Loading...
SR-400-005-01 (8)~~ SEP 2 8 ~20~4, PCD:SF:AS:LBE:F:\PLANiSHARE\COUNCILiSTRPTi2004~Auto Dealerships Study Session.doc Council Mtg: September 28, 2004 Santa Monica, California TO: Mayor and Councilmembers FROM: City Staff SUBJECT: Discussion and Public Hearing Regarding Proposed Policy Revisions Related to Auto Dealership Development Standards in Commercial, Industrial, Residential and Parking Overlay Zones and Discussion of Implementation Options. INTRODUCTION This report recommends that the Council review Planning Commission and staff recommendations regarding changes to the Municipal Code regulations pertaining to auto dealerships in commercial and industrial zones in the City, as well as residential parcels and parcels with Parking Overlay ("A") designations at existing dealerships. The report recommends that the Council hold a public hearing and direct staff to draft an interim ordinance for implementation of revised standards that would apply to auto dealership development pending the overall revision of the Zoning Ordinance. Following Council discussion and direction, environmental review on the proposed amendments will be conducted and the proposed interim ordinance and associated environmental document wili be presented for Council adoption. BACKGROUND Auto dealerships have a long history in the City of Santa Monica, going back as early as the 1920s, with the establishment of Claude Short Dodge and W.I. Simonson Mercedes. By the 1950s and 1960s, a number of other brands were ~EP ~ s zoo~. 1 Qe being sold with dealerships concentrated along a stretch of Santa Monica Boulevard between 9th Street and the City's east boundary. Several used car dealerships and other automotive uses are located in the City, primarily along Lincoln Boulevard, where such uses also extend into the City of Los Angeles. Some Santa Monica auto dealerships pre-date the residential development that now surrounds them, while others pre-date the intensity of that development. The combination of higher density residential development and increasing pressure on dealerships with relatively small land areas has fueled conflict over the years between auto dealerships and the surrounding residents. In February 2001, a group of auto dealers, dissatisfied with the development potential for expansion in their existing locations or in the nearby vicinity, presented the City with a study prepared by the consulting firm Hamilton, Rabinovitz & Alschuler, Inc. (HR&A), (Attachment E). The study outlined the auto dealers' concerns with the Zoning regulations and made specific recommendations for amending the current standards. These recommendations also included proposals for imposing operational requirements that would apply to existing dealerships. Recognizing the economic importance forthe City of retaining these businesses, the Council directed the Planning Division to study the auto dealers' concerns as well as to analyze conflicts with neighboring residential uses. The consultant team of Cotton/Bridges/Associates, Moore lacofano Goltsman, Inc. (for community participation facilitation) and Economics Research Associates (for economic background and analysis), were hired to review the HR&A study, independently 2 evaluate the issues involved and recommend proposals for amending the City's policies regarding automobile dealership uses. The twin goals in this process have been to find workable, meaningful solutions that provide sufficient incentive for dealers to invest in improved facilities, while increasing protection of neighboring residential uses by requiring development and operational standards that mitigate the adverse neighborhood impacts. ANALYSIS Defininq the Issues The report and recommendations prepared by Cotton/Bridges/Associates (Attachment C) expand on the information gathered over the last six months from auto dealers and neighboring residents through a series of ineetings and surveys. The consultant team met individually with owners of new auto dealerships in May 2003 in order to understand automobile dealership operations more fully.. Community meetings were conducted on June 3, 2003, and on October 21, 2003. The first meeting was to obtain an understanding of neighboring residents' concerns and the second meeting was to discuss and obtain comments regarding potential Zoning Ordinance amendments. The issues defined through this community outreach process are summarized in the April 21, 2004 Planning Commission report (Attachment B). 3 Economic Analysis While the HR&A report included a comprehensive analysis of the demands placed on auto dealers due to the economic situation of their industry, staff commissioned an independent study (Attachment C), conducted by Economic Research Associates (ERA) to examine the trends in auto dealerships, in order to make certain that the City's policy development would be based on an unbiased source (Attachment D). ERA confirmed much of HR&A's data regarding the contribution of auto dealerships to the City budget and found that while Santa Monica dealerships have increased revenue over the last few years, it has not increased at the rate experienced in larger auto mall dealerships. The report points to a pressing need for the City to revise its policies in some way in order to retain these businesses and their tax contributions in the coming years. Policy Recommendations The Planning Commission held two hearings (April 21 and June 2) at which they received staff reports and public input. Speakers at the meetings included both auto dealer representatives and City residents. The discussion was completed on June 16, 2004,with recommendations that are summarized below, presenting both the Commission's and staff's recommendations for the Council's consideration. Additional background on each issue is included in the April 21, 2004 Planning Commission report. 4 1. Relocation to Industrial Conservation District (M1) & Light Manufacturing Studio District (LMSD) Planning Commission Recommendation The Commission noted strong opposition to the concept of developing an auto mall in Santa Monica, and did not believe that the option of dealership relocation would have great impact. However, they could foresee circumstances in which it would be acceptable to allow automobile sales, in addition to the repair already permitted, in these industrial zones and favored allowing but not strongly encouraging the use. Therefore, they recommended maintaining the CUP requirement in the LMSD zone and adding the same entitlement in the M1 Zone. Staff Recommendation Staff recommends allowing the automobile sales use in the M1 District through a Performance Standards Permit (PSP) for projects less than 7,500 square feet, and requiring a CUP for developments above this threshold. Staff believes that the M1 zone is at least as appropriate for auto sales as the commercial zones, and should have the same incentives as the commercial zones for auto dealers interested in this possibility. Staff favors this approach as providing more predictability for applicants based on requiring clear performance standards to ensure compatible development. Due to the uncertainty regarding the direction of the LMSD Zone and recent discussions that have taken place on the zone's character, staff agrees with the 5 Planning Commission that the CUP requirement should remain in an Interim Ordinance. Staff agrees with the Commission's concerns regarding auto mall development, which is not compatible with Santa Monica's character. Staff does not believe that allowing some staff-level (PSP) threshold for approval of auto sales development in the M1 Zone will result in the formation of an auto mall due to high land costs and lack of available and suitable property in this zone. 2. Floor Area Ratio (FAR) and Height Limit Adjustments Planning Commission and Staff Recommendation The Commission agreed with staff's recommendation to remove subterranean uses from the FAR calculation as an incentive to develop more subterranean space for auto storage and other dealership activities and to provide flexibility to dealers in utilizing their space. The Commission also agreed that an FAR of 1.5 was sufficient for auto uses. Although their discussion was not specific, staff understands that this recommendation was to apply in the C4, C6, LMSD and M1 zones. Staff recommends allowing a 1.5 FAR for automobile dealerships in all four zones. Staff also recommends allowing a height bonus to permit one additional story for projects that include at least one substantial subterranean level. Height should be stepped up toward the main commercial street and away from residential uses to minimize impacts on residential neighbors. The Commission did not express 6 concern in their discussion regarding this proposal. 3. Rooftop and Stacked Vehicle Parking/Storage Systems Planninq Commission and Staff Recommendation Both staff and the Planning Commission recommend allowing rooftop parking at all dealerships, exempting this use from prohibitions against rooftop parking adjacent to residential uses in the C4 and C6 zones, provided that the rooftop level is screened with a parapet of at least eight feet in height to reduce noise impacts and protect residents' privacy. The height of any rooftop screening should comply with the prevailing Code sections limiting projections above the height limit. In regard to stacked parking systems with mechanical lifts, it is recommended that language be adopted that specifically permits use of these systems for storage, encouraging them in subterranean garages and permitting them with screening and a minimum distance from residential uses if located above ground. 4. Use of parcels in existing dealerships with Off-Street Parking "A" Overlay District designations ("A-Lots") Planning Commission Recommendation Staff and Commission agreed that development of parking structures on Parking Overlay "A" lots that are used in conjunction with existing dealerships should be permitted. It should be noted that this represents a policy shift in relation to "A" lot use specifically to encourage retention of the City's auto dealerships. While staff 7 recommends allowing these structures based on the height of the underlying zoning, as described below, the Commission recommended allowing a maximum of 23 feet regardless of underlying zoning, including screening if rooftop parking is included. The Commission also recommended setbacks for parking structures adjacent to residential uses of 10 feet from the side property line and 20 feet from the rear property line, consistent with the Auto Dealers Task Force recommendation. The Commission specified that substantial landscaping should be provided along the side setback on the residentially abutting side, with security fencing to prevent access to the area. The Commission agreed with staff's recommendation to permit flexibility to use the parking structures permitted through these regulations for any vehicle storage or parking use. At the same time, the Commission expressed support for prioritizing provision of employee parking. Staff Recommendation Staff recommends allowing parking structures on "A" lots to be utilized for either employee and customer parking or auto storage. In order to encourage subterranean development and more efficient "A"-lot use, staff continues to propose allowing auto storage/parking structures subject to the underlying zoning district height limit, in conjunction with development of at least one subterranean floor. The 8 underlying zoning forthese lots is either R-2 or R-3, which limit height forflat-roofed structures to two stories and 23 feet, and three stories and 35 feet, respectively. Staff agrees with the Commission's recommendation to allow rooftop parking on these structures within the height limit, screened with an eight-foot parapet that provides privacy to neighbors on all sides of the building. Staff recommends requiring that "A" lot parking structures comply with the setbacks of the underlying zoning district, with a maximum side setback of 7 feet and landscaping in the areas adjacent to residential uses. As the A-lots are generally 50 feet wide, staff believes that a 10-foot side setback and 20-foot rear setback would impede provision of required vehicle maneuvering area, while providing minimal incremental benefit vis-a-vis the relationship between the structure and the adjacent residential building. In addition, staff is concerned about the security of the wider, open spaces that extended setbacks would create. Staff proposes exempting parking dealership structures from additional multi-family stepback provisions that would present a hardship for parking structure design. Sides of the property abutting commercially zoned properties would not require any setback. 5. Residentially-zoned "R" lots with existing automobile dealership uses Planninq Commission Recommendation Citing a long-term historic use of residentially-zoned lots within auto dealerships, the Planning Commission recommended that these residential lots should be allowed to be further developed for use as parking structures, in the same manner as 9 recommended for "A" lots. The intention would be that these parking structures could only be used for the adjacent dealership and would need to be demolished if the dealership use ceased. One suggestion was that dealers post a bond at the time of construction to be used to finance the demolition. The maximum height to be allowed would be 23 feet, for either two stories or one story with a rooftop level and screening as described above for "A" lots. Staff Recommendation Although staff recognizes that some individual dealers would benefit from more liberal use of their residential lots, staff continues to believe that such entitlement is an undesirable long-term policy, which will permanently erode potential for neighborhood improvement. Furthermore, development of auto sales uses on residential properties is contradictory to the Land Use Element's goals and policies for multi-family areas. In the context of an Interim Ordinance, the Council would need to identify a threat to the public welfare that would justify allowing this inconsistency with the General Plan. Staff, therefore, recommends requiring dealerships with both "A" lots and "R" lots to release the "R" lot in exchange for receiving more development rights on the "A" lot. However, if there are specific circumstances in which development of a dealership's "R" lot(s) would benefit the surrounding neighborhood, the parcels involved could be considered through the Zoning Map Amendment process for Parking Overlay "A" designation. If a parcel is not found to be appropriate for an "A" 10 overlay, it is likewise not appropriate for long-term development of an auto dealership facility. Staff also recommends that when any development is proposed involving a dealership with a residential lot(s) not proposed for removal, then screening, landscaping and other aesthetic improvements on the residentially zoned lot should be required as an approval condition to alleviate some of the noise, light, glare and aesthetic impacts on the neighboring residential uses. 6. Approval Processes Planning Commission Recommendation The Commission embraced the concept of requiring more specific design standards and allowing development up to 7,500 square feet based on a Performance Standards Permit in the C4 and C6 zones. Thereafter, they recommend requiring a Deveiopment Review (DR). However, they recommend that all parking structures on "A" and "R" tots be subject to a DR. Staff Recommendation Staff also recommends allowing staff-level approval through a Performance Standards Permit up to the current DR threshold of 7,500 square feet for the C4, C6 and M1 zones. As explained above, staff does not recommend allowing construction of parking structures in R zones, but in cases in which an "A" overlay- zoned parcel is included within a larger project involving commercially zoned 11 structures, staff recommends the same threshold of 7,500 square feet for staff-level approval. All projects would continue to require Architectural Review Board approval. The City's Urban Designer would review projects at all levels to achieve higher quality design and improve each project's compatibility with the neighborhood. 7. Temporary Use Permits Planning Commission and Staff Recommendation The Commission agreed with staff's recommendation to adopt a process for issuing Temporary Use Permits (TUPs) for auto dealerships in conjunction with issuance of a building permit for redevelopment of an existing auto dealership. Temporary relocation of repair functions would be allowed only in the LMSD and M 1 zones, not adjacent to residences, and the TUP would be valid for long enough to reasonably allow completion of construction, with an opportunity for one 6-month extension. This proposed term of validity is longer than the current Code's allowance for other temporary uses in order to address the unique situation of auto dealerships, which can be temporarily accommodated on a vacant lot with minimal structure and no additional construction. It is recommended to include operational conditions similar to the performance standards established in the Code, and to require temporary sound barriers if the site is within 100 feet of a residential use. Also recommended is a short-term TUP process which would allow quick 12 administrative approval for auto storage in the LMSD and M1 Zones for periods up to three months annually per dealer per location to provide a legal means for the dealers to facilitate the cyclical needs for inventory stock associated with auto dealerships. 8. Enforcement Planning Commission Recommendation While enforcement is a separate issue and not necessarily to be included in the Interim Ordinance, the Planning Commission recommended that the City consider appointing an ombudsperson to investigate complaints regarding auto-related uses (dealerships and repair facilities) that neighbors feel are not properly handled. In response to staff's explanation of the current organization of the Code Compliance Division, the Commission recommended that the City increase publicity regarding how to contact officers specifically assigned to Zoning Ordinance violations, in order to more effectively address violations that impact the surrounding residents' quality of life. IMPLEMENTATION THROUGH AN INTERIM ORDINANCE Automobile dealership standards have been under discussion for well over a year and both auto dealers and their neighbors have developed expectations that these issues would be addressed in the immediate future. The Council's request that staff study the needs of auto dealerships and neighborhood concerns associated with these uses predates the City's plan for a comprehensive review of land use and zoning policies. The General Plan Land Use Element and Zoning Ordinance update 13 process is now underway, and is anticipated to be a two-year project. In light of this situation, both staff and the Planning Commission are recommending that the Council adopt an interim ordinance to immediately revise some regulations, addressing current Code language that has been discouraging long-term investment in this important sector of the local economy for too long and thereby delaying enclosure of operations that would protect surrounding residents. Interim policy would then be reevaluated and refined through the zoning ordinance revision process. BUDGET/FINANCIAL IMPACT The recommendation presented in this report does not have any budget orfinancial impact. RECOMMENDATION It is recommended that the Council hold a public hearing and direct staff to conduct environmental analysis in compliance with the California Environmental Quality Act (CEQA) and prepare an interim ordinance to implement revised policy regarding automobile dealerships. Prepared by: Suzanne Frick, Director Amanda Schachter, Planning Manager Elizabeth Bar-EI, AICP, Associate Planner City Planning Division 14 Attachments: A. Notice of Public Hearing B. April 21, 2004 & June 2, 2004 Planning Commission staff reports C. Policy Recommendation Report, prepared by Cotton Bridges Associates D. Economic Background Report, prepared by Economic Research Associates E. HR & A Report, 2001 15 ATTACHMENT A NOTICE OF PUBLIC HEARING NOTICE OF A PUBLIC HEARING BEFORE THE SANTA MONICA CITY COUNCIL SUBJECT: Public Hearing of Proposed Revised Auto Dealership Standards The City Council will hold a Public Hearing on Proposed Policy Revisions Related to Auto Dealership Development Standards in Commercial, Industrial, Residential and Parking Overlay Zones and Discussion of Implementation Options. DATE/TIME: TUESDAY, September 28, 2004, AT 6:45 p.m. LOCATION: City Council Chambers, Second Floor, Santa Monica City Hall 1685 Main Street, Santa Monica, California HOW TO COMMENT The City of Santa Monica encourages public comment. You may comment at the City Council public hearing, or by writing a letter. Written information will be given to the City Council at the meeting. Address your letters to: City Clerk Re: Auto Dealership Standards 1685 Main Street, Room 102 Santa Monica, CA 90401 MORE INFORMATION If you want more information about this project or wish to review the project file, please contact Elizabeth Bar-EI, AICP, at (310) 458-8341, or by e-mail at elizabeth-bar-el@santa-monica.org. The Zoning Ordinance is available at the Planning Counter during business hours and on the City's web site at www.santa-manica.orq. The meeting facility is wheelchair accessible. For disability-related accommodations, please contact (310) 458-8341 or (310) 458-8696 TTY at least 72 hours in advance. All written materials are available in alternate format upon request. Santa Monica Big Blue Bus Lines numbered 1, 2, 3, 5, 7, 8, 9, and 10 serve City Hall. Pursuant to California Government Code Section 65009(b), if this matter is subsequently challenged in Court, the challenge may be limited to only those issues raised at the public hearing described in this notice, or in written correspondence delivered to the City of Santa Monica at, or prior to, the public hearing. ESPAIVOL Esto es una noticia de una audiencia publica para revisar applicaciones proponiendo desarrollo en Santa Monica. Si deseas mas informacion, favor de Ifamar a Carmen Gutierrez en 1a Divisi6n de Planificacibn al numero (310) 458-8341. APPROVED AS TO FORM: ..wd~~. ~/ 1'n ~~(1 !' ~ AMANDA SCHACHTER Planning Manager F:\PLANISHARE\COUNCIL\NOTICES~2004~Auto Dealers Study Session.doc ATTACHMENT B APRIL 21, 2004 & JUNE 2, 2004 PLANNING COMMISSION STAFF REPORTS ~:_~ ORC~~NAL ~ , 7-A CP:AS:LBE:F:IPLAN\SHARE\PC\STRPT~03Wuto Dealer Standards Study Session. doc Planning Commission Mtg: April 21, 2004 Santa Monica, Ca{ifornia TO: The Honorable Planning Commission FROM: Pianning Staff SUBJECT: Study Session to Review and Comment on Proposed Policy and Zoning Ordinance Revisions Related to Auto Dealership Development Standards in Commercial, Industrial, Residential and Parking Overlay Zones. INTRODUCTION This report recommends that the Planning Commission conduct a study session to review and comment on recommendations regarding changes to the Municipal Code regulations pertaining to auto dealerships in commercial and industrial zones in the City, as well as residential zones with Parking Overlay ("A") designations. The report recommends that the Commission review staff's recommended policy changes and provide comments for City Council consideration. Following Council discussion and direction, environmental review on the proposed text amendments will be conducted. The proposed ordinance and associated environmental document will then be presented for Commission consideration and Council adoption. BACKGROUND Auto dealerships have a long history in the City of Santa Monica, going back as early as the 1920s, with the establishment of Claude Short Dodge and W.I. Simonson Mercedes. By the 1950s and 1960s, a number of other brands were being sold with deaferships concentrated along a stretch of Santa Monica Boulevard between 9t" Street and the City's east boundary. Several used car dealerships and other automotive uses are located in the City, primarily along Lincoln Boulevard, where such uses also extend into the City of Los Angeles. Some Santa Monica auto dealerships pre-date the residential development that now surrounds them, while others pre-date the intensity of that development. The higher density residential development and increasing pressure on dealerships with relatively small land areas has intensified the points of conflict between surrounding residents and the auto dealerships. Over the years, the City has received regular complaints regarding dealership operations specifically with regard to the use of alleys, noise, lighting, glare, off-loading inventory, test-driving, repair work and customer and employees parking on residential streets. The overall parking shortage in the vicinity of the auto dealerships has given rise to conflicts over use of street parking, resulting in the creation of many permit-parking zones in the residential streets adjacent to Santa Monica Boulevard. City staff has also heard on many occasions that neighbors are dissatisfied with the responses to their complaints from City Police and Code Compliance. Often, complaints are hard to document because the source of the disturbance is no longer present when officers arrive. The auto dealers have similarly been dissatisfied with the development potential for expansion in their existing locations or in the nearby vicinity. In February 2001, a group of auto dealers presented the City with a study prepared by the consulting fiirm Hamilton, Rabinovitz & Alschuler, Inc. (HR&A). The study outlined the auto dealers' concerns with the Zoning regulations and made specific recommendations for amending the current standards. These recommendatior~s also included proposals for imposing operational requirements that would apply to existing dealerships. Recognizing the economic importance for the City of retaining these businesses, the Council directed the Planning Division to study the auto dealers' concerns as well as to analyze conflicts with neighboring residential uses. The consultant team of Cotton/Bridges/Associates, Moore lacofano Goltsman, Inc. (for community participation facilitation) and Economics Research Associates (for economic background and analysis), were hired to review the HR&A study, independently evaluate the issues involved and recommend proposals for amending the City's policies regarding automobile dealership uses. The finrin goals in this process have been to find workable, meaningful solutions that provide sufficient incentive for dealers to invest in improved facilities, while increasing protection of neighboring residential uses by requiring development and operational standards that mitigate the adverse neighborhood impacts. ANALYS I S Defining the Issues The report and recommendations prepared by Cotton/Bridges/Associates (Attachment B) expand on the information gathered over the last six months from auto dealers and neighboring residents through a series of ineetings and surveys. The consultantteam met individually with owners of new auto dealerships in May 2003 in order to understand automobile dealership operations more fully. Community meetings were conducted on June 3, 2003, and on October 21, 2003. The first meeting was to obtain an understanding of neighboring residents' concerns and the second meeting was to discuss and obtain comments regarding potential Zoning Ordinance amendments. Additionally, auto dealer focus group meetings were conducted on October 9, 2003 to discuss preliminary concepts for Zoning Ordinance amendments. Economic Research Associates (ERA) has prepared an economic analysis (Attachment C) that examines the trends in auto dealerships, comparing Santa Monica's situation with other jurisdictions in which dealerships are located. This input has focused and refined the issues that staff's policy recommendations aim to address. Neighborhood issues that were widely cited at the two community meetings and in surveys and letters include: o Misuse of Alleys: Test-driving, deliveries, unkempt trash, car repair and double- parking, and speeding. o Parking Conflicts: Inadequate on-site customer and employee parking leading to use of residential street parking by employees and customers. Some of this has been alleviated through permit parking districts, but some districts have not been approved 2 ;~ ''~ and there are reports of employees obtaining guest parking passes. o Noise Impaats: Car alarms, music, loud speakers, mechanical equipment (particularly compressor-driven tools); lack of adequate noise barriers between dealerships and residential areas; noise from idling delivery trucks. o Impacts during vehicle deliveries: Delivery trucks left running while offloading vehicles; side streets blocked/impeded by delivery trucks; unconcerned delivery staff; defiveries during evenings and weekends. o Rude employee behavior: Employees undertaking disruptive activities, speeding in alleys and exhibiting disrespect to protesting neighbors; lack of follow-up from dealership management when informed. o Visual impacts/lighting: Nighttime glare into residential units; some lighting impacts have been abated through removal of lights, but conflicts remain, especially where residential windows are oriented toward open vehicle storage lots. o Problems in enforcement of regulations: City not responsive in enforcing rules; many incidents happen at night; police do not respond and say that it is not a priority. Santa Monica auto dealership owners' concerns were generally centered on the challenges they face in adapting to the dynamic business climate surrounding auto sales. o Facility-related concerns: Santa Monica facilities are smaller than those of newer dealerships in other parts of LA County, which are preferred by manufacturers; dealers cannot fit all of their sales stock on-site and must patch together a network of off-site locations for auto storage; dealers are concerned about their ability to maintain long-term business viability within present facilities; dealers need to increase repair capabilities because new car sales are a large part of dealership volume, but profits are in repair; redevelopment of a dealership places a temporary burden on the business during construction and the Zoning Code does not allow for issuance of temporary use permits to keep the business going during construction. o Trends to foilow: Consolidation of deaferships into large chains selling several brands of cars; district branding to create identifiable "auto rows," such as in Van Nuys and Glendale, allowing dealerships to advertise together and offer shopping convenience; the unknown impact of internet sales potential; local competition anticipated from Culver City, Hawthorne, Carson, and for some brands, Glendale and the San Gabriel Valley; incorporation of rental agencies within dealerships; growing product lines and "spin-off' brands; manufacturers requirements for updated signage and improved building appearance to improve the brand's image. Within this shifting environment, the dealers have viewed the Zoning Code and the City's planning and building processes as too restrictive, confusing, time-consuming, and lacking incentive to encourage them to invest in site improvements. 3 ~ Economic Analvsis >~# While the HR&A report included a comprehensive analysis of the demands placed on auto dealers due to the economic situation of their industry, staff commissioned an independent study (Attachment C), conducted by Economic Research Associates (ERA) in order to make certain that the City's policy development would be based on an unbiased source. ERA confirmed much of HR&A's data regarding the contribution of auto dealerships to the City budget and found that while Santa Monica dealerships have increased revenue over the last few years, it has not increased at the rate experienced in larger auto mall dealerships. The report points to a pressing need for the City to revise its policies in some way in order to retain these businesses and their tax contributions in the coming years. Parkinq Requirements The Zoning Code requires automobile sales uses to provide parking as follows: 1 space per400 sq. ft. offloorarea forshowroom and office, plus 9 space per2,000 sq. ft. of exterior display area and requirements for automobile repair where applicable (2 spaces per service bay), plus 1 space per 300 sq. ft. for the parts department. There is no parking requirement associated with interior automobile storage areas that are off-limits to customers. Policv Recommendations Staff's objective in this review of auto dealership standards has been to find policy solutions that offer more predictability and incentive for Santa Monica auto dealerships to redevelop or relocate their sites within the City. The policy recommendations are intended to balance the needs of auto dealers and residents by allowing the dealers to maintain competitive, viable businesses while reducing or eliminating adverse impacts that nearby residents experience, including parking, traffic, noise, light and glare. The HR&A report concluded that the Zoning Ordinance must be revised to allow a significant increase in FAR and height limits, as already permitted in the General Plan, in order to meet the spatial needs of auto dealerships. CBA provides a spatial analysis based on developing a hypothetical 30,000 square foot auto dealership that provides inventory storage area to meet industry standards. Also examined is the need for increased FAR in combination with a policy shift encouraging subterranean development. While CBA has reached similar conclusions to HR&A regarding the need for more floor area on dealership parcels, their study shows that dealership needs can be met through encouraging subterranean development along with a smaller increase in allowable FAR and height limits. The recommendations would result in revisions to the City's zoning policies to provide incentive for investment in new facilities that will improve the City's commercial corridors where these uses are clustered, while providing benefit to adjacent residentiaf neighborhoods. Staff requests that the Planning Commission review the policy recommendations and forward comments to City Council regarding the following issues: 4 ~: e, • Relocation to Industrial Conservation District (M1) & Light Manufacturing Studio District (LMSD) • Floor Area Ratio (FAR) and Height Limit Adjustments • Rooftop/Stacked Vehicle Inventory Storage • Use of parcels in existing dealerships with Off-Street Parking "A" Overlay District designations ("A-Lots") ° • Residentially-zoned "R" lots with existing automobile dealership uses • Approval Processes • Temporary Use Permits 1. Relocation to Industrial Conservation District (M1) & Light Manufacturing Studio District (LMSD) Currently, auto sales are not permitted in the M1 District and require a CUP in the LMSD. Staff proposes to allow auto dealerships in both of these zones and to raise the threshold for permitting them through a Performance Standards Permit (PSP) to streamline the process. Staff proposes to allow height levels and floor area ratios (FAR) in these two zones that would exceed the FAR to be permitted in the C4 and C6 zones as an incentive to relocate to the LMSD and M 1 Districts. To the extent that existing dealerships are able to relocate from the C4 district along Santa Monica Boulevard, the Santa Monica Boulevard parcels will then become available to allow higher quafity dealership redevelopment or new development for other uses. The benefits for residents would thus be experienced both in relationship to the M1/LMSD development, located sufficiently distant from residential uses, and in the commercial zones, where a new development would be required to meet contemporary standards to mitigate impacts on surrounding uses. Some of the impacts to the residential neighborhood that would be eliminated or substantially reduced include noise, light, glare, aesthetics, and use of residential on-street parking for auto dealership customers and employees. There are already examples of dealerships that have moved their repair functions to locations in the M1 Zone, and other potential relocations that auto dealers have discussed with Planning staff. As this alleviates the impacts on residential neighbors of commercially zoned dealerships, staff recommends Code changes that will further facilitate th~ese requests. 2. Floor Area Ratio (FAR) and Height Limit Adjustments Under the current Code, subterranean parking areas are not included as floor area, but other subterranean uses, such as repair, storage and preparation/detailing, are counted fu{ly in determining the project's FAR. In order to encourage more development of subterranean levels for all uses, staff recommends excluding all subterranean areas from FAR calculations. The dealership could utilize subterranean areas for any function, including employee/customer parking, vehicle storage, vehicle preparation and auto repair. In conjunction with this policy, some increase in FAR in the C-4 Zoning District is still required as an incentive to develop an auto dealership facility that will meet all needs on- site. Table 3 in the CBA report identifies spatial needs for sales activities, repair, parking and storage for a prototypical dealership under different scenarios. Significantly less above 5 . ~# ) grade FAR was needed when activities are encouraged to be underground; however, some increase in allowable FAR for above-ground development is still required. Based on this information, staff believes that a 1.5 FAR in both the C4 and C6 Zones is justified. Staff believes that an FAR increase of this scale will provide the opportunities for expansion needed without impacting on neighboring properties because it is still relatively low density. In regard to height, staff recommends allowing a height bonus for projects that include at least one substantial subterranean leve{. Height should be stepped up toward the main commercial street and away from residential uses to minimize impacts on residential neighbors. 3. Rooftop/Stacked Vehicle Inventory Storage The current auto dealer standards permit rooftop vehicle storage, discounted by 50% in FAR calculations. However, specific C4 and C6 Zone provisions prohibit rooftop parking adjacent to a residential parcel or to an alley that separates residential from commercial uses. As a result, many dealerships are unable to apply this development standard. Rooftop parking that is close to a residential property line and not properly screened may impact adjacent residential uses. However, rooftop parking also offers an opportunity to provide more parking that is relatively inexpensive for a new development. Further, screening that bfocks rooftop views and ensures residential privacy combined with setbacks can mitigate its impacts. Since it appears that even dealerships that provide Code-compliant parking often need additional parking for their employees, staff recommends allowing rooftop parking at all dealerships. Such parking would be designated for customer and employee parking that exceeds the minimum Code parking requirement. The regulations prohibiting rooftop parking have been interpreted to include stacked parking systems with mechanical lifts because the Code does not include specific reference to these systems. As they are becoming more widespread in use for vehicle inventory starage, staff recommends adopting language that specifically refers to use of these systems for storage, encouraging them in subterranean garages and permitting them with screening and a minimum distance from residential uses if located above ground. 4. Use of parcels in existing dealerships with Off-Street Parking "A" Overlay District designations ("A-Lots") "A-lots" are parcels that are zoned for residential use, but are permitted to be used for off- street parking in connection with an adjacent commercial business. "A" lots have served to widen the commercial corridors along Santa Monica and Wilshire Boulevards and to a lesser extent along Montana Avenue and Lincoln Boulevard to satisfy the increasing demand for parking. Very limited development is allowed on these lots, which has discouraged any investment or improvement. However, this additional parcel area has become an integral part of the auto dealerships that have A-Iots, particularly since the dealerships generally do not have alternatives for expansion in commercia{ly zoned {and. While commercially zoned parcels are often separated from residential uses by alleys, A- 6 lots always abut residential properties, resulting in the potential for direct impact on an adjacent residential use. Recommendations to expand development opportunities on these lots focus on providing incentives for dealers balanced with standards to reduce impacts and improve the quality of life in the neighboring residential area. Staff recommends allowing both parking and auto storage in parking structures on "A" lots, in conjunction with dealership redevelopment. In order to encourage subterranean development and more efficient "A"-lot use, staff proposes to allow auto storage/parking structures, subject to the underlying zoning district height limit, in conjunction with at least one subterranean floor on the A-lot. The underlying zoning for these lots is either R-2 or R- 3, which limit height for flat-roofed structures to two stories and 23 feet, and three stories and 35 feet, respectively. Since "A" lots are typically 50 feet wide, it is likely that an "A"-lot subterranean level would be developed together with a subterranean level on the adjacent commercial lot. Staff suggests allowing both enclosed upper levels and a rooftop level for parking structures, provided that rooftop levels are screened with a parapet that provides privacy to neighbors on all sides of the building. Development on "A" lots would require setbacks equal to the required front setback of the underlying residential zone, with a design that is compatible as a transition to the neighborhood. Further, substantial landscaping would be provided along the side setback on the residentially abutting side, with landscaping and screening to provide a greater buffer between the uses. The commercial side would not require a setback. 5. Residentially-zoned "R" lots with existing automobile dealership uses In addition to A-lots, some dealerships have residentially-zoned parcels within their site areas that are not Parking Overfay Zones and extend deeper into the adjacent residential neighborhood. Section 9.04.18.040, which calls for termination of non-conforming uses, provides an exception for these lots associated with auto dealerships, allowing them to remain provided that they are not expanded or enlarged and continue to serve an on-going commercial use. Any policy change allowing further development of these residential parcels would contradict the City's General Plan, including the recently adopted Housing Element, which seeks to preserve and expand opportunities for housing in the City. Past policies have not succeeded in removing non-conforming auto uses from residential land. Staff believes that allowing dealerships with both "A" lots and "R" lots to release the "R" lot in exchange for receiving more development rights on the "A" lot would benefit both dealerships and the community. Dealership activities would be concentrated on commercial land and "A"-lot parcels while the "R" lot would lose its non-conforming status and revert to residential use. New residential structures should be designed to function compatibly with adjacent auto dealerships, including providing extra insulation to protect residents from noise. For development proposals involving a dealership with a residential lot that does not take advantage of the A-zone incentives and remove the dealership from the residential zone, staff recommends requiring screening, landscaping and other aesthetic improvements on the residentially zoned lot to alleviate some of the noise, light, glare and aesthetic impacts on the neighboring residential uses. 7 ,~ ~ i 6. Approval Processes Tabie 4 in the CBA report summarizes the approval processes for establishing or expanding an auto dealership in commercial zones. Staff recommends coordinating and clarifying Code regulations and increasing the threshold for development through administrative approval in the C4,~ C6, LMSD and M1 Zoning Districts. A higher administrative threshold would benefit smaller dealerships, enabling site improvements based on more specific performance standards that are appropriate for smaller projects. In the C5 district, the other commercial zone that allows auto dealerships, staff suggests that the CUP requirement should remain because this district primari~y functions as a concentration of iarge-scale office uses. Therefore, a closer review of a dealership's operation and design through the discretionary process to evaluate compatibility is warranted. Staff recommends defining two levels of auto dealership standards applicable to projects. Smaller projects that require a PSP would have operational and physical requirements that are specific, relatively simple to retrofit, and would absorb impacts of any new construction. Projects exceeding the discretionarythreshold would need to complywith those standards as well as other development standards designed to mitigate a larger project's impacts on surrounding uses. All projects would continue to require Architectural Review Board approval. The City's Urban Designer would review projects at all levels to achieve higher quality design and improve each project's compatibility with the neighborhood. Automobile dealerships are unique in that parking spaces are needed for both parking and inventory storage. However, although the spaces may look the same, they must be utilized for the purpose that is reflected in a project's site plan and conditions of approval. There have been cases in which an approved site plan has indicated that an area is to be used for employee and customer parking and, over time, a dealership has begun to utilize that space for vehicle inventory storage. Converting parking into inventory storage violates permit conditions and on a practical level reduces parking for customers and employees, intensifying the competition for street parking. Dealers have expressed concern that their proposals for small site modifications might trigger loss of grandfathered non-conforming rights and require a public hearing. Relocation of uses within the boundaries of an existing dealership, including both commercially and residentially-zoned (A-lot) portions, with no associated construction, should be allowed through administrative approval as long as required on-site parking is maintained in the revised site plan and administrative development standards are met. This might include relocation of certain high-impact activities, such as auto repair and preparation, provided that these uses are relocated farther away from residential uses. Auto dealers have requested this kind of flexibility, and staff believes that an administrative process should be offered. 7. Temporary Use Permits Staff recommends adopting a process for issuing Temporary Use Permits (TUPs), allowing the repairfunction in the LMSD and M1 zones only, forauto dealerships in conjunction with issuance of a building permit for redevelopment ofi an existing auto deafership. Staff 8 -..,. } ~.,.., %, proposes that the TUP be valid for long enough to reasonably allow completion of construction, with an opportunity for one 6-month extension. Operational conditions similar to the perFormance standards established in the Code should be specified, and temporary sound barriers should be required if the site is within 100 feet of a residential use. Also recommended is a short-term T.IJP process would allow quick administrative approval for auto storage in the LMSD and M1 Zones for periods up to three months annually per dealer per location to provide a means for the dealers to facilitate the cyclical needs for inventory stock associated with auto dealerships. 8. Enforcement The auto dealership performance standards and conditional use standards adopted in 1988 included a requirement for existing auto dealerships to submit operational plans for City approval addressing loading, alley use and test driving. Additionally, all dealerships were required to comply with new noise control requirements within six months of Ordinance adoption. The City implemented the noise control provisions by prohibiting the use of loudspeakers at auto dealerships, working with dealers to utilize equipment that is either less noisy or is muffled with sound absorbing materials, and restricting the hours during which noisy equipment may be used to 8:00 a.m. - 6:00 p.m., as specified in SMMC 9.04.12.040 (m). The elimination of loud speakers was mentioned several times at the neighborhood meetings as a noticeabie improvement. Most noise complaints were refated to after-hours unloading of automobile inventory on residential streets and to the lack of police response when complaints were registered. In 2000, the Transportation Management Division actively pursued compliance of all existing new and used auto dealers with the requirement to submit test-driving routes for approval. Dealers are required to then utilize only their approved operational routes. Over twenty of these plans were approved, representing many but not all auto sales establishments. Based on residents' testimony during this community process, it is clear that many of the neighborhood impacts that led to the establishment of Code operational requirements and their retroactive application to all dealerships still exist. In an effort to address this situation, City Planning staff has been working with both Transportation Management and Code Enforcement staff to enforce the requirement for using City-approved test-driving plans. Letters were sent in late November to all dealerships reaffirming the Code requirements, with Code Enforcement follow-up in the last few months. Staff believes that many residential complaints can be resolved or substantially addressed through improved enforcement of the current Code. It does not appear necessary to recommend any revised requirements to the Code's operationa{ standards. RECOMMENDATION It is recommended that the Planning Commission conduct a study session on the proposed 9 ' ' .~ policy revisions and provide comments for Council consideration. Following Council review, environmental analysis in compliance with the California Environmental QualityAct (CEQA) and proposed ordinance amendments will be presented for Planning Commission and Council action. Prepared by: Elizabeth Bar-E1, AICP, Associate Planner Attachments: A. Notice of Public Hearing B. Policy Recommendation Report, prepared by Cotton Bridges Associates C. Economic Background Report, prepared by Economic Research Associates D. HR & A Report, 2001 10 CP:AS:LBE:F:\PLAN\SHARE\PC\STRPT1041Auto Dealerships Continued Study Session.doc Pianning Commission Mtg: June 2, 2004 Santa Monica, California TO: The Honorable Planning Commission FROM: Planning Staff , SUBJECT: Continued Study Session to Review and Comment on Proposed Policy and Zoning Ordinance Revisions Related to Auto Dealership Development Standards in Commercial, Industrial, Residential and Parking Overlay Zones (Continued from April 29, 2004) INTRODUCTION This report recommends that the Planning Commission complete its study session on proposed changes to Zoning Ordinance policies regulating auto dealerships in the City and make recommendations to the City Council. Following Counci{ discussion and direction, staff will conduct environmental review on the proposed text amendments. The proposed ordinance and associated environmental document will then be presented for Commission consideration and Council adoption. BACKGROUND On April 21, 2004, the Commission heard presentations from staff and the City's consultants regarding recommendations on policy changes pertaining to auto dealerships in commercial and industrial zones in the City, as well as residential zones with Parking Overlay ("A") designations. The Commission also heard testimony from twelve members of the public, including both auto dealers and nearby residents. In the discussion that followed, the Commission gave some feedback on the proposals and indicated that some of the study's recommendations should be reviewed comprehensively along with upcoming efforts to revise the General Plan Land Use Element and the Zoning Ordinance. Some additional information regarding "A" lots and coordination with the East- West Parking Corridor Task Force was requested and the hearing was continued. ANALYSIS East-West Parking Corridor Task Force Planning & Community Development staff have coordinated the issues overlapping this Task Force's work and the Auto Dealers standards study for the last nine months. Although the recommendations may vary slightly, staff's conclusion is that the auto dealerships should be allowed same developrrient opportunities on the "A" lots to provide enclosed auto storage. This approach 1 differs from the recommendation regarding other "A" lots that are not associated with auto dealerships. The General Plan allows parking structures to be developed on "A" lots, which could be used for auto storage, so this proposal is consistent with the General Plan. Due to the particular visual and noise impacts of the auto dealerships on adjacent uses, staff believes it is appropriate to make this exception. , Availabilitv of LMSD/M1 Proqerties Staff conducted a windshield survey of the current conditions in these two zones to identify potentiaf reiocation sites for dealership and repair activity. It is assumed that sales facilities require both visibility from a major corridor (such as Olympic Boulevard or Colorado Avenue) and sufficient area to accommodate subterranean storage, ground floor display, sales offices and repair facilities. Repair functions, with sales remaining at existing C4 locations, require less visibility. Therefore, more potential compatible sites exist. From the survey, it appears that there is some current potential in both the M1 and LMSD zones for dealership location and even more for repair functions, which, it should be noted, is already permitted and found in both zones. Staff will present a slide show i{{ustrating the types of sites available in these zones at the Commission meeting. In both zones, and particularly in the M1 zone, there are many sites with surFace activities and low-scale buildings that currently are not developed for their highest and best use. Allowing auto dealership as a permitted use in the M1 zone with additional FAR as an incentive is proposed in order to encourage auto dealers to locate suitable sites and possibly combine parcels for development. The proposal would enhance development opportunities, which are based on many factors in addition to zoning, such as land cost, availability, and industry trends. Auto Dealerships with "A" and/or "R" Lots The Commission requested further information regarding specific dealerships that include parking overlay "A" lots or residentially zoned lots. Attachment D contains a table showing that out of 21 facilities associated with auto dealers, there are eight that have "A" lots, ten that have "R" lots, and six that have both. Coordination with Land Use Element/Zoninq Ordinance Revision When the Council requested that staff study the needs of auto dealerships and neighborhood issues associated with these uses, the City did not have plans for a comprehensive review of land use and zoning policies. Since that time, the Council has indicated an interest in initiating a comprehensive Land Use Element and Zoning Ordinance update. This project has been included in the Division's Workplan Priorities, which Council will consider during the May budget hearings. It is anticipated that the Land Use Element and Zoning Ordinance Updates will be a two-year project. Staff agrees with the Commission that the automobile 2 dealership standards and Land Use Element/Zoning Ordinance efforts should be coordinated in order to ensure a comprehensive evaluation of the policy issues. However, the policy study identified automobile dealer and neighborhood concerns that may require more immediate attention. The Councii asked staff to consider changes to the auto ~ealership standards because current Code language has been discouraging long-term investment in this important sector of the local economy. ln light of the recent community input on this issue, staff suggests considering incorporating some of the policy recommendations into an interim ordinance. In turn, this ordinance could be incorporated into the final zoning ordinance and amended as needed to be consistent with the revised Land Use Element. Interim Measures in the LMSD and M1 Zones Auto repair, the activity within dealerships that generates the most complaint from nearby residents, is already a permitted use in the LMSD Zone and auto dealerships are already conditionally permitted in this zone. The policy study recommends creating a threshold for administrative approval of automobile dealership development in the LMSD Zone. As discussed at the April 21 meeting, the Commission and Council are currently considering the appropriateness of allowing housing development in the LMSD Zone, a policy shift that could conflict with encouragement of auto dealerships. These issues will be evaluated thoroughly in the Land Use Element Update. Considering the policy study's recommendation to facilitate automobile dealership development in the LMSD Zone in order to shift uses from the commercial corridors, staff requests that the Commission provide direction regarding interim measures that would be appropriate in this zone. In regard to the M1 Zone, the policy study also recommends encouraging automobile sales by establishing the use as permitted through an administrative process. As in the LMSD Zoning District, auto repair is already permitted in the M1 zone, although auto sales are not permitted. Staff requests the Commission's direction regarding introducing automobile sales as a new use in the M1 Zone through an interim ordinance, either as permitted or conditionally permitted (CUP). Interim Measures in the Commercial and Parkinq Overlay Zones Staff recommends incorporating some of the policies proposed for the C4 and "A" Zones into an interim ordinance to encourage investment in the next few years that would benefit the businesses and offer improved neighborhood protection. In particular, any measures that could help automobile dealers develop subterranean levels, enclose storage and other activities, decrease reliance on off-site storage and utilize new technology for stacked parking with appropriate screening should not be delayed. The City could evaluate the effectiveness of the new policies and adjust them as necessary during the Zoning Ordinance Revision process. 3 Santa Monica Auto Dealers Association Response Following the April 21 study session, the Auto Dealers Associate distributed a letter to both staff and the P{anning Commission with their response to proposed policies (Attachment E). The response focused generally on the dealers' desire for more liberalized use of their properties in the C4 and C6 Zones as well as their properties in residential zones and on residential/parking overlay "A" lots. A major point of disagreement involves staff's recommendation to allow parking structures on "A" lots and increase their capacity to meet the dealerships' needs but not to extend this entitlement to residential lots without parking overlay designation, which staff suggests should be removed from commercial use as a development condition for the rest of the dealership. Although staff recognizes that some individual dealers would benefit from more liberal use of their residential lots, staff continues to believe that such entitlement is an undesirable lor-g-term policy, which will permanently erode potential for neighborhood improvement. However, if there are specific circumstances in which development of a dealership's "R" lot(s) would benefit the surrounding neighborhood, the parcels involved could be considered through the Zoning Map Amendment process for Parking Overlay "A" designation. If a parcel is not found to be appropriate for an "A" overlay, it is likewise not appropriate for long-term development of an auto dealership facility. While staff does not necessarily disagree with the dealers' point that they could utilize "A" lot structures for dealership uses other than parking and storage without impacting adjoining residents, staff did not recommend such use because it would be inconsistent with the City's General Plan as it relates to parking overlay districts. Further consideration of this issue should be folded into the Land Use Element evaluation and revision. The dealers' proposed "fourth alternative" involving a new automobile dealership overlay district relates to the process for incorporating policies into the Code and Zoning Map rather than to the substance of such change. Since at this time staff is recommending an interim solutian, staff suggests that consideration of additional overlay districts be incorporated into the comprehensive review process. RECOMMENDATION It is recommended that the Planning Commission complete its study session on the proposed policy revisions and provide comments for Council consideration. If directed by Council, staff would then prepare an interim ordinance and associated environmental analysis in compliance with the California Environmental Quality Act (CEQA). 4 Prepared by: Elizabeth Bar-EI, AICP, Associate Planner Attachments: A. Staff Report dated April 21, 2004 B. Notice of Public Hearing o, C. Summary of Commissioners comments at April 21, 2004 hearing D. Table: Location of "A" and "R" Lots at Existing Automobile Dealerships E. Auto Dealerships Association Response, dated May 11, 2004 5 <~, Attachment C: Summarv of Commissioners' Comments, April 21 Studv Session Commissioner Johnson: • Look at master zoning in LMSD / M-1 districts, consider segmenting the zone for uses such as housing, automobiles uses and light manufacturing; • Automobile rental function should be included as a permitted use; • Should provide strong incentives for off-site repair services away from SM Blvd. showrooms; • Encourage subterranean parking; • Encourage "front-end" public process and meetings with neighbors; • Need to be flexible and offer multiple alternatives. Commissioner Pugh: • Automobile sales are often "open-air yard sales" - dealers need to find better, more up-to-date and sophisticated ways to display and store inventory; • There are cost issues in building subterranean and sometimes difficulty in trying to dig under an existing building; • Incentive for subterranean parking might be permitting the connection of subterranean parking between lots under alleys; • Expressed concern regarding rooftop parking for automobile dealerships because adding the needed screening would result in the appearance of a three-story building; • Automobile showrooms needs greater interior ceiling height; • Agrees that residentially zoned lots should be returned to residential use when possible. Commissioner Hopkins: • Supports above comments including the segmented zoning proposed by Commission Johnson for the LMSD; • Supports subterranean parking and would encourage incentives for developing two levels; • Expressed concern regarding public process; concerns regarding uncertainty for auto dealers should be balanced with opportunities for public to address concerns; suggested that an appeal process be added for administratively approved permits. Commissioner O'Day: • Concerned about auto dealers reaction to the proposed incentives; • Requested the following: a map of improved properties along the corridors; • Other expansion opportunities on Santa Monica Boulevard; • Dealers should be encouraged to increase inventory size on-site; • Retain maximum flexibility; • Create a fourth option as suggested by Mr. Harding; • Agreed with subterranean parking incentives; • Must consider potential height impacts on residents in relation to current problems. d Commissioner Dad: • Land Use Element update should be done before action is taken on this issue; • Likes the idea of placing automobile dealerships on Olympic Boulevard, impacts of such moves should be considered; • Subterranean parking should be excluded from FAR as an incentive; • Agreed with Commissioner O'Day that building heights should not be allowed to impact neighbors; • All options offered by the consultants should be retained, as well as the option suggested by Mr. Harding, in order to maintain flexibility and affordability; • Return to the Commission with the East/West Task Force recommendations prior to it being forward to the City Council. 2 ATTACHMENT C POLICY RECOMMENDATION REPORT PREPARED BY COTTON BRIDGES ASSOCIATES Etectronic version of attachment is not available for review. Document is available for review at the City Clerk's Office and the Libraries. SUMMARY OF RESEARCH AND POLICY IMPLEMENTATION RECOMMENDATIONS SANTA MONICA AUTO DEALERSHIF STUDY City of Santa Monica Planning & Community Development Department Prepared with assistance from Cotton/Bridges/Associates Moore lacofano Goltsman, Inc. Economics Research Associates, Inc. March 23, 2004 TABLE OF CONTENTS Introduction ..............................................................................................................................1 A. Purpose of this Document ..................••-...........................................................................................1 B. Background ..........................................................................................................................................1 C. Recent Developments ....................................................................................................................... 3 D. Current Study and Conclusions ....................................................................................................... 5 il. Study Approach .........................................................................................................................6 A. Research ................................................................................................................................................6 1. Neighborhood Research ............................................................................................................6 2. Auto Dealership Research ......................................................................................................... 8 3. Economic and MarketingTrend Research .............................................................................9 B Summary of Findings ........................................................................................................................11 C. Existing Codes and Standards ........................................................................................................14 111. Policy Changes ............. ........................................................18 A. Policy Concept Summary ................................................................................................................ 18 6. Zoning Policy Concepts ..............................................:................................................................... 21 Proposal 1. FAR Modifications ............................................................................................. 21 Proposal 2. Redefinition of FAR ........................................................................................... 21 Proposal 3. Modification of Height Limits ........................... ............... ............................... 22 Proposal 4. On-site Vehicle Storage: "Stacked Parking" ................................................ 23 Proposal 5_ On-site Vehicle Storage: Rooftop Parking .................................................. 23 Proposal 6. "A" Parking Overlay and "R" (Residential) Lots .......................................... 24 Proposal 7. Temporary Use Permits for Off-site Vehicle Storage ................................ 26 Proposal 8. Construction-Related Temporary Use Permits ............................................ 26 Proposal 9. Loading and Unloading of Vehicles .............................................................. 27 Proposal 10. Implementation by Overlay District .............................................................. 27 Proposal 11. Procedural Issues ............................................................................................... 28 Proposal 12. Off-site Vehicle Storage .................................................................................... 28 C. Non-Zoning Policy Concepts ......................................................................................................... 30 IV. Figures ..............................................................................................................:.....................32 Santa Monica Auto Dealership Study Page i 1320.00 List of Tables Table Page Table 1 Santa Monica Car Dealerships .................................................................................................. 