SR-410-001 (26)
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11-8
SEP - 8 1987
CjED:SF:KR:nh
council Mtg: September 8, 1987
santa Monica, california
TO: Mayor and City Council
FROM: City staff
SUBJECT: Recommendation to Adopt Resolutions Approving General
Plan Amendments 02, 03, and 07 to Modify Policy 1.3.7
of the Land Use Element of the General Plan, Policy
4.1.35 of the Third street Mall Specific Plan and add
Policy 4.1.60 to the Third Street Mall Specific Plan.
INTRODUCTION
This report recommends that the City Council adopt three
resolutions approving General Plan Amendments 02, 03 and 07 to
modify policy 1.3.7 of the Land Use Element of the General Plan,
to modify Policy 4.1. 35 of the Third street Mall Specific Plan
and to add policy 4.1.60 to the Third street Mall specific Plan.
The proposed amendments will Clarify the policies in the two
documents.
BACKGROUND
On August 3, 1987, the Planning commission conducted a public
hearing on a proposed 7 story 119,525 sq. ft. mixed use
development at 309 Broadway (DR 374, ErA 842, CUP 453a, GPA-02,
GPA-03) (Exhibit A).
In reviewing the project the Planning
Commission considered General Plan Amendment 02 which modifies
Policy 4.1.35 of the Third street Mall Specific Plan and General
Plan Amendment 03 which modifies Policy 1. 3.7 of the Land Use
Element of the General Plan. The purpose of Amendment 02 is to
provide some flexibility in the required l5' setback above 30'
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SEP .. aWl
for buildings located on cross streets adjacent to the Mall. The
purpose of Amendment 03 is to bring the Land Use Element into
conformity with the Third street Mall Specific Plan, adopted
August l2, 1986.
At the August 3, 1987 meeting the five Planning Commissioners
present voted unanimously to recommend approval of the proposed
GPA-02 (Exhibit B). The Planning commission directed Planning
staff to prepare Amendment 03 to the Land Use Element and
Amendment 07 to the Third street Mall Specific Plan. Amendment
03 indicates that the policies contained in the Third street Mall
Specific Plan govern development in the area and Amendment 07
reflects a 6 story, 84' height limit within the Specific Plan
area with the ability to permit a seventh story within 84 feet if
said story is developed as the upper loft area with internal
circulation to residential units on the sixth floor. At the
August 17, 1987 Planning commission hearing the six commissioners
present voted unanimously to recommend approval of GPA-03 and
GPA-07 (Exhibits C, D, E).
DESCRIPTION OF AMENDMENTS
POLICY 4.l.35 OF THIRD STREET MALL SPECIFIC PLAN
Policy 4.1.35 currently states as follows:
Permit buildings to be constructed to a maximum height of 56 feet
or four stories, with a setback above 30 feet on the Mall
frontage of 36.9 measured from the horizontal, and on the cross
street frontage a setback above 30 feet of 15 feet for parcels
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lOO feet or greater in Mall width or depth measured from the
cross-street.
The Planning Commission recommended that Policy 4.1.35 be amended
in order to provide latitude and allow the 15 foot setback to
occur above 45 feet in height in cases where it is necessary to
maintain visual continuity with adjacent buildings.
The proposed text for the amendment is as follows:
Policy 4.1. 35
Permit buildings to be constructed to a maximum height of 56 feet
or 4 stories, with a setback above 30 feet on the Mall frontage
of 36'-9" measured from the horizontal and on the cross street
frontage a setback above 30 feet of 15 feet for parcels 100 feet
or greater in Mall width or depth measured from the cross-street.
The 15 foot setback may be permitted above 45 feet (instead of 30
feet) if it can be determined by the Planning Commission that
such a setback is necessary to maintain the District's existing
character and to provide visual continuity with nearby
structures.
POLICY 1.3.7 OF THE LAND USE AND CIRCULATION ELEMENT
Policy 1.3.7 currently states as follows:
Once the Third street Mall and Downtown Core Specific Plan is
approved by the City, allow in the Downtown Core a maximum of 6
stories (84') and 3.5 FAR if the development conforms to the Land
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Use and Development Standards required in the adopted Specific
Plan.
The proposed amendment to pOlicy 1.3.7 deletes the language
requiring a maximum height of 6 stories (841) and 3.5 FAR for the
Downtown Core and indicates that the policies contained in the
Third Street Mall Specific Plan govern development with the
Specific Plan district.
The proposed text for the amendment is as follows:
Policy l.3.7. Once the Third Street Mall Specific Plan is
approved by the City, the land use and development policies
outlined in the adopted specific Plan shall govern development
within the Specific Plan district.
POLICY 4.1.60 THIRD STREET MALL SPECIFIC PLAN
As adopted, the Third street Mall Specific Plan does not put a
limitation on the number of stories permitted within the 84 foot
height limit. The proposal would add Policy 4.1.60 to the Third
Street Mall Specific Plan setting the height limit at 6 stories,
84' and a2lowing a seventh story within the 84' height limit in
special circumstances.
The proposed text for Policy 4.1.60 is as follows:
Other policies within this document notwithstanding, permit
structures to be constructed to a maximum height of 6 stories, 84
feet. A seventh story may be permitted within the 84 foot height
limit with Planning Commission approval if said story is
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developed as an upper loft area with internal circulation to the
residential units on the sixth floor.
CONCLUSION
The proposed amendments to the Land Use and Circulation Elements
and the Third Street Mall Specific Plan are consistent with the
intent of these documents in that they provide clarification and
latitude while encouraging the revitalization of the Third Street
Mall specific Plan area.
BUDGET/FINANCIAL IMPACT
The recommendations in this report do not have a budget or fiscal
impact.
RECOMMENDATION
It is respectfully recommended that the City Council:
1. Adopt the Resolutions shown in Exhibits F, G, and H
approving General Plan Amendments 02, 03 and 07 to
modify Policy 1.3.7 of the Land Use Element of the
General Plan, Policy 4.1. 35 of the Third street Mall
Specific Plan and add Policy 4.1.60 to the Third street
Mall Specific Plan.
2. Certify the Initial study and Negative Declaration
prepared for the project and related General Plan
Amendments.
Prepared by: Karen Rosenberg, Associate Planner
Suzanne Frick, Principal Planner
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Exhibits:
SF:KR:nh
PC/CCGPA
08/27/87
Planning Division
community and Economic Development Department
A. Planning Commission staff Report, August 3,
1987.
B. Proposed Amendment to the Third street Mall
Specific Plan (GPA-02).
c. Planning Commission staff Report, August 17,
1987.
D. Proposed Amendment to the Land Use Element of
the General Plan (GPA-03).
E. Proposed Amendment to the Third street Mall
Specific Plan (GPA-07).
F. Recommended City Council Resolution for
Adoption (GPA-02).
G. Recommended City Council Resolution for
Adoption (GPA-03).
H. Recommended city Council Resolution for
Adoption (GPA-07).
