF) 23% above the base fee required by Chapter 9.66, Transportation Impact Fee Program, for that portion of the floor area above the maximum Tier 1 floor area allowed by the Downtown Community Plan.
c. Open Space. Tier 2 and Tier 3 up to 30,000 square feet. Projects shall pay an additional parks and recreation development impact fee 23% above the base fee required by Chapter 9.67, Parks and Recreation Fee Program, for that portion of the floor area above the maximum Tier 1 floor area allowed by the Downtown Community Plan.
2. Transportation Demand Management. All Tier 2 and Tier 3 projects shall include the following Transportation Demand Management measures in addition to those required by Chapter 9.53, Transportation Demand Management: bike valet, free of charge, during all automobile valet operating hours.
19 E. Non-Housing Projects on Gateway Sites. An applicant seeking approval for a non-housing project on a Gateway site greater than 1.75 FAR and up to 3.0 FAR shall provide community benefits in each of the following categories.
1. Impact Fees.
a. Affordable Housing Commercial Linkage Fee. Projects shall pay a housing mitigation fee 23% above the base fee as required by Chapter 9.68, Affordable Housing Commercial Linkage Fee Program, for that portion of the floor area above 1.75 FAR and up to 3.0 FAR.
b. Transportation Impact Fee. Projects shall pay an additional transportation impact fee (TIF) 23% above the base fee required by Chapter 9.66, Transportation Impact Fee Program, for that portion of the floor area above 1.75 FAR and up to 3.0 FAR.
c. Open Space. Projects shall pay an additional parks and recreation development impact fee 23% above the base fee required by Chapter 9.67, Parks and Recreation Fee Program, for that portion of the floor area above 1.75 FAR and up to 3.0 FAR.
2. Transportation Demand Management. Projects with a floor area above
1.75 FAR and up to 3.0 FAR shall include the following Transportation Demand Management measure in addition to those required by Chapter 9.53, Transportation Demand Management: bike valet, free of charge, during all automobile valet operating hours.
SECTION 4. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such 20 inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance.
SECTION 5. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.
SECTION 6. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption.
APPROVED AS TO FORM:
_________________________
HEIDI VON TONGELN
City Attorney