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SR-11-D (15) . . II"!:> JUN 2~3 1361 JUN 3 0 ,QS7 C/ED:CPD:DKW:JLA:klc COUNCIL MEETING: June 23/ 1987 santa Monica, California TO: Mayor and city council FROM: city Staff SUBJECT: Recommendation to Direct the city Attorney to Prepare Zoning Regulations Regarding Theater Development INTRODUCTION This report provides the Planning Commission I s response to the Council's directive to develop zoning regulations reqarding movie theater development. BACKGROUND The city Council directed the Planning Commission on April 28th, 1987 to review and comment on the following zoning and policy options: 1. Allow cinema use, as of right, in the Third street Mall Specific Plan Area. When more than 4,000 new seats are developed, future development of theaters would be subject to a Conditional Use Permit. 2. Allow new movie theater development by Conditional Use Permit in the remainder of the downtown. 3. Allow existing theaters to remain, but prohibit new cinema - 1 - 11-12 JUN 2"3 19.81.. !fUN 3 0 1~1 development in other areas of the City. . . 4. All of the above shall be effective retroactive to April 28, 1987, The Council also clarified that video theaters would be treated as movie theaters for purposes of these regulations. DISCUSSION On June 1st, 1987, the Planning commission reviewed the Council's recommendations (see attached staff report), took public testi- mony and discussed the impacts of theater development in the City. They determined that the proposed zoning ordinance should be modified to reflect the pOlicy of allowing theater development in the C3 (downtown commercial) area by CUP and as of right in the C3C (downtown core) . However, they felt a CUP in the C3C district should be required after 3,000 new seats or 12 screens were developed rather than 4,000 seats or 12 screens as the Council and staff had recom- mended. The Commission felt that this change was appropriate because of a concern about traffic congestion and parking avail- ability. They further concurred that Interim 1321 should be amended to allow theater development by the Development Review process in the downtown district (C3) and to prohibit new movie theater development in any other area of the city. The Commis- sion did not make a recommendation on the effective date of the regulations. - 2 - . . staff concurs with the Commission's recommendations with one exception. staff believes that the new Zoning Ordinance should set a threshold of 4,000, rather than 3,000 seats in the Third street Mall area. As indicated in the staff report to the Planning commission, adequate parking exists in the area, and theater development would provide a significant stimulus to revitalization of the downtown, which is one of the City's key land use and economic objectives. Such development would be facilitated by a 4,000, rather than 3,000 seat limit. The following outlines the Planning Commission's recommendations. 1. Recommend that Interim Ordinance 1321 be amended to do the following: a. Allow new Development district. movie Review theater in the development C3 (downtown subj ect to commercial) b. Allow existing movie theaters to remain, but prohibit new movie theater development in other areas of the City. 2. Recommend that the proposed Zoning Ordinance be modified to exclude movie theater development in all zones except the C3C (downtown core) district where it shall be allowed by right, except that when more than 3,000 new seats or 12 screens are developed, future development of such theaters will be subject to a Conditional Use Permit; and allow new - 3 - . . movie theater development in the C3 (downtown commercial) district by Conditional Use Permit. This report recommends that the council direct the city Attorney to draw up an ordinance to incorporate the above amendments to Interim Ordinance 1321 and modify the proposed Zoning Ordinance, with the exception that development of 4,000 seats in the C3C district be permitted by right in the new Zoning Ordinance, rather than 3,000 seats. BUDGET/FISCAL IMPACT The recommendations of this report have no budget/financial impacts. RECOMMENDATION It is respectively recommended that city Council direct the City Attorney to prepare appropriate ordinances to accomplish the following: 1. pending the adoption of the new Zoning Ordinance, develop an ordinance which: a. Allows new movie theater development subject to Plan- ning Commission review in the C3 (downtown commercial) district, and allow existing theaters to remain. - 4 - . . b. In other areas of the City, allows existing movie theaters to remain, but prohibits new movie theater development. c. Applies these standards to existing development, and any proposed development project which did not have a complete application as of April 28, 1987. 