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SR-400-08-04 f) .- JCllYOf Santa Monica. City Council Report City Council Meeting: November 28, 2006 Agenda Item: "7c, To: From: Subject: Mayor and City Council Eileen P. Fogarty, Director of Planning and Community Development Ordinance for Introduction and First Reading to amend Santa Monica Municipal Code (SMMC) Section 9.04.08.06.020 to raise the maximum number of guest rooms that can be added to an existing hotel in the R2 and R3 districts. Recommended Action It is recommended that the City Council introduce for first reading an ordinance modifying Santa Monica Municipal Code (SMMC) Section 9.04.08.06.020 to raise the maximum number of guest rooms that can be added to an existing hotel in the R2 Low Density Multiple Residential and R3 Medium Density Multifamily Residential Districts. Executive Summary The applicant, CH Partners Limited Partnership, has proposed a Zoning Ordinance amendment to Santa Monica Municipal Code (SMMC) Section 9.04.08.06.020(a) to raise the maximum number of guest rooms that could be added to an existing hotel in the R2 and R3 Districts. The applicant submitted a Zoning Ordinance Amendment application in conjunction with a parking variance (V AR06-012) to allow the addition of 7 guest rooms without providing additional required parking for the Hotel Oceana, located at 849 Ocean Avenue. The parking variance was approved by the Planning Commission on September 20, 2006 but is not valid without the approval of the proposed ordinance. Consistent with existing regulations, an increase in the maximum 1 number of guest rooms would occur through the division of existing rooms. The proposed ordinance, as further discussed in this report, is contained in Attachment A. The following issue should be considered by the City Council in its review of the proposed project and is addressed in this report: . Is the proposed ordinance, to raise the maximum number of guest rooms that could be added to an existing hotel, consistent with the General Plan? Background On November 14, 1995, the City Council adopted an ordinance which amended the Zoning Ordinance to allow hotels existing as of January 1, 1995 as a permitted use in the R2 or R3 zone within the area bound by the centerline of Ocean Avenue to the west, the centerline of 14th Court to the east, the centerline of Wilshire Boulevard to the south and the centerline of Montana Avenue to the north (including those R2 and R3 parcels on the north side of Montana Avenue within the east and west boundaries) to add up to an additional 5% of the number of guest rooms or five rooms, whichever is less, through the subdivision of existing rooms, provided no additional floor area was added and parking requirements were met. Discussion Proposed Ordinance The applicant proposes an amendment to Santa Monica Municipal Code (SMMC) Section 9.04.08.06.020(a)(2) that will increase the maximum number of rooms that 2 could be added to existing hotels in the R2 and R3 districts from 5% to 25%, based on the number of rooms that existed on January 1, 1995. All other restrictions such as no increase in existing floor area, compliance with parking requirements, and subdivision of existing rooms would not change. The proposed ordinance would also modify SMMC Section 9.04.08.06.020(a)(3) to require that if a parking variance for additional rooms is requested, the applicant shall submit a parking analysis which demonstrates that the increase in guest rooms will not result in an adverse parking impact to the surrounding neighborhood. Analysis The proposed ordinance modifies the R2 and R3 district standards to allow the limited addition of hotel rooms within an existing hotel's floor area provided that the additional hotel rooms do not create an adverse parking impact to the surrounding residential area. Staff has determined that two hotels are subject to the proposed ordinance - the Hotel Oceana and the Cal Mar Hotel at 220 California Avenue. The Hotel Oceana, with 63 guest rooms, already has the maximum number of rooms permitted under the current ordinance. Staff could not find any building permits that would indicate that the Cal Mar Hotel has similarly added more than its existing 36 rooms. The proposed limitation of a 25% increase in the number of rooms is based upon the parking demand study provided by the applicant, which showed that only 43 out of 58 parking spaces are currently used when the Hotel Oceana is at full capacity. In order to verify the parking demand stated in the report, staff conducted site visits to confirm the 3 availability of parking and the study was also reviewed and accepted by the Transportation Management Division. The parking demand at the hotel leaves 15 parking spaces available for additional guest rooms at a ratio of 1 space for each guest room, which is consistent with Code requirements. Therefore, the maximum allowable increase in rooms would be 25% of the number of rooms that existed on January 1, 1995 or 15 guest rooms, whichever is less. While staff considered lowering the maximum number of rooms that could be added, the 25% limitation is appropriate because it is based on the availability of on-site parking at the