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SR-8-B (62) LUTM:PPD:SF:AS w/ppd.word/work/alt5 COUNCIL MEETING: June 9, 1992 7-B JUN ;j ;992 Santa Monica, California TO: Mayor and City council FROM: city Staff SUBJECT: Ordinance for Introduction and First Reading Extending the Citywide Moratorium on Non-Residential and Hotel Development. INTRODUCTION This report recommends that the City Council introduce for first reading an ordinance to extend the citywide moratorium on non-residential and hotel development for an additional six months. While preparation of the Commercial Development Alternatives Environmental Impact Report (EIR) is currently underway, the fiscal impact analysis cannot be completed without the assistance of the information to be provided by the ongoing Fiscal Impacts of New Development (FIND) study. Completion of this study has been delayed and the needed information is not expected until mid-August. The urgent moratorium ordinance expires on August 16, 1992. Given the delay in obtaining all the required information to make a complete recommendation regarding non-residential development standards to Council, staff recommends extending the moratorium until February 26, 1993. - 1 - i-if iu' '~j u I, U- ~~Si BACKGROUND In March, 1991, following adoption of Ordinance 1570 (CCS) to extend the commercial development moratorium for one year, Council adopted a work program which included the preparation of a Master Environmental Assessment, selection of a preferred traffic methodology and definition of a significant traffic impact. In May, 1991, the City Council unanimously selected the Highway Capacity Manual (HCM) delay methodology. since this type of traffic methodology is much more labor and data intensive than the approach originally selected when the one year timeline was established, Council recognized that additional time would be necessary to complete the moratorium work program. In addition, in order to gather accurate data on the impacts of summer beach traffic on the city's street system, summer counts were collected in July and August, rather than in June as proposed under the original work program time line. To accommodate these changes, in November, 1991 Council adopted Ordinance 1610 (CCS) which extended the moratorium until August 26, 1992. In January, 1992 Council considered the proposed alternative development standards to be analyzed in the EIR. At that time Council directed staff to prepare a report that would evaluate eight commercial development scenarios as well as three different scenarios for rezoning a portion of the C5 and Ml districts to residential use. Preparation of this report is currently - 2 - underway. A list of the development alternatives to be included in the study is contained in Attachment B. A key component of the Commercial Development Alternatives EIR is is the fiscal impact analysis. This analysis will be prepared using the model developed as part of the City's FIND study. However, the FIND Study has been delayed and the information needed to complete the EIR fiscal analysis will not be available until mid-August. Therefore, the draft EIR, which was to be released in March, will not be available until September. A six month extension of the commercial development moratorium ordinance will be necessary in order to complete the tasks outlined by Council in the moratorium work program. The attached moratorium ordinance will extend the application of the current interim zoning standards until February 26, 1993. Pursuant to Zoning Ordinance Section 9120.6, no further extensions of the commercial moratorium ordinance may be permitted beyond February 1993. Revised Commercial Moratorium Work Program Timeline Staff recommends revising the commercial Moratorium Work Program timeline as follows: Draft Commercial Development Alternatives EIR Released for 30 Day Public Review and Comment Period Public Comment Period Closes September 1992 October 1992 Final EIR Released October 1992 - 3 - Final EIR and Ordinance to Council for First Reading November 1992 Second Reading December 1992 Ordinance Effective January 1993 commercial Moratorium Ordinance Expires February 26, 1993 BUDGET/FINANCIAL IMPACT The recommendation presented in this report does not have a budget or fiscal impact. RECOMMENDATION It is recommended that the city Council introduce for first reading an ordinance to extend the Citywide moratorium on non-residential and hotel development for an additional six months. The moratorium would then expire on February 26, 1993. Prepared By: Paul Berlant, Director of LUTM Suzanne Frick, Planning Manager Amanda Schachter, Associate Planner Land Use and Transportation Management Department Program and Policy Development Division Attachments: A. Ordinance Extending the citywide Moratorium on Non-Residential and Hotel Development Commerical Development Standards EIR Alternatives B. w/alt5 - 4 - ATTACHMENT B COMMERCIAL DEVELOPMENT STANDARDS EIR ALTERNATIVES 1. Existing Zoning Ordinance (No Project Alternative) 2. Existing Zoning Ordinance with reduced FAR for large lots 3. Existing Zoning Ordinance with housing required above the first floor in the C3 district outside the Third street Promenade area 4. 