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SR-410-001-05 (9) PCD:AA:AS:JL:TK:F:\CityPlanning\Share\COUNCIL\STRPT\2005\Bayside Retail (05TA-006).doc January 24, 2006 Santa Monica, California TO: Mayor and Councilmembers FROM: City Staff SUBJECT: Introduction and First Reading of an Ordinance Modifying the Zoning Code to Establish a Review Process to Regulate the Conversion of Any Portion of a Restaurant Use or Any Associated Recreational or Entertainment Use Located on the Ground Floor Level Adjacent to the Third Street Promenade to a New or Expanded Retail Use, and Clarification of Clerical Error Related to Santa Monica Municipal Code Sections 9.04.08.15.020(1) and 9.04.08.15.040(1) INTRODUCTION This report recommends that the City Council introduce for first reading an ordinance modifying the Zoning Ordinance to establish a discretionary review process to regulate the conversion of any portion of a restaurant use located on the ground floor level adjacent to the Third Street Promenade to a new or expanded retail use. The proposed ordinance is contained in Attachment A. BACKGROUND Maintaining the proper balance of uses on the Third Street Promenade is an important and longstanding Council goal since the adoption of the Third Street Mall Specific Plan in 1980. The original Third Street Mall was primarily a pedestrian 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. The Specific Plan establishes policies to preserve the unique mixture of uses – a key element to the success of the Promenade. Over the years Council has maintained the balance of uses by enacting zoning regulations that foster the appropriate mix of restaurant, retail, and entertainment uses. Information presented to the Council in November 2001, showed the risks to the mix of uses. Five restaurants had been lost in the previous two years, with four more near or at the end of their leases. As restaurants left the Promenade, retail uses grew, exceeding the ten-year projection contained in the Bayside District Specific Plan within five years. Council found that the Promenade was becoming less unique and more like a typical outdoor shopping mall and that, if allowed to continue, the trend would threaten the economic and social welfare of the downtown area. In response, on November 27, 2001, the City Council adopted an interim ordinance regulating 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 ordinance allowed a five percent increase in retail uses per block to provide some flexibility for property owners. The interim ordinance has been subsequently extended to the maximum time allowed by law and will expire on March 26, 2006. In response, the City Council directed staff to prepare a permanent ordinance that would ensure the continued vibrancy of the Promenade by continuing to regulate the mix of uses on the Promenade. On November 16, 2005, the Planning Commission adopted a Resolution of Intent authorizing staff to prepare the subject text amendment. On December 14, 2005, the Planning Commission discussed the proposed ordinance and expressed interest in creating a more flexible process and less demanding requirements for property owners and potential retail tenants. The discussion was continued to the January 4, 2006, hearing. The Planning Commission recommendation is discussed later in this report. DISCUSSION The interim ordinance has achieved its intended goal of preserving remaining restaurant uses on the Third Street Promenade by limiting the establishment or expansion of new retail floor area. On two of the three blocks regulated by the interim ordinance new retail frontage is essentially prohibited on the Third Street Promenade; however, there is limited opportunity on the third block, nearest Santa Monica Place, to expand. Market forces, including high rents, continue to threaten the mix of land uses on the Promenade. While the activity generated on the Promenade is increasingly extending toward Second and Fourth Streets as new shops and restaurants open, the Promenade remains the area’s focus. Maintaining restaurant uses on Third Street contributes significantly to its success and supports existing retail and entertainment uses in the area. Therefore, it is important to continue to regulate the potential loss of restaurants and continue the vision of the Promenade and Bayside District as a unique destination with a diversity of uses. It is also important that the permanent ordinance reflect the desired intent and be flexible enough to accommodate over time to changing conditions on the Promenade; it should also be easy to administer, unlike the current interim ordinance, which requires constant database maintenance of retail area and linear dimensions. The proposed ordinance essentially limits new or expanded retail uses on the Promenade but focuses more directly on the conversion of restaurant