2 Table 2 Independent Used Car De~lerships ......................................................................................... 2 Table 3 Space Requirements for Prototypical Dealership Component Elements .....................14 Table 4 Zoning Regulations for Auto Dealership Related Uses .....................................................17 Santa Monica Auto Dealership Study Page ii 1320.00 1. INTRODUCTION A. PURPOSE OF THIS DOCUMENT In April 2003, the City authorized a study°nf the Ciry's regulations regarding auto dealerships. This study reviews the current neighborhood concerns and provides an independent review of the dealers' operations and requirements. This analysis considers, but does not rely upon findings made in a 2001 report commissioned by a group of Santa Monica dealerships dealing with the subject of dealer needs. The current study involved several months of background research, including a review of local, regional, and national economic trends affecting auto dealerships, individual interviews with representatives of new car dealerships in Santa Monica, and community outreach efforts to better assess the concerns of residents living near auto dealerships. This document, particularly Part II, is a summary of this research. Part 111 introduces several policy change proposals and implementation recommendations intended to improve existing sites and provide standards for new development in order to resolve many identified problems associated with the proximity of auto dealerships to residential development. In October 2003, these recommendations were reviewed in preliminary form at a community meeting as well as with focus groups of auto dealership representatives. Input from these review sessions was used to revise and refine the concepts, to assist City staff to propose specific text amendments to the Santa Monica Municipal Code. Subsequent to completing the initial phases of the study, the study effort was expanded to assess conflicts between used car dealer operations and nearby residents. The results of this effort are presented this report as well. B. BACKGROUND Auto dealerships have a long history on Santa Monica and Wilshire Boulevards. Many dealerships date back to the 1950s or earlier. A list of new car dealerships in Santa Monica as of November 2003 is included in Table 1; dealership (ocations are shown in Figure 1. Independent used car dealerships (those not associated with a new car dealership) are shown in Table 2; their locations are shown in Figure 2. (All figures are located at the end of the report.) The economic study prepared in conjunction with this report illustrates sales tax revenues which flow to the Ciry's general fund and identifies the significant contribution these make to the ongoing provision of municipal services. About 20 percent of the sales tax revenues in the City's general fund stems from the activities of Santa Monica's auto dealerships. The economic analysis also indicates that the growth of auto related taxable sales in Santa Monica has not kept pace with that of Los Angeles County. Santa Monica dealers are suffering competition from outside the Ciry and are unable to merchandise their products at the same level as other dealers in other cities. The inability of Santa Monica dealers to remain competitive in the sub- regional market imperils the City's sales tax revenue stream. Unlike dealerships in more suburban locations, most of Santa Monica's auto dealerships, particularly those in new car sales, have not yet enhanced their facilities to remain competitive. Santa Monica Auto Dealership Study Page 1 1320.00 Table 1 Santa Monica New Car Dealerships* Dealerships interviewed for Study Acura of Santa Monica ° Honda of Santa Monica Hornburg Jaguar Infiniti of Santa Monica Santa Monica Ford Santa Monica Group (Chevy, Buick, GM) Santa Monica Lexus Santa Monica Lincoln / Mercury/Mazda/Subaru Santa Monica Mitsubishi Santa Monica Nissan Santa Monica Volkswagen Toyota of Santa Monica Volvo of Santa Monica W.I. Simonson (Mercedes Benz) Deaterships not Interviewed Santa Monica BMW Steve Taub Audi Saab of Santa Monica* `Owned by W.1. Simonson Address 1717 Santa Monica Boulevard 1720 Santa Monica Boulevard 1601 Wilshire & 3300 Olympic 900 Santa Monica Boulevard 1230 Santa Monica Boulevard 3223 Santa Monica Boulevard 2450 Santa Monica Boulevard 1229 Santa Monica Boulevard 1501 Santa Monica Boulevard 1599 Santa Monica Bou)evard 2440 Santa Monica Boulevard 801 Santa Monica Boulevard 1719 Santa Monica Boulevard 1626 Wilshire Boulevard Address 1127 Santa Monica Boulevard 1020 Santa Monica Boulevard 1820 Santa Monica Boulevard Table 2 Independent Used Car Dealerships* Deaiership Sports of Santa Monica Omni Auto Trade Major Motor Cars Santa Monica Seaside Motors (three locations) Santa Monica Auto Sales Pacific Motors Kondo Motors Morgan West Inc. Classy Auto Broker Address 1200 Santa Monica Boulevard 2703 Santa Monica Boulevard 2932 Santa Monica Boulevard 1918 Lincoln Boulevard 2515 Lincoln Boulevard 2660 Lincoln Boulevard 1630 Santa Monica Boulevard 860 Pico Boufevard 1124 Santa Monica Boulevard 3003 Pico Boulevard 3014 Lincoln Boulevard *Current to February 2004. Santa Monica Auto Dealership Study Page 2 1320.00 In the last 40 years, the residential uses adjacent to the new car dealerships have intensified. Today, many multi-family apartments and condominiums are in close proximity to the auto dealerships. Severa) of the dealerships were not designed with such residential proximity in mind and in many cases residential buildings have not been designed to reflect their proximity to adjacent businesses. Additionally, operations at dealerships have increased over the years; often without corresponding efforts to contain operations so as to minimize neighborhood impacts. Conflicts between dealership and residential uses have resulted. Noise, traffic, and air qualiry concerns tend to top the list of residents' concerns. Vehicle deliveries, equipment powered by air compressors, alley usage, test driving activities, light and glare, a few remaining public address systems, and car alarms represent many residents' concerns and complaints regarding dealership operations. Over the years, the Ciry's challenge has been to address residential concerns while at the same time aflowing dealerships to maintain reasonable business viability. Both the 1984 Land Use Element and the 1988 update to the Zoning Ordinance specifically addressed auto dealership development issues. Since the 1988 changes, there have been few significant dealership expansions, nor many significant remodels. As a result, most dealerships along Santa Monica Boulevard continue to operate from facilities that remain iil-suited for usage under present fevels of operation. Some City actions and technological changes have helped eliminate nuisances like public address systems and spill-over lighting. The introduction of preferential parking on residential streets has also reduced conflicts between residents, dealerships, and dealership customers. However, some conflicts still remain. Many concerns and complaints relate to temporary or momentary occurrences, such as car alarm and radio noise, parking in alleys, or trash container noise, which are very difficult for City Code Enforcement staff to observe and cite. C. RECENT DEVELOPMENTS Several new car dealers have expressed concern about City policies which affect their long-term business viability. In an attempt to advocate for policy changes, a coalition of Santa Monica new car dealers joined to produce a detailed report with proposed zoning modifications in )anuary, 2001. Entitled "Retaining Full-Service Auto Dealerships in the City of Santa Monica: Proposed Modifications to City Planning Regulations," the report is referred to in this document as the "HR&A report," reflecting its authorship by the firm of Hamilton, Rabinowitz & Alschuler, Inc. In addition to proposed zoning modifications, the HR&A report incfudes information on the overall economic impact of auto dealerships on the Ciry's revenue stream. The HR&A report contains limited discussion of dealership conflicts with nearby residents but acknowledges discomfort of some residents with dealer operations. The HR&A report provides an overview of the economic contribution of the Eighteen new car dealerships existing at the time of the study. Substantial detail is provided about ten dealerships which participated intensively in the study, particularly with regard to physical facilities and space related inadequacies of the individual facilities. The report also contends that there is a disparity between certain policies in the General Plan and the actual provisions of the Zoning Ordinance, particularly the floor area ratio policies and standards and the use of lots in the "A" Off-Street Parking Overlay Zone (an overlay designation that allows for the continuation of non-conforming parking lot uses in addition to the uses permitted in the underlying residential zone). Santa Monica Auto Dealership Study Page 3 1320.00 One of the key themes of the HR&A report is that new car dealership facilities are severely (imited in size and that the Zoning Code prohibits dealers from constructing facilities of adequate size in which to conduct their businesses. In advocating for larger facilities, dealers cite the changing dynamics of the auto sales business generally, in which more sophisticated consumers and internet price comparisons have reduced dealer profit on each new car sold. To offset reduced profitabitiry, dealers report that they must sell more cars, but in Santa Monica, they continue to do so from facilities created in an earlier era and designed for a much lower intensity of business. As product lines multiply, individual vehicle sizes increase, and auto consumers expect to select from many available options, successful dealerships typically need more space on which to carry larger inventories and provide adequate service areas. Auto manufacturers set forth franchise standards for all of their dealerships to ensure consistency of brand image and, most critically for this study, that an appropriate amount of space is provided in which to conduct business. CBA's research indicates that most manufacturers rypically require their deaferships to keep on hand a 45 to 60 day inventory of new cars. This entire supply need not necessarily be on a single property, but at least in the control of an individual dealership. Most Santa Monica dealerships comply with this requirement only by piecing together multiple sites and lots for vehicle storage, including space at the Santa Monica Airport, lots in the Broadway Commercial District, and on private property outside of Santa Monica. A comparison of how these typical inventory requirements compare with a protorypical Santa Monica dealership is presented in Part III of this report. Some manufacturers also set forth required numbers of service bays, amounts of office and showroom space, and other dealership components. Per the HR&A report - and confirmed by research for this study - almost none of Santa Monica's dealerships have main facilities in full compliance with the spatial requirements of their manufacturers. However, no Santa Monica dealership has reported that a failure to meet spatial standards portends a loss of the franchise. Notwithstanding, dealerships that do not meet the standards can face several disadvantages Dealerships able to carry and show larger inventories can draw more customers lured by the promise of more selection. Moreover, manufacturers do take the standards into consideration when selecting locations to offer new models or spin-off brands. For instance, Santa Monica BMW reportedly was not selected to sell BMW spin-off "Mini Cooper" vehicles due to space constraints. The closest Mini Cooper locations to Santa Monica are in Los Angeles (near Huntington Park), North Hollywood, and Hermosa Beach. While other dealerships in nearby suburban (ocations have the space to increase the variety of vehicles offered, Santa Monica dealers are concerned that their lack of space places them at a competitive disadvantage. ~ In sum, Santa Monica dealers state they face a double constraint: not only are their lot sizes small with little or no opportunity for expansion, but additionally, the Zoning Code allows only relatively small buildings on each property. The HR&A report recommends two areas of modification to the Zoning Code. The first proposes modification of specific development standards to allow greater building volume on each site. The second proposal involves creation of an "auto dealership overlay zone." The overlay zone would encompass existing dealerships and incorporate the code modifications suggested in the first recommendation, i.e., increased building height and bulk. The HR&A report contends that these changes would substantially resolve some of the space problems faced by the dealers. Indirectly, the recommendations would also help reduce conflicts with neighbors by containing many dealership operations within buildings-that now occur outside in surface parking areas. Santa Monica Auto Dealership Study Page 4 1320.00 D. CURRENT STUDY AND CONCLUSIONS In an effort to 1) independently evaluate the HR & A report and other claims of auto dealerships, 2) seek greater neighborhood and public input regarding concerns about auto dealerships, and ~ devise independent conclusions and recommendations, the City engaged a consulting tea; composed of Cotton/Bridges/Associat~s.:(planning and ordinance analysis), Moore lacofano Goltsman (public outreach), and Economic Research Associates (fiscal and industry trend analysis). Since April 2003, the consulting team, with assistance from City staff, has conducted individual interviews with representatives of most of the City's new car deaierships, issued and analyzed surveys of residents located near all Ciry auto dealerships, conducted public meetings to hear neighborhood concerns, and completed a detailed economic study assessing the impact of dealerships upon Ciry sales tax revenue. As a result of gathering and analyzing this and other background information, the consulting team gained a good understanding of the particular issues and has provided the City with implementation recommendations intended to resolve many conflicts between residents and dealership operations while maintaining the viability of auto sales in Santa Monica. After a summary of critical facts, this report discusses several potential policy considerations and other means to resolve conflicts with nearby residents, balanced with the business interests of the dealerships and the financial interests of the City. The general goal of these policy options is to reduce dealership impacts on residential areas while maintaining the long term viability of the auto dealerships. This balance appears to be best achieved through two different, but not mutually exclusive means: ~ Relocation of dealerships or relocation of repair and . service operations to sites in the Olympic Corridor area, and Significant reconstruction of dealership facilities to better enclose and contain operations- related impacts. In addition to these zoning-related policy options, this memorandum includes other proposed policy or regulatory changes to address many neighborhood concerns related to operational issues. Santa Monica Auto Dealership Study Page 5 1320.00 . tl. STUDY APPROACH A. RESEARCH Two areas of research were undertaken at the beginning of the study to assure that adequate information was known about auto dealer operations and the concerns of neighbors about these operations. The methods used to obtain the information are described in the following paragraphs. Both new and used car dealerships were included in the study. Independent used car dealers were representative of used car facilities. Pre-owned sales lots were addressed as a part of the new car dealer operations. 1. Neighborhood Research Questionnaire regarding auto dealership impact May 2003: Questionnaire/public meeting notices mailed to about 3,000 residents and businesses within 500 feet of any new car dealership September 2003: Additional questionnaire/public meeting notices mailed to about 2,000 addresses within 500 feet of all used car dealerships o About 500 questionnaires were completed and returned with written comments; information and comments were tabulated for used in the study o New car dealership locations shown in Figure 1 o Used car dealership locations shown in Figure 2 Neighborhood meetings ^ About 20 neighborhood attendees and several new car dealership representatives participated in a June 3, 2003 meeting, focused on soliciting concerns and issues about dealership operations. ^ About 40 people attended a second meeting held on October 21, 2003 to review the potential policy options and provide further comment. Attendees included several new car dealership representatives, but no one representing used car dealerships. ^ Neighbors commented on past and present concerns with auto dealership operations. ^ Issues raised were somewhat localized, i.e., concern with activities at particular locations. ^ Neighborhood concerns tended to be focused on the topics of traffic and noise. ^ Parking is still a concern in limited areas; preferential parking appears to have resolved some conflicts where instituted (Figure 3 shows the Ciry's preferential parking zones) ISSUE AREAS Summary of Issues and Concems Expressed by Neighbors of Both New and Used Car Dealerships Alley usage ^ Test driving and deliveries occurring illegally ^ Cars repaired/staged in alleys Santa Monica Auto Dealership Study Page 6 1320.00 ^ Speeding in the alleys (test drives, other uses and users) ^ Loitering in the alleys Parking ^ Inadequate on-site customer and pemployee parking leads to greater competition with residents for on-street parking ^ Dealership employees take spots soon after street sweeping ^ Parking of inventory/repair vehicles on streets/alleys; sometimes blocking alleys ^ Permit parking has eliminated conflicts in many instances ^ Potential four story buildings for parking probably excessive ~ Underground parking facilities preferable Noise ^ Car alarms, music, loud speakers, mechanical equipment (particu(arly compressor-driven tools) are loud and disturbing ^ Lack of adequate noise barriers between dealersi~ips and residential areas ^ Some power equipment could be replaced with newer, quieter equipment Vehicle Repair Activities • Sights, sounds, and smells are offensive Trash ^ Accurnulations in alleys, parkways Vehicle deliveries ^ Vehicle delivery trucks left running while offloading vehicles - noise and air qualiry impacts ^ Side streets blocked/impeded by delivery trucks offloading cars ^ Delivery truck drivers unfamiliar with area; not sensitive to neighborhood concerns ^ Deliveries during evenings and weekends are especially disruptive Employee behavior ^ Employees' personal cars repaired on streets/alleys ^ Disrespectful of neighbors when concerns expressed; lack of follow-up from management following complaints Visual impacts/lighting ^ Some lighting impacts have been abated through removal of lights, but conflicts remain, especialfy where residential windows are oriented toward open parking areas ^ Some operations, particularly used car dealerships, constitute visual eyesores Code Enforcement ^ Concern that City is not responsive in enforcing rules Santa Monica Auto Dealership Study Page 7 1320.00 Other Concerns In addition to issues clearly related to new and used car deafership operations, many respondents commented on problems experienced from other businesses and uses, such as bars, fast-food restaurants, hospitals, auto repair shops, and schools. In many cases, concerns over other uses seem to overshadow issues specific to new and used car dealerships. ' 2. Auto Dealership Research Research Approach The research undertaken regarding dealership operations in Santa Monica included: ^ Independent review of the HR&A Report ^ Review of the Santa Monica Generaf Plan and Zoning Ordinance ^ Interviews and site tours with representatives from nearly all new car dealerships* ^ Dealership focus group meetings' ^ Analysis of national and regional auto sale industry trends ^ Review of dealership financial contributions to the Ciry Existing Conditions ^ 17 new car dealerships along Santa Monica Soulevard and Wilshire Boulevard. ^ 5 independent pre-owned auto sales establishments on Santa Monica Boulevard. ^ 6 other pre-owned auto sales establishments on Lincoln and Pico Boulevards. ^ Many Santa Monica Boulevard new car dealership sites developed prior to 1970. ^ Many pre-date multi-family development in the vicinity. ^ Most dealerships have intensified operational activities without providing significant residential protection from operational impacts. ^ Older, open-style, multi-building dealerships are not designed with nearby neighbors in mind; nothing to prevent noise, visual, or other impacts from "leaking" onto nearby residential properties. ^ Several new car dealerships include residentially zoned lots with and without parking overlays ("A" (ots and "R" lots respectively); development on these lots is limited. ^ New car dealerships report that customer base is local - Santa Monica/Westside; dealers state that they are serving local demand. ~ Many used car dealerships are on small lots with little enclosure and very limited expansion potential ISSUE AREAS Business/Industry related Santa Monica new car dealership sites provide less site and land area than auto manufacturers prefer. ' As a means of soliciting feedback on potential policy solutions, the City invited all new and used car dealerships to attend "focus group" sryle meetings on October 9, 2003 at the Ken Edwards Center. Attendees included eight representatives of new car dealerships; no used car dealership representatives attended, although two had confirmed attendance prior to the meeting. This study did not include individual interviews or site tours with used car dealership representatives. Santa Monica Auto Dealership Study Page 8 1320.00 Santa Monica's new car dealers report being concerned about their ability to maintain long- term business viability within present facilities. Santa Monica's dealers state that new car sales are a large part of their businesses' volume, but are less significant than repair services in terms of profitabiliry. Auto service/repair: Santa Monica dealers say this is the ~most profitable part of their business, and would like more space for service areas. Dealerships and City policies Most Santa Monica dealers haven't made significant building or other capital improvements in years; some reported difficulry in negotiations with the Ciry regarding approval processes, although no applications have been denied by the City. Maximum development thresholds allowed by current code seen as insufficient to meet dealer needs for additional space. Some negative impacts on neighborhoods have been resolved or addressed through Ciry actions. However, some.problems persist, such as: ° Existing restrictions on outdoor lighting reduce unwanted glare, but do not solve other problems related to open parking, storage, and work areas- noise (car alarms, power washing equipment, etc.) and other concerns continue to spill over to adjacent residential properties. ° Permit parking benefits residents; but reduces the daytime parking supply for dealerships and other businesses. Whether City policies can provide sufficient incentive for used car dealers to develop and improve their sites is unclear because of low profit margins and difficulry in enclosing this rype of business within a building. 3. Economic and Market Trends Research An economic study of auto related busiriesses in Santa Monica, produced by Economic Research Associates, Inc., is contained in a separate report. (December, 2003). Following are key points of the study. Industry Trends District branding is an increasing phenomenon: for example, identifiable "auto rows" exist in the larger market areas of Van Nuys, Glendale, and elsewhere; these dealerships advertise together and offer opportunities for greater customer convenience and comparison shopping. Additional intense competition is anticipated locally from Culver City, Hawthorne, Carson, and for some brands, Glendale and the San Gabriel Valley. Although some locations are far from Santa Monica, price points and larger inventories make them competitive against Santa Monica dealerships. The need exists for dealers to provide a growing array of product lines - sedans, station wagons, convertibles, small, mid-size, and large SUVs, hybrid vehicles, etc. In addition, dealerships need to meet ongoing industry changes: including new "spin-off" brands (Mini Cooper at BMW; Scion at Toyota), updated signage, and improved building appearance. ^ Most car purchases are still made in person. Internet sales are growing, but stil) require transactions and test driving at (ocai deaierships. Internet saies and increasing customer Santa Monica Auto Dealership Study Page 9 1320.00 sophistication about "invoice cosY' reduces profitability per unit sold. Greater sales volume and greater emphasis on auto service are needed to maintain dealership profitability. Both locally and. nationally, dealerships are being consolidated into large chains selling several brands of cars: ° Locally: Santa Monica Honda and Volvo part of Sonic Group ° Locally: Sullivan Auto Group: local chain (VW, Lexus, Toyota) ° Outside Santa Monica: "Power" dealership group (formerly "AutoNation") growing, providing formidable competition in the regional market ^ Independent used car dealerships tend to be Iocally/privately owned; operating on relatively low margins, potential for capital investments is highly constrained. Dealership Financial Contributions to Community Sales tax revenue' In 2002, the Ciiy received about $22.4 million in sales tax revenue from all sources Ciry-wide ^ $4.1 million was from new car sales (18.3%) ^ $1.06 million was from auto leasing activity (4.7%) o Leasing agents include new car dealerships, auto rental agencies ^ $271,000 was from used car sales (1.2%) o Note: Used car sales are generated by both "major brand" new car dealers as well as facilities that trade only in used cars. Data not available to determine how much of used car sales attributable to independent used car dealerships vs. the pre-owned divisions of new car dealerships. ^ Total of $5.8 million in sales tax revenues from all auto-related activities 0 71 % of this was attributable to new car sales alone • Dealerships also generate sales tax revenue for parts and accessory sales • Industry trend: Auto dealerships increasingly include accessory "boutiques" to increase customer identification with brands ^ Auto services provided at most new car dealerships are profit centers for dealerships, but labor is not subject to sales tax ^ Key tax revenue trend: In 1999 and continuing through 2001, auto related taxable sales in Santa Monica started to slip relative to auto related taxable sales in the rest of Los Angeles County. Sales Volume per Business License: 2002 ^ New car dealerships: $14.8 million ^ Used car dealerships: $1.2 million Employment Santa Monica's "brand name" new car dealerships represent nearly 1,100 jobs ^ 65% in services/repairs positions (about 715 jobs) ^ 35% in sales/administrative positions (about 385 jobs) ^ Majority of jobs are full-time, with benefits ' Sources for all economic information: State of California, City of Santa Monica, Economic Research Associates Santa Monica Auto Dealership Study Page 10 1320.00 2001 median pay for service employees: $29,000 2001 median pay for sales/admin: $38,000 Dealership service positions tend to pay higher wages than positions in other service industries such as restaurants and retail establishments (Sources: HR&A Report, Economic Research Associates) Other Direct Financial Impact ' Dealerships pay property taxes, utility taxes, and business license taxes to City Other Economic Activity Spin-offs to local businesses: dealerships purchase goods and services from local businesses ^ In 2000: average of $170,000 spent per new car dealer at other local businesses, according to HR&A report ^ Spending money in town creates modest additional sales tax revenue for City B. Summary of Findings The study research, consisting of analysis of local, regional, and national economic trends, interviews with auto dealership representatives, extensive public outreach to the neighborhoods, and a review of the HR&A report, led to the following findings. Most neighborhood concerns appear to result from two related factors: the close proximity of dealerships to residential areas and the poor containment of dealership operations within facilities that are inadequate to serve present (or anticipated future) levels of operations. Inadequate space on the ground or within buildings causes spillover of operations into all parts of the Ciry, particularly adjacent neighborhoods. The lack of adequate on-site inventory storage constrains sales opportunities when cars must be brought from an off-site location to show the product on-hand. Potential customers are hesitant or unwilling to wait the substantial amount of time required to bring a vehicle from an off-site location. This results in increased traffic to and from dealership sites. In addition, dealers indicated that the moving of vehicles back and forth creates increased risk of vehicle damage. To independently assess dealership space needs, CBA created a mathematical model based on a hypothetical Santa Monica dealership. In this hypothetical dealership, monthly sales volume is 150 new cars and the contiguous site area of the dealership is 30,000 square feet. This monthly sales volume is an average for existing Santa Monica dealerships. Several Santa Monica dealerships have total land areas greater than 30,000 square feet, but most dealerships are built upon multiple parcels separated by streets or alleys. The largest contiguous parcels are closer to 30,000 square feet in area (0.69 acres). Table 3 illustrates several hypothetical dealership facilities in terms of square footage and floor area ratio needed. These models are built upon information known about Santa Monica dealerships as well as industry-standard information uncovered in research. The table illustrates iwo hypothetical dealerships that could be built under the City's current zoning regulations - one that includes both sales and service functions; one that is sales only - plus two Santa Monica Auto Dealership Study Page 11 1320.00 others that examine the effect of excluding subterranean space from the computation of floor area ratio (FAR).' All examples in the model assume a 30,000 square foot contiguous site and that dealers will need to keep on-hand a 30-day supply of vehicles, based on an average sales volume of 150 vehicles per month. Nationally, dealers rypically prefer to keep a larger inventory on-hand (a 45-60 day supply), but this model recognizes Santa Monica's urban location and higher land values in assuming a lower than standard on-site inventory. Key components of the dealership examples are listed below. Further, all examples assume that all uses will be contained within a structure. Allowable Under Current Regulations Exarnple A-1: Sales and Service Above Grade: sales, service, vehicle storage, and parking are all on-site and contained within an above-grade structure. Example B-1: Service Off-Site; All Else Above Grade: sales, vehicle storage, and parking are on-site and contained within an above-grade structure; service functions are housed off-site. Subterranean Space Excluded from FAR Computation Example A-2: Sales and Service: sales, service, vehicle storage, and parking are all on-site and contained within a building which features two subterranean levels. Example B-2: Sales Only; Service Off-Site: sales, vehicle storage, and parking are all on-site and contained within a building which features just one subterranean level. These different examples were helpful in evaluating potential increases to FAR limits, as well as in examining the impact of wider use of subterranean space. A dealership with sales, service, vehicle storage, and parking contained within an above-grade building, as illustrated in example A-1 requires an FAR of 2.78. This is higher than permitted by current zoning. If service functions and attendant parking were relocated off-site, space demands fall significantly. As shown in example B-1, moving service off-site reduces the needed FAR to 1.33, slightly above current regulations for Santa Monica Boulevard.2 Under current regulations, subterranean space counts towards FAR unless it is used for required parking. Examples A-2 and B-2, however, measure the FAR that would result if all subterranean space were simply excluded from FAR computation, without regard to how the subterranean space is used. Examples A-2 and B-2 are intended to mirror A-1 and B-1; A-2 is a dealership with both sales and service; B-2 assumes service is moved to an off-site location. Example A-2 assurnes subterranean areas of 22,000 and 44,000 square feet, equa) to the estimated usable space of one or two subterranean levels beneath a 30,000 square foot lot. With just one level below grade, the needed FAR is 2.05, but if two levels are below grade, FAR drops to 1.31. ' Absent from all of the examples are any off-street spaces for vehicle unloading and repair vehicle queuing. '- Table 4 illustrates Existing Zoning Regulations for Auto Dealerships. Santa Monica Auto Dealership Study Page 12 1320.00 Example B-2 looks at FAR impact if service is relocated off-site and subterranean space is constructed. This example indicates that total space needed is 39,750 square feet. If a single subterranean level of 22,000 square feet is constructed, the resultant dealership would have an FAR of 0.59, which is within current zoning regulations for Santa Monica and Wilshire Boulevards. Examples B-1 and B-2 demonstrate that auto service and its related required parking are major components of a full-service dealership's total required space. (f these activities were removed to an off-site location in the M-1 or LSMD zones, dealership space requirements would be substantially lower assuming the sales and related activities remain on the Boulevards. Santa Monica Auto Dealership Study Page 13 1320.00 Table 3 Space Requirements for Prototypical Dealership by Component Elements DESCRIPTION New car inventory storage/parking3 Service Bays' Showroom areas Other officess (management, finance, etc.) Parts departments Subtotal: Sales/Service Area COMPONENT NUMBER/SIZE ~~ ~ Fi/Unit 150 20o sf 30 450 sf - - sf 1 2500 sf Base Assumptions: 30,000 sq. ft undivided site New car sales volume: 150 cars per month2 ALLOWABLE AREA UNDER ~ CURRENT REGULATIONS A-1: Sales and Service B-7: Service Off-Site; Above Grade All Elee hove Grade 30,000 sf 30,000 sf 13,500 sf - sf 4,000 sf 4,000 sf 1,200 sf 1,200 sf SUBTERRANEANSPACEEXCLUDED FROM FAR COMPUTATION A-2: Sales and B•2: Sales Only; $~g Service ~ff-Ske 30,000 sf 30,000 sf 13,500 sf - sf 4,000 sf 4,000 sf 1,200 sf 1,200 sf 2,500 sf - sf 2,500 sf • sf 51,200 sf 35,200 sf 51,200 sf 35,200 sf 'arking Requirements ~Spaces d~ Square feet/unit ~ Parking Spaces Parlting Spaces Parldng Spaces Parking Spaces howroom/Office Space ~ 1 per 400 sf ~ 13 13 13 13 xterior Display Area ~ 1 per 2000 sf ~ 0 0 0 0 wro Service Bays ~ 2 per Bay - ~ 60 0 60 0 ervice area exclusive of bays ~ 1 per 500 sf ~ 10 0 10 0 'arts Deparvnent I 1 per 300 sf 1 9 0 9 0 otal Number of ParkinR Spaces Required ~ ( 92 13 92 13 Square Footage of Parking Area (350 sf/space) 32,200 sf 4,550 sf 32,200 sf 4,550 sf ToW{ Space Need 83,400 sf 39,750 st 83,400 sf 39,750 sf rss 1 levelofsubterraneanspace ~ ~ ~ ~ ~ ~ ~ ' ~ ~ ~ ~ ~ ~ ~ sf~ ~ ~ ~ sf ~ ~~~ 22,OOO~sf ~ ~ ~ ~ 22,000 sf ~ ~ jAbove ground space counted in FAR 83,400 sf 39,750 sf 61,400 sf 17,750 sf ~ i`AR Needed to Accom ~odate this Faality 2.78 1.33 2.05 0.59 ~~ ~~~:~: ~Assume 2 levej of su6terranean space ~ ~ ~ ~ s ~ ~ ~ ` sf ~~ ~ ~ sf ~ ~ ~'~ ~ 44,000 sf '~~~~~`~~~~~ NA sf i ~Above ground space counted in FAR 83,400 sf 39,750 sf 39,400 sf - sf ~ ~FAR Needed to Accommodate this Pacilitv 2.78 1.33 1.31 NA ~ Notes: 1. Typically largest undivided lot size on Santa Monica/Wilshire Boulevards. 2. Average among Santa Monica dealerships surveyed. 3. Industry sta~dard is rypically 45-60 day supply in inventory; assume some inventory is stored off-site except as required for efficient sales operetions (30 day supply). 4. Average number for Santa Monica dealerships per HR&A Report, p. 23. 5. Average among surveyed Santa Monica dealerships. ' 6. Per SMMC Table 9.04.10.08.040. 7. Only one subterranean level is assumed for this example; the area of two subterrenean ~evels would exceed the total space needed. Santa Monica Auto Dea{ership Study Page 14 1320.00 Collectively, these examples indicate several potential avenues of policy change. Policies that provide incentives for dealerships to relocate their service functions otf of Santa Monica and Wilshire Boulevards would significantly reduce space needs on the Boulevards and remove many of the service-associated negative impacts experienced by neighbors. ~ However, this mode! would require dealerships to split their businesses between two properties, posing efficiency and management challenges. Second, these examples also demonstrate tF~at greater use of subterranean space would require buildings of (ess square footage above-grade on the Boulevards, while offering the opportunity to contain many dealership functions underground, where they would have much less impact on neighbors. However, current regulations require that subterranean space be counted toward FAR unless it is used for parking. Given the expense of subterranean construction, this can pose a hindrance towards wider use of this method. In sum, the Ciry's current zoning standards appear to preclude desirable solutions. Most dealers have not made significant capital improvements that could reduce the overflow of negative impacts into residential areas. The lack of enclosure of all operations within buildings results in exposure of residents to noise and other conditions affecting their quality of life. .The stagnant development of dealerships is in some cases limiting their competitiveness with dealerships in the comparatively more suburban Westside and Culver City areas, where dealership sites are larger and thus less constrained than in Santa Monica. Larger dealerships tend to be able to provide easier customer experiences, available off-street parking (and less risk of a customer getting a parking ticket) and the ability to conduct test drives without the need for a dealer to retrieve a car from sometimes distant off-site locations. The Ciry appears to be at a critical juncture if it is to maintain a competitive level of sales and sales tax. Without any changes to City policies, dealerships will, in the long term, be forced to consider whether they can remain competitive in Santa Monica or whether relocating out of town is needed in order to rimaintain their business viabiliry in the face of changing dynamics of the auto sales industry and nearby competitors who do not face the same spatial constraints. Most dealers believe the current development standards offer little incentive to expand or improve dealership facilities or operations. This study did not include assessments of each dealership's finances to analyze claims that the current development standards offer insufficient reconstruction opportuniry to justify the cost and risk associated with faciliry redevelopment. However, the consultants concluded that with the exception of the few dealerships with (arge plots of land, current development standards do not allow there to be complete or even significant containment of the existing dealership operations that n.egatively impact surrounding neighborhoods. Most dealerships are composed of multiple parcels separated by streets or alleys, which preclude construction of a single building capable of containing all operations. Dealership operations will continue to have negative neighborhood impacts wherever such operations remain in unenclosed buildings or on surface parking lots and without adequate parking for employees or customers on- site. Santa Monica Auto Dealership Study Page 15 1320.00 C. EXISTING CODES AND STANDARDS Current regulations inhibit the creation of above-grade facilities of adequate size to meet dealership needs. Most dealerships have made little capital investment in their facilities and thus have been unable to address neighborhood concerns, such as noise, visual, and traffic impacts. In reviewing existing City policies, several modifications are recommended for consideration to encourage and provide incentives for capital improvements that will address both neighborhood concerns and dealership needs. ~ Existing Zoning Regulations Table 4 outlines Ciry zoning regulations for the several districts in which auto dealerships and closely related uses are permitted or conditionally permitted. Existing Performance Standards In addition to the basic zoning regulations shown in Table 4 the Santa Monica Municipal Code (SMMC) sets forth numerous performance standards for automobile dealerships. SMMC Section 9.04.12.040 lists these standards. The standards address several issues, including: ^ Minimum lot size ^ Requirements for customer and employee parking ^ Landscaping ^ Lighting ^ Loading and unloading of vehicles ^ Storage of repair vehicles ^ Service/repair facilities ^ Vehicle queuing ^ Requirement for approved test driving routes ^ Requirement for alley traffic control plans ^ Circulation improvements ^ Noise control ^ Storage and disposal of toxic materials ^ Air quality requirements ^ Development standards modifications Some potential rnodifications to these standards are discussed in Section III in connection with the various proposals identified for consideration by the City's decision makers. Santa Monica Auto Dealership Study Page 16 1320.00 Table 4 Current Zoning Regulations for Auto Dealerships and Related Uses C4 C6 C5 LMSD M-1 "A" BCD Highway Boulevard Special Office Light Manufacturing & Industrial Off-Street Broadway Commercial Commercial Commercial Studio District Conservation Parlting Overlay Comm. Dis~ Auto dea(erships allowed? With CUP With CUP With CUP With CUP Not permitted Not permitted Not permitted Expansion of existing Major: CUP Major: CUP With CUP With CUP Not permitted Not permitted With CUP auto dealerships Minor: PSP Minor: PSP allowed? Stand alone auto repair With CUP Not permitted Not permitted Permitted, but CUP Permitted, but CUP Not permitted ' Not permitted allowed? required if within 100 required if adj. to - feet of residential district residential uses ~ Stand-alone Vehicle Parking With CUP Not permitted With CUP With CUP With CUP With CUP, below Not permitted grade only Stand-alone Vehicle Storage Not permitted Not permitted Not permitted With CUP With CUP Not permitted With PSP With lot of 30,000 sq. ft.: " Maximum FAR 1.1 S* 1.0* 0.75 1.0 1.0 NA 0.8 Maximum Height 2 stories, 30 ft 3 stories; 45 ft. 3 stories, 45 ft, 2 stories; 30 feet 2 stories; 30 feet NA 2 stories, 30 feet Note: No auto dealership uses are allowed on residentially zoned lots without an "A" overlay Source: Santa Mon'sca Mun'scipal Code, various sections 'Higher floor area ratios apply for smaller lots in the C-4 and C-6 zones. Santa Monica Auto Dealership Study Page 17 1320.00 111. POLICY CHANGES A. POLICY CONCEPT SUMMARY Noise, visual, and other negative impacts are the by-products of con~lucting dealership operations on surface parking lots that immediately abut residences or are in partially enclosed buildings in close proximity to residences. New car dealerships have not enclosed their operations because current regulations are perceived to not allow adequate space to meet most dealerships' needs. In addition, in the opinion of most new car dealers, the potential increase in faciliry size under the City's current regulations, is not sufficient to justify the difficulty, cost, and risk associated with reconstructing facilities to better enclose and contain operations. Stand-alone used car dealerships, with much lower business volumes than new car dealerships, tend to lack the capital to make major facilities improvements. Moreover, whether Santa Monica's used car dealerships need additional space for business operations is unclear. Taking existing regulations, neighbortiood concerns, and dealership needs into account, some policy modifications appear necessary to resolve identified neighborhood conflicts and problems by permitting dealers greater opportunities to update their facilities. This report recommends changes to zoning policy as well as changes to policies that are not zoning-related. Zoning Policy Changes This report examines three major categories of location and development standards changes. These categories are not mutually exclusive. Relocation: Encouraging dealerships to relocate to the Olympic Corridor area (LMSD and M-1 zoning districts), away from intensive residential uses, and within new facilities that better enclose operations. Relocation of Service and Repair: Encouraging dealerships to maintain a sales presence on Santa Monica or Wilshire Boulevards, while relocating service and repair activities to the Olympic Corridor area or elsewhere. ~ Devetopment Standards Changes: Encouraging significant reconstruction and enclosure of most operations within buildings, including subterranean levels, on Santa Monica or Wilshire Boulevards. Opening the LMSD and M-1 zoning districts to auto dealership uses offers opportunities for dealerships to relocate businesses to the Olympic Corridor area. Development standards changes would better enable dealerships to remodel existing businesses on Santa Monica and Wilshire Boulevards to achieve better containment of operations. The proposals herein also consider modifications to regulations regarding "A" parking overlay zones. Santa Monica Auto Dealership Study Page 18 1320.00 1) Location Changes: Encourage relocation to sites in the M-1 (Industrial Conservation) and LMSD (Light Manufacturing and Studio) districts. Dealership proximity to residential areas is one key cause of adverse neighborhood impacts. An option to consider is encouraging dealership relocation (or relocation of just service operations) to sites in and along the Olympic Corridor, an area that is more distant from residential uses. Current regulations allow automobile dealerships in the LMSD district with a conditional use permit; dealerships are neither permitted nor conditionally permitted in the M-1 district. Stand-alone auto repair services are permitted in both districts, but conditionally permitted if in proximity to residential areas. ~o achieve this objective, ihe use must be aflowed in the district and the development standards must provide for adequate development potential. New regulations could include: permitting auta dealerships through a simplified approval process in one or both zoning districts, allowing an FAR adequate to provide sufficient enclosed space for dealership operations, and increasing the height limit. The added cost and total site disruption associated with subterranean construction seems to require that the zoning ordinance give special consideration to subterranean areas in the determination of floor area, else additional height may be necessary to accommodate all operations. 2) Relocation of Service and Repair: Encourage the relocation of service, repair and some inventory storage from Santa Monica and Wilshire Boulevards to the M-1 and ~MSD zones, retaining sales operations along commercial corridors. Repair operations generate a significant portion of residentia) compfaints regarding auto dealerships. This approach is to retain the sales activities on the commercia) corridor and relocate the more incompatible repair, service, and vehicle preparation activities to areas within the M-1 and/or LMSD zoning districts. In this proposal the dealerships retain visibility and concentration on the commercial boulevards and can expand the space devoted to display and sales. Service and repair can be located off-site in areas more suited for the activity. This model has been used successfully by at least one dealership and has the potential to work for several others. Another possibility would be the consolidating of repair services. As the industry moves towards consolidation into larger entities selling several brands of cars, the repair and service function could be consolidated into one location. To facilitate this change, the Ciry would need to review proposals for dealer service and repair under a simplified approval process and provide adequate FAR standards for the facilities. ~ 3) Development Standards Changes: Atlow reconstruction and enclosure of facilities on Santa Monica and Wilshire Boulevard For those dealerships that cannot or will not relocate to the Olympic Corridor or to sites in M-1 districts, the City can encourage dealerships to reconstruct and enclose existing facilities. Although this requires the physical expansion of buildings to contain and enclose existing operations, the proposal does not necessarily permit the expansion of dealership operations. Requests for the expansion of operations (such as increasing the number of service bays) could continue to be regulated under the City's existing procedures, typically either a Performance Standards Permit or a Conditional Use Permit. Santa Monica Auto Dealership Study Page 19 1320.00 As discussed in Part 2(Table 3), a prototypical dealership with a sales volume of 150 cars per month on a 30,000 sq. ft. site would appear to need a building with an FAR of 2.78 in order to enclose and contain all uses above grade with a 30-day inventory stored on site. (This is equal to a building square footage of about 83,400 square feet). Under current regulations, the maximum allowable FAR on a lot equal to or greater than 22,501 square feet is 1.15. Few contiguous lots in auto dealership use along Santa Monica Boulevard exceed 30,000 square feet in area. Under current regulations, the maximum allowable amount of floor area on a 30,000 square foot lot in a C4 zoning district is 34,500 square feet. This is fess than half the amount of floor space needed for a dealership with a sales volume of 150 vehicles per month, utilizing conservative assumptions of the amount of on-site storage space. If the prototypical 150-car per month dealership wanted to construct a single faciliry to entirely meet and contain its needs above grade, under current regulations the dealership would need a lot size exceeding 80,000 square feet (1.8 acres). Only one contiguous lot of such size appears to exist on Santa Monica Boulevard (Santa Monica Volkswagen; notably, the C-4 zone covers the entire lot, all the way to Broadway). Subterranean construction appears to offer dealerships ample opportunities for facility expansion with minimal neighborhood impacts. Examples A-2 and B-2 in Table 3 indicate that one or more levels of subterranean construction can offer significant amounts of space. However, current regulations seem to deter this method by counting all subterranean space toward a building's allowable FAR, unless it is used only for parking. Allowing greater flexibiliry in the use of subterranean space without inclusion in the computation of FAR would create an incentive toward the construction of such space and accommodate the same protorypical dealership within an FAR of 1.31 (See Table 3, Example A-2). This is discussed more fully in Proposal 2 below. Non-Zoning Policy Concepts These changes address immediate issues that cannot be resofved through develapment controls. These can be found in Section III-C of this document. Santa Monica Auto Dealership Study Page 20 1320.00 B. ZONING POLICY CONCEPTS The relocation and reconstruction options discussed above require several modifications to current zoning regulations. Several potential proposed modifications are discussed below. These are not intended to be mutually exclusive. ~ Proposal 1. FAR (Floor Area Ratio) Modifications The Santa Monica General Plan permits an FAR of up to 3.0. If the City wants to encourage the replacement of dealerships enclosing all operation in an atiove grade building, the floor area ratios currently permitted in Article 9 of the SMMC would have to be increased to levels in the General Plan Land Use Element. (Refer to Table 3, Example A-1). However, other options are also available, as illustrated in Table 3. If a portion of the use is located either below grade or off-site, relatively modest increases in the allowable FAR are required. Because of manner in which FAR is determined under the current regulations, this option has not been feasib(e. Changes to the FAR definition as discussed below will be necessary to permit dealerships to pursue this option. Implementation Recommendation: If the Ciry wants to encourage the replacement of dealerships all above grade, then permitted floor areas would have to be increased to leve4s allowed in the Land Use Element. However, locating the maximum amount of activities. either below grade or off-site through incentives including amending the current definition of FAR to exclude underground uses is recommended. A small increase in the permitted FAR, perhaps to 1.5, in order to accommodate dealership needs, is recomrnended to accomplish this proposal. Community Benefits: Increasing the FAR to allow dealers to merge all or most of their deafership activities on one site is a major incentive for auto dealership facility reconstruction without which it is unlikely that any redevelopment will be undertaken. Without this modification, it is unlikely that there wilf be any termination of neighborhood impacts caused by existing conditions in surface lots and unenclosed activities, such as car detaifing, which generally take place at the rear of dealerships and generate noise, gfare and aesthetic impacts. Moreover, the additional traffic on neighborhood streets resulting from the transport of inventory stored in off-site lots wifl continue without redevelopment of existing sites. As recommended, the additional FAR increase wauld be minimal, with requirements to ensure that projects mitigate adverse impacts through locating as much of the dealership as possible below grade. Proposal 2: Rede~nition of FAR Current regulations state that both outdoor display areas and any subterranean space used for purposes other than customer or employee parking are counted toward the allowable FAR. Construction of subterranean space for parking, vehicle storage or other activities provides floor area without adding bulk or height to the building. Subterranean levels can also contain noise and other negative impacts more effectively. Subterranean space has great potential to limit neighborhood impacts, particularly if is used for operations such as auto repair, car washing, vehicle preparation, and for employee/customer parking. Taking into consideration the increased cost of below grade construction, a liberalized policy on subterranean development may be appropriate. Santa Monica Auto Dealership Study Page 21 1320.00 Exclusion of subterranean space in the FAR calculation is recommended to accomplish this proposaL If sufficient subterranean space were constructed to enclose a significant portion of any dealership's specific spatial needs, there may be less need for dealerships to increase building height. Adding subterranean space would also provide opportunities for creative re-use of above-ground areas. However, subterranean construction costs are not insignificant and may deter such construction without sufficient incentive. Outdoor auto display areas are presumed to remain part of FAR computation (as per current practice) in an effort to discourage unenclosed facilities. Implementation Recommendation: Redefine FAR for auto dealerships to exclude more uses from FAR calculation if they are located underground, in addition to parking. Community Benefits: The benefit of this proposal is that it encourages relocation of activities with noise, glare and aesthetic impacts to subterranean areas, where they will not impact residential uses. Proposal 3: Modification of Height Limits SMMC Section 9.04.08.22.060(a) limits buildings along the Santa Monica Boulevard portion of the C4 district to 30 feet or two stories in height. SMMC Section 9.04.08.26.060(a) limits height in the C6 district (Wilshire Boulevard) to three stories or 45 feet. in both the M-1 and LMSD districts, height limits are 2 stories or 30 feet (SMMC Sections 9.04.08.34.060(a) and 9.04.08.35.050(a), respectively). While greater use of subterranean space is desirable because underground uses are rypically the least disruptive to others in the viciniry, subterranean construction is relatively expensive and dealerships that have higher sales volumes or smaller lots may need to build both below and above ground to create a facility that encloses and/or screens most operations. Allowing a third story (no greater than 45 feet in height on commercially zoned portions of a dealership) could be used as an incentive to encourage subterranean construction. Third story parking/vehicle storage could be permitted, either fully enclosed or on an open roof with adequate parapet walls to screen sound, lights and visibility of vehicles (see Option 5 below for more about rooftop parking). To minimize the impacts of increased height upon nearby residential properties, the height limit could be conditioned such that a dealership facility must taper in height as it approaches residentially zoned property. Immediately adjacent to a residential use, the height limit could match that of the adjacent residential zoning district (30 feet in R2; 40 feet in R3). Field review indicates that numerous buildings along Santa Monica Boulevard exceed two stories. A number are in the 6-10 story range (and are legally non-conforming). Implementation Recommendation: Allow for an increase in height limit for auto dealership reconstruction projects that incorporate at least one substantial subterranean level. Allow this height increase only on commercially zoned lots of an existing dealership faciliry and possibly only in the front portion of the property. On "A" lots within an existing dealership facility, allow height limits that would match the underlying zoning (30 feet and 2 stories in R2, 40 feet and 3 stories in R3). Note: Proposal 7 below includes a detailed discussion of the disposition of "A" /ots. Santa Monica Auto Dealership Study Page 22 1320.00 Community Benefits: Together with the proposal for increasing FAR, this modification constitutes a strong incentive to improve outmoded dealerships that currently impact neighborhoods. By designing for better neighborhood compatibility and encouraging design that steps back building height with the highest portion of the building toward the main commercial street, impactsaof shade and shadow on adjacent residents would be avoided. Proposal 4: On-site Vehicle Storage: "Stacked" Parking In addition to larger facilities, additional zoning incentives could be promulgated to encourage the use of more efficient vehicle storage methods, such as the "stacked," below-grade mechanical units in use in high densiry residential developments in Berkeley, New York City, and elsewhere. The cost of a below ground stacked space is many times that of a subterranean parking space; subterranean spaces are more expensive than above ground or rooftop spaces; all are more expensive than surface parking. The high cost of below-grade stacked systems is a deterrent to their use. Significant incentives would be needed to encourage their use. Recently, dealers have asked to use above-ground, stacked parking units in outdoor locations. Unlike the systems described above, these units do not require excavation and are relatively portable. These units are typically composed of a metal frame with ramps. As these units store cars 6 to 12 feet or more above ground, staff has interpreted them to be rooftop parking, which is prohibited on parcels directly abutting or separated by an alley from a residential district (SMMC Sections 9.04.08.22.050, ~9.04.08.26.050). Above-ground, stacked parking units are perhaps best used indoors, but may be appropriate in outdoor locations if screened from views from the Boulevards, side streets, and residential units. Implementation Recommendation: Encourage auto dealerships to utilize new technologies such as below or above-grade car stacking systems that increase the capacity to store vehicles without counting the space in the FAR calculation. Add language defining City policy regarding use and conditions of above-ground stacked systems in outdoor locations. Community Benefits: While this system may not be feasible for aIl facilities, to the extent that car-stacking enables more inventory to be stored on-site, dealers will have less need for off-site storage, thereby reducing trip generation that impacts adjacent residential uses. Proposal5: Rooftop Parking and Vehicle Storage SMMC Section 9.04.12.040 states that in existing or new auto dealerships "rooftop storage of vehicles is permitted, and fifty percent of any such space shall be counted as floor area for the purposes of computing floor area." In the C4 and C6 districts, the SMMC prohibits rooftop parking on "parcels directly abutting or separated by an alley from a residential district." (SMMC Sections 9.04.08.22.050 and 9.04.08.26.050). Rooftop parking, if properly screened and appropriately set back from sensitive uses, could enable a dealership to provide employee or customer parking exceeding the minimum on-site parking requirement. Although not as "out of sight" as subterranean parking/storage areas, the relatively Santa Monica Auto Dealership Study Page 23 1320.00 lower cost of rooftop uses might make it an attractive option to provide excess parking in addition to providing underground facilities. The current policy appears to provide some incentive toward rooftop parking, but perhaps a greater incentive is needed. Fully discounting rooftop parking areas from FAR calculation is recommended. However, rooftop parking areas should have a parapet wall high enough (typically 6 feet) to screen all parking uses from views from nearby~residential property. In addition, roof top parking areas within 25 feet of any residential use would not be allowed. Implementation Recommendation: Allow development of rooftop parking, with a discount in FAR calculation, exclusively for provision of excess employee or customer parking beyond the minimum Code requirement. Require rooftop parking areas to have a parapet wal) high enough (typically, 6 feet) to screen all parking uses from ground level views onto any nearby residential property. In addition, rooftop parking areas within 25 feet of any properry in residential use should be prohibited. Community Benefits: This rnodification provides an incentive for dealers to incorporate enough parking to genuinely meet their needs within their site area. The benefits to the surrounding community include reducing the competition for scarce on-street parking where employees might be currently parking. Provision of additional on-site parking would reduce side street traffic and noise. The requirement to screen the rooftop parking would also have aesthetic and noise reduction benefits. Proposal 6: "A" Parking Overlay District and "R" Lots Several dealership sites in the Santa Monica Boulevard corridor include residentially zoned lots with an "A" Parking Overlay. The so-called "A" lots are intended to provide parking facilities that do not adversely impact nearby residential neighborhoods (SMMC, Section 9.04.08.38.010). The locations of these lots are shown on figure 4. As most dealerships do not have adequate space to conduct business operations on their commercially zoned lots, the "A" lots are very important to many individual dealerships. Notably, SMMC Section 9.04.08.38.020(1) states that redevelopment of the commercial parcel associated with an "A" lot would lead to the prohibition of parking uses on the "A° lot. In addition to having "A" lots, some dealership sites also include adjacent parcels zoned R-2 and R- 3. These are referred to as "R" lots and are considered to be legal non-conforming uses, since the SMMC prohibits auto dealership uses on these lots. As with "A" lots, "R" lots are used for vehicle parking and storage and typically have no permanent structures. Figure 4 also illustrates the locations of "R" lots in the Santa Monica Corridor. ~ At present, both the "A" and "R" lots are used by dealerships for surface parking (no private structures for parking or other purposes are permitted in the "A" lots per SMMC Sections 9.04.08.38.050 and 9.04.08.38.060; commercial auto dealership uses of R-3 lots are not permitted per SMMC Sections 9.04.08.08.040 and 9.04.08.0$.050). Although the restrictions on the uses of these lots appear intended to protect nearby residential properties and prevent commercial encroachment into neighborhoods, CBA's field observations and neighborhood surveys confirm that "A" and "R" lots seem to be significant generators of neighborhood complaints about the noise and visual impacts associated with auto dealership operations. This comes as little surprise, given that the open "A" and "R" lots immediately abut residential properties. When these open (ots are used for employee parking or customer parking, they provide no protection to residential neighbors Santa Monica Auto Dealership Study Page 24 1320.00 from noise and do little or nothing to absorb sounds from the auto dealership/auto service facilities that are rypically located in the rear of boulevard-facing lots. In certain circumstances, development of the "A" lots with fully enclosed structures would better buffer adjacent residential uses from the negative impacts associated with dealership operations. Many of the complaints and concerns_about auto dealership operations would likely cease. If the lots are continued to be used for surface parking, problems reported by neighbors are unlikely to diminish. However, permitting bu+ldings other than parking structures on the "A" {ots to house dealership activities is in conflict with the City's General Plan. Policies 1.2.2 and 1.2.3 limit what can be done on "A" lots and on residentially zoned (and. A basic policy question regarding the future use of these lots must be resolved if it is agreed that it is necessary to permit the dealerships to expand their floor area in conjunction with enclosure of all operations within a building. The alternatives, if neighborhood complaints are to be resolved, are: 1. Permit the "A" lots to continue as part of the dealership operations but with all operations enclosed within a building with no openings on sides adjacent to residential uses, or 2. For dealerships with both "A" and "R" lots, require returning any "R" {ots to residential use in conjunction with the enclosure of dealership operations within buildings on the "A" lot. As a means of reducing negative impacts on neighbors while allowing for auto dealerships to maintain their business viability, the City may wish to consider allowing, on a discretionary basis, above-ground facilities on "A" lots, provided they are context sensitive and demonstrably better buffer residential properties from noise and other negative impacts. A requirement that dealers erect walls of at least 8-10 feet in height along property lines shared with residential areas might provide added insulation and protection to residents. (Providing a landscape buffer or significant building setback between uses does not appear advisable in that it could become attractive for transient usage, dumping, and other undesirable uses. This woufd likely exacerbate difficult relationships between residents and dealerships.