Hotel Oceana. The Cal Mar Hotel currently has 31 parking spaces for 36 rooms and would not be able to add more rooms without meeting parking requirements. The following provides a summary of the parking situation and how the proposed ordinance would affect both hotels. Table 1: Comparison of hotels affected by proposed ordinance Number requested Number existin on Janua 1, 1995 Maximum allowed with proposed ordinance *Based on number of requested guest rooms The proposed 25% limitation would accommodate additional guest rooms through the subdivision of existing rooms while minimizing the parking and operational impacts from the hotel on the surrounding area. 4 As the Hotel Oceana had 60 guest rooms on January 1, 1995, this would allow the hotel to add up to 15 guest rooms (60 x 0.25) to the property while still requiring that there be no expansion in floor area, the increase in rooms is accomplished through the subdivision of existing rooms, and any increase in guest rooms would require additional parking. The proposed amendments would encourage the continued operation of two existing hotels that have been surrounded by multi-family development for many years. General Plan Consistency The proposed ordinance is consistent in principle with the goals, objectives, policies, land uses, and programs specified in the adopted General Plan in that Objective 1.1 of the Land Use Element states that the City seeks to, "Improve the quality of life for all residents by providing a balance of land uses consistent with fulfilling the City's role as a regional recreational and business center..." The proposed ordinance would facilitate the modest expansion of these important regional, visitor and business-serving uses without causing disruption to the surrounding residential neighborhood as the expansion in the number of rooms will be achieved through the subdivision of existing two-room suites, without the need for an expansion in floor area. Furthermore, the hotels would still have to comply with all Zoning Ordinance requirements and demonstrate that the increase in the number of rooms will not result in an adverse parking impact on the adjacent residential neighborhood if a parking variance is requested. 5 Planninq Commission Action The Planning Commission conducted a public hearing on the proposed ordinance and associated parking variance on September 20, 2006 and voted 6-0 (1 absent) to recommend approval of the proposed ordinance and approve the parking variance. In its review of the project, the Commission found that the proposed ordinance is consistent with the General Plan and is required to continue providing a balance between visitor-serving uses and the residential character of the area. By requiring the parking demand study if a parking variance is requested, the Commission found that the increase in guest rooms will not result in adverse parking impacts to the surrounding neighborhoods. The Planning Commission staff report and Statement of Official Action can be found on-line at the following address: http://santa-monica.orq/planninq/commission/aqendas/pc2006/ps2006092009-E . htm. Alternatives In addition to the recommended action, the City Council could consider the following with respect to the project: 1 . Adopt the proposed ordinance with modified text language and findings. 2. Direct staff to return with a revised ordinance with modified text language based on Council's direction; or 3. Disapprove the proposed ordinance. 6 Environmental Analysis The project is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15301 of the State CEQA Guidelines whereas the project consists of interior modeling that would result in the creation of 7 additional guest rooms without an increase in floor area and the proposed text amendment would not result in reasonably foreseeable impacts as future projects in the R3 zone would require individual environmental review. The project does not involve the demolition of any structures over 40 years old and the subject property is not listed on the Historic Resources Inventory. Public Outreach The public notice for this project was published in the Santa Monica Daily Press and mailed to all property owners and occupants within 300 feet of the subject property. The applicant met with the Wilshire-Montana Neighborhood Coalition (Wilmont) on September 18, 2006 and has also met with the adjacent Homeowners Association to explain the scope of the project and address concerns. Budget/Financial Impact Approval of the text amendment will enable renovation of the hotel. An incremental increase in transient occupancy taxes may result from the renovation, though the amount cannot be determined at this time. 7 Prepared by: Jing Yea, AICP, Senior Planner Approved: Attachments A. Proposed Ordinance Forwarded to Council: 8 ATTACHMENT A Proposed Ordinance 9 f: \atty\mu n i\laws \barry\hotelg uestrooms2. doc City Council Meeting 11-28-06 Santa Monica, California ORDINANCE NUMBER (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTION 9.04.08.06.020 TO INCREASE THE LIMITATION ON THE NUMBER OF GUEST ROOMS THAT CAN BE ADDED TO AN EXISTING HOTEL IN THE R2 and R3 DISTRICTS WHEREAS, Santa Monica Municipal Code Section 9.04.08.06.020 