SR-212-001-01
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CA:RMM:l14BOb/hpc
City council Meeting 2-20-90
FEB 4 7 1990
Santa Monica, California
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STAFF REPORT
TO:
Mayor and City council
FROM:
City Attorney
SUBJECT:
ordinance Implementing Policy 45 of the city's
Draft Local Coastal Program Establishing Mitigation
Fees for the Removal of Low Cost Lodging Accommoda-
tions in the Santa Monica Coastal Zone
At its meeting on February 13, 1990, the city Council
introduced for first reading an ordinance establishing a fee to
mitigate the loss of affordable hotel and motel rooms within the
Coastal zone, as required by the City'S Draft Local Coastal
Program. The ordinance is now presented to the City Council for
adoption.
RECOMMENDATION
It is respeetfully recommended that the accompanying
ordinance be adopted.
PREPARED BY:
Robert M. Myers, City Attorney
Laurie Lieberman, Deputy City Attorney
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FER 2 ': :.990
. ~BEFelRE DISTRIBUTION C....:::K CONTENT
DISTRIBUTION OF RESOLUTION *
Council Meeting Date % 7 (,If
f-e
Was it amended? fro
OF ALL
FOR CITiltLERK1S ACTION
ORDINANCE # / SI G
Introduced: q7h? /1 Z)
Adopted: o/=? 7/9 ()
ALWAYS PUBLISH ADOPTED ORDINANCES
Cross out Attorney's approval
Agenda Item #
VOTE: Affirmatlve: ~
,r
Negatlve:
Abstain:
Absent: e:~~~ ~
PROOF VOTES WITH ANOTHER PERSON BEFORE ANYTHING
DISTRIBUTION: ORIGINAL to he slgned, sealed and flIed ln Vault.
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NEWSPAPER PUBLICATION (Date: ) I
Department orlginatlng staff report( Laurie Lleberman)
Ordlnances only for Attorney ( Claudla Thompson) 2
Management Servlces Lynne Barrette ORDINANCES ONLY 1
Agency mentioned ln document or staff report
(certified?)
SubJect fl1e (agenda packet) 1
Counter file 1
Others: (Revlew
Alrport
AuditorlUTI1
for departments who need to know).
Parking Auth.
Personnel
BU11dl.ng Dept. Plannl.ng I
C/ED Police
Finance Purchaslng
General Servo Recr/Parks
Llbrary Transportatlon
Manager Treasurer
Fire 4..-.? 6~ }
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SEND FOUR COPIES OF AI.L ORDINANCES TO:
CODED SYSTEMS
120 Mal.n Street
Avon, New Jersey 07717
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SEND FOUR COPIES OF ALL ORDINANCES TO: 4
Debra Myrlck
Santa Monica Munlclpal Court
1725 Ma2n Street, Room 118
Santa Monlca, CA 90401 Total Copies
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CA:RMM:lld580jhpc
city Council Meeting 2-20-90
Santa Monica, California
ORDINANCE NUMBER ~(CCS)
(City council series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA IMPLEMENTING POLICY 45 OF THE CITY
OF SANTA MONICA DRAFT LOCAL COASTAL PROGRAM ESTABLISHING
MITIGATION FEES FOR THE REMOVAL OF LOW COST LODGING
ACCOMMODATIONS IN THE SANTA MONICA COASTAL ZONE
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, there has been a significant shift in
the development of visitor accommodations within the Santa Monica
Coastal Zone from low cost lodging accommodations to luxury
lodging accommodations. Since 1984, six luxury hotels containing
1,109 rooms have received City approvals within the Coastal Zone
while no new low cost rooms have been proposed in this area.
(b) The City of Santa Monica has experienced a significant
reduction in the number of low cost lodging accommodations due to
demolition and conversion of existing units and construction of
office development and luxury lodging accommodations.
since
1984, approximately 355 low cost rooms in the Coastal Zone have
been demolished and not replaced, representing a loss of
forty-five percent (45%) of the low cost rooms existing in the
Coastal Zone as of 1984.
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(c) The vast majority of visitor accommodations in the
Coastal Zone removed from the market due to demolition are low
cost lodging accommodations.
