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SR-400-008-03 (2) PCD:SF:f:\plan\admin\ccreport\baysideord Council Mtg: January 8, 2002 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Extension of Interim Ordinance Establishing A Temporary Moratorium On The Expansion of Retail Uses on the Third Street Promenade INTRODUCTION On November 27, 2001, the Council adopted a 45-day emergency interim ordinance that limited the conversion of restaurant use to any other use on the Third Street Promenade. The ordinance must be revised in order for it to be extended beyond the initial 45 day period. This report outlines the proposed revisions. BACKGROUND The Council expressed the desire to maintain the proper balance of uses on the Third Street Promenade. The original Third Street Mall was primarily a pedestrian retail mall that failed to attract residents and visitors. That failure threatened the viability of the downtown area. In response, the City embarked upon an extensive planning and community participation process culminating in the adoption of the Third Street Mall Specific Plan now called the Bayside District Specific Plan. This Plan establishes polices to preserve the unique mixture of uses, a key element to the success of the Promenade. Over the years the Council has maintained the balance of uses by 1 enacting zoning regulations that foster the appropriate mix of restaurant, retail and entertainment uses. thth Information presented to Council on November 13 and 27 2001 shows that the mix of uses is at risk. A number of restaurants have been lost in the last couple of years, others are near or at the end of their leases. While restaurants are leaving the Promenade, retail uses are growing. The growth of retail has already exceeded the ten year projection contained in the Bayside District Specific Plan. The Promenade is becoming less unique and more like an average outdoor shopping mall. If allowed to continue, this trend will threaten the economic and social welfare of the downtown area. DISCUSSION The proposed ordinance would regulate the concentration of ground floor retail uses on the Promenade by limiting the total linear footage and square footage of retail on each block. The limits are based on current statistics with a 5% factor to allow property owners some flexibility. Because establishing concentration limits will likely necessitate changes to the Bayside District Specific Plan, which entails a lengthy process, the ordinance will be effective for 24 months or until new regulations are adopted. Promenade Uses Task Force At the last meeting Council expressed interest in establishing a Task Force to facilitate a broad-based discussion to identify the appropriate mix of uses on the Promenade, and identify amendments to the Bayside District Specific Plan. The Task Force will review the policy issues and recommend solutions with the assistance of staff and consultants. 2 The Task Force will be jointly managed by staff from the Bayside District Corporation, Planning and Community Development Department and Resource Management Department. The City has used several task force models in the past. These include the Downtown Urban Design Committee, the 415 Pacific Coast Highway Working Group, Downtown Parking Task Force and the Civic Center Working Group. The committees have been five to seven members comprised of Council members and representatives from appointed Boards and Commissions. The Bayside District Corporation recommends: Establishment of a small task force made up of representatives from City Council, Planning Commission member, Bayside District Corporation, property owner, merchant an/or restaurateur. The Task Force should be focused, adequately financed and facilitated. Experts including the Fransen Company should be retained. The goal of the Task Force should be to develop a mechanism for fostering and maintaining a healthy and diverse commercial mix on the Promenade and its effect on the surrounding area. The Task Force should complete their work by June 30, 2002. Based on the success of both the Downtown Parking Task Force and the Civic Center Working Group, staff recommends that the Task Force be composed of no more than 6 members and that it be small to ensure an effective and efficient process. A six member Task Force could be comprised of: 3 City Council members 2 Bayside District Corporation members 1 Planning Commissioner 3 The purpose of the Task Force is to facilitate public input through open meetings, and workshops, disseminate information, evaluate options and formulate recommendations to be forwarded to the City Council for consideration. It is estimated the work of the Task Force will take approximately 1-2 years. During this time Council may also be appointing other Task Forces such as the Commercial Corridor Parking Task Force. The first meeting of the Task Force will occur in early February. At that meeting the group will discuss the need for independent facilitation, consultant and staff assistance and the future work plan. CEQA STATUS The proposed ordinance is categorically exempt from CEQA under Class 5, minor alterations in land use limitations. Because the ordinance reflects present retail concentrations, it will not result in any new changes in land use or density and is therefore categorically exempt from CEQA. BUDGET/FINANCIAL IMPACT The recommendations in this report will have budget impacts. Consultant resources and future amendments to the Bayside Specific Plan will result in professional services expenditures. Until the Task Force meets and establishes the work plan, costs are difficult to predict. Staff will return to Council will future appropriation and consultant selection if necessary. RECOMMENDATION It is recommended that the Council adopt the proposed ordinance and establish a Promenade Uses Task Force. 4 Prepared by: Marsha Moutrie, City Attorney Barry Rosenbaum, Senior Land Use Attorney Suzanne Frick, Director Jay Trevino, AICP, Planning Manager Planning and Community Development Department Marsha Moutrie, City Attorney Barry Rosenbaum, Senior Land Use Attorney Attachment A: Proposed Ordinance 5