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SR-400-008-02 (4) . tjc/)- tJO'i~tf/2- . ~-II fEE j 3 i99U CjED:CPD: COUNCIL MEETING: February 13, 1990 wjGMSccrpl Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Ordinance Extending the citywide Moratorium on Non-Residential and Hotel Development INTRODUCTION This report reviews progress to date on the City's Growth Management strategy, outlines the futurl;a direction of the project, and recommends that the City Council approve an ordinance continuing the moratorium on non-residential and hotel development for an additional ten months and 15 days. BACKGROUND On May 23, 1989, in response to a rapid rate of non-residential growth, traffic congestion, and sewage capacity constraints, the City council adopted Ordinance Number 1481 creating a citywide moratorium on non-residential and hotel development. The moratorium included all non-residential development exceeding 75% of existing site review thresholds. Exemptions to the moratorium included: school property development, development in the Third street Mall and Hospital Specific Plan Areas, and development for which development agreement applications had already been filed. The moratorium affected all applications filed after May 2, 1989. '6-4 - 1 - F;: n ~.., '090 ~ ~ , ) I" . . In addition to the moratorium, the city council approved a work program to review the Cityl s land use policies and develop a strategy to manage growth. The work program included numerous public workshops, four maj or reports, and a list of specific issues to be addressed, including the following: o Review of commercial development standards such as heights and FARis; o Identifying new opportunities for residential development, including possible rezoning of areas currently designated for other uses, and creating new mixed use districts; o Re-examination of development review criteria; o Re-examination of methodology for calculating Levels of Service; o Incentives to encourage cultural and housing opportunities in the City's downtown; o Incorporation of the updated Main street Ordinance; o Further study of the proposed commercial Allotment Program. Originally staff had hoped to complete all of the policy work by early April, 1990. However, due to delays in the completion of background material, such as the citywide Traffic study, and an increase in an already heavy Planning Division and Planning Commission workload from such Council initiated projects as the North of wilshire Rezoning study, amendments to the Landmark IS Ordinance, the Historic Resources Survey and associated public notification, revisions to the Housing Element, and various environmental impact reports, the project has been delayed. - 2 - e . PROGRESS TO DATE since the initiation of the non-residential development moratorium in May, 1989, three public workshops have been held, a draft and final background data report and fiscal analysis has been published, and formulation of alternatives has begun. The first public workshop, held on July 15, 1989, focused upon community issues and concerns about growth. This workshop helped staff to identify topics to be addressed in the Existing Conditions Report and to surface goals for growth management. At the second public workshop on August 24, 1989, staff presented a slide-show summarizing key findings from the draft Existing Condi tions Report. Topics included recent land use pOlicy, population, employment and land use growth trends, housing needs, and infrastructure constraints. Based upon public input at this workshop, the existing conditions report was expanded and revised, and a final version was pUbliShed in November, 1989. since traffic is one of the major issues that concerns the community, the December 13, 1989 public workshop focused exclusively on the results of the Citywide Traffic study. The Traffic study is currently being reviewed based upon comments at this workshop. The final component of the Existing Conditions Report, the Fiscal Impact Analysis, was published at the end of January. This addendum to the main report examines the relationship between new development and the City's fiscal well-being. - 3 - . . Now that the existing conditions phase of the project is complete, staff has begun formulating growth management alternatives. In March, staff plans to present these alternatives at a public workshop before the Planning Commission. FUTURE DIRECTION staff anticipates that it will take approximately twelve months to complete the next phase of the Growth Management strategy. During this time, the main tasks will include preparation of alternatives, selection of a preferred alternative, and environmental analysis. staff is beginning the process of developing alternative growth management strategies. In order to maximiz,a the City's options, a wide range of approaches are being studied. At the conclusion of this process, staff will present the alternatives to the Planning commission and City Council for discussion. Once the alternatives have been reviewed by the City Council, the environmental review process will be started. Hearings before the Planning Commission and City Council would follow completion of the EIR. EXTENSION OF THE MORATORIUM In order to complete the process initiated in May of 1989, staff recommends continuing the non-residential building