25 percent reduction from zoning Ordinance with additional FAR reduction for large lots 5. 25 percent reduction from zoning Ordinance with 40 percent of all new FAR devoted to housing 6. 50 percent reduction from Zoning Ordinance with additional FAR reduction for large lots 7. 50 percent reduction from zoning Ordinance with 40 percent of all new FAR devoted to housing 8. Density Bonus for public amenities up to Zoning Ordinance standards 9. Residential Rezoning in the C5/Ml districts to R2 standards 10. Residential Rezoning in the C5/Ml districts to R3 standards 11. Residential Rezoning in the C5/Ml districts to R4 standards w/alt8 - 1 - Al+a.d1meV)+- A w/alt6 City Council Meeting 6-9-92 Santa Monica, California ORDINANCE NUMBER (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA EXTENDING THE CITYWIDE MORATORIUM ON NON-RESIDENTIAL AND HOTEL DEVELOPMENT THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Findings and Purpose. The city Council finds and declares: (a) In recent years, the pace of non-residential development in the City has accelerated dramatically, adversely affecting the capacity and quality of the City's street and highway system, the jobs/housing balance within the City, and the quality of life in the community, including environmental quality and neighborhood character. (b) In 1987, a building permit was issued for only one non-residential project totaling 1,014,546 square feet. In 1988, building permits were issued for twenty-three (23) non-residential projects totaling 2,835,940 square feet. In 1989, discretionary planning approvals were granted for 17 non-residential projects totaling 1,077,402 square feet. In 1990, discretionary planning approvals were granted for 13 non-residential projects totaling 776,987 square feet. In addition, of the 17 discretionary projects approved in 1989, nine - 1 - (9) of the projects, totaling 577,910 square feet, have not yet been issued building permits and begun construction. (c) since the non-residential development moratorium was initially adopted by the city Council in May 1989, and through November 1990, a total of 203,308 square feet of non-residential, non-discretionary development has been approved under the provisions of the moratorium ordinance. (d) Based on population and employment proj ections, the Environmental Impact Report on the City's Land Use and Circulation Element, adopted on October 23, 1984, projected that there would be a demand for an additional 5,800,000 square feet of non-residential development by the year 2000. As of 1989, development in the City has already exceeded the projected amount of development for the year 2000. (e) A review of recent Initial Studies and Environmental Impact Reports prepared for the City reveals that there are at least thirteen intersections in the city where the existing level of service ("LOS") falls below "0". These reports further reveal that with the impact of approved and proposed projects within and outside the city, the future level of service of at least thirty-three (33) intersections across the City is projected to fall below LOS "Du. (f) According to the city of Los Angeles, the existing capacity of the Hyperion Treatment Plant, where wastewater from the City of Santa Monica I s public sewer system is treated and disposed of, is operating at or near its current full capacity, - 2 - necessitating regulation of the rate of wastewater increase handled by the City1s sewer system. The urgency of the wastewater treatment and disposal problem is illustrated by the adoption or Ordinance Number 1451 (CCS) on July 26, 1988. (g) The pace of non-residential development has far outstripped the pace of residential development in the City, further increasing the imbalance between the number of jobs in the City and the availability of housing for persons employed in the city. (h) Although revisions to the Zoning Ordinance lowered heights and floor area ratios in most non-residential districts, these reductions do not control the rate, location or character of development in those areas, and do not adequately address the infrastructural and environmental problems currently facing the city. (i) According to the Environmental Impact Report on the Zoning Ordinance, there is a maximum theoretical capacity of between 62,924,000 and 75,916,000 square feet for office commercial, and industrial development in the city. The maximum build-out potential needs to be re-examined as do the mechanisms for limiting and mitigating the impacts of that build-out on the City's infrastructure. (j ) a threat residents. The increase in development activity in the City poses to the public health, safety and