I. Initial study and Negative Declaration for 309
Broadway
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EXHIBIT B
PROPOSED AMENDMENT GPA-02 TO THE
THIRD STREET MALL SPECIFIC PLAN
4.1.35 Permit the buildings to be constructed to a maximum height
of 56 feet or 4 stories, with a setback above 30 feet on
the Mall frontage of 36' -9" measured from the horiz ontal
and on the cross street frontage a setback above 30 feet
of 15 feet for parcels 100 feet or greater in Mall width
or depth measured from the cross-street. The 15 foot
setback may be permitted above 45 feet (instead of 30
feet) if it can be determined by the Planning Commission
that such a setback is necessary to maintain the
District's existing character and to provide visual
continuity with nearby structures.
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EXHIBIT D
PROPOSED AMENDMENT GPA-03 TO THE
LAND USE ELEMENT OF THE GENERAL PLAN
1.3.7 Once the Third street Mall specific Plan is approved by
the city, the land use and development policies outlined
in the adopted Specific Plan shall govern development
within the specific Plan district.
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EXHIBIT E
PROPOSED AMENDMENT GPA-07 TO
THIRD STREET MALL SPECIFIC PLAN
4.1.60 Other policies within this document notwithstanding,
permit structures to be constructed to a maximum height of
6 stories, 84 feet. A seventh story may be permitted
within the 84 foot height limit with Planning Commission
approval if said story is developed as the upper loft area
with internal circulation to the residential units on the
sixth floor.
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e: x H I a Ii A
CITY PLANNING DIVISION
Community and Economic Development Department
MEMORANDUM
DATE: August 3, 1987
TO: The Honorable Planning Commission
FROM: Planning staff
SUBJECT: DR 374, EIA 842, CUP 453a,b, GPA-02, GPA-03, To Permit
the Removal of an Existing 50,000 Square Foot
Commercial Building and the Construction of a Seven
Story Square Foot Mixed-Use Commercial/Residential
Development.
Address:
Applicant:
309 Broadway
Janss Corporation
SITE LOCATION AND DESCRIPTION
The sUbject property is a l5,000 square foot parcel located on
the northeast corner of Broadway and the Third street Mall having
a frontage of 150 feet on Broadway. Surrounding uses consist of
commercial uses to the north (C3), Santa Monica Place to the
south (C3), commercial uses to the east (C3) and commercial uses
to the west (C3).
Zoning District:
C3
Land Use District:
Downtown Commercial Core
Parcel Area:
l50' X 100'
PROPOSED PROJECT
The proposed project is to permit the removal of a 50,000 square
foot commercial building and the constructin of a 7 story mixed
use development with four movie theatres with 1120 seats, retail
space totalling 14,300 square feet including a 200 seat
restaurant, 57,301 square feet of offices on the second through
fourth floors and 32 residential units on the fifth through
seventh floors. Total square footage for the project is 119,525
square feet. A total of 218 on-site parking spaces will be
provided on 4 levels of subterranean parking with alley access.
sixteen of the 32 residential units will be one bedroom units and
16 units will be one bedroom units with loft areas. The lofts
exceed 1/3 of the floor area of the room below them and therefore
the level is considered a 7th story. The applicant proposes to
pay an in lieu fee to satisfy the Program 12 requirement.
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As proposed, the project requires an amendment to Policy l.3.7 of
the Land Use Element to permit a 7 story building within the 84
foot height limit and to permit an amendment to POlicy 4.1.35 of
the Third Street Mall Specific Plan allowing the required 15'
setback on Broadway to occur above 45' rather than 3D' in height.
A Conditional Use Permit is required for the proposed 200 seat
restaurant in that alcohol sales are proposed, and to permit the
construction of a building over 6 stories in height within the C3
District.
MUNICIPAL CODE AND GENERAL PLAN CONFORMANCE
The proposed project is consistent with the Municipal Code and
requires a General Plan Amendment and an amendment to the Third
Street Mall Specific Plan as shown in Attachment A.
CEQA STATUS
An Initial study has been prepared for this project and approval
of a negative declaration is recommended. copies of the Initial
Study were distributed to the Planning Commission at the
beginning of the 30 day public review period. Comments received
and the responses to the comments are incorporated into the Final
Initial study (Exhibit B).
FEES
This project is SUbject to the Housing and Parks Mitigation
Program contained in the adopted Land Use and Circulation Element
of the General Plan. The project mitigation measures may be
satisfied by an in-lieu fee paid to the City as outlined in the
Conditions of approval for this project.
Under Ordinance 1367 (CCS), the developer also has the option to
satisfy the proj ect Mitigation Measures by providing low and
moderate income housing or developing new park spaces, on or off
the proj ect site. The number of units of housing or square
footage of park space to be provided by developer shall be
established at the level equal to the amount of in-lieu payment
required. Should the developer decide to Meet the project
mitigation measures by providing housing and/or park space the
actual amount provided will be determined prior to issuance of a
building permit.
ANALYSIS
Relationship to Third street Mall Specific Plan
The proposed project conforms with the general policies contained
in the Third street Mall Specific Plan as described in the Land
Use Section of the Initial Study. The project falls with Zone 1,
Zone 2, the Anchor Use Overlay Zone (Subarea B) and the
Passageway overlay Zone (Subarea D) as identified in the Third
Street Mall Specific Plan. The policies for the Anchor Use
Overlay and Passageway Overlay Zones supercede the policies of
Zone 1 and 2. Planning staff maintains that since one of the
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goals of the Specific Plan is to provide for the development of
passageways linking the Mall with the parking structure that the
policies for the Passageway Overlay Zone should apply to the
portion of the project which falls within this zone and the
policies for the Anchor Use Overlay Zone should apply to the
portion of the project which only falls within this overlay zone.
Therefore, in compliance with the policies of the Passageway
Overlay Zone, the project includes a 201 public passageway to be
dedicated as an easement to the City, is 83 feet in height with
the height above 56' being devoted to the residential units, and
has a Floor Area Ratio of 3.5. The portion of the project which
is located within the Anchor Use OVerlay Zone is a maximum of 4
stories, 56' in height and has a floor area ratio of 2.99.
pOlicy 4.1. 35 of the Third street Mall specific Plan requires
that on the cross street frontages a 15 foot setback be required
above 30 feet in height. The applicants have requested an
amendment to this policy in order to provide the l5 foot setback
above 45 feet rather than 30 feet. Planning staff supports this
amendment in that the intent of the policy to reduce the
perceived mass of the building which will be achieved and at the
same time this setback will align with the roofline of the
adjacent building on Broadway making the two buildings more
visually compatible.
Relationship to Land Use and Circulation Element
Policy 1.3.7 of the Land Use Element states that once the Third
street Mall Specific Plan is approved allow a maximum of 6
stories (84') and 3.5 FAR if the development conforms to the land
use and development standards required in the adopted Specific
Plan. However, Policy 4.l.56 of the Third Street Mall Specific
Plan permits passageway structures to be constructed to a maximum
of 84 feet if the height between 56' and 84' is devoted to
residential units and it does not put a limitation on the number
of stories. In that the portion of the proposed project which is
located within the passageway overlay zone is 7 stories, 83 feet
in height, and is devoted to residential units above 56 feet, the
applicant has requested a General Plan Amendment to Policy 1.3.7
of the Land Use Element. This amendment is to eliminate the 6
story height limit as long as the structure does not exceed 84
feet and conforms to the policies in the Specific Plan. Planning
staff supports this amendment in that it will clarify the policy
in the Land Use Element and make it consistent with the Specific
Plan. Additionally in accordance with Section 9116Bl.(SMMC), a
Conditional Use Permit is required for buildings in excess of 6
stories.