moratorium for an additional ten months and 15 days. This extension will take the project through the environmental review process. After the - 4 - . . environmental review phase, it will take additional time to complete the public hearing and adoption process. BUDGET/FINANCIAL IMPACT The recomrnenda tions contained in this report do not have any budgetary impacts. RECOMMENDATION staff recommends that the City Council: l} Conduct a public hearing on the proposed extension of the non-residential and hotel development moratorium ordinance; 2} Introduce the accompanying ordinance for first reading. Prepare by: Paul Berlant, Planning Director Suzanne Frick, Principal Planner John Read, Associate Planner Amanda Schacther, Associate Planner wjGMSccrpl - 5 - . . CA:RMM:lld584/hpc City Council Meeting 2-13-90 Santa Monica, California ORDINANCE NUMBER (City Council series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA EXTENDING THE CITYWIDE MORATORIUM ON NON-RESIDENTIAL AND HOTEL DEVELOPMENT THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Findings and Purpose. The City council finds and declares: (a) In recent years, the pace of non-residential development in the city has accelerated dramatically, adversely affecting the capacity and quality of the City's street and highway system, the jobs/housing balance within the city, and the quality of life in the community, including environmental quality and neighborhood character. (b) In 1987, a building permit was issued for only one non-residential project totaling 1,014,546 square feet. In 1988, building permits were issued for twenty-three (23 ) non-residential projects totaling 2,835,940 square feet. As of May 10, 1989, planning approvals have been granted for twelve (12) non-residential projects totaling 436,304 square feet and there are thirty-one (31) non-residential projects pending Planning Commission review totaling 3,467,689 square feet. In - 1 - . . addition, planning approvals have been granted for four (4) more non-residential projects totaling 302,296 square feet in 1987, and for nine (9) more non-residential projects totaling 235,681 square feet in 1988 for which building permits have not yet been issued. (c) Based on population and employment proj ections , the Environmental Impact Report on the City's Land Use and Circulation Element, adopted on October 23, 1983, projected that there would be a demand for an additional 5,800,000 square feet of non-residential development by the year 2000. As of 1989, development in the City has already exceeded the projected amount of development for the year 2000. (d) A review of recent Initial Studies and Environmental Impact Reports prepared for the city reveals that there are at least thirteen intersections in the City where the existing level of service ("LOS") falls below "D". These reports further reveal that with the impact of approved and proposed projects within and outside the City, the future level of service of at least thirty-three (33) intersections across the City is projected to fall below LOS "0". e e) According to the city of Los Angeles, the existing capacity of the Hyperion Treatment Plant, where wastewater from the City of Santa Monica's public sewer system is treated and disposed of, is operating at or near its current full capacity, necessitating regulation of the rate of wastewater increase handled by the City's sewer system. The urgency of the wastewater treatment and disposal problem is illustrated by the adoption of Ordinance Number 1451 (CCS) on July 26, 1988. - 2 - . . (f) The pace of non-residential development has far outstripped the pace of residential development in the City, further increasing the imbalance between the number of jobs in the City and the availability of housing for persons employed in the City. (g) Although revisions to the Zoning Ordinance lowered heights and floor area ratios in most non-residential districts, these reductions do not control the rate, location or character of development in those areas, and do not adequately address the infrastructural and environmental problems currently facing the city. (h) According to the Environmental Impact Report on the Zoning Ordinance, there is a maximum theoretical capacity of between 62,924,000 and 75,916,000 square feet for office, commercial, and industrial development in the city. The maximum build-out potential needs to be re-examined as do the mechanisms for limiting and mitigating the impacts of that build-out on the city's infrastructure. (i) The increase in development activity in the city poses a threat to the public health, safety and welfare of the residents. (j) The City's zoning, planning, SUbdivision, and building regulations require review as they pertain to the non-residential development activity within the City in order to ensure that development is consistent with the public health, safety and welfare. (k) Since the initiation of Ordinance Number 1481 (CCS)~ creating a ten month and fifteen day moratorium, three public , - 3 - . . workshops have been held to help familiarize and involve the public with issues to be addressed as part of a citywide growth management strategy. A background report, fiscal analysis and citywide Traffic study have been published and alternative growth management strategies are in the process of being developed. Pending completion