welfare of the - 3 - (k) The city's zoning, planning, subdivision, and building regulations require review as they pertain to the non-residential development activity within the City in order to ensure that development is consistent with the public health, safety and welfare. (1) Following the initiation or Ordinance Number 1481 (CCS) creating a ten month and fifteen day moratorium, three public workshops were held to help familiarize and involve the public with issues to be addressed as part of a Citywide growth management strategy. In addition, three reports were released, a background report which discussed the existing condition of the City, a fiscal analysis which discussed the fiscal impact of new development on the City, and a Citywide Traffic Study which analyzed the operation of the City's street system. (m) Since the initiation of Ordinance Number 1512 (CCS) extending the moratorium for an additional ten months and fifteen days, a draft Growth Management strategy Implementation Plan was released which proposed a plan to control the rate, intensity, and types of uses in new commercial development projects. Following two Planning commission public hearings and one meeting for Commission discussion and deliberation, the Commission recommended that the strategy be pursued in greater depth and that a comprehensive plan to manage growth in the city, rather than a plan directed primarily at controlling the pace of commercial development, be prepared. - 4 - (n) Following the initiation of Ordinance Number 1570 (CCS) extending the moratorium for one year, a study session was held with the Planning commission and city Council to compare and evaluate traffic methodologies. On May 14, 1991, the City Council directed staff to use the Highway Capacity Manual (HCM) delay approach to analyzing intersection capacities and traffic flow rates in the City for all future traffic studies. The HCM methodology requires extensive field work gathering information on queue lengths, lane widths, percentage of heavy vehicles and presence of pedestrians and/or bicyclists. For these reasons, the HCM methodology is much more labor and data intensive than the previously used Critical Movement Analysis (CMA) approach. The one year moratorium work program schedule was based upon using the CMA methodology. Using the HCM approach and incorporating July/August summer counts required an extension of the Commercial Moratorium and the Moratorium Work Program, as acknowledged by Council on May 14, 1991. (0) Since the initiation of Ordinance 1610 (CCS) extending the moratorium for six months, a Citywide Master Environmental Assessment has been prepared and reviewed by both the Planning Commission and the City Council. In addition, preparation of an Environmental Impact Report (EIR) is underway which will analyze eleven commercial development alternatives, including an evaluation of the impact associated with the rezoning of portions of the C5 and Ml districts to residential uses. The EIR will include an analysis of the fiscal impacts of altering the City's existing development standards. This analysis cannot be - 5 - completed without the use of the city's Fiscal Impacts of New Development (FIND) study. Due to delays in completing FIND, the Commercial Development Alternatives EIR will be delayed by six months. To provide sufficient time for public review and public hearings on the EIR, as well as Council consideration of new commercial development standards for the City, the moratorium must be extended six months. (p) Expiration of the ordinance would pose a current and immediate threat to the public health, safety and welfare of the residents as set forth in these findings, and the approval of additional subdivisions, use permi ts, variances, building permits, or any other applicable entitlement for use which is required in order to comply with a zoning ordinance would result in a threat to public health, safety, or welfare. SECTION 2. Moratorium. (a) subject to the exemptions set forth in Section 3 of this Ordinance, a moratorium is hereby placed on the acceptance for processing of any applications for approval of tentative tract maps, tentative parcel maps, administrative approvals, development review permits, conditional use permits, or any other city permits for the erection, construction, moving, conversion of, and excavation and grading for, any non-residential building or structure, including any hotel or motel, in the city of Santa Monica. (b) Subject to the exemptions set forth in Section 3 of this Ordinance, the Planning commission and City staff are hereby - 6 - directed to disapprove all applications filed after May 2, 1989, for approval of tentative tract maps, tentative parcel maps, administrative approvals, development review permits, conditional use permits, or any other City permits for the erection, construction, moving, conversion of, and excavation and grading for any non-residential