uses to retail as opposed to the new or expanded retail area. This is a shift that eliminates the need for the linear retail and square footage inventory per block. When assessing if a retail use can expand or be newly established, the only information needed is how that space was previously used. And, unlike the existing interim ordinance, which effectively precludes new retail store fronts on the Promenade, the proposal would establish a discretionary review process to allow an applicant or property owner the opportunity to demonstrate that the conversion of a restaurant space to retail is appropriate for the Bayside District. ANALYSIS Proposed Ordinance The proposed ordinance would amend Sections 9.04.08.15.020 and 9.04.08.15.040 of the Zoning Ordinance to require a conditional use permit for the conversion of any portion of a restaurant use or any associated recreational or entertainment use to a new or expanded retail use located on the ground floor level adjacent to the Third Street Promenade in the BSC-1 portion of the BSC District. The ordinance would also add Section 9.04.08.15.085 to specify new standards and findings required for this approval. The proposed amendment limits new or expanded retail uses on the Promenade by regulating the conversion of a restaurant to a retail space through a discretionary review process. Any portion of a restaurant use proposed to be converted to a new or expanded retail use located on the ground floor level adjacent to the Third Street Promenade would be required to obtain a Conditional Use Permit. This approach would continue to limit new or expanded retail uses while also preserving restaurants and addressing the Council’s concerns of maintaining a balance of restaurant, retail, and entertainment uses. The existing standards and findings for Conditional Use Permits pursuant to SMMC Section 9.04.20.12 would apply. In addition, the applicant would be required to make either of two additional showings: 1) The proposed use would preserve the unique mixture of restaurants, retail, and entertainment on the Third Street Promenade and maintains the vitality and diversity of the Promenade and the Bayside District; or 2) The proposed use adds to the diversity of the Bayside District by providing goods or services that are not otherwise adequately available in the Bayside District. The proposed amendment also allows for the conversion of the rear portion of a ground floor restaurant to retail without a Conditional Use Permit provided that access to the retail area is taken from the alley, and the retail area is located at least 75 feet from the front property lines adjacent to the Promenade. The overall number of eligible restaurant sites for potential conversion on the Promenade at this time is limited, and the majority of those restaurants have remained since the adoption of the original interim ordinance. It is not anticipated that there will be a notable increase in the number of Conditional Use Permit applications processed due to the proposed ordinance. The proposed ordinance would improve administration compared to the interim standards and eliminate the need to maintain a cumbersome and unnecessarily detailed inventory. Retail expansion at the expense of a restaurant space will not be allowed without discretionary review, and maintenance of the Promenade’s character and unique mix of restaurant, retail, and entertainment uses will continue. When drafting this ordinance, a clerical error was noticed, which will be remedied with the proposal. Santa Monica Municipal Code Sections 9.04.08.15.020(1) and 9.04.08.15.040(1) regarding the requirement for a use permit for first-floor frontages exceeding fifty feet on the Third Street Promenade incorrectly refer to standards in Section 9.04.08.15.035; however, Section 9.04.13.060 is the correct section that should be referenced. Bayside District Corporation The Bayside District Corporation (BDC) discussed the Third Street Promenade ground floor retail issue on September 15, 2005, and at a meeting of their Land and Asset Committee. The BDC recommended that the interim ordinance be allowed to expire and not become permanent. An important element of the BDC Board discussion related to non-regulatory approaches to achieving an appropriate balance of uses. The discussion included measures such as reduced assessments for property owners who lease to restaurants, or other means to subsidize those property owners whose restaurant tenants pay reduced rents but add to the overall vitality of the Promenade. Council may wish to signal its intention that if the BDC can implement non-regulatory measures that maintain and enhance the mix of uses on the Promenade, the ordinance could be modified or eliminated in the future. Planning Commission Action The Planning Commission concluded its discussion on the proposed