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SR-400-004-10 (3)~r+ . . City Councii Report ~ City of Santa Monica City Council Meeting: April 11, 2006 Agenda Item: t C To: Mayor and City Council From: Andy Agle, Interim Director, Planning and Community Development Subject: Existing Non-conforming Hotel and Motel Uses in Residential Districts within the Coastal Zone. Recommended Action It is recommended that the City Council introduce for first reading an ordinance modifying Santa Monica Municipal Code (SMMC) Section 9.04.18.040 to allow for the continuation of existing non-conforming hotel and motel uses in residential districts within the Coastal Zone. Executive Summary The owner of the Bayside Hotel at 2001 Ocean Avenue filed an application for a text amendment to allow the hotel to remain in operation beyond September 2008. At the time that the hotel was built, in the early 1950s, the area was zoned R-4, and hotels were permitted. The hotel became legally non-conforming in 1989 when the area was re-zoned to Ocean Park Medium Multiple Family district (OP-3), which does not permit hotels or motels. Santa Monica Municipal Code (SMMC) Section 9.04.18.040 requires the amortization of commercial uses in residential zones within 20 years of the date of 1 adoption (September 1988); therefore, the hotel must be discontinued, removed or altered to a conforming use by September 2008. The applicant proposed Text Amendment 05-004 to modify SMMC Section 9.04.18.040 by adding a new paragraph (j) to allow for the continuation of existing non-conforming hotel and motel uses in residential districts within the Coastal Zone, including the OP-3 district. The hotel and motel uses would remain legal non-conforming. As the ordinance would allow for the continued operation of existing hotels/motels, there are no budget impacts. Discussion Analysis The proposed text amendment applies to non-conforming hoteis and motels that have been continuously operated since prior to the adoption of SMMC Section 9.04.18.040(b), or non-conforming hotels and motels which have been authorized by an Administrative Approval, Development Review Permit, Conditional Use Permit or Development Agreement prior to the date of adoption. The existing non-conforming hotel/motel wou~d be operated in compliance with such approva~ and could not expand or intensify in use. 2 The approval of the attached ordinance wilf aflow owners of legal nonconforming hotels/motels located on residentiafly zoned parcels within the Coastal Zone to continue to operate their facilities if they meet the following criteria: 1} The existing hotel/motel is located on a residentia{ly-zoned parcel within the Coastal Zone (portions of the R2R, R-3, R-4, OP-2, OP-3, RVC, and R2B zoning districts) ; 2) The existing hotel/motel has been in continuous operation since the adoption of SMMC Section 9.04.18.040 (September 1988), or has been authorized by an Administrative Approval, Development Review Permit, Conditional Use Permit or Development Agreement and is being operated in compliance with such approval; and 3) The hotel/motel is not expanded or intensified in use The proposed ordinance will enable the owners of the hotels and mote{s to invest in maintenance and improvements to ensure that their existing hotels and motels will be preserved throughout their useful life. In addition, the continued operation of these hotels and motels will sustain the economic benefits provided to the City from these businesses through taxes and preservation of existing jobs. The approval of the proposed ordinance is consistent with the intent of Proposition S, approved by voters in 1990, which established the Beach Overlay District. Propositian S prohibited new hotels and motels but did not mandate the discontinuation of existing hotels and motels within the Beach Overlay District. If the proposed ordinance is not adopted, the applicant would be required to discontinue operation of the Bayside Hotel by 2008. Although the net loss to the City is unknown, 3 there would be loss of Transient Occupancy Tax (TOT) for the site and loss of any jobs associated with the hotel use. In 2005, the hotel paid approximately $210,000 in TOT, and currently has 12 full time employees, and 9 part time employees. The zoning regulations would require any new use to comply with the permitted uses in the OP-3 residential district. Commission Action On February 15, 2006, the Planning Commission unanimously recommended that the City Council approve the ordinance amendment (Planning Commission staff report and mllluteS: http://santa-monica.org/planning/commission/~endas/pc2006/pa20060215.htm) In forwarding a recommendation to the Council, the Commission found that the amendment is consistent with Land Use Element Objective 1.1 which states that City policies should work to improve the quality of life for all residents by providing a balance of land uses consistent with: ^ Fulfilling the City's role as a regional recreational and business center; and ^ Ensuring the fair treatment of property owners and residents of the City. Alternatives In evaluating the ordinance, staff considered the option of limiting the proposal to the OP-3 area rather than all residential districts in the Coastal Zone, but recommends more inclusive language to allow greater support for the potential benefits of preserving existing hotels that meet these specific conditions. 