} Figure 5 shows a cross-section diagram of a potential development extending to an "A" lot; Figure 6 provides an isometric plan view of the same potential development, along with diagrams of typically existing "A" lot uses. Implementation Recommendations: 1) For dealerships that include both "A" and "R" lots, require that in conjunction with facility expansion, auto dealership uses on the "R" lots must cease and the lot returned to residential use. 2) Allow auto dealerships to construct parking and storage facilities on adjacent parcels designated as "A" Parking Overlay that have historically been used for surface parking areas with height limits that mirror the underlying zone and with appropriate setbacks to reduce impacts on adjacent residential uses. "A" lot development would be in conjunction with auto dealership reconstruction projects that demonstrably contain & reduce negative neighborhood impacts. Community Benefits: Development and enclosure of uses on "A" lots, integrating the design with an adjacent redeveloped dealership, removes the surface (ot's adverse noise, (ight, and aesthetic impacts from adjacent residential areas. In those locations where residential lots without "A" overlay zoning have (ong been used for open auto storage and repair uses, the residential neighborhood would benefit through the trade-off of "A" lot Santa Monica Auto Dealership Study Page 25 1320.00 development in exchange for returning the "R" lot(s) to enable new residential development. Proposal 7: Temporary Use Permits for Off-site Vehicle Storage At present, nearly every Santa Monica d~alership uses off-site locations within or even outside of Santa Monica for the storage of vehicles for sale. Many of the above policy recommendations are intended to allow dealerships to store most if not all of their sales inventory within an enclosed, expanded faciliry to avoid the many trips resulting from shuttling cars. However, some dealerships may not have the financial resources to relocate or to expand their existing facilities. These dealerships would continue to need to use off-site space to contain afl aspects of their business operations. Several dealerships currently store vehicles at the Santa Monica Airport. Current regulations require a conditional use permit for vehicle storage in the M-1 and LMSD zoning districts (SMMC Sections 9.04.08.34.040 and 9.04.08.35.030). Instead of a conditional use permit, the Ciry should consider establishing landscaping and screening standards and allowing storage tots through an administrative procedure if the standards are met. Implementation Recommendation: Consider permitting short-term vehicle storage in the LMSD and M-1 zones only, through an administrative process with standards that assure adequate buffering and other neighborhood protections as needed. Consider limits on the issuance of temporary permits, such as one 3-month permit per dealership per calendar year, to discourage off-site parking as a long-term solution. Community Beneftts: This modification is proposed primarily to facilitate the particular cycfical needs of auto dealership operations. It will benefit residents to the extent that it reduces illegal auto storage lots adjoining residential parcels and replaces this activity with legal activity that meets Code criteria and is {ocated in industrial areas away from residentia{ uses. Proposal8: Construction-Related Temporary Use Permits (TUPs) The reconstruction of an existing facility, particularly if subterranean construction were proposed, coufd fast 18 months or more. During the reconstruction period, dealerships may not be able to conduct business on their main site. Allowing for a medium-term temporary use permit associated with the reconstruction of a facility would enable business operations to continue during reconstruction. Because these TUPs would be issued only to dealerships with approved reconstruction plans, staff-level approval of TUPs should be considered. Implementation Recommendation: AI1ow for an administrative temporary use permit in a commercial or industrial zone for a temporary dealership in conjunction with construction of an approved deve{opment project. Determine a reasonable {ength of time for which such permits would be valid, with provisions to allow for limited extensions with reasonable cause. Require that temporary relocation of repair activity be permitted only in LMSD and M1 Zones. Community Benefits: This proposal facilitates a dealership's ability to remain in Santa Monica and maintain a viable business while an improved facility is under construction. The communiry benefit lies in the long-term improvement represented by the new dealership, designed to meet current Code standards and the retention of the business IocaAy. During Santa Monica Auto Qealership Study Page 26 1320.00 the temporary phase, residential neighborhoods would be protected through standard operationaf conditions attached to the 7UP and through locating the repair activity in industrial areas away from residential uses. Proposal 9: Loading and Unloading,of Vehicles: Section 9.04.12.040(fj(4) states that new or substantially remodeled dealerships "sha!! provide off- loading faci{ities on private property (on- or off-site)." This standard appears to preclude vehicle off- loading on residential streets. Auto deliveries are limited to 6etween 8 a.m. and 5 p.m., Mondays through Saturdays, excluding legal holidays (SMMC Sections 9.04.12.040(f~ and 9.04.14.060(f~.) Vehicie unfoading is probabfy the most challenging issue related to auto deaferships on Santa Monica and Wilshire Boulevards. The relatively large delivery trucks are for many auto dealership neighbors unwelcome and intrusive. In order to accommodate on-site offloading, a site would need enough space to allow ingress and egress of a tractor-trailer sized auto delivery vehicle, plus sufficient space for automotive movement off the truck. This is not feasible for the vast majority of auto dealership sites on Santa Monica and Wilshire Boulevards. At present, most delivery trucks park in the centerline of streets perpendicular to the boulevards. Most of the streets have sufficient width such that two-way automobile traffic on the side streets is not prohibited by vehicle unloading. Even if dealerships afong these main boulevards enclose their operations under modified zoning regulations, the need to unload vehicles on public streets will remain. With regard to unloading vehicles at off-site locations, a dealership would first have to secure an appropriate off-site space to park or store the vehicles (requiring a conditional use permit for long- term use). Next, the dealership would need to relay the cars (individually) to a pre-sale preparation facility - which in most cases is associated with a dealership`s service facility. Test drives of new vehicles parked off-site require the labor intensive activity of moving vehicles between various facilities, increasing traffic on streets and alleys, and increasing the risk of a vehicle being damaged during movement. A fundamental policy question is associated with this issue. Restricting the use of public streets near deaferships for vehicle unloading would indeed reduce the neighborhood concerns expressed regarding the presence of large delivery trucks. However, requiring off-site unloading would mean that each car would need to be ferried back and forth between the main dealership and off-site facilities, perhaps numerous times in the pre-sale process, causing an increase in traffic into and out of dealerships and their adjacent neighborhoods. Implementation Recommendation: lf the City determines that vehicle unloading on public property near new or substantially remodeled dealerships should be a{lowed, modify the performance standard and conditional use permit requirements accordingly, limiting unloading activities to the commercia{ depth of the side street. Otherwise, continue to require that existing and reconstructed dealerships use private property to unload vehicles. Community Benefits: This proposal would resolve a longstanding issue of contention between auto dealerships and their neighbors. Legalizing the process would a1{ow more opportunity to properly regulate the activity. Proposal 10: Impfementation by Special Zoning Santa Monica Auto Dealership Study Page 27 1320.00 There are a variery of inethods to enact special regulations for auto dealers. Two approaches commonly used are the overlay district and special standards within the zoning district. Both approaches accomplish the same purpose and should be considered by City staff in proposing implementation of proposed modifications for auto dealerships. Implementation Recommendation; The City should evaluate which method will provide the most clarity and easy administration. Community Benefits: The elimination of confusion regarding the City's regulations will benefit the auto dealers as well as surrounding community members. Proposall1: Procedural lssues Existing regulations require several planning entit{ements, architectural review, and building permits for any proposed development project. Santa Monica's deafers have stated that the sum of the current zoning standards and processes creates confusion and an economically unacceptable level of uncertainty in the process of getting permits to construct or remodel a faciliry. Concern over uncertainty discourages improvement of the dealerships, thereby delaying the resolution of problems that both the neighbors and dealers would like to solve. A revised and simplified review process based on a vested right to build facilities of a certain size on the site is considered essential by dealers to enable them to commence planning of a project. On the other hand, the Ciry must ensure that public input is included and reasonable perfarmance standards are incorporated when a project may impact surrounding uses, especially nearby residential uses. Increasing the thresholds for approval through a Performance Standards Permit (PSP) is one method to achieve greater code consistency and more clear process. Public review of any aspects of the project not expressly permitted by the code, i.e., variance from specified standards or requirements would continue. Further, PSPs could still be appealed to the Planning Commission. Implementation Recommendation: Consider increasing the threshold for PSP approval of auto dealership uses. For dealerships with existing subterranean areas, allow PSP approval of expansions of subterranean areas. To the maximum extent feasible, consolidate auto dealership regulatory provisions within the Zoning Ordinance, so as to simplify and provide greater transparency of auto dealership regulations and approval processes. Community Benefits: Procedural modifications would simplify Code {anguage, make policies easier for everyone to understand, and encourage the reconstruction of deafership facilities. Proposal 12: Addressing Dealerships that do not Reconstruct or Relocate Many of the proposals herein rely upon the construction of new facilities to protect neighbors from auto dealership impacts. While several new car dealership representatives have indicated that they would seek to enclose and expand their facilities if City zoning regulations are changed, other dealerships, particularly those that trade anly in used cars, may not have the financia! resources to make significant capital improvements that would reduce neighborhood impacts. As such, a generally applicab{e requirement that would help provide greater screening and/or separation of auto dealership uses from adjacent residential uses seems appropriate. Santa Monica Auto Dealership Study Page 28 1320.QQ tmplementation Recommendation: Require that any dealership that does not undertake significant expansion/enclosure projects within 5 years of ordinance adoption submit for City review a screening and landscaping plan. Screening plans shall include solid walls to be placed between dealership lots and adjacent residential lots as well as provisions for adequate landscaping on and alongside any new wafls. Construction of any such walls or screening devices, as well as any associated landscaping, shall be completed within 6 years of ordinance adoption (one year in addition to the first 5 years following adoption}. Community Benefits: This modification is proposed to ensure that there will be relief for residents adjacent to auto dealerships that do not comply with current screening standards, and which may never seek to modify their sites. This proposal ensures that within six years, certain noise and aesthetic impacts wilt be addressed. Santa Monica Auto Dealership Study ~ Page 29 1320.00 C. NON-ZONiNG PCILICY CONCEPTS Most of the zoning modification proposals outiined above are intended as longer-term solutions to reduce conflicts between dealerships and neighbors through relocated or enc4osed facilities. However, several issues identified by ~ighbors may be resolvable through other policy and procedural changes. This section discusses several policy concepts outside of zoning that are intended to address issues related ta parking, speeding and alley usage by dealership-related vehicles, and trash container controls. Angfed or perpendicutar on-street parking: Certain streets running perpendicular to Santa Monica Boulevard are sufficiently wide to permit angled or perpendicu4ar parking on at least one side of the street. This parking would serve two purposes. First, an increase in the number of available spaces would result and second, the angled parking would serve as a traffic calming measure for the street. However, vehicle deliveries on streets with angled parking could not also accommodate two-way traffic, as is currently possible on inost streets with parallel parking. At present, the City a{lows angled parking on streets with sufficient space, but only upon request from residents of any particular street. The City takes this approach because angled parking can result in giving the street a more commercial appearance and may cause headlights to shine in first floor windows. Nothing would appear to preclude dealerships or any other businesses from initiating a neighborhood campaign to request angled parking on any particular street. However, where preferential parking zones have been implemented and street parking abuts residential uses, the increased number of parking spaces would not be avai{able to dealership or other business users. ^ Sale of Residential Parking Permits to Dealers: A map of preferential parking zones in the Ciry is shown in Figure 3. At the study's outset, some streets were thought to potentially have additional daytime parking capacity. However, field surveys conducted during 2003 of all preferential parking zones between 10th Street and 17~' Streets along Santa Monica Boulevard indicated insufficient capacity to allow business uses to purchase parking permits. Encourage/Facilitate Expanded Use of Existing Parking Facilities: Several dealers indicated that they provide monthly stipends to employees to pay for off-site parking at private lots/garages. Thus far, there has been no coordinated effort among dealers to do this. The City's ongoing East-West Parking Study is assessing both public and private parking avaitability along the major boulevards. Some City policymakers interviewed for this study have indicated interest in car dealership employees utilizing existing parking facilities, such as the parking available at the Madison site of Santa Monica College. However, preliminary findings of the East-West Parking Study indicate that there are few if any available spaces in proximiry to the concentration of dealerships along Santa Monica Boulevard. A longer term solution may be for the dealerships to develop one or more sites for employee parking through a joint venture. Indeed, several dealerships considered such a venture in the late 1990s which would include a faciliry for new vehicle pre-sale preparation, but plans for such a facility never advanced beyond the conceptual stage. ^ Trash Container Controls: A number of complaints from residents ad}acent to dealerships related to the noise created when trash is dumped into a meta( container or when container Santa Monica Auto Dealership Study Page 30 1320.00 lids, usually also metal, are closed. 7he situation observed in a walk through of these areas suggests that the problem originates with residents' containers as well as containers serving businesses. Scavengers and transients are considered a part of the prob(em; some noise impacts undoubtedly result from residential uses of dumpsters. The problem of container noise may not be entirely resolva6le, but monitoring by both residents and businesses will reduce the problem. This problem should be alleviated as the Ciry continues to implement a City-wide requirement that all trash receptacles feature plastic lids. Alley Usage: Residents repart that vehicles misusing the alleys appear to be associated with dealerships. Solutions to such concerns as alley speeding can have unforeseen consequences. For example, speed bumps in the alleys might slow cars down, but have many undesirable side effects, including impeding access for residents and emergency vehicles, as ~well as increasing noise from vehicle slowing, accelerating, and bouncing. As such, speed bumps and related physical measures are not considered to be generally practicable or desirable. Further, reclassifying alleys as one-way only would likefy encourage higher speed driving in the alleys and is contrary to the goals of the Santa Monica General Plan's Circulation Element, which encourages alley access. All dealerships are required to file test driving routes with the Ciry that avoid alleyways and residential streets. 7hese routes are intended to cover customer test driving as well as the test driving of repair vehicles by auto service providers. The enforcement of such routes is difficult because vioiations can (ast only a few moments and elude the observation of City officials. Moreover, some residents appeared not to know whom to call at dealerships to register complaints or concerns about test driving or any other improper aliey usage by employees. An indirect means of addressing this issue woufd be for dealerships to provide residents with the names and numbers of dealership managers and City Code Enforcement personne) to whom complaints regarding test drives should be directed. This solution does not in itself solve the problem, but does enable residents to have more direct and hopefully effective communication with dealership personnel. To address test driving by repair personnel, the Ciry can encourage additional staff training. Another modest but potentially usefu{ solution to concerns regarding alley usage would be to place within each vehicle for sale a small card or placket (perhaps to hang from the rear- view mirror) asking that test-drivers be mindful of the residential neighborhoods near the auto dealerships. Placing this message on a card within the car would take some of the burden off of dealership salespeople to remind customers of the surrounding residential neighbors. The Auto Dealership Task Force could design a standard card or placket to be used by all dealerships. Santa Monica Auto Dealership Study Page 31 1320.00 IV. FIGURES 1. Santa Monica, Wilshire, and Olympic Corridor New Car Dealerships 2. Independent Used Car Dealer Locations 3. Preferential Parking Districts a. 4. "R" and "A" Lots in the Santa Monica and Wilshire Corridors 5. Conceptual Street Side Elevation of Prototypical Dealership 6. Isome.tric Drawing: 7ypica) Existing Dealership and Potential Enclosed Dealership Santa Monica Auto Dealership Study Page 32 1320.00 JAGUAR ~ ~ CENTINELA ~~ ~ ._n AVE (,, ~ I -I . ~ ,..~., ' , ~'7 ~ 1 ~, _. ~~~..~_ ~ L- ~ r~ I' , _ ..... ~ ~~J~ ~~~~..J "~,~'.: i I~ I ~; LJ ' 1,..,.... II I II ~~I// _ ~ /~.. . .... -~~-r~ -~ . i . - ~ ~~~ ..~ {~.. i -1 ,(~ ~ ~ g~ ~ ~ ~_..,_.... ~< ~ ~ \~. i~-, `~~ J -~ .J > > > a Q~ L i ~ ~-~4 . ~ ~. . _ .,.;. , Q~ {I ! i _ `>~ :: o~h i ~•-- ~ ~,:~! ^ `, . '.' ~..I~1i ~., ~i~~~-~~~oCBB~EERRIK~LE~a~~o i,l .~.... { ~~{~11~ .-~ ' ~ , \ `. B . ..~~~~~il :,-.,~!, r-'Q~I~1...~_ . ~~T~T]J~c~i~Li:..J.+.~ wj _`~il I /~j/ y~ ~1 ~~i ~ ~~ _ .,_.~_, z LL~1JJ1 I~ ~ TAAFORD ~ ~ ~ ~ r~~i_`°.. ~~~~ ~ ' ST i ' I 111 ~~~-~° ~~ ~,, ..,... ~ ~~ .~- ~~ ~/ / ~ ~ ~ _.. _~ - a i r_ ° [~] ~ ,. i , ~.:. , ~ I ~~ . ~ ~ ~ / _ ~ .',-, ~~Q / y . ~ ,~ ~. _ ~ .... ^ ,-~~ ~~ ~~ ~' ~ ~ _ ~ ' ~ ~ ' e ~ ~ ~ , ~,a. ~ ... . _ _._.. ~~ : I ~- ' i- ~ '~!~fl ~~ ~ ~~=~~' ' = ~ ~ TEWART ,J~ _ ~ , _._ ~ ; s . _ _= ~~ ~ , ~~ ~~ ~ ~ ' - - _ ~, .~- ~- = ~ . - _ _. . ~ ~~ . . w .- ~ ~ ~- ~ ~ - - ~ , _ :: ~ ' ~ ' ~''/ , ~ , ~~ ~ ~~~ ... . ~~ . .~ _ ~. ,~ ~ ~ . ~ _. . ~ ~ ~ % % ~' ~~~ :: ~= ~ ~: ~ ;: ~ . . _ . ~~ ,. ._ , ~~~ _ ~ . rn ~ ! L ~ .. ~ ~,~ ~~~ ~I~I~ ~ I =__%! ` , ~ _ ~s'ra-~,~ ~~r . - I ~ L,/ \ ~~ o / j'~ / k ~,~T- -~ r.., .~. ~ ~ ... .i i__ "~~ a / ~ ~ ~ ~ .4 , ~ { '.' ~ ~ .\\\ J/p~ F . .. ~~ ~ ~ r~"~ij~ - i ,_ _ ~ i I ~STH ST _ ) ~ / I ~ ~ ~ ~~ . ~ ,~ s ~ _-, ~-. ~ ... _ _ - ~ ,,-..~..~~ . ~I'~~ ~.-1~ ~ ~ ~ 5' ~ , // ~ ~ , = / , f - I ~~~J~J ~,..:.. V LKSW~+GEN . / ; %r~ \~~ ~ g ~t~'P I`_T_~~ - ~ I I ." - ~~ , . , ~: J i ~- I . i ~ ~ , ; ~\ o ,a. ~ i~.~ ~ '~ ~. ~-~ I f !. _.. ~_ . W ~ - r ~ ~ ~ i . ~]„~.. + J ~- ,y ,~ ,I _ I~ 4TI~ 6T ~I I ~ ~ ~ ,`i -- ~-~ 2 .. .' - ~LLJJJ~LL~ ~ .. _ o ~- _ ~ ~~?.~. ~ ~ . I ~ f ' I .~,I ~ . ~ ~~c 1 : " J ' CLOVERFIELD BLVD ~ ~ -, ~ 1- ,.. ... L ~ ... .~ ~ .. ._ ~.. ' i 9e ... '. I ~~~~ ~~~ I~ .~ ,~ L ~~r-, i ~ ~ ~ ~i i ~ f ., ~ ~ ~ ,. ~ W ~ ~ . ~~ ,.. ; , - ~ . ~ .' - i ~ - ~ .._ I-i _', _;_~. _- _ ~ :~ _ ,~ ~ ~ - (T~J~ ~~ I ~ ~ J ., ~Q ~ ~. . _.. ..-- . ~,~ ~ ~. . ._ ~~ ~ . ~ _ _ u . ~, , ~..~ i ~~.,_~~.~ ~ ~ ~ i ~ ~1 ~ - ~ . ~ .. - '~ ' J L '~ .'- _ . ~ _ b w ? ,_ i _ , ~. ~ m ' ~ ~. ~ ~ ~ . ., -~-[- ~--- . ~ --/~.. ~ ~ _ ;E _ _ f. ~ . _ _ - ~ -~-~ - ~- i ; ' . ~ - .. i ~- -~... ..~ _~.i.~ _- ~ ~ . , .~ , zot~ sr~ ~~ ~ , ~ Legeod ~~ 'L ~"-1~~ ~ ~ ~~ ~~~ I ~~f f~~~'~ ~ ~7~ _. ...._- _......_ ;r~~~ ~ %~ _i. .. _.. .. ~ '7~LJ~11J ~ ~ i111111J_LL_J 1 . ~ _ . , Auto DeaVership `~_1J .. , , . , .. 9., ~_.. . isn+sr. .,,. .._ _. _ _. .. .-- ..._ i . .. I I ' • I ~ "" Source: Ciry of Santa Monica Information Systems Orvision. ~ ~ ~.~' `~. ~~,~, ~ ~I ~r~~~~ . ' _ - . G45. July 2403: Cottun/Bridges(Associates, . . ~ ! ti , , - November 2003 ie i err+ si ~J~,~ J,~.~..~~~_~_ -~ ~ _' ' . .~ -~ :~,. .I I I i I ~ ~ . .. . _ .. > I.. ~ ~ ~ ~~,~ -~~ ~ ,~ '~~(0~-1~~i_~ ~., . ~. ~; ~ ,. _ . ~_ ~~ ~ _ _ _ . ~ 0 r~~ - 77TH 5T ~~^^ s* 17TH S7 ~ ~ '~- I ~ ~ 4 ; Ct~_'_L~ID ~I~'`- ~ ~ ~......~ - ~ ~~ ~fT[~~ f~ - ~ ~ ~ '~ 6TH ST i6TH ST , -~,--r-~ ~ . ~ .G_ . . _; ~ , ~ ~ ~ ~,..-~~ _~-~I, ~ . . , . 'J i I~,~~ ~ ;.~ . _ . .. ~ ~- '~~~IB _ _. ~ ~ - , ~ . ~ , - 15~.~_ .. . .. , ST rsT L`a.. ~i '~ I I~ ~ ~ ~ ~ .~.1. ... _,. ~ _ ~' ~ ~ .-~-~ ''~ ~ .`_~ - L~~u ' ~- C J~ I I ~ _ ~ < ~ H ST 14TH ST n w ~~ 74TFI ST ~ r ,.1 LU . M._ . U . I ~ .. ~ f _ ._ ., ..., . _ ... ~ .-y~l ; . .. . .... . . .. , : i ~ -~1 ~~ '. . ~~' 1~ ~~_{L-.~ . ,.. ..__.. ~ ~ k.., ~_ _... f~~ . ''~A J~~ ~. ~ ~ LL 'J1J .° ~ L EJCLI i 5! . I i I~ ' R R. UCLID ST .~ ._ ....... ._ ._ ... ,. ~ a ~~~I i I IEI CLII ICT I r I'~ I I I. ~I..~..I....~.,, ~ 1 4~ L_ ~ 12TH ST I Q 12T`. ~V ~ ~ I ~...I .I . ... .. .._ .. ~ ran .-,F ~ ' „ 1..,.. ~ i ~ ~ ~:,- _~ ~' ~ a ~~~ 12TH ST ~ ~mm ~ ~. ~ Q ~ ~~ ~a . . ; ~~,~ -~~~~~~f~f~ft~~f~~~+~~~~ ~ ~. c ~ ~ 3 _ m ~: ,~, 11 zl I.1I.1.., -m i 9 0. ~ ~~ ~ ~ ~ ,; ~~ ~, _~;a ~ ~ ~~'. ,~o ~~~ ~-~ ~ a a~~~ ~~~ , _. . `.. - ~~ -, ,-~ _.. ~:. ~ i `= Lu z y~TH ST ~ 11TN ST ?H 5T O ~ < ~ ~~~~~ ~ 11 ~~ _ i ~tf~ ~~fD ~ ~i .~~ i_i~~ ~ _ ~ a ~ ,.. ~- i i. }.l. Q I ~, ..._ °a.: ~- , ,.{.!_.._ ~~ . . ~ I f ~~ - ,o ~ .. ~ 1 ~,. L, ~~ i~~TI-~~ ~ ~-,, ~- ~~ ~~~ _ TH ST tOTH 5T m 10TH 5T ~ f f~1 r „ ~ ,~ ~~.~~~-I ~ i ~i 1 ~~ 1 ~~j ~, ~, ~j .~~~ ._ ~.~.,_ ~ .i~i .. -.-,.,.-~ ~ '~ { _~.:~m . 9TH ST 9TH ST .. ~ ~ 9TH ST V „ I ~.. . ~ ~, ` ~,.~~~ . ~.~ _ .. _~._. .. ~ _ .l --- _ ~ ____~ .~__~- ,~-.~~ . ..-~. _ _~a ~ ~- ~~ ~ L I l INCOI N AVF ~ Figure i Fee~ Sa~ta Mo~ica, Wilshire, and Olympic Corridor New Car Dealerships o soo ,.ooo ,.soo z.ooo Santa Monica Auto Dealership Study N y d ~ ~ O - °i•r~ vi ~ ~ V O ~J s i s M a~ E ° CC ~ g O~ d ~ E ~ N ~ ~ ~ Z Cfl O € U ~ ~a ~ $ y ~ u y ~ ~ ¢ ~ m ~ ~ S ~a ~ ~ o ~ Q~ q ~ ~' 25 C ~~~_ ~ 1 ' I $D Y z ~ ~ ,\\\~ ~ ~~ IJL~LLJL~J LL~L~LMJLllJ LL~LLILI~LL1 L~~ ~s ~~~f ~ ~,^ooqo~o^~~o~o~~~ a- ~ tlJINOW Dommmm~~pmmo~ ~g~~ ~~~~J7~~,3a ! ~~0~~~nn ~~O ~~~L~AJ~~~~~~~~~~~~~~~~7q~'~~~~~ ep~LLJL-1 ~~~~~~~~~~ ~~~~ ~~~~L~LJt ~ ~L~LJ~~~ ~~~ ~~ :: ~~~~~~~~~s;~~~~~~~~~ 0~~~~~~~~~~~~@~} ~~~~~~~~~~~~~~ ~ 1 ~~~~~uLJ~~~~~~~~~~ 3 ~~~~~ ~~~~~~~~~~~~ ~~ ~~~~~~~~~~~~ ~~~ ~~~~~~~~~~~~~~~~~~~ _.,~ ~~ ~~~~~ ~~~~~~~~~~~~~~~ ;ooo~~oo~ao~~~~~~~~ ~~ ~~~ ~~00~~~~~0~~~~~~~~~~~~~~ ;~0~~~~~~~0~~~~00~~~ ~~~ ~ ~~ ~aao~~ooQOO ~~~~~0e ~ ~~I~nn~~,n~~~~ ~~~~~ 'o [n y d afOi 0 0 Q U G m ~ Legeod Preferential Parking Districts Implemented Preferential Parking Districts Approved Auto Dealership Used Auto Dealer Source: City o( Santa Monica Information Systems Oivision. GIS. July 20D3; Cotton/Bridges/Associates, Novem6er 2003 feet 0 1.000 2.000 3.000 4.000 figure 3 Prefere~tial Parki~g Districts Santa Monica Auto Dealership Study LB9BIIII R3 Zaning Districts Auto Dealership Parcels N1 Single Family Family Residential Disirict ~ PBfCels R2 law Densily Multipie Residential Oistrict R3 Medium Uensiry Multiple Family Residential Uistrict -'-- ~7 BUIIdIngS fl4 High Uensiry Multiple Family Hesidential Oistrict ~,;~"~~ "A" Lots C3 Downtown Commercial ~ishict ,. C9 Highway Commercial District ~~~~ °A~~ Lots C6 Baulevard Commercial District CP Cammercial Professional Oistrict BCD Broadway Commercial District DP Designated Parks Source: Ciry of Santa Monica Informa6on Systems Division. GIS, July 2003; Cotton/Bndges/Associates, Novem6er 2003 Key M~ ~ Figuce 4 "fl" and "A" lots in the Santa Monica and Wilshire Corridors Feet o wo ,.ooo ,.50o Z.ooo Santa Monica Auto Dealership Study ELEVATION ---~--- 45 feet ~ . I .'~"" Figure 5 Co~ceptual Side Street Eleuatio~ of Prototypical Dealership ~ Santa Monica Auto Deafership Study ------------------ I-------- ~ , ~ Ip I ~ o O O O O O ~ o° o 0 0 0 0 o L------~ , ~---~m~a~-- ~ -- ; "A" LOT I I ~ ~ --- ~ ~ ~ ' W ~ J 1 N Q i 1 ~ 1 I ( I 1 1 1 1 ~~~~~ ~~ ~~ i I I ~ ~ BOULEVARD Typical Automotive Dealership at Plan View EXISTING POTENTIAL Automotive Dealership ! with enclosed two-story showroom/ offices, roofrop parking, and service facility ~~ to allc Vehicle Parking/ Enclosed "A° Lot Parking with I possible Subterranean Parking , ~ 'r'' Roofiop parking screened by parapet P~O J~~ ~O Building maintains Zero Front Setback Enclosed Aufomotive Dealership fi ure 6 9 T~pical Existing Dealership and Potential Enclosed Dealership: IsometricDrawi~g Santa Monica Auto Dealership Study ATTACHMENT D ECONOMIC BACKGROUND REPORT PREPARED BY ECONOMIC RESEARCH ASSOCIATES Economics Research Associates ECONOMIC AND FISCAL ACTIVITY PERSPECTIVES CONCERNING THE AUTO SALES, LEASING, SERVICES, REPAIRS, SUPPLIES ACTIVITY CLUSTER IN SANTA MONICA, CALIFORNIA THIS ASSESSMENT ALSO FOCUSES ON THE DEALERSHIPS LOCATED ON SANTA MONICA BOULEVARD PREPARED FOR THE CITY OF SANTA MONICA BY ECONOMICS RESEARCH ASSOCIATES UNDER SUBCONTRACT TO COTTON/BRIDGES/ASSOCIATES A DIVISION OF P&D CONSULTANTS, INC. OCTOBER 2003 PROJECT NO. 15039 AS REVISED THROUGH DECEMBER 3, 2003 10990 Wilshire Boulevard SuitE 1500 Los Angeles, CFa 90024 3~0-477.9585 FAX 310.475.~950 www.econres. com ERA ~s affiliated w~in o~~~e~s ~o~as Los Angeles San Francisco San Diego Chicago Dallas Washington DG London TABLE OF CONTENTS Section , Pa~e SUMMARY OVERVIEW ........................................................... S- 1 I INTRODUCTION AND PURPOSE OF THE REPORT ............ I- 1 II AUTO SALES AND AUTO RELATED BUSINESS IN THE SANTA MOI~TICA ECONOMY .................................................. II- 1 III MARKET CHARACTERISTICS AND COMPETITIVE CLUSTERS .................................................................................. III- 1 IV COMPARISON OF 2001 REPORT AND CONTEMPORARY FINDINGS ................................................................................... N- 1 V ANTICIPATED FUTURES ......................................................... V- 1 APPENDICES ............................................................................. A- 1 Economics Researc6 Associates Santa Monica Auto Dealerships ERA Project No. 15039 Page ii LIST OF TABLES Number . Pa~e No. II lA NEW CAR AUTO DEALERSHIPS IN SANTA MONICA AND THE COMPETITIVE MARKET ....................................... II- 6 II 1B CITY OF SANTA MOI~TICA USED CAR DEALERSHIl'S....... II- 7 II- 2 SANTA MONICA AUTO DEALERS STUDY, REVIEW OF AUTO SALES(LEASING/SUPPLIES/REPAIlZS TAXABLE SALES LICENSES LOCATIONS .............................................. II- 8 II- 3- CONCENTRATION OF AUTO-RELATED BUSINESS ACTIVITIES ................................................................................ II- 9 II- 4 SANTA MONICA CENSUS TRACTS, ESTABLISHMENTS, EMPLOYEES AND ESTIMATED SALES BY SECTOR IN THE RETAII., AND SERVICE SECTORS ................................. II-10 II- 5 SANTA MONICA CENSUS TRACTS, ESTABLISHMENTS, EMPLOYEES AND ESTIMATED SALES BY SECTOR......... II-11 II- 6 CENSUS TRACTS ADJACENT TO SANTA MONICA BOULEVARD, ESTABLISHMENTS, EMPLOYEES AND ESTIMATED SALES IN THE RETAIL AND SERVICE SECTORS .................................................................................... II-13 II- 7 CENSUS TRACTS ADJACENT TO SANTA MO1vICA BOULEVARD, ESTABLISHMENTS, EMPLOYEES AND ESTIMATED SALES BY SECTOR ........................................... II-14 II- 8 CITY OF SANTA MONICA, AUTO DEALERS AND AUTO SUPPLIES, SALES TAX PERMITS AND TAXABLE SALES II-15 II- 9 SANTA MOIVICA AUTO DEALERSHIPS STUDY, MOST RECENT AVAII,ABLE TAXABLE SALES DATA COMPARISONS ......................................................................... II-17 II-10 SANTA MONICA AUTO DEALERSHIPS STUDY, MOST RECENT AVAILABLE TAXABLE SALES DATA COMPARISONS ......................................................................... II-18 Economics Research Associates Santa Monica Auto Dealerships ERA Project No. 15039 Page iii LIST OF TABLES (Continued) Number III- 1 SELECTED CITIES, COMPARATNE TAXABLE SALES AUTO DEALERS AND AUTO SUPPLIES ............................... III- 2 SELECTED CITIES, MOST RECENTLY AVAILABLE COMPARATIVE TAXABLE SALES AUTO DEALERS AND AUTO SUPPLIES ........................................................................ III- 3 SELECTED CITIES, ....COMPARATNE TAXABLE SALES, AUTO DEALERS AND AUTO SUPPLIES ............................... IV- 1 SANTA MONICA AUTO DEALERSHIPS, EMPLOYMENT DENSITY ...............................................................................:..... N- 2 SANTA MONICA AUTO DEALERSHIPS, ADDITIONAL INFORMATION .......................................................................... V- 1 SANTA MONICA AUTO DEALERSHIPS STUDY, AUTO SALES CHANGES, 2001-2003 ...................................... V- 2 ANTICIPATED FUTURES ......................................................... Pa~e No. III- 4 III- 6 III- 8 IV- 3 IV- 4 V- 2 V- 3 Economics Research Associates Santa Monica Auto Dealerships ERA Project No. 15039 Page iv LIST OF FIGURES Number Pa~e No. II 1 AUTO DEALERS CENSUS TRACTS WITHIN THE CITY OF SANTA MONICA ....................................................... II-12 II- 2 AUTO RELATED TAXABLE SALES IN THE CITY OF SANTA MONICA VS. LOS ANGELES COUNTY ................... II-16 Economics Research Associates Santa Monica Auto Dealerships ERA Project No. 15039 Page v SUMMARY OVERVIEW The City of Santa Monica obtains roughly 20 percent of all sales tax revenues for its General Fund from the activities of the automobile dealers. This has become an essential expectation of the City, in order to support the quality of municipal services which the City provides. The automobile dealers employ roughly 1,000 employees at multiple locations along S anta M onica Boulevard a nd a t t wo d ealerships o n W ilshire B oulevard. E conomic analysis indicates that this employee group is unique in that it generates the highest business volumes per employee in the City. This is not surprising given the very high value of the products sold. It has long been acknowledged that the dealerships are constrained in terms of available existing site areas within the dense urban setting of the City. This has not changed from the late 1990s to the current time. The dealers do need more site capacity in order to maintain competitive advantage in a highly dynamic auto sales market. This is particularly true in the present decade as automobile manufacturers roll out many more specialty types of vehicles in order to attract market share and provide differentiation of product. There is more competition on the periphery of the City and also from new, much larger auto dealerships which straddle the 405 Freeway to the south. If Santa Monica is to retain the valuable business volume activity scale, the municipal revenues, and the employee base of the automobile dealerships, adjustments are necessary regarding allowable site capacities so that the dealership cluster can maintain reputation, allegiance, and market advantage. Comparison of data developed by HR&A in the early 2001 report for the Auto Dealers Association and the contemporary, more recent data found by CBA and Economics Research Associates shows a remarkable consistency of information. The new auto dealers perform adequately in very cramped spaces, and need more existing site ca}~acity approval to continue competitively in the market. In the meantime, however, auto dealership business volumes and resultant municipal revenues have increased in importance to the City. ERA aIso notes the emergence of more competition in Beverly Hills, Culver City, Hawthorne, and immediately east of Santa Monica in Los Angeles. Economics Research Associates Santa Monica Auto Dealerships ERA No. 15039 Page S-1 Section I INTRODUCTION AND PURPOSE OF THE REPORT This report is designed to provide a current economic evaluation of the auto dealerships group in the City of Santa Monica. Further, this report reviewed the prior economic assessment of dealership activities and needs prepared for the Auto Dealers Task Force by HR&A and published in early 2001. Note, however, that national economic circumstances began to change during mid-2001 and even more dramatically since the national emergencies of September 2001. The cumulative recessionary situation (still ongoing as of October 2003) has substantially challenged cities and retail sales. Nevertheless, response to auto sales inducements has been highly positive for virtually all cities with auto dealer clusters. Economics Research Associates has been commissioned as a subconsultant to Cotton/Bridges/Associates to prepare this assessment. The information included herein has been gained from a variety of sources which are reported hereafter, including highly unique information available solely through the City of Santa Monica in a nonconfidential manner. The overall perspective which flows from this preliminary report is an assessment of contemporary business volumes, employment, and current and oncoming competitive circumstances. For the most part, Santa Monica Boulevard is a historic corridor of multiple automobile dealerships, service capabilities, new car dealers with attached used car operations, and some independent used car dealers. While the auto dealers themselves have formed an association, it is not a business improvement district. Further, there is not a unique streetscape program or a unique identification character to the corridor except for the obvious clustering of the facilities and establishments along the boulevard. While a significant portion of Santa Monica Boulevard is a part of the Earthquake Recovery Redevelopment Project Area, that project is not a long-term significant redevelopment activity and is limited by its announced purposes and the state law requirements which constrain the activities. Economics Research Associates Santa Monica Auto Dealerships ERA No. 15039 Page I-1 The report is organized in the following five sections: • Section II - Auto Sales and Auto Related Business in the Santa Monica Economy • Section III - Market Characteristics and Competitive Clusters ~ Section N- Comparison of HR&A Data with Economics Research Associates Data Updates • Section V - Anticipated Futures ~ Appendices - List of Data Sources; Sales Establishments, and Employment Data by Census Tracts While establishing a form of benchmark, this report is limited in the amount of detail of the economic analyses of potential partnerships which would help the automobile dealerships continue the competitive reputation and business volumes performance which are critical to the City and its revenue base. With the exception of the utility user tax, virtually all other revenue streams have risen, some remarkably, since the prior base year of the 1999- 2000 study by HR&A. All material included herein is the sole responsibility of ER.A, which has the obligation to interpret the data provided to it from the multiple sources which are cited. Economics Research Associates Santa Monica Auto Dealerships ERA No. 15039 Page I-2 Section II AUTO SALES AND AUTO RELATED BUSINESS IN THE SANTA MONICA ECONOMY At the outset of the activity, the consultant prepared an inventory of contemporary auto dealerships in Santa Monica, in nearby Los Angeles, and in Culver City. These are as shown on Table II-1. Santa Monica is fortunate to host 22 brands, of which nine are in three multiple-brand dealerships. Santa Monica Boulevard from approximately Ninth Street to Nineteenth Street contains the vast majority of all the new car dealerships. There are also two dealerships on Wilshire Boulevard. Additionally, there are an estimated 12 new car dealerships which also hold used car sales licenses. ERA then requested information from the City of Santa Monica concerning the business m ix v olumes o f a ctivities. N on-confidential i nformation w as p rovided, w hich i s ~ shown on Table II-2. New car dealerships account for roughly 71.3 percent of all taxable sales in the combined auto sales, leasing, supplies, and repairs sector in the City. Used car sales dealerships account for only about 4.7 percent of this sector. Auto leasing entities, often housed directly within dealerships, account for a further 18.4 percent of taxable sales and use tax incomes within this combined auto-related sector. Auto supply stores, auto repair shops, and other auto services with taxable sales account for a combined 5.7 percEnt, as shown. Throughout this report~ different data sets are used, and no confidential information is divulged. The City of Santa Monica can and has provided explicit cumulative data for 2002 and early 2003. Similar data is not available for other cities. The State Board of Equalization releases comparative data roughly one year after the contemporary time period, and in different groupings of auto sales and services. Nevertheless, the reader can determine the relative scales of change in business volumes by assuming that State Board of Equalization data on auto dealers and auto supplies generally shows roughly 75 percent of the total flowing from new car deaierships which may atso hotd separate licenses for used car sales and auto services and repairs. Economics Research Associates Santa Monica Auto Dealerships ERA No. 15039 Page II-l Data acquired from Claritas packages information somewhat differently, and includes gasoline service stations, auto parking, and other different groups. Again, use of this information helps set benchmarks and relative proportions, but not uniformly comparative data sets. The firm evaluated the relative concentration of auto related business activities in the City and along the more concentrated Santa Monica Boulevard corridor. Text Table II-3 reports the findings from an assessment of census tract scale data provided commercially by Claritas. T he t able d istinguishes b etween t he a uto d ealers c oncentration a nd t he c itywide circumstance. The transaction values, in other words the sales volumes, on Santa Monica Boulevard and Wi~shire Boulevard are 88 percent of all retail activities estimated by Claritas. If the retail portion and the services portion are added together, total transaction values in the four census tracts are approximately 75 percent of all sales/transaction values citywide for auto-related business activities. Please note that the Claritas information comes from financial institution transactions which businesses and establishments have and which can be reliably tracked and reported on. This information is somewhat different from other data sources also utilized in this report. The value of the information is to gain an understanding of the relative scale or density of the activity. Comparison of one data set with another would not necessarily yield error, but would provide verification of relative scales and volumes only. To further compare the relative sizing of auto-related businesses and services, ERA printed out the entire city profile from the Claritas data, as is shown on Appendix 2. Generally, this information may be of quite significant value to the City and its economic development tracking system. Note that retail trade by automobile dealers and service stations shows roughly 78 establishments with 1,973 employees, doirig $715 million in annual transaction/sales activity. (ERA estimates that the new auto dealerships share of total employment is about 1,000 employees.) In the services sector, auto repair/services/parking has 181 establishments with 1,663 employees and about $156 million in estimated sales/transactions. Detailed sales, establishments, and employment in the retail and services sector are presented in Table II-4. That p recise d ata c ould then b e m easured a gainst t he c onsolidated d ata for t he entire C ity, w hich a re sh own o n T able II-5. A gain, n ote t hat t hese are e stimates a nd a re based principally on available records regarding financial institution transactional records. Economics Research Associates Santa Monica Auto Dealerships ERA No.15039 Page II-2 Next, ERA selected four census tracts, as shown on a map (Figure II-1) which frame the principal area in which the auto dealers are located. The Claritas data was then consolidated for the four census tracts as shown on Table II-6. The reader will observe the number of establishments, the employment, and the sales/transaction values under Automobile Dealers and Service Stations. (The service station portion is very modest.) Similarly, the auto repair/services/parking volumes, which are much less relatively speaking, are shown under Services. This verifies what ERA observed in the field concerning the dispersal of such services away from the Santa Monica Boulevard auto cluster corridor. On the other hand, it appears that a very substantial number of such services are actually aligned along the Lincoln Boulevard corridor to the south of Santa Monica Boulevard. Sales, establishments and employment data for all sectors in these census tracts are presented in Appendix III. A c onsolidation o f t he data f or t he f our c ensus t racts w hich c omprise t he a uto dealers area is shown on Table II-7. City of Santa Monica staff have recently provided a more defined estimate from other sources concerning the most probable contemporary employment on a citywide basis under NAICS methodology counts. The information suggests that since the first quarter of 2001, when motor vehicle sales and parts dealerships had 1,779 jobs; actual employment through the fourth quarter of 2002 appears to have fallen by roughly 230 employees to about 1,549 employees. These are citywide numbers. Gasoline service stations have experienced a similar decline from a total of 181 employees in the first quarter of the year 2001 to an estimated 125 employees in the fourth quarter of 2002, a much more significant proportional decline. The consultant then examined the 12-year experience track concerning sales tax permits, taxable sales, and proportions of taxable sales generated by automobile dealers and supplies in the City. This is as shown on Table II-8. The number of sales tax permits has actually stayed roughly the same over more than a decade. The taxable sales volumes, not adjusted for inflation, have gone up in absolute numbers by roughly 37 percent from 1990 to the year 2001. It should be noted that 1990 was a year of high sales, followed by a significant decline in sales with the onset of the early 1990s recession. The late 1990s enjoyed a remarkable run up in additional sales, again verified on the table. ERA also compared 12-year growth of auto-related taxable sales in the City of Santa Monica to Los Angeles County as whole as shown in Figure II-2. Though auto-related taxable sales have Economics Research Associates Santa Monica Auto Dea[erships ERA No.15039 Page II-3 followed a similar growth trend in Santa Monica and the County, the City has lagged behind the county in terms of the rate of growth in this sector. This is largely due to peripheral community growth (Santa Clarita, Lancaster/Palmdale) and reconcentrations (Hawthorne, Claremont, Glendora, Signal Hill). Note also that self organization into more aggressive area dealer associations and into Business Improvement Districts has been occurring elsewhere in Los Angeles County. ERA then compared the most recent published data from the State Board of Equalization for the first quarter of 2001 and the first quarter of 2002, as shown on Table II- 9. ERA also looked at Culver City for comparison purposes. While this information is not the most current (and indeed the City has provided much more current information, as was shown previously on Table II-2), it is apparent that Santa Monica is in a significant competitive circumstance as regards virtually all other dealership clusters and locations on the westside and the near north portion of the South Bay, especially in terms of sales volume. Recently available data for the Third Quarters of 2001 and 2002 for Santa Monica and Culver City is shown on Table II-10, defining a significant recent increase in auto sales in Culver City. The consultant then examined the relative importance of auto-related business volumes in terms of sales taxes as compared to the City's revenues in terms of the Genera] Fund and the total budget. ERA utilized the more recent State Controller's Annual Reports looking, with c ommon formats, at a Il California cities for the years 1998-1999 and 1999- 2000. During 1999-2000, the sales and use taY volumes which auto sales and auto supplies generated appear to have been roughly 17.6 percent of sales tax. Total sales and use taxes were roughly 17 percent of all general revenues in the City and 8.4 percent of total revenues. Thus, auto related sales are about 3 percent of general revenues and about 1.5 percent of total City revenues. We caution that slightly different percentages can be calculated by using different sources, as noted previously. As will be seen in a later section, however, the most recent information strongly suggests that automobile related sales in cities with auto dealer corridors in Southern California have become an essential part of municipal revenue performance during the past three years and are even more dynamic in the heavily induced auto sales environment since September 2001. Comparative data is available through the Third Quarter of 2002. Economics Research Associates Santa Monica Auto Dea[erships ERA No. 15039 Page II-4 All of the above data place the Santa Monica auto dealers in a somewhat clearer contemporary focus, providing an update to the scale of estimates made from the late 1990s and year 2000 in the prior HR&A report materials. The next sections define the emergence of contemporary competition and estimates of challenges which are forthcozning in the fairly near-term future. In summary, this section has verified the significant strength of the auto sales activities in Santa Monica concerning: • Business volumes • Employment • Municipal revenues At the same time, however, it is necessary to recognize that ongoing capture of market share and maintenance of employment and municipal revenues will be dependent upon resolution of the need for modernization and expansion in place of the existing dealerships in the City. Economics Research Associates Santa Monica Auto Dealerships ERA No. 15039 Page II-5 Table II-lA NEW CAR AUTO DEALERSHIPS IN SANTA MONICA AND THE COMPETITIVE MARKE7C In the Citv of Santa Monica Santa Monica Acura Steve Taub Audi Santa Monica ChevyBuick/Oldsmobile Santa Monica SAAB Santa Monica Ford Honda of Santa Monica2 Infiniti of Santa Monica Lexus of Santa Monica Santa Monica Lincoln/Mercury' Santa Monica Subaru' Santa Monica Mazda' Santa Monica Mitsubishi . Santa Monica Nissan Santa Monica BMW Toyota of Santa Monica WI Simonson Mercedes VW of Santa Monica Volvo of Santa MonicaZ (Showroom) Hornburg Jaguar 1717 Santa Monica Blvd. 1020 Santa Monica Blvd. 3223 Santa Monica Blvd. 1820 Santa Monica Blvd. 1230 Santa Monica Blvd. 1720 Santa Monica Blvd. 900 Santa Monica Blvd. 2450 Santa Monica Blvd. 1229 Santa Monica Blvd. 1301 Santa Monica Blvd. 1301 Santa Monica Blvd. 1501 Santa Monica Blvd 1599 Santa Monica Blvd. 1127 Santa Monica Blvd. 801 Santa Monica Blvd. 1626 Wilshire Blvd. 2440 Santa Monica Blvd. 1719 Santa Monica Blvd. 1601 Wilshire Blvd. (310) 829-1113 (310) 393-9922 (310) 828-4424 (310) 828-0200 (310) 451-1588 (800) 656-5420 (310) 394-1888 (888) 864-9135/640-8655 (310)393-9881 (310) 393-9881 (310) 393-9881 (310) 319-1344 (310) 998-2200 (310) 829-3535 (310) 394-6744 (310) 829-4511 (310) 273-4107 (310) 264-4943 (310) 315-7213 Note: • Total of 23+ brands; at least 9 brands are in 3 multi-brand dealerships. • The above inventory includes all dealers along Santa Monica Boulevard. In Citv of Los Angeles Buerge Ford Buerge Chrysler/Jeep Martin Cadillac/Pontiac/GMC Trucks 11800 Santa Monica Blvd. 11750 Santa Monica Blvd. 12101 W. Olympi~c Blvd. (310) 820-2631 (310) 820-2631 (310) 820-3611 Culver Citv Cluster Albertson Olds-Chevrolet Miller Honda Cuiver City Mike Miller Toyota Westside Volvo Culver City Mazda/Nissan/Subaru Culver City Pontiac/GMCBuick 4114 Sepulveda Blvd. 9055 Washington Blvd. 9077 Washington Blvd. 11201 Washington Blvd. 8810 Washington Blvd. 6101 Slauson Avenue (310) 398-5721 (310) 815-3888 (310) 559-3777 (310) 391-0445 (310) 599-4200 (310) 636-4800 'Same owner (Coastline). ZSame owner (Sonic). Source: Economics Research Associates. Table II-1B CITY OF SANTA MONICA USED CAR DEALERSHIPS • The City of Santa Monica reports that there were 23 used car dealership licensees in 2042. Based on CBA recent research, it appears that 11 of the used car sales licenses are held specifically by used car dealerships. Most of the other used car sales licenses are held by the new car dealerships. • Five Iicenses are located on Santa Monica Boulevard, held by used car dealerships. These are in addition to the new car dealers who also sell used cars. • One new car dealership on Wilshire Boulevard holds a used car dealership license, and another dealership holds a used car license on Olympic Boulevard. • About 50 percent of total used car sales licenses are held by the new car dealers. • It is roughly estimated that such dealerships probably account for about 70 percent and more of used car business sales volumes inasmuch as new car dealers select and sell later model higher value used vehicles. • The used car sales activities by the independent used car dealerships are located as follows: Firm Address 1 Sports of Santa Monica 1720 Santa Monica Boulevard 2 Omni Auto Trade 2703 Olympic Boulevard 3 Major Motor Cars 2932 Santa Monica Boulevard 4 Santa Monica Seaside Motors 1918 Lincoln Boulevard 5 Santa Monica Seaside Motors 2515 Lincoln Boulevard 6 Santa Monica Seaside Motors 2660 Lincoln Boulevard 7 Santa Monica Auto Sales 1630 Santa Monica Boulevard 8 Pacific Motors 860 Pico Boulevard 9 Kondo Motors 1124 Santa Monica Boulevard 10 Classy Auta Broker 3014 Lincoln Boulevard Source: City of Santa Monica and Economics Research Associates. Table II-2 SANTA MONICA AUTO DEALERS STUDY REVIEW OF AUTO SALES/LEASING/SUPPLIES/REPAIRS TAXABLE SALES LICENSES LOCATIONS 2002 DATA SOURCES "Business Mix" City Volumes Sales Tax (20021 Percent Revenues A. New Car Sales Dealerships $414,710,200 71.3% $4,147,102 28 licenses (7 dealers hold 17 accounts) 23 accounts are located on Santa Monica Boulevard B. Used Car Sales Dealershins $ 27,114,200 4.7% $ 271,142 23 licenses 9 accounts are on Santa Monica Boulevard 7 are on Lincoln Boulevard 3 are on Pico Boulevard C. Auto Leasing Entities $106,750,500 18.4% $1,067,505 641icenses (New auto dealers hold leasing licenses.) No locational data available l 8 accounts appear to be related to manufacturers D. Auto Supnlv Stores (Tires, Mufflers, Parts, etc.) $ 8,610,200 1.5% $ 86,102 25 licenses 8 on Lincoln Boulevard 5 on Pico Boulevard 2 on Wilshire Boulevard 2 on Santa Monica Boulevard E. Auto Repairs Shops/Services $ 24,504,200 4.2% $ 245,042 1101icenses 42 on Lincoln Boulevard 19 on Pico Boulevard 7 on Santa Monica Boulevard (may be new auto dealers) 7 on Braadway 6 on Olympic Boulevard 6 on Colorado Boulevard 4 on 14th Street 2 on Wilshire Boulevard (may be new auto dealers) TOTAL $581,689,300 100.0% $5,816,893 Note: Forty-one licenses, not including auto leasing entities, are located on Santa Monica Boulevard. Explicit data concerning the multiple licenses and business volumes generated by individual dealers is not available to Economics Research Associates; it is considered co~dential and is not to be used in public documents. Source: State of California, HDL, City of Santa Monica, and Economics Research Associates. Table II-3 CONCENTRATION OF AUTO-RELATED BUSINESS ACTIVITIES #15039 ERA has examined commercially available data about City of Santa Monica firms/establishments, employment, and transaction values (available at census tract estimate levels from Claritas for 2002/2003). The consultant looked at Citywide data, and at a cluster of 4 census tracts on both sides of Santa Monica Boulevard from Lincoln Boulevard to Centinela Avenue. This latter area captures most of the auto dealers along Santa Monica Boulevard. (Please note that this information packages data differently than the State Board of Equalization or the City of Santa Monica.) The information emerging from this analysis is as follows: Percent within Santa Monica Santa Monica Citywide Boulevard Boulevard Retail Auto Dealers and Service Stations Establishments 78 33 42% Employment 1,973 1,596 81% Transaction Values $715 M $627 M ~ 88% Services Auto Repair, Services, Parking Establishments 181 41 23% Employment 1,663 373 22% Transaction Values $156 M $30 M 19% Clearly, the new car dealerships along Santa Monica Boulevard drive the economics, employment, and transaction values. Note, however, that auto repairs and services are dispersed outside of "auto row", with substantial numbers of establishments along Lincoln Boulevard to the south. If the four auto dealer area census tracts are added together (auto retail and services), the cumulative scales, as compared to Citywide, are very substantial: Percent within Santa Monica Santa Monica Citywide Boulevard Boulevard Establishments Employment Transaction Values 259 74 29% 3,636 1,969 54% $871 M $657 M 75% A further unique circumstance is noted in the transaction value per employee - for the retail auto dealers and service stations. The $715 million in transaction values divided by the 1973 employees yields the highest business volume value of any per employee group in the City - $362,392 per year (2002). Table II-4 Santa Monica Census Tracts Establishments, Employees and Estimated Sales by Sector in the Retail and Service Sedors Standard Industrial Classification Description Code Retail Trade BUILDING MATERIALS & GARDEN SUPPLIES GENERAI. MERCHANDISE STORES FOOD STORES AUTOMOTIVE DEALERS 8 SERVICE STATIONS APPAREL & ACCESSORY STORES FURNITURE 8 HOME FURNISHINGS STORES EATING & DRINKING PLACES MISCELLANEOUS RETA~L Subtotal, Retail Services HOTEIS & OTHER LODGING PLACES PERSONAL SERVICES BUSINESS SERVICES AUTO REPAIR, SERVICES, & PARKING MISCELLANEOUS REPAIR SERVICES MOTION PICTURES AMUSEMENT b RECREATION SERVICES HEALTH SERVICES LEGAL SERViCES EDUCATIONAL SERVICES SOCIAL SERVICES MUSEUMS, BOTANICAL, ZOOLOGICAL GARDENS MEMBERSHIP ORGANIZATIONS ENGINEERING & MANAGEMENT SERVICES MISCELLANEOUS SERVICES Subtotal, Services 52 53 54 55 56 57 58 59 70 72 73 75 76 78 79 80 81 82 83 84 86 87 89 Estimated Establishments Employees Sales (~umber) (number) (S millions) 42 379 58 12 1,154 126 86 1,583 230 78 1,973 715 227 1,629 124 192 2.5~2 544 384 7,159 359 483 2,900 322 1,504 19,279 ~ 2,478 42 356 599 181 49 268 142 1,147 409 110 221 6 110 483 38 4,161 2,608 1,581 7,631 1,663 134 3,507 1,228 9,637 2,619 2,803 t ,966 56 822 4,247 176 40,678 102 62 1.021 156 14 601 143 718 470 339 140 1 81 584 10 4,442 Source: Ciaritas and Economics Research Associates, Inc. Tabie 11-5 Santa Monica Census Tracts Establishments, Employees and Estimated Sales by Sector Standard tndustrial Classification Description Agriculture, Forestry and Fishing Extraction Construction Manufacturing Transportation, Communications, Eletric Gas and Sanitary Services Wholesale Trade Retail Trade Finance, Insurance and Real Estate Senrices Public Administratiot~ Total Codes 01-09 10-14 15-17 20-39 40-49 50-51 52-59 60-67 70-89 90-99 Establishments Number % of Total 31 0.4% 7 0.1% 195 2.7% 243 3.4% 146 2.0% 238 3.3% 1,504 21.0% 541 7.6% 4,161 58.1% 99 1.4% 7,165 Empiovees Number % of Total 186 0.2% 46 0.1% 1,240 1.5% 2,700 3.3% 2,440 3.0% 4,052 5.0% 19.279 23.7% 7,617 9.4% 40,678 50.0% 3,107 3.8% 81,345 Estimated Sales Sales % of Total 5 0.0% 5 0.0% 305 3.0% 232 2.3% 276 2.7% 716 7.1% 2,478 24.6% 1,609 16.0% 4,442 44.1 °/, - 0.0% 10,068 Source: Claritas and Economics Research Associates, Inc. Figure II-1 AUTO DEALERS CENSUS TRACTS WITHIN THE CITY OF SANTA MONICA ` , . , ~ TT~,,,.,P. - , • ~ ~, . ,'. "` F ~ F , ~ 'd~x~' . ~ ~ '~~ ~~ ~i r t~l~, ~ ~ ~. . ~ ~M ~r ~ i . ~~ A ' ,~ ;, . t ' ' ` ~ . ti ~t r ~~ ~ ! ~~; ; RR ~ '~.~ i - t t ' S i ' ~ ~ C~~ . ~ ~~ ~~ V4 r` ~ ~~ f ~ ~~1r ~~. . ';~ . -+y ~ 7 ~~~ ~nF ~ ~~ y ~i,' .,r ~ t 'r ~ i t ~r ~ i i .a ~ I. ~ ' ~ ,rt ~~~ ~ ~~ ~ S 4~ ~ ~ ` ,; ~ ~ ~ '~ ~' ,i " a' '• S < ~r ~ ' ,f~ .. i u~` ~ n : y a 1 ~ ~- ~ . 3 1 , t ~..t~i ~Ytr,,~~4~y ~ f 3.~~. ~ ~~~ ~i ~ ~ r ~ ~ F '.I. ~ ~*:~ 2` ._l 1' j ~ ~'~i r { i 1. ~ `~~. M ~`l ~ J, :` l{ 1 `S` ~ } ' ~ ~f i~,.~ ' ' rr.:. AO ~ ,.. 3 ` M : ~ 1 ..' > r ~ ~~ t ,~~ip ~ r,~ . 5 0~ ~sk~~ t'd ~~ t~-~ 7 ~,,r~t~~ i ~~ ~i ~. ~, ~ ~, . ,~~ .~~ ~ ~ . ~ ~ :~i~f t;Gl 1~ ~.l~r 1 ~' ~~ fa~ ~ t i ~~ ~~! i Yw t 3 :. . 1 t.~' ~.. 1 '1~ ~ 'i.~ ~ I. (~ ^i 4 1 ~ .FK 4t~fi ~ .~~~r2F i ~'L~(~~t. ..:. ~ ~ 1 ~j t ~ t ~ li' .. ,ji ~~..ISI i ii~- Yf ~ ~~~ t ~ !. ~,~ ~ ~. r t a ' r~ i n y S ' t ! ! . a m ~ r'l ~I ~'~ ~f.~ y y5 ~.~!4 ~J 7 ~ ,. ~~ i~f i~ A . . . R ~ ~~1i : x ~t '~ ~ S 4~*f(i~ , ~ ~ ~ a a~ ° ~. ~.,. Y ~ ~.F ' rr ~ ~ A~ ~ ~ ~. Y r ~~y. . t n~ ( _,Y ~ + .:. ~ ~ A~ ,~ t, ., . .' F ~ ~ .- s ~ d ` ~.f~ 4~ y. : - ~ . " i ~~`_ Rr ~ ~ . ! ~;~t{ i c, I ~, W ~~ 'v~~_+,rF ,~~ yy~ t ~ , t ~~. `'.,~ f y,~,~ I r ~~~f; r.~J ` `~~: ~.: + ~I` ~ ~:~.:~ `r t ~ i~ , 1 a'~ ~ I' .1 t i ~ ~.~~r { ! ~ rti~ ~ ~ t.. l + ~ ~ r ~. rw I ,~~:9 ~" ~ ~ ~ ~ ~ .{"~_r.~q~i ~, r; ,, ~ v ~ .~+. * ~ s: ~ ` O~~' 1 ~ hr ~ E ~ ~, { . ,~ ~ t,' , 9 , ,~ ~, ~ i~;*ti~ ~'44}~~~ V ! . tt ~~ + ; " ~~ ~Y ~ ~ O~ °` ~ ~ ~ :. ~ ,~ ai~ ~{~ ~~.i 9 .• ~ ~ ~ ~ ~ ~ ,~ r I , r ~~ > -~~~ t i y ~ . ~ ~ ~~ f F: i~ r. (~ ~ c ~, t i ; i'' O ~ ~ y s r ~ ':R `1 ` ~e'~ '~ +{~ . t ~ S ,,~y r ( / ~ Y 1 tl~ ~ a~ ~ ~ :11 ~ A, r, . Y ~' ~ 4 ~ ~.'. ~.t 1 ~. / s ~~ ' `. ~ J . ~ t i;~ y ~~,.• ~':: ti~y f~-~:y'~r +f~ ~ .~.1i1 ir .~ ~r / °u ~ ' ° ~~ . i '._,, r-~. F~ `..-: : c ! ~ ~. ~ ~ x ~: ~ ~ . ~ : t ~:~ r i~. .s~~. i . ~1 ~ i ~ ~~ i ~ ~! 1 t i ~ 4 ~• ~ ' ,~/ I'.. {~ ~ f .1 ~ I 5+ ~ 6 ~ .~ ~ ~~ V S 7 . 1 ~~ f ' i ~ ~,~ ~ ' 4 ~ ~~r~ I . . { ~ ti ~~ ~ a ,r .t ~,/ •~ „ , - ~ i . . a r ~- ~' . , ~ ,~ t, `t `t ~}.r. ` i' '~ _ i ~y~ , ~ :' . ~ !. 4 Y ` 'f +j,. J .~ ~ ~ * t ~ : ~. f I ~ rt _ O . . ~. a t 1 . ;i R~ s j~ ~, ~ ~s ~~ t f 1E `"r's~a ~r . •~. f~ 1 ti r 9 ' ~'~ ~ , ~~ }i' +`J{ ~ ~ t + r ~ ~ t~ ~;~ ) 0 ,,~ ~•. r~ ~ vt;r y c '~~ ~~ ,~{ ` r » ~f 8'~i~~ ~1 ,~ ~ 4~. ,Ii t~' ~ k# ~r~ ir ~4~' ~.'~ y ~ ~ ~~ i Sy 3 .. ~, ;, e r 'C +. ~, r~ ~ ~ ~O ~ .:~ ` { : i. }, . ~£ y ~ ~ i '~ S; ti . FS' ~ A i. l~ ~ . ~.' ~ ~ ~ t t ~ ~"i'~ ~ ~t ~ a .` ` ~ ~ ~i F r '~ a4~ (~ 7 •~.f ~ ~ ~~~t ~~~.~ ' r dit~t f i ~II S ~} I +r.- ' ` i ~; ~~3' ., ~ ~ n' , ~t ~ wbF v~ ~ ~;F:. ~ ,.y , S : I ~ ~ .rd' ~ , ~ ~1 $ r ~ ~r' ~aw;r~. rN1~''e ~~, .~;' ~,"{~J.~ kA~c ..~t,F,it i~T t + : h -.: t~~~ . ~ ~ i~, ri ' ~f V 'i~~.~ i..r+~~~H 'r ~y`''S~~~'~~E `i~~) a7lr~'- x ti '~ , ~ ~` ' ;,R+~' •`~~~ `r' ~ , ~ , I ~~ ~ .I .~ e• r~~~.~ ~ ' 1~~ 1~ . . } 4, f~ ~. ~ ~N ~} a ~ ~ ~ ~ 4 ~ w ~ xk 1 ~ ~ i~ ~~~ % R ~ ~ ~A ), d 'Ctt`4 ~4~1 . FT~~t~ii ::~~ ~F .~: V ~~ ~~ f :. .•.ti i l. "" ~ til4 f~q~~~~ .•~ i t e*~ ~ t+ d i ~~~~~'~~, '~';f, , } f j ~ '' (~. 3 v ' t y s ~.~~'~ ~ I• I. ~ ~s 1 ~ r ~i ~1 Yy ~' , >~ t~y f ~ ~ ' rt pj. ~, ~ ~t. `1~~'IF ~~~. *F M~.. ~ ~ ~~ ' r li ~.~a R~ t.t'tJ~ a ~ C~1~ ~.-;r 3 t~. `,~~ { F i t . ~ . . t,' r n;~ ~ '~ , r ~ i i , ~ ~ ~ r ; A: t ~ . ~4 .,! f ..t q~4 K~~ ~ ~ S~ : :'Y ~. + ~yr r i~_~, t ~ ~.,`~ ~ i.~~~~ ~~.«. Y~ :r f~..ri !. 'lr ii~ ~ ~ ~k "~.1 r ~ . i ~ 1 - ~ ' 1: A, •~ . ~ ~ y . ~_. « i J 4 ~ [ ~ y i ~ ~ '.t~' . { ~l+l~~;t c tu..• .. + .l_ .}. .~,t _.+' t i . ~ ~ ~~ ~'~~.. + ~ d ~ ): s ~ .' ~ ~ ~' rty".., , ~ . ..j~ 1 i'a i *ii: ~ ~ `' „~ ~ t ~ c~ r. (. fi . ~ ~~ t ~r ~...ii~ i..~.:N~ t~a <<.tr~t ~ ~ . t, ~~ ~ i ~. K +~~ r ` : s. t~' ~'~ : ti l~ i{ .: ~ ' ~ ~ r .~~c~ ~' a ' ~~" ~ ~1 ~ ~E}/y,'r, N 1..~ ~~ ~;1 f ~p'~+'r ry ~a. ~';it ~ > ''. ' 1 ~ , ~ ~ I'f, ~t 1 ~i .. 1 . ~ ~ ~ ~ A , ~ . . ~ ~~a ~ .. ' ., ' 0.6 0 0.6 Milas ~ .r'~`~ ` , . ~~,rt,~~, .`r ~-~ L - ; ~,~,..., ; i. ~- °< Table II-6 Census Tracts' adjacent to Santa Monica Boulevard Establishments, Employees and Estimated Sales in the Retail and Service Sectors Standard Industrial Classification Estimated Description Code Establishments Employees Sates (number) (number) (S millions) Retail Trade BUILDING MATERIALS 8 GARDEN SUPPLIES 52 9 84 14 GENERAL MERCHANDISE STORES 53 2 17 2 FOOD STORES 54 8 176 29 AUTOMOTIVE DEALERS & SERVICE STATIONS 55 33 1,596 627 RPPAREL & ACCESSORY STORES 56 19 94 7 FURNITURE 8~ HOME FURNISHINGS STORES 57 49 637 147 EATING 8 DRINKING PLACES 58 72 1,096 56 MISCELLANEOUS RETAIL 59 87 760 109 Retail, Subtotal 279 ~4,460 991 Services HOTELS 8 OTHER LODGING PLACES 70 5 133 5 PERSONAL SERVICES 72 64 385 15 BUSINESS SERVICES 73 129 1,590 202 AUTO REPAIR, SERVICES, & PARKING 75 41 373 30 MISCELLANEOUS REPAIR SERVICES 76 13 47 6 MOTION PICTURES ~ 78 53 1,031 75 AMUSEMENT 8 RECREATION SERVICES 79 27 230 30 HEALTH SERVICES 80 660 6,074 402 LEGAL SERVICES 81 55 402 73 EDUCATIONAL SERVICES 82 22 384 42 SOCIAL SERVICES 83 54 480 31 MUSEUMS, BOTANICAL, ZOOLOGICAL GARDENS 84 - - - MEMBERSHIP ORGANIZATtONS 86 23 117 7 ENGINEERING 8 MANAGEMENT SERVICES 87 79 1,153 177 MISCELLANEOUS SERVICES 89 5 20 1 Services, Subtotal 1,250 ~12,419~ 1,096 Source: Claritas and Economics Research Associates, Inc. Note: 'Census tracts include 7015.02, 7016.02, 7017.01 and 7017.02. Table 11-7 Census Tracts' adjacent to Santa Monica Boulevard Establishments, Employees and Estimated Sales by Sector Standard Industrial Classification Establis hments Emplo yees Estimated Sales Description Codes Number % of Total Number % of Total Sales (Smillions) % of Total Agriculture, Forestry and Fishing 01-09 6 0.3% 42 0.2% 1 0.0% Extraction 10-14 2 0.1% 6 0.0% 1 0.0% Construction 15-17 41 2.3% 267 1.3% 56 2.0% Manufacturing 20-39 52 2.9% 332 1.6% 30 1.1% Transportation, Communications, Electric Gas and Sanitary Services 40-49 31 1.7% 323 1.6% 41 1.5% Wholesale Trade 50-51 46 2.6% 680 3.3% 123 4.5% Retail Trade 52-59 279 15.5% 4,460 21.6% 991 35.9% Finance, Insurance and Reat Estate 60-67 85 4.7% 1,973 9.6% 425 15.4% Services 70-89 1,250 69.4% 12,419 60.3% 1,096 39.7% Public Administration 90-99 10 0.6% 99 0.5% - 0.0% Total 1,802 20,601 2,764 Source: Claritas and Economics Researoh Associates, Inc. Note: 'Census tracts include 7015.02, 7016.02, 7017.01 and 7017.02. #15039 Table II-8 CITY OF SANTA MONICA AUTO DEALERS AND AUTO SUPPLIES SALES TAX PERMITS AND TAXABLE SALES 1990 1991 1992 1993 1994 1995 ]996 1997 1998 1999 2004 2001 Sales Tax Permits 77 77 74 ?6 82 75 74 71 74 78 80 74 Taxable Sales ($ Millions) $305.2 $244.3 $222.0 $230.7 $246.9 $269.9 $275.3 $3013 $328.8 $356.9 $429.2 $419.5 °/a of Total Retail Taxable Sales 26.6°/a 22.4% 20.7% 21.5% 22.0% 22.5% 21.4% 22.0°/a ~~ 22.8% 22.3% 23.9% 24.2% % of Total Taxable Sales 21.2°/a 18.0% 16.2% 16.7% 17.2% 17.1 % 16.4°/a 16.6% 17.3% 17.2% 18.5% 18.7% Notes: A) Taxable Sales not adjusted for inflation. B) Includes new cars, used cars, auto parts and supplies. C) The early 1990s recession is seen in the "valley of sales" from 1991 to 1994. D) Consistent growth from 1997 through 2001 is clear, even though the number of outlets consolidated. Sources: California State Board of Equalization, Taxable Sales in California (Annual Reports for 1990 through 2001). Fi~ure II-2 Auto Related Taxable Sales in the City of Santa Monica Vs. Los Angeles County 180 160 140 ~ ,-~~ 120 ~ a, ~ 100 ---City of Santa Monica ~ go - ~ - Los Angeles County a a~ ~ ~ 60 ~ Q ~ X 40 v v c 20 ~ • O N M d in ~O ~ a0 O~ O O~ O~ Q1 O~ O~ O~ O~ O~ CT ~ O O ~ Ol ~1 O~ O~ O~ 01 O~ O~ O~ O~ O O r- ~ .- •- •- •- •- e-- •-- ~ N N Note: The Above Index includes taxable sales from new cars, used cars, auto parts and supplies . ~- . . + ___ ~ . ~ = ~. .~~ . ~~. . ~. •~ ^ ~~.~ Source: Califomia State Board of Equalization and Economics Research Associates 15039 Table II-9 Auto Dealers & Auto Supplies SANTA MONICA AUTO DEALERSHIPS STUDY MOST RECENT AVAILABLE TAXABLE SALES DATA COMPARISONS (CITYWIDE) First Quarter 2001 Taxable Sales Permits (thousands) First Quarter 2002 Taxable Sales Permits (thousands) 76 $ 96,652 74 $103,173 Auto Dealers & Auto Supplies CULVER CITY (FOR COMPARISON) First Quarter 2001 Taxable Sales Permits (thousands) First Quarter 2002 Taxable Sales Permits (thousands) 38 $ 34,080 38 $ 42,055 Change Taxable Sales Permits (thousands) -2 +$6,521 (+ 6.7%) Change Taxable 5ales Permits (thousands) - +$7,975 (+23.4%) Note: This data reports auto dealerships and auto supplies stores cumulatively; it is not divisible. Soarce: California State Board of Equalization, 2001 and 2002, and Economics Research Associates. 