2. Modify the proposed Zoning Ordinance to exclude movie theater development in all zones except the C3C (downtown core) district where it shall be allowed by right, except that when more than 4,000 new seats or 12 screens are developed, future development of such movie theaters will be subject to a Conditional Use Permit (CUP), and allow new movie theater development in the C3 (downtown commercial) district by CUP. Prepared by: D. Kenyon webster, Senior Planner Joan L. Akins, Assistant to the Director of Community and Economic Development Attachment: June 1, 1987, Planning Commission staff report theatere 06/16/87 - 5 - . ATTACHMENT . CITY PLANNING DIVISION community and Economic Development Department MEMORANDUM DATE: June I, 1987 TO: The Honorable Planning Commission FROM: R. Ann siracusa, Director of Planning SUBJECT: Recommendation to Develop zoning Regulations Relating to Movie Theater Development INTRODUCTION This report responds to a request from the City Council, on April 28, 1987, to the Planning Commission to develop appropriate zoning regulation in order to direct movie theater development to the Third street Mall Specific Plan Area, (bounded by Wilshire Boulevard, 2nd Street, Broadway and 4th Street) to assure that residential neighborhoods will not be negatively impacted by cinema complex development. Staff has researched the number of existing and proposed theaters, held discussions with developers, theater managers, owners and citizens, and evaluated existing and proposed zoning regulations relating to theaters. This report follows the direction of City Council to obtain Planning Commission recommendations concerning the incorporation of language in the proposed Zoning Ordinance and amending Interim Ordinance 1321 to include the following: 1. Allow by right movie theater uses in the Third street Mall Specific Plan Area, providing that when more than 4,000 new seats or 12 screens are developed that movie theaters in the Third street Mall Specific Plan Area will be subject to a conditional Use Permit: 2. Allow new movie theater uses by Conditional Use Permit in the remainder of the downtown; 3. Allow existing movie theaters to remain, but prohibit new movie theater uses in other areas of the City: 4. Under Interim ordinance 1321, allow new movie theater development subj ect to Development Review in the C3 (downtown commercial) district only; and 5. Establish April 27, 1987, as the effective date of these requirements. - 1 - . . BACKGROUND The City Council directed staff on January 27, 1987, to perform an analysis on the demand for and the need to regulate movie theater projects in the City, with particular emphasis on the Third street Mall Specific Plan Area. The Council requested that the investigation include mechanisms which could be used to avoid negative impacts on residential neighborhoods by cinema complex development. Additional concerns identified by the Council and by community groups included potential adverse traffic and parking effects of movie theater projects, the issue of whether the City would be faced with an excessive number of such uses, and whether a policy objective of encouraging theaters in the Third street Mall Specific Plan Area should be developed. staff's analysis of the theater issue was brought before Council on April 28, 1987, and included surveying existing theaters in Santa Monica, investigating what appeared to be the sudden interest in Santa Monica as a site for proposed new cinema development, and gathering information on how many movie theaters a given area could accommodate. The analysis consisted of surveys conducted over the phone or in meetings with theater owners or managers and representatives of developers. It also included a meeting with the Mid-City neighborhood organization, which has organized a special group on the issue of movie theater development. For clarity, the terms 'movie theater' and 'cinema complex' discussed in this report refer to a facility with a large screen(s), fixed seats, projection equipment, concession stands and motion pictures. The terms 'movie theater' and 'cinema complex' includes video theaters, but does not include live theater. Existing Theaters There are currently six movie theater complexes in Santa Monica (see Table 1) which would be impacted by new theater development in the city. When asked how many more seats they felt the City could absorb, some managers commented that 5,000 seemed a reasonable number but did not speculate as