Project Design
The proposed project is designed to incorporate the facade of the
existing El Mira Theatre. (now Cine Latino) which was built in
1933 by Norman W. Alpaugh. The building was identified in the
city's Historic Resources Inventory as potentially eligible for
listing on the National Register of Historic Places with the
condition that it be restored to its original appearance.
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Recommended conditions of approval as outlined in the Initial
study include restoration of the exterior facade using the
Secretary of Interior's Standards for Rehabilitation, appropriate
replacement of the marquee to reflect the historic character of
the building, and retention and replacement of the terrazzo
pavement at the entrance.
The proposed project is designed to emphasize a two story
elevation of brick along the Third street Mall and a three story
brick elevation along Broadway which provides a visual link to
the Lincoln Savings Bank directly to the east and the Keller
Block to the west. The upper floors of the building are set back
and are constructed of plaster in order to highlight their visual
independence and reduce the perceived visual mass of the
building. The project includes detailing such as soldier brick
lintels, angled brick stringcourses, and a reference to the
theatre pylon motif along a ground floor storefront area helping
to create a transition between this building and some of the
nearby historic buildings. In their review the Architectural
Review Board should pay particular attention to the use of these
historical references and may consider more extensive use of this
detailing. The Architectural Review Board should also pay
particular attention to the window treatment, glazing, exterior
colors, textures, materials and patio landscaping.
Traffic Analysis
A traffic analysis was prepared by stevens-Garland Associates and
the study concluded that the project would not have a significant
impact on traffic in the area even when combined with traffic
generated by area wide growth and related projects.
The proposed project is located within the Downtown Parking
Assessment District and therefore the provision of on-site
parking is not required, however the applicant proposes to
provide a total of 21B subterranean parking spaces with access
from the alley. Additionally, the applicant will be assessed
fees pursuant to Resolution No. 72B6(CCS) which established the
Third street Mall and Downtown Parking Improvement District.
These fees will be adjusted to reflect the provision of on site
parking which is made available to the general pUblic (does not
include spaces reserved for residents or employees) .
On July 15, 19B7 the Architectural Review Board (ARB) reviewed
this project on a preliminary basis in order to provide the
applicant with early comments on the design. One of the concerns
raised by the Board members was the configuration of the driveway
t.o the parking and the limited driver visibility that it would
provide. As a result of these comments the applicant has
redesigned the ramp and set it back off the alley in order to
provide more visibility. The city's Parking and Traffic Engineer
has reviewed this modification and finds this solution to be
acceptable.
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Conditional Use Permit For Restaurant With Liquor License
The proposed project includes a 200 seat restaurant with alcohol
sales which requires a Conditional Use Permit. At this time
however, the applicants do not have a restaurant operator and
therefore have not provided a seating layout and have not
specified the type of alcohol license requested. Within a 500
foot radius of the project there are a total of 6 on-site general
spirits licenses for bona fide eating places, 11 on-site beer and
wine licenses for bona fide eating places, 2 on sale general
licenses for a public premises, 2 beer and wine licenses for
off-site consumption, one general spirits license for a private
club and a special on-site general spirits license. In that the
details of the restaurant operation as pertaining to the alcohol
license are not specified at this time, Planning staff recommends
that action on the Conditional Use Permit be deferred until such
time as those details can be provided.
9,onditional Use Permit for 7 story structure
section 9l16B of the Municipal Code states that a conditional Use
Permit is required for construction of any building over 6
stories 90 feet. The increased height shall only be permitted on
the basis of an environmental and fiscal analysis satisfactorily
demonstrating that no significant adverse environmental or fiscal
impacts would result because of the increased height. As
documented in the Initial study prepared, there would be no
adverse impacts resulting from the increased height of this
project.
Conclusion
The proposed development of a 7 story mixed use complex with the
retention and incorporation of the EI Miro Theatre facade will
contribute to the revitalization of the Third street Mall by
providing a mixture of uses that will generate pedestrian
activity on the Mall during the daytime and evening hours.
RECOMMENDATION
Planning staff respectfully recommends approval of DR 374, CUP
453a and EIA 842, with the following findings and conditions.
Planning staff recommends that the commission recommend approval
of GPA-02, GPA-03 and direct the recommendation to the council
for their consideration. staff further recommends that the
Commission defer action on CUP 453b until such time as details of
the restaurant operation can be provided.
DEVELOPMENT REVIEW FINDINGS
1. The development is consistent with the findings and pur-
pose of Ordinance 1321 as set forth below.
2. The physical location and placement of proposed structures
on the site are compatible with and relate harmoniously to
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surrounding sites and neighborhoods in that the project is
designed with a variety of setbacks and articulation; the
detailing reflects the historic character of the nearby
buildings on the Mall; the project includes the retention
and incorporation of the EI Miro Theatre facade and the
lower floors visually relate to the adjacent Lincoln
Savings Building and the Keller Block by virtue of the
extensive use of brick.
3. The existing and/or proposed rights-of-way and facilities
for both pedestrian and automobile traffic will be ade-
quate to accommodate the anticipated results of the pro-
posed development including off-street parking facilities
and access thereto in that a total of 218 on site parking
spaces will be provided with access from the alley and the
project is located within the Downtown Parking Assessment
District and will be subject to fees associates with this
district.
4. The existing and/or proposed public and/or private health
and safety facilities (including, but not limited to,
sanitation, sewers, storm drains, fire protection devices,
protective services, and public utilities) will be ade-
quate to accommodate the anticipated results of the pro-
posed development.
5. The proposed development is consistent with the General
Plan of the city of Santa Monica and the Zoning Ordinance
in that the project will conform to the height, bulk, use
and urban design policies for the Downtown Commercial Core
as specified in the Land Use Element of the General Plan
and conform to the appropriate C3 standards contained in
the zoning Ordinance.
CONDITIONAL USE PERMIT FINDINGS FOR 7 STORIES
6. The proposed use and location are in accordance with good
zoning practice, in the public interest and necessary that
substantial justice be done in that the proposed project
is designed to provide a mixture of retail, commercial and
residential uses which will help generate pedestrian ac-
tivity on the Third street Mall in the evening hours and a
considerable set back is provided on the upper floors in
order to reduce the perceived visual mass of the building.
7. The proposed use is compatible with existing and potential
uses within the general area, traffic or parking conges-
tion will not result, the public health, safety and
general wel fare are protected and no harm to adj acent
properties will result in that the Initial study demon-
strated that no significant adverse environmental or fis-
cal impacts will occur as a result of the increased
height.
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FINDINGS FOR GENERAL PLAN AMENDMENT (POLICY l.3.7 LAND USE & CIR-
CULATION ELEMENT)
1. The public necessity, public convenience and general wel-
fare require the proposed amendment to Policy 1.3.7 in
that the amendment will clarify the policy in the Land Use
Element and make it consistent with the Specific Plan by
eliminating the limitation on stories as long as the
development meets the criteria in the Specific Plan.
FINDINGS FOR GENERAL PLAN AMENDMENT (POLICY 4.1.35 THIRD STREET
MALL SPECIFIC PLAN)
1. The public necessity, public convenience and general wel-
fare require the proposed amendment to Policy 4.1. 35 to
allow the l5 foot setback on cross streets to occur above
45' rather than 30' in that the intent of the policy to
reduce the perceived building mass will be achieved while
providing latitude in order to achieve a design which is
more visually compatible with adjacent structures.