15039 Table II-10 SANTA MONICA AUTO DEALERSHIPS STUDY MOST RECENT AVAILABLE TAXABLE SALES DATA COMPARISONS (CITYWIDE) Third Quarter 2001 and 2002 Third Quarter 2001 Taxa6le Sales Auto Dealers & Auto Supplies Auto Dealers & Auto Supplies Third Quarter 2002 Taxable Sales Change Taxable Sales Permits (thousands) Permits (thousands) Permits (thousands) 74 $105,214 66 $113,967 CULVER CITY (FOR COMPARISON) Third Quarter 2001 Taxable Sales Third Quarter 2002 Taxable Sales -S +$7,853 (+7.5%) Change Taxable Sales Permits (thousands) Permits (thousands) Permits (thousands) 37 $39,041 43 $51,496 +6 +$12,455 (+31.9%) Note: This data reports auto dealerships and auto supplies stores cumulatively; it is not divisible. Note: Culver City has achieved considerable market share recently in the larger LA County West Side. Source: California State Board of Equalization, 2001 and 2002, and Economics Research Associates. Section III MARKET CHARACTERISTICS AND COMPETITIVE CLUSTERS Economics Research Associates has worked on a number of auto malls, auto rows, and proposed large-scale projects and business improvement districts focused on auto retailing over the past 20 years. No business plan for an auto dealers corridor should be left in place for more than three to five years given the wild gyrations of sales and sales practice techniques. This was learned very specifically in the City of Indio in the 1990-1991 period when auto sales were in a significant recession. The firm correctly recommended no relocation of the contemporary auto row along Highway 111; with a warning that likely relocation to the I-10 Freeway frontage ~vould be appropriate once sales volumes returned and dealer financing capacities substantially improved. This has in fact happened now. Auto dealers corridors without freeway-adjacent visibility on which the firm has worked in the past include the following: • Firestone Boulevard in Downey • Main Street in Alhambra • Portions of Colorado Boulevard in Pasadena In each case, however, the regional freeway was less than 2 miles away and the auto row was located on a major arterial corridor well known in the region. This is the essential circumstance for the auto dealers in the City. ERA anticipates that the primary drive-in market is probably represented by a 15- mile radius from the Santa Monica auto dealers. This is possibly much larger if effective advertising and vehicle sales are conducted via the Internet by virtually all of the dealerships in the City. ERA does note the huge number of auto leasing entities which are located in the City; this appears to signal the likelihood of Santa Monica being highly active in regional competition and the capability of dealers and auto leasing entities to engage in fleet leasing. The essential challenge is that the City's auto dealerships must attract from the higher income households on the west side and along the Pacific Ocean Coast. This challenge of the geographic definition of the market area is fundamental; and the auto dealers Economics Research Associates Santa Monica Auto Dealerships ERA No. 15039 Page III-1 are obligated to find customers and to sell autos to those who live in the half-moon-shaped market hinterland. Santa Monica is foriunate to attract from the much higher income households in the Malibu coastal shelf to the northwest. As will be noted in the next section, the market competition in the immediately adjacent City of Los Angeles, along Santa Monica and Olympic Boulevards, is both close and of significant scale. Additionally, Culver City has ramped up the number and variety of franchises and dealerships over the past decade. Those with 20-year memories will recall the dispersal of individual franchise dealerships in the City of Los Angeles in the Westwood area, in Inglewood, and in the Crenshaw district. Most, if not all, of these dealerships have been consolidated and are no longer in such locations. More recently the City of Hawthorne has captured a new major Ford dealership and a multi-make General Motors dealership. The Ford and General Motors dealerships straddle the I-405 Freeway and have major regional place recognition. Coastal cities have significant challenges because they rely on immediate area residents and have half-moon-shaped hinterlands. Older cities which do not share the higher income households as market support, such as Long Beach, have lost significant numbers of dealerships which relocated farther into the hinterland and into adjacent communities. Thus, Signal Hill and Carson enjoyed a clustering of auto dealerships from the middle 1980s to the present. For Carson, adjacency to the 405 Freeway was essential. Economics Research Associates believes that competition for auto dealers and auto supplies will intensify throughout Southern California and that many cities (already very heavily reliant upon auto-related sales taxes) will invent new relationships with their auto dealers and related entities. An overview of some of the larger concentrations of auto sales on older auto dealers corridors (not immediately adjacent to freeways) which are very well known in Southern California is presented on Table III-1. Santa Monica, by comparison, is less reliant on automobile dealer and supply sales than Alhambra, Glendale, Downey, Whittier, and National City at this time. We have noted that other cities with significant auto dependency include Duarte, Industry, Claremont, and Ventura. Nevertheless, the examples shown in the following tables identify the likely intensity of continuing competition and the probability of further aggressive partnerships between cities and their auto malls/auto corridors/auto clusters. This information and point of view is presented by the consultant as a perspective for consideration by Santa Monica officials and the auto-related commercial businesses. Economics Research Associates Santa Monica Auto Dealerships ERA No. 15039 Page III-2 The consultant also extended the analysis to include comparison of the Second Quarters of 2001 and 2002 for the same cities. This is shown in Table III-2. Recent data from the California State Board of Equalization comparing the Third Quarters of 2001 and 2002 is shown in Table III-3. Generally, the trend suggested by the data appears to be one of even greater reliance on auto sales as a portion of municipal sales taxes revenues. Note, of course, that very substantial auto sales were being generated during 2002 by zero or very low interest rates and significant purchase price and lease cost reduction incentives. The national recession continued through 2002 (and indeed to the current moment in October 2003), with households remaining focused on home purchases and on auto acquisition as compared to other discretionary purchases. Please note that the data shown in Tables III-1, III-2, and III-3 does combine taxable sales for auto dealerships and auto supplies, as is reported by the California State Board of Equalization. It is not possible to specifically separate the auto dealership sales from the auto supplies on a city-by-city comparison basis without explicit access to confidential data. Nevertheless, the relative scale of the reported sales by auto dealers and auto supplies sales stores provides a trustworthy comparison of both actual volumes and market trends due primarily to auto dealership business activity. Economics Research Associates Santa Monica Auto Dealerships ERA No. 15039 Page III-3 Table III-1 SELECTED CITIES COMPARATIVE TAXABLE SALES AUTO DEALERS AND AUTO SUPPLIES Change Full Year 18` Quarter Full Year lst Quarter 1'` Quarter 2001 to 1't Quarter 2002 2000 2001 2001 2002 Number Percent Santa Monica Pernuts Sales ($000) Percent of Retail Sales Percent of All Taxable Sales Alhambra Permits Sales ($000) Percent of Retail Sales Percent of All Taxable Sales Downey Pernuts Sales ($000) Percent of Retail Sales Percent of All Taxable Sales Pasadena Pernuts Sales ($000) Percent of Retail Sales Percent% of All Taxable Sales Glendale Pernuts Sales ($000) Percent of Retail Sales Percent of All Taxable Sales 80 76 74 74 2 -2.6% $429,191 $ 96,652 $419,497 $103,173 $ 6,521 6.7% 23.9% 23.3% 24.2% 25.7% 2.4% - 18.5% 17.9% 18.7% 19.8% 1.9% - 46 46 50 53 7 15.2% $426,917 $ 98,603 $433,932 $103,865 $ 5,262 5.3% 46.5% 47.1% 46.5% 47.6% 0.5% - 41.4% 41.7% 41.2% 42.1% 0.4% - 77 74 80 85 ~ 11 14.9°/a $352,361 $ 81,463 $357,298 $ 97,802 $16,339 20.0% 37.6% 38.0% 37.4% 42.2% 4.2% - 31.2% 31.2% 31.3% 35.0% 3.8% - 75 76 79 80 4 5.3% $411,536 $ 96,639 $477,218 $109,613 $12,974 13.4% 24.3% 24.3% 24.2% 26.1% 1.8% - 16.9% 16.6% 16.8% 18.2% 1.6% - 129 125 129 118 - 7 - 5.6 $Sb9,322 $144,853 $631,465 $159,147 $14,294 9.9% 30.2% 31.8% 31.9% 35.2% 3.4% - 23.5% 25.4% 25.6% 28.0% 2.6% Table III-1 Continued) Change Full Year 1'` Quarter Full Year 1g` Quarter 1'` Quarter 2001 to ls` Quarter 2002 2000 2001 2001 2002 Number Percent Whittier Pernuts 86 85 86 87 2 2.4% Sales ($000) $153,500 $ 32,850 $147,753 $ 36,778 $ 3,928 12.0% Percent of Retail Sales 25.9% 23.8% 25.0% 26.9% 3.1% - Percent of All Taxable Sales 21.1% 19.5% 20.4% 20.9% 1.4% - National City Permits 97 88 91 93 5 5.7°/a Sales ($000) $454,838 $116,720 $486,929 $133,748 $17,028 14.6% Percent of Retail Sales 44.3% 46.9% 45.5% 50.5% 3.6°l0 - Percent of All Taxable Sales 38.6% 40.2% 39.5% 44.1% 3.9% - HunNngton Beach Pernuts 114 119 120 130 11 9.2% Sales ($000) $408,833 $ 91,872 $396,889 $100,136 $ 8,264 9.0% Percent of Retail Sales 24.1 % 24.4% 24.1 % 26.0% 1.6% - Percent of All Taxable Sales 17.5% 18.4% 18.6% 20.8% 2.4% - Culver City Permits 42 38 37 38 - - Sales ($OOOj $153,958 $ 34,080 $151,381 $ 42,055 $ 7,975 23.4% Percent of Retail Sales 15.0°/a 14.7% 14.9% 18.0% 3.3% - Percent% of All Taxable Sales 11.9% 11.5% 11.9% 14.3% 2.4% - Beverly Hills Permits 24 25 25 30 5 20.0% Sales ($000) $228,818 $ 51,808 $235,936 $ 61,044 $ 9,236 17.8% Percent of Retail Sales 17.2% 17.1% 18.8% 20.4% 33% - Percent of All Taxable Sales 13.4% 13.1% 14.6°/a 15.8% 2.7% - Note: Other cities with significant dependency on auto sales include Duarte, Industry, Claremont and Ventura. Sowrce: Economics Research Associates and California State Board of Equalization. #15039 Table III-2 SELECTED CITIES MOST RECENTLY AVAILABLE COMPARATIVE TAXABLE SALES AUTO DEALERS AND AUTO SUPPLIES Change 2nd QU'sltteC Z~d QUBttei 2001-2~02 2001 2002 Number Percent Santa Monica Sales ($000) $107,070 $102,206 - $ 4,864 - 4.5% % of Retail Sales 24.4% 24.0% - 0.4% % of All Taxable Sales 18.9% 183% - 0.6% Alhambra Sales ($000) $109,670 $111,425 $ 1,755 1.6% % of Retail Sales 46.7% 47.2% 0.5% % of All Taxable Sales 41.7% 41.4% - 0,3% Downey Sales ($000) $ 87,311 $ 97,368 $10,057 11.5% °/a of Retail Sales 36.6% 38.9% 23% % of All Taxable Sales 30.3% 323% 2.0% Pasadena Sales ($000) $105,564 $113,622 $ 8,058 7.6% % of Retail Sales 25.0% 25.3% 0.3% % of All Taxable Sales 17.1% 17.3% 0.2% Glendale Sales ($000) $152,035 $157,793 $ 5,758 3.8% % of Retail Sales 31.0% 32.8% 1.8% % of All Taxable Sales 24.4% 26.4% 2.0% Whittier Sales ($000) $ 38,003 $ 40,878 $ 2,875 7.6% % of Retail Sales 25.1% 27.1% 2.0% % of All Taxable Sales 20.7% 21.9% 1.2% National City ' Sales ($000) $126,576 $131,677 $ 5,101 4.0% % of Retail Sales 46.9% 47.7% 0.8% % of All Ta~cable Sales 40.6% 41.2% 0.6% Huntington Beach Sales ($000) $103,453 $103,549 $ 96 0.1 % % of Retail Sales 243% 23.7% - 0.6% % of All Taxable Sales 18.8% 19.2% 0.4% Table III-2 (Continued) , Change 2°a Quarter 2"d Quarter 2001-2002 Z001 2002 Number Percent Culver City Sales ($000) $ 35,101 $ 45,936 $10,835 30.9% % of Retail Sales 14.6% 17.8% 3.2% % of All Taxable Sales 11.5°/a 14.4% 2.9% Beverly Hills Sales ($000) $ 61,243 $ 66,041 $ 4,798 7.8% % of Retail Sales 19.7% 21.4% 1.7% % of All Taxable Sales 15.2% 16.5% 1.3% Notes: 1) Several of the Cities had dealer closures, reopenings, mergers of franchises via consolidation, etc. 2) Second Quarter 2001 preceded 9/11/O1; Second Quarter 2002 was in the midst of significant offers of zero percent on very low interest rates from manufacturers as well as purchase price and lease costs discountslcash back offers. Sources: California State Board of Equalization (Taxable Sales in California 2"d Quarters 2001 and 2002), and Economics Research Associates. Table III-3 SELECTED CITIES COMPARATIVE TAXABLE SALES AUTO DEALERS AND AUTO SUPPLIES Change Third Quarter Third Quarter 2001-2002 2001 2002 Number Percent Santa Monica Permits 74 66 - 8 -10.8% Sales ($000) $105,214 $113,967 +$ 7,583 + 7.5% Percent of Retail Sales 24.7% 25.2% +0.5% Percent of All Taxable Sales 18.8% 19.8% +l .0% Alhambra Pernuts 50 58 + 8 +16.0% Sales ($000) $116,307 $132,399 +$16,092 +13.8% Percent of Retail Sales 48.2% 51.6% +3.4% Percent of All Taxable Sales 42.8% 46.1% +3.3% Downey Permits 80 91 +11 +13.8% Sales ($000) $ 92,779 $ 102,891 +$10,112 +10.9% Percent of Retail Sales 39.2% 41.5% +7.3% Percent of All Taxable Sales 33.0% 35.0% +2.0% Pasadena Pernuts 79 77 - 2 - 2.5% Sales ($000) $103,214 $123,822 +$20,608 +20.0% Percent of Retail Sales 25.0% 27.4% +2.4% Percent% of All Taxable Sales 17.6% 19.3% +1.7% Glendale Pernuts 129 118 -11 - 8.5% Sales ($000} $160,761 $173,266 +$12,505 + 7.8% Percent of Retail Sales 33.8% 35.2% +1.4% Percent of All Taxable Sales 26.8% 28.7% +l .9% Whittier Pernuts 86 81 - 5 - 5.8°/a Sales ($000) $ 36,516 $ 46,288 +$ 9,772 +26.8% Percent of Retail Sales 25.6% 30.6% +5.0% Percent of All Taxable Sales 20.7% 24.0% +3.3% National City Pernuts 91 94 + 3 + 3.3% Sales ($000) $118,090 $143,684 +$25,594 +21.7% Percent of Retail Sales 45.2% 49.0% +3.8% Percent of All Taxable Sales 39.3% 43.0% +3.7% Table III-3 (Continued) ~ Change Third Quarter Third Quarter 2001-2002 2001 2002 Number Percent Huntington Beach Pernuts 120 139 +19 +15.8% Sales ($000) $ 95,855 $112,896 +$17,041 +17.8% Percent of Retail Sales 23.0% 25.1 % +2.1 % Percent of All Taxable Sales 39.3% 43.0% +3.7% Culver City Permits 37 43 + 6 +16.2% Sales ($000) $ 39,041 $ 51,496 +$12,455 +31.9% Percent of Retail Sales 16.1% 19.9% +3.8% Percent of All Taxable Sales 12.8% 15.8% +3.0% Beverly Hills Pernuts 25 25 - - Sales ($000) $ 59,906 $ 67,546 +$ 7,640 +12.8% Percent of Retail Sales 24.8% 22.7% +1.9% Percent of All Taxable Sales 16.1% 17.9% +1.8% Notes: A) September 11, 2001, occurred during the Third Quarter of 2001, with auto sales recovery incentives kicking in later in 2001. B) Third Quarter 2002 was "full bore" incentives. C) The ongoing national recession was cumulatively greater in Third Quarter 2002, with continuing huge job losses. Sources: Califomia State Board of Equalization, TczYable Sales in California, and Economics Research Associates. Section IV COMPARISON OF 2001 REPORT AND CONTEMPORARY FINDINGS HR&A prepared a comprehensive report for the Santa Monica Auto Dealers Association which was available in early 2001. Much of the economic data defined information from 1996 into the late 1990s and through portions of the year 2000. The Economics Research Associates subcontract with CBA has focused on 2002 and early 2003 circumstances. It is remarkable to find the similarity of data and the continuation of relative efficiency of the automobile dealers along Santa Monica Boulevard as well as the two dealers on Wilshire Boulevard. In other words, despite the constraints of tight land parcels, the scale of business activity has actually grown. Some of this, of course, relates to the exceptional incentives which have been provided since late 2001 by virtually all auto manufacturers through their dealerships. The HR&A study of ten dealer "case studies" defined the on-site land areas and the number of employees. CBA defined contemporary data in 2003 for eight of the dealers, amving at virtually the same employee density for total land area available and the relative amount of active/in-use floor areas. There was less than 10 percent variation in the two assessments. Accordingly, ERA then turned to more recent City data and employment estimates to adjust the information to the circumstances of the ongoing recession. Some of the employment in auto supplies has declined. The relative distribution between dealership employees engaged in marketing sales, leasing, and management remains at about 35 percent, with employment in services and repairs at about 65 percent of employees. Overall, ERA estimates that the Santa Monica auto dealers riow have roughly 1,000 employees in total in the City. This does not include the independent used car dealers or the independent auto services, auto repairs, and auto supplies shops which are located elsewhere in the City. The recent rise in sales during 2002 and the first three quarters of 2003 indicates the very high level of business volumes on a per-employee basis, which should be of significant interest and importance to the City of Santa Monica. Economics Research Associates San1a Monica Auto Dealerships ERA No.15039 Page N-1 The employment densities, based upon a survey of land parcels and floor space, is shown on Table IV-1. The information regarding total number of contemporary employees is shown on Table N-2. ERA has noted elsewhere that the constrained parcels utilized by the new car dealerships for all of their activities prevent the capacity to roll out all of the new vehicle types which are being generated by virtually all of the manufacturers. It would appear, given the constraints of the Santa Monica Boulevard frontages and contemporary land use patterns that identification of innovative ways in which to create additional on-site capacities within existing parcels is an imperative which is much in the interests of the auto dealers and the City itself. ERA has noted the "vertical" element of dealership facilities, including services and repairs, in the San Fernando Valley in several instances. ERA also notes an incremental change in circumstances regarding the consolidation of multiple franchises, urged by the big three manufacturers (Ford, GMC, and Daimler-Chrysler). Additionally, it is useful to note that noncontiguous multi jurisdiction dealership franchises are now held by the same management umbrella firms, including Miller, Keyes, Power, Galpin, Vista, and others. Some of these ventures actually originated in the late 1980s and early 1990s in Culver City as existing dealership corporations branched into the San Fernando Valley and elsewhere. It should be anticipated that additional activity of this type, including some site consolidation, may occur in the future, particularly on the periphery of the City of Santa Monica. In summary, the excellence of the HR&A report, which has served as a benchmark for the contemporary analysis, is noted. The principal changes since early 2001 have been the impacts, both positive and negative, of the national recession, the surge in auto sales because of manufacturer inducements, and the relative ongoing but constrained performance efficiencies of the Santa Monica auto dealers. Economics Research Associates Santa Monica Auto Dealerships ERA No. 15039 Page IV-2 Table IV-1 SANTA MONICA AUTO DEALERSHIPS EMPLOYMENT DENSITY BY LAND AREA HR&A Studv (20001-10 Dealer Case Studies • On-site land area - 613,750 s.f. = 14.09 acres • Estimated employees - 832 • Off-site land areas (not completely recorded) -144,500 s.f. = 3.32 acres • Calculated employee density for total land area-17.41+ acres = 47.8 jobs/acre CBA Data (2003) - Comparing Site Areas and Emplovment, for 8 Dealers • On-site land area-495,277 s.f. = 11.37 acres • Estimated employees - 531 • Calculated employee density for total land area - 46.7 j obs/acre The comparison yields a range of job density equivalent to 1 job per 910 to 932 s.f. of land area. BY ON-SITE STRUCTURE FLOOR AREA HR&A Studv (2000) -10 Dealer Case Studies • All floor areas - 373,742 s.f. ~ Yields 449 s.f./employee for 832 employees CBA Data (2003), for 8 Dealers • Floor areas-261,000 s.f. • Yields 491 s.f./employee for 521 employees 15039 The comparison shows a less than 10% variation. Relative levels of efficiency of site uses appears to be continuing. _ Source: HR&A, CBA, and Economics Research Associates. Table IV-2 SANTA MONICA AUTO DEALERSHIPS STUDY ADDITIONAL INFORMATION ESTIMATED TOTAL NEW AUTO DEALERSHIP EMPLOYEES • CBA found 728 employees in 9 dealerships (2003) of 14 total. • HR&A found 832 employees in 10 dealership case studies (2000). • ERA estimates a total of 1,100t employees in new car dealerships. DISTRIBUTION OF EMPLOYMENT TYPES 15039 • HR&A estimated 35% of dealership employees were engaged in marketing, sales and leasing, and management, and 65% of employees were assigned to services and repairs in 2000. • ERA found similar distribution in prior studies of auto rows and malls in Indio, Alhambra, Ventura, and Thousand Oalcs (1990-2001). • It is likely that the contemporary portions in Santa Monica are now roughly as follows: - Employment in marketing, sales and leasing, and management @ 35% = 385± - Employment in services and repairs @ 65% = 715± • Some reduction in overall employment in motor vehicle sales and auto parts sales has been going on in 2001 and 2002, with job consolidation and loss at about 10% over the past two years. This could mean that Santa Monica auto dealers now have about 1,000 emplayees, with 350 in sales and 650 in services and repairs. • Independent used car dealers and independent auto services and auto repairs shops aze not included in these estimates. _ Source: HR&A, CBA, City, and Economics Research Associates. Section V ANTICIPATED FUTURES This section briefly overviews challenges and opportunities into the future. Two text tables, prepared by the consultant, comment on the most recent past and define evolving circumstances over the n ext three to five y ears. Auto sales activity c hanges are noted on Table V-1. A field review of the alignment of the Santa Monica auto dealerships along Santa Monica Boulevard gives the clear indication of multiple relatively small dealerships, most with service facilities, and some with associated used car lots. The range of sites, generally concentrated between Ninth and Nineteenth Streets, gives the clear impression of tight spaces, customer parking challenges, and a pathfinder's corridor. As compared to the emergence of large auto malls and wider corridor/boulevard auto rows, Santa Monica Boulevard's new auto shopping experience might be considered as a boutique dealership corridor. This is not necessarily a negative observation inasmuch as the boulevard continues to attract very substantial sales and apparently high customer allegiance. The continuing introduction of newly differentiated vehicle types by the manufacturers does challenge auto row dealers to find/create more space on existing properties. However, sales and servicing volumes are clearly constrained. In this regard, ERA notes the multiple sequence of activities in Table V-2 concerning anticipated futures. Each of these twelve noted items should be carefully considered over the next three to five years as we emerge during the next six months from the past 24 months of intensely induced sales by the manufacturers. Maintaining sales volumes at new car dealerships in Santa Monica will be intensively challenged and probably can survive only if reputational recognition of quality of sales and service can be aggressively and successfully marketed throughout the 10- to 15-mile radius in West Los Angeles County. If the customer can see the evolving newly arriving models conveniently in the Santa Monica dealerships, the market can be held. ERA does believe that this is likely, given the strength of household and personal incomes in this region and the menu of vehicle types and prices which should continue within the City of Santa Monica. The consultant does expect that there will be further dealership/franchise consolidations by multiple dealership corporations. This may strengthen the capability of the dealerships in the City and its adjacent communities to negotiate improvements and capacities which are needed. Economics Research Associates Santa Monica Auto Dea[erships ERA No. 15039 Page V-1 Table V-1 SANTA MONICA AUTO DEALERSHIPS STUDY AUTO SALES CHANGES 2001-2003 ~ 1) Ongoing National Recession, clearly evident by spring 2401 (still underway through October 2003). 2) The September 11, 2001 National Emergency temporarily impacted auto sales further. 3) Onset of 0 percent interest rate inducements by most major auto manufacturers after October 2001. (Still being offered through September 2003.) 4) Proportional change in percentage of new leased autos compared to purchased autos. What was approaching 33 percent (all leased new autos) has now fallen back to less than 20 percent - because of the combined rebates and 0 percent auto loan inducements. By summer, 2003, leasing as a portion of new auto transactions had rebounded to 25+ percent. 5) Introduction of "hybrid" vehicles has captured interest and sales; and will grow (Honda and Toyota already have vehicles in the market, and Ford will enter the market in 2004). Toyota will deliver its second generation Prius in early 2D04. 6) Recent model used car sales have fallen in the face of the new car rebates and `0 percent' interest rate incentives. 7) More new design vehicle models coming very rapidly into the market: A) Nissan B) Chrysler part of Daimler Chrysler C) Other 8) Internet shopping and sales appear to continue to grow, but most of the auto sales delivery growth is usually attached to `brick and mortar' dealerships on the ground. The autos are picked up from or delivered from the dealerships. 9) Within Santa Monica, there have been numerous relocations of dealerships since 2000 (Saab, Volvo, Porsch~--closed). 10) All auto dealer and auto supplies taxable retail sales have been moving above 25 percent of all City of Santa Monica taxable retail sales, according to most recent data available to the City for full-year 2002 from the California State Board of Equalization data. 11) More manufacturer inducements that include long-term (4- to 5-year) service warranties, reducing repair and service expenditures by consumers. Source: Economics Research Associates. Table V-2 ANTICIPATED FUTURES 1. Continuing franchise consolidation by the "Big 3". We should expect Ford, GM, and Daimler- Chrysler to continue consolidation of separate brands/franchises, particularly in urban peripheral and freeway-adjacent locations. 2. Expect competition from the new "jump-in" locations on the "South Bay Curve" of the 405 Freeway - specifically the huge new Ford store at Rosecrans (east side) and the multi-franchise GM campus on the west side, both in Hawthorne. Even though farther away, the price points and the larger inventories will compete aggressively. District branding and marketing will continue to grow. Van Nuys Auto Row is its own BID, formed three years ago, and literally flagged as a corridor - as one example. 4. Consolidated dealerships will continue - as seen in the massing of franchises achieved by Auto Nation, including the example at Santa Clarita. 5. Cities are getting more comfortable with sales tax sharing mandated by State law, if they can successfully lure other existing dealerships into their jurisdiction. Additionally, some Counties are prepared to cut deals on annexations for new dealership construction with negotiated sales tax splits (e.g. Indio and Riverside County). 6. Higher VLF charges by the State, now anticipated to start on 10/1/03, may or may not help the State maintain revenue flows to Cities. Conversely, the higher costs may increase the number of leases as customers seek to control monthly outlays. Most recent experience since October 1, 2003, shows a dramatic dropoff in new auto sales during October 2003 because of the rise in the vehicle license fee. 7. Brand clustering of U.S. and European vehicle lines is occurring in selected larger dealer locations. Examples include GM and Saab (Casa de Cadillac) and Ford-Jaguar-Volvo (Galpin). 8. "Distance Leasing", practiced by growing numbers of individuals and firms, where the customer picks up the vehicle (or it is delivered) previously sight unseen and usually not test driven, will continue to grow. 9. Auto manufacturing "overcapacity" is now identified as a key consideration in much of the developed world - which will likely result in even more competitively priced cars, pickups, and SiJVs. 10. High-end brands such as BMW now plan to shortly introduce less expensive and more compact models while marketing the brand quality. 11. Vehicles, across the board, aze becoming equipped with new modes of entertainment, including the relatively new XM Radios (satellite signals). 12. More product types (array of differentiated vehicles at individual dealerships) means congestion on Santa Monica auto row, unless the City and the dealers find creative ways to increase space on existing properties. If the customer can't see it in Santa Monica, the customer will go elsewhere. Source: Economics Research Associates. Appendix 1 RESEARCH DATA SOURCES In the course of preparation of this initial economic and fiscal assessment, Economics Research Associates interviewed a number of individuals familiar with the related data and data sources. We also were able to capture information from a variety of data series which are regularly published by the State of California and other entities. The listing of sources is as follows: • California State Board of Equalization, Taxable Sales in California (Sales and Use Tax), reported annually and quarterly. • Field visits and windshield surveys of conditions in order to verify listings of dealers and activities on Santa Monica Boulevard as well as Wilshire Boulevard, and also the extraordinary cluster of services, repairs, supplies, etc., along Lincoln Boulevard. This survey activity was conducted by ERA on several occasions, including weekday evenings and Saturday midday visits. • Essential information regarding sales tax licenses and types was provided by the City of Santa Monica from its database. • Information provided to the City regarding sales taxes by its consultant, HDL. • Inputs from dealer interviews conducted by Cotton/Bridges/Associates as a part of the overall assignment. ~ The annual Cities Report, prepared and published by the California State Controller, showing revenues and costs in common formats. ~ Data regarding number of establishments, employment volumes, . and transactionaUsales estimates made available by Claritas, from tracking of financial information. This is available on a census tract basis. Other information provided in this report comes from the experience of the consultant team w orking on assignments c oncerning numerous a uto malls, auto rows, and other clusters of auto-related activity conducted over the past 25 years. Consulting assigmments since 1990 have included the following communities: Economics Research Associates Santa Monica Auto Dealerships ERA No. 15039 Page A-1 • City of Indio, California • City of Henderson, Nevada • City of Ventura, California • City of Fillmore, California • City of Pasadena, California • City of Thousand Oaks, California Additionally, ERA has often worked with dealerships and groups of dealers, as follows: • Ontario, California • Upland, California • Montebello, California • Carson, California • Indio, California (again, 2003) Economics Research Associates Santa Monica Auto Dealerships ERA No. 15039 Page A-2 Appendix 2 Santa Monica Census Tracts Establishments, Employees and Estimated Sales by Sector Standard fndustrial Classification Estimated Description Code Establishments Employees Sales (number) (number) (S millions) Agriculture, Forestry and fishing ~ AGRICULTURAL PRODUCTION-CROPS 01 - - - AGRICULTURAL PDTS-LIVESTOCK 8 ANIMAL S 02 - - - AGRICULTURAL SERVICES 07 30 185 5 FORESTRY 08 - - - FISHING, HUNTING, 8 TRAPPING 09 1 1 - Extraction METAL MINING 10 - - - COAL MINING 12 - - - OIL 8 GAS EXTRACTION 13 5 33 4 NONMETALIIC MINERALS, EXCEPT FUELS 14 2 13 1 ~onstruction GENERAL BUILDING CONTRACTORS 15 92 618 207 HEAVY CONSTRUCTION CONTRACTORS 16 2 23 3 SPECIAL TRADE CONTRACTORS 17 101 599 95 Manufacturing FOOD & KINDRED PRQDUCTS 20 5 58 6 TOBACCO MANUFACTURES 21 - - - TEXTILE MILL PRODUCTS 22 2 9 - APPAREL 8~ OTHER TEXTILE PRODUCTS 23 8 81 7 , LUMBER & WOOD PRODUCTS 24 1 7 1 ' FURNITURE & FIXTURES 25 5 82 6 PAPER & ALLIED PRODUCTS 26 3 84 6 PRINTING & PUBLISHING 27 124 989 78 CHEMICALS 8 ALLIED PRODUCTS 28 5 55 5 PETROLEUM & COAL PRODUCTS 29 - - - RUBBER 8 MISC. PLASTICS PRODUCTS 30 5 120 12 LEATHER 8 LEATHER PRODUCTS 31 - - - STONE, CLAY, 8 GLASS PRODIlCTS 32 4 38 5 PRIMARY METAL INDUSTRIES 33 2 16 2 FABRICATED METAL PRODUCTS ~ 34 12 86 • 9 INDUSTRIAL MACHINERY & EQUIPMENT 35 13 91 8 ELECTRIC 8 ELECTRONIC EQUIPMENT 36 12 439 33 TRANSPORTATION EQUIPMENT 37 10 164 23 INSTRUMENTS & REIATED PRODUCTS • 38 12 261 20 MISCELLANEOUS MANUFACTURING INDUSTRIES ~ 39 20 120 11 Transportation, Communications, Eletric Gas and Sanitary Services RAILROAD TRANSPORTATION 40 - - - LOCAL 8 INTERURBAN PASSENGER TRANSIT 41 15 433 25 TRUCKING 8 WAREHOUSING 42 11 117 11 U.S, POSTAL SERVICE 43 8 210 5 WATER TRANSPORTATION 44 3 35 3 TRANSPORTATION BY AIR 45 13 122 13 PIPE LINES, EXCEPT NATURAL G.4S 46 - - - TRANSPORTATION SERVICES 47 57 357 111 COMMUN ICATION 48 32 1,051 94 ELECTRIC, GAS, & SANITARY SERVICES 49 7 115 14 Wholesale Trade WHOLESALE TRADE-DURABLE GOODS 50 174 3,339 575 WHOLESALE TRADE-NONDURABLE GOODS 51 64 713 141 Retail Trade BUILDING MATERIALS 8 GARDEN SUPPLIES 52 42 3~9 58 GENERAL MERCHANDISE STORES 53 12 1,154 126 FOOD STORES 54 86 1,583 230 AUTOMOTIVE DEALERS d~ SERVICE STATIONS 55 78 1,973 715 APPAREL 8 ACCESSORY STORES 56 227 1,629 124 FURNITURE & HOME FURNISHINGS STORES 57 192 2,502 544 Appendix 2 Santa Monica Census Tracts Establishments, Employees and Estimated Sales by Sector Standard Industrial Classification Description Code EATING ~ DRINKING PLACES MISCELLANEOUS RETAIL Finance, Insurance and Real Estate DEPOSITORY INSTITUTIONS NONDEPOSITORY INSTITUTIONS SECURITY & COMMODITY BROKERS INSURANCE CARRIERS INSURANCE AGENTS, BROKERS 8 SERVICE REALESTATE HOLDING 8 OTHER INVESTMENT OFFICES Services HOTELS & OTHER LODGING PLACES PERSONAL SERVICES BUSINESS SERVICES AUTO REPAIR, SERVICES, & PARKING MISCELLANEOUS REPAIR SERVICES MOTION PICTURES AMUSEMENT & RECREATION SERVICES HEALTH SERVICES LEGAL SERVICES EDUCATIONAL SERVICES SOCIAL SERVICES MUSEUMS, BOTANICAL, ZOO~OGICAL GARDENS MEMBERSHIP ORGANIZATIONS ENGINEERING 8 MANAGEMENT SERVICES MISCELLANEOUS SERVICES . Public Administretion PUSLIC ADMINISTRATlON (SIC 90-97) NONCLASSIFIABLE ESTABLISHMENTS TOTAL 58 59 Estimated Establishments Employees Sales (number) (number) (S millions) 384 7,159 359 483 2,900 322 60 49 991 274 61 34 1,148 344 62 103 847 136 63 8 405 47 64 67 1,863 435 65 256 2,011 308 67 24 352 65 70 42 2,608 102 72 356 1,581 62 73 599 7,631 1,021 75 181 1,663 156 76 49 134 14 78 268 3,507 601 79 142 1,228 143 80 1,147 9,637 718 81 409 2,619 470 82 110 2,803 339 83 221 1,966 140 84 6 56 1 86 110 822 81 87 483 4,247 584 89 38 176 10 90-97 75 2,848 - 99 24 259 - 7,165 81,345 10,068 Source: Claritas and Economics Research Associates, Inc. Appendix 3 Census Tracts' adjacent to Santa Monica Boulevard Establishments, Employees and Estimated Sales by Sector Standard Industrial Classification Estimated Description Code Estabiishments Employees Sales . (number) (number) (S millions) Agriculture, Forestry and Fishing AGRICULTURAL PRODUCTION-CROPS Ot - - - AGRICULTURAI PDTS-LIVESTOCK & ANfMAL S 02 - - - AGRICULTURAL SERVICES 07 6 42 1 FORESTRY 08 - - - FISHING, HUNTING, 8~ TRAPPING 09 - • - Extradion METAL MINING . 10 •. - - - COAL MINING 1T - • - OIL 8 GAS EXTRACTION 13 2 6 1 NONMETALLIC MINERALS, EXCEPT FUELS 14 - - - Construction GENERAL BUILDING CONTRACTORS 15 17 66 23 i-IEAVY CONSTRUCTION CONTRACTORS 16 - - - SPECIAL TRADE CONTRACTORS 17 24 201 33 Manufacturing FOOD 8 KINDRED PRODUCTS 20 1 9 1 TOBACCO MANUFACTURES 21 - - - TEXTILE MILL PRODUCTS 22 - - - APPAREL ~ OTHER TEXTILE PRODUCTS 23 4 35 3 LUMBER & WOOD PRODUCTS 24 - - - FURNITURE 8 FIXTURES 25 1 2 - PAPER & ALLIED PRODUCTS 26 1 3 1 PRINTING 8 PUBLISHING 27 27 135 12 CHEMICALS & ALLIED PRODUCTS 28 - ~ - ~ - PETROLEUM & COAL PRODUCTS 29 - - - RUBBER & MISC. PLASTICS PRODUCTS 30 - - - LEATHER 8 LEATHER PRODUCTS 31 - - - STONE, CLAY, 8 GLASS PRODUCTS 32 - - - PRIMARY METAL INDUSTRIES 33 - - - FABRICATED METAL PRODUCTS 34 2 27 3 INDUSTRIAL MACHINERY & EQUIPMENT 35 1 1 - ELECTRIC & ELECTRONIC EQUIPMENT 36 2 17 1 TRANSPORTATION EQUIPMENT 37 1 10 1 INSTRUMENTS & RELATED PRODUCTS 38 4 68 5 MISCELLANEOUS MANUFACTURING INDUSTRIES 39 8 25 3 Transportation, Communications, Eledric Gas and Sanitary Services FiAILROAD TRANSPORTATION 40 - - - LOCAL & INTERURBAN PASSENGER TRANSIT 41 4 50 2 TRUCKING 8 WAREHOUSING 42 3 7 1 U.S. POSTAL SERVICE 43 2 107 2 WATER TRANSPORTATION 44 1 3 - TRANSPORTATION BY AIR 45 1 9 1 PIPE LINES, EXCEPT NATURAL GAS 46 - - - TRANSPORTATION SERVICES 47 15 89 29 COMMUNICATION 48 5 58 6 ELECTRIC, GAS, 8 SANITARY SERVICES 49 - - - Wholesale Trade WHOLESALE TRADE-DURABLE GOODS 50 40 427 66 WHOLESALE TRADE-NONDURABLE GOODS 51 6 253 57 Retail Trode BUILDING MATERIALS & GARDEN SUPPLIES 52 9 84 14 GENERAL MERCHANDISE STORES 53 2 17 2 FOOD STORES 54 8 176 29 AUTOMOTIVE DEALERS & SERVICE STATIONS 55 33 1,596 627 APPAREL 8 ACCESSORY STORES 56 19 94 7 FURNITURE & HOME FURNISHINGS STORES 57 49 637 147 Appendix 3 Census Tracts' adjacent to Santa Monica Boulevard Establishments, Employees and Estimated Sales by Sector Standard Industrial Classification Description Code EATING & DRINKING PLACES MISCELLANEOUS RETAIL Finance, Insurence and Real Estate DEPOSITORY INSTITUTIONS NONDEPOSITORY INSTITUTIONS SECURITY 8 COMMODITY BROKERS INSURANCE CARRIERS INSURANCE AGENTS, BROKERS & SERVICE REAL ESTATE HOLDING & OTHER INVESTMENT OFFICES Services HOTELS 8~ OTHER LODGING PLACES PERSONAL SERVICES BUSINESS SERVICES AUTO REPAIR, SERVICES, 8 PARKING MISCELLANEOUS REPAIR SERVICES MOTION PICTURES AMUSEMENT & RECREATION SERVICES HEALTH SERVICES LEGAI SERVICES EDUCATIONAL SERVICES SOC~AL SERVICES MUSEUMS, BOTANICAL, ZOOLOGICAL GARDENS MEMBERSHIP ORGANIZATIONS ENGINEERING & MANAGEMENT SERVICES MISCELLANEOUS SERVICES Public Administration PUBLIC ADMINISTRATION (SIC 90-97) NONCLASSIFIABLE ESTABLISHMENTS TOTAL Source: Claritas and Economics Research Associates, Inc. 58 59 Estimated Establishments Employees Sales (number) (number) (S millions) 72 1,096 56 87 760 709 60 7 53 14 61 7 273 74 62 11 73 12 63 2 6 1 64 11 1,124 262 65 - 45 439 61 67 2 5 1 70 5 133 5 72 84 385 15 73 129 1,590 202 75 41 373 30 76 13 47 6 78 53 1,031 75 79 27 230 30 80 660 6,074 402 81 55 402 73 82 22 384 42 83 54 480 31 84 - - - 86 23 117 7 87 79 1,153 177 89 5 20 1 90-97 7 81 - 99 3 18 - 1,802 20,601 2,764 Note: 'Census tracts include 7015.02, 7016.02, 7017.01 and 7017.02. #15030 ERA/LA/DAW 7/29/03 Appendix 4a STUDY NOTES SANTA MONICA AUTO RETAIL ACTIVITY RECENT TAXABLE SALES EXPERIENCE (Citywide) Full-Year 2002 Business Volumes Taxable Sales City Sales Tax Receipts Amount Percent • New Car Sales $414,710,200 $4,147,102± ( 71.3°/a) • Auto Leasing (use tax) 106,750,500 1,067,505± ( 18.4%) • Auto Repair 24,504,200 245,042± ( 4.2%) • Auto Supplies 8,610,200 86,102± ( 1.5%) • Used Car Sales 27,114,200 271.142+ 4J% $581,689,300 $5,816,893± (100.0%) Comparison of Sales Tax Revenues of 15` Quarter ls` Quarter Percent ls` Quarter 2002 with 15` Quarter 2003 2002 2003 Change • New Car Sales $ 1,002,505 $1,080,676 + 7.8% • Auto Leasing (use tax) 265,254 290,001 + 9.3% • Auto Repair 61,412 61,412 0.0% • Auto Supplies 24,350 21,675 - 11.0% • Used Car Sales 64,992 51,285 - 21.1% $ 1,418,513 $1,505,049 + 6.1% Note: This data is cumulative. It is not divisible to explicit locations because it is confidential. Elsewhere in the report Economics Research Associates has estimated the probable business volumes generated by the City's new car dealers (who hold multiple licenses). Economics Research Associates estimates that the new car dealers generate roughly 75 percent of total business volumes from sales, leasing, repairs, supplies. Source: California SBE, City of Santa Monica, and Economics Research Associates. #15039 ERA/LA/DAW ] 0/29/03 Appendix 4b STUDY NOTES SANTA MONICA AUTO DEALERSHIPS STUDY RECENT AND REVISED PERCEPTIONS USED CAR SALES • The press reports (and projects) slight rise in used car prices (especially from current and upcoming volumes of recent model lease returns). ~ • This seems contrary to other reports still identifying the "cash backs" and very low or no interest rates on new autos as stifling used car sales. "THE WEST SIDE PERIMETER" • It is easier to get autos serviced close to home as congestion grows on peripheral freeways and arterials. The 405 and the 10 are becoming more crowded and much less convenient. • The Santa Monica Blvd. Improvement project in West LA is ongoing for 12 to 18+ months, and confuses traffic flows near the 405. •"Reclustering" in Culver City, and "straddle" of the 405 in Hawthorne. Both pose more competition for Santa Monica dealerships. HOME PRICES AND APARTMENT RENT RISES • The housing bubble has not burst. • Higher costs of housing will constrain household consumption and vehicle expenditures. NO INCREASE IN STATE OR LOCAL SALES TAXES • The State budget crises "resolution" doesn't threaten increased sales taxes. • Cities have lost the first three months of VLF revenue normally paid to them by the State. • It is not yet clear how the reductions of the VLF by the new Governor will affect cities. MANUFACTURER BLUES • Ford is struggling to cut costs and regain profitability (worldwide, not just in the U.S.). • Daimler Chrysler has taken a major hit a~ on Chrysler product costs and revenues. • The Big 3(GM, Ford, Daimler-Chrysler) all seem to anticipate maintaining expensive inducement programs to stay in business. Source: Economics Research Associates. #15039 Appendix 5 ROUGH ESTIMATION OF SELECTED CITY REVENUES FROM AUTO DEALERS, USED CARS, LEASING, REPAIRS, SUPPLIES (Year 2002) SANTA MONICA AUTO DEALERSHIPS ESTIMATES (16 New Car Dealerships) Sales Taxes $4,060,000 Property Tax 150,000 , Business License Tax 409,500 Utility User Tax 180,000 Total $4,799,500 (Includes all new car franchises and multi-brand dealerships.) OTHER CITY LOCATIONS Sales Taxes $1,770,000 Property Tax 112,000 Business License Tax 61,500 Utility User Tax 70,000 Total . $2,013,500 (Includes used car dealerships not a part o f new car dealership operationss.) TOTAL FOR CITY Sales Taxes $5,830,000 Property Tax 262,000 Business License Tax 471,000 Utility User Tax 250,000 Total $6,813,000± Appendix 5 (Continued) BACKGROUND 1. The City's tax rates have not changed since the HR&A study estimated revenues based on 1998 data (in the January 2001 report). HR&A focused on 10 "case study" new car dealerships. There are 16 in the City now, including the multi-franchise dealerships. 2. Sales tax receipts have risen substantially - as reported by the City. 3. Business license taxes are capped at $25,000 per year (for car dealers exceeding $20 million/year in taxable sales). 4. Changes in revenues have been influenced by formulas and events: A) Electric utility costs ramped up and stayed up because of the energy crisis - increasing the utility user tax revenues. ERA has increased probable revenues by 20 percent. B) Property tax has increased by at least 2 percent/year (Prop. 13). ERA does not know how many properties may have turned over to higher assessed valuations and therefore higher property tax revenues to the City. The City receives 14 percent of the property tax base rate. C) Other revenues and service fees have not been included in this very rough estimate. ESTIMATION 1. ERA has identified potential 2002 City revenues from the auto dealerships on Santa Monica Boulevard. 2. ERA has forecasted 2002 City revenues for the rest of the City as well. 3. The numbers are conservative and are founded on known sales tax revenues the City recorded for calendar year 2002. 4. ER.A believes the sales tax portion of total revenues is about 85 percent of the total revenues received from the four selected revenue streams. Note: New car dealership activiries account for 70.4 percent of selected municipal revenues collected from citywide auto sales, leasing, repairs, and supplies acrivities. Sources: City (sales tax), published tax rates, inflation of property taxes, cap on business license tax amounts, and estimation by Economics Research Associates. ATTACHMENT E HR & A REPORT, 2001 HAMtLTON, RABINOVITZ $c ALSCHULER, INC. Policy, Financia! & Management Con.rultanu RETAINING FULL-SERVICE AUTO DEALERSHIPS IN THE CITY OF SANTA MONICA: PROPOSED MODIFICATIONS TO CITY PLANNING REGULATIONS Prepared for: The Santa Monica Auto Dealers Association and the Santa Monica Chamber of Commerce January 12, 2001 in association with: EIP Associates Meyer, Mohaddes Associates, Inc. 1990 SOUTH BUNDY DRIVE, $U1TE 77~, I.OS /,NG6LE5, CALIFORN[A 90025 • TEL: ;io.8zo.3444 • Fnx: iio.82o.6778 NEW YORK ~ LOS ANGELES Table o f Contents LIST OF FIGURES Figure No. Title Pa~e 1 Locations of the Case Study Auto Dealerships . . . . . . . . . . . . . . . . . . . . 9 2 Typicai Public Parking Structure Level . . . . . . . . . . . . . . . . . . . . . . . . . 44 3 Typical Storage Parking Structure Level . . . . . . . . . . . . . . . . . . . . . . . . 45 LIST OF TABLES Table No. Title Pa e I Fuil-Service Franchised Dealerships in the City of Santa Monica ... .... 6 2 Founding Dates for Selected Santa Monica Auto Dealerships ..... .... 7 3 Distribution of Major New Car Auto Malls and Auto Rows In los Angeles County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 4 Building Floor Area and Land Area at 10 Santa Monica Auto Dealerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 5 Proportions of On-Site Land by Zoning District at 12 Santa Monica Auto Dealerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 6 Santa Monica Auta Dealership Parking Demand Analysis . . . . . . . . . . . 22 7 Zoning Code Par{:ing Requirements vs. Parking Provided at l0 Santa Monica 4uto Dealerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 8 Tax Revenues to the City of Santa Monica From 10 Case Study Auto Dealerships, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . 26 9 Maximum Building Heights for Auto Dealerships in Santa Monica .... 30 l 0 Maximum Floor Area Ratios for Auto Dealerships in Santa Monica ... 30 11 Maximum Floor Area Ratios and Building Heights for Santa Monica Auto Dealerships, 1984-2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 HAMILTON. RABINOI~ITZ BL ALSCHLJL,ER, Irrc. Page iii Table o f Contents Table No. Title Pa~?e 12 Off-Street Parking Requirements for Auto Dealerships in Santa Monica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 5 13 Project Size thresholds for a Development Review Pernut in Zoning Districts Where Auto Dealerships Are Conditionally Permitted in Santa Monica ..........................................40 14 Satisfying On-Site Parking Demand . . . . . . . . . _ . . . . . . . . . . . . . . . . . . 46 HAMILTON, RABINOVITZ & ALSCHl7LER, INC. Page iv Table of Contents Pa~e .................................................... ii~ List ofFigures and Tables ~~~ I. Executive Summary ...................................................1 II. Purpose and Scope of the Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 A. Introduction ....................................................5 B. Overview of Santa Monica's Franchise New Vehicle Dealerships . . . . . . . . . . . . S C. Analysis Methods ................................................8 D. Organization of the Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 III. General Characteristics of the Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 A. Industry Trends .........:......................................11 B. Internet Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 C. Santa Monica's Competitive Market Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 IV. Characteristics of the Case Stady Franchised New Vehicle Dealerships ......... 17 A. Physical Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 B. Parking and Circulation Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 C. Operational Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 D. Employment Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 E. Tax Revenues to the City of Santa Monica and Other Economic Impacts ..... 25 HAMILTON, RABINOVITZ 8L ALSCHULER, Wc. Page i Table ofContents Paee V. Current City Regutations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 f ; A. Permitted Uses and Property Development Standards . . . . . . . . . . . . . . . . . . . . 27 i i B. Parking and Traffic Circulation Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . 34 ~ C. Operational Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 D. Discretionary Review Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 VI. Proposed Modifications to City Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 A. Accommodating Dealership Parking Demand . . . . . . . . . . . . . . . . . . . . . . . . . . 41 B. Auto Dealership Overlay District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 APPENDICES A. Summary Characteristics of the Case Study Santa Monica Dealerships B. City Land Use and ZoninF Regulations B-1 Santa Monica Land Use Element Policies Related to Auto Deaferships B-2 Santa Monica !1lunicipal Code Excerpts Related to Auto Dealerships C. Proposed Zoning Cade Text Amendments C-1 AD Auto Dealership Overlay District C-2 Amendments to Non-Conforming Use Requirements HAMILTON, RABINOVITZ & ALSCHULER, 1NC. Page ii I. EXECUTIVE SU]MMARY This Report presents analysis of the local regulatory environment in the City of Santa Monica ("City") that controls the physical development and certain operational characteristics of full-service franchised new vehicle dealerships. The Report presents an independent assessment of how the City's development regulations affect the operation of the dealerships and their ability to continue doing business in the City, at a time when dealerships are under intense business pressures, due to changes in the nature of the vehicle sales industry, and offers recommendations for resolving some of the difficulties identified. It is intended that these recommendations will be reviewed by City staff and the residential neighborhoods surrounding the concentration of auto dealers on Santa Monica and Wilshire Boulevards, prior to being considered by the City's Planning Commission and City Council for action. The analysis was commissioned by the Santa Monica Chamber of Commerce and the Santa Monica Auto Dealers Association. The Report was prepared by Hamilton, Rabinovitz & Alschuler, Inc., a policy, finance and management consultant, in association with EIP Associates, Inc., an environmental planning and urban design firm, and Meyer, Mohaddess Associates, Inc., transportation planners. Santa Monica is home to 18 full-service franchised new vehicle (i.e., autos and light-duty trucks) dealerships, which are located primarily on Santa Monica Boulevard, east of Lincoln Boulevard, and on Wilshire Boulevard between 16~' and 18~' Streets. The dealerships provide a full range of services, including sale and lease of new and used vehicles, auto parts sales, auto repair and sale and lease financing, Altogether, the City's dealerships se1127 different brands of vehicles, providing Santa Monica and other Westside residents significant consumer choice and repair service convenience. In 1997, it was estimated that all of the City's dealerships accounted for about one billion dollars in total sales, and generated about $3.2 million per year in ta~c revenues for the City. The scale of the dealerships' continuing contribution to the fiscal health of Santa Monica, was confirmed through recent case studies of 10 de~lerships. Altogether, the 10 dealerships pay about $1.9 million in taxes to the City, or an average of $172,000 per dealership, most of which is in the form of sales tax. The 10 dealerships also purchased $1.7 million worth of goods and services from other Santa Moruca businesses last year, primarily for auto parts, supplies and gasoline. Auto dealerships and parts and repair businesses account for the largest share of taxable sales in the City. The 10 case study dealerships also employ over 800 people earning above-average wages. About ten percent of this labor force are Santa Monica residents. The dealerships are also large and active contributors to local charities, service clubs and youth organizations. They produce all of these benefits on a fraction of the land area consumed by auto malls in the competitive market area. ,The dealerships, therefore, represent not only a valuable senrice to Santa Monica and Westside customers, but a very important source of tax revenue, employment and civic involvement for the City. The auto dealership "row" on Santa Monica Boulevard has been a fixture of the City for decades, and predates a significant increase in the volume of muiti-family development that occurred in the City following the completion of the Santa Monica freeway in the late 1960s. HAMILTON, Rwsnvovrrz & Ai.scHt1~.E[t, Irrc. Page 1 Executive Summary Nearly half of the dealerships were established in the City prior to 1970. Ownership of these businesses is spread among a number of individual companies, many of which hold a single franchise. Many are family enterprises that have been, or will be, passed between generations. The dealerships are arranged on adjacent commercial lots. Some sites include lots zoned for other uses. In a few cases the dealership sites are separated from the adjacent residential land uses by an alley, but many dealership sites directly abut their residential neighbors. This adjacent land use relationship, and the particular operational characteristics of the dealerships, have caused discomfort to some residentiai neighbors, particularly those residing closest to Santa Monica Boulevard. The City has responded to neighborhood concerns with a variety of land use regulations intended to reduce these impacts, but in so doing, it has made the regulatory regime applicable to auto dealerships unusually complex. As one result, dealerships cannot accommodate all of their parking demand on site. For the 10 case study dealerships, the on-site parking shortfall is about 1,200 spaces, or a median of 136 spaces per dealership Few dealerships have made majar capital improvements to their facilities in recent years, despite significant changes in the business of automotive sales, increasing demands from manufacturers to modernize facilities, and competition from dealerships in other jurisdictions that impose fewer restrictions. The biggest obstacle to capital investment, according to interviews with the dealers, is the wide scope of the City's restrictions, the low scale of expansion that would be permitted, and the time and cost required to navigate through the City's multi-step and unpredictable discretionary approval process. This situation has caused some dealerships to question whether they can afford to continue doing business in the City. In summary, after comparing dealership facility needs, particularly parking demand, with City zoning regulations, the Report concludes that: ^ Santa Monica auto dealerships operate on unusually small sites for this industry, with an average of 1.4 acres compared with a nationai average of 10.0 acres and 5.0 acres in suburban communities. ^ Dealership sites are developed at much lower density than most other commercial uses along Santa Monica and Wilshire Boulevards. Median overall density (including all dealership site land area) is 0.34, which is equivalent to a one-story building on one-third of the site. ^ Santa Monica dealerships lack sufficient on-site parking for customers, employees, repair operations and vehicle inventory. The median parking deficit for the 10 case study dealerships is 136 spaces. ^ The dealerships' small sites and inability to accommodate all parking demand on site, and the resulting need for substantial off-site parking supply, cause inefficient dealership operation, parking supply problems in adjacent residential and HAMILTON, RABINOVfTZ & ALSCHIJI.ER, lt•tc. Page 2 Executive Summary commercial areas that are already suffering from inadequate supply for their own needs, and adds ~o traffic circulation volumes on City streets. Current City zoning standards do not allow auto dealerships to construct the additional parking supply necessary to accommodate parking demand. Buitding heights are too low, and Floor Area Ratios are too limited, particularly because of the way "floor area" is defined. The restrictions on the use of non-commercial parcels that are part of many dealership sites interfere with the flexibility they need to provide appropriate on-site parking supply. • The Zoning Code imposes certain performance standards on auto dealerships that are nearly impossible to satisfy due to physical limitations (e.g., on-site vehicle loading and unloading), which also interfere with the ability to provide on-site parking supply. ^ The Zoning Code requirements for auto dealerships are spread across many different, unintegrated sections, and they are duplicative and internally inconsistent in some cases. This causes confusion for the dealerships, City planners charged with regulation administration, City decision makers and the public. ^ The direct cnsts and operational inefficiencies this imposes on the dealerships threaten their continued economic viability, and their ability to continue making a substantiai contribution to the fiscal health of the City. Accordingly, the Report's recommendations focus on two specific issues: changes to City regulations that would pernvt an increase in dealership on-site parking supply, and a measure of orderliness and predictability to the land use regulations applicable to dealerships. Analysis of dealership parking demand and site characteristics indicates that on-site parking structures of between two and three levels above grade, plus one below grade, if feasible, would be required to accommodate most of the dealership parking demand. Adding new parking capacity of this scale will require modifications to a number of e~cisting City zoning regulations, including an increase in the height limit for parking structures only (to 46 feet) and Floor Area Ratio (to 1.75), coupled with changes in other standards, including the ability to construct on or under portions of transition lots and other lots that are part of existing dealerships, but zoned for non-commercial uses. Other possible solutions to the parking shortfall include joint development with the City of new parking structures on underutilized land, particularly along Santa Monica Boulevard, though doing so would involve a number of organizational and financing complexities. To address a range of other difficulties with the City's land use regulations that discourage the auto dealerships from making capital investments in their facilities, including new parking structures, it is further recommended that the City establish a new Auto Dealership ("AD") Overlay District for portions of Santa Monica and Wilshire Boulevards where the dealerships are now located and may consider expanding. This well-established zoning technique is used in other I~3AMILTON, RASttaovrrz & A1.scxul.Ert, INC. Page 3 Ezecutrve Summary parts of the City, where place-specific standards are superimposed on existing zoning regulations to address particular issues, which in this case, are the special needs of auto dealerships. In addition to the development standards associated with new parking structures, the AD Overlay District could address issues of non-confqrming uses, clarifying the differences between regulations that apply to existing dealerships and newly constructed or substantially expanded dealerships, and increasing the threshold for when existing dealerships must comply with new dealership standards, to a more realistic level. A draft text amendment is included as Appendix C to the Report. If these recommendations, as supplemented and amended through future discussions with neighborhood representatives and City staff, are adopted, auto dealerships will have the flexibility to adapt their facilities to changing market circumstances and remain a vital part of the City's economy. An open, participatory public review process will ensure that this new flexibility will not come at the expense of the quality of life in the residential neighborhoods adjacent to the auto dealerships. HAMILTON, Rr~atNOVrrz & ALSCxvI.Ett, Iivc. Page 4 II. PURPOSE AND SCOPE OF THE ANALYSIS A. INTRODUCTION This Report presents analysis of the local regulatory environment in the City of Santa ("City") Monica that controls the physical development and certain operational characteristics of full-service franchised new vehicle dealerships. The analysis was commissioned by the Santa Monica Chamber of Commerce on behalf of its Automobile Dealers Task Force. The Report was prepared by Hamilton, Rabinovitz & Alschuler, Inc., a policy, finance and management consultant, in association with EIP Associates, an environmental and urban design firm, and Meyer, Mohaddes Associates, transportation planners. The Report presents HR&A's independent assessment of how the City's development regulations affect the operation of the dealerships and their ability to continue doing business in the City, and offers recommendations for resolving some of the difficulties identified. It is intended that these recommendations will be reviewed by City staff and the residential neighborhoods surrounding the concentration of auto dealers on Santa Monica and Wilshire Boulevards, prior to being considered by the City's Planning Commission and City Council for possible action. B. OVERVIEW OF SANTA MONICA'S FRANCHYSE NEW VEHICLE DEALERSHIPS Santa Monica is home to 18 full-service franchised new vehicle (i.e., autos and light-duty trucks) dealerships,' which are located primarily on Santa Monica Boulevard, east of Lincoln Boulevard, and on Wilshire Boulevard between 16~' and 18~' Streets. The dealerships provide a full range of services, including sale and lease of new and used vehicles, auto parts sales, auto repair and sales and lease financing. Altogether, the City's dealerships sell 26 different brands of vehicles, thereby providing Santa Monica and other Westside residents significant consumer choice and repair service convenience. The dealerships are listed in Table 1. I The term "auto dealers" is used in this Report as a short-hand reference. HAMILTON, RABINOVffZ & ALSCHLTLER, INC. Page 5 Purpose and Scope Table 1 Full-Service Franchised Dealerships in the City of Senta Monica De~ership Name Dealership Locationlsl Manufacturer F~enchises Coastline Motor Group Claude Short Dodge' Hornburg Jaguar Infiniti of Sarrta Monica Kramer Motors Lexus Sarrta Monica MiNe~ Automotive Group Lincoln, Mercury, Suburu Dodge Jaguar, Range Rover 1229 Santa Monica Boulevard 1127 Sarrta Monica Boulevard 1601 Wilshire Boulevard 3300 Olympic Boulevard 900 Sarrta Monica Boulevard 1719 Santa Monica Boulevard 2450 Santa Monica Boulevard 1501 Sarrta Monica Boultvard 1599 Sarrta Monica Boulevard Infiniti Honda, Voivo Lexus Mitsubushi Nissan Saab of Sarrta Monica 3020 Sar~ta Monica Boulevard Saab Sarrta Monica Chevrolet- 3223 SaMa Monica Boulevard Buick, Chevrolet, Oldsmobile, Geo Oldsmobile-Buick Sarrta Monica ford 1230 Sartta Monica Boulevard Ford Sarrta Monica Acura 1717 Santa Monica Boulevard Awra Sarrta Monica BMW' 1820 Sartta Monica Boulevard BMW Sarrta Monica Mazda 1301 Sarrta Monica Boulevard Mazda Sheridan Toyota 801 Sarrta Monica Boulevard Toyota W. 1. Simonson 1626 Wlshire Boulevard Mercedes Benz Steve Taub Audi/Porsche 1020 Santa Monica Boulevard Audi, Porsche Volkswagen of Sarrta Monica 2440 Sar~ta Monica Boulevard Volkswagen ' Prior to recent chanes of ownership and dealership relocafions. Source: Sarrta Monica Chamber of Commerce; HR&A In 1997, it was estimated that these dealerships accounted for about one billion dollars in total sales, and generated about $3.2 million per year in tax revenues for the City.2 Sales tax accounted for most ($2.5 million) of these revenues. This represented the largest concentration of sales tax dollars per establishment, and more revenue than the sales tax generated by any one of the City's primary retail districts, including Santa Monica Place, the Third Street Promenade, Montana Avenue and Main Street.3 The dealerships also employed about 1,200 workers in management, sales and various technical occupations, with an annual payroll of about $42 million. They purchased more than $10 million per year in goods and services from other businesses, and were large contributors to local charities, service clubs and youth organizations. They produce all of these benefits on a fraction of the land area consumed by auto malls in the competitive market area. The dealerships, therefore, represent not only an important service to Santa Monica and Westside customers, but a very valuable source of tax revenue and employment to the City. The auto dealership "row" on Santa Monica Boulevard has been a fixture of the City for decades, and predates a significant increase in the volume ofmulti-family (i.e., apartments and ` Hamilton, Rabinovitz & A1sChuler, Inc., lssues in Setti»g a Reasonable Business L.icense Tc~r Formula jor Sanra Monica Auto Dealers, prepazed for the Santa Monica Area Chamber of Cotnmerce, June 2, 1997. 3 Id. HAMILTON, RABINOVTfZ & ALSCHLJLER, INC. Page 6 Purpose and Scope condominiums) development that occurred in the City following the completion of the Santa Monica freeway in the late 1960s. Nearly half (44%) of the dealerships were established in the City prior to 1970, as indicated in Table Z. Table 2 Founding Dates for Selected Sante Monica Auto Dealerships Deatership Year Established in Santa Monica Claude Short Dodge 1922 W.1. Simonson Mercedes 1937 Sarrta Monica Ford 1947 Kramer Motors 1951 Santa Monica Volkswagen 1957 Sheridan Toyota 1957 Hornburg Jaguar 1960 Sarita Monica BMW 1969 Sources: Dealerships; HR&A Ownership of these businesses is spread among a number of individual companies, many of which hold a single franchise. Many are family enterprises that have been, or will be, passed between generations. The dealerships are arranged on adjacent commercial lots. Some sites include lots zoned for other uses. In a few cases the dealership sites are separated from the adjacent residential land uses by an alley, but many dealership sites directly abut their residential neighbors. This adjacent land use relationship, and the particular operational characteristics of the dealerships, have caused discomfort to some residential neighbors, particularly those residing closest to Santa Monica Boulevard. The City has responded to neighborhood concerns with a variety of land use regulations intended to reduce these impacts, but in so doing, it has made the regulatory regime applicable to auto dealerships unusually complex. Some dealerships have, nevertheless, expanded their facilities over the years, either by reconstructing facilities on site or by acquiring separate lots for surface level inventory storage or employee parking. Several dealership reconstruction projects were completed or planned to repair damage caused by the 1994 Northridge earthquake (Claude Short Dodge). One entirely new dealership (Santa Monica Chevrolet-Buick-Oldsmobile) was constructed in 1990s. Two other reconstruction projects have recently been approved by the City (W. I. Simonson Mercedes and Saab of Santa Monica). Most of the dealerships have not made major capital improvements to their facilities in recent years, despite significant changes in the business of automotive sales, increasing demands from manufacturers to modernize facilities, and competition from dealerships in other jurisdictions that impose fewer restrictions. The biggest obstacle to capital investment, according to interviews with the dealers, is the wide scope of the City's restrictions, the low scale of expansion that would be pernutted, and the time and cost required to navigate through the City's multi-step HAMILTON, RABINOVTfZ & ALSCHULER, INC. Page 7 Purpose and Scope discretionary approval process. This situation has caused some dealerships to question whether they can afford to continue doing business in the City. This analysis provides an independent review of the dealerships' facility requirements, compares them with the City's current regulatory regime, and offers recommendations for changes that would better accommodate the dealerships' needs, while at the same time respecting the legitimate needs of the surrounding residential neighborhoods. C. ANALYSIS METHODS The analysis presented in this Report relies on case studies of 10 dealerships that agreed to provide HR&A detailed information on their operational characteristics and facility needs.° The names and locations of the case study participants are shown in Figure 1 on the following page. Though each of these dealerships has a somewhat different set of circumstances,' and these in turn differ to some degree from those at other dealerships in the City, the case studies provide a reasonable basis for assessing the situation of the dealerships in general, and formulating recommendations that could apply to this type of business in the City. The case studies involved the following research and analysis activities: ^ Dealership Survey. Each dealership completed a detailed questionnaire concerning its physical facilities and equipment, daily operations, employee characteristics and certain financial information. These data were compiled and analyzed by HR&A for use in subsequent analyses. ^ On-Site Interviews and Tour. The project team then met with a senior official at each dealership to walk through the facilities and discuss manufacturer requirements and site-specific issues. Other research conducted by the HR&A project team included review of City zoning regulations and regulations in competitive jurisdictions, literature review on general industry trends and electronic commerce issues, including sales via the Internet, and review of recent City planning cases involving auto dealership remodels (i.e., W. I. Simonson Mercedes and Saab of Santa Monica). ' The analysis on which this Report is based was completed prior to the recent change of ownership and relocation of the BMW and Dodge dealerships. All references to these dealerships reflect their prior locations on Santa Monic Boulevard. Inasmuch as the dealerships traded sites without adding new facilities, the analysis reported here about their prior locations is still relevant. HAMILTON, RAS~NOVrrz & A1,sctiuL.Ex, Irtc. Page 8 Figure 1 Locations of the Case Study Auto Dealerships Zoaing Districts Ri ~~~ u~ ~.o~a~ a ~„c~qx,w~~ w e.o~anm~r~ar~wu~ u ~amom~qn.~r,m~a~a~ u ~ ~~~3~r,aar~ enp ~.~ r~anwn~w~r~t on a~entr~r~.~ ara o~r„-.pWta GR OmoPuklwMmtipieFmiy an an.e~tn~a..~,tr~,b aw ~, am,nt~n~tr~fi ~rc x~~.rmm:~.~ em uoaryu~m~ a ~~ o : oa.m..~~ IX _:a Bo~ola~o0~yhr q ~ idnrqfmwaml 6 C~ fpul0~afammal u ~ e~a~ a ,.,~ ~s~ns~u~m v <~„ t.~n.r~d e~ ~~ a ~ uKu~. ni ~ ~~.,sm u~m ~ u-~nn,.~q~.au~.om~a ero eaen~.i ~ ~.~ om~nae,u Overlay Uistricts A pfiYtllalfiq MW Ion6dTPohie -._ BaA0~e6~~abia ..- Ieokrudlmdm6ilOwlqD'aai¢ Me~hvAeedfooumml ,-.'',.'~~ PehGclaom Santa Monica Acura 1717 santa Monica Blva. • ••• Simonson Mercedes Benz •••••••••• 1626 Wilshire Blvd. Hornburglaguar ......... 1601 Wilshire Blvd. Lynch Motors - Lincoln, Mercury, Subaru " 1229 Santa Monica Blvd. Claude Short Dodge .... 1127 Santa Monica Blvd Sheridan Toyota ....... 801 Santa Monica Blvd. ,,,,, Saab ofSanta Monica 3020 Santa Monica Blvd. Santa Monica ••••• Volkswagen 2440 Santa Monica Blvd ,,,,, Santa Monica BMW 1820 Santa Monica Blvd. ,,,,, Santa Monica Nissan 1599 Santa Monica Blvd. ,,,,, Santa Monica Ford 1230 Santa Monica Blvd ,,,, Infiniti of Santa Monica 900 Santa Monica Blvd. Purpose and Scope HR&A is grateful to the participating dealerships for providing the information used in the analysis, but HR&A takes full responsibility for the conclusions drawn from the data, and the resulting recommendations. D. ORGANIZATION OF THE REPORT The remaining Chapters of this Report include the following: ^ Chapter III: General Characteristics of the Industry. This Chapter provides a summary of the general business trends affecting Santa Monica's dealerships, including the continuing evolution of the auto sales industry, the emergence of sales via the Internet and the nature of the competitive environment in the greater Los Angeles region. This Chapter provides a general context for the judgments that Santa Monica's dealerships must make, as they weigh their business future in the City and the role that City regulation plays in those considerations. ^ Chapter IV.• Characteristics of the City's Dealerships. The fourth Chapter presents a profile of the dealerships, based on the case studies. This includes their operational characteristics, parking and circulation demands, neighborhood compatibility issues, employment profile, tax revenues and other economic benefits to the City. Appendix A includes a summary for each of the case study dealerships. ^ Chapter V.