ordinance on January 4, 2006. Throughout its deliberation, the Commission tried to balance a desire to provide flexibility to property owners while ensuring the continued success and vitality of the Promenade. Some Commissioners argued that increased restaurant activity on Second and Fourth Streets, as well as Santa Monica Boulevard and other East / West streets, supported a position to relax regulations on the Promenade. Others were less inclined to allow market forces completely determine the mix of uses and favored a threshold at which discretionary review would be required. The Planning Commission attempted to understand whether previously identified pressures to the continued mix of uses remained, and if so, regulations must persist. However, absent such economic pressures, no regulations should be necessary. The Commission concluded some regulations remained necessary and settled on an approach that would permit continued restaurant to retail conversions provided the linear dimension along each of the three blocks did not fall below 250 feet. This approach does not require an area calculation, which has not been a limiting factor when considering conversions under the existing interim standards. The Commission also recommended excluding second floor retail and basement level area from the linear dimension, similar to the existing standards. The Commission supported allowing retail area beyond 75 feet from the Promenade property line. Regarding discretionary review, the Planning Commission expressed concern with the second staff proposed finding. It was believed to be too restrictive and difficult to demonstrate compliance. While staff initially supported this recommendation at the hearing, that position has been reconsidered, and staff recommends retaining that finding. The principal reason supporting the finding is the belief that continued pressure on the Promenade may result in the loss of additional restaurants. To ensure a diversity of goods and services in the Bayside District, a property owner or retailer should be required to demonstrate their proposed use is not already overly represented in the District. A discretionary approval could be conditioned according to the specific goods and services proposed; modification of the discretionary permit would be required to change the unique qualities of the approved retail use. The Planning Commission recommends establishing a 250 linear feet threshold for restaurant frontage on each of the three Promenade blocks. Any restaurant conversion to retail falling below this threshold would be required to obtain a Conditional Use Permit. Staff believes that specific threshold is difficult to determine and does not allow flexibility and adaptability in regulating restaurant and retail uses over time due to changing conditions on the Promenade. The proposed CUP process allows for continual monitoring and evaluation of the balance of uses on the Promenade. Consistency with the General Plan The proposed text amendment is consistent in principle with and reinforces several of the goals, objectives and policies of the General Plan. Specifically, the amendment is consistent with the following: Land Use Element Objective 1.3 that states that the City’s land use policies should seek to “reinforce Downtown as the focus of the City, supporting the greatest concentration of activity.” The proposed amendment would limit the amount of retail uses on the Third Street Promenade and allow for the preservation of dining opportunities to ensure the unique mix of restaurants, retail, and entertainment, maintaining focus and concentration of activity on the Promenade and Downtown area. Land Use Element Objective 1.4 that states that the City’s land use policies should seek to “encourage revitalization of the Third Street Mall, recognizing the important role the Third Street Mall can play in making Downtown the activity focus of the City.” The proposed amendment would limit the expansion of retail at the expense of other uses and would encourage and maintain the viability of the Promenade and Downtown area by preserving the character and unique mixture of uses, a key element to the success of the Promenade. The proposed amendment would also help preserve the City’s economic and social welfare, protect the unique qualities and vitality of the Third Street Promenade by ensuring the best possible mix of restaurants, retail, and entertainment, and maintain the quality of residents’ lives and the desirability of the Promenade and the City as a destination. PUBLIC NOTIFICATION A legal advertisement was published in the “California” section of the Los Angeles Times at least ten consecutive calendar days prior to the hearing and sent to all neighborhood organizations, the Planning Commission, City of Los Angeles, and posted on the City’s Web site. A copy of