SPECIAL CONDITIONS
1. The Architectural Review Board, in their review, shall pay
particular attention to the project's pedestrian orienta-
tion and amenities; scale and articulation of design ele-
ments; exterior colors, textures and materials; window
treatment; glazing; landscaping; and a signage program.
2. On-si te parking shall be made available without cost to
building customers and employees.
3. A Park and Recreation Facilities Tax of $200.00 per
residential unit shall be due and payable at the time of
issuance of a building permit for the construction or
placement of the residential unites) on the subject lot,
per and subject to the provisions of Section 6670 et seq.
of the Santa Monica Municipal Code.
4. The Architectural Review Board should consider requiring
additional use of architectural detailing which is reflec-
tive of the historical character of nearby buildings on
the mall.
5. To the extent feasible the applicant shall utilize the
Secretary of Interior's Standards for Rehabilitation for
the restoration of the El Miro Theatre facade.
6. The Architectural Review Board should carefully review the
design of the theatre marquee to insure that it is com-
patible with and reflects the historic character of the
existing theatre facade.
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7. The Architectural Review Board should carefully review the
paving treatment and should consider requiring the exist-
ing terrazzo pavement at the theatre entrance to be re-
stored and/or replaced with a similar treatment.
8. That the applicant shall be subj ect to fees pursuant to
Resolution No. 7286(CCS) which established the Third
street Mall and Downtown Parking Improvement District.
9. Parking for the residential units shall be assigned and
designated in the parking area through the use of appro-
priate signage. A total of 64 parking spaces shall be
provided for the residential units and their layout shall
be subject to approval by the Traffic Engineer prior to
issuance of a building permit.
10. Prior to issuance of a Certificate of Occupancy, the
structure shall be evaluated by a certified acoustical
engineer to ensure that acceptable interior noise levels
are maintained.
11. Construction hours shall be limited to those established
in Section 4204(SMMC).
12. The ground floor of this project shall be devoted to cus-
tomer intensive uses such as comparison retail, res-
taurants, food sales, entertainment, consumer repairs,
cultural and informational services per policies 4.1.l and
4.1.37 of the Third street Mall Specific Plan.
STANDARD CONDITIONS
1. Plans for final design, landscaping, screening, trash en-
closures, and signage shall be subject to review and ap-
proval by the Architectural Review Board.
2. Minor amendments to the plans shall be subject to approval
by the Director of Planning. A significant change in the
approved concept shall be subject to Planning commission
Review. Construction shall be in substantial conformance
with the plans submitted or as modified by the Planning
Commission, Architectural Review Board or Director of
Planning.
3. The rights granted herein shall be effective only when
exercised within a period of one year from the effective
date of approval. Upon the written request of the appli-
cant, the Director of Planning may extend this period up
to an additional six months.
4. The applicant shall comply with all legal requirements
regarding provisions for the disabled, including those set
forth in the California Administrative Code, Title 24,
Part 2.
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5. Final parking lot layout and specifications shall be sub-
ject to the review and approval of the Parking and Traffic
Engineer.
6. Refuse areas, storage areas and mechanical equipment shall
be screened in accordance with Sec. 9127J.2-4 (SMMC). Re-
fuse areas shall be of a size adequate to meet on-site
need.
7. The operation shall at all times be conducted in a manner
not detrimental to surrounding properties or residents by
reason of lights, noise, activities, parking or other
actions.
8. Project design shall comply with the building energy reg-
ulations set forth in the California Administrative Code,
Title 24, Part 2, (Energy Conservation standards for New
Residential Buildings), such conformance to be verified by
the Building and Safety Division prior to issuance of a
Building Permit.
9. Openable windows shall be provided throughout the project,
in a manner consistent with applicable building code and
energy conservation requirements.
10. Natural light shall be provided in at least one bathroom
in each dwelling unit.
ll. Street trees shall be maintained, relocated or provided as
required in a manner consistent with the City'S Tree Code
(Ord. 1242 CCS), per the specifications of the Department
of Recreation and Parks and the Department of General Ser-
vices. No street tree shall be removed without the ap-
proval of the Department of Recreation and Parks.
12. Street and/or alley lighting shall be provided on public
rights-of-way adjacent to the project if and as needed per
the specifications and with the approval of the Department
of General Services.
13. This determination shall not become effective for a period
of ten days (twenty days for Development Review Permits
and Conditional Use Permits) from the date of determina-
tion or, if appealed, until a final determination is made
on the appeal.
PROJECT MITIGATION FEE CONDITION
1. In accordance with Ordinance 1367 (CCS) prior to issuance
of a building permit the developer shall execute an ir-
revocable letter of credit or other form of security ac-
ceptable to the City for the payment of an in-lieu fee for
housing equal to $2.25/sq.ft. for the first 15,000 sq. ft.
of net rentable office floor area and $s.OO/sq.ft. for the
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remaining net rentable floor area. This fee shall be ad-
justed for inflation by the percentage change in the Con-
sumer Price Index ("CPI") between October 1984 through the
month in which payment is made. Upon mutual agreement of
the developer and the city, the developer may satisfy the
Project Mitigation Measures by providing low and moderate
income housing or developing new park space on or off the
proj ect site. To fulfill this obligation an agreement
shall be secured in writing by the developer and approved
by the City Attorney and city staff prior to issuance of a
building permit. The applicant may satisfy this provision
by in-kind provision of housing or parks to the extent
permitted under Ordinance 1367.
INCLUSIONARY UNIT CONDITIONS
1. The developer shall covenant and agree with the City of
Santa Monica to the specific terms, conditions and
restrictions upon the possession, use and enjoyment of the
subject property, which terms, conditions and restrictions
shall be recorded with the Los Angeles County Recorder's
Office as a part of the deed of the property to ensure
that five affordable units are provided and maintained
over time and through subsequent sales of the property.
An affordable unit shall be defined as being affordable to
households with incomes not exceeding 120% of the (000)
Los Angeles County median income, expending not over 25%
of monthly income on housing costs, as specified by the
Housing Division of the Department of Community and
Economic Development.
This agreement shall be executed and recorded prior to
approval of the Final Map. Such agreement shall specify
1) responsibilities of the developer for making the
unites) available to eligible tenants and 2) responsibili-
ties of the city of Santa Monica to prepare application
forms for potential tenants, establish criteria for
qualifications, and monitor compliance with the provisions
of the agreement.
This provision is intended to satisfy the inclusionary
housing requirements of Program 12 of the Housing Element
of the General Plan of the City of Santa Monica ("program
12") . Developer may satisfy the obligations created by
this Agreement by demonstrating to the Director of Plan-
ning compliance with any ordinance or resolution adopted
by the City within two years from the effective date of
this approval, which is intended to provide an alternative
method for compliance with Program 12. An alternative
method may be, but is not limited to, the payment of a fee
in-lieu of providing an Affordable Unit.