• Current City Regulations. This Chapter presents the details of the City's zoning regulations which govern the physical parameters of the dealership facilities and certain of their operational characteristics. This Chapter also identifies which of these regulations have proven to be problematic for the dealerships as they contemplate improving and/or expanding their facilities in order to remain competitive. Appendix B includes copies of the relevant Zoning Code sections, for the reader's reference. Chapter VI: Recommendations. In this final Chapter, HR&A offers its recommendations for various changes to the City's zoning regulations which would better meet the needs of the dealerships that want to expand their facilities so they can remain in the City, They address the scale of physical facilities that would be required to combine a11 uses and parking demand on site, as well as various operational requirements that are currently the subject of City regulation. The recommendations include adoption of a new AD Auto Dealership Overlay District to codify these changes. A draft Zoning Code text amendment is included in Appendix C to the Report. HAMILTON, RABINOVITZ & ALSCH[JLER, INC, Page 10 III. GENERAL CHARACTERISTICS OF THE INDUSTRY This Chapter provides a summary of the general business trends affecting Santa Monica's dealerships, including the continuing evolution of the auto sales industry, the emergence of sales via the Internet and the nature of the competitive environment in the greater Los Angeles region. This Chapter provides a general context for the judgments that Santa Monica's dealerships must make, as they weigh their business future in the City and the role that City regulation ptays in those considerations. A. INDUSTRY TRENDS The healthy general economy that has supported strong consumer confidence and spending, helped push new vehicle sales volumes to near-record levels during the past few years. But the financial viability of franchise auto dealerships is under challenge on a number of fronts. These challenges are as varied as world-wide competitian, the aging U.S. population and changes in technology.' Together, these challenges are causing structural changes in the auto sales industry that affect everything from parts and vehicle inventory management to how sales are transacted. Among the more significant industry changes that concern Santa Monica's dealerships are: Very Thin Profit Margins. Despite increases in the average price of a new car (and, somewhat perversely, because of it) dealership net pre-t~ profits have hovered at under two percent since 1987.2 Intense competition, pressures from manufacturers, and globalization of the market will continue to put pressure on profits. Nationally, new vehicle sales account for just over one-third (39%) of the profit to the average dealership, parts and service accounted for almast half (42%), and used vehicle sales account for the balance of profit (19%).3 ~ ^ Dealership Consolidations. Auto dealerships must be responsive to the terms and conditions of their franchise agreements with vehicle manufacturers, which are subject to periodic renewal. Dealerships have varying degrees of bargaining power in this relationship, depending in part on their sates volume. Manufacturers' requirements include dealership location, sales volume targets and minimum undated. See generally, National Auto Automobile Dealers Association (NADA), Trans;tion to rhe 21" Century, Z U.S. Dept. of Commerce, StatrsticalAbstract of the United States, 1994 (p. 799) and 1999 (p. 773). ' NADA, NADA Data 2000, Economic Impact ojAmerica's New-Car and New-Truck Dealers, 2000, available at http://ww~v.nada.com. HAMIL'f'013, RABiNOVTfZ ~t. ALSCH[3LER, INC. Page 11 Industry Characteristics facility standards. Manufacturers have been shrinking the number of dealerships steadily over the past 20 years, as a way to boost per-dealership profits. Small- volume dealers are particularly susceptible to the consolidation trend. Related threats to franchise dealerships include manufacturer-owned dealerships (e.g., the proposed General Motors'~etail Holdings) and direct sales from manufacturers.4 ^ Other Bigger-is Better Trends. Some manufacturers have granted franchises to "big box" retailers, such as AutoNation. These enterprises seek to become the Walmarts of auto retailing, by combining operations at a very lazge, more efficient operating scale, and establishing a national sales brand. Chains, or dealership companies with multiple franchises, now account for 40 percent of all dealerships. ^ Threats to the Service Department. Vehicle quality improvements, provided in response to consumer demand, put pressure on service departments, the largest contributor to dealership profitability. Even as their number increases, fewer new vehicles need to be serviced to the same degree as in the past. The increasing reliance on sophisticated vehicle electronics, and extended evening and weekend hours of operation to meet customer schedule needs, have had an effect on vehicle repair payroll costs. lndependent service stations and quick-lube shops continue to compete for segments of this business. In addition, insurance companies are forcing "managed care" cost savings approaches into auto body shops, which has contributed to a deciine in the number of dealerships that offer this service. On the other hand, the demand for reconditioning leased vehicles may help compensate for reductions in new vehicle repair volumes. Absent the abili~y to increase sales and service volumes, all of which require physical space, some Santa Monica dealerships may not be very well positioned to compete under these changing circumstances. Several dcalerships indicated that they have sufficient market strength to sell and service more vehicles, but that facility limitations are preventing them from doing so, and this is causing increased friction w~ith the manufacturers. B. INTERNET COMMERCE Among recent technology changes affecting franchise new vehicle dealerships is electronic commerce, or the buying and selling of autos via the Internet. Despite a barrage of Web site, radio and television advertising from companies seeking Internet auto sales business, the volume of these transactions does not appear to have much effect on dealerships as a whole. This is " GM is reportedly planning a made-to-order program that would enable consumers to configure the spec~cations and options they want, along the model of Dell Computers, and have the vehicle delivered in a matter of days, compared with the months that custom orders now require. Justin Hyde, "GM Plans Made-to- Order Vehicles," The Associated Press, June 27, 2000. HAMILTON, RABINOVITZ 8C ALSCHULER, INC. Page 12 Industry Characteristics because Internet sales companies are essentially referral agents or brokers, not much different from the role played by credit unions.s All auto sales, regardless of how they are initiated, must still involve a vehicle purchased from a franchised dealer, under applicable state franchise laws. These laws provide important protections to consumers for a purchase that has become essential to most households. ` The reasons dealerships remain a vital part of the vehicle purchase decision are self- evident, the law notwithstanding. There is a major difference to most consumers between purchasing a compact disc, book or new computer over the Internet, and purchasing a$25,000 asset. Most customers will want to test drive a vehicle, discuss vehicle perFormance, options and reliability, and negotiate a trade-in to finance the purchase. The Internet "e-tailers" cannot provide these services. Orily about 17,000 customers were expected to make a purchase transaction completely through the Internet last year.6 Total new vehicle sales in 1999 were 15.6 million. On the other hand, the Internet provides an abundance of information that consumers are using in making their purchase decision. Consumers are using the Internet to compare models and prices, check on available options, learn about pricing practices, and doing so in growing numbers. Consumer Report's most recent annual car buying guide features Internet research sites that can help consumers make better decisions about every aspect of the buying decision, including financing and vehicle safety ratings.' One recent survey reports that the percentage of consumers using such Internet information grew to 40 percent in 1999, from 25 percent in 1998.g But it is also clear that the auto dealership industry has now understood the power of the new technology and embraced it. According to trade sources, more than three-quarters of the nation's dealerships now have their own Web sites.9 Four Santa Monica dealerships provide either a Web address or an e-mail address in their Santa Monica Chamber of Commerce membership directory listing.'° The national trade organization has sponsored a new portal that ' The better known sales and reseller sites include CarsDirect.com, CarOrder.com, and DriveOff.com. Among the more popular refemal services are Autobytel.com, AutoWeb.com and Microsoft's CarPoint. ° Susan Moran, "Tire Clickers, CarsDirect.com's One-stop Buying and Delivery Service Promises to Take the Agony Out of Buying a Car," Business 2.0, September 1999, pp.159, 161-162, citing an estimate by Forrester Research. ~ Consumer Reports, The 2000 Cars, April 2000, pp. I 5-21. ° Daniel Taub, "Firtn Proves People Are Ready to Buy Cars on the Web," LosAngeles BusinessJournal, August 23, 1999, p. 5, citing a J.D. Power & Associates study. 9 Source: NADA News. 10 These are Claude Short Dodge, Hornburg Jaguar, Saab of Santa Monica and W.I Simonson Mercedes. HAMILTON, RABINOVffZ & ALSCHLJLER, INC. Page 13 Industry Characteristics provides some of the same information services as the independent Web companies, combined with direct links to its national membership.l' Auto dealers are also investing in advanced communication technology to streamline inventory management and achieve other efficiencies in their operations.'Z It does not appear that advanced telecommunications technology will play much of a role in facilities decision making by Santa Monica auto dealers. For example, increased sales via the Internet will not reduce a dealership's need for sales inventory or customer parking. Neither will it have any impact on facility needs related to auto service, or the parking demand associated with that part of the business. Finally, Internet sales will not have much ei~ect on the sales tax revenue reaped by the City of Santa Monica from auto deaters, for all of the reasons noted above.13 C. SANTA MONICA'S COMPETITIVE MARKET AREA Santa Monica dealerships compete with dealerships throughout Los Angeles County, northern Orange County and southern Ventura County, all of which are within the comparison shopping commute range of Westside auto customers. Within this competitive market, there are eight cities with dealership volumes comparable to that in Santa Monica. These are noted by the shaded rows in Table 3 on the following page. All of these competitive areas, including the "auto rows" in Alhambra, Glendale, Van Nuys, Pasadena and Torrance, have less restrictive development standards and operations regulations for dealerships than Santa Monica.14 The auto malls in Cerritos, Long Beach and Valencia were designated specifically by those communities in order to attract auto dealerships, because of their high sales tax revenues. Though none of these competitive areas has a household income profile as attractive to auto dealerships as Santa Monica's, none of them has to contend with the special challenges of operating in Santa Monica. These challenges include: 11 See http://www.DriversSeat.com, sponsored by the National Association of Automobile Dealers. 12 For example, Parts.com, Inc., is planning to sign up at least half of the nabion's auto dealers to participate in its real-time, business-to-business parts exchange, a supply-chain management service. "Parts.com Signs ?3 New Dealerships," Business Wire, June 23, 200t3. Carabunga.com, Inc. provides customized on-line promotions (e.g., instant letters, e-mails and coupons) for auto dealers. 13 A recent forecast of the City's economy lists auto sales as "immune" to possible erosion of the sales taac base due to e-commerce. Lisa M. Grobar, Ph.D. and Joseph P. Maggadino, Ph.D., "City of Santa Monica Economic Forecast Conference," November 18, 1999, p. 46 of presentation slides handout. 14 The zoning standards in these other areas are discussed in Chapter IV. HAMILTON, RABINOVITZ & ALSCHCTLER, Irrc. Page 14 Industry Characterisdcs Table 3 Distribution of Major New Car Auto Malls and Auto Rows in Los Angeles County (shaded locations are comparable to the scale of Santa Monica's auto row) Location p Auto Mall Number of Number of or Auto Dealerships Manufacturers Row SANTA MONICA Row 19 27 (SM/WILSHIRE BOULEVARDS! <»::::<::>:::::>:::;::~::::: ~::;::»::;. ; ;~ ;._..:..;:::.:.. .~::>:.:: .::.... -.:>::::,. . ::::;:~4~et~ia~s::: : ai~.~t~ee# <::: ~.:::. :.: ::.:.::..: ~ .. ......... ............ z:~>;:;::«:>::::>:«:::<;:::;<z::<: °",". .....:.... ...... . ;::: :.~~aii~::>;:::::>~~>`::::;::: ................................ >:::.:;<:;>::>:;;.»:<:>:<:;::>::;:»: ..::::::..: ::::>::::;.:<:>::1~:::>::::>:;::::::::::><>: ...... »>:~;> .?;~;> `::~.:;:<'>:> :::::>::>:::>: ::~>:::': .:...~ . ..............:... Beverly Hills (Wilshire BIvd.) Row 11 14 Carson (Avalon BIvd.) Row 5 7 ;;:::.; ::.;:.:..:.:>;:.;:.;.: ..>:.;:.:.;:.; ::.<:>::..::.::; . :.:.::.:.:::.:::::::::.. ;::~rr~tins:::::::::>:~:'':~:<>'::::`:....: .,' : . ;;:~:;::;~ :::':::::::.'_<:::'::: ~ ..... :`:`<;::::::::1 `:>:::.>`~`::::[:::::::`~~: `~><::::~~~:: `:'~:~::~3<[i:::;::.«.'.:~:: ';' ............. Culver City (Washington St.) Row 9 14 Downey (Firestone BIvd.) Row 5 10 Duarte/Monrovia lCeMnI Ave) Row 11 17 EI Monte Row 8 10 ::>:<: ;:>.dal'::`>,",`,.'.:;;<.> , _ Iv >Gtet~ e.. Hra~td B d. ~:::.:::::.,. _ 1 <:»::>>:»::»:::>:>;::::> ::::::::::::: <ii::>:::F~a~ti::;:::::;'::>s;::>:::::> ::>:>:>::;:::~>:::>::<:«>:;:>::::>:=:::::» :_:<::>::?:::>~::6<::<':<::::;::::;:::;::<: :<:::; ::::?:::::::~':'?:`>:::::<':`:`>::::>:': ::>::::»....... ~........ Industry (Puente Hills) Mall 8 16 St•~ Manhattan/Redondo Beach Bwa~ West Covina (Garvey Ave1 Row 9 15 Whittier Row 11 16 Woodland Hills Row 6 10 Source: HR&A HAMILTON, RABINOViTZ & ALSCHULER, INC. Page 15 Row 6 8 Industry Characteristics ^ A Truncated Markel Area. The market area for the Santa Monica dealerships is truncated by proximity to the Pacific Ocean. Few other dealership concentrations have similar geographic limits on their market area. ^ Lack of Visibility. Santa 1C~Ionica's dealerships do not have the direct freeway frontage and access that many of their competitors in the market area enjoy. Their locations on Santa Monica Boulevard means that shoppers must work a little harder to find them, which is not as conducive to capturing customer attention and closing sales. On the other hand, Santa Monica's "auto row" has a tong history in the marketplace. Constrained Dealership Sites. Santa Motica's dealerships are situated on very small, expensive sites with a median land area of about 70,000 square feet. This requires Santa Monica dealerships to lease or purchase additional sites, sometimes far removed from the dealership, to house all of its functions and inventory storage. This adds to operating costs, directly through additional facilities expenditures, and indirectly, as a result of functional inefficiencies. Dealerships in most of the competitive areas do not have these site size probtems and certainly not its direct costs. Immediately Adjacent Residerttial Neighbors. The Santa Monica dealerships directly abut multi-fanrily residential neighborhoods, which requires special sensitivity, and sometimes extra mitigation cost. It also restricts the ability of dealerships to expand horizontally in all directions. Neighbors have been vocal and effective in making their concerns about dealership-related noise, vehicle inventory off-loading, test drive routes and off-site employee parking known to City decision makers. ^ Complex Facilities Approval Process. As discussed in detail in Chapter IV, City decision makers' response to the concerns of residential neighbors near auto dealerships has resulted in a set of requirements and discretionary review processes for new facilities, and most facilities modifications, that are complex, time- consuming and costly. These processes can involve multiple hearings before the Planning Commission, Architectural Review Board and City Council. Auto dealership facilities procedures in most of the competitive areas have as-of-right regulations or discretionary processes that are much less time-consuming and costly. The specifics of the City's land use and operations requirements, and the approval process for making modifications to existing dealersiup sites, are discussed in Chapter ~/. HAMILTON, RABINOVITZ & ALSCHtJLER, INC. Page 16 N. CHARACTERISTICS OF THE CASE STUDY FRANCHISED NEW VEHICLE DEALERSHIPS This Chapter presents a profile of°the dealerships based on the 10 dealership case studies. This includes their physical characteristics, parking and traf~ic circulation characteristics, and operational characteristics as well as their employment profile, and estimates of the tax revenues and other economic benefits they generate for the City. Summary profiles for each dealership that participated in the survey, including site photos, are included in Appendix A. A. PHYSICAL CHARACTERISTICS 1. Land Area and Buildings The scale of Santa Monica auto dealership facilities differs significantly from much of their competition, particularly dealerships located in auto malls planned specifically for their needs. According to one comparative study, the average auto dealer nationally occupies seven acres of land, and dealerships in suburban locations typically occupy between five and 20 acres.' Planning standards vary from manufacturer to manufacturer and by sales volume target. A review of available planning standards and interviews with dealership representatives indicate that most are below manufacturer's planning standards. A few specific examples: ^ W. I. Simonson Mercedes Benz. The manufacturer's recommendations for a dealership with the sales volume of W. I. Simonson, call for 10.2 acres of land and 106,000 square feet of covered floor area for sales, parts and service. In contrast, the Simonson dealership has 1.4 acres of land, or just over one-tenth (14%) of the manufacturer's recommendation. Actual floor area (about 87,000 square feet of building area, prior to its recently approved expansion project) is about 20 percent below the manufacturer's recommendation. The dealership's recently approved expansion plan will still fall below manufacturer's standards. ^ Santa Monica Nissan. The manufacturer's standards include 2.b acres of land and about 26,000 square feet of building area for new and used vehicle sales, service and parts. This dealership meets most of the building floor area requirements, but only about half (56%) the land area standard, primarily for service vehicle parking. ^ Sheridan Toyota. This dealership slightly exceeds minimum total building floor area required by the manufacturer, but is deficient in land area by about one acre, which contributes to a parking deficiency of 45 spaces. Christopher Burke, "Acres of Automobiles," Zoning News, June 1997. HAMILTON, RABINOVffZ & ALSCHULER, INC. Page 17 Dealership Characteristics ^ Infrniti of Santa Monica. This dealership exceeds manufacturer's minimum standards for the number of service bays and size of the parts department, but has only half the required sales showroom floor area and 17 percent less auto service floor area. The median land area for the 10 dealerships analyzed for this study is 82,400 square feet, or1.89 total acres, including off-site land used primarily for inventory storage. The median for sites where the sales activity is located is 61,250 square feet, or 1.41 acres. Total building floor area for sales, service and parts storage varies considerably among the dealerships, with a median of 20,000 square feet, as shown in Table 4. The median effective Floor Area Ratio (FAR) for dealership on-site facilities is 0.33,Z or the equivalent of building a one-story structure on one- third of the site. Table 4 Buiiding Floor Area and Land Area at 10 Santa Monica Auto Dealerships Dealership On-Site Facilitiss Overall Off-Site Facilities Total Facilities FAR' Floor Area Land Floor Land Floor Area Land Area Area Area Area Lynch Motors 17,000 52,500 0.32 0 35,000 17,000 87,500 Inifiniti of SM 13,882 30,000 0.46 10,000 20,000 23,882 50,000 W.I. Simonson 86,878 62,500 1.39 0 27,200 86,878 89,700 Saab of SM 10,650 37,500 0.28 0 0 10,650 37,500 SM Ford 27,888 90,000 0.31 0 30,000 27,888 120,000 Sheridan Toyota 32,242 712,500 0.29 0 15,000 32,242 127,500 Hornburg Jaguar 7,500 15,000 0.50 105,000 0 112,500 15,000 SM Nissan 29,402 90,000 0.33 0 0 29,402 90,000 SM BMW 9,300 60,000 0.16 1,000 17,300 10,300 77,300 SM Acura 23,000 63,750 0.36 0 0 23,000 63,750 Total 257,742 613,750 116,000 144,500 373,742 758,250 Median 20,000 61,250 0.33 0 16,150 25,885 82,400 Average 25,774 61,375 0.44 11,600 14,450 37,374 75,525 ' Includes all on-site (i.e., principal dealership Iocation) land area, regardless of underlying Zoning. Sources: Each dealership; HR&A This shortage of land area makes it necessary for nearly all of the case study dealerships to store new vehicle inventory at an off-site location, such as leased space at Santa Monica Airport. The scale of off-site storage ranged between 45 and 175 vehicles per dealership at the time of the survey, with a median of 100 vehicles. Four of the dealerships are unable to accommodate parking for all of their service vehicles on site. At the median, 25 repair vehicles are stored off- site. These remote storage arrangements add vehicle trips to City streets, impose additional ` This estimate counts total site azea, including land located in non-residential zones. The City's FAR calculadon method counts only the commercially-zoned land area. HAMILTON, RABINOVTfZ & ALSCHULER, Irrc. Page 18 Dealership Characteristics unproductive labor costs on the dealership, and jeopardizes sales, because customers cannot view a dealer's complete inventory without making an additional trip to the off-site storage location. Many of the dealerships have been permitted by the manufacturers to operate in below- standard size facilities in light of Saz-ta Manica's situation, or because the dealership's sales volume provides them sufficient leverage to operate somewhat differently. But even the City's strongest dealerships are coming under increasing pressure to meet manufaeturer standards. Failure to do so could result in a requirement` to move the dealership to a new location where the facility standards can be achieved, or loss of the franchise.3 In addition, several major manufacturers have initiated certification programs, such as Ford's Blue Oval program, which allow dealerships preferential access to vehicles and other benefits. The certification standards include minimum customer satisfaction thresholds and minimum facility standards, including favorable comparison with facilities at competitive dealerships. 2. Service and Parts Facilities The dealership facilities include a variety of vehicle service lifts, pits and alignment racks. Including all types, the median number of service bays among the 10 case study dealerships is 24 service bays. These are contained in either fully enclosed (82%) or partially enclosed (18%) buildings . None of the dealerships has a service bay located outside of a structure. 3. Zoning Of 12 dealerships analyzed, only four dealership facilities are totally contained on land that conditionally pernvts dealership use (C4 Highway Commercial and C6 Boulevard Commercial), as shown in Table 5. Five dealerships have one or more parcels that are in the "A" Off-Street Parking Overlay District, six dealership sites include parcels that are zoned for muiti-family residential use, and one includes parcels zoned for commercial-professional use.4 The City's zoning regulations impose strict limitations on the uses that can be made of dealership parcels and buildings not located in the C4 and C6 Districts,s and the extent to which they can be remodeled or built upon for auto dealership use. These restrictions, which are discussed in Chapter V, make it very difficult for dealerships to resolve facility deficiencies. They are a particular impediment to resolving the need for adequate on-site parking supply. 3 Source: Interviews with dealerst-ip owners. ' In this zoning subsection, data are also included for the Claude-Short Dodge site (now BMW) and Santa Monica Volkswagen site. ' As previously noted, dealerships are also conditionally permitted in the CS Special Office District and LMSD Light Manufacturing and Studio District, though none of the primary dealership sites are iocated in those zones. HAMILTON, RABINOVITZ & ALSCHLJLER, INC. Page 19 Dealership Characteristics Table 5 Proportion of On-Site Land by 2oning District at 12 Santa Monica Auto Dealerships' Dealership ~ C4 Other R2-A R2 Total C6 Commercial R3-A R3 Lynch Motors 72% 14% 14% 100% Inifiniti of SM 75% 25% 100% W.1. Simonson 64% 36% 100% Saab of SM 100% 100% SM Ford 50% 50% 100% Sheridan Toyota 87% 13% 100% Hornburg Jaguar 10096 100% SM Nissan 83% 17% 100% SM BMW 88% 12% 10096 SM Acura 71 % 17% 12% 100% Claude Short Dodge 69% 31 % 100% SM Volkswagen 94% 6% 10096 Overall: Percent Conforming C4 & C6 78% Percerrt Non-conforming 22% ' Includes Claude Short Dodge and SM Volkswagen, which provided site information only. • Sources: Each dealership; HR&A B. PARKING AND CIItCULATION PATTERNS Fu1l-service auto dealerships feature unique parking and traffic circulation issues that are critical to the efficient functioning of the business. These are also a primary source of imtation to some residential neighbors. As noted above, every one of the case study dealerships is too small to accommodate its new vehicle inventory, let alone sufficient on-site parking for customers and employees. The result is that most employees park on City streets, including the adjacent residential neighborhoods. Traffic circulation issues include drop-offs of new vehicle inventory, repair vehicles and parts deliveries. In addition, new vehicles are test-driven by customers and repair vehicles are test-driven by service personnel, also on City streets. 1. Parking Demand and Supply Table 6 provides an estimate of the average on-site parking demand and on-site parking shortage for a typical day for each of the case study dealerships. The data show that most dealerships experience moderate to severe on-site parking shortages for operations, forcing the employees and/or customers to park on-street and off-site. Nearly all (98%} of dealership employees drive to work each day, with the balance using a bus, bicycle or walking to work. At HAMILTON, Rwsn•tovrrz & At.sct-t[n,Ert, INC. Page 20 Dealership Characteristics the median, only 12 percent of employees park on site. Another 21 percent park at another off- site dealership location. But two-thirds of all employees park on City streets. As Table 6 indicates, only one dealerships currently has suf~'icient on-site parking supply for all of its needs, including sales inventory. At all of the other nine dealerships, however, the estimated on-site shortage ranges between 19 spaces and 271 spaces. The total on-site parking deficit is about 1,200 spaces and the median deficit for an individual dealership is 136 spaces. City parking requirements apply to sales and service areas, but do not include parking required for sales inventory. Thus, some dealerships provide enough parking to meet Zoning Code requirements, as show in Table 7, but these requirements fall far short of actual demand (compare Total Required column in Table 7 with Parking Demand column in Table 6). 2. Traffic Circulation Auto dealerships generate street traffic from customer visits (sales and repair), employee commuting, parts and inventory deliveries and tow truck drop-offs. Auto dealerships also generate traffic circulation from customer test drives and test drives by vehicle repair staff. This has been a source of concern to neighbors residing in the vicinity of the dealerships. The case study dealerships report a median of two parts deliveries and two tow truck drops per day. The median number of vehicle deliveries by truck is 1.5 per week. The dealerships have no control over the scheduling of these deliveries. Every dealership is now required to have plans approved by the City's Tr~c Engineer specifying: 1) the routes that may HAMILTON, RABINOVITZ & ALSCHtJLER, INC. Page 21 Dealership Characteristics Table 6 Santa Monica Auto Dealer Parking Demand Analysis Parking Demand Parking Supply Net On-site Dealer Parking Sales Repa's Employes Sslee/Repeir Parking No. of Total Su-plual Vehiclea Vehicles Parking Vehieles Demand' Servica On-site Deficit On-site On-Site Demand Storad Off- Bays Spaces Sita Qvaisble Z Lynch Motore 67 60 65 125 327 30 100 -197 Infiniti of S.M, nIa 10 60 155 235 14 25 -196 W.I. Simonson 60 70 110 80 330 46 104 -180 Saab of S. M. 20 30 22 51 133 16 67 -50 S. M. Ford 25 140 70 175 420 52 349 -19 Sheridan Toyota 205 125 90 100 530 24 400 -106 Hornburg Jaguar 35 24 42 225 336 24 41 -271 S. M. Nissan 250 40 73 n/a 373 19 376 22 S. M. BMW 30 0 75 80 195 23 7 -165 S. M. Acura 50 50 45 75 230 5Q 150 -30 Total 3,109 -1,192 Median 43 45 68 90 329 24 102 -136 Average 74 55 65 107 311 30 162 -119 ' includes en average of ten epaces per dealership for eales cuetomers. ~ Totei of sales vehicles plus repair vehiclee plus customer/emptoyee epaces riminue service bays. Source: Meyer, Moheddese Aseociates, Inc.; HR&A HAMtLTON, RABINOVITZ & ALSCHULER, INC. Page 22 Dealership Characteristics Table T Zonin~ Code Parking Requirements vs. Parking Provtded at 10 Dealerships Showroom parking ~ Service & Parking ~ Parking ~ Parking @ Total Total Deaiership ~ Buiidings~ 1: 400 gsf PartsZ 1: 500 gsf Other on-site 1: 500 gsf Seroice 8ays ?lBay Required Provided Difference (gross SF) (gross SF) (gross SF) lynch Mota~s 4,5~0 11 12,500 13 0 0 30 60 84 1~0 16 Infiniti of Santa Monica 5,139 13 6,407 6 2,336 5 14 28 52 25 -27 W.I. Simonson, Inc. 5,260 13 78,600 79 3,018 6 46 92 190 104 -86 Saab of Santa Monica 0 0 10,150 10 500 1 16 32 49 67 24 Santa Monica Ford 3,528 9 18,360 18 6,000 12 52 104 143 349 206 Sheridan Toyota 7,290 18 17,512 18 7,440 15 24 48 99 400 301 Hornburg Jaguar, Inc. 3,500 9 0 0 4,000 8 24 48 65 41 -24 Santa Monica Nissan 6,806 17 22,596 23 0 0 19 38 78 376 298 Santa Monica BMW 2,900 7 6,200 6 200 0 23 46 60 7 -53 Santa Monica Acura 3,600 9 17,400 • 17 2,000 4 50 100 130 150 20 Total 42,523 106 189,725 190 25,494 51 298 596 943 1,619 676 Median 4,050 10 14,950 15 2,168 4 24 48 81 102 18 Averege 4,252 11 18,973 19 2,549 5 30 60 94 162 68 Does not indude outdoor display area, which was not analyzed separately in the dealership survey. 2 Assumes asessible non-bay area at 50°~ x total. Floor area for parts separate from service is not available. 3 Specific building use not speafied by dealerships; use non-bay service standard for parking. Sources: HAt~i1LTON, RABiNOViTZ & ALSCHULER, INC. Page 23 Dealership Characteristics be used by customers and repair personnel to test drive vehicles, which must avoid the use of residential streets and alleys between the dealerships and adjacent residential property;b (2) a plan for the control of traffic in atleys between dealership sites and adjacent residential property;' and (3) a plan for loading and off-loading vehicle delivery trucks.g HR&A's review of City records indicate that seven of the 10 dealerships t°hat participated in the survey had such plans on file. Off-loading of vehicle delivery trucks on City streets, other than Santa Monica Boulevard, adjacent to the dealership site (i.e., within the depth of commercial zoning) is permitted by the City's Parking and Traffic Engineer, for existing dealerships. Loading and unloading must be performed on private property for new dealerships, or existing dealerships that are "substantially" remodeled.9 This requirement poses a significant challenge for facility planning on already constrained sites. C. OPERATIONAL CHARACTERISTICS The case study dealerships are all open for sales business seven days per week. Parts and service is open weekdays at all dealerships, and half provide Saturday service hours. At the median, sales hours are 9am to 8 pm Monday through Friday, 9 am to 6 pm on Saturdays and 10 am to 5 pm on Sundays. Weekday parts and service hours, at the median, are 7am to 6 pm. Saturday hours, for those who keep them, are 8am to 5 pm. Interviews with dealership management indicate that in response to neighborhood complaints and City code enforcement action, intercom paging audible at outdoor parking areas has been replaced with other means of on-site communication between operating departments. D. EMPLOYMENT The case study dealerships employ a total of 832 employees, or a median of 82 workers per dealership. Nearly all (98%) employees work full-time. Ab'out one-third (35%) of the employees work in sales and dealership management, and about two-thirds (65%) work in the parts and service sections of the business. Median compensation paid to dealership employees ranges from about $29,000 for service department personnel to about $38,000 for sales, management and parts department personnel. This level of earnings exceeds the average for all industries in Los Angeles County ($36,067) and is about three times the average for eating and 6 Santa Monica Municipal Code (SNIIvIC) § 9.04.14.060(j). ~ SMMC § 9.04.14.060(k). g SMMC § 9.04.14.060(fl. 9 Id. HAMILTON, RABINOVITZ & ALSCH[JLER, INC. Page 24 Dealership Characteristics drinking establishment workers ($12,959)10, the next highest category of sales tax-producing businesses in Santa Monica after auto dealers. About 10 percent of dealership empioyees reside in the City of Santa Monica, and these are about evenly divided between sales/management personnel (44%) and parts/service personnel (56%). E. TAX REVENUES TO THE CITY OF SANTA MONICA AND OTHER ECONOMIC IMPACTS Nationally, and in each state, auto dealerships are an important source of economic vitality. Total industry revenue was about $608 billion in 1999, which supported about one million jobs and $42.5 billion in payrolls." In California, auto dealerships, though they represent less than two percent of retail establishments, account for about 20 percent of total retail sales and 11 % of retail payrolls and five percent of total retail employment.12 In Santa Monica, auto dealerships yield substantial General Fund tax revenues due primarily to the sales ta~c on vehicle sales and leasing. The City collects one percent of the total price paid for a vehicle, or about $250 on the average new vehicle (i.e., the national average of $25,000). Inasmuch as Santa Monica's dealerships include nearly every major luxury vehicle line, the average tax paid per ve~icle in Santa Monica is probably higher than in other jurisdictions. Sales tax is collected on leases as well as sales that originate in the City, though the taxes on leases are paid over time with each monthly lease payment, rather than in the lump sum associated with a sale. As a group, auto dealers (new and used) and auto parts and supplies account for the largest share of City sales tax revenues,13 and auto dealerships dominate the contribution of that group of businesses. In addition to the sales tax, the City of Santa Monica also receives a portion of the property tax, and all of the business license tax and utility users' tax, paid by auto dealerships. The property tax estimates shown here reflects only the portion of the tax that accrues to the City's General Fund (about 14% of the one percent general levy), and does not include the portion that goes to the City's Redevelopment Agency,14 but does include the amounts paid for direct 10 Average wage data are from the U.S. Bureau of Labor Statistics for Los Angeles County in 1998, the most recent year for which these data are available. ~ 1 NADA Data 2000, op. cit. ~z Id. 13 Auto-related businesses accounted for 1~% of the City's taxable sales during the first quarter of 1999, the latest available data published by the State's Board of Equalization. Eating and drinking establishments were the next largest contributors at 15% at taxable sales. 14 For those dealerships located west of Cloverfield and 26~' Street, about 80% of the incremental increase in taa:able value above the 1994 base year is paid to the Redevelopment Agency. The data necessary to calculate HAMILTON, RABINOVTfZ & ALSCHLILER, INC. Page 25 Dealership Characteristics assessments and bonded indebtedness. Total taxes paid by the 10 case study dealerships was $13.5 million in calendar year 1998. The portion collected by the City of Santa Monica is estimated at $1.9 million, as shown in Table 8, with more than three-quarters of the total from the sales tax (SO%). The median total taxes generated for the City was about $172,000 per dealership. Table 8 Annual Tax Revenues to the City of Santa Monica From 10 Case Study Auto Dealerships, 1998 Sales Tax' Property Business Llcense Utility Users' Total Tax2 Tax Tax All 10 Dealerships 51,540,605 567,370 5242,240 S76,899 51,927,113 Median Per Dealership S133,571 S5,164 S25,000 S8,040 $171,775 ' Estimate is based on 12.12% (1 %/8.25%) of total sales taxes paid, as reponed by each dealership. z Estimate is based on each dealership's reported property tax paymerrts and the City's 14% share of the property tax to the General Fund. Sources: Each Dealership; HR&A, Inc. The estimates for the 10 case study dealerships are generally consistent with their revenue contribution as of 1997, when the last portrait of the auto dealership's contribution to City tax revenues was prepared.15 The previous estimate, which was based on data from13 franchise dealerships, estimated that total revenue to the City from all tax sources was about $3 million, or about three percent of the City's Gencral Fund revenues in that year. This equated to a per- dealership average of about $160,000 In addition to tax revenues and employment, the auto dealerships contribute to the City's economy though their purchases of goods and services, primarily auto supplies, parts and gasoline, from other Santa Monica businesses. The 10 case study dealerships report a total of $1.7 million in such transactions w~th other local businesses in the last year. These expenditures generate still more tax revenue and support additional local employment. According to one recent forecast, the rate of growth in the City's sales tax revenues may decline somewhat over the next feu~ ~•ears "' Thus, retaining high tax revenue generators, of which auto dealers are the highest, v~711 be particularly important to maintaining the City's future fiscal stability. this additional ta~: revenue stream to the Cin~ w•ere not readily available. Thus, the total tax revenues produced for tlie City by the case study dealerships undoubtedl~~ exceeds the estimates reported here. ls Hamilton, Rabinovitz & Alschuler, Inc., Issues in Setting a Reasonab/e Business License Tax Formula jor Santa Monica Auto Dealerships, prepared for the Chamber of Commerce, June 2, 1997. 16 Lisa M. Grobar, Ph.D. and Joseph P. Magaddino, Ph.D., "City of Santa Monica Economic Forecast Conference," November 18, 1999, p. 44 of presentation slides handout. HAMILTON, RABINOVITZ & ALSCHlTL6R, INC. Page 26 V. CURRENT CITY REGULATIONS This Chapter presents the evolution and current details of the City's extensive zoning regulations that apply to auto dealership~: It also identifies which of these regulations have proven to be problematic for the dealerships as they contemplate improving and/or expanding their facilities in order to address existing facility limitations (including on-site parking deficits), comply with the demands of the manufacturers that grant their sales franchises, and remain competitive in the marketplace. A. PERMITTED USES AND PROPERTY DEVELOPMENT STANDARDS 1. Land Use Element of the General Plan The 1984 update to the Land Use Element of the City's General Plan establishes the City's general policy for accommodating the needs of auto dealerships. The property development standards were set at levels intended to ensure that auto sales would continue to serve as a major revenue source for the City, and promote consolidation of dealership functions on site,l but subject to design guidelines that would enhance the visual character of the streets where dealerships are located.2 The Land Use Element also includes numerous standards and guidelines for protecting r~sidential neighborhoods from the impacts of adjacent commercial development. Land Use Element Policy 1.6.2 provides the applicable maximum physical development standards and requires that they be assessed periodically to make sure they are fulfilling the Element's policy to accommodate dealerships in the City:3 "Encourage new and expanded automobile dealership development on Santa Monica Boulevard so that they may continue to prpvide for the sales and service of automobile and related activities. Allowable intensity shall be a maximum of 3.0 FAR and 54'. .. These development standards should be reviewed periodically to ensure that automabile dealerships are not being displaced due to insufficient expansion potential or to other uses locating in the area. All new dealership construction shall, to the extent feasible, contain auto sales, service, employee and visitor parking, and auto inventory on-site." and 90. City of Santa Monica, Land Use and Circulation Elements, adopted October 23, 1984., at pp. 53, 72 2 Id., at p. 53. 3 Id., at p. 90. HAMILTON, R~sttaovrrz & At,sct-nn.Etz, INC. Page 27 Current Regulations The Land Use Element standards were arrived at following discussions with the auto dealers about then-applicable manufacturers planning standards and review of preliminary expansion proposals for the Honda dealership.4 As a result, the development standards for auto dealerships were set at more generous levels than for other uses in the same districts. s Notably, the Land Use Element cantemptates that Santa Monic auto dealerships will expand vertically, rather than horizontally, by allowing sufficient height and density for such expansion. Land Use Element Policy 1.2.3 also provides that parking stnictures and subtertanean parking should be permitted on "A" lots, with appropriate design considerations to ensure compatibility with adjacent residentiat land uses.6 2. Zoning Code Requirements Auto dealerships aze one of the most heaviiy regulated Iand uses allowed under the City's zoning code.' In addition to general standards affecting the physical development potential and pazking requirements for dealership sites, the zoning code includes numerous requirements on dealership operations, Iandscaping, environmental issues and signage. These requirements are spread across numerous subsections of the zoning code, making it difficult for even experienced users of the code to find and understand all of the City's requuements. The City's zoning code was modified during the late 1980s and early 1990s to address the 1984 Land Use Element update and changes in local conditions since the update was adopted. The zoning regulations ultimately adopted for the areas where auto dealerships are pernutted to locate and/or expand specified floor area ratios ("FAR") and building height limits substantially lower than the limits in the Land Use Element update. The Zoning Code now includes a number of new and revised standards concerning dealership operational characteristics and design. Unlike the Land Use Element standards, there is no indication that the current Zoning Code standards are based upon any study or assessment of auto dealership facility needs. As will be discussed below, the height and density reductions in the Zoning Code are inconsistent with the development standards in the Land Use Element, which were specifically selected to facilitate expansion of existing auto dealerships, in order to ensure their continued viability in the City. " Staff Report to the City Council for Consideration of the Final Land Use and Circulation Elements and Final Environmental Impact Report, August 7, 1984, at p. 24. ' The standards for uses other than auto dealerships were set at 2.0 FAR and three stories (45 feet), or up to 2.5 FAR and four stories (56 feet) with site review. Land Use Element Policy 1.6.2. 6 Land Use and Circulation Elements, at p. 84. ' Only non-parabolic and parabolic antennas (SMMC § 9.04.10.06), and service stations (SMMC § 9.04.14.040), get more column inches of teact in the City's zoning code than auto dealerships, and they have the advantage that all of their requirements are located in a single section of the code. HAMILTON, RABINOVTfZ & ALSCHULER, INC. Page 2$ Current Ref;ulations The zoning requirements appiicable to physical development of dealership facilities are summarized beiow. Excerpts from the zoning code are included in Appendix B. ^ Permitted Locations. Auto dealerships are not listed as an unconditionatly permitted use in any of the City's 10 commercial zoning districts, even the C4 Highway Commercial District, which is specifically intended to ". .. encourage service commercial businesses, auto sales and service dealerships, and other similar uses that serve regional community, and local needs, while respecting adjacent residential neighborhoods and established neighborhood commercial areas . . ." (SMMC § 9.04.08.22.010; emphasis added). Instead, dealerships are permitted only under one of two conditional circumstances, which differ according to the scale of expansion planned for an existing dealership, or whether a completely new dealership is proposed.g Expansions of up to 10 percent, but not exceeding 5,000 square feet, are permitted with approval of a Performance Standard Permit (discussed below).9 New dealerships, or expansions of existing dealerships in excess of 10 percent or more than 5,000 square feet, whichever is less, are permitted with approval of a Conditional Use Aern-it (also discussed below).'° This conditional framework appties to the C4 Highw~ay Commercial District, C5 Special Office Commercial District, Cfi Boule~•ard Commercial District and the LMSD Light-Manufacturing and Studio District ^ Maximum Br~ildri~~ Ne•~~,-ht The regulations vary by District, as shown in Table 9. ° Under a zoning code pro~•ision of gcncral appticabiiity, lawfully existing uses at the time the zoning code was adopted or amended may continuc, unless cessation of use is provided for under the code. SMMC § 9.04.06.010(a). Auto dealerships w~ere listed as permitted uses in the C4 Disuict, which previously applied to both Santa Monica and Wilshire Boulevards, prior to the 1988 overhaul of the zoning code, which resulted in their current listing as conditionally pezmitted uses onl~~. Former SMNiC §9117A(3). 9 SMMC § 9.04.08.22.030. lo SMMC § 9.04,08.22.040(b). HAMILTON, RABINOVITZ c4t ALSCHLJLER, INC. Page 29 Current Re~ulations Table 9 Maximum Building Heights for Auto Dealerships in Santa Monica Dimension Santa Monica ~Ishire C5 Special Lt. Manuf. Boulevard° Boulevard Office District Studio District No CUP With CUP All Proiects All Proiects All Projects # Stories 2 2 3 3 2 Height (feet) 30 30 45 45 30 Source: SMMC §§§ 9.04.08.22.0601a)(2), 9.04.08.26.060(b), 9.04.08.26.0601a), 9.04.08.35.0501al. These values represent the latest in a series of reductions since adoption of the 1984 Land Use Element update. The current standard applicable to expansion projects that might be undertaken by Santa Monica Boulevard dealerships is about half (55%) the scale of the limit set in the Land Use Element update. This reduction was first enacted in 1988, when the zoning code was substantially revised to conform with the Land Use Element update." ^ Maximum Floor Area Ratio (FAR). The maximum buildable "envelope" of auto dealership buildings also varies by location and size of project site, as shown in Table 10. Table 10 Maximum Floor Area Ratios for Auto Dealerships in Santa Monica Project Land Area Santa Monica Boulevard ~Ishire C5 Lt. Manuf. Boutevard Special Office Studio District District No CUP With CUP All P All Projects Ali Projects reiecte 0- 7,500 1.50 1.50 2.00 1.00 1.00 7,501 - 15,000 1.00 1.50 1.40 1.00 1.00 15,001 - 22,500 0.90 1.30 1.20 1.00 1.00 22,501 and up 0.80 1.15 1.10 0.75 1.00 Source: SMMC §§ 9.04.08.22.060; 9.04.08.24.060; 9.04.08.26.060; 9.04.08.35.050. The current FAR values also represent the latest in a series of reductions from the limits established in the 1984 Land Use Element update. The initial set of changes to the zoning ordinance for consistency with the Land Use Element update, adopted in 198$, set the FAR limits applicable to auto dealers at 1.50 for Santa Monica Boulevard, Z.00 for Wilshire Boulevard, and 1.25 for deaterships that ' ~ Former SNiMC § 9020.6(a). HAMILTON, RABINOVTfZ & ALSCHULER, INC. Page 30 Current Regulations might relocate to the CS Sgecial Office District.'Z Thus, for most of auto dealerships on Santa Monica. Boulevard, where nearly all of the City's dealerships . are located, the current FAR standard availabte for major expansion projects is about one-third of the limit set in t~e Land Use Element update and about three- quarters of the limit permittea as recently as I988, as shown in Table 1 I. Table 11 - Maximum Floor Area Ratios snd Building Heights for Auto Dealerships in Santa Monica, 19842000 Santa Monica Boulevard Wilshire BoulevaM Regulation Ne CL1P With CUP All Preiects ~ iand Use Element FAR Range 3.00 NA 2.50-3.04 Bldg. Stories None NA 4-6 Bldg. Height 54 feet NA 56-84 feet 1988 Zoning Code FAR Range 1.50 i.50 2.00 Bldg. Stories 2 2 3 Blda. Heiaht 30 feet 30 feet 45 feet Currerrt Zoning Code FAR Range 0.80-1.50 1.15-1.50 1.10-2.00 Bldg. Stories 2 2 3 Bida. Heiaht 30 feet 30 teet 45 feet Sources: Land tlse Etemerrt, 1984; Zoning Codes, 1988 and 1995; HR&A ^ Floor Area. The floor area used in the FAR calculation does not include subterranean floor area used strictly for parking and ramps between floors, nor unenclosed surface parking, but it does include above-grade parking area at its full value, unless certain design features are present, most of which would not apply to auto dealership projects.13 Roof-top floor area provided as part of a new dealership, or expansion of an e~risting dealership, may be used for pazking on commercially-zoned pazcels, and one-half of it is counted for FAR calculations.'a For new dealerships or existing dealership expansions, a separate section of the zoning code exempts some non-parking uses placed one level below grade from being included in the FAR calculation, if an eyuivalent amount of parking area or ~Z Former SMMC §§ 9020.6(a), 9022.6(b) and 9021.6(b), respectively. 13 These include maximum IO-foot floor-to-IIoor heights, at least one subterranean or semi-subterranean level is inciuded, the partcing is screened from view, there is no ground floor parking within 40 feet of the front property line, and the swcture design is compatible with the attached building. SMMC § 9.04.02.Q30_315. 14 SMMC §§ 9.04.12.040(c), 9.04.16.060(c). HAMILTON, RAB[NOVITZ & ALSCHLJLER, INC. Page 31 Current Re~,*ulations other areas that would not be counted, if placed below grade, are placed above grade.15 For example, service stalls located below grade would not be counted for FAR purposes, provided an equivalent amount of parking area is placed above grade. This FAR "substitution" provision has been a source of controversy in recent dealership reconstruction projects, concerning whether auto inventory storage placed below grade should be counted for FAR purposes. This raises a classic problem with the FAR concept, which is often used to control both building bulk and intensity of use, which are related, but separate issues. Setbacks. Setbacks also define the maximum allowable building envelope by specifying edges of the property that cannot be built upon, in order to buf~er one use from another. The requirements applicable to auto dealership sites include the following: Front Yard. Landscaped strips, as required under separate sections of the zoning code.16 Rear/Side Yard. None required unless parcel line abuts a residentiai district, then a rear/side yard equal to 5 feet +[~stories x lot width~/50 ft.]" The required rear yard may be used for parking or loading to within five feet of the rear parcel line provided the parking or loading does not extend above the first floor level and provided that a wall not less than five feet or more than six feet in height is erected and maintained along the rear commercial parcel line. A required rear yard may not be used for "commercial" purposes.'g A ten-foot setback from an interior property line is required for portions of buildings that contain window, doors, or other openings into the interior of the building. An interior side yard less than ten feet is permitted if provisions of the Uniform Building Code related to fire-rated openings in side yards are satisfied. ^ "A " Off-Street Parking Overlay Lots. Four existing dealership sites include one or more "A" lots. These are transitional use lots, with an underlying residential ls SMMC § 9.04.12.040(p)(2). Due to an apparent misprint in the public copies of the City's zoning code, a truncated parallel provision in the Conditional Use Permit section applicable to auto dealers is included at the end of the air quality section (SMMC § 9.04.14.060(0). 16 SMMC §§ 9.04.08.22.060(c), 9.04.08.26.0960(d). 17 SMMC §§ 9.04.08.22.060(d) and (e), 9.04.08.26.060(e) and (fl. 1% This means that parking would be permitted, but not sales or repair activity, and maybe not storage of inventory. HAMILTON, R,~srrtovrrz & At.scxvt,Ett, INC. Page 32 Current Re~;ulations district designation, that separate commercial from residential uses, and are primarily used for surface parking to support the commercial use. The zoning code imposes certain restrictions on the use of these lots. Existing parking on "A" lots may continue only if: (1) the commercial parcel supported by the "A" lot is not redeveloped; (2) the lot remains as a surface level parking lot; (3) the square footage of the existing commercial building on the commercial parcel is not added to or expanded beyond fifty percent of the floor area existing; and (4) the required parking for any new addition or expansion of less than fifty percent of the floor area is not located on the "A" lot.19 Further, the following uses are prohibited on "A" lots: (1) parking structures located above the ground level; (2) automobile parking, unless all properties between the side property line of the "A" lot and the boundary of any adjacent commercial district or in nonresidential use; (3) rooftop parking directly abutting or separated by an alley from a residential use; and (4) new surface level parking Iots.20 Subterranean parking structures are permitted, provided the site was already in parking use, it is used for parking purposes only, it is accessory to the commercial use, the surface of the "A" lot is developed as landscaped open space, and the entrance to the subterranean structure is from the commercial property only.21 ^ Non-Conforming Uses of Land and Buildings. Three dealership sites include land zoned for residential use, which is supposed to terminate at some point in the future.'~ Non-conforming vehicle sales, service and storage on residential lots may continue as long as these uses are not "intensified"~ and the lots are nor redeveloped for other conforming uses. Building repairs and alterations are limited by a value calculation.24 Building enlargements must conform with current 19 SNIMC § 9.04.08.38.020. 20 SMMC § 9.04.08.38.060. 21 SMMC § 9.04.0838.050(b). ZZ SMMC § 9.04.18.040, generally. ~"Intensification" is a change in mode or character of operation, such as extending hours of operation or substantial remodeling. SMMC § 9.04.18.030(e). 24 Repairs and alterations aze permitted provided the value of the changes over any five-year period dces not exceed half the building's replacement cost. SMMC § 9.04.18.020(a). HAMILTON, Rr~Bn~rovTrz & ALSCHt1LER, INC. Page 33 Current Re~;ulations regulations.25, and the sites are not redeveloped for other uses. Non-confornung auto storage lots may remain in use provided the storage is not expanded or enlarged and the lot is not redeveloped for another use.26 ^ Auto Storage Lots in the ~roadway Commercial District. One deatership maintains inventory storage lots on Broadway, from a period that predates the Land Use Element update's creation of a Broadway Commercial District, whose zoning code development standards favor mixed-use (i.e., residential and neighborhood commercial) development. These lots must conform with a number of reyuirements concerning use of yards, exterior and interior landscaping, access, lighting, paving and design review.27 Otherwise applicable development standards for large sites (i.e., 22,501 s.f. or more) include an FAR of 0.80, two stories and 30 feet.28 B. PARKING AND TRAFFIC CIItCULATION The zoning code also includes requirements for auto dealerships that apply generally, such as formulas for required off-street parking and vehicle loading, but it also includes a number of additional requirements to address issues specific to the operation of auto dealerships, and their locations adjacent to residential neighborhoods. Required Parking Spaces. The zoning code's parking requirements for automobile dealerships are shown in Table 12. No required parking spaces may be used for vehicle sales, rental or vehicle repair,29 despite the fact that demand for use of these spaces varies by use and time of day. No vehicles to be repaired may be parked or stored on any public street or alley.3o ZS Buildings may be enlarged provided all work conforms to current zoning requirements, including on- site pazking. SMMC §§ 9.04.18.020(b)(1) and (2). Buildings that are deficient in parking by current code may only be enlarged up to 25 percent, provided current code-required parking for the new space is provided. Enlargements of more than 25% may be permitted if parking according to current code requirements is provided for the entire building. SNIlVIC §§ 9.04.18.020(b)(3) and (4). 26 SMMC § 9.04.18.040(d). Z~ SMMC § 9.04.12.100. Z8 SNIMC §§ 9.04.08.14.060(a) and (b). Projects that include residential use or a grocery store are perniitted additional buildable envelope and building height. 29 SMMC §§ 9.04.12.040(c), 9.04.14.060(c). 3o SNIIvIC §9.04.14.060(fl. HAMILTON, RABTNOVITZ & ALSCH[TI,ER, INC. Page 34 Current Regulations Table 12 Off-Street Parking Requirements for Auto Dealerships in Santa Monica Dealership Functional Area Spaces Required Showroom and office area> 1 per 400 s.f. Exterior vehicle display area 1 per Z,000 s.f. Parts department 1 per 300 s.f. Vehicle repair 1 per 500 s.f. of ~on-service bay area plus 2 per service bay Source: SMMC § 9.04.10.08.040; HR&A ^ Loading a»d Unloading Requiremerrts. Loading and unloading of vehicles is limited to 8 a.m. to 5 p.m., Monday through Saturday, even though these hours may not correspond with a dealership's permitted hours of operation as provided by other sections of the Zoning Code. New auto dealerships or substantially remodeled dealerships must provide off-loading facilities on private property (on or off-site), and though shared 1`oading and unloading facilities are permitted,31 there is no provision for when this requirement cannot physically be accommodated. It also does not address common practice, approved by the City's Parking and Traffic Engineer, to use the centerline of City streets (but not Santa Monica Boulevard, a State highway) within the commercial depth of the block for ~ vehicle loading and unloading. When the parcel upon which the loading spaces is located abuts an alley, the loading spaces must be accessible from the alley. The length of the loading space may be measured perpendicular to or parallel with the alley. Where the loading area is parallel with the alley, and the parcel is fifty feet or less in width, the loading area must extend across the full width of the parcel. The length of a loading area need not exceed fifty feet for any two spaces.32 ^ Oueuing of Vehicles. Adequate service customer queuing areas must be provided. These may include required driveways, but not required of~=street parking spaces.33 ^ Test Driving Route. No test driving may be conducted on residential streets or alleys. Dealerships (including existing dealerships) are required to file and obtain approval for a test drive route plan from the City that meets these requirements. 31 SMMC § 9.0~.12.030(fl. 3z SMMC § 9.04.10.010. 33 SMMC § 9.04.12.030(I), 9.04.14.060(I). HAMILTON, RABINOVfi'Z & ALSCHUL,ER, INC. Page 35 Current Re~ulations ^ Alley Traffic. Dealerships are also required to file and obtain approval of a plan for slowing traffic flow in adjacent alleys by limiting speeds to 15 miles per hour, and using signage or other devices to minimize danger to pedestrians, other vehicles, and to reduce noise impacts.3a ^ eirculation. Ingress and egress to the site must be located as far away from residential property as possible, circulation between building levels must be internal and there can be no circulation that requires backing into alleys or other public rights of way. C. OPERATIONAL REQUIREMENTS The City's zoning code also includes a number of requirements that affect the operational characteristics and design of dealership facilities. Existing dealerships, whether or not they seek to expand or improve their facilities, must comply with some of these requirements.35 These are summarized below, and code excerpts are included in Appendix B. ^ Landscape Requirements. A minimum 2 foot landscape and decorative curb strip must be provided along street front of all vehicle display areas. A minimum five- foot landscaped setback is required when a dealership site directly abuts a residential district.36 All areas visible from the public right of way developed to display automobiles for sale, lease, or rent must be screened. Permanent, opaque landscaping, fencing or walls must be provided and maintained at a height of not less than two feet above the average adjacent grade. A minimum of three shrubs per ten feet of linear frontage is required. Required landscaping screening is in addition to the landscape area required for building sites.37 ^ Permitted Hours of Operation. If the dealership is within one hundred feet of a residential district, operation of the dealership is prohibited between the hours of 3a SNIlVIC §§ 4.04.12.030(k), 9.04.14.060(k) 3s These inciude on-site loading and unloading, approved test drive routes, approved control of alley traffic and noise controls. SMMC §§ 9.04.12.040 (a); 9.04.14.040 (a). Most of these requirements apply to: (1) new dealerships; (2) dealership expansions of 50 percent or more of the floor area that existed in 1995; (2) any "adjacent" expansion of the dealerstup's site, whether by purchase or lease; and (3) any "substandal remodel" (i.e., removal of 50% of the exterior walls or load-bearing structural elements). 36 SMMC §§ 9.04.12.040; 9.04.14.060. 37 SMMC § 9.04.10.04.090. HAMILTON, RABINOVITZ & ALSCH[JLER, INC. Page 36 Current Re~ulations l Opm and 7am, unless approval for other hours is granted by the Planning Commission.38 Urban Design Requirements. Ground floor street frontage of each structure must be designed with "pedest°rian orientation."39 Pedestrian oriented design applies to a minimum of 70 percent of the building facade at the ground level street frontage. _ A minimum of 50 percent of the facade to a height of eight feet must be visually transparent into the building. Signage must be oriented and scaled to the pedestrian.ao ^ Commercial Signage. Projects must conform with the City's Sign Code. Among other things, this limits the size, type and placement of signs, and restricts the use of flags, banners, pennants and balloons, as well as temporary (e.g., special sale promotion) signs.a' Vehicle Repair. The auto repair operation must conform with a separate set of regulations applicable to stand-alone auto repair businesses, which were recently revised. The principal requirement is that all repair work must be conducted inside an enclosed building.42 ^ Environmental Mitigation. The zoning code also includes reyuirements for noise control (no outdoor load speakers, 45 dBA limif at a residential property line, muf~led noise-generating equipment, which may not be operated before 8 a.m. or after 6 p.m., noise-absorbent screening of roof-top parking), storage and disposal of toxic materials (compliance with separate service station gas tank and hazardous waste regulations) and air quality (use of brake washers, ventilation directed to the roof and away from adjacent residential property, exhaust systems fitted with technology to minimize no~ous pollutants).a3 3B SMMC §9.04.12.040. 39 SMMC § 9.04.08.20.070. ao SNIMC § 9.04.10.02.440. a' SMMC Chapter 9.52, commencing with § 9.52.010. 42 SMMC §§ 9.04.12.030(h), 9.04.14.040(h), 9.04.14.050. a3 SMMC §§ 9.04.12.030(m), (n) and (o); 9.04.08.14.040(m), (n) and (o). HAMILTON, RABINOVTI'Z & ALSCHIJI.ER, Irrc. Page 37 Current ReRulations D. DISCRETIONARY REV~W PROCESS In addition to the physical development, parking and circulation, operational and design requirements noted above, development of new dealerships and remodels of existing dealerships are also subject to a number of procedural requirements. The cost and time required to complete these processes depend an the issues raised by the project and the number of available appeal steps taken. ^ Environmental Review. The City's guidelines for implementation of the California Environmental Quality Act exempt small projects that add less than 10,000 square feet of floor area &om compliance with CEQA analysis and reporting requirements. Projects that involve more floor area must undergo an Initial Study to deternvne whether a Negative Declaration, Mitigated Negative Declaration or Environmental Tmpact Report is required. Each outcome has different time and cost implications, and may result in yet additional physical or operational reyuirements beyond those already listed in the zoning code, if adverse impacts on the environment are identified. Decision maker decisions on pernut applications may not conclude until these investigations have been comple~ed and presented to them for consideration. ^ Performance Standards Permit ("PSP "). Expansions of existing dealerships involving less than 10 percent of existing floor area, or less than 5,000 square feet, whichever is less, must secure a Performance Standard Permit. This involves a Zoning Administrator determination that an application meets the specific requirements for an auto dealership expansion specified in the zoning code, which include most Qf the requirements described above. The Zoning Administrator's decision is provided to the applicant, adjacent psoperty owners and tenants, and the City's Planning Commission. The Zoning Administrator's decision may be appealed by any person to the Planning Commission, which holds a noticed public hearing to make a final determinatian. ^ Condrtiorral Use Permit ("CUP'). Expansions of existing dealerships, or a new dealership, involving more than 10 percent of existing land or floor area, or more than 5,000 square feet of building or land area, whichever is less, must secure a Conditional Use Permit. This involves a Planning Commission deternunation, following a noticed public hearing, that an application meets the specific requirements for an auto dealership expansion specified in the zoning code, which include most of the requirements described above, and also satisfies other general compatibility findings. The Planning Commission's decision is provided to the applicant, adjacent property owners and tenants, and the City Council. The Comsnission's decision may be appealed by any person to the City Council, which holds a noticed public hearing to make a final determination. HAMiLTON, RASINO~TTZ & ALSCH[JLER, INC. Page 38 Current Regulations Additionally, nearly all existing auto dealerships are essentially legal non- conforming uses, because auto dealerships typically require a CUP and most existing dealerships do not have CUPs. Consequently, any expansion or intensification of an existing dealership, even if minor in nature, requires discretionary review. According to City Planning staff, this review extends to the entire dealership and not simply to the subject of the expansion or intensification of use. For auto dealerships, there are few substantive differences between the requirements for a Performance Standard Permit and a Conditional Use Permit. The required findings to support approval are somewhat more detailed than for a PSP, and include a catch-all general welfare standard.