authorizes hotels existing as of January 1, 1995 in specified portions of the R2 or R3 zones to increase the number of guest rooms by up to an additional 5% through the subdivision of existing rooms, provided no additional floor area is added and all other Zoning Ordinance requirements are met, including parking for the additional rooms; and WHEREAS, on May 25, 2006, the CH Partners Limited Partnership, owner of the Hotel Oceana located at 849 Ocean Avenue, submitted a parking variance request and a proposed text amendment which would authorize the hotel to add seven hotel rooms without providing additional required parking; and WHEREAS, the proposed text amendment would increase the limitation on the number of guest rooms that could be added to existing hotels to twenty-five percent of the number of rooms that existed as of January 1, 1995, or fifteen room, whichever is less; and 1 WHEREAS, this text amendment would ensure that existing hotels in the R2 and R3 districts would continue to be compatible with the surrounding residential neighborhood while authorizing a modest expansion in the number of hotel rooms; and WHEREAS, the proposed text amendment would establish this balance between supporting existing regional, business and visitor-serving uses while protecting the character of the surrounding residential area by continuing to restrict the overall authorized increase in guest rooms, prohibiting any floor area expansion, and requiring that the City's on-site parking requirements be met for these new rooms, or if a parking variance is sought, that a parking analysis is submitted which demonstrates that the increase in guest rooms will not have an adverse parking impact on the surrounding neighborhood; and WHEREAS, the proposed text amendment would allow the Hotel Oceana, which has continuously operated since 1958, to add 7 additional guest rooms through the subdivision of existing rooms without an increase in floor area; and WHEREAS, the Planning Commission considered the proposed zoning text amendment at a public hearing on September 20, 2006; and WHEREAS, the Planning Commission recommended that the City Council approve the request as modified by staff; and WHEREAS, the City Council held a public hearing on this proposed text amendment on November 28, 2006; and WHEREAS, the proposed amendment is consistent in principle with the goals, objectives, policies, land uses, and programs specified in the adopted General Plan in that Objective 1.1 of the Land Use Element states that the City seeks to, "Improve the 2 quality of life for all residents by providing a balance of land uses consistent with fulfilling the City's role as a regional recreational and business center... n in that the proposed text amendment would facilitate ,the modest expansion of these important community-serving uses without causing disruption to the surrounding residential neighborhood, the expansion in the number of rooms will be achieved through a subdivision of existing rooms and not a floor area expansion, the hotels would still have to comply with all other Code requirements and demonstrate that the increase in guest rooms will not result in an adverse parking impact to the surrounding residential area if a parking variance is requested. WHEREAS, the public health, safety, and general welfare require the adoption of the proposed amendment to the R2 and R3 Districts in that the proposed amendment provides a balance between supporting existing visitor-serving uses and protecting the character of the surrounding residential area by continuing to restrict increases in guest rooms, prohibiting floor area expansion, and mandating compliance with on-site parking standards or requiring a parking demand study if a parking variance is requested, NOW, THEREFORE, THE CITY COUNCil OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOllOWS: 3 SECTION 1. Santa Monica Municipal Code Section 9.04.08.06.020 is hereby amended to read as follows: Section 9.04.08.06.020. Allowed land uses. Table 9.04-1 (Land Uses Allowed in Multiple Family Residential Districts) identifies allowed land uses in the R2, R3, and R4 zoning districts. Land uses designated with the letter "P" are permitted in that district subject to standards referenced under the Additional Land Use Regulations column. Land uses designated with the letters "PSP" require a Performance Standards Permit and are subject to further standards set forth under the Additional Land Use Regulations column. Land uses designated with the letters "CUP" require a Conditional Use Permit and are subject to further standards set forth under the Additional Land Use Regulations column. Land uses designated with the letter "L" are limited uses only authorized in accordance with the standards set forth under the Additional Land Use Regulations column. Land uses that have no letter designation are not permitted in that particular district. Rooftop parking is not permitted in any multiple family 4 residential district. Any land use not specifically authorized is prohibited. TABLE 9.04-1 LAND USES ALLOWED IN MULTIPLE FAMILY RESIDENTIAL DISTRICTS LAND USE R2 R3 R4 ADDITIONAL LAND USE REGULATIONS Bed and breakfast facilities CUP CUP CUP 9.04.20.12 