of this process, it is necessary to extend the interim control measures currently in effect so as to preserve the existing character of the city and prevent any further worsening of the traffic situation, jobs/housing imbalance, and environmental quality, and will not further stress the existing infrastructure. SECTION 2. Moratorium. (a) Subject to the exemptions set forth in Section 3 of this Ordinance, a moratorium is hereby placed on the acceptance for processing of any applications for approval of tentative tract maps, tentative parcel maps, administrative approvals, development review permits, conditional use permits, or any other city permits for the erection, construction, moving, conversion of, and excavation and grading for, any non-residential building or structure, including any hotel or motel, in the city of Santa Monica. (b) Subject to the exemptions set forth in Section 3 of this Ordinance, the Planning commission and city staff are hereby directed to disapprove all applications filed after May 2, 1989, for approval of tentative tract maps, tentative parcel maps, administrative approvals, development review permits, conditional use permits, or any other city permits for the erection, - 4 - . . construction, moving, conversion of, and excavation and grading for, any non-residential building or structure, including any hotel or motel, in the city of Santa Monica. SECTION 3. Exemptions. The following applications are exempt from the provisions of Section 2 of this ordinance: (a) Applications for approval of permits involving proposed developments on land owned, operated or controlled by the city of Santa Monica, Santa Monica College, the Santa Monica School District, or the State of California. (b) Applications for approval of permits for proposed developments in the Third Street Mall Specific Plan Area and in the Hospital Specific Plan Area. (c) Applications for approval of permits for proposed developments that fall at or below the following square feet of floor area for the district in which the development is located: C-2 Neighborhood Commercial 8,000 C-3 Downtown 22,000 C3C Downtown Overlay 22,000 C-4 Highway Commercial 18,000 C-5 Special Office 22,000 C-6 Boulevard Commercial 22,000 CM Main Street 11,000 CP Commercial Professional 16,000 Ml Industrial Conservation 22,000 BCD Broadway Commercial 16,000 RVC Residential-Visitor Commercial - 5 - . . The Promenade 11,000 All other parts of the District 22,000 To the extent that a project contains both residential and non-residential components, this moratorium applies only to the non-residential component of such project. A project that contains both residential and non-residential components may proceed with an application only if the square footage of the non-residential portion of the project falls below the threshold set forth in this subsection. (d) Applications for approval of permits involving proposed developments for which development agreement applications have been filed on or before May 2, 1989 and proposed developments for which development review applications have been filed and deemed complete on or before May 2, 1989. (i) An application shall be deemed complete for purposes of this Ordinance within fifteen (15) days for subdivision maps and parcel maps, and thirty (30) days for all other permits, after the Planning Division receives a substantially complete application together with all information, reports, drawings, plans, filing fees, and any other materials and documents required by the appropriate application forms supplied by the city. If, within the specified time period, the Planning Division fails to advise the applicant in writing that his or her application is incomplete and to specify all additional information required to complete that application, the application shall automatically be deemed complete. An application is II substantially complete" if the missing - 6 - . . information is supplied within two (2) working days of the city's request. (ii) If an application for approval of a proposed development has been deemed complete by the city on or before May 2, 1989, an amended application for the same project shall be deemed complete as of May 2, 1989, so long as the Planning Director determines that the changes to the project do not increase the size or substantially alter the scope of the proposed project. This Section shall not apply for purposes of deeming an application complete under the Permit Streamlining Act. (e) Applications for approval of permits involving the erection, construction, enlargement, demolition, or moving of, and excavation and grading for, projects which have been granted development permits by the Planning Commission or Planning Division on or before May 2, 1989. SECTION 4. This Ordinance shall be of no further force and effect ten months and fifteen days from its effective date. SECTION 5. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, are hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance. SECTION 6. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent - 7 - .. . . jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The city council hereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 7. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective upon adoption. APPROVED AS TO FORM: ~~.~ ROBERT M. MYERS U city Attorney - 8 -