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Prepared by: Karen Rosenberg, Associate Planner
KR : nh
DR374
07/30/87
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ATTACHMENT A
MUNICIPAL CODE AND GENERAL PLAN CONFORMANCE
Land Use
Category Municipal Code Element
Permitted Use C3: Permits Downtown Core:
Retail, Permits
Office, Retail,
Residential Office,
Residential
Height 6 Stories, 90' 6 stories, 84'
or up to l2
Stories with
CUP
F.A.R. N/A 3.5
Parking
None Required
within Parking
Assessment
District
- 12 -
Project
Mixed Use Retail,
Office,
Residential
Development
7 stories, 83'
(Requires
General Plan
Amendment)
Passageway
Overlay: 3.5
Anchor Use
Overlay: 2.9
218 On site
Parking Spaces
Provided
EXHIBIT B
PROPOSED AMENDMENT GPA-02 TO THE
THIRD STREET MALL SPECIFIC PLAN
4.1.35 Permit the buildings to be constructed to a maximum height
of 56 feet or 4 stories, with a setback above 30 feet on
the Mall frontage of 361-9" measured from the horizontal
and on the cross street frontage a setback above 30 feet
of 15 feet for parcels 100 feet or greater in Mall width
or depth measured from the cross-street. The 15 foot
setback may be permitted above 45 feet (instead of 30
feet) if it can be determined by the Planning commission
that such a setback is necessary to maintain the
District's existing character and to provide visual
continuity with nearby structures.
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CITY PLANNING DIVISION
Community and Economic Development Department
MEMORANDUM
DATE: August 17, 1987
TO: The Honorable planning Commission
FROM: Planning staff
SUBJECT: GPA-03, GPA-07, To Permit an Amendment to Policy 1.3.7
of Land Use and Circulation Elements and add Policy
4.1.60 to the Third Street Mall specific Plan.
BACKGROUND
At the August 3, 1987 Planning Commission meeting, the commission
directed Planning staff to prepare amendments to the Land Use and
Circulation Elements and the Third street Mall Specific Plan to
reflect a 6 story, 841 height limit within the Specific Plan area
with the ability to allow a seventh story within the 84 foot
height limit if said story is developed as the upper loft area
with internal circulation to residential units on the sixth
floor.
POLICY 1.3.7 OF THE LAND USE AND CIRCULATION ELEMENTS
Policy 1.3.7 currently states as follows:
Once the Third street Mall and Downtown Core Specific Plan is
approved by the city, allow in the Downtown Core a maximum of 6
stories (841) and 3.5 FAR if the development conforms to the Land
Use and development standards required in the adopted Specific
Plan.
Planning staff recommends that this Policy be amended to direct
the pUblic to the pOlicies contained in the Third street Mall
Specific Plan.
Planning staff proposes the following language:
Policy 1.3.7. Once the Third Street Mall Specific Plan is
approved by the City, the land use and development pol icies
outlined in the adopted Specific Plan shall govern development
within the Specific Plan district.
POLICY 4.1.60 THIRD STREET MALL SPECIFIC PLAN
The Third Street Mall Specific Plan as adopted does not put a
limitation on the number of stories permitted within the 84 foot
height limit. Planning staff recommends that a general policy
(Policy 4.l.60) be added to the Third Street Mall Specific Plan
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setting the height limit at 6 stories, 84 feet and allowing a
seventh story in special instances.
The proposed language for POlicy 4.1.60 is as follows:
Other policies within this document nonwithstanding, permit
structures to be constructed to a maximum height of 6 stories, 84
feet. A seventh story may be permitted within the 84 foot height
limit with Planning Commission approval if said story is
developed as the upper loft area with internal circulation to the
residential units on the sixth floor.
RECOMMENDATION
It is respectfully recommended that the Planning Commission
approve GPA-03, GPA-07 with the following findings, and direct
the recommendation to the City Council for their consideration on
September 8, 1987.
FINDINGS FOR GENERAL PLAN AMENDMENT (POLICY 1. 3.7 LAND USE AND
CIRCULATION ELEMENT
1. The public necessity, public convenience and general welfare
require the proposed amendment to Pol icy 1. 3 . 7 in that the
amendment will clarify and direct the public to the Third
Street Mall Specific Plan for land use and development
policies within the Specific Plan area.
FINDINGS FOR GENERAL PLAN AMENDMENT (POLICY 4.1.60 THIRD STREET
MALL SPECIFIC PLAN)
1. The public necessity, public convenience and general welfare
require the proposed amendment to the Third Street Mall
Specific Plan in that the addition of Policy 4.1.60 will
clarify the number of stories permitted within the specific
Plan area and permit some latitude within the 84 foot height
limit for residential development in order to encourage its
development within the Specific Plan area.
Prepared by: Karen Rosenberg, Associate Planner
KR: nh
GPAO 3
08/07/87
- 2 -
/'
EXHIBIT D
PROPOSED AMENDMENT GPA-03 TO THE
LAND USE ELEMENT OF THE GENERAL PLAN
1.3.7 Once the Third street Mall Specific Plan is approved by
the City, the land use and development policies outlined
in the adopted Specific Plan shall govern development
within the Specific Plan district.
EXHIBIT E
PROPOSED AMENDMENT GPA-07 TO
THIRD STREET MALL SPECIFIC PLAN
4.1.60 Other policies within this document notwithstanding,
permit structures to be constructed to a maximum height of
6 stories, 84 feet. A seventh story may be permitted
within the 84 foot height limit with Planning Commission
approval if said story is developed as the upper loft area
with internal circulation to the residential units on the
sixth floor.
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FISCAL IMPACT ANALYSIS
for the
BROADWAY/THIRD STREET MALL MIXED USE PROJECT
Prepared for:
CITY OF SANTA MONICA
1685 Maln Street
Santa Monica, California 90401-3295
Prepared by:
PBR REAL ESTATE fINANCIAL SERVICES
18012 Sky Park Circle
Irvine, Callfornla 92714
July 1987
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r TABLE OF CONTENTS
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r Section No. Title 1. 'page No.
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1.0 INTRODUCTION 1
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2.0 PROJECT DESCRIPTION 2
r 3.0 PROJECT IMPACTS 3
3.1 ANNUAL REVENUES 3
r 3.1.1 Secured Property Tax 3
3.1.2 Sales Tax 3
r 3.1.3 Bus i ness Li cense Tax 5
3.1. 4 Ut 11 ity Users I Tax 6
f 3.2 ANNUAL COSTS 7
3.2.1 Police Protectlon 7
3.2.2 Flre Protection 7
[ 3.2.3 PubllC Works 8
3.2.4 Parks and Tree Maintenance 8
J 3.2.5 Administration 9
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3.3 IN-LIEU FEES AND ASSESSMENTS 9
L 3.3.1 In Lieu Parks and Houslng Fee 10
3.3.2 In Lleu Incluslonary Houslng Fee 10
3.3.3 Thlrd Street Mall Assessment Fee 11
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4.0 CONCLUS IONS 12
t 5.0 REFERENCES 13
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Table No.
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2
3
4
5
6
7
8
LIST OF TABLES
Titl e
-
Development Program
Summary of Revenues and Costs
Sa 1 es Taxes
Buslness Llcense Taxes
Util1ty Users' Taxes
Pollce ProtectIon SerVIce Costs
Parks and Tree Malntenance Costs
Thi rd Street t1all Assessment Fees
Page No.