~ The principal difference is procedural: who renders the initial decision, and to whom that decision may be appealed. Because the CUP process is discretionary, auto dealers seeking to expand or redevelop their sites have no assurance of obtaining City approval, even if they agree to comply with all of the City's adopted development and operational standards. The requirement for auto dealerships to obtain a CUP for a project on Santa. Monica Boulevard, which, as noted above, is already identified in the zoning code as a location for auto dealerships, is curious. CUPs are generally required only when there is some question about the appropriateness of a land use at a particular location, or the concentration of similar projects in an area.45 The City's CUP requirement appears designed primarily to ensure that a dealership project of even a small scale will be considered at a public hearing by the Planning Commission, initially, and the City Council on appeal. This goal (i.e., discretionary review) is now satisfied by the reduced Development Review threshold for projects of with 7,500 square feet or more floor area. ^ Development Review ("DR'). Projects exceeding various size thresholds are aiso subject to a separate discretionary approval process that is similar to a CUP, in that it begins with a public hearing before the Planning Commission and may be appealed to the City Council. The required findings are also similar to those for a CUP. Table 13 shows the project scale thresholds requiring a DR pernvt, for zoning districts where auto dealerships are conditionally permitted. °° "The proposed use would not be detrimental to the public interest, health, safety, convenience, or general welfare." SMMC § 9.04.20.12.040(j). as See generally, James Longtin, Longtin's Calijornia Land Use, 2nd Edition, § 3.71. HAMILTON, RAB[NO~'IT~ & ALSCHLJLER, INC. Page 39 Current Regulations 7able 13 Project Size Thresholds for a Development Review Permit in Zoning Districts Where Auto Dealerships are Conditionally Permitted in Santa Monica Zoning District Project Size Threshold Is.f.1 C4 Highway Commercial (Santa Monica 8ivd.) 25,000 C5 Special Office District 30,000 C6 Boulevard Commercia! (wlshire Blvd.) 30,000 LMSD Light-Manufacturing Studio District 30,000 Sources: SMMC 4§ 9.04.08.22.0601f1, 9.04.08.24.06 0(g), 9.04.08.26.060(g-, 9.04.08.35.050(11; HR&A On November l4, 2000, the City Council introduced an interim ordinance to lower the size threshold for projects in these and other districts to 7,500 square feet, pending further review of possible changes to the Zoning Ordinance.46 The interim ordinance will be in effect for 45 days, but may be extended by subsequent Council action. Architectr~ral Revh~-+•. All commercial projects that reyuire issuance of a building permit are subject to review and approvai by the City's Architecturai Review Board ("ARB"). The ARB reviews building design, building materials and colors, landscaping and commercial signage. ab City Council agenda Item 8A, November 14, 2000 regular meeting. HAh41LTON, RABINOVITZ & ALSCHULER, INC. Page 40 VI. PROPOSED MODIFICATIONS TO CITY REGULATIONS In this final Chapter, HR&A offers two primary recommendations for addressing a number of dif~'iculties the auto dealerships have e~cperienced in trying to operate their businesses efficiently, as discussed in previous Chapters, while also being mindful of the conflicts raised by dealership pro~cimity to adjacent residential neighborhoods. A. ACCOMMODATING DEALERSHIP PARHING DEMANDS Resolving the dealerships' needs for on-site parking for their customers, employees and vehicle inventory is the issue that holds the most potential for significantly improving the operating efficiency of the dealerships, and simultaneously resolving a long-festering complaint about employee parking intrusion into adjacent residential neighborhoods. 1. The Principal Options There are at least two possible approaches for providing additional parking supply that merit discussion : ^ Mod~ Property Development Standards to Enable Development of On-Site Parkrng. This approach involves making adjustments to the City's zoning regulations, primarily on Santa Monica Boulevard where most of the dealerships are located, to allow for construction of enclosed parking structures at a scale that meets each dealer's total parking needs. Implementing this approach will require developing a specific set of zoning code text changes, subjecting them to environmental analysis, and processing the changes through the applicable public hearing procedures. Doing so could involve 12-18 months. ^ New Community Parking Structures. An alternative strategy involves the construction of new parking structures on vacant or underutilized sites, that could be used by both auto dealers, other businesses on the same street and the public. This would involve identifying candidate sites (e.g., the Madison School site's Santa Monica Boulevard frontage), designing an appropriate site acquisition and financing strategy (e.g., an assessment district for area businesses coupled with City Parking Authority, Redevelopment Agency or other funding, such as lease revenue bonds), garnering the necessary public support, generating design options, conducting environmental review and obtaining entitlements. This option could take 24-36 months to complete. A shuttle system using a remote parking resource has also been mentioned in recent public forums. This would involve finding a suitable supply of parking elsewhere and operating a system of shuttle buses between that resource and the dealerships. Considering that there are very few HAMIL7'ON, R,~trrovrrz & Ai,sc~tu[,Eit, INC. Page 41 Proposed Modifica~ons such parking resources available,' formulating an equitable financing plan for shuttle operation requires careful analysis, and operating the program in a cost-ef~ective way that suits all of the dealerships and their employee shifts, this is a complex strategy, but one worth exploring. The other options noted above have more significant potential for alleviating a problem common to the auto dealerships and their residential neighbors. In HR&A's view, amending the dealership-related development standards is more practical and has better prospects for a comprehensive solution to a problem that a$licts the dealerships and their neighbors. 2. Analysis of the Zoning Code's Building Envelope Standards The first issue needing resolution, is whether the City's zoning standards, particularly the standards that govern the buildable envelope, allow for the appropriate scale of parking structure that most dealerships would require. HR&A's conclusion is that they do not. Estimated Scale of Structures to Meet Dealership Parkin~ Demand While it is beyond the scope of this assessment to analyze each individual dealership's unique site circumstances, the dealership case studies provide a basis for making reasonable estimates. Based on the 10 dealership case studies, the principal dealership sites (i.e., not including o~ site vehicle storage) are about 62,000 syuare feet, of which approximately 20,000 square feet is currently covered with buildings (usually one story) used for showrooms, vehicle repair, office use or other enclosed dealership functions.2 This leaves appro~cimately 42,000 square feet of site area, on average, that is not currently built upon. Since the potential lot area available for a new parking structure varies significantly from dealer to dealer, preliminary estimates were prepared for a range of attached or detached new parking structure situations, as follows: 10,000 square foot parking structure footprint - appro~cimately 29 spaces per level assuming public/employee parking and 36 spaces per level assuming use for vehicle storage (average of 350 feet per space for public/employee use, including aisles and ramp access, but not space needed for column placements, and 275 square feet per space for vehicle storage with stacked parking.) ^ 20,000 square foot ~arking structure foot,print - approximately 57 spaces per level for public/employee parking and 73 spaces per level for vehicle storage ` The beach parking lots have been mentioned, but this would conflict with public access requirements under the Coastal Act. Santa Monica College's experience operating a shuttle between Santa Monica Airport, the former Madison School site and the main College campus has not solved that parking deficiency. Z These are the median values from Table 4 in Chapter IV. HAMILTON, RABINOVITZ & ALSCHiJLER, INC. Page 42 Proposed Modifrcations ^ 30,000 square foot narking structure footprint - approximately 85 spaces per level for public/employee parking and 109 spaces per level for vehicle storage Approximately 10 to 20 percent additional supply can be gained with attendant-assisted "stack" parking for employees. A structure on a 20,000 square foot footprint could be accommodated at six of the case study dealerships, either on existing open areas, or through reconstruction or reconfiguration of existing facilities. Assuming a parking structure foot footprint of this scale, the basic on-site parking requirements (i.e., customers and employees) could be satisfied at most dealers with a total of three levels (e.g., two above ground, one below, or three above ground), while the highest parking-impacted deal.ers would need up to four levels (e.g., one below and three above, or four above ground). A parking structure with 20,000 square foot levels can provide between 55 and 60 spaces per level, depending on whether the parking is for employees or customers. ffthe structure spaces are used purely for parking of new, used or repair vehicles, the parking count can be increased further to as many as 70 to 75 spaces per level through the use of stacked parking. Figures VI-1 and VI-Z illustrate typical configurations of a parking structure's top level designed for customer parking, and a typical upper floor intended for vehicle storage (i.e., with stack parking), respectively. The tower parking levels would be somewhat less e~icient, due to structural column placements. HAMILTON, RABn~ovrrz & A1.scHin.ER, Irrc. Page 43 ~ ~ 8 ~ ~ ~ ~ Note~ All pnrking stnlls are 8.5' wide nnd 18' deep Approxir~ate Space Count = 75 Note~ Lower levels will ncconr+odnte npproxir~ntely five fewer spaces due to structural colunn plncer~ent M Me~er ~lahoddes Assaiotes~ Inc. M Owd fIi C1r~pny )' Typical Auto Storage Parking Level (Top Level) 20,000 SF Footprint ~ FIGURE 3 Proposed Modi~ca~ons Table l4 provides a rough estimate of how many spaces could be accommodated in a three-level and a four-level structure with a 20,000 square foot footprint. A three-level structure would provide between 164 and 217 spaces (depending on the mix of customer, employee and inventory parking). A four-level structure would provide between 215 and 285 spaces. Compared with existing parking deficits `Chat average 190 spaces per dealership, including off-site inventory, a three-Ievel structure would satisfy current on-site demand at most of the dealers (i.e., new vehicle and repair vehicle customers, repair vehicles, employee parking and some inventory storage), and a four-level structure would generally satisfy the totai parking demand, including inventory now stored primarily off-site. Table 14 Satisfying Dealership Parking Demand On Site Range of Dealership Parking Structure ~th 20,000 SF Per Level Parking Surpius or (Deficit) Three levels Four levels 22 to (271) spaces Public =164 spaces Public = 215 spaces (median = -136) Employee/Storage = Employee/Storage = 217 spaces 285 spaces A parking structure with 20,000 square feet per level is not feasible at some dealerships, due to site constraints or division of the dealership facilities on non-contiguous sites. Two of the dealerships have 30,000 square feet of total land area or less (Infiniti has 30,000 and ~aguar has 15,000 square feet of land area). In those cases, assuming a 10,000 square foot structure level (i.e., leaving one-third of the land open for driveways and setbacks), between 86 and 1 l4 spaces could be achieved for employee and public use, or between 109 and 145 spaces could be achieved for empioyee parking and vehicle storage. In both cases, a structure of this scale would satisfy on-site parking demand, but would not satisfy the additional demand for inventory storage. This would still be a significant improvement over the existing situation in which neither dealership meets the demand for on-site parking for customers, employees and repair vehicles. The cost to construct a three-level structure with 20,000 square feet per level, assuming one level below grade plus two above ground, is approximately $2.38 million dollars. The cost for a four-1eve1 structure could range up to $3.16 miltion.3 Costs would vary based on specific site constraints and engineering issues associated with construction of below-grade parking. Several dealerships indicated that they would seriously consider an investment in new~parking supply of this magnitude if the City's development standards would permit it. They have reservations, however, about the feasibility of below-grade construction and its interference with on-going operation of the dealership. ' These estimates are based on $41 per square foot for subterranean construction and $39 per syuare foot for above-grade construciion. HAMILTON, RABINOVITZ & ALSCHULER, INC. Page 46 Proposed Modifrcations b. Conflicts With the Buildin~ Height Limits Santa Monica City codes for Santa Monica Boulevard parcels set the maximum building height at two stories or 30 feet. For Wilshire Boulevard parcels, the maximum height is three stories or 45 feet. The floor-to-floor buiIding height required for each level of parking is approximately 11.5 feet for a level that conforms to Americans with Disabilities Act (ADA) requirements. Thus, the minimum two levels above grade structure (with one below grade) would require 23 feet of above-grade building height and would fit within existing height and story regulations on either Santa Monica or Wilshire Boulevard, but a structure of this scale would not meet full parking demand for most dealerships.4 Should subterranean construction prove unworkable, three enclosed levels above grade would require 34.5 feet of structure height. A four-level structure, one below grade and three above grade, would also require at least 34.5 feet of structure height above grade, if it were fully enclosed. Four levels above grade would require 46 feet. Neither structure height would be consistent with zoning standards for building stories or building height on Santa Monica Boulevard. Three levels above grade and one below grade would be consistent with both zoning and Land Use Element standards applicable to dealership sites on Wilshire Boulevard, but not four above-grade levels. Therefore, accommodating structures of the scale needed to make a serious dent in the parking supply problem will require an increase in the Santa Monica Boulevard building height regulations to at least 3 5 feet, or more realistically 46 feet, if below grade construction proves unworkable. The number of stories problem could be dealt with by simply eliminating it for parking structures and allowing the overall building height regulation to govern.s c. Conflicts With Floor Area Ratios Another City zoning regulation that affects a dealership's ability to provide additional on- site parking supply is the structure's Floor Area Ratio (FAR), or the ratio of building floor area to lot area. As discussed in Chapter V, the effective FAR for auto dealerships on Santa Monica Boulevard is 1.15 and on Wilshire Boulevard it is 1.10. And this is further limited to just the commercially-zoned land area, although many dealership sites include land located in other zoning districts. Further, the definition of "floor area" that goes into the FAR ratio counts below-grade dealership uses for virtually anything but parking, and above-grade parking structure floor area, unless the structure is designed in a very particular way that is unsuitable for auto dealerships, particularly in a site remodel situation. " As shown previously in Table IV-2, total parking demand exceeds 200 spaces for all but two (Saab and BMW) of the 10 case study dealerships. ' This would be consistent with other sections of the zoning code that rely on height measurement, rather than the number of stories, for parking structures, hotels or other buildings with at least one floor of residential use (e.g., Bayside Commercial District, SMMC § 9.04.08.15.060(a)(1). HAMILTON, RABINOVITZ & ALSCHLJI.ER, INC. Page 47 ProposedModi~canons Thus, three stories of above-grade parking, at a total of 60,000 square feet, plus the median 20,000 square feet of existing showroom and parts facilities, would total 80,000 square feet. Based on the data from Table 4 in the preceding Chapter, about 78 percent of the dealership sites are located in commercial zones. Thus, 78 percent of the median 61,250 dealership site, or 47,725 square feet would be used in the ~ity's current FAR calculation. Accordingly, the 80,000 square foot average total of dealership buildings and needed new parking structure would produce, an FAR of 1.68, which exceeds the FAR applicable to deatership sites of average scale on both Santa Monica Boulevard (1.15 FAR) and Wilshire Boulevard (1.10 FAR). It should be noted that the FAR needed to meet the on-site parking and facilities requirements of the average dealership, according to the preceding estimate, would still be about half (56%) of the threshold established by the City's Land Use Element for auto dealerships on Santa Monica and Wilshire Boulevards (i.e., 3.00). Similarly, a four-level structure above grade, which dealerships with the highest parking requirements would need to meet all of their requirements, translates to an FAR of about 2.10 on the average dealership site, counting dealership land in confornung commercial zones only. This would still be 30 percent less FAR than the standard provided in the Land Use Element for auto dealerships. The Zoning Code's 50 percent floor area discount for roof-top parking is also irieffective, because it applies only to structures on commercially-zoned land, and only if in connection with development of a new dealership or a major remodel of an existing dealership. It is unlikely that additional parking structures of the scale needed could be added to most existing dealerships using only land in conforming commercial zones. The 50 percent discount for roof-top parking is not included in the preceding examples, because the City's past interpretations have prevented using the discount if roof-top parking includes repair vehicles and sales inventory, as distinguished from customer parking. This renders the discount useless because: (1) dealerships would be unlikely to put customer parking in the most remote location just to take advantage of the discourrt; and (2) it conflicts with other City policies (and dealership operational efficiency) that seek to consolidate auto dealership uses on single sites. Further, below-grade parking that is used for anything other than customer or employee parking (e.g., inventory storage or repair work) is also counted in the FAR calculation, even though it adds nothing to the bulk of the structure. Further, not counting any below grade dealership floor area for purposes of calculating FAR could serve as an incentive to construct parking and other facilities below grade, thereby reducing the scale and other externalities of above-grade development. HAMILTON, RABINOVITZ & ALSCHULER, INC. Page 48 Proposed Modi ficadons d. Use of Dealership Land in Other Zones As discussed in Chapter IV, half of the case study dealership sites include lots in non- commercial, ~parking overlay and residential zoning districts, which are subject to a variety of ~se restrictions. If these regulations are not rnodified in a way that pernvts the development of parking structures above and below grade or expansions of other dealership facilities, the dealerships will not have the physical flexibility to reconfigure their sites to accommodate new parking structures. It should be possible, with appropriate design standards and reasonable setbacks from adjacent residential uses, to pernut enclosed or shielded, above-grade and betow- grade structures and other structures on portions of these lots, without jeopardizing the quality of life in adjacent residential buildings. Indeed, if properly designed, such structures may be a better buffer for neighbors residing adjacent to dealerships than existing surface parking lots. Alternatively, it might be possible to locate new dealership parking structures toward the interior or commercial frontage of the site if the Zoning Code permitted new or expanded, fully enclosed, dealership buildings to be located on portions of the non-commercial lots. In sum, the existing on-street parking problem resulting from auto deatership operations could be alleviated, perhaps substantially, if the City's development regulations were modified to permit dealerships the ability to construct on-site parking structures of three or four levels above grade, and provide incentives to put at least one level below grade. 3. Recommendations to Provide Required Parking Supply Based on the foregoing analysis, it is recommended that the City's zoning regulations be modified as follows to enable dealerships to develop sufficient on-site parking capacity: ^ Modify the building height standard to 46 feet for enclosed or semi-enclosed parking structures on dealership sites, with no limit on the number of floors. ^ Increase the maximum FAR for auto dealership sites along Santa Monica and Wilshire Boulevards to 1.75 when they include parking structvres. This would provide a measure of flexibility for dealerships that choose to add parking structures without compietely changing existing building configurations. ^ Modify the definition of "floor area" to exempt all below grade dealership uses of any icind and make the 50 percent discount for roof-top paricing applica~le to all types of parking. ^ Permit be~ow grade parking, above grade enclosed and semi-enclosed parking structures and enclosed dealership buildings on non-commercial dealership lots to within 20 feet of an abutting residential parcel at the rear yard, and to within l0 feet of an abutting residential parcel along a side yard.. HAMILTON, RABINOVITZ & ALSCHLTI,ER, Itvc. Page 49 Proposed Modi~ications B. AUTO DEALERSHIP OVERLAY DISTRICT Inasmuch as the recommendations discussed above relate to full-service franchise new vehicle dealerships, and not to any other land use, it is further recommended that the foregoing changes be embodied in a new Auto Deaiership (AD) Overlay District. This would provide an opportunity to also resolve a number of other Zoning Code difficulties, and consolidate all of the auto deaiership requirements in one section of the Code. 1. Purpose of the AD Overlay District An "overlay" zone means, quite literally, overlaying, or superimposing, additional regulations for an area on top of the underlying zoning re,gulations for the area. The City already employs this zoning technique for the "A" lots, and a number of other areas with special circumstances.6 It would make a speciat set of zoning changes, like those described above for dealership parking structures, applicable only to sites shown on the City's official Districting Map as having the AD overlay designation. The AD Overlay District could be applied to portions of Santa Monica Boulevard between Lincoln and the east City limits, on Wilshire Boulevard between 16~' and 18~' Streets, and other appropriate sites (e.g., the satellite Hornburg Jaguar site on Olympic Boulevard near Centinela). Properties within the AD Overlay District could include the existing commercially zoned parcels, and for existing deaiership sites, the non-commercial lots that are part of the dealership site at the time the AD District is created. Other related sites used for vehicle storage could also be included in the AD District. 2. Possible Scope of the AD Overtay District Regulations In addition to the parking structure regulations discussed above, the AD Overlay District regulations would also provide the opportunity to address several other difficulties auto dealerships encounter with the current zoning regulations, as discussed in previous Chapters. Accordingly, the regulations for the AD Overlay District could address the following: ^ Include all of the parking structure-related changes described above. ^ Clarify the procedures that apply to minor remodels versus new or substantial remodels, set the scale thresholds so they correspond to the existing dealership facilities and sites, and require more costly improvements only in conjunction with new or substantial expansions. ^ Clarify those requirements that must be complied with by all dealerships immediately (e.g., on-site lighting, noise prevention, test driving routes, loading and unloading requirements). ° For example, the N Neighborhood Overlay District, the Beach Overlay District, the NW North of Wilshire Overlay District and the BR Boulevard Residential Overlay District. HAMILTON, RABMOVITZ & ALSCHiJLER, INC. Page SO Proposed Modi~ications ^ Eliminate the duplicative Performance Standard Permit and Conditional Use Permit requirements and make most such projects subject to Development Review. ^ Conform the provisions of the non-conforming use sections of the Zoning Code to permit minor and substantial expansions on dealership sites in the AD District, regardless of the underlying parcel zoning. If this concept is accepted by the City, it should be subjected to a programmatic level of environmental analysis (e.g_, Program Environmental Impact Report (EIR) or Master EIR) that is sufficiently complete and comprehensive to serve as the core environmental documentation for any future pro}ect whose impacts fall within the range of alternatives analyzed in the environmental document. This approach would help determine whether any additional standard mitigation measures are needed for auto dealership development pernutted under the AD Overlay District Guidelines. It would also serve to focus any subsequent environmental review on site- specific issues. 3. Recommendations to Amend the Zoning Code It is recommended, therefore that the City consider preparing: A te~ct amendment to the Zoning Code establishing a new Auto Dealership Overlay District, and amend the Districting Map to apply the AD District to sections of Santa Monica Boulevard between Lincoln Boulevard and the east City limits, Wilshire Boulevard between 16~' ad l8`~ streets, and other appropriate sites The draft text amendment included as Appendix C to this Report presents the changes that would be needed to resolve the issues described above, including changes in the development envelope regulations needed to accommodate the dealerships' needs for on-site parking. ^ Prepare a Program or Master EIR for the proposed AD Overlay District and adjust the property development and other standards in the draft text amendment to include any applicable mitigation measures that may be needed to alleviate potential significant adverse impacts caused by parking structures or other aspects of the proposed AD District amendments. If the foregoing recommendations are adopted, supplemented and amended as needed thraugh open public discussion, auto dealerships will have the flexibility to adapt their facilities to changing market circumstances and remain a vital part of the City's economy. These changes will also go a long way toward resolving the parking supply problem that has deeply troubled residents in the vicinity of the dealerships. HAMILTON, RABINOVITZ & ALSCH[3LER, INC. Page 51 APPENDIX A Summary Characteristics of the Case Study Santa Monica Auto Dealerships HA~fILTO\_ RaBINO~'ITZ & ALSCHLTLER. INC. CLAUDE SHORT DODGE Hours of Operation Mon-Fri Sales 9:00 am - 8:00 pm Parts 7:30 am - 6:00 pm Service 7:00 am - 6:00 pm Site Specific Issues/Notes Saturday 9:OOam-6:OOpm ciosed closed • They couid use more space for parts storage. • They would like neon lighting for signage. • Building and lot illumination is insufficient. • The ability to build on related A-lots is constrained. ~ Some complaints from residential neighbors. • New car storage space is needed. • Customer parking area is needed. • Not allowing outside. service areas hurts independent dealers. Existinq Zoninq -~ ~~.._:.~~_i_~ __. ~ . :~~~~~. ~ 1 __1._ ~ ~ ~ -~ -: l } '~ ; ~ ~ ._ ~.~~~~1 ~ ~ ;~ i, .:`~ ~~ T ~_ ~ ~ ~_ n r- ~f1~1-~~ ~ ~ ~ , ~~ ; r" 1 ~ ss I ~ ~ l' ; ~ .1 _ 4 1 _ , ~ ~ i "T' : {-T-? ~ ~ .. y. ~i~~~~ l_ a t ~~_; _~ _ ~~-_~- 1 ~.-•-- •.... --- ~ ,_ . ~_; ' i . -- ; _ ; -__ i ;_ -- . C~- - >; ;- ~ ~~ -- ~ _ -I _ -' i. ;s?S - -- Sunday 10:OOam-S:OOpm closed ciosed --'--r- ~-t t ~. ~ j~ ~ f ~ Hornburg Jaguar, Inc. 1601 Wilshire Boulevard Repair Operation Service Bays (Enclosed Lifts 24 (24) > Pits 0 (0) Other 0 (0) Total 24 (24) On-Site Parkina Spaces Sales/Customer 4 Service/Repair 0 Employee 2 Total 6 Emalovee Commute Mode Drive to Work 100% Car Pool 0% Bus 0% Bicycle 0% Walk 0% Emplovee Parkina Demand Drive to Work 74 Park on site 43% Park on other site 49% Park in Street 8% Loadinq/Deliveries (Averaae Per Week) Vehicles 0 Parts 12 Tow Trucks 40 r,a ~ Parking ar~ea Off-site service area Off-site service area HORNBURG JAGUAR Hours of Operation Mon-Fri Sales 9:00 am - 7:00 pm Parts 8:00 am - 5:30 pm Service 7:30 am - 6:00 pm Saturday 9:00 am - 6:00 pm closed closed Sunday 11:00 am - 5:00 pm closed closed Site Specific Issues/Notes • No customer parking is available. • Service and inventory are off-site. • Dealership leases employee parking spaces from the City at an off-site location. • Dealership was required to remove outdoor public address system. Existinq Zoninq , I i • ;~ ; ;, ~ ~ f ._.~---1L'- " -' - - - i ~ ~ ~ ; j i r r 1 ~ : I ~ ~ , 1 I ~ ' 1 i ~~ i.~1 i~ i 1 ~~~ - i - ' r 1 . ~ ~ ..1 _~ . • 1 1. 2 ' ' • ~ ' • ~ ~,~,. -< , ~ < s _~„_ ~ }; ~I-- T i ; ~ -; , ~ ~ f: ~~ l_: , ~ _ - i i _ , _ r_ s; :.; r • _ _ J= ; : ~T ~i7 , In~niti of Santa Monica 900 Santa Monica Boulevard Repair Operation Service Bavs (Enclosed Lifts 12 (4) o- Pits 0 (0) Other 2 (10) Total 14 (14) On-Site Parkina Spaces Sales/Customer 10 Service/Repair 10 Employee 9 Total 29 Emplovee Commute Mode Drive to Work 90% Car Pool 5% Bus 0% Bicycle 0% Walk 5% Emplovee Parkina Demand Drive to Work 64 Park on site 6% Park on other site 34% Park in Street 59% Loadinq/Deliveries (Averaqe Per Week) Vehicles 0 Parts 5 Tow Trucks 6 .._~.. ,r, .c• ' ti _'~s~ , . . .~ s. - ~~''t ~a , •. ~ ~~ ~--~ . ~ ~~ f e9 3~~ s` ~``' £ ~ ~ ~~ _ ~ ~~;~._=~- Infitniti Dealership In~niti showroom Service area Parking area INFINITI OF SAIYTA MONICA Hours of Operation Mon-Fri Sales 8:30 am - 9:00 pm Parts 7:00 am - 7:00 pm Service 7:00 am - 7:00 pm Saturday 8:30am-7:00pm 8:OOam-S:OOpm 8:OOam-S:OOpm Sunday 10:00 am - 6:00 pm closed closed Site Specific Issues/Notes • Limited service hours are an issue. • The inability to stack loaner cars takes up vehicle parking area. • Roof parking would resolve some of the parking problem. • Constraints on hours of operation is costing the dealership sales revenue. • Parking of inventory at airport is not ideal-the drive time between showroom and airport is long. Airport site does not have lighting. • City raised the airport parking/storage fees. Existing Zonina ~ .; r_T i-; ~-;~- j , ~ ,--1_: I_~ l.~ ~ .. I~ ~ ~ ~ ,; ~ . -~ i ; ~ , .~ _i._ ~ ~ 1 L ; - -T'_ .__ ~ ~__t_ ~ - } !.~ ~.f ~~' ,: s ..• ~ <i, . ~ ~'._~._ ~, tf~. _ i: ~; ~, .,~t.~_ ~' 1 ~ ~~ .. .; : _I h 1_ ~ ~ f-, ; -~ 'l.~-, ~~-il( Lynch Motors (Mercury, Lincoln, Subaru) 1229 Santa Monica Boulevard Repair Operation Service Bavs (Enclosed Lifts 26 (30) Pits 0 (0) Other 4 (0) Total 30 {30) On-Site Parkin4 Spaces Sales/Customer 3 Service/Repair 0 Employee 0 Total 3 Emalovee Commute Mode Drive to Work 97% Car Pool 2% Bus 1 % Bicycle 0% Walk 0% Emqlovee Parkina Demand Drive to Work 65 Park on site 0% Park on other site 0% Park in Street 100% a.;=.: . ~ ~ __.__ . --,..;. _ -:--a.~_ - ~ _ _ ~. Lynch Motors Dealership Loadinq/Deliveries (Averaqe Per Week) Vehicles 25 Parts 5 Tow Trucks 10 ,. .~-- _. _ ~;.~.-- .. ~ .... . Service area - exterior LYNCH MOTORS Hours of Operation a Mon-Fri Sales 9:00 am - 8:00 pm Parts 8:00 am - 6:00 pm Service 7:00 am - 6:00 pm Site Specific Issues/Notes • All employee parking is on-street. Saturday 9:00 am - 6:00 pm 8:00 am - 5:00 pm 8:00 am - 5:00 pm Existina Zoninq Sunday 10:00 am - 5:00 pm ciosed closed , -; ~ i i ~ i ~ ~ i 3 I f Y ~ I~ __ i _ ~ I =-~ ~ _ ~ ' ~ ~ -1 T '~ ~ - ~ ~~-~ , ~ I,, ; i _~ 1 ! .. J i ~ ~ I I I l__ : ~ ( `; ~ ~ _~ i - -~ --~ 1 ~T T-~ ~-~ . 1 ( ,. i , l-~ ~-~-!-- ~ ~~ _ , L _ ~ ` ~ _ ; -i _ ~~ ~ ~ Lr_ ~_ c _. - - . ,., i ~ ~ `'r- ~ ~. __. .~ ~:: :_ ra ~ ~ ~ . i --- ! ~~ ..... ~ - ~ ,-~..i -- i -~ ~ -;- -i ii~ ~~ i , : , ! r ~ ~ -~ i Mercedes-Benz W.1. Simonson, Inc. 1626 Wilshire Boulevard Reaair Operation Service Bavs (Enclosed Lifts 38 (46) " Pits 0 {) Other 8 (0) Total 46 (46) ~ ~~ On-Site Parkina Sqaces Sales/Customer 0 Service/Repair 0 Employee 20 Total 20 Emplovee Commute Mode Drive to Work 83% Car Pool 12% Bus 3% Bicycle 2% Walk 0% Emplovee Parkinca Demand Drive to Work 133 Park on site 18% Park on other site 37% Park in Street 45% Loadinq/Deliveries (Averaqe Per Week) Vehicles 2 Parts 5 Tow Trucks 5 ~ Service area ' - ' { r r£ z~ '. d' ;~ .I'^.p~r`~ ~"` F ~ ^+[~.,': °2°"~' ~~=,,°,£.~`~ .';•.: ~_~ _'. - z.(3`~'3.'~ . • _' . r f ~°,~.~~~ + "'. , ..._,>. s Parking area adjacent to residenfial properly Off-site service area Future PDl Center site MERCEDES-BENZ W.l. SIMONSON Hours of Operation Mon-Fri ` Saturday Sunday Sales 9:00 am - 8:00 pm 9:00 am - 6:00 pm 10:00 am - 6:00 pm Parts 7:00 am - 6:00 pm closed closed Service 7:00 am - 6:00 pm closed closed Site Specific Issues/Notes • They v~ould like to be able to expand vertically. ~ They will need more service and sales area according to forecasts. e There is a disconnect between the company goals and what the City permits for hours of operation and service. They are not meeting their sales goals because the facility is inadequate. • There is limited employee and customer parking. • Requirement for undergound clarifier limits repair/upgrading of lot. • Queuing area is inadequate. • Employees pay for parking two blocks away. • New car wash will take out service bays. • Off-site dealer preparation center will be built at 20th and Olympic. Existinq Zoninq Site 1 ~ ~ Site 2 ~ i i 4 i I ~ ~ ; ~ f ~ ---, = ' ~ ~-< < . _ - - - ' ~ ~ r I I~1 ~ ` ! - ~ - ~ 1 i - - -E1(}NN'IF~E « ~ i I~I .~ I_ L. _.1 ~ - ~_ l1 ~ I 1!_ _ -'~~~-'j-r i~ ~ .l ~ 7`' ~~'~- ~ ~ ~II;~~,I;_!~~ 1 , ~ i 1~ ~,~~ .t~! ! T ;;; ` ~ : _-~ - ~ ~ st:~ ~ ~~~, ,- ~ ~ -< i ~ ~ i I z i T ; ~ ~ ~i ~- _ I I f --- ~ ~ ~~ ~ ( ' ; , cC I ~i 1 ~~ ~` ~ ! ~ , i ~ ~ _ _ ' .¢~ ~ 1 .. : - - -•- ~ . ... ~~ i • ~ -~ ~ ~ tiv~.~Ct -- -- - _ I.. '~ I : :i ~ ( 1 1 ~•f UI I_ ~ ~ ~ ~ ; - ;-T-~-~ rti~: ~ 'f r . • , •~'. ~1 1 A '._ „~~ 'ti~ ~ ~ ~ '-_ ~; i ~ ~ I : ~;~{; • • ~~L r . 1~ ~ ~ ~ I ~ ~ •. i; _ _ r:., ' ~_~_ ~--- - '.:'. ~ ~~: . ~...I i ~ i~ '` 1 '~'. \ \ :.•~.~ ~~~,ti " r~~l " I' I _ .') I 1 ~ ~ { Saab of Santa Monica 3020 Santa Monica Boulevard Repair Operation S_ervice Bavs (Enclosed Lifts 9 O p Pits 0 () Other 7 () Totai 16 () On-Site Parkina Sqaces Sales/Customer 3 Service/Repair 30 Employee 0 Total 33 _Emplovee Commute Mode Drive to Work 100% Car Pool 0% Bus 0% Bicycle 0% Walk 0% Emplovee Parkina Demand Drive to Work 22 Park on site 0% Park on other site 0% Park in Street 100°~ ~:;.a~ oF SANic;... .. _--__S`RV~C: : i:r,..' --°~ .• -r ,, `-... Service area - exterior Service Area - interior Saab Dealership Loadinq/Deliveries (Averaqe Per Week~ Vehicles 1 Parts 2 Tow Trucks 2 SAAB OF SANTA MONICA Hours of Oaeration check Mon-Fri Sales 9:00 am - 8:00 pm Parts 8:00 am - 6:00 pm Service 7:00 am - 6:00 pm Site Specific Issues/Notes • Most employee parking is on-street. • Would like to expand vertically. Saturday Sunday 9:00 am - 6:00 pm 10:00 am - 5:00 pm 8:00 am - 5:00 pm closed 8:00 am - 5:00 pm closed Existina Zonina - ~ - ---- -- _---- . r~~~:t~.,_, , r I I ~j;j _ ~ _ --~ -- . _ 1_t ~ --~ ~ ~ ;T ~ ~ i ' , ~ _ ~ i t i i ~ + ~ ~ ~ ~ i ~ , I ~ - -- ----_-'_ • i i ~._.. ~T. .._ ~ - I ~ . _ , _i _i l.. -1 ' _ ~ -;--i j---T. -~:'~ i . ~ - - ~ ~~~~,,; ~ ~ ; l .~ .. . ~ .. _._ i i_ _ _..' ;___ i _ _ a::, ~ E~,j~ , . ~ . . 1 ` i ~ ; i _~ _ ` I ~ I ^ ~ . ~ I ~ ! ~ ~ 1 f ._~ ~' ~, _ -, . ~ ?~ i ' ' i ~~ ~ T _i ~ ' , 1 - - `' , - j L ! , " - i =-~ ~ ~ ~ _ ; ' - -- ~~I- ' ? y , I r-T- ~ . ~ ~; I _ ' - ' G - . ~ • I ~! ~i ~ ~ ~ ~ .; . :_ . .._ _~ ~ _' _~ _ 1 : _ i m~_. _ . , 1 _ __ _-~_ .~ f .. .~~~~ {_ l. ( . i ~ - . ~~ j e • r t - i.. r - t }_. ~ ~ ~ ~ i ~ , ~ ~ ~__ 1 ~ - ~~ ' ~ t ; Q ~ - ' ( . ' I ' I t.. ~ -~ ~ ~ ~ ' ' ~ _ __ ! ~ .: ~ i ' { ~ . -~ i m; . _ _ _ ; i i ~ ~ f { ; ~ : ''~ +' ' : ~ _ ~.J; _~ _~ L . ~. . ~ 1 _~ ,_ ~ ; ~ . ~ ; ~ - ~ ~ ~~~~ ~ ~ . : ; ~ - ; Santa Monica Acura 1717 Santa Monica Boulevard Repair Oqeration Service Bavs (Enclosed Lifts 22 (4) ° Pits 26 (0) Other 2 (0) Total 50 (4) On-Site Parkina Spaces Sales/Customer 10 Service/Repair 80 Employee ~ 10 Total 100 Emalovee Commute Mode Drive to Work 87% Car Pool 13% Bus 0% Bicycle 0% Walk 0°10 Emplovee Parkina Demand Drive to Work Na Park on site 20% Park on other site 0% Park in Street 80% Loadinq/Deliveries (Averaqe Per Week) Vehicles 1 Parts 6 Tow Trucks 2 Acura Dealership Parking area Service area SANTA MON/CA ACURA Hours of Operation Mon-Fri Sales 9:00 am - 9:00 pm Parts 7:30 am - 6:30 pm Service 7:30 am - 6:30 pm Site Specific Issues/Notes Site 1 Saturday 9:00 am - 9:00 pm 8:00 am - 5:00 pm 8:00 am - 5:00 pm Existing Zoninq Sunday 10:00am-7:00pm closed closed Site 2 Santa Monica BMW 1820 Santa Monica Boulevard Repair Oqeration Service Bavs (Enclosed Lifts 22 (23) Pits 0 (0) ~ Other 1 (0) Total 23 (23} On-Site Parkina Spaces Sales/Customer 0 Service/Repair 0 Employee 0 Tota1 0 Emqlovee Commute Mode Drive to Work 88% Car Pool 10% Bus 1 % Bicycle 0% Walk 1 % Emqlovee Parkinp Demand Drive to Work 75 Park on site 0% Park on other site 30% Park in Street 70% Loadinq/Deliveries (Averaae Per Week~ Vehicles 0 Parts 40 Tow Trucks 10 Service area BMW Dealership Customer waiting area SANTA MON/CA BMW Hours of Oaeration Mon-Fri Sales 9:00 am - 8:00 pm Parts 7:00 am - 7:00 pm Service 7:00 am - 7:00 pm Site Specific Issues/Notes ° Saturday 10:00am-7:00pm closed closed Sunday 11:00 am - 6:00 pm closed closed • This dealership used to have a tent that they used to protect their customers from heat and rain. They were forced to remove the tent because it violated code. • Would like to expand vertically and/or repair lot, but would trigger too many compliance requirements for parking and landscaping, and an underground clarifier. • Need employee parking. • Has off-site vehicle storage facility. Existina Zoninq i : ;. _ .,.~ 1 ! ' _ _' , r_ '~ _ ~~~v~-.~-~z-~ . ' !f i ~ ~ . . ~ ~ ~ ~ _i __ ! .1 l_~ .f -- , - ' ~ a_1 , ' I j' ' . ' 1. 1 i i_.i_ ;_i Et'C$NTE~t17't I I ~~.. : ~ ._ ~ ~'i (T i , ,~ T~ ~ i ~ ~ _ '- ; ; j , ~ ~ i t; _ ~ _ - i ~ - _ ~ ~ ~ ~ .. _~ _ ~ ,1 t C Sf3Yf~M . - i _ , ~.. ~_ __ - , ~~ ~ ~ __ i j ~ !. Site 1 ___;~1; ~ 1 Cr, ~ _,_ _ i Site 2 Santa Monica Ford 1230 Santa Monica Boulevard Repair Ope~atior- Service Bavs (Enclosed Lifts 23 (15) Pits 1 (37) ' Other 28 (0) Total 52 (52) On-Site Parkina Saaces Sales/Customer 6 ServicelRepair 224 Employee 6 Total 236 Em~lovee Commute Mode Drive to Work 75% Car Pool 22% Bus 2% Bicycle 1 % Walk 0% Emqlovee Parkin4 Demand Drive to Work 74 Park on site 6% Park on other site 0% Park in Street 94% Loadinq/Deliveries (Averaqe Per Week) Vehicles 3 Parts 10 Tow Trucks 20 ~ ;~~ ,~-.~ TA.L~ 1 ~ ~r.'~, t..._.. ~~i ~ ~ - Forr.~ Dealership Service area Service area SANTA MONICA FORD Hours of Operation Mon-Fri Sales 8:00 am - 9:00 pm Parts 7:00 am - 5:30 pm Service 7:00 am - 5:30 pm Saturday 8:OOam-6:OOpm closed closed Sunday 10:00 am - 6:00 pm closed closed Site Specific IssueslNotes • Most employee parking is on the street. Existinq Zonina -, . ~, _.... _.~ _ E--~ ~ ~ i I ~ ; ~ i ' ~ ; _.~ i~ 1 - .:._~ ~ ~ ! Santa Monica Nissan 1599 Santa Monica Boulevard Repair Operation Service Bavs (Enclosed Lifts 18 (19) ~ Pits 0 (0) Other 1 (0) Total 19 (19) On-Site Parkinq Sqaces Sales/Customer 15 Service/Repair 75 Employee 15 Total 105 Employee Commute Mode Drive to Work 85% Car Pool 10% Bus 3% Bicycle 1 % Walk 1 % Emplovee Parkina Demand Drive to Work Park on site 20% Park on other site 10% Park in Street 70% Loadinq/Deliveries (Averaqe Per Week) Vehicles 2 Parts 25 Tow Trucks 5 Nissan Dealership Service area Parking area adjacent to undeveloped residential property Service vehicle parking area SANTA MONICA NISSAN Hours of Oqeration Mon-Fri Sales 9:00 am - 9:00 pm Parts 7:30 am - 6:30 pm Service 7:30 am - 6:30 pm Saturday 9:00 am - 9:00 pm 8:00 am - 5:00 pm 8:00 am - 5:00 pm Sunday 10:OQ am - 9:00 pm closed closed Site Specific Issues/Notes • Would like to set design standards for auto dealers to promote a consistent look. • Desires minor remodel but not with requirement to bring everything else up to code. • Would like traffic light installed at corner. Existinq Zonina Site 1 Santa Monica Volkswagen 2440 Santa Monica Boulevard Repair Operation Service Bavs (Enclosed) Lifts ° P its Other Total N/A (N/A) On-Site Parkin4 Spaces SaleslCustomer Service/Repair Employee Total N/A Emalovee Commute Mode Drive to Work N/A Car Pool N/A Bus N/A Bicycle N/A Walk N/A Emplovee Parkina Demand Drive to Work N/A Park on site N/A Park on other site N/A Park in Street N/A Loadina/Deliveries (Average Per Week) Vehicles N/A Parts N/A Tow Trucks N/A ~ Votkswagen Dealership Parking area Service area - interior SANTA MONICA VOLKSWAGEN Hours of Operation Mon-Fri Sales 9:00 am - 8:00 pm Parts 8:00 am - 6:00 pm Service 7:00 am - 6:00 pm Site Sqecific Issues/Notes Saturday 9:00 am - 6:00 pm 8:00 am - 5:00 pm 8:00 am - 5:00 pm Sunday 10:OOam-S:OOpm closed closed • Employee and customer parking is insufficient. • Vehicle storage areas are inadequate. • Leasing sites for vehicle storage does not help because sites cannot be developed with parking facilities due to inability/cost effectiveness of developing leased sites. • Limited service hours are a problem. • Some complaints of noise from the neighborhood. Existinq Zonina 'lr _ _ J _ .~I ~ • ~ • ~ I ~ ~a ~,i 'i.~ ~ ~ i~~ -r;-~ t ; '-,-~~- ~_ ~I ~ i+~ i ~ _I_ I ~ ~ ' , ~~ ~--~ ~ , , ~~ __ _. _ ~ _. . ~ .~# ~ _ t_ ' I • -- ~:~ ~ titLi- ~ ' ~ 'rti. :;:%,;. ~ : : ;~ i ..' : ii:..ti ; ~ , : -~::~~ ! ' _I :ti-:'} f;':!::• "' _1 ~ :~ ~v~: .:f ~ ',;:;;;::'}:;:~' ,-, . :; . ~ f:.:;.,~ :i::^> ....:•'r.•: 1_ ~ Lexus VVV Sheridan Toyota 801 Santa Monica Boulevard Repair Operation Service Bavs (Enclosed Lifts 22 (24) . Pits 0 (0) Other 2 (0) Total 24 (24) On-Site Parkinp Spaces Sales/Customer 44 Service/Repair 140 Employee 0 Total 184 Emplovee_Commute Mode Drive to Work 77% Car Pool 1 g% Bus 2% Bicycle 0% Walk 2% Emplovee Parkina Demand Drive to Work 100 Park on site 10% Park on other site 0% Park in Street 90% Loadinq/Deliveries (Averaae Per Week) Vehicles 5 Parts 15 Tow Trucks 12 Toyota Dealership Uehicle display ar~a On-sfreet vehicle un/oading SHERIDAN TOYOTA Hours of Operation ° Mon-Fri Sales 9:00 am - 9:00 pm Parts 8:00 am - 6:00 pm Service 7:00 am - 6:00 pm Site Specific Issues/Notes Saturday 9:OOam-9:OOpm 8:OOam-6:OOpm 8:00 am - 6:00 pm Sunday 10:OOam-9:OOpm closed closed • Need employee parking, some impact on neighborhood is occuring. ~ Cannot complete minor repairs/upgrades such as resurface lot because it triggers com- pliance with larger improvements such as lighting and landscaping requirements. • Required landscaping obscures vehicle display area. • Dealership would like to expand vertically. • Need vehicle storage area. • Finds landscaping, .setback and height restrictions limiting. Exisitnq Zoning Main Site ~~I ~ ~ ~_.~.~. ~-~.-'-~ , . r-.i _i _ ~~-;-~ ~ „ , 1.i !~ ~ r. ~ _~_ ; -,~ :. , ( .,,~ ~ ~ ~ , ,.. , _, _.i ~ •. _ .. . __ _ _. ~ !_ ~~~,L~ - -; ; ~~ i I ~ '~~~.;~~ ' ;`i'~'~' `:i`i , I ; i ~ ! ~~ ~- --1 ~ ! ~ ~ ~ I ~.r ~~._~. ~~~r~: .~<<: .-;~ti ± ~ ; Used Lot Claude Short Dodge 1127 Santa Monica Boulevard Repair Operatian Service Bavs (Enclosed Lifts 0 (24) ° Pits 4 (3) Other 5 (5) Total 9 (32) On-Site Parking Spaces Sales/Customer Service/Repair Employee Total N/A Emplovee Commute Mode Drive to Work N/A Car Pool N/A Bus N/A Bicycle N/A Walk N/A Emplovee Parkina Demand Drive to Work N/A Park on site N/A Park on other site N/A Park in Street N/A Loadinq/Deliveries (Averaqe Per Week) Vehicles Parts Tow Trucks 10 Service area , .,. _ , . _ . , . _.. _ w~ A Lot adajacent to residentia/ property APPENDIX B Santa Monica Land Use Element Policies Related to Auto Dealerships Santa Monica Zoning Code Ezcerpts Related to Auto Dealerships (not including tk~e City's Sign Code and Architectural Review Reyuirements) HAIIILTO\. RaBIt~O~'iTZ & ALSCHL7,ER, INC. • GITY C~F SANTA MONICA ZONING C~RDINANCE Including Chapters 9.04-9.52 With Amendmenfs to Currenr to May, 2000 (Through Orrlinance 1970CCSJ ~ ~ ~ ~ ~ REVISED: August 2000 9.04.08.12.080 Sauta Monica Muaicipal Code 9.04.0814.010 Parpose. The BtoadcPay Gomme~rial Distcict is mtracled to protnct and enhance neighborhood oommeroal areac 69 P~~~ the conxntration of businesses ihat provide convenienc;e goods and servias used frequent~S' bY local resideats Tbis Di.~ict prwides for a scale and cbaracter of development that is oonsistent aith pedestrian orientation and wbich unds to amract and promote a wallc ia dienule. Develop- ment within this Dictrict should' n,a,~;..,»~ hnman scale elemcnts wh7e providing a sensitive ~an.rition between these uses and neighboring residenoes, mctuding the esid p~vi.rion of adequatc and properly ated parlaug fac~ities. ~°-dditianai~', the Bnoa,d'~va5' C,o~~al I~Ct enoou~ages residential mACd use of commcrciaUy zoned parceLs to further enhanx the ~ansition between neighborhood commercaal and adjacent residential uses, consistent with the goaLs, objec~ves, and polides of the General Plan. (Prior code § 9016.1; amended by Orci. No. 1687CCS § 2 (part), adopted 6/J?J93) 9.04.08.1d.01,0 Permitted nses. The follawiag co~enicnx goods aad service type uses shall be peimitted in the Braadway Commer~ial District, if conducted within an ~nclosed building (e~oxpt wherc otherwise pctmittcd): (a) A-PPliance stores. (b) APPliance or electrvnic repair shops. (c) Art galleries. (d) Aroist studios. (e) Barber or beauty shops. (fl C~d daq care cxntets. (g) Caeaneis. (h) Cangregate housing. (i) Domestic violence shelters. G) ~~~. (k) Food stores. (I) General o~ces above thc first floor. (m) Hardware. stores. (n) Homeless shcltecs witL less than fifty-8ve beds. (o) Iaunac+amau. (P) iabraries. (v Medicai, dental, and optometrist offioes, provideri that the use does not cxeeed twenty-five peaxnt of tatal square footage of the bulding or three thousand square feet, whichever is less. (r) Multifam~7y dwelling uaits. (s) O~as and mr.~tiag rooms for chazitable, youth and welfane organizations. (t) Plaoes of worship. (u) Public parla and playp,~ouads. (v) Photooopy shops. (a') Plant masecies (Parnri~e~ aIl ~pplies, e~ePt P,l~ted stoc]c are kept entirely aithin an enclosed buildin8)- (x) Restauraats of fifty seats or less. ~ (y) Schools. (z) Senior group housing. (aa) Senior housiag. (bb) Single-fam~y dwelliag uniu. (oc) Sin~e-rnom ocxupancy housing. ~dd) SPeaaltY offioes. (ee) Ta~lors. (~ Transitional housing. (B8) ~rY us~ whicfi ace deteimmed by the zaamg Admmis~ator w be necessary and ciutomazily associated ~vith, and are appropriate, incidantal, and subordinate to, the priaapal permitted uses aad which are oonsistent with and no more diriia~biag or diauptive tban pcrmitted uses. (bh) Other uses de~etmmed by ~e Z~g Ac~is~ataa' to be s~ilar to thoso Iistui abovc which are consistent with and no more disturbing or discuptive iban permitted uses. (Prior oode § 90162; amended by Ord. No.1687CCS § 2 (part), adopted 6112193) 9.04.OS14A30 Uses sabject to performance standards permit The following uses may be permitted 'm the Broadway Commercial Disnact subject to approval of a Performance Standards Permir (a) Automobile sta~a~ge lrns assodaied with antomoble deale~hips sclling new vehicles on the effectivo dau of this Cbapter. F~istmg aummob~le storage lots shall oomply with Secoion 9.04.12100 within three y~ea~ from the effec- tive date of this Chapter. (b) LarBe fami7y day carc~ homes. (c) Sidewalk cafes. (Prior c~ § 90163; ameaded by Ord No. 1687CCS § 2(part), adopted 6!T?J93) 9.04.08.14.035 Uses sabject to a nse permit (a) Ouuioor new~tands. (Addal by Ckd. No.1690CCS § 2, adopud 7/13/93) 9.04.08.14.040 Conditionally permitted nses. The following uses may bo permitted in the Broadway Cammercial Dirnict snbject to the approval of a Condi- tional Use Permit: (a) Eapanson or inuns~cation of automob~le repair fac~7ities eatting az of Juiy 11, 1995. (s~w Mooi~ 3-99) 424-2 Santa Momica Ivt~micipal Code (b) Homeless shelters with fifty-five beds ar more. (c) Servix stations. (Prior oode § 9016.4; amended by Ord. No. 1687CCS § 2(part), adopted 6f12J93; Ord. No. 1809GYS ~ 1, adopted 725/95) 9.04.0814.Q50 ProW6ited nses. (a) CSmemas. (b) Fmearms clealeiships. (c) Rooftap patldag on paroels ditectty abutting, or sepaiated by an aUry irom, a revdential district (d) AaY us~ not speafic~iy authorizea. (P:ior code § 90165; amended by Onl. No. 1687CCS § 2(part), adopted 6/Z'1J93; Ord. No.1852IXS ~ 8, adopted 6/11./~6) 9.04 48.14.060 Propeety de~elopmmt standards All p~vper~ty in the Bmadaay Dist~ict abaIl be deveioped in acoordanx with the following staadards: (a) M~mum Bnilding Ha~gttti T~vo stories, aot to exceed thirty feet exoept that if fiftp pe~roent or morc of the bmld'mg is ~sdendal, tlme~ smriGS, not tn aaoetd forty- frve feet There shali b~ no limitation on the number of stories of a~ struchu~e containing at least one floor of rtsidential use, so long as ihe height does not e~oce~d the ma~dmum number of feet permitted 'm this Section. (b) Maamam F7oor Area Rstia The ma~dmttm floor area ratio shall be deuimi~ned as follows: FAR if at Lesst Thirty Percaat of Prajed is Residmtial, or if at Least Eighty Perceat Panxl of the Prvject is a Sqoare Footage FAR Groary Store 0 - 15,000 1.0 IS 15,001 - 22,500 0.90 13 22,501 and up 0.80 1.15 (c) Mi~nimum Lot Siu. Seven thousand five hundred square fee~ Each paroel shall havc minimum dimeasioas of fifty feet by one hundred fifty feet, eaapt that parcels c~risting on t6e effective date of this Cbapter shail not be subject to this requirement (d) ~+unt Yscd Setbsck. Iandscaping as required pursuant to thc provisioas of Part 9.04.10.04. (e) Rear Yard Setback. Nono, enxpt (1) Wher~e rear paroel lme abuts a riesideatiat district, a rear yard equal to: 5' + (stories x lot width~ 50' The required rear yard may be used for pazldag or loading to wiffiin five feet of the raar par~el liae provided the parldn.g or loadiag does not e~end above the fitst floor level aad pmvided that a wall not less than 5ve feet or more tban soc feet m height is eraxed and maiatamed along the rear commertial parcel line. Aaxss dtiveovays shall be permiued to perpendiczilaz}y e~oss the required rear yard provided the driveway daes not r.~ooed the miaimum 9.04.08.14.040 ~vidth pecm~d fa~ the parlciag atea. A requaed near yazd shall not be nsed for oommticaal purposes. (2) Tbat needed to sooommodate laadscapiag and scaceeniag for a rear yard buffer nquaed pnrsvaar to thc pravisions of Part 9.04.10.04. ( fl Side Yard Setbaclc. None, mxp~ (1) Where the iatenior side paroel 1'nne abuts a residen- tial district, aa intaaor sicie yard equat to: 5' + (stories z lot width) SO' The ~ side qaad may be u~cd for pa~rmag or ~g . w withia five fxt of the i~eri~o~ sde pzopesty ~e pio~vided the parlang or loading does not a~tead abo~ve the fust floor level and pmvided a wall not less tban five feet or mare than sx feet in height is erecxed and maiatained along the side commercial parxl Iiae. A required iaterior siae yard sttaII not be used for aoo~s or for oommerdal ptupos- es. (2) T]~si nealed tio aooo~ciate l~pim8 roquued for a sTreet side yatd, landscape buffcr and screaniag piusuaat to the pravisions of Part 9.04.10.04. (3) A tea-foot setback fram aa interior property Ime shall be ~quired for portions of but~c~ings tbat eoatam windaws, doors, or oth~r openings into the interior of the bu~ding An inurior side yazd less t6an un feet sba![ be permitted if pravisions of the Uniform Bulding Code nlated to fire-raud openmgs in side yards are satisfied. (g) D~evelop~t Revie~r. A dtvdop~mt review Pesmlt is required for aay dcvelopmeat of more than tw~aty-tao ihousaad five huadc~ed squar~e feet of floor ar~ea and for aay deve~opa-ent with rooftop parldng. Squate footage devoud to residential use shaII be redactd by fifty Paraat when calculatiag whether a development rcview permit is rcquired. (h) Pedestri:a Orie,ntetion. Gmaad floor stteet $vat- age of each structuro shall be datigaed Rrith pedesuian orieatation ia acaordaax with Searon 9.04.10.0244Q of this C~aaptcr. (Prior code § 9016.6; amended by Ord No. 1687CCS § 2(part), adopted 6R2J93; Ord. No.1774C`•S § 1, adopted 11/15/'94; Ord No. 1893oCS § 4, adopted 1/13/98; Ord. No. 1927CCS § 3, adopud 11/101~8) 9.04.08.14.065 Deed restrictions. Prior to ssuanoe of a buldmg pecmit for a projax which, pn.c,.ani to thLS Pazt, I~aS lCCCiVGd S dC~Siiy Oi height bonus, or was not subjact w a development review permit because the calc~ilarion of the residential square footage of the project aas reduced b'Y ~Y P~~~ the applicaat shal! submit for C~ty review and apprwal, dud rest~icaons or other legal insuumenu setting forth the obligation of the applicant to maintain ttce resideatial use of the projeU for the life of the projut. (Added by Ord. No.18280C'S § 1, adopted 11r1195; amended by Ord. No. 1927CCS § 4, adoptcd 11/10/98) 9.04.0~14.070 Arrhitettans! i+eview. All new ~ucaon, n~w additions w atistm8 bu~d~s, and aay other exterior impravements that require issvanoe 4?11-3 (sama Maoi~a 3A~ 9.04.08.14.070 Santa Moaica MaaidpaI Code ~ a bu~7ding pe~mit sbaIl be subjoct to ambit~l rwiaw pucsnaat W tbe pzwisions o~ Chapter 932 c~ this.Artidc. (Prior oode $ 9016.7; amended by Ord No. 1687CCS ~ 2 (part), adopted GR.2J93) (sano Momv 3-9s) 424-4 ~' ~I~~ ~ ~ ~ ~ , , ~ ~ , Santa Mamica Mimi~dpal Cocte 9.04.082Z.010 Parpose. The G4 Di.ttricx is iatended to provide for the fut~u+e orderly development of the majar highaay oommercial oorridors ia Lhe Cliiry. The CA Distirict is iateaded w enoourage servicx oommerGial busiaesses, auto sales and sorvice dealersbips, and other similar uses tbat setve reg~onal, oommtmity, and local needs, wh7e respe~ting adjaccnt residential neighborhoods aad escablished neig~- borhood oommerda! areas, oonsistent with t6e goals, objectives, and policies af the Geaeral Plaa (Prior oodc § 9020.1; am~nded by Ord. Na 1687CCS § 6(part), adopted 6R2/93) 9.04.08.2Z.020 Permitted nses. The followiag uses shatl be permitted ia the C4 Uis- sict, if ooaducted withiu aa eaclos~d bu~d'm~ emxpt whcrc othcrwise penmitted: (a) Ambulanx servicx. (b) ApPliancc repair shops. (c) A=tist studios above the first floor. (d) Auoomatic ice dispensmg machme whicb need not be in aa enclosed bue~aiag. . (e) Bakeries. (~ Banls and savings and loan institutions. (g) Harber or beauty.shops. ~) ~~S ~~- . (i) Busiaess colleges. (j) C~u7d day care ccnters. (k) C7eaners. (1) Congregate houvng. (m) Danx studios. (n) Domestic vioIence shelurs. (v) Eiectrical shops. (P) Electric dis~butioa substations. (cil Fuaeral pazloss or mortuaries. (r) General o~xs. (s) General reta~l aad spccialiud retail us~s. (t} Homeless shelteis with less than fifty-five beds. (u) I.aundromau. y.~.u~.w.~ iu (v) Medical, dental aad opiometrist cliaics and labo- ratories. (w) Medical eq~ipment rentals. (z) Multifa~n~Y dae11~8 uaits- (Y) Public parla and playgrounds. (z) Par~' equipmeat r~entais. (aa) PhonocApq shops. (bb) Plaoes of ~wotship. (ac) Plant r~ta~1 stores. (dd) Real estate offuxs. (ee) Restaurants of fifcy seats or Iess. ~~ Senior gmnP housing. (gg) Senior housiag. ~) S~ P~~S ~~ (ii) 3iagle-fami~Y dwel~a8 units. (jj) Siaglaroom oaupaney housiag. (ldc) Slmtia8 rialcs. (It) Tailots. (mm) Trade schools. (nn) Tra~itional ho" ~. (oo) Variety scores. ~PP) ~~' uses arhich are dcLermin~d by the Za~- ing Adminisaator t~ be nex~azy and cuswmac~lq assoti- ated with, aad appropriate, mcidental, and s~~bocdiaate to, the principal pctmitted uses aad which are oonsisteni and are no more disuptive or disturbmg than permitted uses. (4c~ Other uses determined by the Zoning Adminis- ticator to be similar to those Iistred abwe aad which are c~oasistent aad no more diauptive or disieabaig iban permitted usos. (Prior cad~ § 90202; am~nded by Ord. No. 1687CCS § 6(pazt), adopted 6R?J93) 9.04.08.Z2.Q30 Uses sobjed to paformanoe stsndards permit The follawing uses may bc pcrmit#ed in the C4 Lis- trict subject to the approwal of a Perfoimancx Staadazds Petmi~ (a) Auwmob~7e Rantal Agencies. (b) E~paasion of e~dstiag automob~e dealerships of up to ten perxnt, but not ez~oeediag aa additional fiv~e thousaad squarc feet (c) Scrvice stations. (d) Sidewalk cafes. (Prior code § 90?A3; amended bq Ord No.1687CCS § 6(pazt), adopted 6/1?J93: Oid. No. 1732CCS § 1, adopted 3B194) 9.04.08.22.035 Uses subject to s nse permit (a) Outdoor naasstands. (Added by Ord. No. 1690CCS § 6, adopud 7R3/93) 9.04.08.22.040 Coaditionslly permitted nsa. The fotlo~wing ~ses maybe permitted in tht G4 Dis~ict subject to the approval of a Conditional Use Permir (a) Audiwrium, (b) Automob~e dcalcrships, or expaasioa of exisdmg automobile dealerships iadoor or outdoor area try more than ten percent, or more thaa five thousaad square feet, whichever is less. (c) Automoble parlaing lots and s~uciures. 435 (s~sn ~tamr~ s+9~ 9.Q4.08.22.040 Sa~a Mon~a Mimiaipal Cade (d) Automob~lc npair fa~lides. (a) - Antomoble washiag facaities. (~ B~1liard Parlors. (8) Qubs and lodges. (h) Drivain, drivathrough, take-out and fast•faod ~. (~ F~r~ezttise faclities. G) Homeless shelte~ with fifty-five beds or more. (k) Hotels and motels. ' (1) L9nor stores- (m) Nighulubs. (n) Open air farm«s markets. (o) R~uants aver fdty seats. (p) Self seivia storage warehouses. (Prior oode § 9020.4; amended by Ord. No.16870CS ~ 6(part), adopt- ed 6R2/93; Ord. No.17320CS § 2, adopud 3B/94; Ord. No. 1803CCS § 1, adopted 5l~i/95; Ord. No. 1895 § 4, adopted 1R7/98) 9.04 08?Z.050 Prohibited nses. (a) C~ncmas. (b) Fneazms dealeiships. (~) R~~P P~~B ~ P~ ~9 abutting, oz sepatated by an alley fi~+um, a residential disteid (d) Any use not spec~cally authoriud (Prior oode § 90205; ameaded by Ord No. 1687CCS § 6(part), adopted 6RZA3; Ord. No. 1852C'CS § 13, adopted 6n~ 9.04.08.YL.060 Property devdopmeat standards. There shall be no I~itation on the number of stories of any hotel, d~tached pazlong strucd~, or structiu+e contaming at least one floor of :esidential use, so lang as the beight does not e~oxed the ma~am~ number of feet permitted "m ttis Secaon. All property in the C4 Disorict shall be develop~d in aooordanx with the follvw- ing standards (a) Maam~ Height and Floor Area Ratio. (1) For pazxls in the C4 Disorict finnting on Iincoln Bonlevard south of the Santa Monica Freewary, Pico Boulevard between Oceaa Avenue and 4th Court, aad Pico Boulevard between 7th Sueet and llth Street, ma~um height shall be two stories, not to e~ocecd thirry feet, and the floor area ratio sball be determined as follo~vs: ~ FAR if at I.nst Thirtj Peieent of Projeet is Residmtial, or if si I.ease EiSht~ Priseat oi Par+cel the Project is a Sqaars Foots~e FAR Giocrr~ Store 0 - 7,500 i.o 1.0 7~01 - 15,000 0.70 1.0 15,001 - 22,500 0.60 0.8.5 ?2,501 and up OSO 0.95 (2) For pamels in the C4 District fronting on Broad- waq, Santa Monica Boulevard, and 14th Street betsveen Pico Bonlevand and the Saata Maaica Freeway, the ma:im~ height sball be taro stories, not to raaoeed tiiirty feet, aad t~e floor azr,~ ratio sbaU be det~rm~ed as follo~ws: FAR d at Isast lbirty Pa~mt of Pi+uject is R~sidmtial or Auto~obite DdeesLip with C[JP, or if Rrod at Isast E~ht~ Parmt of Sqoare Foots~e FAR the Pr~ect is a G:oca9 Stnee 0 - 7,500 1S iS 7,501 - 15,000 1.0 1S 15,001 - 22,500 0.90 I3 22,501 aad np 0.80 1.15 (3) For parcels ia the G4 Dis~ict fronting on Lincoln Houlevard north of the Saata Monica Fr~ewaq, the maxi- mum h~ight sluall be t~ree stories, not to e~oeed forty- five feet, and thc floor arta ratio shall be determiaed as follow~ FAR it at Least TLitty Perceat of Proja# is Raidmtiai, or ii at Isast ~t~ Parmt Ysroel of tLe Project is a Sqoue Foota~e FAR Grnc~er~ Store . 0 - 7~00 1S 1S 7~01 - 15,000 1.0 iS 15,OD1 - 22,500 0.90 ~ 13 22,501 and up 0.80 1.15 (4) For pazctls in the C4 Disuict frnntiag on Pioo Boulevard between 21st Street and 31st Sue~t, subject to Sectioa 9.04.08.22060(a)(S~, the ma~rimnm height shall be two stories, not to ee~ooeed thirty feet, and the floor area ratio shaU be determiaed as folla~vs: FAR if at Le~st 17~iit~ Pa+cmt of Projeet is Raidmtial or i~' at Leaat Frght7 Pareel Pe:+ceat of the sqoaee Peojat is a FaotaSe FAR Grooee7 Stoie FAR with CUP Pmtoaat to Sectian 9A4.o~ .22:060(a)(~ 0- 7,500 15 1S 20 7,501- 15,000 1.0 iS 20 15,001- Z2,500 0.90 13 20 22,501 and np 0.80 1.15 20 (~ Subject w the appmval of a Conditional Use Per- mit, a project on a City~vned panxl in the C4 District frontin8 on Pioo Boulevard between 21st Street aad 31st Street shall be permitted a FAR bonus and a height of ihrr.e stories, forty five feet, if the project coataias a full service grooery store haviag ai least five thousand square feet of grnss floor area. ~ ' ~ (s.m~ M~ ~ 436 ~ Saata Ma~ica M~m~ipal Code (b) 1VI'm~~ Lot Sixe. Sevan thousaad fiae hnndred square feet Fach paroel shall ooatam a miaimum depih of one h~dred 5fty feet and a mmimum ovidtt~ of fdty feet aaoept tbat pazcels e~ostiag on the offective dato of ihis Qtapter shall not be snbject to these requirements. (c) ~+unt Ysrd Setback. landscapiag as nquaed pnrs ~~t to the provisions of Part 9.04.iQ.04. (d) Bear Yard Setback. None, amept „ (1) Whece rear pazcel linc abuts a~esidential disCrict, a rear yard equal to: 5' +(stories x lot width) SO' Tl~e required rear yard may be used for parking or load'mg to withia five feet of the rear paroel line prrn+ided the parldag or loadiag does not extead above the fi~t floor levol and provided ffiat a~vaIl not less thaa five foct or more thaa sb~ feet ia height is eraxed aad maiatamed along the near oommercial paroel line. Aecess c~iveavays shall be permiued to perpeudiciilarlq cross the nquired rear yard pmvided the drivewaq does not a~oeed the minimum width permitted for the pazlvag siea. A ra quaed rear yard sball not be used for oammei+cial pur- P~~- (2) That needed to acoommodate landscapiag aad screening for a reaz yard buffer required pn~uaat to the gravi.aons of Part 9.04.10.04. (e) Side Yard Setback. None, aroept (1) Where the mterior side pazcel liae abuts a zesi- dential districi, an iaterior side yar~d equal to: 5' +(stories x lot width) 50' The inurior side yazd may b~ used for patldng or loading to within five feet to the iaterior side prnperty line pravided the pazldng or loadiag does not eatend above the first floor level and provided a~vaII not less than five feet or more than so~ feet in height is erected s' aad maintained along the side oommenial par~el liae. A rcquffed murior side yard sball not be used for socess or for cammercial purposes. (2) That needed to acaommodat~ landscapmg re- quired for a street side yard, landscape buffer and scrceaing pursuant w the provisions of Part 9.04.10.04. (3) A un-foot setback from aa mterior side psoperty line shall be requircd for pottions of btuldings that oon- tain windaws, doors, or other openings iato the interior of the building. An inurior side ya~rd less than un feet shall be permitted if provi.vons of the Uniform Building Code relaud to 5rarated op~nings m side yards are satisfied. (fl De~elopmmt Review. A Developmeat Review Permit is reqused far any development of more tban twenty-5ve thousand square feet of floor area and foz any development with rooftop parlvag eacept that for applications involvmg the dcmolition aad zeplaoement of an e~ostin8 ~8~~ P~'P~~ 8rooer~'store on a parcel w$ich is not adjacent to a rrsidential}y zoned district, with a 9.04.08.22.060 store ~vhich bas a mmimum of twenty five thousaad square feet of floor acea, oniq a net new floor area addi- tion of more than t~v~enty-5ve thousand square feet shall be subject to Development Reviea-. Sqnar~ footage devoted to r~ideadal nse shall be nduced bg' fift9 P~- oeat when cal~g whether a developmeat nview permit is requ~ed. (Prior oode 9020.6; amtaded by Ord No. 1687CCS § 6(part~ adopted 6J2?J93; Ord. No. 1T/4OCS § 3, adopted ill15/94; Ord. No.1927IX:S § 13, adopud 11/i0/98) 9.04.O~.Z'L.065 Deed restrictions. Prior to ~~+,9}+~ of a buildiag permit for a projeet which, piusuaat to this Part, has nxived a density or heig,.ht boaus, or was not subject to a developmeat review permit because the calailation of ~he residential square footage of the projr~.ct aas reduoed b9 ~Y P~~. ~ applicant shall stibmit, for CYtyreview aad apg:oval, deed ranrictions or other legal iastrnment~ settiag forth the obligation of the applicant to maiataia the residential nse of the project for the Idc of the pmjecx. (Added by Ord. No.1828CCS § 5, adopud 11l7/95; amended by Ord No. 1927CCS § 14, adopted 11/10/98) 9.04.08.2Z.070 An~titectnral nevi~+v. Atl new construction, new additions to eadsting bu~1d- ings, aad aay other e~erior impravements that require issuanx of a building permit shall be snbjeu to arahiteo- tural review puisvaat Lo the pravisions of Chapter 932 of this Article. (Prior oode § 9020.7; amended by Ord. No. 1687CC5 § 6(part), adopted 62?J93) 9.04.08.ZZ.080 Spccial projed d~ snd devebpment standsrds. Projects nn the C4 Dimia shall comply with the fol- lowin8 spedal Prolect desiwgn and development staadard.s: Ground floor street frontage of eac•h structure shall be desigaed with pedestrian orientation in acoordaaoe with s~aon 9.oa.io.o2.a4o of r~ c~ca. ~.~aa~a by ora. No. 1893CC5 § 9, adopted 1l13/98) Part 9.04.OS.Z4 CS Special O~ce Commetrial Dis~ict 9.04.08.Z4A10 Parposc. The CS District is mtended w provide for the dcvel- opment of offix and advanoed technology uses, scieaffic reseaz+ch, and admmis~ation, aad for limited manufactia ing of related products which require large eapaases of floor area on large paroeLS. Development intcnsity is intendcd to racotuage the cans~nction of offix uses aad other uses within a campus-l~e envaoament tl~at w~l be compatible with abutting residential aeighborl-oods, especialiy in terms of scale and bu7ding mass. Within the CS District it is thc goat of the G~ty to preserve and pro- tect e~ustmg rightc-of--~v~vay for future tran.dt opporttmities. (Prior code § 9021.1; amended by Ord No. 16870CS $ 7 (part), adoptcd 6/22/93) 437 (s~on blmiw 3-99) ~..,...,~.~.....