Boarding houses CUP CUP CUP 9.04.20.12 Child day care centers * CUP CUP CUP 9.04.14.030 9.04.20.12 Clubs or lodges CUP 9.04.20.12 Community care facilities * CUP CUP CUP 9.04.20.12 Congregate housing * P P P Domestic violence shelters * P P P Homeless shelters * CUP CUP 9.04.20.12 Hospice facilities * P P P Hotels, existing as of 1/1/95 L L 9.04.08.06.020 (a) Hotels with incidental businesses CUP 9.04.20.12 Large family day care homes * PSP PSP PSP 9.04.12.030 9.04.20.08 Libraries CUP CUP 9.04.20.12 Multi-family dwelling units P P P 9.04.08.06.020 (b) Multi-family apartments where 25% of the units are 3-bedrooms or larger, 66% of the remaining units are 2 bedrooms or larger, and P P P the project is registered with the USGBC to receive a LEED rating of silver or higher level * Municipal parking structures CUP 9.04.20.12 Neighborhood grocery stores CUP CUP CUP 9.04.14.080 9.04.20.12 Offices and meeting rooms for charitable, youth and welfare CUP CUP CUP 9.04.20.12 organizati ons One story accessory buildings over 9.04.08.06.020 (c) 14 feet in height or two story CUP CUP CUP 9.04.10.02.110 accessory buildings up to a 9.04.14.110 maximum height of 24 feet 9.04.20.12 One-story accessory buildings and P P P 9.04.08.06.020 (c) structures up to 14 feet in height 9.04.10.02.100 One-story accessory living PSP PSP PSP 9.04.08.06.020 (c) quarters 9.04.08.06.020 (d) 5 9.04.12.080 9.04.20.08 Places of worship CUP CUP CUP 9.04.20.12 9.04.12.060 Private tennis courts PSP PSP PSP 9.04.20.08 Public parks and playgrounds P P P Residential care facilities * CUP CUP CUP 9.04.20.12 Rest homes CUP CUP CUP 9.04.20.12 Schools CUP CUP CUP 9.04.20.12 Senior group housing * P P P Senior housing * P P P Single room occupancy housing P P P Single-family dwellings * P P P 9.04.08.06.020 (e) Small family day care homes P P P Transitional housing * P P P Underground parking structures CUP CUP CUP 9.04.08.06.020 (f) 9.04.20.12 Yard sales P P P 9.04.08.06.020 (g) * Denotes Preferred Permitted Project per Table 9.04-2. Additional Preferred Permitted Projects include 100% affordable housing projects and projects that include the retention and preservation of a historic resource and comply with the Secretary of Interior's Standards for the Treatment of Historic Properties. USGBC shall mean the United States Green Building Council for certification under the Leadership Energy and Environmental Design Green Building Rating System (LEED). Additional Land Use Regulations for the R2, R3, and R4 Districts referenced in Table 9.04-1: (a) Hotels in existence as of January 1, 1995, or their replacement with a new hotel at an existing hotel site in conformance with the physical development standards in effect at the time of such replacement and located in a R2 or R3 zone in an area bounded by the centerline of Ocean Avenue to the west, the centerline of 14th Court to the east, the centerline of Wilshire Boulevard to the south and the centerline of Montana Avenue to the north, and including 6 those R2 and R3 parcels on the north side of Montana Avenue within the east and west boundaries, provided: (1) There is no increase in the floor area of the hotel after January 1, 1995; (2) Any increase in the number of rooms is accomplished through subdivision of rooms existing on January 1, 1995 and does not exceed twenty-five percent of the number of rooms existing on January 1, 1995, or five fifteen rooms, whichever is less; and (3) All other Zoning Ordinance requirements are met, including parking requirements for any addition of rooms after January 1, 1995. If a parkinq variance is requested. the applicant shall be required to submit a parkinq analysis which demonstrates that the increase in guest rooms will not result in an adverse parkinq impact to the surroundinq neighborhood. (b) Residential condominiums are also subject to the requirements set forth in subchapter 9.04.16 (Condominiums) and Chapter 9.20 (Subdivisions). (c) Accessory buildings shall be architecturally compatible with the principal structure(s). 7 (d) One-story accessory living quarters are limited to fourteen feet in height. A minimum parcel area of ten thousand square feet is required. (e) Single-family homes, including manufactured housing, must be placed on a permanent foundation. (f) Underground parking structures may be conditionally permitted only if the subject parcel or parcels were occupied by a surface parking lot at the time of adoption of this Chapter, the parcel(s) is not adjacent to a parcel in the C2 District, the ground level above the underground parking structure is used for residential or public park and open space uses, the structure is associated with an adjacent commercially zoned parcel, and the vehicle access to the underground parking is from the commercially zoned parcel and as far from the residentially zoned parcel as is reasonably possible. (g) Yard sales are limited to two per calendar year, for each dwelling unit, for a maximum of two days each. SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. 8 SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City 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 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption. APPROVED AS TO FORM: 9