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4
5
5
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7
9
11
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1.0 INTRODUCTION
"
ThlS fiscal lmpact analysis has been prepared in eonJunctio.~ wlth the Inl-
tlal Study and Neighborhood Impact Statement which addresses the enVH~on-
mental effects of the proposed seven-story Broadway/Third Street Hall
Mixed Us e P rOJ ect. As requ i red by Sect 1 on 91168 of the Santa Mon i ca Zon-
lng Code. a fiscal impact analysis must be prepared prlor to approval of
buildings In excess of six (6) storles in the "C3U Dlstrict.
It should be noted that this is a limited scope flscal lmpact analysis
which focuses upon two key issues: major recurrlng revenues and expenses.
and "in lieu" fees to be exacted from the . project 'developer. One-tlme
revenue and cost Hems associated Wl th development control funct 1 ons are
not consldered In this analysis since It is expected that the fees charged
to the developer for city development services are equal to the costs
requlred to provfde these services.
Also. it should be noted that fHcal conslderatlons related to eXlstlng
uses on the proJect site were not factored lnto thlS analysls due prlma-
rlly to the fact that the eXlstlng structure is esse'1tially vaca'lt. Per-
formlng a flscal analysls of the few existwg ground-floor retall uses to
deterrrnne the overall net ifTlpact of the proposed project is vlewed as
unnecessary by the city si flce the fiscal effects of these uses are negl i-
gible. Further. it ts expected that these uses wlll soon vacate the slte.
Therefores tills fiscal lmpact report only offers cancluslons regarding the
effects of the proposed project at burTdout 10 terms or new revenues dnd
costs rather than marglnal revenues and costs.
The method of ana lys is used in thlS st:Jdy is a hybrl d of atner standard
methods necesSltated by the proJect's mixed use nature. As a result, the
square footage of proposed res;dentlal uses are comblned wlth proposed com-
merclal uses rather than being analyzed separately uSlng cost factors tYP1-
cally associated with indiVldual dwelling unlts. This apuroach is used
only on the eXpe'1dlture slde of the equatlon and is conSldered to be a con-
servatlVe assumptlon since It may tend to overstate costs assoclated wlth
prOJect deve1opment.
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2.0 PROJECT DESCRIPTION
,
The proposed Broadway/Thl rd Street Mall Mi xed Use~ Project is located on a
O.69-acre site at the northeast corner of Broadway and tile Thl rd Str:.eet
Mall in Santa Monica's downtown core. The project involves demolitlon of
the existing two-story structure and constructlon of a 119.525 square foot
complex lncluding theatre, restaurant. retall, offlce, and residentlal
uses. Development is proposed to begin in October 1987 with completion
scheduled for late fall 1988. Table 1 below indicates the proposed devel-
opment program.
Ta b 1 e 1
DEVELOPMENT PROGRAM
TOTAL
Area (Square Feet)
14,300
57.301
18,841
29 1083
119.525
Use
Ground Floor Commercia11
Offlce
Theatres
Residentia1 (32 units)2
Par'<ing Spaces:
01rect 135
Tandem 83
Total 218
Offslte Demand Generatec: 270
1 Includes 300 square feet of ground floor loboy area and a 5.000 square
foot restaurant.
2 Includes 3.285 square feet of corrldors and lobbles.
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3.0 PROJECT IMPACTS
;.
3.1 ANNUAL REVENUES
The proposed project' 1 s expected to generate annual munlC1 oa 1 revenues for
the Clty of Santa Momea through four prlmary tax1ng mechanIsms: secured
property taxes. sales taxes, business lIcense taxes. and utIllty franch1se
taxes. The projected CIty revenues assoc1ated w1th these taxes are summar-
ized in Table 2 and are described below.
3.1.1 Secured Property Tax
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The project site will be assessed property taxes based on the value of
land and Improvements. Based upon consultation wlth the project ap;Jl1~
cant, the total value of the proJect SIte at buildout is estImated as fol-
lows:
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Land
Development casts
Tot a 1
$ 5.000,000
21,000,000
$26,000,000
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At a prooerty tax rate of One percent, the Los Angeles County Tax Assessor
would collect approxImately $265,000, of WhlCh the CIty would reC2lve
17.74 percent, based~ upon the average CItywide tax allocatIon factor.
Therefore. the proposed proJect 1S estImated to generate approx1mately
$47,000 annually l' Clty prODerty tax recelpts.
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3.1.2 Sales Tax
The proposed ground floor retall, restaurant. and theatre uses would be
requlred to pay state sales taxes on gross receipts. of WhICh the CIty
would received an amount equal to o~e percent of total sales. (For
purposes of thls analysis, 1t is assumed that there w111 be no taxable
sales assoclated w1th offlce uses. Further. 1t 1S also assumed t1at the
project's residents WIll nat patronize the ons1te uses subject to sales
taxes. These are both conServatIve assumDtlons Intended to avold overestl-
mates of actual sales tax revenues.)
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Table 2
SUMMARY OF REVENUES AND COSTS (19B7 DOLLARS)
Annua 1 Dlrect Cl ty Operating _Revenues and Costs
REVENUES
Secured property tax
Sales tax
Business license tax
Utility users' tax
TOTAL
COSTS
Pollce protection
Fire protectlon
PubllC Works
Parks and tree malntenance
AcmlnistratlO!l
TOTAL $
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Net Cash Flow Dlrect to City S
Value of Communlty FaCll1tles Provlded
In Lieu Parks and Houslng Fee (one-tlme only) $
In Lieu Inc1usionary Housing Fee (one-time on1y)
Thlrd Street Mall Assessment Fee (annual)
4
$ 47,000
66t600
23t73~
190? 614
$ 156,953
33t370
22t944
6,215
4,297
8,019
74,845
82 ,I C8
235,180
179,040
201,034
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The proposed proJect is estimated to generate approxlmately $66,600 1n
annual sales tax. revenue. The antlclpated gross receipts and sales tax
revenues are summarized below on Table 3.
Tab 1 e 3
SALES TAXES
Gross Recel pts 1
$1,660,000
2,000,000
3,000,000
Land Use
Retall
Restaurant
Theatre
TOTAL
Area
8,300 SF
5.000 SF
18,800 SF
3.1.3 Business license Tax
Gross Sales Tax
$ 99,600
120.000
180,000
C1 ty Revenue
$16.600
20,000
30,000
$66.600
Business license taxes would be assessed at two levels. Flrst, tenants
would be assessed on the baslS of gross rece1pts. Second, the owner of
the bUllding would be assessed on the basis of aggregated lease rates for
individual users. The proJect would therefore generate approx1mately
$23,653 in annual business llcense taxes. as su~ar1zed below 1n Table 4.
Tab 1 e 4
3US:~ESS LICENS~ TAXES
TENANT TAXES
Land Use
Retall
Restaurant
Theatre
Office
Subtotal
BUILDING OW~ER TAX
Gross ReCel:lts1
$1,660,000
2,000.000
3.000,000
4,956,450
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Aggrega:ed Lease Rates
$3,212.0004
Tatal Revenues
Tax Ra~e2 Cit~{ Reve'lue
$1.25 per $1.000 S 2,075
$1.25 per Sl,OOO 2,500
$0.25 per seat3 280
$3.00 per $1.000 14 , 869
S 19,724
Tax Rate C1ty ,qevenue
$1.25 per- $1.000 $ .l,015
$ 23,739
1 Based upon est1;nates provlded by t"'e project develope'". Retall sales
are assumed at $200 per square foot and restaurant receipts are
assumed at $400 per square foot.