to what number of seats was too many. Managers of some such establishments noted that they did not necessarily show first-run movies as the mainstay of their business. These existing operators might be able to share in the market better, since new theaters would be expected to show predominately first-run movies. There is a seventh existing theater, located on the Third street Mall, which is currently closed. Staff has been informed that this single screen, 1,000 seat theater is being considered for renovation to perhaps a 4 screen theater (seat number not available at this time). - 2 - . . TABLE 1 EXISTING THEATER SEATING IN SANTA MONICA Monica 1,100 seats 4 screens Brentwood 910 seats 2 screens Aero 641 seats 1 screen Wilshire Twin 778 seats 2 screens Pussycat 394 seats 1 screen Latino 776 seats 1 screen Main st. Video 8 seats 1 screen Total 4,607 seats 12 screens proposed Theaters The City is aware of five proposed new theater developments (see Table 2) through formal applications and informal discussions wi th potential applicants. It is important to note that the application for theater development on the 2300 block of Wilshire for 1,800 seats has expired and no new application has been submitted, and that subsequent to the City Council discussion of this matter, developers of the 234 Pico and Pico/Cloverfield pro- jects are considering changes to their projects. staff explored wi th these developers the sudden interest in Santa Monica with respect to new movie theater development and learned that the first-run film distribution marketplace has been expanded recent- ly from a few zones such as Hollywood and Westwood to other areas including century City, Marina del Rey, Beverly Center, West Hollywood and Santa Monica. This is not attributable to more films being shown or an increase in audience size. Developers noted that with more screens in operation, profits will be spread over a wider market, and travel time and commute distance will be shortened for moviegoers. TABLE 2 PROPOSED THEATER DEVELOPMENTS IN SANTA MONICA 309 Broadway 1,120 seats 4 screens 234 Pico (bowling alley site) 1,856 seats 6 screens Newberry Santa Monica Mall 1,500 seats 6 screens Colorado Place (Phase II) 2,500 seats 8 screens picojCloverfield (Smart and Final Iris site) 1,144 seats unknown Total 8,120 seats 24 screens - 3 - . . Parking for theater use was also discussed with developers. Many new theaters are proposed for sites where there is existing park- ing available, such as shopping centers, as it is very expensive to provide parking for just theater patrons. Thus additional theaters are being proposed in the Beverly Center, Century city Mall and in other commercial areas. Most of the proposed movie theaters for Santa Monica are linked to existing parking or parking which would otherwise be developed for other proj ects ( "shared parking"). Shared parking could occur in the Third street Mall Specific Plan Area should theaters be built there. The parking structures are actively used in the daytime but in the evening and at night (when theaters are most in use) there are far less parking spaces utilized. The Downtown Parking study of 1981 and the Third street Mall Specific Plan Background Report of 1984 (pages 52-66) and EIR of 1985 all concluded that City parking structures typically peak at 2:00 or 3:00 p.m. for two hours and competition for space is minimal by 5:00 p.m. When asked to express their concerns about potential theater development, a group of residents from the Mid-City area who had organized in response to the now-defunct Wilshire theater development discussed the negative impacts they perceived would occur should theaters be allowed on commercial streets such as Wilshire and Santa Monica Boulevards. They felt, due to the large residential population bordering these two commercial corridors, that multi-screen houses would bring traffic, noise and parking problems into their neighborhoods during a wide range of hours. Participants in the discussion felt that the Third street Mall was an appropriate location for theater development and that it might assist in the Mall's recovery. Zoning Regulations The City's existing theaters in several discretionary review. zoning regulations (see Table 3) allow zones as a permitted use without special - 4 - . TABLE 3 . ZONES PERMITTING THEATERS IN THE EXISTING CODE Zones Neighborhood Commercial (C2) General Commercial (C3) Highway Commercial (C4) commercial Recreational (CR) Main street Special commercial (CM) Limited Industrial (Ml) Special Industrial (MlA) General Industrial (M2) The proposed zoning Ordinance, city Planning Commission and Council