~., ~ia mw~a maau-+~u wuc 9:04 08.24:020 Permitted ases. The follo~wing uses shall be pcrmitted in the CS Dis- trict, ~ oonducted within an taclosed bwlding, e~oxPt ~vhere othtnvise parmitted: (a) Artist studios. (b) C~d day caze oente~. (~) ~~8ate bo"~. (d) Domestic violenoe shelters. (e) General off oes. (fj Homeless shelters with less ffiaa fifty five beds. (8) Laboratories and fac~7ities for scientific reseazch development and testing. (h) ~t ~- (~ Mediral, dental ~d optomettist clinics and labo- =atories. G) Nonacute, iapatient bealth care fac~ities. (k) Plaoes of worshig. (1) Production of experimental products, and the maaufact~ing of snch products as may be neoessary to ihe develop~ent of production or operating systems where snch systems are to be mstalled aad operated at another location. (m) Public or private schools e~osting prior to adop- don of this C~apter. (n) Public ut7iry service centers aad service yards. (o) Smgle-room occupanry ho"~. (p) Tralar courts or mob~lehome parlcs e~dsting prior to adoption of this C6apter. (c~ Transitional housing. (r) A~sorY uses which are determiaed tsy the 7oa- ing ,Administrator w be neoessaTy and costomanly associ- ated wrth, and are appropriate, incidental, and subordi- nau to the PrinaPal Permitted uses and which are eon- as~tent and no more disruptive or distiubing than petmit- ted nses. (s) Other uses determined by the Zoning Admia- istrator to be simi7ar to those Iisted belo~v which are oonsistent and no mare disruptive or disdabing iban permitted nses. (Prior oode § 90212; ameaded by Ord. No. 1687CCS § 7(part), adoptul 6R2l93) 9.04.08.?.4.030 Uses sabjax to performance atandards per~miL (a) Automobile rental agencies. (b) Servix stations. (Prior oode § 90213; amended bq Ord. No. 1687CCS § ~(part), adoPted 6R?J93) 9.04.08.24.040 Canditionally permitted ases. The follawing uses may be permitted 'm the CS Dis- trid subject to the approval of a Conditional Use Peimit: (a) Art Balleries- (b) Antomob~le dealtiships (c) DwellinS imitc ia oonjunction with Iivo-ia work studios. (d) Homcless shelteis with fifty-frn beds or more. (e) Muttifamily ~aelliag uniu. (~ Senior group housing. (g) Senior housing. (h) No mQre than twenty-five peroent of the Lotal square footage of a development may be devoud m the ~sam Mo~a ~99~ folloaiag ~~dental businesses that p~vide goods aad servias to employiees on the ptemi.ses: (1) Banks and saving.c aad loan institutioas. (2) B~siness machiae sales, display and scrvice. (3) Dtafting, bluepriatiag aad nproducaon servixs. (4) Healffi clubs and S3-~nnasiums. (~ Medicat applianx sales (~ Office furniwrc and equipment sales. (7j Pbarmacies and drug sto~s. (8) xestaurants. (9) Reta~7 to serve prima:ily employees wo~lang and visitors to busines~es on th~ premisrs. (10) Trxval and emplcryment offioes. (i) New industrial aad maaufacturiag nses or e~an- sion of ~g industrial and manufacturing nses coa- ducxed within an enclosed buildiag or an open enclosure screened irnm public vitw, provided they are oompatible with offia aad advanoed ta~nologi~al uses. (j) Public or private schools. (k) Pnblic storage faalities, mini-warehouses. A) Seivice s~tations. (m) Atry use of a~tion rig~t-of~vay for other tban tr.insportation Piu~poses. (n) Off'-site bazardous waste fac~liry. (Prior code § 9021.4; amended by Ord. No.1521CCS, adopted 5/8/'90; Ord. No. 1687CCS § 7(part), adopted 6rZ2J93) 9.04.OSZ4.Q50 Prnhibited ases. (a) C~aemas. (b) F;•rs•~,~~ dcalc~hips. (c) Drive-in and drivath:+nugh restauraats. ~d) ~~P P~~S ~ P~ ~Y abutting, or separated by an aliry from, a nsidential district (e) Any use not specificatty authoriud. (Prior code § 90215; amcnded by Ord No. 1687CCS § 7(part), adopted 6/1Zl93; Ord. No. 1852CCS ~ 16, adopted 6/i 1196) 9.04.0824.060 Property developmmt standards. All property in the CS Distirict s~all be develaped 'm acoardanx with the folla~wing standard.t (a) Maamnm Bailding Haght Tbree siories, not to exceed forry five fcet There sball be no limitation oa ffie number of stories of aQY Pulang scivcture so long as the height does noi e~ooeed the mimber of feet ptrmitted in this Section. (b) Marimam Floor Mia Ratio. The ma~dmum floor area ratio s~all be dotermiaed as follows: Parcel Sqaare Footage FAR 0 - 2~,500 1.0 22,501 and up 0.75 (c) Minimam Lot Size. Fifteca thousand square feet Fach parcel shall contain a minimum d~pth of one hnn- dc~ed fifty feet aad a minimum width of one huadred feet e~ooept that parcels e~sting on the effective date of ffiis (~apter shall not be subject to this requirement 438 ~ ' t , , , , ~ ~ ~ ~ ~ ~ ~ ~ Saata Moaica Municipal Codc (d) FSront Yard Setbaclr. T+venty feet mmmoum depth from aay public =ight-of-~vay or the ~aasportarion right- of~vay. (e) Resr Yard Setbadc. Nonc, ea~ePt (1) Where rear parxl line abuu a residantial district, a rear yard equal to: 5' +(stories x lot widt~) 50' The required rear yard may be nsed for parldng or loading within five feet of the rear parxl Ime pr~avided tbe parlang or loading does not euead abwc the fit~t floor level and pmvided tbat a wall not less than five feet or mor~ tban six fett in h~ight is e:ect~d and maimained along ihe zcar oommenaal line. Acce~ ~riveov~~ shall be permitted m perpcndicularly c~s the required rear yard prc~vided the driveway does not e~oeed ffie mm~ width perariited for the parldng area. A reqnaed rear y~rd shall not be used for oommeraal piuposas. (2) That needed to acoommodate landsarping aad screening for a r~ar yard buffer requaed ~t to the pravisions of Part 9.04.10.04. ( fl Side Yard Setbaeh. None, exoept (1) Where iaterior side parcel lme abuts a residential dis~ict, an interior side pard equal to: 5' +(stories x lot widtb) 50' The interior side yard may be ttsod ~ot paridng or loading no closor than to five feet to the mte:ior side propezty line provided the parking or losdiag does not extend above the fitst floor level and pro~ided a~al1 not less than five feet or more tban sb[ feet ia 6e~ight is erected and maintained along the ~ide co~meraai paroel line. A required 'mterior side yard shaL not be used for ascess or for cormmercial or mannfacnamj parpomes. (2) That nceded to acoommodate ls~q~mg re- quired for a sueet side yard, laads~ape b~a s~nd screeaiag putsuant w the provisioas o~ Psrt 9.04.10.04. (3) A ten-foat setback from an mter~or pevp~erry liae shall be required for pordons of b~dmjs tbat oontain windows, doois, or other openings iato the mur~a of the btulding. An interior side yard less thaa tea txt s6all be permitted if provisions of the Unifotm Bm7dmg Code related to fire-rated openiags ia side yards m satis5ed. (g) Developmmt Review. A Developmeat Review Parmit is required for a~r dcvclopmeat oi more than thirry thousand square feet of floor area aad say devel- opment witb~ rooftop pazldng. (Prior aode § 9021.6; amended by Ord. No. 16$7CCS § 7(part), adopted 6rL2J93) 9.04.08.24.0T0 Architectural review. AIl construction, additions to existing inWdings, and aay other eztcrior improvements tbat require iavanx of a building permit shall be subject to architectural review putsuant to the provisions of Chapter 932 of this Article. 9.04.0824.060 (Prior oode § 9021.7; amended by Ord. No. 1687CCS § 7 (part), adopted G/L2J93) Part 9.04.08.?~S C6 Bonlerand Commec+cial Dit~ict 9.04.08.26.010 Parpose. The 06 Di~ict is iateaded to aeoommodate a~vide nnge of general nta1, o~x, and flnaacaal uses servia~ regional, oommunity, aad local needs and to pramote new developmeat tLat is oompatble ~vith the scxle and charazxer of adjaceat ~tial neighborhoads, oonsis- tent with the goals, objectivrs, and policies of the Gen- cial Plaa. (Prior oode § 90221; amended by Ord. No. 1687CCS § 8 (part), adopted 6R?J93) 9.04.08.26.OZ0 P~ermitted ases. The followmg convenienct gooas and service type uses ahall be peimiued in the C6 Disaid, if oonducx+ed aithin aa enclosui buldmg, e~xpt ahere otherai.se permitted: ~a) APPlianoe rePair shops. (b) Art gaUeries. (c) Artist studios above the f~rst floor. (d) Automatic ice dispen~ng macbiaes which need not be m an enclosed bu~ding. (e) Bakeries. (f~ Baala and savings and loan institutions. (S) Barber or beauty shops. (h) Business oolleges. (i) C~u1d day care xaters. G) Qeaaer~. (k) Qubs and lodges. (1) Congregate hous+ng. (m) C~ltuial fac~ities. (n) Danoe studios. (o) Domestic violence shelters. (P) Eiectric distnbntion substations. (cil Enclosed storage facalities. (r) Exercise fac~ities. (s) Funeral pazlois or mortuaries. (t) General offixs (u) General nta7 and speciatiud retul uses. (v) Homeless sheltecs with less than fdt3--Sve beds. (w) Iaundromats. (a) Medical, deatal and optometrist clinics aad labo- ratorics. (Y) Medical equipment reatals. (z) Multifam~y darelliag naits. (aa) Patty equiPment reatals. (bb) Plaoes of worship. (cc) Photooopy shops. (dd} Real estate officxs. (ee) Rescaurants. (~ Senior group housing. (gg) Senior housing (hh) Sign Paiatiag shops. (ii) Single-family dwelling units. (jl~ Siagle-room oocupaary housiag. (kk) Small applianx repair shops. (ll) Tailors. (mm) Theaurs. 438-1 isana Mose+ 3~ 7+.VF.u6.LO.UW 5aata Moaica Mimidpal Code (ffi) Trade scbools. ° (oo~ Traasitional housing. ~PP) ~r9nsesw~ich are datcrmiaed bythe Zam- iag A~tmiaistrator to be nec~sary and custamiaz~ly associ- ated ~vith, and appmpriau, mcidantal, and ~bordiaate to, the prmcipal permitted uses and wlrich are oo~osisteat and are no more dis~uptivG or diswrbing than permitted us~s. (qc~ Other uses determined by the Zoning Adminis- trator to be similar to those litttd above and w}tich are oonsistent and no more disruptive or dishnrbing tban penmiutd us~s. (Prior oode § 9U?2.2; amended by Ord. No. 16870CS $ 8(part), adopted 6~R?J93) 9.04.08.26.030 Uses sobjed to pertormance standards permit (a) Automob~le r~cntal agenaies. (b) F~aasion of easdng automobile dealerships iadoor or outdoor area of up to ten petoent, but not cuxediag an additional five thousaad squat+e feet (b} Sidewalk cafes. (Priar oode ~ 90223; amended by Ord No.1687CC5 § 8(part), adopted 6/Z2J93; Ord. No. 1803CCS ~ 2 (part): adopt~d 523/9~ 9.04.OSZ6.035 Uses sobjed to a nse permit (a) Outdoor newsstaads. (Added by Ord. No. 1690CCS § 7 (part), adopted 7l13i93) 9.04.QS.Z6.040 Conditionaliy permitted nses. The following uses may be permittod in the C6 Dis- tiict subject to the approv~al of a Canditional Use Petmir (a) Automob~e dealerships in e~asstena an October 1,1996, provided that snch dealexships may not ns~mne operations if converted to another usc. (b) Expansion of eASting automobile dealeiships indoor or outdoor arca by more ihan ten pe~ent, or more thaa five thousaad square f~et, whichever is less. (c) Auditoriums. ~(d) Departmant scores amcr fifty thousand square feet (e) Homeless shelters with fifty five beds or more. ( fl Houls and mouls. (S) Nightclubs. (h) Saivix stations. (i) Take-0ut aad fa~t-food restauraats. (j) Theateis. (Prior code § 90224; amended by Ord. No. 1687CCS § 8(part), adopud 6/Z?J93; Ord. No. 1803CCS ~ 2(part), adopted 5l23/95; Ord No.1896CCS § 1, adopted 1/Z7/98) 9.04.0~.26.Q50 Prolubited ases. (a) Ciaemas. (b) F'irearms dealeiships. (c) Rooftop parldng on parcels dircctly abutting, or separated by an alley fiom, a residential di~trict (d) Any use not specifically authoriud. (Prior code § 90225; amended by Ord. No. 1687CCS § 8(part), adopted 6R2/93; Ord. No. 1852CCS § 14, adopud 6/11/96) 9.04.0826.060 Propert~ deRlopmeat wadu+ds. AIl property ia the C)6 District shall be developed m aaordancc ait6 tb~ folloaviag standards: (a) Maamam Bn7ding Height'Ibnee stories„ not to e~ooer.d farty-five feet There ahall be no limitation on the numbcr of sto:ies of atry hotel, detached parlaag struc- itue, or stxucture oontaiaing at least one floar of residaa- tial use, so long as the beight does not e~oxed the ma~d- mum number of feet pe:mitted 'm this Secxion. (b) Maamam FloorArea Ratia The maaimum floor atea ratio shall be dete=mined as foIlaws: FAR if at I.mst 1Liety Peroeat vf Project is Residmtial, or if at Least Eighty Per~wt Parce] of tLe Prnjed is a Sqaare Footage FAR Grooery Store 0 - 7~00 2.0 2.0 7,501 -15,000 1.4 2.0 15,001 - 22,500 12 1.75 22,501 and up 1.0 1S (c) Miaim~ Lot Siu. Seven thousand Sve huadred square feet Each paraeI sball oontaia a miaianum depth of one hundred fifty feet and a minimum width of fifty f~ct, eacept ffiat parcaLs exisdng on thc effecrive date of this Chapter shall not be subject to this requirement (d) ~ont Yat+d Setback. Laadscagiag as required pursuaat to ffie pravision of Part 9.04.10.04. (e) Rear Yard Setbadc None, euxpt (1) Where rear paroel line abuLc a resideatial distcict, a rear yard equal to: 5' +~ ories x lot width) 50' The required rear yard may be used for pazldag or loading w within five feet of the rear paroel line pmvided the parldag or loadiag docs not extend above the first floor lcvel and provided that a wall not less t6an 5ve feat or more than sQ feet ia beight is erected and maiatained along the rear cammenial parc~l liae. Acoess driveways shall be permitted to cross peipendicularty the required rear yard prvs-ided the driveway does not e~axed the minimum width permitted for the parldng area. A n- quired mar yard shall not be used for oommercial pur- P~ (2) Tbat needed to aecommodate laadscapiag and screening for a rear yard buffer required pt~*Ra*+t to the prnvi.~ions of Part 9.04.10.04. (~ Side Ysrd Setback. Noae, exxpt (1) Where ihe interior side paml line abuts a resi- dential district, aa interior side yard equal to: 5' ~- (stories x lot width) SO' 1' t ' ~ ~ , , ' ~ ' ' ~ , (smn Momaca 3AS) 438-2 ~ Santa Monica Mnniczpal Code The iaterior side yard may be nsed for parlaag or loadiag to within frne feet to the iaterior sade proparty liue prwided the parlvag or loadmg does not e~ctead abave the 5rst floor level and pravided a wall not less ihan fivc feet or more than su~ feet is ereaed and maia- taiaed alon.g Lhe side commercial pai+eel line. A neqained interior side yard shall not be nsed for acoess or for oommercal ptuposes. (2) That neede~ to axommodate laacLse~ipiag ra quar.d for a street side yarci, laadscape bnffer and screening piusuaat to tho provisions of Part 9.04.10.04. (3) A ten foot setbaclc fiom an mtesior pzoperty liae shall be required for pordons of buldiags tbat oontam wiadoovs, doors, or othtr openings iato the interior of the biu7ding. Aa interior side yard less than un feet shall be permitud if provi.aons of the Uniform Buldiag Code related Lo fire-raud opennugs in side yazds az+e Satisfied. (g) De~elopmmt Be~iew. A Developmeat Iteview Permit is required for any development of more than thirty thousand square fect of floor area aad any dcv~el- opment with roofeoP P~~~ ~Pt ~at for applications iaroolving the demolition and replaoement of atty e~tiag ~81e P~ Bx~iY store on a parxl wbich is not adjacent to a residentially zoned disOrici, with a store which has a mmimum of twenty-five thousand square fe~t of floor ana, oniy a net new floor area addition of mon thaa ihirty thousand sqnare feet shall be subjed w Da velopment RevieW. Square footage devoted to residautial use shall be reduced b3' ~Y P~nt when ralctiladng . whether a development review ~permit is required (Piior code § 90226; amended by Ord. No.1687CCS § 8(part), adopud 6!~?J93; Ord No. 1774CC5 § 4, adopted 11/15/94; Ord. No. 1927CCS § 15, adopted Ill1Ql98) 9.04.08.26.065 Deed resaictions. Prior to icsuance of a bulding permit for a project which, pursuant to this Part, bas reaeived a densitq or height bonus, or was not subject to a development review permit bc,cause the calcailation of tbe resideatial square footage of the project was reduoed by fifty percent, tbe applicant shall submit, for GYty reeiew and appro~val, deed resaictions or other legal ~~~+*+~*++eat~ saang forth the obligation of the applicant w maiataia the residential use of the project for the life of the projeu. (Added by Ord. No.1828CCS § 6, adopted 11l7/'95; ameaded by (hd. No. 1927CCS § 17, adopted 11/10/98) 9.04.08.26.070 As+chitectn~al re~iew. All new construc,tion, new additions to e~dsting build- ings, and aay othez euerior improvements that require ;m,~*+co of a bwlding pcrmit shall be subject to archite~ tural rcvicw p~usuant w the provisions of Chapter 932 of this Article. (Prior code § 90227; ameaded by Ord. No. 1687CCS $ 8(part), adopted 6R?f93) 9.04.0826.080 Spxial prnjed design aad developmmt standards Projects ia tbe C6 Dis~ict shall oomply with th~ fol- Iowing special project desi~ and dcvelopment standazds: Ground floor sueet frontage of each suucture shall be 9.04.08.?r6.06U designed ~vith pedesttian oriaatation ia aooordanoe wit~ Secaoa 9.04.10.02440 of this C~apter. (Added bs- pr~, No. 1893CCS § 10, adopt~d 1!!3/98) , _____-_ _ ~_ - x 438-3 (5anta t~iaoea 3A9) Sanra Momca Mimicipal Codc Part 9.04.0835 L1~iSD Li=ht Manufacturing and Studb D~striet 9.43.0835.010 Purpose. The Light Manufacaring and Studio Duu~a u inunded co preserve existing light indusa~al uses, prvv~de a locadon for snidio-relaced uses such as film and mus~c producaon and post-producaon faciGties uses, and pcvv~de opportunides for arast studio livdwork residenua] development'Ihe light Manufacnuing artd Studio Dimict is atso dex~gned to accom- modau visual aad performing aru studios and co provide for the presecvadon and expansion of existino schook. Allow- able development intensiry with this District is incended to b~ among the lowest in the Ciry, consiscent with the goais, objecdves. and poiicies of the General Plan. (Added by Ord. No. 1800CCS § 1(part), adopted 5/9/95) 9.04.0834.060 9.04.0835.020 Permitted ases. (a) The following primary uses shall 6e pet~niued if conducted within aa eaclosed buildiag (exoept whae other- wise pecmiaad). psovided any office spaoe inciuded tbene- with is dircctly relatai to. ancillary w, and supportive of the primary Permiued use on the same site az-d does not ezceed fifry peccent of the gmss floor uea of che primary use: (1) .Attist swdios and art gaHeries. (2) Aatomobile repair and auoomobile painting facilities ~accxpt those within one huadred feet of a iesideadal disaict (3) Dance swdios. (4) ConSieSate 6o~n8• (5) Domesrit violence shelurs. • ~6) Escabt;~t+me.±n engaged in research relabng to. or the development, mamufacuuing. fabricating. ~sembly. usting, cepair, serviciag, or processing of. the foAowing: (i) Aimaft patu oihu than engutes. (ri) Appatet except learher and fur goods. (iii) Audio products. (iv) Mctal. wood or canvu awnings. (v) Costed, plated. and engcaved metaL (vi) Cominunicarioa equipment ~ (vu) C1n scone and s~one products. (viii) Diecut Paper aad PaP~rboatd. and catdboard.~ (ix) Electric componenu and accessories. (x) Eleco~ic lighting and wiring equipment (xi) Fabricaud texdle producu. (xii) Furninuz attd fixmres. (xiii) Glass pc+oductt. (ziv) Jewelry. silverware. and plated ware. (xv) Luggage. (zvi) Musical instruments and puu. (xvii) Office machic~es. (zviii) Paperboard containas and boxes. (xix) Pens. pencils. and other office and artists macecials. (ux) Perfumes, cosmetics, and other coilec pr~pa:auons. (xxi) Pharmaceutical produccs. (xxii) Photographic and optica! goods. wacches, aud clocks. (xxiii) Plumbing fixaces and heacing apparacus. (xxiv) Pottery and relazed products. (xxv) Professional. scientific. anc! conu+nlling instrumenu. (xxvi) Toys, amus~ments, sporting and atWetic goods. (xzvii) Wooden containers. (xxviii) Food pcoducu. except that no food consumption by the public or food wke-ont by thc pubGc shall be pottnit- ted. (xx'vc) Produces which are dettrmined by thc Zoning Adminisaacor to be similar to those listed above and which ara consisunt with, and not usociated with more disnubance or disrupaon than, pemuued producu. (7) Escablishmen[s engaged in the wholesale disaibution of the following: (i) Dry goods and appatel. (ii) Electrical goods. (iii) Groceria and relaud products. except unpackaged or unprocassed poulory and poultry producu. fish aad sea- food. and fivic and vegetables. (iv) Hac+dware. plumbing. heating equipment and sup- plies. 440-1 tsaon Moo~n i2-9a) 9.04.08.35.020 Saata Monica Municipal Code (~) ~~~Y, ~Pment, and svpplies, except farm machiriery aad equipment (vi) Motor vehicles and automotive equipment (~) ~P~, PaP~r products, and Idndced supplies. (viri) Pharmaceutical products and allied pnoducu. (8) Homeless shelters with less than fiiry-five beds. (9) Photagraptsy studios. (10) Public or private schools existing prior to Septem- ber, 1988. ° (11) Public utiliry service cenuis and servia yards. (12) Public uuliry svbstations. (13) Self storage or public mini-wuthouses. (14) Singk-room occupancy housing. (15) Transiuonal housing. (16) Veterinary clinics. (17) Waz,ehouses. (18) Uses wluch are deurmined by the Zoning Adminis- trator w be similar to those lisced above and which are c:onsistr.nt with, and not more disaubing or disrupuve than, permiued uses. (b) The following primazy uses shall bc pcrmitud if conducted within an enclosed building (except whete other- wise permiaed) and may include office spaco, so long as the office space is dinecdy relaud, ancillary to, and supportive of the primary use loeated on the same site: (1) Broadcasoing/communications.telecommunications facilides. and ancillary faciliues cuscomazily usociated with and incidental to such production facilides, including, with- out limitation, facilities for broadcasting, nansmitung, dis- aributing, recorcling, receiving, editing, and creaang broad- cxsVcommunications and telecommunicauons. (2) Design smdios and offices for a~hicects. (3) Drafdng, printing, blueprinung and reproduction services. (4) Iaboratories and facilities for medical tesung and scir.ntific tesearch develapment and usdng. (5) Publishing facilirics. (6) Software and other compnur-related pivduction facilities. (7) Smdios and offices for graphic designers. (8)~ On-site production facilitia for advettisin8 P~~. (9) Outdoor or enclosed entertainment-related facilitiu including, without limitation, movie studios and producaon facilities, distribudon facilities, editing facilidu, cauring facilities, prindng facilides, post-production facilities, set consavction facilides, sound studios, spxial effects facilides and other entertainment-nlaced production opecadons. (•l0) All uses c~stomary or incidental to the producdon or disuibution of motion pictures and other forau of au- dia/visual products, inciuding, but not limiud to, education and entertainment films or tapes. (1 I) Uses which are deurmined by the Zoning Adminis- nacor to be similar ;o those lisced above and which ar~ consistent with, and not more disturbing or disrupave than, permitted uses. (c) General office uses e~cisting as of June 26, 1993. and genecal office uses in buildings which were granud a plan- ning permit specificaliy ior general office uses between December 1, 1992 and ]une 26. 1993 and which obtained a Certificate of Occupanc}• prior to the adoption of this Part, sha11 be permitted pcovided that such uses may not expand by moce than ten petunt in floor area. (d) Servic:e stations shall be pormiued provided that they are not located withir- one huncired fat of a iesidenual disaict and they comply wit6 Sectian 9.04.12130 of this Code. (e) Restau:ants with five huodred squue fett of floor uea or less s6all bo permitted. (.Added by Ord. No. 1800CCS § 1 (part), adopted 519/95) 9.04.0835.030 Conditionally permitted nses. The following uses may be permiued subject to the issuance of a Conditional Ux Pertnit ~ (a) Aucomobile dealerships. (b) Automobile tepair and automobile painting faciliries, and expancion of ezisting facilides within one h~ndred fect of any residenual district (c) Child day caze centecs. ~ (d) Health clubs aad gymnaciums. (e) Homeless shelters with fifty-five beds or moit. ( fl Outdoor storage of fleat vehicles if such vehicles aze directly relaud to the primary industrial or manufacauing opaation on t6e site. (g) Parldng and automobile storage lots and suvetunes. (h) Placts of worship. (i) Restauranu with over five hundred square feet of floor area. (j) Retail salcs of goods manufactiued on the przmises, provided that the floor space devotr.d to such use dces not exceed twenty pe~ent of the gross floor area of the primary permitted use or two thousand square feet, whichever is less. (k) Service stations within one hund:ed feet of any residential disuict (1) T'heaucs. (m) New public or privau schools. (n) Any use of the transportation right-of-way for other than tansportation purposes. (Santa Momu 12-98) q~Q-2 Santa Monica Mtmic~al Codc -(o) Uses whicb are deteimined by the Zoning Ad- mmistrator to be s~ilar to ffia6e listed above and ~vhicb are cansistent ~vith, aad not mon disturbing or dianptiv~ t6an, conditionalfy permitted vses. (Added by Ord. No. 1800CCS § 1 (part), adopted 5/9/95) 9.04A835.040 Pro}ubited nsea. 'The following nses shall be proh~bited: >. (a) An3' use mvohring t6e manufacxuro, Pro~mB oz treatment of products, which bq nature o~f ffie opetatioa is h7cely to ba obnaodous or offensive, whether by reason of emission of odor, dust, smoka, nmdout gas~s, noisa, vibration, glare, or heat or by reason of other impacls or hazards rela~ag to materials, P~'ocess, Product ~vastes or by other methods, shall be prohbited ualess mitigation measures are submitted and are aeceptable to the Za~g A~minis~ator. (b) Firearms deaietshigs. (c) New general office uses. (d) Rooftap parldag on parxls diredly abutbiag or separated by an alley from, a residentiai distrid. (e) Aay use not spec~caily authaaiud as a permitted or oonditionally peimitted use. (Added bq fhd No. 1800CCS $ 1(part), adopted 5/9/95; amended by Ord. No. 1852CCS § Z0, adoptul6/il/96) 9.04.0835.050 Property dtvelopmmt standards. All property m the L.ight Manufaciuring and Studio Distirict shaU be developed m aaordanoc with tbe follow- ing standards: (a) Ma~dm~ Bailding Height 1be ma~dmum build- ing height shall be two stories, not to ez~eed thirly feet, e~acept the following projectc may have a ma~~ height of four stories, forty fivo feet• (1) Prnject~ mvolving the expaaQOn of public or private elementary and secondary scbools (Grades K through 12) c~dctimg prior W September 8, 1988; (2) Entertamment-related facdities mdud'mg so~md stages, movie studios, editinS fadlities, Post'producaon fadlities, ut can.muction fadlities and spedal effects fadlities; (3) T6eaters. There shall be no lnmitation on the number of stories of any detached parlong structure so long as tbe beight does not e~oceed the rnimber of feet permitted 'm ffie districx. (b) Maamam Floor Mea Ratia Ma~um floor area ratio sball be 1.0, exoept the followiag projects may have a floor area ratio of 1S: (1) Projects invotving the cxpan.von of public or private elementary and secondary scbools (Grrades FC through 12) e~ostmg prior to September 8, 1988; (2) With apprnval of a dev~lopment review permit, projects including atbst studios, provided the additiona] S floor area rado is devoted to a~rtist studio use, and the commerdal square footage does not c~oceed 1.0 Soor area ratio. (c) Minimnm Lot Size. The mm~um lot sme sball be fifteen thousand sqnare feet, each lot sball oontam a minimum depth of one htmdred fifty feet and a mimimum 9.04A835.030 width o~ one hundred fe~t, aooept mat lots e~istmg on tbe effective date of the ordmaace ood'dzed 'm this C6a~ ter s6a11 not be snbject to this requtrement (d) ~rnat Yud Setbaclr. All landscaping sball be m axordance with ffie provisions of Part 9.04.10.04 of this Code. (e) Rear Yard Setback. No rear yard setbac]~ shall be reqai~ed aooePt (1) Where tbe rear parxl Iine abut5 a residential distcid, a rear yard equal to: S' +Sstories x lot ~vidth) 50' shall be requued The required rear yard may be used for parkmg or load'mg to arthm five feet of the rear parcel line, pi+ovid- ed thc parl~g ar loadiag d~oes not c~ad above the fast floo~ level aad pnovided that a wall not less ffian five feet or more than sbc feet m height is erected and maiataiaed along the rear commerdal paroel lme. Acxss ahall be Pcrmitted to ~ PerPendiculaTly the re4uired reaz' 3'~~, provided tbe driveway does not e~aoeed the min~um ~vidth permitted for the parldng azea. A requa~ed rear yard shall ~t be nsed for oommerctial puiposes; (2) Sucb rear yard setback as is ner,~ssary to accom- modate landscaping and saeenmg for a rear yard buffer requa~ed pursuant to the provisions of Part 9.04.10.04 of this Code. (fl Side Yard SeWack. No side yard setback shall be reqaaed aooeP~ (1) Where the mterior side pan~el lme abuts a resi- dential disorict, an interior side yard equa! to: 5' +Sstories x !ot width) 50' shaII be required The interior side yard may be nsed for parlvag or load'mg no closer than five feet to the iatesior side pro~ erty line, pravided ffie parl~g or loacimg does not o~- tend above the fust 8oor leveI and provided a wall not less than five feet or more thaa soc feet ia height is erected and maintained along the side comme~ial parcel line. A requaed i~erior sid~ yard s6all not be used for acc~ss or far oommeicial purposes; (2) Sud~ side yard setback as is needed to aocommo- date landscaP~B required for a street side yard, land- scape bnffer and sczxnmg pursuant to the provisions of Part 9.04.10.04 of t6is Code. (3) For portions of biu7d'mgs that c~tam windo~ws, doors, or other opemags mto the mterior of tbe bulding, a ten-foot setback fmm an iatzrior property line shall be required. An mterior ade yard utbac]c of less tban ten feet shall be pe~mitted if pmvisions of the Uniform Buildmg Code related to fire-rated openmgs in side yards are sati~ied. (S) Bailding Stepbadc. Bwlding stepbacla shall bo pmvided pursuaat to thc requQements of Section 9.04.10- ~ .02.040, unless the Architecttaal Review Board finds tbat 440-3 (s.a~a t~loeiea 2ao) 9.04A835.050 Santa Momici Mu~aic~pal Code modification or elm~ination of this roquar.mmt w71 not be detrimental w the propeny, adjoinioS PmP~~ ~ the gtne:ai area in wbic~ the pw~erty is bcated ~d tbe objectives af the stepback requiremcnt are satisfied by tbe pmvision of aluraative stepbaelcs or otLer bu~7ding featnres wbic~ reduce effa~ve mass to a degoee oompa- rable te otber re~evant standards. (L) OtjmPic Boderaed Setb~ck. Bw'ldinBs sLsll be setback a minimum of twenty feet from Otympic Boula vaid. (i) De~ciopment Reriew A developmtnt review pcrmit is required for aay develapment of more tLan thirty tLousand square feet of floor area, for aay devalop- meat ~vith rooftoP PaTl~aB. and far prajaxs whic~h im- clude artist studios ~vith a iS floor area ratio, provided the additional S floor area ntio u devoted to arti.rt studio use, and tLe cammeroal aquare footage does not e~oceed 1.0 floo~r area ratio. (Added by Oid. No.1800C~GS ~ 1(part), adopted SA195; amended by Ord. No. 1634CCS § Z, adopted 1?!12/95; Ord. Na 1862CCS § 1, adoptai 9/24/9~ 9.U4.0835.060 Arrhitsc~orai rniew All new ooattivcdon, new additions to aosang bnik3- ~ iags, and a~- other c~terior imp~ovements that requa~ I issuance of a building permit shall be subject tio ard~itea t~ual rcview pursvant to the pm~v'sssions of C~apter 932 ~ of tbis Coda Fot ptojects that mclude artist swdios, tbe t~-n~itectural Review Board s6all refer to the Light ', Manufactusimg,/Research a~d DevWopmnmt Stndy dated June 15,1994 prepared by ~ Moule and Ste~aaos Polyioides, tn msu~re tbe oompatbility of ffie artist stu- dios with othar uus in ffie districx. (Added !ry Ord. No. 1800CCS § 1 (part), adopted 5/9/95) { I i r.:c 9 a.os3s A oasc~ ~ run~ o.~~ n~;~c 9.oa.os.3~.oio r~~. The A Overlay Dis~ict is intended to provide ade- 4~~ P~8 facalities to support importaat commercial oorrida~ and aeig6ba~hafld eomma~cial arcas as the G~ty, ~vhile assuring that ead~ facality wiII not adverse~y m~pact (s++~ M~ zao) Santa Mamica Mnnicipal Code 9.04.0838.010 t6e envaoameut a~ nearby rardents or dQninish the mtegeity of t6~ subjeci residential zem~iag dixtrict ia a manner cAmsistent ~vith the goais, objectives, aad policaes of ffie C~al Plan. Any paroel dass~ued as "A" ahall also be ~ed 'm one of the Residmtial Disaicts, (Prior code § 9~321) 440-5 (~ ato:o~ a.oo) Saata Monica Mtmicipal Code .. 9.04A838.020 Applinb~itp. F.~.~ng pazl~tg on "A" lot~ shall be petmiitzd if aIl of the fol}owing oonditions are me~ (1) The caaunercaaal parxl supported by the "A" panxl is not redevelopad. (2) Thc lot remains as a surfax level parlrmg lot (3) The aquare footage of the eosting commeraal bnlding on the cammcrcial paroel u not addad to ar ~anded beyond fifty perc~ent of tbe floor arca ~g on ffie effedive date of this C]~aptcr. (4) The raquired parl~g for ury new addition or espansion of less tLat f~'ty perocnt of ffie floor area is not locateci on the "A" parxl (Prior code ~ 90322 ~PaTt)) 9.04.0838.030 Permiued nses. Zbe follvwiag uses sball be permittr.ci in the A Over- lay District: (a) All uses Iisted as permiued uses m the residential dis~ict ia which the parcel is located. (Prior o~de § 9a322 (Part)) 9.04.08.38.040 Uses sabject to partormance standards permit The follawing uses may be pcimitted 'm the A Overlay Disttict subject to ffie approval of a Perfoimaace Stan- dards Pernnit (a) All vses listed as subject to Pesformanoc Stan- ~ards Permit in the residential dis~ict in which the parcel is located. (Prior code § 90323) , 9.04.OS38.050 Conditionally permiued nses. The follawing uses may be peimitued ia the A Overlay Districc subject to the approval af oonditional use peimi~ (a) All uses liSted as oonditionalty peimitted uses in the residential disttict in which tho parcxl is located (b) Parlaag s~ct~uzs balvw tbe gtouad level if all of the follvwmg oonditions are met (1) The "A" parxl was in parldng use on the effea tive date of this C~apter. (2) The faaility is foi"the tcmporary parldng of tran- sient motar vehicles and tntcks. (3) The parldng st~veture is aooessory to a permitted oommercial use. (4) The surface level of the "A" parcel is developcd and maintained as laadscaped open spac:e for the life of the oommercial pmjecL (S~ The entranx to thc subtetranean strucaue is located on the oommercially zoned paroel. (c) Op~n air fazmers markets. (d) Mnnicipal par]ang structu~rs, either abave grade or belaw grade, if all of the follo~vmg conditions aro mct (1) The parldag s~ucxure replaoes a mimic~pal sur- face parldng lot (2) Tbe parcel siu is a minimum of forty thousand square feet (3) The parrxl is located 'm the North of Wilshine Overlay DisuicL (Prior eode § 90324; amended bq Ord. No. 18780CS § 1, adopud 5/13/97; Ord. No. 1895CGS § 3, adopted 1R7/98) 9.Od.0838.020 ~ 9.04.0838.060 Prnhibited nses. (a) Parl~g stivctut+es located abwe the grouad level (b) There sba11 be no use of a~ parcel in the "A" Ovetlay Disaict for automob~le parking unless all prnper- ties between the side property liac of thc "A" paa;el aad the bouadary of aay adjaoent armmercial district are in no~~esidential nse. ~~) R~~P P~~B ~' ~~8. ~ ~Paraud b9 ffi alle9 fmm, a resid~ential use. (d) New surface level parldag lots. (Prior «~de § 9032.5) 9.04.0~.38.070 Property developmmt staadatds for aon-parldng nses. AIl nonparlQag uses develoged on property in ihc A Overlay Disoiicx ahall be dcveloped in aooordanx with the same property development staadards required for the underlqing residtntial district (Prior codc § 90326) 9.04.08.38A80 Dere,lopmmt staadards for below ~ade psrlung rtivdnre facilities. (a) Side Yatd Setback. The side yatd shall be five fe~t for any undergronnd parking fac~ity. No side yard shall be requireti adjavent to a cammerc~ally zoned par~el or aaother "A" designated parcel ia oommercial parlQag use. Pazldng strvctures locatod belaw grade sball be e~- empt from the pan;el ooverage and setback requir~ments provided that there nemains an unc~ocavated area 5ve feet in width along the side property lime ffiat abuts a resi- dentially zoned parxl which sball oontaia landscaping piusuant to the provisions of Part 9.04.10.Q4. (Prior oode § 903Z'n 9.U4.OS38.090 Special desiga standards for ull ~ parlaing facilities. (a) WaIIs. Walls shall canform to the provi.sions of Sc,cxion 9.04.10.02.080. (b) Use of 8equired Yards. There shaII be no ame,ss to parldng permitted within the requaed side yard, ea- c~ept aa~ess may bc provided within a required side yard tbat abuts a cammerciaUy zoaed paroeL (c) Imdscaping. At least fdty perrtnt of the re- quired front yard area shall bc landscaped putsuant to thc pravisions of Part 9.U4.10.04. (d) YeLide Aexss. Vehicle acoess to and itom all parlaag siructures sball ba located a minimnm of twenty feet or a g:eater distaacc if practical imm aay residen- tialiy zoaed paroeL ~~) ~~& ~~8 ~ ~ P~~ P~t to thc pravi.tions of Section 9.D4.10.Q2270. (Prior oode § 9032.8; amended by Urd No. 1878C'CS § 2, adopted 5/13/97) 9.04.0~.38100 Ar+chitect~al c~eview. All ntw constru~tion, new a~ditions to eadsting build- imgs, and any other ezterior ~pmvements that require issuance of a building permit shall ba subject to ai+chitr,o- tuial review p»*~^~*+t to the provisions of G'bapter 932 of this Article. (Prior c~ock § 90329) 441 , , ' ' , ~ , , , ~ ~ ~ ~ ~ (Santa Momiw 5~9~ ~ 9.04.10.02.440 Santa Monics Mnnici~xl Code Psit 9.a4.10.04 Landsraping Standonis 9.Od10.04.010 Parpose. These regnlations are intended to enhaace the ses- thetic appearanoe of dcvelopmeat ia all areas of the C~ry ~' P~'~~8 ~ ~ ~LY. 9~~9, aad fuaction- al aspe.cts of laadscapiag and landscape ac~eeaiag ooa9s- tent with Architecttual Review Board Gnideliaes, and the goaLt, objec~ives, and polides of the General Plan. (Prior oode § 9041.1) 9.0410.04.020 Applicab~it~ In all districts o~xpt thc Rl aad RZR residential dis- t~icts, bnt includ'mg the R1A lots developod for pazl~g nses, ao buldiag~ structurG, parldag lot, storage yarti, or other ste impravementt shall be erectod. oonstivcted, cnaverted, established, altend, remodekd, enlatged, or othenvise mod~ed, nor s6all aay lot or premises be nsed or oocupied uatil such time as the pcemises are suitably landscaped in aooordance ~vith this Snbcbap~cer. Ia the R1A, OP•]A~ OP-2A, OP-3A, and OP-4A, Dist~icts, lots dweloped for parldng uses, prior to i~vanx of a buld- mS P~rmit, landscaping and iaigation plaas sball be sabmitted to the Arcbiteco~ual Review Board for nview and appst~val ia a manner presaa'Ued bq tbo Zoning Ad- mini.~ator. An eaisting biuld'mg nan-oonformiag as to site landscapc staadatds may be modified withont oom- P~8 with these standards pmvided tbat the bwlding is not substantialiy remodeled. (Prior oode § 9041.~ added by Ord. No. 1496CCS, adopud 9/1.6/89) 9.04.10.04.030 Resetved. 9.04.10.04.Q40 Reserved. 9.04.10.04.Q50 Resenred 9.04.10.04.060 Reqaired landsc~pe area for hnild'mg sites. (a) In all residential dis~icts, mcludiag the RVC Dis- trict, a minimum of fifty perxat of the required fromt and side yard setback shall be landscaped, e.~xpt tbat for parcals less than fifty feet in aridth, fifty parxnt of oae side yazd shall be laadscaped. In OP-1, OP-2, OP-3, and OP-4 Disuicts, all areas not c~vered by sidewalks, driva ~YS. P~~~s, 8~8es or bu~dingt, shall be treated as landscaped area~, as defined 'm this C1~apter. (b) In thc C~, C3, C3C, C4, C6 and BC~ Districts, a landscape area equal in square feotage to 1S dmes the soreet frontage of the parcel shall be provided adjaxat to each public street right-of-way. The requa+etl area may be provided ia aay configuration aacxpt tbat no portioa of the bw7ding shall be located beta-e~n the landsrape area and the public rigbt-of~vay aad only azeas withia ua feet of the pa~roel liae shall count toward ffiis require- ment For purposes of this Sectioa,landscape areas sball be oonsidered to be ia-grouad plaate:s and shaD not mclude bardsc~pe- The landscape requi:em~nts for the CZ, C3, C3C, C4, C6 aad BCD Districts may be modi5ed subjat to ihe rcview and appmv~ai of the Archite~tural Revie~v Hoard if the Board dettrmiaes that aa alternative landscape oon5guration would meet tha objectives of this requiremcat The Arahitectural Rcview Board may n- qnire either more or less laadscaping than w~ould other- ~vise be required by this Cbapter ~ tho followiag fiadings arc mado: (1) That the strici application of the provisions of Serxion 9.04.10.04.060(b) would resuit ia practic~l diffi- cnlties or smnecessary hardships mo~nsistent with the genual piupose aad iatent of the Saata Monica Muaid- pal Code and the Land Ux Flement or that there are GxxptionaI ~stanoes or conditions applicable to thc propos~d prnject that do not apply general~y to othez ~s oovGred by the Secaon; (2) Tbat the gran~eg of a Laadscape Satbaclc Adjust- ment aotild not advezscly affect public welfare, aad ~vould not be detrffieatal or iajurious to property aad impravemam~s ia the sm=ouadiag area; (c) For all new conso~vction or major reniodoling ia tbe C5 Sperial O&oc Disttict, a landscaped azea at least fifteen feet wide shall be provided and maiatained immediately adjaxnt to all property Imes adjaccent to sueets or rights-of-way euxpt in required driveavay or other aooess areas. (Prior cade § 9U41.6; aanended by Ord No.1553IXS, adopted 10!?3/90; Ord. No.17060C'S § 2, adopted 9I1.8/93) 9.04.10.04.070 Reqnirtd lsndscape area aad lighting for sarLa pst)dng lots and other ~ehicalar ase areas. (a) A mmimum of ten peroent of the total exterior pav~ed area that aooommodates vehicular tr~ffic indudiag sarfaa parldng lot~, aooe~wa95+ d~iveway~ ~iacludia8 those seiving drive-m and drivathrough restauraats, banla, and gmxry stores). loadiaB areas, se:vioe area.s, aad parldag staDs sball be dev~nted to landscaped islaads, peniasulas, or medians dis~buted throughout the paved area. A miaimom of one ~+ee for each on~ thousand two hundred squane feet of paved area that aooommodates vehicular ~affic shall be pmvided and maintaiaed. (b) TL~ laadscape area required for pazldag lots and velucutar nse areas sball be ia addition to the ]aadscape azea requirod for building sites p~~eenant t0 LhC F1L~PLS10nS of Sa;doa 9.04.10.04.060. (c) Iigbting sball be prwided and maintaiaed 'm accardance with Secaon 9.04.10.022~0. (Prior oode § 9041.'n 9.04.10.04.080 Ladscape scceeaing and ba~eriag oi c~mmeroal, indnstrial, and patking nses irom residmtial ases. (a) In all commercial dis~icts, ihe RVC Dis~ict, and HG~ Dis~ict, all azeac devoted to vehicle parlaag, stor- a8~. servia. rcPair. equiPment nPlarement, washing, polisbmg, paiatmg, aad sim~ar uses that are visble from a public right-of-way sball be screened axording to the staadards set forth ia this Searon. Th~ provisions of this (5aara l~to~a s-ss) 460 saata Monica M~st c7oae Sa~on shall not apply to areas devoted to the diSplay of ~ autamob~les for sale, lease, or rental ~vhere the rale, lease, or rental is the principal oommeidai bnsiness. (1) A landscaped st~ip aball bt provided and maia- tained, e~oocpt in a required driveaay or other aooess area, that is aot less than ta~n feet ia depth measured horizontally firom the property lme adjaocnt to the public right-of~aray. (2) Permaaen~ opaque laadscaping bermi~og, fma ing or walls shall be pravided and maintaamsed at a height of not less than three feet abwe the av~erage adjaoent grade at a distance of aot less tbaa two fe~t meas~u+ed horimntally fram tho pr~- line adjaxntta thepublic right-of-aay. Ia no case shall the ~g, feax or ~vaIl e~ooeed eight feet in he~ight above ffie adjacxat gcade. Plant material may amcod eight feet in heaght (3) Grading should be used as much as po~ble to screen parldag lots hy loweriag the parldng atra or bq pmvidiag landsc~ped earth mounds or berms. (4) In li~u of the nequire~ents of subsoctia~ (1~ (~~ and (3) abo~ve, the Arrbita~al Review Board may apprave other screening plaas, designs. and materials of equal area and sczeeniag which satidy tbe iatent of the scretning staadards. (~ No screen requined w be erec~d aad maintamed by these staadards shall be oonstincted ~vithin five feet measuned horimntaliy on either side of a dcivew~ay en- tranx or vehicular aoce~vay op~ning onto a s~+eet or alley, which woutd impair an nnobsteveted aoss view of pedes~ians on walk, alley, or elsewhere by motorisls entcring or leaviag. The uaobstructed areas sball aot cx~oeed five feet on either side of a driveway, eatraax, or vehiailar aooes~vay, unless requiaed for safety reasons. (b) A landscaped buffer sball be provided and maia- tained on a oommtn~at, industrial, or "A° mned pancel when the sidc or rear yard of the pazrel abuts a reaiden- tial}y zoned or used paroeL The landscaped bu$er to be provided and maintaiaed on the oommerdal, industcial, or "A" pazcxl shall contain a solid deoorati~e maso~y wall aloag all paroel lines adjoiaiag tesideatially zoaed or uscd par~cels which sball be not less than five feet and not more than eight feet in height measured itvm the ground level of the residential parceL A 5v~foot~vide landscape area between the wall and th~ oommerdal, indusnial, or parking use shail be provided oonsisting of one tree per every five linear feet of frontage plaated not less thaa five feet apart and not less than 5ve feet in height when plaated. In lieu of the requirem~nts in this subsectioq the Architectutal Review Board may appmve other buffering plans, designs, and matcrials of equal area and screening which satisfy the inunt of the buffer- ing standards. " (c) The laadscape area reQuiretl for ~niag and buffering shall be in addition to the landscape area required for building sites pursuaat to thc provi.aons of Section 9.04.10.04.06Q. (Prior oode § 9041.8; amended by Ord No. 1803CCS § 9, adopted 523AS~ 9.04.l0.04.080 9.04.10.04A90 Sceeening a~f s~omob7e dnleeshigs. (aj In all oommerdal distticts, alt areas vis~bk ftom the public right-c~~vay devoted displary of aubomob~les icr sak,lease, or reatal ~vhe:e tbe sale, lease, or rental is t~u p~apai aom~macial bns~ness abaII be ~ aooomdmg to the boII~ving staadard~ ~1) A land~aPod s~ s~all be Provided and maia- ~~, ~Pt in a roq~ed c~riveway or other aooess ana, tbai is not less thaa t~vo fieet ia depth measu~d borimntally ftom the pmperty liae adjaoent to the pnblic right-of~vay. Thane shalt be prwided 'm the landseaped atrip a minimum of three shrubs per tea feet of liaear frantage or portion thereof aad adequate ~roundoever to Provide oomPlete oovera8e arithia two yeazs. 46Q-1 (s~ ~ s-~ Santa Moaica Muaiapal Code (2) Permaaent, opa4ne landscapiag, fencing, orwalls s~all be prwided and maintaiaed at a height of not less tloan two feet above tbe averagc adjaeeat grade at a dis- tance of not less than two feet measvred harimataily from th~ property line adjacent to the public right-of-way. Plant material may e~rceed twenty-oaa fext in heig,ht (3) In lieu of oompliaaa with subsecaons°(i) aad (2), the Architecmral Review Board may approve other ~T~& P1aas, desiBns. aad materials of equai area and screening a~ich satisfy meet tbe iatent of the s~xniag standards. (b) Th~ landscape area requaed for screeniag shall be in addition to the landscape area required for bw7ding sites punuant to the provisions of Sectioa 9.04.10.04.060. (Prior code § 90419) 9.04.10.04.100 Lndscytpe maintenana and piotection (a} All iaterior laadscaped area~ ahall be protected from vehicxilar damage by raised cancteu or other aub- ing of at least su iaches in height (b) All acw1Y Planud t~s shall be planud ia perme- able soil. (c) L.ow volume irrigation systems with antomatic controlleis shall be required. Such irrigation inctudes, bnt is aot limiud to, low volume sprmlcler heads, drip emit- te:s, and bubbler emiueis. (d) Sprinkler spacing for both turf aad non-tttrf areas shall be fifty perrent of the diameur of the thraw. (e) Aa~-dram w~ves shall be installed in slopiag azeas with elevation di$ereaoes of more than five feet (~ I.andscapo materials which hav~e different aater- ing needs shall be irrigated by separau control valves. Water coverage shall be limited to plaat azeas oaly. (g) Automatic controllers shall be set-to water be- tween 5ve p.m.•znd un a.m. to reduoe evaporation. (h) An aanual mainunana program with sSasonal water schedule shall be nquired to assist a~- landscape manager. The waur schedule shall incluck run time and frequenry of iaigation for planud azeas with srmilar characteristics. The watering period shall not e~oxed the pomt at which tunaff bagias. A maiat~enaace program shaIl not be required for systems with w~ moisture sensors that ai^a installed aad properly adjusted. (i} A minimum of PVC Schedule 40 or equivalent shall be used for main liaes and uader driveway azeas, and a minimum of PVC Schedule 200 or equivalent shall be used for lateral Iines. (j) All landscaped areas shall be peimanentty main- tained and kept free of weeds, debris, aad ]itter. All plaat mauria~s shall be maiatainetf m a healthy grvwiag oondi- tion and diseased or dead plant materials shaU be re- placed, m Idnd, pursuant to the approved plans ~vithin thiitiy daqs• (k) I~ at the time of applicauon for a cxrtificate of oxupanry, or final buildin8 Permit mspecaon. the n- quired landscaping is not yet in plaee, tLe owner shaU fle with the C~ty a Deferral C,ompletion Agreement secured in a manner aaxptable to the C3iity m tbe sam of four 9.04.10.04.090 dollars per square foot of required landscapiag not yet ia plaa to enstn~e that such rcquired landscapmg shall be instaD~d. (Prior ood+e § 90~41.10) 9.04.10.04110 Witer mnsantion laadscapiag. (a) Tbe ma~mum azea permitted for turf shall be twenry percent of the total aiea landscaped on the siu. Higher pes+centa~ge.s may be Permit~ed ~vhea t~af is aa essential part of the developmeat such as playmg feelds for achools or ~rarks, or as determiaed by the Arrbitecacr- al Reriew Board. Iargo araas of t~uf shall use so~1 mois- ture senso~ as pazt of the arigation system. (b) Turf shall not be permitted m areas difficnlt to inigate, such as sidewalk sorips, slopes, or aarraw path- ~ (c) Turf usage shatl aniy be permitted whea used for hip,blyvisttal aad fuacaonal tue areat. Iaaner ~vater usage wrf or warm season ~ra~ ate rooommended for all dirf at~as. (d) Plaats usad in aon tu=f areas shall be wates oen- serning plaat material. Flvwering ornameatals that are not low water using plants shall b~ o~tinted as tuif wben c~lailatiag ttuf area5. Apprapriate low water plant vazi- eties shall be app:wed by the Diriector of Geneial Ser- vices. (e) Fresh water bodics and frnmtams where water is sp:ayed 'mto the air shall be prohbited The Diroctor of Ceaeral Servioes may vary this reQuirem~at when the water to be used is not fresb water. (Prior oode § 9041.11) 461 (s~mea Mases n•9q 9.~4.10.08.040 s~ Mo~ M~t coa~ 9.0410.08.040 Nnmber oi parting spaas ra~aa+ed. Parldug spaoe requiremcats are ~dicataI in ?able 9.04.10.08.040. ~ (s~aa Aso~n 7-9s) 464 Saata Moaxa Maaiapal Coda 9.04.10.08.040 Tabk 9.041Q08.040 (Continned) • Mazim~ Perceat 11~Iinim~ OQ Sa~et Comput Spsoes Use Parldng RcQmremmt Allowed COIVIIVIEttCiAL (FA = floor area) Ma~t~ Pe:+aat Minim~ OQ Ste+eet Compad Spaoa Use Parlang R~equirm~eat Atlawed Automob~7e rental 1 spaoe per SOQ sq. ft of FA plns 1 space 40 agenry per 1,000 sq. R of outdoor rental scorage auea.' Automob~7e repair 1 spaoe per 500 sq. ft of aon-servioe bay 40 FA plus 2 spaas per se:vie~ bay.• • No :sqtrined offjsuxt PiTkinb SPaoe shaU be nsed for sak. reaeat ar teptir of aaooa. 4($ (Saats 1laeiea ~A~ y.~r~.air.vo.wv ~aaia Ma~~a muau~+ya~ ~.wc ' i " Table 9 0410 08.040 (Contimned) '~ Minim~ O~ Str+at O- I Use Parlvag ReQaie+emmt ' Automob~7e service 3 spaces ~ for full servicx statioa, ~ apax station witb or without if for self suvioe statian. plus 1 spax for ' mmi•mart each 100 sq. ft of retai'I, and requu+~ments , for aatomob~e repair where applicable Automob~le sales 1 space per 400 sq. ft of floor area for sha~vroom and a~ioe, plus 1 spac~ per 2,000 sq. ft of extesior display area aad requirementc for antomob~7e r~pair wbere applicable, plus 1 space per 300 sq. ft for ffie part~ department Auto washiag (self- 2 spaoes foz each washmg stall, not includ- seivicx or ooin aperat- ing the stall. ~_--~- ed) - -- ;s~ M~ ~~ ac~ 11Zaaatnm PQ+omt Comput Spaoa Allowed 40 ^ f ' ' ~ ~~ ~ r ~F r ~ ~ ~ ~ E t t ~ ~: c: t Santa Mo~ica Maniapal Code 9.04.1Q0B210 ~ ac~rlelromd the atl~.y. The length of th~ load'aig spaoe ~ may be mema+cd perpeadiailar to or pirailel with thc alleY- Whe:+e tbe lo'diag area is parallel with ffie alie,y aad the pa:rel is 5ity feet or kss m width, the loadiag ' araa s~a1! euead acsoss the fuII ~vidt6 of the pu~x.l. The length of a~g area noed not e~oc~eed fifty feet for ~9~~ ' Psrt 9.04.1Q.10 Oa'=Str+~eet Loadiag Reqmremeats 9.04.1010A10 Pim~pose. The standards ooataiaed 'm this Part are inteaded to assure that commercial aad "mdustrial uxs, senior group housing, hotels, day caze homes, c.~uld caze oeate~rs, aad schools provide adeqnate facaities for thc pickup or delive,n- of goods aud passeagecs m a maa~er providiag ffie followia& (a) Ac~ble, at~aarve, and ~ve11-mamttamed loading and delivetq facilities. (b) Reduced poteatial for traffic oongestion and haz- ardt. (c) Protection for adjacent parcels and smtuunding neighborhoods fmm ffie effe.cts of v~hiailar noise and traffic generated from the pi+nposed nse. (d) Loadiag and delivery servioes in p:oportion to the aeeds generauct by t~e praposed use which are clear2y campatible with adjacent paitxls aad the sutr~undiag neighborhood. (Prior oode § 9045.1) 9.041010.0?A Applicabilit~.. Any use requiting the loadiag aa8 de2ivery of goods or passengers sball ptavide permancntly maiataintod off-s~eet loading and delivery fact7ities for the new or expaaded portion of the use pursuaat to the pm~visions of Lhis Part. (Prior code § 90452) 9.0410.10A30 Geaeral pro~isions. Off-s~eet fr~aght aad equipment loading spaas sball be pmvided for all offioes, hospitals, iasoitutio~, bouLs, group housing, and other oommerdal aad iadustrial uses pu~uant to the folla~ving prwisioa~ (a) Loadin8 SPaxs shall be aot ltss tLaa ten feei ia width, twenry feet m Iength, with fourteen feet of vetticai clearaac.~. (b) When the paroel upon wbich the loading sPaees are located abuts an allry, ihe loadiag spacts shaU be 4T2-1 (~ ~~e+~ Saata Moaica Municipal Code (c) Loading spuxs beiug maincained in connccdon a-i[h aay principal building in ezistencs cn du efftcove date of this Chapter shall theteafoer be maiatained w loug u the building remains. un}ess an eqnivalenc m~mber of loading spaces a~ provided on a contiguous par~el in waformiry with the requicements of this Put This subsxdon shail not ~zquire the maintenance of moce loading sp~ces for an exiscing building than a~+ee cr,quiir.d for a new buildiag. (d) AnY ~aluiied loading space may bK-locatod in the required tear yard pmvided that it is not loc~ced ia any cequiied landscaped atea and p~evided that iw poction of a sueec or atley is counted as put of die nequited louiing uea. (e) Zlu number of off-s~tet f~+eight aad equipment loading spues ~equiced sball comply with the foAowing pmvisions: . Total Grass Loadiag Spaccs Floor Ara Requiretl Commercial Buildings: 3.000 - 15.000 . . . . . . . . . . . . . . . . . . . . . . . . 1 15.001 - 45.000 . . . . . . . . . . . . . . . . . . . . . . . . 2 45.001 - ~S.U00 . . . . . . . . . . . . . . . . . . . . . . . . 3 75.001 - 105.000 . . . . . . . . . . . . . . . . . . . . . . 4 105.001 and over . . . . . . . . . . . . . . . . . . . . . . . . S Indusuial Buildings: 0 - 20.000 ........................ 1 20.001 - 40.000 ........................ 2 40.001 - 80.000 ........................ 3 80.001 - 120.OOd . . . . . . . . . . . . . . . . . . . . . . . . 4 120.001 - 160.000 . . . . . . . . . . . . . . . . . . . . . . . . 5 160.001 and over . . . . . . . . . . . . . . . . . . . . . . . . 6 Hospirals and Institurions: 3.000 - 20.000 . . . . . . . . . . . . . . . . . . . . . . . . I 20.001 - 50.000 ........................ 2 50.001 - 80.000 ........................ 3 80.001 - 110.000 ........................ 4 110.001 and over . . . . . . . . . . . . . . . . . . . . . . . . 5 Hotels and Office Buildings: 3.500 - 15.000 . . . . . . . . . . . . . . . . . . . . . . . 1 15.001 - 50.000 . . . . . . . . . . . . . . . . . . . . . . . . Z 50.001 - 100.000 . . . . . . . . . . . . . . . . . . . . . . . . 3 100.001 and over . . . . . . . . . . . . . . . . . . . . . . . . 4 Senior Group Housing (with Centtal Kitchen): 10 - 100 uniu . . . . . . . . . . . . . . . . . . . . . . . . 1 100 and over . . . . . . . . . . . . . . . . . . . . . . 2 Neighborhood Grocery Stoce . . . . . . . . . . . . . . . . . . . 1 (~ Passenger Ioading spaces shall be ptovided in addi- cion co any required freight and equipment loading spaces when requiced by this subsecdoa Passenger loading spaces shall comply with parking space siu requicemenu for swn• dard pazking spaces, shal! be located in close pmximiry to the building ennance. and shall not iequire pedesvians to cross a driveway, puking aisle. aliey, or mxt in order ta cieach the building entianco. Use 9.04.10.1d.030 Pzssenger Loading Spaces Required Smal1 Family Day Caze Home . . . . . . . . . . . . . . . . . . 0 Large Family Day Cace Home . . . . . . . . . . . . . . . . . . l Day Care Ctnter. Pte-School. Elememary Schaol (K-6): 1 - 20 childrcn . . . . . . . . . . . . . . . . . . . . . . . 1 21 - 60 ehildc~en . . . . . . . . . . . . . . . . . . . . . . . 2 61 - 300 children . . . . . . . . . . . . . . . . . . . . . . . 3 300 chiid~en and over . . . . . . . . . - • - - - . . . . . . . a Neighbofiood Gmxry Store . . . . . . . . . . . . . . . . . . . 1 The Parking and Tc~affic Engineer may au[hocize up to o~x ceyuired on-saeec passenge~ toading space atong a feontage curb for certain designaced dmes if on-sueet paric- ing spacrs an typicafly available during the ~signated umes. (g) Requiraf louiing spaces sha11 noc count as required paricing spaces. (Prior code § 9045.3) - 473 tsm Mo.o 12-9s1 Saau Monica Muaicipal Code 9.Q4.12.040 Antomob~e dealashigs. The purpose of this Secdon is to ensure that automo- bile dealerships do not c:zatc aa adverse impact on adjaxnt ~parties and sncxottadmg neigh'borhoods by reason of insufficient on-site autamer and employx pazldng, ~c generatioa, iacluding road tatorag of vehicles, obst~uction of t:affiq visual blight, bright Iights, noise, fumes, or dtaiaage nmoff The followmg special conditions shall applp to automobile dealer~6ips. (a) APPlicability. All new automob~e dealerships shall comply with the developmeat standards for the district in which it is located and ~vith this Section. E~st- ing automobile dealeiships shall be subjax to ihese standards when seeldag aay onc of the followia& (i) G~mtilativo expansion snbseq~teat to the ado~ption of the ordiaaux codified ia this C:haptet of more tbaa fifty percent of impraved squarc foocage aosdng at the time of adoption of tha ordinaax codi5ed m this C~aap- ter. (2) Aay adjacent ea~pansion of the laad area on wbich the dealership is locaud, whether by ptarhase, lease, business combinatioa or acquitiuoq or sim~lar method. (3) AaY substaatiat remodel of ffie aostmg dealetsh~. Within one year .from the adoption of the ordinaax codi5ed in t6is Chapter, e~dstia8 dealashi~ shall be subject to those provisions of this Seetioa u m hereaf- ter specifically desenbed. (b) Minim~ Lot Size. Tbe mianmum bt size shall be fifteen thousand square fe~t for new btt aeated by subdivisian or oombination afta tbe adopaon of the ordinance codified in thic Chapur. (c) Parlnng and vehide Stora~e. F~loyx and customer parldng shall be provided at no cltitge. Parlang shall comp}y with Part 9.04.10.08. Areas desiguated for employoe aad a~ao~r paz1~g shall not be used for vehicle staraae or d~splay. Rooftop starage of vehicles is permitted, aad f~t7~ peraeat af aay such space shall be counted as floot arta fat tbe pttrpos- es of oomputing floor area ratio. (d) IandscaPin~ Screenia8 ef dtsPia~' md ao~isPlaY azeaz shall comply with the grwitioat of Put 9.04.10.04. A minimunn two-foot landscape aad deoo~atme aab strip, where feasible, shaU be pmvided along tbt sueet frant- age perimetor of all vehicle display sreas Landscape materials shall be designed Lo prwide an opaque visual buffer at least twelvc iaches m height Applicable setbaclc rcquiremenu shall be expanded to require a minimum five-foot landscaped area adjacent w a~ abuttmg resi- dential dimicY. Final dcsign trcatment s~hxll be subject to review aad approva3 by the Architectural Revicw Board.. All Paz'~8 areas not used for vehicle display shall be subjed to the parldng lot screcning requirements of Part 9.04.10.04. (e) LigbtinS. All lighting shall wmply with Section 9.04.10.02.270. 9.04.I2.Q30 (~ Loadiag and Unlosding of Vehides Loading and naloadiag of vehictes is permitted onty in acoordaaoe with this sul~sxtion. The dealership operator shaU be respoauble and liable for a~ activities of a oammon carrier, opcrator, or other per~cm oontrollmg snc6load- ing or imloadiag activities w the a~t.ent aay such activi- ties violate the pravisions of this subsection. (1) Iroad'mg and imloadiag of ve~ides is limited to thc houcs of eight a.m. to fi~e p~n. Monday throagh Samrday, e~ocluding legal Lolidays. (2) Off-loading shall be oa~u or off-3ite, subjed to the apprwal of ffie GYty Parking and Traffic Fstgiaeer. I.oading aad ualoading sball not block the ingr~ or egre~ of aay prnperty. ~3) F~os~B deale~hiPs sha11, withia onc qear of the adc~ptian of the ardiaanx oodified in this Chapur, sub- mit plans to the Parking aad Traffic Engiaeer for apprav- al that satisfy the requirements of this svbsearon. (4) New autnmob~7e dealerships or ~atially remodeled dealesships shall pravide off-load"mg fac~lities on P~ti P~P~i~Y ~~- or o$-site). Sbaned loadiag aad unloading ~ities are permitted for the ptuposas of meotiag this requir~ment (g) Storage of Vehicks to Be Rep~ired. No vehieles to be repaired shall be pazked or stored on suy pablic s~eet or alley. (h) Repair of Vehicles. The repair and service faalit~- pc~raan of ari automob~e deale~g ~hall camgtp wiffi the provisions of SetYioa 9.04.14.050. (~ Qn~g of Vehides. An ad~quat~ on~ite qnarim~g area for servioe automers shall be pr+ovidod. On~tte driveways may be used for queuiag but may not iaterfe~e ~vith aeo~ss to required Parlang spaocs. Required Pffilan8 spaces may aot double as queuing spaoes. (j) Test Drning. Test ~riving shall not be done oa raidential streets or aIlrys. Far the purposes of this subse~tion, meets wbich are desi~ated by the CYty aa major collector sdreett shall be permisable at+eas for test driving. Each dealecship operator sball hav~e aa affama- tive obligation to iafo:m all its pcrsonnel of tb~is i~eq~a ment and to ensure compliaaa with it F~dsCmg dealer- ships shall, within one year of the adoption of the ordi- nance codified in this Chapter, submit plans w the Pad~ ing and Traffic Engiaeer for apprwal tbat satisty the requfrements of this subsection. (k) Contr+nl ot Atley TYaffic. Notwithstaadmg tlte probubition of alley use for test driviag, each deale~hi~ operator shall present to the Parlaag aad Tra~c Eng~- neer, ooincidcnt with the application for a permit ~or a ncw dcalership or snbstanrial remodelim& Withia one ycar of the adoprion of the ordinance oodified 'm this Chapter, e~dsdng dealerships shall preseat plaas ~or slvwiag traffic flow ia alleys adjaceat to their u.ses, ~vith the objec~ve of minimiang, dange~ to pedestcians aad neighboring vehicle operations, and of miaimiziag noise and oiher enviroamental iaausions mto the neighbor- hood Such plans shall be daigned to 1'amit the ma~dmum spxd to fifteen aules per hour and may inch~de mes- sures such as speed bumps or dips, oae-way traffic pat 477 (5ma ~eaeiea 7~ 9.04.12040 Saa~ M~~ Mnmicipal Code ter~s, ina+eased signage, Parbag and loading Pm~ubitions and s~7ar measures. (1) t~lation. The location of ent~ies and e~ frora deale~hips shalt be locaud as far away fmm ad'acent residtntial properties as is reasanab}y feaable ancl sball a vap be ditzcted to commercial s~rets and aovap fxom rarden- tial areas by means of si~age aad daign. The intaior circulation sysum batween kve~s shaU be iateraal to the b~uldimg and shail not require use of public ~vays or of eaternalty visble or unoovered ramps, driveways or padc- ing areaz. No anaagement shall be permitted wbich requires vehicles to back into an alley or other public ~Y• . (m) Noise ControL (1) There shall be no outdoor loudspeal~ers Interior louds~xalcers shall producx no more than forty-five dba at a boundary abutting or adjaoent to a resideatial ~arcel, under normal operating oonditions (e.g., with wiadows open if they are L'lcely to be opened). (2) All noise generating equipmeat a~sed to the exterior shall be muffied with sotmd absorbing materials to miaimize noise impacts on adjaoent propeities aad shaIl not be operated before eight am. or after sa p.m. if reasonably likelp to catue a~oyana to abuitmg or adjacent residenoes. (3) Rooftop storage areas shall be scrxned with landscapiag and noise absorbiag matexials w minimizc noise impacts on adjacent groperties. (4) F~stiag dealerships shall oomptq with the provi- sions of this subsection withia sa months after the ddop- tion of the ordinance codified ia this Chapter. (n) Tmdc Storage and DisposaL (1) Cmtoline storage tanl6 sball be oonsttvcted and maintaiaed under tho same conditions and staadards that apply foz seivice stations. (2) There shall be full compliance with the te:ms and oonditions of all City laws nlatiag to the storage and disposal of to~dc chemicals and hazardous w~tes. (o) Aii' QaalitY- (1) Use of brake washers shall be requited 'm service s~alls or areas which perform servicc on bcalces employiag asbestos or other maurials lmown to be barmful ~vhtn dispersed ia the aa. (2) All mechanical venn7atmg equipment shall be directed to wp story exhaust vents which fax away from abuttiag or adjacent residential properdes. (3) F~haust systems shall be equipped with appropri- ate aad reasonably available oontrol techaology to mini- miu or eliminate naodous pollutaats ~vbich would other- avise be emitted (p) Mod'~'i~on of De~dopment Stsndscds. Dev~edop- ment standards for the particnlar dist~ict in wbich a development is located are modified and supeiseded by the follawing. (1) There sball be no windows or other openmgs ia walls facing abutting or adjacxnt residential districtt, c~ooept for emergenry-only pedestrian p~iu if requirod bq the Bwlding and Safety Division and for del'nrery ;acili- ties. (Z) When only one level of activiry area is located below grade and it is dedicdted m nses typicalty iacluded m FAR calailations if located abov~e gcade level, the azea s~hall not be mciuded ia FAR caic~elatioas to the extent that there it a substituted usage abvve the fi~t floor which would not be inciuded 'm FAR calciilations if located below grade. If servia stal)s aze located below grade, but an equivalent square footage abo~ve ihe firat floor is dedicated to parldng (which ~vould not be oo~mt- ed in FAR if beluw grad~~ cmly the above-grade aquare footage is to be iacluded 'an FAR calciilatioas. Only oae Ievel of acrivity a:+ea shall be subject to this aremption. (c~ Ho~s of Operation. Unless other~vise apprvve~ by the Plaaaing Commission on appeal, if the deale~hip is withm one huadred fe~t of a residential dist~ict, opera- tioa of the dtalership shall be prohbited between the ho~s of ten p.m. and sevan a.m. (Prior oode § 9050.4; ameaded by Ord. No. 18Q3CCS $ 11, adopted 523/9~ ;s~ea Ntooia 7-9~ 478 9.04.14.050 Saata Monica Maaicipal Code 9.0414.060 Antomob~e de~lersWps. The pn.tpose of thc Secc~on is to easure that antomo- bile dealeiships do not czoate an adverse ~pact oa adja- xnt properties and surroimding aeighborhoods byreason of insuScient on-site ca~stonner and employee pazlong ~affic generation, including mad testing of vebicles, obs~uction of uaffic, visual blight, bright lights, aoise, fumes, or draiaage ruao~ The following special ooadi- tions shall appYy to automobile dealetships: (a) Applicab~ity. All ncw automobile d~alerships shall eomply with the pmperty d~lopmeat staadatds for the district ia which it is located and with this Sedioa. Eus~ng automobik dealetships sball comply with ffiis Section wh~n seeldag a~r of thc followin~ (1) C~mulative expan.aon of morc thaa fifty perxnt of improved square footage ~sting at tha time of adop- tion of the ordinance c~odified ia this Chapter. (2) Any adjacent ~pansion of the ]aad area on wiuch the dealeiship is lor.ated, arhether by purchase, lease, business combinauon or acquisition, or siau7ar method. (3) Any substantial nmodel of the eaatting dealer- ship. Withia one year 5rom the adoption of the ordimanae codified in this Chaptcr, eaosting au~omobile dtaieiships shall be subject to those provisions of t6is Section as are hereafter specificaUy descn'bed. (b) Minimnm Loi Siu. The muumum lot size shall he fifteen thousand square feet for new lots created by subdivision or combination after the adoption of the ordinance codified in this Chapter. (c) Parking and Y~hicle Storage. Employa and eus- tomer pazking sball be provided at no charge. Par]cmg shall comply with Part 9.04.10.08. Areas designated for employee and customer pazldng shall not be used for vehicle storage or display. Rooftop storage of vehic,ks is pecmitted, and fifcy perxnt of amy such spac~e sball be counted as floor area for the putposes of ooaaputing floor azea ratio. Santa Mouim 5-00) 488-2 Saata Monux Mtmircipal Gode (d) L~adscaPm& ~a~unm8 of disPla7 aad nam-~Y areas shall oomplq ~viih the provi.tions of Part 9.04.10.04. A mmim~ tWO-foot landscape and deoorative c~sb strip, where feasi'ble, shall be proaided aloag the street fr~nt- age perimeter of aIl vebicle display azeas. Iandscape materiaLs shall be designed w prvvide an opaquo visual buffer at least twelve iaches ia height Applicable setback reqcurements shall be e~anded to require a minimum fivafoot Iandscaped area adjaant to siry abutting resi- dential districC Final design tr~camaent shall be subject to review aad appzo~val iry the Architecxural Review Board. All Paz'lan8 areas not used for automob~le display shail be subject to the pazldng lotscreeningreguircments of Part 9.04.10.04. (e) Iaghting• All lightin8 shall oomply with Section 9.04.10.02270. ( fl Loading and Unloading of Ve6ida. Loading and unloading of vehicles is permitted oniy m aooordance with this subsection. The deale~hip operator shall be respons~ble and liablc for any activities of a cammon carrier, operator, or other persan controlling such load- ing or ualoadiag ac`xivities to the cuent a~ such activi- t~iies viotate the provisions of this subsection. es (1) Load'mg and unloadiag of vehicles is limited to ffie hours of eight a~a. to fm p.m. Monday through Sattu~day, excluding legal holidays. _ (2) Off-loading shall be on-site or off-site, snbje~t w the approval of ihe Qiry Parlong and Traffic Engiaeer. Loadmg and unlosding shall not block the ingress or egress of aary adjacent pmperty. (3) F~sting dealerships sball, withm one year of the adoption of the ord'mance codified 'm this C~apter, sub- mit plans to the City Pazldng and Traffic Engineer for approval that satisfy the reqttaements of tbis snbsectioa. (4) Ncw automob~le dealeiships or substaatially re- modeled dealershi~s shall prwide off-loadiag taa7ities on private property (on- or off-site). Shared load"mg and unloadiag facilities are perautted for the piuposes of meeting this requizement (g) Stosage of Veiucles to Be Repaaed. No vehicles to be repaired shall be parked or stored on azry public street or alley. (h) Repair o! Vehicles. The repair and servix faa7ity pcntion of an automob~e deale~hip shaIl comply with the provisions of Secxion 9.U4.14.050. (i) Qneaing of Vehides. Au adequate on-site queum8 area for servix customers shall be provided. On-site driveways may be ~sed for queuing, but may not interfere with aocess to required P~~B SP~t ~4~~ Paz~B spaces may not double as queaing spaoes. (j) Test Driving. Test driving shall not be done on residential streets or alleys. For the purposes of this subsc.ction, streets which are desi~ated by the Gty as major collector stireetc sball be permissible areas for test driving Fach dealersbip operator shall have an affirma- tive obligation to infrnm all its pecsonnel of this require- ment and to ensure oomplianoe with it F~sting dealer- ships shall, within one year of the adoption of the ordi- nance oodified in thi~ C~a~ter, submit plaas to the Ckty 9.04.14.060 Parhng and T:affic Engineer for appro~wdl to satidy ihe requiremems of this subsecaoa (k) Control of Allry 1Ys~c. Notwithstandmg the pr~nbtbitioa of alley use for test driving, each dealership opetator shall present to the City Pazlong and Tsa~c Engineer, caiaadent with the application for a pcrmit for new dealerships or substantial remodeliag, aad withia one year of the adoption of the ordinance aodified ia this Cbapur for eAS~ag dealerships, a plaa for slo~wing tta~c ~aw ia alleys adjaoent to their uscs, with the objective of minimiung dangers to peda~rians and neighboring vehi- cle operations, aad of miaimiziag noise and other eavi- ranimeatal iacausions iato the neighborhood. Such plans shall be designed W limit maximum speed to fift~en au7es per hour and may include measures such as speed bumps or dips, one•wa7 vaa~c Pattcrns, incneased sigaage, Park- iag and loading proh~bitions and similar m~asures. (I) Circalation. ~c locatioa of en~ies and e~dts from automob~e dealersh~s sball be located as far away from adjaceat residential properties as is reasonabty feastble and shall be directed to commcrr~al ~ and away from resident~al ar+eas by means of si~age and design. The interior cir~tilation system between levels s~all be iaternal to the buildiag and shall not nquire use of public ways or of e~ternally visible or unewered ramps, drivewaps or parlcing areas, No arrdngement shall be peimitted which requires vehicles to back mto an alley ar other public way. (m) Noise Conh~L {1) 'I'tie:re s6all be ao outdoar loud spealcess. Inurior loudspeakeis shall produce no more than forty five dba at a boundary abutting or adjacxnt to a resideatiai pazxl uader normal operating oonditions (e.g., wiih windaws open if tha}r aro L7cely to be opened). (2) All noise-generatiag equipment exposed to the exterior shall be mu$ted aith soimd absorbaig materials to miaimize noise impacts on adjaxnt propcrdes amd s~all not be operated before eig6t a.m. or after s~ p.m. if reasonably l~cely W cause aancypanoe to abattiag or adjacent residenxs. ' ~3) RooftoP stora8e areas sball be scrxned with laadscapmg and noise absorbmg maurials to minimiu noise impaets on adjaoent properties. (4) E~oisting dealerships shall oomply with the provi- sons of this subsection within s6~ months afur the adop- tion of the ordinana oodified 'm this CSagter. (n) Taadc Storage and Disposal. (1) Gasoline storagc tanla shaU be cansoructed and maintained under the same oonditioas aad staadards that aPP~Y for service stations. (2) There shall be full c,ompliance with the terms and oonditions of all CYry laws relatimg to the storage and disposal of taodc chemic~l.c and hazardous wastes. (o} Air Quality. Use of br~ke wazheis shall be ro- qu~ed ia se~vice stalls or areas which calculahons if located above grade level, thc area shall not be included in FAR calc~ilations to ffie extent that ffiere is a substi- tuted "~e aba~ve the fnst floor which a~ould aot be inciuded 'm FAR calexilations if locaud belaw grade. If se:vice stalls are located below gracle, but aa equivalent 489 ~s.o~ M~ ~~ ~ ~ ~ , ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 9.04.14.060 Santa Moaica Mimidpal Cade square footage abo~ve the 5rst floor is dedicated to pazk iag (whic,~ w~onld not be oouatod 'm FAR if belo~v grade), ; only the abov~e-grade square footage is to be mcluded ia : FAR calculations. Only one leael of activity urz sbaII be ~ subject to tbis aoemption. (Prior oode § 9aS5.6; amended by Ord No. 1803CCS § 14, adopud SR3/95) (Sann Mooin ~-95) 490 9.04.16.02010 Saata Momica Mtmicipal Code Snbchapter 9.0418 Nonoonforming Bnildiags aad Usas 9.04.I8.010 Parposc. (a) This Subchapter provides for the oiderty tetmina- rion of nonoonforming bwldiags and uses in order to promot~ the public health, safety, aad general welfare and to bring such bu~ldings and uses into oonformity with the goaLs, objectives, and policies of the G~aeral Plan. (b) This Subchapter limits the a~pan.aon of nonaon- forming uses and bw7ding5, attablishes the car~mstanoes under which thry may be oontimued, and provides for the correcaon or removal of such uses aad btu'ldings. (c) Nonoonforming uses withm the C~ty are detri- mental to the order2y dev~elopment of the C~ty and are deuffiental to the health, safety, peacx, oomfort, and u general aelfare of persons and property withia the Chy. (d) Nonconforming uus shall be el~inaud as rapid- ly as poss~ble ~vithout infringiag upon ffie aonstitutional righu of the owae:s of nonconforming properties. (Prior code § 9080.1) 9.04.18.O1A I.egal, nonconforming bn~dings. A legal, nonconformiag bn~ding is a soructure which lawfulty e~dsted on the effec~ve date of this Chapter but which does not oompty with one or mor~ of the prop~fty development staadards for the dis~ict in which it u locat- ed. A]cgal, aoncoaformmg bu~ding may be maintaiaed as follows: (a) Repairs and Altera6oas. (1) Repairs and alurations may be made to noncon- forming residential btu~ding~ m Rl aad mWtifamity districts. (2) Repaas and aherations may be made to noncon- formiag coanmercial or indus~ial buildiags pravided tbere is no e~ansion or incaease in the square footage of the e~stiag bw7ding. (3) Changes to iaterior partitions or other nons~ t~ual impravemeats and repaus may be made to a non- ooaforming oommesrial or iadustrial bu~ldiag bnt tt~e oost of improvement and repair ahall not e~ooeed on~hatf the replaeemeat cost of the nonconforming bm7diag over aay five-year period. (4) The replacement oost sball be determia~d at the ~me of building permit application by the Bnilding O~i- cer, whose decision may be appealed to the Bwlding aad Safety Commission. (b) Addi6ons aad Enlsrgemmts. Aa additiion to or entazgement of a nonoonformiag bulding shall be per- mitted if the addition or enlargemeat is made to oonform to atl the reguiatioas of the distcict m wbich it is located, e~oxpt tha~ (1) q buildiag aot ooaformiag as to height r~egula- tions may be added to or enlazged, Provided such addi- tion or enlazgement aanforms to atl of the regulations of the dittrict m which it is located, iaciuding the total floor ac+ea permitted on the paroeL (2) A residential bmldiag lacking sttSuaent parkmg SPaoe ~ac required bY Part 9.04.10.08 may be added w or ~ Provided additional Parlaa8 SPacxs are saPPlied to meet the requiremeats of Part 9.04.10.08 for the new additioa. Additional parldag ~hall be requaed for the addition of bedrooms. (3) A c~ommercial or indusCrial bu7ding lacldag suffi- cient Parldng sPaas as requited by Part 9.04.10.08 may be added to or ealarged provided tbat additional patlong spaxs are supplied w meet the requirements of Part 9.04.10.08 for thc addition or anlargement, and pmviided that no siagle or cumulative addition or enlargemeat ac ceeds twenty-five percent of the floor area of the bu~7d'mg eAStiag on the effective date of th~ ordinanx ood'died in this Chapter. (4) A oommet+cial or indus~ia! bwlding lacadag sttffi- cieat parldng spaxs as requitr,d by Part 9.04.10.08 may be added to or enlarged beq~ond 259'0 of the floor ar~ea of the bw7ding e~sting on the effective datc of the ordi- nance codified in this Chapter, provided additioaal pask ing spaoes are supplied to meet the requirements of Part 9.04.10.08 for tho floor area of the entire bulding. (c) Replscing Nonoonforming Festnres or Poitions of Bn7dings. Nonoonforming feat~aes or pordons of bwld'mgs that are remaved shall not be ieplaced unless they wnform to the provi.aons of this Chapter. Nolwith- standing this nquirement, nonconforming arc:hitechaal featurrs whicb have been rcmoved from aaY ~8 building which is desigaaud as a C~ty of Saata Monica laadmazk, or Iistcd on either the California Re~ster of Historical Resourr.es or the National Register of Histotic Plaxs may be rcplaced if the Iaadmarl~s Ca~mmission deurmines tbat such feature contnbutes to the btu7diag's historic architectural mugrity and that the r:consoruc~iam canforms w tho Secretary of Iaterior's Staadards fvr Rehab~7itatian. Landmarla Commission nviea of svch zeeoastruction s6a11 be prooessed generally in acoocdaaoe with thc pincxdures for pmoessing applicadons for Cer- tificates of Appropriateness oontaiaed 'm Santa Moni~a Municipal Code Sectioa 936.170. Auy projed subject to Landmazla Commission review nnder this subsec~on s6a11 not require additional review by the Architecttnal (Saata Monin 2-98) 494 Saata Moaica M~ Ood~ 9.04.18.020 ~ Review Board. The ~ determiaation of the Landimarl~ ~ , Comnnission under ffiis Section sball be appealable to the C~ty Coun.a7. (d) Mming. No nonoonformiag bu~7diag ahat[ be ~ moved ia whole or ia part to azry other location cm ttze pai+cel ~mless every porCio~ of the bn~7ding is made to oonform to all of the ngulatiams of the dtismct ia which ' it is lo~ud. ~ (e) Restoring. A nonoonformiag bulding which is damaged or dastrcry~ed w aa aaDent of less tt~an oaahalf of its neplac~neat cost immediatelyprior to such damage may be c~esto:r.d to itt oti,gimat oondition onty if the resto- ~ ration is oommenced witbia one year of the date th~ damage oa~rs and is d~igCntly ca~mpletad. - (fl Beba~d'm& A aonoonfolming bu~ding which is ~ dataaged or destroy~ed ta aa a~eat of onabalf or mora of its replacemeat cost immediately-pn~u~r to such damage may not ba restorrd to its aonoomformiag ooaditio~ bnt mnst be mada to oomfosm to the provisions of tbis C~ap- ' ter. A daignated landmaz]c soruemre or hi~oric,ally significant buildiag ideaffied in th~ Historic Reso~ntes Siavey as a category 1 t}uough 5 structure wbich is dam- agetl or destrayed may be rebwlt if the bw7diag is rebwlt , to its aquarc footage, ste orientation and height and ~ setbaclQ that e~ted prior to the destrnction. (Prior code § 90802; amended by Ord. No. 1645CCS § 4, adoPted 9R2A2; Ord. No. 1889CCS, adopted 10/7,8,19'!j ' ~ ~ ' ' . 