4 In addition to the recommended action, the Council may: 1) Adopt the proposed ordinance with modified text fanguage, or 2) Disapprove the proposed ordinance. CEQA Status The project is categoricaily exempt from the provisions of CEQA, pursuant to Class 5, Section 15305(a) of the State Implementation Guidelines in that the proposal allows for a minor alteration in land use limitations to permit existing non-conforming hotel and motel uses to remain. Budget/Financial Impact There is no financial impact associated with the recommended action. Prepared by: Sarah D. Lejeune, AICP, Senior Planner 5 Approved: ,- ( Andy Agle Interim Director Planning and Community Development Attachments: Forwarded to Council: A. Proposed Ordinance ATTACHMENT A PROPOSED ORDINANCE f:\atty\muni\laws\barry\baysidehoteltextamend-1.doc City Council Meeting 4-11-06 Santa Monica, California ORDINANCE NUMBER (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTION 9.04.18.040 TO ALLOW THE CONTINUATION OF EXISTING NON-CONFORMING HOTEL AND MOTEL USES IN RESIDENTIAL DISTRICTS WITHIN THE COASTAL ZONE WHEREAS, pursuant to Santa Monica Municipal Code Section 9.04.18 040(b), nonconforming commercial buildings and uses shall be discontinued by September 2008 if the use is not authorized in the zoning district or overlay district in which the building is located; and WHEREAS, the proposed text amendment would authorize legal nonconforming hotels/motels located on residentially zoned parcels within the Coastal Zone to continue to operate if the existing hotel/motel has been in continuous operation since September 1988 or is being operated in compliance with a specified land use permit and the hotel/motel is not expanded or intensified in use; and WHEREAS, on July 28, 2005, the owner of the Bayside Hotel, Darius Nourafshen, filed an application for a text amendment substantively the same as the proposed text amendment; and 1 WHEREAS, the Planning Commission considered the proposed text amendment at a public hearing on February 15, 2006; and WHEREAS, the Planning Commission unanimously recommended that the City Council approve the request as modified by staff; and WHEREAS, the City Council held a public hearing on this proposed Zoning Ordinance Text Amendment on April 11, 2006; and WHEREAS, the proposed amendment is consistent in principle with the goals, objectives, policies, land uses, and programs specified in the adopted General Plan, specifically Land Use Objective 1.1 which provides that the quality of life for all residents should be improved by providing a balance of land uses that are consistent with fulfilling the City's role as a regional recreational and business center, and ensuring fair treatment of property owners and residents of the City in that this amendment permits the continued operation of existing non-conforming hotel/motel uses throughout the useful life of buildings designed for that specific purpose; and WHEREAS, the public health, safety, and general welfare require the adoption of the proposed amendment in that the general welfare of the City is enhanced when the owners of visitor serving hotels and motels are allowed to continue to use of their building throughout the building's useful life and the continued operation of these hotels and motels will continue to provide economic benefits to the City and will preserve lower wage job opportunities to residents and others, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: 2 SECTION 1. Santa Monica Municipal Code Section 9.04.18.040 is hereby amended to read as follows: Section 9.04.18.040. Termination of nonconforming buildings and uses. Nonconforming commercial or industrial buildings and uses in the R1, R2, R2R, R3, R4, RVC, OP-1, OP-2, OP-3, OP-4 and OP-Duplex Districts shall be discontinued and removed or altered to conform to the provisions of this Chapter within the following time limits from the effective date of the ordinance codified in this Chapter: (a) A nonconforming use which does not occupy a structure, other than those uses listed below: one year. (b) All buildings on the property used as a part of a business conducted on the property, except as provided below: twenty years. This subsection does not require the removal of nonconforming buildings if the use occupying the building is authorized in the zoning district or overlay district in which the building is located, either as a permitted use, a conditionally permitted use, a use subject to a performance standards permit, or a use subject to a use permit. (c) Vehicle sales, service, storage and repair buildings and uses shall be permitted to remain provided: 3 (1) The vehicle sales, service, repair and storage buildings are not expanded as provided in Section 9.04.18.020 and the use is not intensified as provided in Section 9.04.18.030. (2) The commerciai parcel supported by the vehicle sales, service, repair and storage buildings is not redeveloped for another use. (d) Automobile storage lots which are used for short or long-term parking of vehicles for sale or lease at an off- site or on-site automobile dealership or for service or repair at an on-site automobile dealership shall be permitted to remain provided: (1) The automobile storage lot is not expanded or enlarged. (2) The commercial parcel supported by the automobile storage lot is not redeveloped for another use. (e) Parking lots on residential zoned parcels shall be permitted to remain provided: (1) The commercial parcel supported by the residential parking lot is not redeve)oped for another use. 4 (2) The lot remains as a surFace level parking lot. (3) The use or uses existing on the commercial parcel supported by the residential parking lot do not change. For purposes of this requirement, a change of use shall be defined as any new use which requires more intense parking standards than exists on the effective date of the ordinance codified in this Chapter. (4) The square footage of the existing commercial building on the commercial parcel is not added to or enlarged beyond fifty percent of the floor area existing on the effective date of this Chapter. (5) The required parking for any new addition or expansion under fifty percent is not located on the residentially zoned parking lot. A parking lot on a residentially zoned parcel shall revert to residential use when one or more of the above conditions are not met. (fl Existing commercial or industrial uses in residential districts with valid conditional use permits that do not contain time limits, except as otherwise provided in this Section, including subsection (i): five years. 