for review and public theaters in commercial zones Conditional Use Permit (CUP) in Conditions permitted permitted permitted permitted permitted if less than 75 seats, subject to CUP if more than 75 seats permitted permitted permitted which has been reviewed by the will be presented to the city hearings in a few months allows (see Table 4), but requires a most zones. Al though the existing ordinance allows theater use in certain districts (see Table 3), Ordinance 1321, adopted by the Ci ty Council as an interim development procedure during the revision of the existing Zoning Code, requires approval of a Development Review Permit (DR) for any entertainment use. section 9l29F(l}, SMMC, requires that movie theaters have one parking space per four fixed seats, and the proposed Zoning Ordinance would maintain this standard. Table 4 illustrates district specifications for theater use in the proposed zoning Ordinance. The objective of these standards is to encourage theater use in the downtown area. In most other districts, theaters would require discretionary review in order for the City to monitor the potential traffic, parking and pedestrian activity impacts. The proposed standards listed above were developed for the Draft Zoning Ordinance when there was not the interest and concern about movie theater development that the City is currently experiencing. It is, therefore, appropriate to re-evaluate the suggested permitted zones and recommend modifying the proposed code text. - 5 - . . TABLE 4 ZONES PERMITTING THEATERS IN THE PROPOSED CODE Zone Conditions Residential-Visitor Commercial (RVC) sUbject to CUP Neighborhood Commercial (C2) permitted with fewer than 75 seats, over 75 seats subject to CUP permitted Downtown Commercial (C3) Downtown Core (C3-C) permitted if existing, new subj ect to CUP Highway Commercial (C4) permitted if existing, new subject to cup (please note that the published version of the draft Ordinance does not include the CUP requirement due to a typographical error) Boulevard Commercial (C6) permitted if existing, new subject to CUP permitted with fewer than 75 seats, over 75 seats with cup Main street Special Commercial (CM) Civic Center (CC) permitted ANALYSIS site Review 15,000 - 30,000 sf depending on location 15,000 sf 75,000 sf 75,000 sf 30,000 sf Lincoln and pi co 35,000 sf other 40,000 sf 15,000 sf 100,000 sf As part of the city's goals, which are incorporated into the Land Use and Circulation Elements (LUCE) and the Third street Mall Specific Plan, there are objectives specifically calling for uses on the Mall that will encourage activity there during both daytime and evening hours and will encourage entertainment and cultural uses. These objectives and policies include: objective 1.3: Reinforce Downtown as the focus of the city, supporting the greatest concentration of activity. - 6 - . . Policy 1.3.1: Encourage the concentration of land uses and activities which create activity in both the daytime and evening hours. Policy 1.3.2: Make Downtown a primary location for commercial use, with priority given to comparison retail uses including uses that serve out-of-town visitors, and uses that encourage street activity after normal business hours. Policy 1. 3.3: Encourage the construction of major enter- tainment or cultural uses in Downtown. Pol icy 1. 3 . 4 : In the Downtown Core area, require that a majority of ground floor street frontage on a block-by-b1ock basis be active, pedestrian-oriented use (shop-fronts, cultural activities, cafes, and other uses catering to walk-in traffic) in order to promote pedestrian activity at the ground floor. In the Downtown Frame area, require pedestrian-oriented design features for all ground floor street frontage). The Third street Mall Specific Plan (TSM) contains objectives and policies reflective of the Council's revitalize the Mall. One objective is: TSM Objective 4.1: Recognizing the important role the Third Street Mall can play in making Downtown the activity focus of the City, encourage revitalization of the Third street Mall. Revitalization plans should accommodate goods, services, and urban design features which address the needs of both existing residents living near the Mall and a wide range of consumers visiting the Mall (adopted General Plan Land Use objective 1.4). specific goal to The policies encouraging uses related to cultural activity and new entertainment facilities are as follows: TSM Policy 4.1.1: Concentrate comparison retail uses and other complementary uses (such as hotels, offices, cultural facilities, restaurants, social services, and housing) on or near the Third street Mall as necessary to provide a catalyst for its revitalization (General Plan LUE Policy 1.4.1) . TSM Policy 4.1.3: Promote appropriate retail and cultural activity within the Mall right-of-way (farmers' market, out- door cafes, flower stands, performing and visual arts, etc.) (General Plan LUE Policy Policy 1.4.3). TSM Policy 4.1.5: Provide for the development of new uses which increase the economic activity of the Third Street Mall, including retail and specialty commercial, eating and drinking establishments, entertainment facilities (theatres, clubs, etc.), professional offices, and hotels. - 7 - . . TSM Pol icy 4: . 