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SR-400-001 (2) PCD:SF:F:\PLAN\SHARE\COUNCIL\STRPT\2002\Revised PCD Priorities 10-22-02 City Council Meeting 10-22-02 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Revisions to the Planning And Community Development Work Program Priorities Related To Preparing Downtown Design Standards INTRODUCTION This report recommends that the City Council revise the Planning and Community Development Department work program related to preparation of downtown design standards by re-prioritizing the antenna ordinance update (priority #10) and one of either (a) the Auto Dealer Standards (#12), or (b) the R1 Standards for Sunset Park & North of Wilshire Neighborhoods (#14). BACKGROUND On September 24, 2002, the City Council introduced for first reading an interim ordinance lowering the development review thresholds in the Downtown to 7,500 square feet. Second reading of this interim ordinance is scheduled for November 12, 2002. This interim ordinance in part provides for the creation of downtown design standards, which will establish the community’s vision for development in the downtown and provide greater predictability for applicants. Once the downtown design standards are adopted, it is envisioned that an alternate review development review process will be established to implement the new standards. However, since creating the downtown - 1 - design standards will be a significant undertaking on the part of the community, Planning Commission, Architectural Review Board and city staff, a revision to the Planning and Community Development Department’s work program is necessary. This report outlines the options considered by the City Council on September 24 and provides additional information and alternatives. Staff has estimated that preparation of design standards for the downtown would take approximately one year and cost $150,000. Staff anticipates that the design standards would be incorporated within the zoning ordinance. Adoption of Department Work Program – As a part of its budget deliberations each spring, the City Council reviews and adopts the work program priorities for the Planning and Community Development Department. While adding the downtown design standards to the department’s work program will require deferral of other projects during the current fiscal year, the deferred projects will be reconsidered later this fiscal year as the City Council reviews the work program priorities for FY 03-04. Auto Dealer Standards – Automobile dealerships represent an important business sector in Santa Monica, providing employment, convenient sales and services to residents and sales tax revenue to the City. Over the last five years sales tax associated with the 46 new and/or used automobile dealerships in Santa Monica has represented an average of $4.93 million, or 3.04%, of the city’s general fund revenues. A more detailed breakdown of these revenues is contained in Attachment 1. - 2 - The location and operation of dealerships have presented land use compatibility conflicts in instances where they impinge upon the quality of life for nearby residents. These conflicts include issues such as: parking, noise, test driving of vehicles, emissions, light and glare and have generated at least 27 formal code enforcement complaints directly associated with automobile dealerships over the last five years (i.e., 10/97 through 9/02). Though no statistics are available, staff believes numerous other complaints indirectly associated with automobile dealerships have been filed. Moreover, it is likely that many residents who have complaints have chosen to not formalize them with the city and/or have directed them to the respective automobile dealerships. Accordingly, the goal of this work effort is twofold: (1) to address the land use conflicts so that nearby residents are relieved from impacts associated with automobile dealerships, and (2) to evaluate the constraints under which automobile dealerships operate and develop alternatives that would preserve the viability of this sector of the local economy. Staff envisions that this effort will, at a minimum, involve zoning ordinance text amendments, as well as required environmental review pursuant to CEQA. Depending upon the extent of ordinance changes an EIR may be necessary. Staff has estimated that this project will take 13 months to complete. R1 Standards for Sunset Park & North of Wilshire Neighborhoods – This work effort involves the preservation of the character and quality of two neighborhoods in Santa Monica. Sunset Park and the North of Wilshire neighborhoods are experiencing - 3 - changes somewhat similar to those in the North of Montana (NOMA) area, which precipitated a community process to evaluate and change the development standards in the North of Montana neighborhood in 1998. For context, in the five years (i.e., 1993 to 1998) preceding the changes to the NOMA development standards 53 parcels, or 1.9% of the 2,735 parcels in the neighborhood were targets of redevelopment; these numbers exclude remodels. Over the last five years (i.e., 1997 to 2002), the Sunset Park neighborhood saw redevelopment of 16 parcels, or 0.6% of the 2,701 parcels in the neighborhood. During the same period, the North of Wilshire neighborhood experienced redevelopment of 15 parcels, or 1.6% of the 938 parcels in the neighborhood. The process for developing new standards will involve separate community workshops for the two neighborhoods to define the problem and identify the neighborhoods’ unique characteristics. Similar to the NOMA process, staff envisions using a team of architects to assist with identifying options, preparing illustrations and drafting new regulations. The process will conclude with Planning Commission and City Council hearings. It is expected to take 18 months to complete. ANALYSIS Alternatives to the R1 Development Standards in Sunset Park and North of Wilshire Neighborhoods – Staff has evaluated four alternatives related to the R1 Standards for Sunset Park and North of Wilshire Neighborhoods that the City Council could consider as interim measures if they choose to defer that work effort. Each of these alternatives - 4 - has limitations. However, they warrant consideration as the Council weighs options for adjusting the Planning and Community Development Department priorities. Each alternative would require adoption of an interim ordinance. 