building or structure, including any hotel or motel, in the City of Santa Monica. SECTION 3. Exemptions. The following applications are exempt from the provisions of section 2 of this Ordinance: (a) Applications for approval of permits involving proposed developments of structures or uses for governmental, educational, or public recreational purposes on land owned, operated or controlled by the City of Santa Monica, Santa Monica College, the Santa Monica School District, or the State of California and applications for approval of permits involving development on land owned, operated, or controlled by the City of Santa Monica and intended for development of 415 Pacific Coast Highway, the pier, parking for the pier, or an aquarium. (b) Applications for approval of permits for proposed developments in the Third street Mall Specific Plan Area and in the Hospital Specific Plan Area. (c) Applications for approval of permits for proposed developments that fall at or below the following square feet of floor area for the district in which the development is located: - 7 - C-2 C-3 C3C C-4 C-5 C-6 CM CP Ml BCD RVC Neighborhood Commercial Downtown Downtown Overlay Highway Commercial Special Office Boulevard Commercial Main Street Commercial Professional Industrial Conservation Broadway Commercial Residential-Visitor Commercial The Promenade 7,000 All other parts of the District 15,000 7,000 15,000 15,000 12,000 15,000 15,000 7,000 11,000 15,000 11,000 For purposes of calculating floor area as it relates to this ordinance, covered at grade and above grade parking shall be exempt from the floor area calculation. To the extent that a project contains both residential and non-residential components, this moratorium applies only to the non-residential component of such project. A project that contains both residential and non-residential components may proceed with an application only if the square footage of the non-residential portion of the project falls below the threshold set forth in this subsection. The reductions in square footage made on February 26, 1991, shall apply to any project for which an application was filed on or after February 27, 1991. - 8 - (d) Applications for approval of permits involving proposed developments for which development agreement applications have been filed on or before May 2, 1989 and proposed developments for which development review applications have been filed and deemed complete on or before May 2, 1989. (i) An application shall be deemed complete for purposes of this Ordinance within fifteen (15) days for subdivision maps and parcel maps, and thirty (30) days for all other permits, after the Planning Division receives a substantially complete application together with all information, reports, drawings, plans, filing fees, and any other materials and documents required by the appropriate application forms supplied by the City. If, within the specified time period, the Planning Division fails to advise the applicant in writing that his or her application is incomplete and to specify all additional information required to complete that application, the application shall automatically be deemed complete. An application is "substantially complete" if the missing information is supplied within two (2) working days of the City's request. (ii) If an application for approval of a proposed development has been deemed complete by the City on or before May 2, 1989, an amended application for the same project shall be deemed complete as of May 2, 1989, so long as the Planning Director determines that the changes to the project do not increase the size or substantially alter the scope of the proposed project. This Section shall not apply for purposes of - 9 - deeming an application complete under the Permit Streamlining Act. (e) Applications for approval of permits involving the erection, construction, enlargement, demolition, or moving of, and excavation and grading for, projects which have been granted development permits by the Planning Commission or Planning Division on or before May 2, 1989. (f) For applications involving the demolition and replacement of existing single purpose, single tenant, neighborhood serving grocery stores and pharmacies, only the net new floor area to be added shall be subj ect to the floor area limitations contained in Section 3 (c) of this Ordinance. Demolition and replacement of the existing floor area shall be exempt from the square footage limitations. (g) Applications for approval of a proposed single purpose, single tenant grocery store, at or below 25,000 square feet, so long as they apply for and receive a development review permit. SECTION 4. This Ordinance shall be of no further force and effect as of February 26, 1993. SECTION 5. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this ordinance, to the extent of such inconsistencies and no further, are hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. - 10 -