Cd) The demolition of low cost lodging accommodations in
combination with the replacement by, and new construction of,
luxury lodging accommodations has altered the balance and has
contributed to the scarcity of affordable visitor accommodations
in the City. Only fifteen percent (15%) of the total hotel-motel
accommodations which will exist in the Coastal Zone once the new
ci ty-approved accommodations are completed, will be low cost
accommodations.
Ce) Policy 45 of the Draft Local Coastal Program provides
for a mitigation fee where new development removes low cost
lodging accommodations.
(f) Pursuant to the police power, the City has the
authority to address both the imbalance created by the removal of
existing low cost lodging accommodations and the overall need for
affordable visitor accommodations in the City.
(9) The purpose of this Ordinance is to reduce the
negative impact on affordable visitor accommodations caused by
new commercial and new hotel and motel development which requires
demolition of existing visitor accommodations.
(h) New commercial and new hotel and motel development
which requires demoli tion of existing low cost
lodging
accommodations is generating a reduction in the city's affordable
visitor accommodations, and increases the imbalance between
coastal activities and affordable visitor accommodations in the
City.
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(i) The City has a continuing need for low cost visitor
accommodations and such need is exacerbated by the demolition and
conversion of such units and construction of new commercial
developments.
(j) Any fees collected pursuant to this Ordinance shall be
used only to finance the construction of low cost lOdging
accommodations.
(k) The fee requirements of this Ordinance will help
diminish the overall loss of low cost lodging accommodations in
the city and to mitigate the adverse consequences of removal of
low cost lOdging accommodations in the Coastal Zone.
(1) The facts and evidence presented in the Draft Local
Coastal Program dated October, 1989, in the "santa Monica Coastal
Zone Motel and Hotel Room Survey" prepared by willdan Associates,
dated January 18, 1990, and in the california Coastal Act of
1976, establish that there is a reasonable relationship between
the need for the replacement of low cost visitor accommodations
which is removed by demolition and the fee established by this
Ordinance, and also that there is a reasonable relationship
between the use of the fee and the type of development for which
the fee is charged.
(m) The fees required by this Ordinance do not exceed the
reasonable costs of constructing replacement units as
demonstrated by the II Evaluation of Financial Assistance
Requirements for the City of Santa Monica's Overnight Affordable
Accommodations program," a studied prepared by Natelson Levander
Whitney, Inc., dated December 11, 1989.
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SECTION 2. Definitions. The following words or phrases as
used in this Ordinance shall have the following meanings:
(a) Fee. A fee paid to the City by a developer pursuant
to this Ordinance to mitigate the removal of low cost lodging
accommodations.
(b) Low Cost Lodqinq Accommodation. Any hotel or motel
unit designed, occupied, or intended for occupancy, as a
temporary lodging place for individuals for less than thirty (30)
consecutive calendar days for which the room rate was Eighty
Dollars ($80.00) or less as of December 12, 1989, or as of the
last day of operation if the hotel or motel was not in operation
as of that date.
(c) Remove or Removal. The demolition of low cost lodging
accommodations or the conversion of such units to other use.
(d)
Santa Monica Coastal Zone.
The approximately 1.5
square miles bounded on the west by the Pacif ic Ocean, on the
south by the City's southern boundary, on the east by Lincoln
Boulevard south of Pico Boulevard, and by 4th Street north of
pico Boulevard as far north as San Vicente Boulevard. Along the
San Vicente Boulevard centerline, the boundary goes inland to 7th
street to the northern City boundary.
(e)
site.
One or more contiguous parcels under common
ownerShip which have been used, developed, or built upon as a
unit.
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SECTION 3. Kitiqation Fee Requirement.
(a) No person shall remove low cost lodging accommodations
in the Santa Monica Coastal Zone unless the person has complied
with the provisions of this Ordinance.
(b) No permit, license, or other approval shall be issued
or granted by the city for the development or use of any property
from which any low cost lodging accommodations have been removed
until the person seeking the license, permit, or other approval
has complied with this Ordinance.
SECTION 4. Applicability. This Ordinance shall apply to:
(a) Any development, project, or other activity involving
the removal of any low cost lodging accommodations in the Santa
Monica Coastal Zone. For purposes of this Ordinance,
development, project, or other activity shall include the
creation of a parking lot, open space, or vacant land on a site
previously occupied by low cost lodging accommodations.