1", ~ ~~ ~. 494-1 ~ (S~aes idomra y9~ ~ Saata Mamica Muaici}~al Code 9.0418.Q30 I.egai, nonwnformmg nses. ~ A legal aonconforming . use is a nse wb~ich IawEulty e~asted cm the effective dau of the ordmanx c~odified m this Chapter but which is either: (a) not aaw permitted in the district in which it is located; or (b) now permitted by a performance standards permit, use pcrmit or oondi- tiamal use permit but no such peimits bave been ob- tainod. A legal, nancaaformmg use sball comply~vith tbe follawing provisions: (a) (~ange of OwaersLip. A change of ownership, tenancy, or management of a nonoonforming use shall not affect its status as a legal, nonconformiag use. (b) Abandonment If a legal, nonoonforming use oeases opention for a continuous periai of one year or more, that use shall lose its legal, nonconforming status, aad the premises on which the noaoo~armiag use taok placx shall from then on be used for oonformiag uses only. Uses in a bw7ding undergoing =estoration or rcoon- salu~on sball be a~empt from tbis requa~ment pmvided the provisions of Section 9.04.18.020(e) are compIied with. Us~s discontinued due to aa aex of nattu+e shall be exem~pt from this nquirement provided ra~onstrucaon of the bwldiag is oommenced withm one year of the date the damage occurs aad is d~igentiy completed (c) Coavecsion to Conforming Use. If a noncanform- ing use is coavertcd to a caaforming use, the noncan- forming use may not be resumed. (d) ~pansion of Nonoonforming Use. A nancon- formmg use of a building or portion of a bulding ihat oonforms to the development staadards of this Chapur shall neither be a~anded iato aay otber pordon of the bu~diag nor changed exapt to a conforming usc. The nonconfoiming use of land shall not be e~panded or eatended in area (e) Inteasification of Uses. A noneanformiag use shall not be permitted to change in mode or character of operation. A change m mode or character sball indude, but not be limited to, extended hou~ of operation, su~ stantial remodelmg, or a changc in number of seats or the aervioe area floor spacx for bars aad re~naatt. (Prior oode § 90803; amended by Ord. No. 17320CS $ 4, adopted 3B/94; Ord. No. 19110C5 § 1, adapted 5/19J98) 9.041&040 Tecminadon of noncontorming bnildings and nses. Noaoonforming oa~al or mdustrial bu~ldings and uses ia tbe Rl, RZ, R2R, R3, R4, RV~ OP-1, OP-2, OP-3, OP~ and OP-Du~lac Distrias s6all be discontin- ued and ramwed or alteied to aouform to the prwisions of this Cbapter within t6e follawiag time limitx from the effective dau of tbe o~+d~ance oodified m ihis C'~apur: (a) A nonoonformiag use which does not occupy a strucxure, other thaa those uses listed below: one year. (b) All buildings on the property used as a pazt of a busiaess conducted on the property, eaoept as prwided below: t~enty yea~. This subsection does not requae the remaval of nonconfoiming bulclimgs if the usc oxupying the building is authorized ia ffic zoaiag districx or averlay dis~ict in which tbe bnild'mg is located, ~iiher as a per- 9.04.18.030 anitted use, a aonditionally permitted use, a use subject to a peifo:mance standards permit, or a use subject W a u5e peimiL (c) Vehicle sales, secvioe, storage and repair buildimgs aad uses shall be pcrmitted to remain provided: (1) The vehicle sales, service, repair and storage bw'ldings are not e~panded as provided in Secdon 9.04.18.020 and ihe use is not intensified as provided in Sec~on 9.04.18.U30. (2) The commercial parcel supported by the vehicle sales, service, repair and storage buildings is not redevel- oped for another usc. (d) Automob~e storage lots which are used for short or long term pazldag of vehicles for sale or lea~e at an off-site or on-siu automobile dealership or for service or repair at an on-site automobile dealeisbip shall be per- mitttd to remaia provided: (1) T3e automobile storage lot is not expanded or ~8~- (2) The oommen~al paroel sup~ported by tht automo- b~1e storage lot is not redeveloped for another use. (e) Pazlang lots on residential zoned parcels shall be penmitted to remain pravided: (1) The commercial parcel supported by the residen- tial pazldag lot is not redeveloped for another use. (2) The lot nmains as a surface Ievtl parlaag lot (3) The ace or uses e~istmg on the oommercial parcel snpported by the residential pazlaag lot do not change. For purposes of this requinemeat, a change of use shall be defined as aDy new use whieh requires marc iaunx parlvag standards thaa e~osts on the effec~ve date of the ordinance oodified in this Chapur. (4) The square footage of the eaisting commerciai building on the commercial parcel is nat added to or enlargal beyond fifry peroent of the floor area e~dsting oa the effecrive dau of said Chapter. ~5~ Th~ n9uired PaTlrmg for any new addition or ~on under f~ty percont is not located on tho resi- dentially zoned parkmg loL A parking lot on a nsidea- tially zoned pa~eel sLall rev~rt to :r.sidential use ~vhen one or more of the above oonditions are not met (~ FAStiaB oommerdal or iadvstrial uses in r~esiden- tial tlis~icts with valid conditional use permits that do not ooniam time limits, e~ooept as otherwiso provided im this Secdon: five years. TLe Plann~g Commi,ssion aiay extend the five-y~eas period, bnt m no case more tban tea years, prc~vided the applicant demams~ates tbat e~ooeptionai aratmstaaas preaeuted ihe teimination of the use. A public hearing shall be oonducted in aooordance with the pnyvi4ans for conditional use permitc in Part 9.0420.22 (g) F~xisting ganeral officx, medic,al offioe aad neigh- borlnood-serving buildings aad nses in e~osteaoe as of 1982 shall be allowed to nmam provided the building is not expanded as provided in S~ction 9.04.18.020 and the nse is not mtensified as provided m Sectioa 9.04,18.030. (h) Notwithstand'mg any other provision of this Sec- tion, if a canditional use pcrmit for an e~stiag cammer- cial or iadumial use ia a residential dittrict ~ a~c time period that such oonditional use termmaates, the use 495 ts~ M~ sAt> t ~' 1 ' ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 9.04.18.040 Saata Mcmica Mimidr~at Code shall terminate pucsvant to the permit and not this Seo- tion. ~(Prior oode § 9080.4; am~nded by Ord No. 1832CC5 § 2, adopted 11R8/95; Ord No.1911CXS § 2, adopted 5/19/98) 9.0418A50 Pablic ntility eueptions. Nothing ooasamed 'm thiS subchapur shall be con- strued or implied so as to require the removal of govem- mental or public u~iry buldings, s~ucau~s, equipment, or facilities pravided that there is not a change of use nor enlatgement of the land area devoted to the nse. (Prior oode § 9080~ 9.0418.060 Bwldiag permits or oertifintes of ~P~~9 ProW'bited. When a~ nonoonforming buildiag or use is required to be eliminazed purs~aat w tho provisions of tbis Sub- chapter, no building permit or oerd£icate of oaupaacy shall thereafter be iss~ud for further contiauan~x, atoer- arion, or e~paasion of thenoaoonformiagbw7diagor use. The issuaace of the permit or certi5r,~te in eaar sball not be construed w allaw the oontiauation of the non- oonfoiming building or use: (Prior oode § 9080.~ 9.04.18.070 Remuval of illegal nonoonformiag bnildings and nses. Nothing contained 'm this snbchapter s~hall be coa- strued or implied so as to allow for the cantiauation of illegal nonoonformiag build'mgs and uses. These uses shall be removed immediately upon notification the Zoning Admmic~awr. (Prior oode § 9080.~ 9.a4.18.080 Continnation of nonconforming ases. No person shall oxupy any nonconformmg buildiag and no person shall continne any nonoonforming use euept as prwided for ia this subcbapter. (Prior oode § 9080.8) cs~ ~ ~9s) 496 Saata Moaica Mtimicipal Code 9.04.20.06 QSO ` Part 9.0420.0~ Pertormsnce Standsrds Permit 9.04?A.08.010 Parposa - The Performancx Standards Permit is iaunded to allc~w oertaia nses to be established 'm pardc,ular aieas if ' ~5' ~P~Y with the speci5~c criteria aad staadards cstablished 'm Pazt 9.U4.12 The Performanoe Standasds Permit pravides for aa admmis~ative reviea and assess- ~ ment of the proposed developmeat project ion light of ~P~ P~~ax standards ahich have be~n desigaed w ensure that the completed pr~ject w~11 be ia hatmcmp with e~asting or poteatial uses ia ffie surronadiag area, ~ vonsistent with the goals, objectives, and policies of the General Plaa. (Prior oode § 9112.1) 9.04.?A.OS.O1A Permit reqaired. ~ A Performaact Staadards Permit apprtoved by the Zoniag Adminisaatar sl~all be zequired for all appliaable uses listed in ihis C~apter and shall be i~sved prior to the ~ issvaaoe of a~ Bwldiag Permit for, or oommenoement of, th~ us~. A public heazmg shall not tx required for issvance of a Performaace Standards Permit Applica- tions for a Performancx Standards Permit sbaII be so- ~ caued aad filled with the Ciry Planning Division pu:suaat to Part 9.04?A.20, Sectio~ 9.042QZ0.010 dmough 9.04.Z020.060. (Psior aode § 91122) 9.0420.08.030 Fmdings. ~ The Zoniag Admiaistrator ar Planamg Commission on appeal, shall issue a Perfoimanx Staadards Permit , 499 (sffi M~ ~~ 9.04.20.08.030 Santa Moaica Municipal Code if the follawing 8nding~ can be made in an a~mative manner. . (a) The proposed us~ is listad as a nse permitted puisuant to performance standards in this Cbapter. (b) The proposed use conforms prerise}y to the per- formance standards for the proposed use as outlined 'm Subchapur 9.04.12 (c) The pbysical location or placemeat of the use: on the site is compatible with and relates harmoniously w ihe surrouadiag neighborhood. The Zonmg Admiais~awr shall prepare a.~vrimcn decision which sball contaia the fiad'mgs of fact upon which such decasion is based The decasion shall be mailed to the appIicant aad to properry awaers aad resi- dents of parcels adjacent to the parcel for which a Per- formance Standards Permit is requested.. Copies of the decision shall also b~ provided to thc Plaaaiag Commis- sion. (Prior code § 91123) 9.04.20.08.040 Term of permit T3e Performance Standards Permit shall atpite if tbe righu granted are not exerdsed within the period estab- lished by the Zonmg Admiaistrator or Planniag Com:nis• sion on appeal as a condition of graating the permit, or, in the absence of such establithed time period, either within one year, or if located in the Coastal Zone, eigh- teen months, from the effective dau of permit approvaL. However, if the petmit is for affordable bor~ or a mn~ed use project wherc housing uaits oomprise at least seventy-five pcrcent of the floor area of the project (oollecriv~ly "housing Project"), aad tbe housmg prejax has received City. State or Fedeial fuadiag or is oom- prised of uaiu at least fifty perxnt of wluch aze deed- restricted to bo affordabla to Ivw incom~ households and the remainder of which are deed-restricted to be afford- able to low or moderate income households, ia the ab- sence of a time period established by the Zoaiag Actmia- isuator or Planning ~'~+**+*++~~on on appeal as a oondition of granting the permit, the Performance Standards Per- mit shall cxpirc if the righu granted are not e~erased within three years, or if located ia the Coastal Zone, three and one-half years from the effective date of per- mit approval. (a) ~enise oiRights. "Exercise of rigbts" shall mean actual commencement of the use granted by the permit, unless the permit is granted in conjunction with appro~vat of new consuuction. If the Performance Standards Permit is granted in conjuaction with apgraval of new oonstruction, issvanoe of a building permit shall o~nstituu e~ercise of rights under the Performaaoe StandatcLs Petmi~ prnvided, however, that, unless otherwise specified as a oondition of projecc appraval, the Performance 5taadazds Permit shall ezpire if: (1) The building permit eapirer or (2) The rights granted uader thc Ptrformanoe Stan- dards Permit are not exer~ised within one year following the earliest to occur of the followia~ issuaax of a Cer- tificat~ of Occupaacy; or if no Certificate of Oocupaney is required, the last required 5aa1 iaspection for the aew construction. (b) F.~tension If the applicant Sles an eueosion request with the Zoning Admmisflrator in wtitiag p~rior to acpirauon of the petmit~, the Zoning AdminisCrator may administrativety g~rant one scc-moath a~ensioa of the term of the Performance Standards Pe:mit, or if the Prolect includes residential ases. a one-y~car G~oeation of the tesm of the Performaax Staadards Permit, (Prior oode § 91124; amended bq Ord. No. 1798CC5 § I, adopted 4l25/95) . 9.04.7A.08.050 Re~ocation. The Zoniag Administrator may, or upon direction from the Planamg Cammission, revoke a~- approved Performance Staadazds Permit m aaoordana with the folloain8 P~ (a) A rev~catioa bearing shatl be beld by th~ ?.oniag Admiaisorator. Notix of the hearmg shali be published onoc ia a newspaper ef general circulation witt~ the (~ty aad sball be served either m person or by registered ma~ on the owaer of the property and on the pecmit holdar at least Len days prior to s~tch heaziag. The ~tiae of heating shall oontaia a stattmeat of the speafic i+ea- sons for revocation. (b) After th~ heariag, a Performanx Standards Permit may be rev~oked by the Z.cniag Adminisorator, or by the Planniag Commisrion on appeal or reviaa- if aa oae of the follawiag fmdiags are made: (1) That the Performauoe Standazds Permit was obtained by misrepresentation or fraud. (2) That the use for which the Performanx Staa- dards Permit was granted hac oeased or has been sus- pended for sQ or more consecutive calendar montbs. (3) That thc coaditions of thc permit hav~ not beea mai, or the permit granted is being or bas reoently been exerciscd oonuary to the terms of the approval or in violation of a specafic statute, ordiaanoe, law or regala tion. (c) Awritten determiaation of ~tion of a Perfor- mance Staadards Permit shall be mailed to the ~properiy owner and the petmit holder within un days of sueh- determinatian. (Prior oode § 9112 5~ 9.04.?A.08.060 APPeals- ~Y P~~ ~Y aPP~~ the appro~vaI, oonditioat of approval, denial, or revocation of a Performanx Staa- dards Permit to the Planning Commission if fled witbin fourteen oonsecutive calendar days of the dau the deci- sion is made in the manner provided ia Part 9.04?A.?a, Sectio~ 9.04.?A24.020 through 9.0420.24.040.. (Prioi' code § 91126) ~s~ M~ ~-~ S00 9.04.20.i1.Q50 Santa Monica Mnnicipai Code Fart 9 04.ZO.1Z Con~ii~onal Use Permits 9 04.20.12.010 Pnrposa A Conditioaal Use Permit is inteaded to allvw ffie establishment of ffiose nses which have some spec~al impact or uniquenest such that their a$cct on the sur- roundiag envimnmeat ca~ot be date:miaed in advance of the u5e beiag pmposed for a parac,ulat Iocation. The permit application procx.s,s allows for the review of the locatioa of the proposed use, design, oonfi8uratioa of i~nprovements, aad pountial impact on the sunrnuading area from proposed use, the ~ralnation and of the nse based on fio~ed aad established standa~s. All p~operty o~waers and tenaats within five huadred feet are notified aad a heariag is oonducted•before ffie Planniag Commis- sion. The nviea shall detetmiae whather thc proposed use should be P~~ b9'~8~8 the public ae.ed for (santa Ido~ 9-9s) 504 Santa Moaira Muaidpal Code and beaefit to be derived from the nse agaiast aay ad- verse ffipact it anay cause. (Prior aode § 9114.1) 9.04.Z0.12.0?A Applintion. Applieation for a Conditioaal Use Permit shall be filed in a maaaer oonsisteat with the requaements caa- taiacd m Part 9.042020, Sections 9.04.20.20.010 through 9.0420.20.060. (Prior oode § 91142) 9.04.?A.12A30 Hearing aad notioe. Upon reoeipt ia proper form of a Coaditianal Use Permit applicatian, a public heazing before the Plaaamg Commission sbalt be set and notioe of such hearing g~iven in a manner oonsisteat ~vith Part 9.0420.22, Se~tions 9.0420.22.010 tbmugh 9.04.2022.140. (Prior oode § 91143) 9.04.T.0.12.040 ~5ndings. - Follaaiag a review of the applicatioa aad pnblic heaziag, thc Planniag Commission shall prepare a writ~en decision which sball coatam the fmd'm&s of fact upon wbich such decision is based. The Planamg Caanmisnon or City Cound on appeal, may apprwe a Coadi~al Use Permit application m whole or m part, with er with- out oonditions, if all of the folloaving findings of facx can be made ia aa affirmative manner: (a) The pr+oposed usc is one ooaditionally permitted with'ra the subject dis~ict and oomplies with all of the applicable provisions of this C',hapter. (b) The proposed use would not impair ffie integrity and character of the district in which it is to be estab- lished or located. (c) Thc subject parxl is p~yscalty suitablc for tha type of land use being proposed (d) The proposed use is oompatible with a~r of the land uses preseatly on the subject pazoel if the preseat land uses are to nmaia. (e) The proposed use would be oompatible with eAS~iag aad permis~ble land uses withia the district and the general area ia which the pioposed nse is to be locat- ed. . ( fl There are adequate pravisions for water, sanita- tion, and public ut~7ities and servias to ensure tbat the proposed use ~vould not be deuime~al to public health and safety. (g) Public acoess to the praposed use shall bc ads- quate. (b) The physical location or plaxment of the use on the site is companble with and relates barmoniousty to the stirrouading aeig6borhood. (i) The pcoposed use is conastent with the goaLt, objec~ves, and policies of the General Plaa. (j) Thc proposed use would not be da~imental to the public iaterest, health, safety, oom~enience, or geaeral welfare. (k) The prnposed use conforms precisely to the appli- cable performance staadards oontaiaed in Snbcbapter 9.04.12, Sectivn 9.04.12010 and the special conditions outlined in Subchapter 9.04.14, Section 9.04.14.010. 9.041A.12010 (n The proposed use will not nesult ia aa over oon- oeatration of such nses m the mmmediau vidaity. (P:ior code ~ 9114.4) 9.04.?A.12.050 Conditions. In gcan~g a Conditional Use Permit, the Planniag Commission, or the C'ity Coima'1 on appeai, s~all require that the us~ aad development of the propertq ooafozm ~vith a atc plaa, aichi~ecnaat drawmgs, or statem~earr submitted 'm support of the application, or m snch modi- firdtiions thereaf as may be deemed necxssary to protat .the public health, safetq, aad general ovelfara and socure the objectives of the Geaeral Plaa, and may aLso impos~ such other canditions as may b~ deemed neeessarg to achieve these purposes, includiag, but not Iimited m, ihe follo~viag mattex~: (a) Setbada, Yard azeas+ and opea sPaxs- (b) Fenexs, ovalls, aad screenmg. ~~) ~ti~ P~~B. P~8 ~S- anci vohia~at ~~~~ ~d) IaadscaPmS aad maiaunanx of landscaping aad gronads. (e) Reguladon of sigos ( fl Conuvl of noisc, n'trcation, odois, aad other po- untiaUy dangeroaS or objectionable elemenu. (g) Iimits on time for coaduct of specific acdvities. (h) Time period withia wbich tha propesed nse shatl be daveloped. (i) Sach other oanditions as asay be d~tt~med to as~a~e that dav~elopment a~11 be ia aa~ordaace with the iatent and purposes of this CC~aapttr. (j) Reasonable guatantees of oompliance with ra quircd conditioas, snch as a deed res~icdon or requuing the applicaat to furnish suurity in the form of money or surety bond in the amount fined bg the adminisoering a8ency (k) Compliance with appIicabla perfoimaaoe ataa- dazds cantained in Subchapter 9.04.12, Sa~oa 9.04.12- .010. (Prior c~oda § 91145) 9.0420.12.060 Tam of permit ~ ~ The Condirional Use Permit shall etpire if tbe rights granted ara not eu~sed ~vitvia the period establi~ed by the Planniag Commissioa or 6ty Co~ on appeal as a ooaditioa of grantiag thc Conditional Use Petmit, or, m the absenoe of such established time period, eidiet wiffiin one year, or d located in the Coastal Zoae, ei~gh- tetn months, from the effecavc date of pcrmit approRaL However, if the permit is for affordable housiag or a mi~oed use projax wher~ housing imits oomprise at least seventy-5ve peroent of the floor area of tbe project (ooIIectivet~' "heusin8 Project"), aad the honsiag projoct has rexived C~ty, State or Federal fi:ndiag or is oom- prised of imits at least 5hq pereeat of which are deed i+a~ s~icted to be affordable to law mcama households and the rcmamder of which are deed-resoricted to be sfford- ablc to laov or maicrate iaoame bousaholds, m the ab- senx of a ti~e pcriod established by the Pla~iag Com- mission or GYty Couna'1 on appeal as a oondition of grantin8 the permit, tha Conditional Use Permit s6a11 504-1 C~a Moma T~ y.ua.zt~.lz.vbo Saata Monica Muaicipal Code ~'' expire if the righu ganted are not c~~ercised within three yeats, or if located ia the Coastal Zone, tbree and ona balf yeazs from the effectivc date of permit apprvvaL (a) E~se of Ri,ghts. "Faec+dse of ri~ghts" s~all mean aetuai commenoement of thc use granted by the permit, unless the pcrmit is ganted in oonjunctioa ~vith appmv~dl of new oons~tructioa. If the Coaditional Use Permit is gcaated ia c~onjimc- tioa with approval of ncw oons~uction, issvance of a bu7ding peimit shall constitnte e~rerase of rights tmder the Conditiamal Use Peimit; Pmvided- however, that, ualess otheiwiSe specified as a oondition of pmject ap- ps+aval, the Conditional Use Permit shall expire if: (1) The bu~ding peimit acpires; or (2) Final inspecdon is not completed or C,er~ficate of Ocaupanry issued within the time spec'~"ied as a oondi- tion of project approval; or (3) Thc rightt graated under the Conditional Use Permit are not eurcised within one y~ear following the eazliest to oavr of the following issvanx of a C~ctifi- cate of Oocupaney, or if no Certific~te of Ocaipanry is required, th~ last required final iaspection for the new construction. (b) Eatmsion. If the agplicant files an eueasion request with thc Zoniag Admmistrator m writing prior to a~iration of the permit, thc Zoning A~dmiaistcator may adminis~ativety grant one sa month exteaQOn of the te:m of the Conditional Use Permit, or if the pioject includes residcntial uses, a one-year extension of the term of the Conditional Use Permit The applicant may apply to the Planning Commission for azry fiuther e~en- sion if svch nquest is filed at leatt one month priar to the permiYs ag~iration. Such extension request ahall bo proxs~ed m the same manner and for the same fee u a new Conditional Use Permit The Plaaaiag Commis- sion may gaat an extension roquest for good cause, and may consider in this review the p~tent to which the pro- ject is c~onsistent with current developmern standaids and onsi policies, whether the project is consistent ia priacipal with the goaLs, objectives, policies, land uses, aad pro- grams sPecified~nn the adopt~d General Plan, conditions sutrotmding the projoct site aad whether th~ prnject w11 adversely affect public health, safety and general welfare. (Prior oade § 9114.6; amendad by Ord. No. 1T980CS § 4, adopted 425/95) 4.04.?A.12 070 Rnocation. The Planning Ca~missioa may, or upon dira~ion from the C~ty CouncIl, rcvoke a~- apprnved Conditional Us~ Pcrmit ia accordance with thc follawiag paooachu~es: (a) A revocation heariag shall be held hy th~ Plaa- ning Gommission. Notix of the hearing shall be pub- tished ona ia a neaspaper of general caculation witbia the City and shall be served either ia Person or b9 n8~- tered ma~ on the owner of tbe p:operty and on the permit holder at least ten days privr to such heariag The notice of hearing shall oontam a statement of the apecific reasons for revocation. (b) Aiter the beaiing, a Conditional Use Permit may bc rtvoked by the Planning Commission, or by the G~ry C,ounc~ on appeal or review, if aay one of the follavv~ag findmgs are made: (1) TLat thc Condiuonal Use Permit was obtamed by miaepresentation or fraud. (2) That the usc for which ihc Coaditional Use Per- mit was granted has ceascd or has been suspended for soc or more cnnsecutive calendar months (3) That the oonditions of the permit havie not been met, or thc pccm~it granted is being ur 2~as raxntty been exercised con~arq to ttxe teims of the apprwai or in violation of a specific statute, ordiaanx, law or regula_ tiom. ~ (c) A written determiaation of revocation of a Caadi- tional Use Pormit sball be mailed to the properry owner aad the permit holder withm ten days of such determina- tion. (Ptior code § 9114.7~ 9.04?A.1Z.080 APP~• The approval, conditions of approval, deaial, or revo- catian af a Conditional Use Permit may be appealal to the Chy Coimcil if filed ~vithin fourteen oonsecutive calendar days of the date the decision is made m the manner pnnvided in Part 9.04.?A24, Sections 9.04.?A.?s~ .010 throngh 9.04.20?A.040. (Piior code ~ 9114.8) Part 9.04?A.14 Development Review Permit 4A4.?A.14A10 Parposa A Dwelopment Reviaw Pernuit is intended to allaw the oonstruction of certain projects for which the design and atrng oonld res~ilt m an adveise impact on the sur- rouading area such as development that is praposed to be bu~t to a greater mtensity aad bulding height ffian 8~Y P~~tted m the area. Th~ permit allaas for: (a) Review of the locatioa, siu, massiag, aad plaoe- ment of thc proposed structure on the siu; (b) The location of proposed nses withia (c) an evafiation of the prnject ~vith regard to fined and established standards; (d) Modifir,~tion to the building volume envelope re- quirements. This review shall determinewhether the pro- Posed simng aad daiga shouid 1~e Permitted by ~v~eighing the pnblic need for the benefit to ba derived from the proposed site plaa ux against thc impaet which it map cause. (Prioz codc ~ 9115.1) 9A4?A.14:020 Application. Application for a Developmeat Review Permit shall be filed ia a manner oonsistent with the =equireme~s ooatained in Part 9.04.2020, Sectia~ 9.04.20.20.010 thr~ough 9.0420.?A.060. (Prior code § 91152) . 9.0450.14 030 Hearing and notiaa Upon reoeipt in pmper form of a Development Re- view Pesmit application, a public heaziag before the Planaing Commis~oa sl~all be set and notioe of saah heariag giiven ia a manner oonsistent ~vith Part 9_04.2D.22, Sec.tions 9.0420.22.010 thraugh 9.04?A.22140. (Ptiez code § 91153) , ~ 1 ' .' ;sano bsoni~a 7-95j 504-2 ' Saata Monica Municipal Code 9.04.Z0.14.040 ~ndings. . Following a public heariag, the Zoniag Admiaisttator shall prepare a written decision which sball oontaia the pl~ng ['emmicrion's findings of fact upon wbich such decision is based. The Commi.ssion, or G~ty Co~ma1 on si appeal, shall approve or conditionalty apprave a Dcvel- opment Review Permit application m aholc or m part if all of the follo~wing fmdings of fact can be made in an affirmative manner: < (a) The physical locauon, size, massing, and place- ment of proposed stcuwues on the site and the location of proposed uses within the project arc oompatible with and relau harmaniously to smrotmding sitac and neigh- borhoods. The siu of the project shalt be deemed com- patible with aad relate harmoniously to surrouadia.g sites and neighborhoods provide~ the projeci ic oonsistent with the height and density standards set forth ia the Laad Use El~aneat of the General PLzn, e~oxpt m those casts where the Land Use Element allows for the exercise of discretion in relation to the height and deatity of a pro- P~~ P~l~ (b) The rights-of-way can aaommodate autos and pedesaians, iacluding adequate patlaag aad aeo~ss (c) The health and safety servioes (police, fire, eu.) and public ~e (e.g., utilities) sre suffiaent to accommodate the new dcvelopment . (d) Aay on-site provision of housing or parla aad public open space, which are part of the rtQuit+ed project miugation measures required in Part 9.04.1012, satisfao- tori}y meet the goaLs of the mitigation program. (e) The project is generalty ooa~stmt witb the Mu- nicipal Code and Gen~ral Plan. (f~ Reasonable mitigation meastaes bs+e been inctud- ed for all adveise impact~ idendfied m aa Iaitial Study or Frnvironmental Impact Repos~t. (Prior oode § 9115.4) 9.0420.14.050 Term of permit The Development Review Permit sbaU espire if the rights granted are not exercised withia tLe period estab- lished by the Planniag Commission or ~ Co~non'1 on appeal as a condition of granring the Dnek~pmeat Re- view Permit, or, in the absence of sueb atabl~shed time period, either within one yeaz, or if loeated m tbe Coast- .al Zone, eightecn months, from tbe eQeet~e date of permit appmval. However, if the permit ~s Eot asocdable housing or a mAed use project a~es~e ~g uniLs comprise at least sevenry-five perceat ot tbe floor area of the project (collective}y "ho~iag projeci"~ and the housing project has rcceived G~ry, Stau ot Federal fvnd- ing or is comprised of unitc at leatt fifty pecoeat of wbich aze deed-restricted to be affordable to low moame house- holds aad the remainder of which aze deed•res~icted to be affordable to low or moderate income aouseholds, in the absence of a time period established by the Planniag Commission or Ciry Council on appeal as a candition of granting the permit, the Development Review Permit shall expire if the rights granud are not exercised within three years, or if located 'm the Coastal Zone, three aad one-half years from the effeetive date of permit approvaL 9.04.?A.14.040 (a) ~se of Rights. "F~ccrcise of righu" sball mean actual oommenoement of the use gzanud by the permit, unless the petmit is graat~d in oonjunction with appivv~al of new oonst~uction. If the Development Review Permit is graaud 'm conjtmcxion with apprin*al of new construction, issuanx of a bwlding permit shall oonstituu exercise of rights under the Developmaat Rcview Pe:mi~ prc~vided, hoaev- er, that, ~mless otherwise spedfied as a coadition of project approval, the Dovelopment Review Permit s6aII expae i~ (1) .The buldiag penmit espaes; or (2) The ri~ts granud under tbe Developme.nt Re- view Permit aze not exercised ~vithin one yeaz follawing tha earliest to oxur of ffie followin~ issuaax of a Cer- tificate of Oocupaacy, or if no Certificate of Oocupanry is required, the last required final inspection for the new coasuucaan. (b) ~on. If thc applicant files an e~tension request with the Z.oning Administrator in ~vritiag prior to expaatiaa of the permit, th~ Zoning A~ator may administrative}y g:ant one sa month aQension of the term of the Developmeat Review Permit, or if the prnject iacludes residential uses, a one year extension of the term of the Dcvelopmont Rcvicw Permit The appli- cant maq apply to the Planaiag Commission for aay further euension if suc6 request is 51ed at least one month prior to the perm~ift's e~iration. Such ertea~on request shall be proc~ed m the same manaer and for the same fee as a new Development Review Permit The Planning Cammission may giant an e~tension ra~uest for 8ood cause, aad may ~der in this rcview the erteat to wbich the prnject is c~onsistent with ciureat d~velog- mcnt standards and policies, whcther the projed is oon- sisrtent in prmcipal with the goals, obl~, Polia~s, laad uses, and ProBrams speafied 'm the adopted General Plan, oonditions surroundiag the project site and whethtr the project w~I adversety effect public health, saf~ty aad general welfare. (Prior code § 91155; amended by~ Chd No. 1798CCS ~ 5, adopted 4R5/9~ .. . 9.04.20.14.060 Re~ocation. The Planning Commissioa may, or upon direction from the City Couacil, revoke anY aPP~~ ~~F- ment Review Peimit in accordance with the foIlaaviag Procedure: (a) A revocation hearing shall b~ hcld by the Plan- ning Commission. Notix of the hearing sha11 be pnt~ lished onoe iu a ncavspaper of general c~ailation witbin the C~ity and shall be serveii eittier ia persvn or by regis- tered mail on the oavaer of thc property and on the pcrmit holder at least un days prior to sucb heazing. Th~ notix of hearing shall cantain a statemeat of the spaific reasons for rev~ocation. (b) After the hearing, a Development Review Permit may be rcvoked by the Planning Commission, or by the C'~ty Couaccil on appeal or review, if atry one of the fol- lo~wiag fiadings are made: (1) That the Development Review Permit was ob- tained by misrepresentation or firaud ~ 504-3 tsam Maoo ~.9s) 9.04.20.14.060 Smta Maaica Mu~icipal Code (2) That the use for wbic6 the Developmant Review Permit was granud has caased or bas been suspended for six or mate oonsecutive caleadar months. (3) Tbat the oonditions of the ptrmit have not been anet, ar the permit ~ted is be~mg or has reocatly been e~r~sed ooatrary to the teims of the apprwal or m violatioa of a specific statute, ordinancx, law or regula- ti~. (c) A written determmation of sevocation of a.De- velopmeat Rcview Permit sbiall be ma~led to the property owner and the permit bolder within ten days of suGh d~termination. (Prior code § 9113.6) 9.04.20.14.070 AppeaLs. The appraval, coaditions af approval, denial, or ravo- cation of a Development Review Permit may be appealad within fourteen consecutive calendar days of t1u d~:xe the decasion is made in the n~anner prwided in Part 9.04.2024, Secdons 9.04.2024.010 th:vugh 9.04.20.24.040. (Prior code § 9115.~ Part 9.041A.16 Amendments oi Comprehensi~e Laad Use and Zoning O~dinance 9.04Z0.16.010 Pnrpose. These provisions are intended to provide the C~ty Ct~uncil with a prooedure to amead this C:bapter or thc O~ciai Distsicting Map ahen~ver required bY P~~ neaessity, Public c~onveniencx, geaerat ~velfare, and good Planniag and Zoning pracaoe. (Prior oode § 9120.1) 9.04Z0.16.020 Initistion (a) A text amendment shall only be iaitiated in one of the follvwing maaners: {1) A re~lution of intention by the Planning Com- mission. (2) A resolution of inteation of the City Coimc~ direc~ting the Planaing Commission to initiate an amend- menL (3) An. applicauon from anp Pe~oII livin8e a'oilaag, ~8 P~P~3' ~ opeiating a business within the G~ry ~f Santa Monica. (b) An amendment of the O&cial Districxing Map of bc G~ty shall only be mitiaud in one of the following naane:s: (1) A resolution of inuntion by the Planniag Com• aission. (2) A resolution of mteation of ti~e Catp Couad'1 ~axiag the Planning Commissioa to iaitiate an amend- aeat (3) Aa application initiated try a citizen petition agped by ao less ihan fifty peisoas who are property rwners or unants withia the C~ty of Saara Monica pu:sn- mt to Part 9.0420?A, Sections 9.04.2020.010 through -.0420?A.060. (Prior oode § 912Q2) ~.04.?A16.030 Findmgs. Aa amendmcnt may be adopted by ordinanx cf the ~ty Co1md1 only if the followiag fmdiags of fact can be oade in an affnmative manner: smn Maaia 7as) (a) The prapc~sed amendment is o~nsistent in priad- plewrth ffie goals, objective.t, polides, laad uses, and pro- 8r'ams spaa~fied m the adopted Geaeral Plan. (b) TLe public health, safdy, and general wetfaz+e reqt~ira the adoption of the proposed amendmcnt (Prior oode § 912U3) 9.0420.16 040 Searing aad notice. Upon reoeipt ia proper form of aa amendment application. a Public heariag s~all be s~t before the Plaa- ning Commiuion and notix of such beariag given in a manne= oonsistent ~vith Part 9.Q4.?A22, Sections 9.04.2022010 thnnugh 9.04.Z0.22140. I~ irom the facts presented at tha heaziag, the Ca~mission makes the required findia8s ia aa affiimative maaaer, tbe Commis- sion shall recommend mch amendment or ac~q portion thereof 1 ' 1 ' ' ' ' ~ ~ ~ ~ APPENDIX C Proposed Zoning Ordinance Text Amendments for: (1) A New AD Auto Dealership Overlay District; and (2) Modifications to Non-Conforming Uses of Land and Buildings HAMILTON, RABINOVITZ BL ALSCH[JI.ER, INC, Appendix C AD Overlay District Section 9.04.08.43 Part 9.04.08.43 AD Auto Dealership Overlay District 9.04.08.43.010 Purpose. The AD Overlay District is intended to protect and enhance the viability of existing full-service automobile deaierships, and support development of new dealersips, located primarily along Santa Monica Boulevard east of Lincoln Boulevard and on Wilshire Boulevard between 16~' and 18'~ Streets, but aiso potentially in other locations in the City. The gaal of the AD Overlay District is to provide strategically- focused zoning for a category ofbusiness that plays a unique role in providing important goods and services, employment opportunities and tax revenues in the City. The AD Overlay District provides the development standards necessary to accommodate dealership development, and consolidates the zoning requirements governing the development of dealerships, which include protections from the impacts of dealership operation on ad,jacent residential and other uses, consistent with the goals, objectives, and policies of the General Plan. 9.04.08.43.020 Applicability. New and existing auto dealerships in the AD District shall be subject to compliance with this Section as follows: (a) Existing automobile dealerships not proposing to expand shall be subject to certain of those provisions and compliance periods of this Section as are hereafter specifically described. (b) All new automobile dealerships and substantial expansions of existing dealerships shall comply with the property development standards for the AD District, and with the speciai project design and development standards applicable to new dealerships and substantial expansions, as specified in this Section. For purposes of this Section, "substantial expansion" means a dealership project involving: (1) more than 20,000 square feet of net additional floor area, or a 50 percent increase of existing floor area, whichever is more; or (2) more than 15,000 square feet of net additional site area, or a 25 percent increase of existing site area, whether by purchase, lease, business combination or acyuisition, or similar method, whichever is more. (c) Existing automobile dealerships proposing minor expansion shall comply with the property development standards for the AD District, except for the special project design and development standards applicable to new dealerships and substantial expansions of existing dealerships, as specified in this Section. For purposes of this Section, "minor expansion" means any expansion of dealership floor area or land area that is not a substantial expansion, as defined herein. 9.04.08.43.030 Permitted Uses. The following uses shall be permitted in the AD Overlay District, if conducted within enclosed buildings, except where otherwise permitted: (a) Automobile dealerships. (b) Above-grade and below-grade parking structures, if in conjunction with an auto dealership. (c) Rooftop parking, if in conjunction with an auto dealership. HAMILTOr3, RAatrrovrrz & Ai,scxvt,Ett, INC. Page C-I Appendix C AD Overlay District (d) Any other use permitted by the underlying zoning, subject to the requirements of the underlying zoning rather than the requirements of this Section. ° (e) Accessory uses which are determined by the Zoning Administrator to be necessary and customarily associated with, and appropriate, incidental, and subordinate to, the principal permitted uses and which are consistent and not more disturbing or disruptive than permitted uses. (~ Otl~er uses determined by the Zoning Administrator to be similar to those listed above which are consistent and not more disruptive or disturbing than permitted uses. Boulevard, parking structures shall not to exceed forty-six (46) feet. (3) For dealership sites that abut a residential zone outside the AD District, parking structures shall not exceed 30 feet in height within a horizontal distance equal to l 0 feet, measured from and including the interior rear yard or side yard setback line, as applicable. (4) For dealership sites across an alley from a residential zone outside the A.D District, parking structures shall not exceed 30 feet in height within a horizontal distance equal to 10 feet, measured from the alley. (5) All auto dealership buildings and structures other than parking structures shall not exceed two stories and 30 feet. Section 9.04.08.43.Q40 Prohibited Uses. (a) Any use not specifically authorized in the AD District or the underlying zone. Section 9.04.08.43.064 Property Development Standards. All property in the AD Overlay District shall be developed in accordance with the same standards as those listed for the underlying zoning district, except as modified below for auto dealerships only: (a) Maximum Hei~ht. There shall be no limitation an the number of stories of any parking structure, whether attached or detached, so long as its height does not exceed the maximum number of feet permitted in this Section. (1) For dealerships in the C4 District fronting on Santa Monica Boulevard east of Lincoln Boulevard, parking structures shall not exceed forty-six (46) feet. (2) For dealerships in the C6 District fronting on Wilshire Boulevard east ofLincoln (b) Floor Area. The following calculation ruies shall apply to full-service auto dealership uses anly: (1) The following uses and areas included in ful(-service auto dealerships shall be excluded from "floor area:" (A) 50 percent of parking structure roof area used for customer, repair vehicle or vehicle inventory parking. (B) Any dealership use placed below grade. (2) For purposes of caiculating maximum permitted Floor Area Ratio, all of a dealership's parcels included in the AD Overlay District shall be included, regardless of their underlying residential or commercial zoning. (c) Floor Area Ratios (FARI. In order to provide the flexibility necessary to accommodate on-site parking structures and e~cient dealership operations, the following Floor Area Ratios shall appiy: (1) For dealerships in the C4 District fronting on Santa Monica Boulevard east of Lincoln Boulevard, 1.75. HAMILTON, RABINOVITZ & ALSCHULER, INC. Page G2 Appendix C AD Overlay District (2) For dealerships in the C6 District fronting on Wilshire Bouievard east ofLincoln Boulevard, 1.75. (3) For dealerships in any other District, 1.75. (d) Minimum Lot Size. The minimum lot size shall be fifteen thousand square feet for new lots created by subdivision or lots combined afrer the adoption of the ordinance codified in this Chapter. (e) Yard Setbacks. The following yard setbacks shall apply to any new floor area or parking structures located on property within the AD Overlay district, regardless of its underlying zoning: (1) Front Yard. Landscaping as required pursuant to the provisions of Part 9.04.10.04. (2) Rear Yard Setback. None, except: (A) Where the dealership site abuts a residentiai district outside the AD District, a rear yard equal to 20 feet. The required rear yard may be used for parking or loading, provided the parking or loading does not extend above the first floor level and provided that a wall not less than five feet or more than six feet in height is erected and maintained along the rear commercial parcel line. Access driveways shall be permitted to perpendicularly cross the required rear yard provided the driveway does not exceed the minimum width permitted for the parking area. A required rear yard shail not be used for commercial purposes other than parking (inciuding vehicle inventory storage) and l~ading. (B) That needed to accommodate landscaping and screening for a rear yard buffer required pursuant to the provisions of Part 9.04.10.04. (A) Where the interior side of the dealership site abuts a residential district outside the AD District, an interior side yard equal to 10 feet. The interior side yard may be used for parking or loading to within five feet to the interior side property line provided the parking or loading does not extend above the first floor level and provided a wall not less than five feet or more than six feet in height is erected and maintained along the side commercial parcel line. A required interior side yard shall not be used for access or for commercial purposes other than parking (including vehicle inventory storage) and loading. (B) That needed to accommodate landscaping required for a street side yard, landscape buffer and screening pursuant to the provisions of Part 9.04.10.04. (C) A ten-foot setback from an interior side property line shall be required for portions of buildings that contain windows, doors, or other openings into the interior ofthe building. An interior side yard less than ten feet shall be permitted if provisions of the Uniform Building Code related to fire-rated openings in side yards are satisfied. (e) Develonment Review. A Development Review Permit is required for any development of more than 7,500 square feet of floor area. Section 9.04.08.43.070 Requirements forAll Eaisting Deaterships. All auto dealerships existing at the time the AD Overlay District section is adopted shall comply with the following requirements: (a) Parking and Vehicle Storage. Areas designated for employee and customer parking shall not be used for vehicle storage or display. (3) Side Yard Setback. None, except: HAMILTON, RABTNOVITZ & ALSCHULER, INC. Page C-3 Appendix C AD Overlay District (b) Li htin . All e~erior lighting shall comply with Section 9.04.10.02.270. (c) Loadin~~,and Unloadine of Vehi~les. Loading and unloading of vehicles is pernutted only in accordance with this subsection. The dealership operator shall be responsible and liable for any activities of a common carrier, operator, or ather person controlling such loading or unloading activities to the extent any such activities violate the provisions of this subsection. (1) Loading and unIoading of vehicles is limited to the dealership's regular hours of operation. (2) Off-loading shall, to the extent feasible, take place on the dealership site, or at another site, subject ta the approval of the City Parking and Traffic Engineer. Loading and unloading shall not block the ingress or egress of any adjacent property. Shared loading and unloading facilities are permitted for the purposes of ineeting this requirement. (3) Existing dealerships shall submit plans to the City Parking and Traffic Engineer for approval that satisfy the reyuirements of this subsection. The City Parking and Traffic Engineer may pernut loading and unloading at the center divider of City streets, when there is no practical off-street alternative, but only within the pnrtion of the City street that is wittun the AD District. (d) Stora~e of Vehicles to Be Repaired. No vehicles to be repaired shal) be parked or stored on any public street or alley. (e) Repair of Vehicles. The repair and service facility portion of an automobile dealership shall comply with the provisions of Sectian 9.04.14.050. {~ Test Drivin~. Test driving shall not be done on residential streets or alleys. For the purposes of this subsection, streets which are designated by the City as major collector streets shall be perntissible areas for test driving. Each dealership operator shall have an affirmative obligation to inform all its persannel of this requirement and to ensure compliance with it. E~cisting dealerships shall submit plans to the Parking and Traf~ic Engineer for approval that satisfy the requirements of this subsection. (g) Control of Alley Traf~c. Notwithstanding the prohihition of alley use for test driving, each dealership shall present to the Parking and Traffic Engineer a plan for slowing traffic flow in alleys adjacent to the dealership, with the objective of minimizing dangers to pedestrians and neighboring vehicle operations, and of minimizing noise and other environmental incursions into the neighborhood. Such plans shall be designed to limit the maximum speed to fifteen miles per hour and may include measures such as speed bumps or dips, one-way traffic patterns, increased signage, parking and laading prohibitions and similar measures. (h) Noise Control. (1) There shall be no outdoor loudspeakers. Interior loudspeakers shail produce no more than forty-five dba at a boundary abutting or adjacent to a residential parcel, under normal operating conditions (e.g., with windows open if they are likely to be opened). (Z) All noise generating equipment exposed to the exterior shall be muf~led with sound absorbing materials to minimize noise impacts on adjacent properties and shall not be operated before eight a.m. or after six p.m. if HwMILTOrI, RABtNOVITZ & ALSC[-IL7LER, INC. Page C-4 Appendix C AD Overlay District reasonably likely to cause annoyance to abutting or adjacent residences. (I) Toxic Storaee and DisposaL ` (1) Gasoline storage tanks shall be constructed and maintained under the same conditions and standards that apply for service stations. (2) There shall be full compliance with the terms and conditions of all City laws relating to the storage and disposal of toxic chemicals and hazardous wastes. (j} Air ualit . (1) Use of brake washers shall be required in service stalls or areas which perform service on hrakes employing asbestos or other materials known to be harmful when dispersed in the air. (2) All mechanical ventilating equipment shall be directed to top story exhaust vents which face away from abutting or adjacent residential properties. (3 ) Exhaust systems shall be equipped with appropriate and reasonably available control technology to minimize or eliminate noxious poliutants which would otherwise be emitted. (k} Hours of O~eration. Unless otherwise approved by the Planning Commission on appeal, if the dealership is within one hundred feet of a residential district, operation of the dealership shall be prohibited between the hours of ten p.m. and seven a.m. Section 9.04.08.43.480 Speciaf Project Design and Deveiopment Standards for New Dealerships and Substantial Remodels of Existing Dealerships. New dealerships and substantial expansions of existing dealerships in the AD District shall comply with the following additional special project design and development standards: (a) Screenin~ of Automobile Dealershius. All areas visible from the public right-of-way devoted to display of automobiles for sale, lease, or rental where the sale, lease, or rental is the principal commerciai business shall be screened according to the following standards: (1) Permanent, opaque landscaping, fencing, or walls shall be provided and maintained at a height of not less than two feet above the average adjacent grade at a distance of not less than two feet measured harizontally from the property line adjacent to the public right-of-way. Plant material may exceed twenty-one feet in height. (2) In lieu of compliance with subsections (1) and (2), the Architectural Review Board may approve other screening plans, designs, and materials of equal area and screening which satisfy meet the intent of the screening standards. (3) The landscape area reguired for screening shall be in addition to the landscape area required for building sites pursuant to the provisions of Section 9.04.10.04.060. (4) A mirumum two-foot landscape and decorative curb strip, where feasible, shall be provided along the street frontage perimeter of all vehicle display areas. Landscape materials shall be designed to provide an opaque visual buffer at least twelve inches in height. Applicable setback requirements shall be expanded to require a minimum five-foot landscaped area adjacent to any abutting residential district. (5) Fina! design treatment shali be subject to review and approval by the Architectural Review Board. All parking areas not used for automobile display shall be subject to the parking lot screening requirements af Part 9.04.10.04. (b) Parkin~ and Vehicle Storage. Parking for net new floor area, not including pasking HAMILTON, RABINOVCfZ & ALSCHULER, INC. Page C-5 Appendix C AD Overlay District structures, shall comply with Part 9.04.10.08. Areas designated for employee and customer parking shall not be used for vehicle storage or display. . (c) Li htin . All lighting shall comply with Section 9.04.10.02.270. (e) Storage of Vehicles to Be ReQaired. No vehicles to be repaired shall be parked or stored on any public street or alley. ( fl Repair of Vehicles. The repair and service facility portion of an automobile dealership shall comply with the provisions of Section 9.04,14.050. (d) Loadin~ and Unloading .of Vehicles. Loading and unloading ofvehicles is permitted only in accordance with this subsection. The dealership operator shall be responsible and liable far any activities of a common carrier, operator, or other person controlling such loading or unloading activities to the extent any such activities violate the provisions ofthis subsection. (1) Loading and unloading of vehicles is limited to the dealership's regular hours of operation. (2) Off-loading shall, to the extent feasibie, take place on the dealership site, or at another site, subject to the approval of the City Parking and Traffic Engineer. Loading and unloading shall not block the ingress or egress of any adjacent property. Shared loading and unloading facilities are permitted for the purposes of ineeting this requirement. (3) Existing or new dealerships, as applicable, shall submit, coincident with the application for a permit for a new or substantially remodeled dealership, a plan for approval by the City Parking and Traffic Engineer that satisfies the requirements of this subsection. The City Parking and Traffic Engineer may permit laading and unloading at the center divider of City streets, when there is no practical off-street alternative, but only within the portion of the City street that is within the AD District. (g) OueuingofV'ehicles. Adeyuateon-site queuing area for service customers shall be provided. ~n-site driveways may be used for queuing, but may not interfere with access to required parking spaces. Required parking spaces may not double as queuing spaces. (h) Test Drivin~. Test driving shall not be done on residential streets or alleys. For the purposes of this subsection, streets which are designated by the City as major collector streets shall be permissible areas for test driving. Each dealership operator shall have an affirmative obligation to inform all its personnel of this requirement and to ensure compliance with it. New dealerships shall submit, coincident with an application for approval ofthe proposed dealership, a plan for approval by the City Parking and Traffic Engineer to satisfy the requirements of this subsection. (I) Control of Allev Traffic. Notwithstanding the prohibition of alley use for test driving, new dealerships shall submit, coincident with the application for a pernvt for the new dealership, a plan for approva) by the City Parking and Traffic Engineer for slowing traffic flow in alleys adjacent to the proposed dealership, with the objective of minimizing dangers to pedestrians and neighboring vehicle operations, and of minimizing noise and other environmental incursions into the neighborhood. Such plans shall be designed to HAMILTON, RA.BINOVITZ & ALSCHLILER, INC. Page C-6 Appendix C AD Overlav District limit maximum speed to fifteen miles per hour and may include measures such as speed bumps or dips, one-way traffic patterns, increased signage, parking and loading prohibitions and similar_measures. (j) Circulation. The location of entries and exits from automobile dealerships shall be located as far away from adjacent residential properties as is reasonably feasible and shall be directed to commercial streets and away from residentiat areas by means of signage and design. The interior circulation system between levels shall be internal to the building and shall not require use of public ways or of externally visible or uncovered ramps, driveways or parking areas. No arrangement shall be permitted which requires vehicles to back into an al(ey or other public way. (k) Noise Control. (1) There shall be no outdoor loud speakers. Interior loudspeakers shal( produce no more than forty-five dba at a boundary abutting or adjacent to a residential parcel under normal operating conditions (e.g., with windows open if they are likely to be opened). (2) A11 noise-generating equipment exposed to the exterior shall be muffled with sound absorbing materials to minimize noise impacts on ad}acent properties and shall not be operated before eight a.m. or after six p.m. if reasonably likely to cause annoyance to abutting or adjacent residences. (3) Rooftop parking areas shall be screened with landscaping and noise absorbing materials to minimize noise impacts on adjacent properties. conditions and standards that apply for service stations. (2) There shall be full compliance with the terms and conditions of all City laws relating to the storage and disposal of toxic chemicals and hazardous wastes. (m) Air Quality. Use of brake washers shall be required in service stalls or areas which calculations iflocated above grade level, the area shall not be included in FAR calculations to the extent that there is a substituted usage above the first floor which would not be included in FAR calculations if located below grade. If service stalls are located below grade, but an eyuivalent square footage above the first floor is dedicated to parking (which would not be counted in FAR if below grade), only the above-grade square footage is to be included in FAR calculations. Only one level of activity area shall be subject to this exemption. (n) Openings. There shall be no windows or other openings in walls facing abutting or adjacent residential districts, except for emergency-only pedestrian exits if required by the Building and Safety Division and for delivery facilities. (o) The Zoning Administrator may grant a variance from the foregoing Speciai Project Design and Development Standards in accordance with the procedaral and substantive requirements set forth in Part 9.04.20.10 of Article IX. (1) Toxic Storage and Disposal (1) Gasoline storage tanks shall be constructed and maintained under the same HAMILTON, RABINOVITZ & ALSCHUI.ER, INC. Page C-7 Appendix C AD Overlay District Section 9.04.08.40.090 Architectural Review. All new construction, new additions to existing buildings, and any other exterior improvements that require issuance of a building pernvt shall be subject to architectural review pursuant to the provisions of Chapter 9.32 of this Article. HAMILTON, RABINOVITZ & ALSCHIJLER, INC. Page C-8 Appendix C AD Overlav District ~Proposed new text is underscored. J 3ection 9.04.18.040 Termination of nonconforming buildings and uses. " vonconfornung commercial or industrial ~uildings and uses in the Rl, R2, RZR, R3, t4, RVC, OP-1, OP-2, OP-3, OP-4 and OP- ~uplex Districts, excent for uses uennitted in :he AD Overlav District, shall be discontinued ind removed or altered to conform to the ~rovisions of this Chapter within the following ime limits from the e#Pective date of the ~rdinance codified in this Chapter: ~a) A nonconfornung use which does not ~ccupy a structure, other than those uses listed ~elow: one year. b) A!1 buildings on the property used as a ~art of a business conducted on.the property, :xcept as provided below: twenty years. This ;ubsection does not require the removal of ~onconforming buildings if the use occupying he building is authorized in the zoning district >r overlay district in which the building is ocated, either as a permitted use, a :onditionally permitted use, a use subject to a ~erformance standards permit, or a use subject o a use pernut. c) Vehicle sales, service, storage and epair buildings and uses shall be permitted to emain provided: 1) The vehicle sales, service, repair and torage buildings are not expanded as provided n Section 9.04.18.020 and the use is not ntensified as provided in Section 9.04.18_030. 2) The commercial parcel supported by he vehicle sales, service, repair and storage ~uildings is not redeveloped for another use. d) Automobile storage lots which are ~sed for short or long-term parking ofvehicles for sale or iease at an af~ site or on-site automobile dealership or for service or repair at an on-site automobiie dealership shall be permitted to remain provided: (1) The automobiie storage Iot 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 redeveloped for another use. (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 ofthis requirement, a change of use shall be defined as any new use which requires more intense parking standards than exists on the effective date ofthe ardinance codified in tius Chapter. (4) The square footage of the existing commercial building on the commercial parcel is not added to or enlarged beyond fifly percent of the floor area existing on the effective date of said 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 af the above conditions are not met. (~ 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: five years. iAMILTON, RABINOVITZ & ALSCHULER, Ilvc. Page C-9 Appendix C AD Overlay District 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 9.04.2022. (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 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 pernut and not this Section. HAMILTON, RABINOVITZ & ALSCHiJLER, INC. Page C-10