5 The Planning Commission may extend the five-year period, but in no case more than ten years, provided the applicant demonstrates that exceptional circumstances prevented the termination of the use. A public hearing shall be conducted in accordance with the provisions for conditional use permits in Part 9.04.20.22. (g) Existing general office, medical office and neighborhood-serving buildings and uses in existence as of 1982 shall be allowed to remain provided the building is not expanded as provided in Section 9.04.18.020 and the use is not intensified as provided in Section 9.04.18.030. (h) Notwithstanding any other provision of this Section, if a conditional use permit or a use permit for an existing commercial or industrial use in a residential district has a specific time period that such conditional use terminates, the use shall terminate pursuant to the permit and not this Section. A limited duration conditional use permit or use permit may be extended or renewed, whether or not the conditional use permit or use permit has already expired, upon a showing that: 6 (1) The use has been in continuous operation since the effective date of the Zoning Ordinance (September 8, 1988); (2) There will be no change, expansion or intensification of the use; and (3) All the findings of fact established in Section 9.04.20.12.040 (conditional use permit) or Section 9.04.20.11.040 (use permit) can be made in an affirmative manner. Before extending or renewing a conditional use permit or use permit, a public hearing shall be conducted in accordance with Part 9.04.20.22. The Planning Commission (or City Council on appeal) may approve, conditionally approve, or deny such an extension or renewal application, in whole or in part. The Planning Commission (or City Council on appeal) may impose such conditions as may be deemed necessary to protect the public health, safety, and general welfare and secure the objectives of the General Plan, including conditions designed to insure compatibility of the existing commercial or industrial use with neighboring residential uses. Notwithstanding the granting of an extension or renewal of a conditional use permit or use permit, the commercial or industrial use shall remain a legal nonconforming use subject to Section 9.04.18.030, and as a 7 nonconforming use, it shall be permitted to continue only so long as the use remains substantially the same type of use as the use of the property on the effective date of the Zoning Ordinance and the basic operational features of the use and its impact on the neighborhood are not altered. (i) Commercial and industrial uses that would otherwise terminate pursuant to subsection (fl of this Section shall be permitted to remain and are not required to be discontinued, removed, or altered to conform to the provisions of this Chapter provided all of the following conditions are met: (1) The building in which the uses are located has been in existence since the effective date of this Chapter (September 8, 1988); (2) The building was specifically designed, approved and built for the commercial or industrial use(s); (3) The building is not demolished or substantially remodeled; (4) The property on which the building is located is adjacent to, or across an alley from, a commercial district; 8 (5) There will be no change, expansion, or intensification of the use; and (6) The conditional use permit has been extended in accordance with this subdivision (6). Before extending a conditional use permit, a public hearing shall be conducted in accordance with Part 9.04.20.22. The findings of fact established in Section 9.04.20.12.040 (b)-(I) shall be made in an affirmative manner. The Planning Commission (or City Council on appeal) may approve, conditionally approve or deny such an extension application, in whole or in part. The Planning Commission (or City Council on appeal) may impose such conditions as may be deemed necessary to protect the public health, safety, and general welfare and secure the objectives of the General Plan, including conditions designed to insure compatibility of the existing commercial or industrial use with neighboring residential uses. Notwithstanding the granting of an extension of a conditional use permit, the commercial or industrial use shall remain a legal nonconforming use subject to Section 9.04.18.030, and as a nonconforming use, it shall be permitted to continue only so long as the use remains substantially the same type of use as the use of the property on the effective date of the Zoning Ordinance and the basic 9 operational features of the use and its impact on the neighborhood are not altered. Notwithstandina subsection 9.04.18.040tb), a hotel or motel located on a residentiallv-zoned aarcel within the Coastal Zone shall be aermitted to remain qrovided that it meets one of the two criteria in subdivision (1) of this subsection Q) and meets the criterion in subdivision (2} of this subsection (j): ~) The hotel or motel either: ~A) has been in continuous operation since September 1988; or (B) the hatel or motel was authorized aursuant to an Administrative Appraval, Development Review Permit, Conditional Use Permit or Development Aqreement approval prior to September 1988 and is bein.g operated in campliance with such approval; and (2) Such hotel or motel is not abandoned as provided in Section 9.04.18.030(b), is not expanded as provided in Section 9.04.18.030(d) and is not intensified as provided in Section 9.04.18.030(e). SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such 10 inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 3. 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 Counci! 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 4. 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: ~ MA HA JO MOUTRIE City A orney 11