(b) Any site located in the Santa Monica Coastal Zone from
which the removal of low cost lodging accommodations has been
approved and as to which a condition requiring the payment of a
mitigation fee has been imposed by the California Coastal
commission.
SECTION 5. Fee.
(a) The low cost lodging mitigation fee required by this
Ordinance shall be satisfied by payment of a fee to the city in
the amount required by this section.
(b) The amount of fee required pursuant to this section
shall be based on the number of units to be removed. For each
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low cost lodging unit removed, a fee of Eiqht Thousand Dollars
($8,000.00) shall be required.
(c) Any fee payment required pursuant to this Section
shall be adjusted for inflation by the percentage change in the
Consumer price Index ("CPI") mUltiplied by .65 plus the
percentage change in land cost multiplied by .35 between the date
of adoption of this Ordinance through the month in which payment
is made.
(1) For purposes of this Section, cpr shall mean the
index for Urban Wage Earners and Clerical Workers for the Los
Angeles/Long Beach/Anaheim statistical area, as published by the
United States Department of Labor, Bureau of Labor Statistics.
(2) For purposes of this Section, "land cost" shall
mean the average purchase price per square foot for commercially
zoned property, as determined through an independent survey
performed for the Community and Economic Development Department
by a qualified real estate consultant and adjusted on an annual
basis.
SECTION 6. Payment of Fee.
(a) At the time of application for a demolition permit or
other approval necessary for the removal of low cost lodging
accommodations located in the santa Monica Coastal Zone, the
developer shall enter into a compliance agreement for payment of
the fee in accordance with the provisions of this section.
(b) The compliance agreement shall contain the following
requirements:
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(1) At least fifty percent (50%) of the fee shall be
paid prior to issuance of a demolition or building permit for a
project on the site.
(2) The balance of the fee shall be paid prior to
issuance of the certificate of occupancy for any development or
conversion on the subject site. If no certificate of occupancy
is required for the conversion or other new activity on the
subject site, the balance of the fee shall be due upon
commencement of the new activity or within one year, whichever
occurs sooner.
(3) The agreement shall create a lien on the
property which shall be binding on the developer and any
successor of the developer, including any person acquiring an
interest in the property by foreclosure, trust sale, or other
proceeding.
(4) Payments shall be adjusted annually for
inflation pursuant to section 5.
(5) The compliance agreement shall be recorded.
(6) Such other provisions as are reasonably deemed
necessary by the city to ensure payment of the fees required by
this Ordinance.
(c) The fee required by this Ordinance shall not become
effective until sixty (60) days from its adoption, pursuant to
Government Code section 65962(a}.
SECTION 7.
pursuant to this
Account separate
Deposi t and Use of Fee. Any payment made
Ordinance shall be deposited in a Reserve
from the General Fund to be used only for
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development of low cost lodging accommodations in the Santa
Monica Coastal Zone. Any interest income earned by monies in
snch account shall be expended only for development of low cost
lodging accommodations in the Santa Monica Coastal Zone.
SECTION 8. Applicability of other City Ordinances and
RegulatioDs. None of the provisions in this Ordinance are
intended to supersede any provisions of the city Charter,
ordinances, regulations, or resolutions concerning demolition of
residential housing, relocation of displaced tenants, rent
control removal within fifteen (15) days after its adoption.
SECTION 9. 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 affect the provisions of this ordinance.
SECTION 10. 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 any 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.
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SECTION 11. The Mayor shall siqn 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 ~5 days after its adoption. This ordinance shall become
effective 30 days from the date of its adoption.
APPROVED AS TO FORM:
~VY\..~~ _
ROBERT M. MYERS \J
City Attorney
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Adopted and approved this 27th day of February, 1990.
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Mayor Pro Tempore
I hereby certify that the foregoing Ordinance No. 1516(CCS)
was duly and regularly introduced at a meeting of the City
council on the 20th day of February 1990~ that the said Ordinance
was thereafter duly adopted at a meeting of the city Council on
the 27th day of February 1990 by the fallowing Council vote:
Ayes: Councilmembers: Abdo, Finkel, Jennings, Katz,
Reed
Noes: Councilmembers: None
Abstain: Councilmembers: None
Absent: Councilmembers: Genser, Mayor Zane
ATTEST:
cl
.Ms.. c~. Clerk