1. Adopt Interim Development Standards – This alternative would apply three of the most significant requirements (lot coverage, setbacks and garage/garage door orientation) from the NOMA standards to the Sunset Park and North of Wilshire neighborhoods on an interim basis (likely 2 to 3 years). These interim standards would be necessary during the process to study the unique characteristics of the Sunset Park and North of Wilshire areas, such as lot size, topography, and development pattern, as well as conduct an appropriate community outreach effort before establishing permanent regulations for these neighborhoods. Applying portions of the NOMA standards on an interim basis may help to alleviate about change until a more complete analysis and public process is practical. Because of the unique characteristics of the Sunset Park and North of Wilshire neighborhoods staff does not believe that applying the NOMA standards in their entirety would be effective. Therefore, the result of this alternative would be to address some of the massing and streetscape concerns, but not some of the more finer-grained issues related to unique neighborhood characteristics such as topography. 2. Establish Construction Rate Program – This alternative would establish a temporary construction rate program for the Sunset Park and North of Wilshire - 5 - neighborhoods as a way to minimize disruption within the neighborhoods and slow the pace of changes that have the potential to alter neighborhood character and quality. As envisioned, such an alternative would be patterned after the construction rate requirements within multi-family areas, limiting one construction project within a 500-foot radius during a 15-month period. The effect of this alternative would be to slow but not alter development occurring within these neighborhoods. 3. Require Design Review – This alternative would, on an interim basis, require ARB review for all new construction or substantial remodels within the Sunset Park and North of Wilshire neighborhoods. This alternative responds to the notion that many of the problems facing these two neighborhoods are related to project designs that are of inferior quality that depreciates the appearance and value of neighborhoods, and that these projects are not generally compatible within their respective neighborhoods. These issues are the typical domain of the ARB design review process. Such a change would be a significant departure from the city’s practice in that ARB review is not and has never been required for new single-family homes in R1 zones, unless a modification is sought. This alternative would enable interested parties to review project plans and offer feedback to the ARB concerning project details, as well as an appeal to the Planning Commission. It would involve additional processing time (estimated at an additional 6 weeks) and additional processing fees of approximately $762 to those undertaking a project. - 6 - 4. Require Use Permit – This alternative would establish, on an interim basis, a requirement that new construction or substantial remodels within the Sunset Park and North of Wilshire neighborhoods obtain a Use Permit. In addition to requiring a public hearing, this alternative would enable the Zoning Administrator to review individual projects, consider public testimony, and require design, massing or other changes consistent with the required neighborhood compatibility and other Use Permit findings. Use Permit findings are generally broader, and would therefore allow consideration of broader project changes and conditions of approval, than those typically applicable to the ARB alternative outlined above. Use Permits may also be appealed to the Planning Commission. The Use Permit would involve additional processing time (estimated at an additional 10 weeks) and additional processing fees of approximately $2020 for those undertaking a project. 5. Establishing any interim regulations or procedures for the Sunset Park and North of Wilshire neighborhoods may not address the entire problem, may have unintended consequences, and will have an incremental effect on workload. However, should the Council determine it appropriate to enact some temporary measure related to the R1 Standards in the Sunset Park and North of Wilshire neighborhoods staff believes that alternative 4, establishing a Use Permit requirement for new development or substantial remodels, is preferred. This alternative establishes a temporary process to address all the substantive - 7 - concerns posed by potential overbuilding within these neighborhoods. Further, it affords public input and an appeal procedure. The other alternatives address only portions of the problem. BUDGET/FINANCIAL IMPACT Staff estimates that preparation of downtown design standards will cost $150,000. Funds for this effort are not presently identified within the Department’s budget. While funds related to the antenna ordinance update were appropriated in a previous fiscal year, and have been partially encumbered through a consultant contract, approximately $28,000 remains available and could be redirected to offset costs associated with the preparation of downtown design standards. Additionally, should the City Council elect to defer the R1 Standards, an additional $65,000 allocated within the current fiscal year, but not yet encumbered, could be shifted in order to further offset the additional costs. The remaining cost would be $57,000 and may be achievable through other department savings over the course of the year. Should the City Council elect to defer the Auto Dealer Standards, $103,520 could be rolled over from FY 00/01 and shifted to offset these additional costs; the remaining cost would be $18,480. RECOMMENDATION Staff recommends that the City Council revise the work program for the Planning and Community Development Department by deferring the antenna ordinance update (priority #10) and either (a) the Auto Dealer Standards (#12), or (b) the R1 Standards for Sunset Park & North of Wilshire Neighborhoods (#14), and redirect funds accordingly. - 8 - Prepared by: Suzanne Frick, Director Jay M. Trevino, AICP, Planning Manager Planning and Community Development Department Attachment 1 – Auto Dealer Share of City Tax Revenue F:\PLAN\SHARE\COUNCIL\STRPT\2002\Revised PCD Priorities 10-22-02.doc - 9 -