2 Tax rates are apol1ed p:Jrsuant to the Santa t>1cn1Ca BUS1ness Llcense
Tax Ordlnance (Artlcle VI of the Santa Monlca Munlclpal Code).
3 Number of seats assumed to be 1,120 as proposed.
4 Based upon an assu~ed average lease rate of $26.87 per squar-e foot.
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3.1.4 Utility Users' Tax
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The city of Santa Monica currently imposes a utll1ty user_~' tax of five
(5) percent on all electrlcal. natural gas, telephone, and cable tele;.vi-
sion serV1ces prov1ded wlth1n the clty. However, lt is antlclpated that
this tax Wlll be increased to elght (8) percent ln August 1987. ThlS ta.x
lS levied on services that are not prov1ded by the city and therefore does
not include water services prov1ded by the city. As sunrnarlZed 1n Table
5, the city would receive approxlmately $19,614 annually in ut1l1ty users'
taxes assuming a tax rate of e1ght (8) percent.
Table 5
UTILITY USERS' TAXES
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Land Use
Commercial!
Offlce
Residentia13
. El ect rl ca 1
. Natural gas
. Teleohone
. Cable TV
Area/Unit
33,141 SF
57,301 SF
32 DU
Annual Fee Per Unit
$176 per TSF2
$176 per iSF
C1ty Revenue
$ 5.833
10,085
$ 327 per DU
319 per DU
540 per DU
258 per au
TOTAL
837
817
1,382
660
$ 19,614
1 Commercul uses inc1ude ground floor retail, restaurant. and theatre
uses.
2 Annual fees per thousand square feet for cJrnmerclal and off1ce uses
lnclude electr1cal. nat:.Jral gas. and tele;:ihone serVlces. The $175
annual fee 1S denved from the $145 fee identlf1ed 1n Gfflce Develoo-
ment In Santa ~onlca: The Munlc10al Flscal and nOus1no Irr.oact. pre-
pared OJ Haml iton, Raol:lovitz, aria Szanton, Inc., December .i982 and
factored upward to accou~t for lnfiatlon.
3 Util1ty fees for resldential unIts we"'e obtalned duectly from the
appropriate utl1ity compan1es and are as follows:
Electrlcal - $27.24 per month (per Southe~n Callfornla Ed1son Co.)
Nat~ral gas - $26.60 per month (per Southern Cal1fornla Gas Ca.)
Telephone - $45.00 per month (per General TeTephone Co.)
Cable TV - 521.50 per month (per Cent~ry Cable)
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3.2 ANNUAL COSTS
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Annual costs assoc1ated with proJect development involve -four municlpal
operatlons which experience recurring serll1ce demands: pollee protection
serVlces, flre protectlon serVlces, publlC works, and parks and tree maln-
tenance. In addition, city administratlve departments WhlCh serve the
other departments affected dlrectJy by the project (je., police and flre
departments, etc.) are assumed to bear some degree of costs related to the
proposed project.
3.2.1 Police Protection
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The cost factors identified in the fiscal analysls addressing Phase III of
the Colorado Place development estlmated an annual cost of $0.18 per
square foot for offlce uses and $0.50 per square foot for commerclal uses.
AdJusted for inflatlon. these costs are approxlmately $0.1868 and $0.52,
respectively. G1 yen the mlXed use nature of the proJect, It is assumed
that the annual cost of prov1dlng police protectlon for reslde'1tlal uses
lS equal to the cost associated wlth offlce uses. As siJmmanzed 1n Table
.
6, the proposed proJect 1 s estimated to reqtJ1 re apprcxH:lately $33,370 1 n
annual munic1pal expenditures for police serV1ces.
Tab 1 e 5
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POLICE
PROTECTION SERVICE
Annual Cost
Per Square Foot
$0.52
0.1868
0.1868
COSTS
land Use
'Camme rei a 1
Office
Res1dential
TOTAL
Square Feet
33,141
57,301
29,083
?nnual City EXJenditure
$ 17,233
10,70J.
5,433
S 33,370
3.1.2 Fire Protection
Consultat1on w1th the Clty of Santa MO/llea's Flre Ch1ef revea1ed that
marglnal impacts of the proJect are not expected to affect the Flre Depar:-
me!lt adversely. Nevertheless. this f1scal analysls provldes an est1:na:e
of overall flre protect,on costs that may be attrlbuted to the proposed
project. It 15 assumed that the 0.69 acre slte represe'lts approXllla:.eTy
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0.3 percent of the total 267.6 acres of commerclal land wlthln the Clty.
Based on the conservative assumption that fire protection costs are attrl-
butabl e sol ely to commerCl al 1 and uses, the proposed proJec! 15 estimated
to reqUlre approx i mate Jy $22,944 111 annua 1 fi re department expend 1 tu r~s,
as summarized below.
Annual Flre Department Costs
1986-87 Revised Budget (Total Department)
City Contributlon to Retlrement Funds
Health Insurance Premiums
TOTAL
$ 5,805.419
1i500,499
'" 342 1000
$ 7i64};918
".
Annual Cost
$ 7,647,918
Cost Allocatlon Factor
0.3%
Annual Clty Expendlture
$ 22,944
3.2.3 Public Works
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The proposed prOJect. s contnbut ion to publ ie works expenditures invol'les
prlmarlly street maintenance and traffic control activltles. The 1986 fis-
cal analysls for Solorado Place (Phase III) estimated annual public works
costs based on a factor of SO.05 per square foot for offl ce and reta n
uses. Assumlng that this factor applles to the proJect's resldentia1 use
in additlon ta offlce and cOlmlercial uses, and adJustlng for lnflatlon,
the annual publ1c works expenditures requlred by the proJect are as fal-
laws:
Area
119,525 Sq. Ft.
Cost per Sauare Foot
$0.052
Annual City EXDenditure
S 6,215
3.2.4 Parks and Tree Maintenance
The 1986 flscal analysis for Colorado Place (Phase III) estlmated annual
parks and tree malntenance costs based on a conservatlVe factor of $9.00
pe... err.p 1 ayee. Assuml ng that the same cost factor 1 s adjusted for 1 nfl d-
t,on (le.i $9.34) and 1S app11cable to a11 employees and resldents aSSOCl-
ated Wl t, the proJect, parks and tree mai ntenance costs ',voul d be approxl-
mately $4.297. Table 7 summarlzes thlS cost estlmate.
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Ta b 1 e 7
PARKS AND TREE MAINTENANCE COSTS
-- Annua 1 Cltl
Land Use Employees/Resldents1 Cost Factor Expendltur'e
Retail and Rest au rant 57 emp 1 oyees $ 9.34 $ 532
Theatre 58 employees 9.34 542
Office 287 employees 9.34 2,681
ReS1dentlal 58 res1dents 9.34 542
TOTAL $ 4~297
3.2.5 Administration
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In keeping wlth the method of analysis used in the 1986 Colorado Place f15-
cal impact study, it lS estlmated that an amount equal to twelve (12) per-
cent of the proJect's dlrect munlc1pal costs w1ll be allocated to Clty
admlnlstratlve departments. Based upon projected annual pollce, flre, pub-
lic works, and parks expenditures of S56,826 attributed to the prOJect,
approximately $8,019 wll' be spent for addltlonal city admlnlstrative ser-
Vlces.