1.8: Allow for the development of retail, professional offices, personal and business services, enterta inment, restaurants, cuI tural, educational, health facilities, artist studios, and other related uses above the first floor of structures. TSM Policy 4.1.9: Promote new cultural activities and uses within the mall space and/or adjacent structures. TSM Policy 4.1.11: Encourage the would attract nighttime use of theatres, cultural performance entertainment facilities. introduction of uses which the mall, such as movie halls, restaurants, and All of these objectives and policies clearly illustrate the appropriateness of encouraging movie theater development in the Third street Mall Specific Plan Area. Theaters would bring people to the area in the evening as well as the daytime and enhance existing businesses. The Third street Development Corporation Board of Directors discussed theater development and determined that for the Third street Mall Area the desirable goal for number of seats ranges from a minimum of 2,500 to a maximum of 4,000 seats, with a minimum of two operators. Another City goal the city council wishes to enforce is the pro- tection of existing residential neighborhoods from impacts caused by commercial uses. To protect residential areas from the poten- tially negative traffic, parking and noise created by theaters, it appears appropriate to the Council that theater development be prohibited or significantly restricted on strip commercial streets, adjacent to residential areas, such as Santa Monica, Wilshire, pico, Main and Montana. The Colorado Place theaters are permitted under an existing Development Agreement and would not be affected except through amendment of that Agreement. Through encouraging movie theater development on the Mall as of right, and in the remainder of the downtown by CUP, the City could provide entertainment uses to the community and avoid negative impacts on residential areas and on the ambiance of the city. Staff recommends that the Planning commission suggest that interim development Ordinance 1321 be amended to provide that movie theater development can take place in the CJ (downtown commercial) district subject to Development Review and be prohibited in any other areas. This is appropriate as an interim standard pending adoption of the new Zoning Ordinance. It is also recommended that the commission suggest special standards for movie theater development as part of the revised Zoning Ordinance. - 8 - . . CEQA STATUS Adoption of more restrictive provisions in Ordinance 1321 will reduce potential adverse effects of theater development and has determined to be exempt from CEQA under Article III, section 1. Use regulations in the revised Zoning Ordinance are analyzed in the EIR for that project. To the extent that changes are made that are more restrictive than those analyzed in the Zoning Ordinance EIR, impacts identif ied therein would be less extensive. RECOMMENDATIONS It is respectfully recommended that the Planning commission conduct a Public Hearing on this matter and adopt the following: 1. Recommend to City council that Interim Ordinance 1321 be amended to do the following: a. Allow new movie theater development subject to Develop- ment Review in the C3 (downtown commercial) district. b. Allow existing movie theaters to remain, but prohibit new movie theater development in other areas of the City. 2. Recommend to City council that the proposed Zoning Ordinance be modified to exclude movie theater development in all zones except the C3C (downtown core) district where it shall be allowed by right, except that when more than 4,000 new seats or 12 screens are developed then future development of theaters will be subject to a Conditional Use Permit, and allow new movie theater development in the C3 (downtown commercial) district by CUP. Attachment A: Letter of Joy M. Fullmer Prepared by: D. Kenyon Webster, Senior Planner Joan L. Akins, Assistant to the Director of Community and Economic Development RAS: DKW: JLA: klc wjtheaterd 06/16/87 - 9 -