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3.3 IN LIEU FEES MiD ASSESSMENTS
The proposed prOJect 1 S s:.JbJ ect to varlOUS ci ty ordi nances Whl ch requl re
the payment of speclfled one-time fees n1n lleuu of provldlng park fac1ll-
tles and affordable houS1ng. Further, the proposed development 1S subject
to an annual fee levied pursuant to the "Third Street Mall and Downtown
Assessme~t District~ to pay lts fair share for the cost of areawlde
improvements WhlCh beneflt the project slte. These fees are descrlbed In
the followlng subsectlons.
1 Assumed employment factors are 250 scuare feet per employee for
reta11/restaurant uses, 325 square feet per e-nployee for the theatre,
and 200 square feet per employee for offlce uses. ReSldents are estl-
mated to be 1.8 persons per cwell1ng unlt.
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3.3.1 In lieu Parks and Housing Fee
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As required by OrdHlance NUr.Jber 1367 (CCS), ge-l'Ieral offi~e developments
are requued to provlde low- or moderate-income houslng or park space on
or off the proJect slte. As an alternat1ve, the project developer may pay
a one-time IIln lieu" fee to the city to mltlgate the proJect1s lmpact upon
affordable housing and/or parks. The fee is currently $2.44 per square
foot for the fi rst 15.000 square feet of net rentable square footage and
$5.43 per square foot for the balance of net rentable square footage.l As
summarized below. the in 11eu parks and houslng fee to be pald for the pro-
posed project would be approxlmately $235,180.
Net Rentable Space (Assumed at 90% of 57,301 SF)
15.000 SF at $2.44
36,571 SF at $5.43
TOTAL
Fee Payment
$ 36,600
198,580
$ 235,180
3.3.2 ,In lleu Inclusionary Housin9 Fee
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Program 12 of the Housing Element of the Santa Monlea General Plan
(ame.,ded 1n March 1987) requires that fifteen (IS) percent of all new
un1ts 1n market rate houslng proJects be affordable to persons with
lneomes up to 100 percent of the Los Angeles-Long Beach prlmary Metropoll-
tan Statlstical Area medlan 1ncome. A fee may be paid to the elty by
develope"-s subject to thrs requirement in lieu of providing the required
1ncl~slonary units.
Although an implementing ordinance has not yet been adopted, it is expec-
ted that the in 112U fees established in the amended HouSlng Element Wlll
be exacted from the prOJect developer. These fees are S5.50 per square
foot for the first 10.000 square feet of gross reSldential floor area and
$6.50 per square foot of gross residentlal floor area beyond 10,000 square
feet. The City will eonSlder reducing the fee to $4.00 per square foo~ lf
the Santa Monica-Ma11bu Un1f"led School Dlstrlct adopts the developer fee
1 Pursuant to Section 2(c) of Ordlnance Number 1367. the orlg1nal fees
of $2.25 and $5.00 have been ad.;usted for the 8.6 perce.,t change 1n
the Consumer Price Index Slnce October 1984 1n the Los Angeles/Long
Beach statlstlcal area.
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program that they are conslderlng. However. for purposes of th1S analy-
SlS. it is assumed that fees of $5.5D and $6.50 wlll be required. As sum-
marized below. the in lieu lnclusionary houslngo fee to be paid by the
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developer would be $179.040.
ReSldentlal Square Footage
10.000 SF at $5.50
19.083 SF at $6.50
.Fee Payment
$ 55.000
124~040
$ 179.040
TOTAL
3.3.3 Third Street Hall Assessment Fee
Given the location of the project site wlthln Zone 1 of the "Th1rd Street
Mall and Downtown Assessment District." the project is subject to the
levying of fees to help flnance areaw1de publlC improvements. These fees
wlll be levled against tenants 1n an amount equal to 3.5 t1mes the annual
business license tax and against the landowner based on the "zone of bene-
fit" affecting t~e site. As su~marlzed in Table 8. annual fees of aoproxi-
mately $201.034 would be contrlbuted to the Clty as a result of the pro-
posed proJect.
Tab1e 8
THIRD STREET MALL MArNTcNA~CE AND ASSESSMENT FE~S
TENANT FEES
Fee Factor1
Land Use
Reta11
Restaurant
Theatre
Of f 1 C e
BUSlness Llcense Taxes
$: 2,075
2.500
194
14.869
3.5
3.5
3.5
3.5
Subtotal
BUI~DING OWNE~ FEES
EXlstlng 47.500 SF @ $0.97 per square foot assess~ent fee:
New (non-resldentlal) 42.942 SF ~ $1.50 per square foot
assessment fee:
ReSldentlal 29.083 SF @ $0.75 per square foot assessment
fee:
Subtotal
TOT AL
Fee Payrr-ent
$ 7,263
8,750
679
52~O42
$ 68,7 34
$ 46.075
64.413
21~812
$ 132,300
$ 201.034
1 The tenant fee factor t S for Ma11 operat Ton and ma T ntenance cost s.
ThlS factor 1S expected ~o be reduced to 3.0 1n Flscal Year 1988-89,
thereby reduclng annual fees accord1ngly.
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4.0 CONCLUSIONS
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As summarized prevlously in Table 2, the proposed-proJect lS estlmated to
Yleld approximately $82,000 in net annual revenues to the Clty of Sapta
Monlca. Wh1Ch is clearly a benef1cial fiscal effect of the proJect. It
should be noted that the annual revenues and costs have been estlmated
based upon fairly conservative assumptlons and that actual net revenues
may be somewhat greater than $82,000.
In add1tlon to recurrlng revenues associated with proJect development,
approximately $201.000 in annual fees will be contributed to the city pur-
suant to the Third Street f.lall Assessment Fee program. Th1S annual fee
payment combined with net operating revenues 1S expected to yield a total
of approximately $283,000 1n annual municipal revenues.
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5.0 REFERENCES
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5.1 BIBLIOGRAPHY
Clty of Santa Monica, Final Environmental Impact Report - Third Street
Mall Speclfic Plan, July 1986.
City of Santa Monlca, Thlrd Street Mall Speclflc Plan, August 1986.
Clty of Santa Monica, Clty of Santa Mon;ca Zoning Regulatlons, Aprll 1986.
Michael Brandman Associates, Colorado Place Phase III - Final Environmen-
tal Impact Report, November 1986.
Plannlng Consultants Research. EIR Regarding the Santa Mon;ca Executlve
Center and the Martln Cadlllac Relocatlon ProJect, August 1983.
5.2 ORGANIZATIONS AND PERSONS CONSULTED
Clty of Santa Monica
Mlke DennlS. D,rector of Flnance
Darrell Georg~, Senlor Admln;stratlve Analyst
Debby Mlller, License and Permlt Supervisor
Karen Rosenberg, Associate Planner
D. Kenyon Webster, Senior Planner
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Janss Corporatlon
Howard Furman, Controller
5.3 CONSULTANT TEAM
Phillips Brandt Reddlck
~1111am Masterson
Lor; Stelner
Tim Latt,mer
Karen Gulley
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