the notice is contained in Attachment C. CEQA STATUS The proposed ordinance is exempt from the provisions of the California Environmental Quality Act (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 recommendation presented in this report does not have any budget or fiscal impact. RECOMMENDATION Staff recommends that the Council introduce for first reading the attached ordinance establishing a discretionary review process to regulate the conversion of any portion of a restaurant use located on the ground floor level adjacent to the Third Street Promenade to a new or expanded retail use. Prepared by: Andy Agle, Interim Director Amanda Schachter, Planning Manager Jonathan Lait, AICP, Principal Planner Tony Kim, Associate Planner Planning and Community Development Department Attachments: A. Proposed Ordinance B. Existing Interim Ordinance Number 2162 (CCS) C. Notice of Public Hearing Attachment A Proposed Ordinance f:\atty\muni\laws\bar\baysidedistrictretail-1.doc City Council Meeting 1-24-06 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 SECTIONS 9.04.08.15.020 AND 9.04.08.15.040 AND ADDING SECTION 9.04.08.15.085 TO THE MUNICIPAL CODE TO ESTABLISH A DISCRETIONARY REVIEW PROCESS TO REGULATE THE CONVERSION OF ANY PORTION OF A RESTAURANT USE OR ANY ASSOCIATED RECREATIONAL OR ENTERTAINMENT USE TO A NEW OR EXPANDED RETAIL USE LOCATED ON THE GROUND FLOOR LEVEL ADJACENT TO THE THIRD STREET PROMENADE WHEREAS, in 1965, the City Council sought to revitalize its declining downtown business district by closing three blocks of Third Street to vehicular traffic in order to create a pedestrian shopping mall pursuant to the Pedestrian Mall Act; and WHEREAS, the Third Street Mall did not attract shoppers; and, as a result, retail businesses on the mall failed, and the downtown business district continued to decline; and WHEREAS, in 1986, the City Council again acted to save its downtown by adopting the Third Street Mall Specific Plan to provide a framework for reviving the Third Street Mall and surrounding areas; and WHEREAS, the Specific Plan made diversity the foundation of the mall’s future, mandating a mixture of uses and activities sufficient to ensure that the mall would attract a diverse group of residents and visitors; and WHEREAS, thereafter, the City embarked upon a substantial effort to transform the moribund Third Street Mall into a new kind of public space which would serve as a community gathering place, attract visitors from near and far and define the City’s municipal character; and WHEREAS, the redesign included numerous improvements to the pedestrian street: retail pavilions, landscaping, water elements, public benches, street lamps, and topiary dinosaur sculptures in the central landscaped area of each block and the area was also renamed the Third Street Promenade; and WHEREAS, this space was, from the time of its conception, distinguished from other shopping areas, by the carefully planned and unusual mix of opportunities it afforded, including street performers, sidewalk dining, cinema, bookstores, special events, clothing stores, specialty shops, and night clubs; and WHEREAS, as conceived, the Third Street Promenade was not simply a shopping mall; it was a place to go for entertainment, company, relaxation, strolling; a place where one could watch jugglers and dancers, dine outdoors, argue politics, listen to music, browse a bookshop, take in a movie and more; and WHEREAS, moreover, the Third Street Promenade was planned as a gathering place for all segments of society: children, the elderly, and people from all cultural and economic groups; and WHEREAS, the plan succeeded, and the Third Street Promenade became a resounding success as a favored destination for local residents, Southern Californians and international travelers alike; and WHEREAS, as such, it became, and still is, an engine which drives Santa Monica’s economy; however, this success has had its costs; and WHEREAS, the influx of visitors to the Third Street Promenade has brought significant traffic and parking problems; and WHEREAS, at present, these problems are being addressed by a downtown parking strategy; however, the problem is significant and the options are limited because the area is very small, has been built out for decades and features a mixture of uses, including residential, which is inconsistent with simply building larger and larger parking structures; and WHEREAS, maintaining the delicate balance of entertainment, restaurants and retail, which is the foundation of the Third Street Promenade’s success, has been an ongoing challenge; and WHEREAS, over the years, market forces have threatened the mix many times; and the City has responded to preserve the Third Street Promenade’s unique character through the adoption of laws and polices which promote the general welfare by maintaining the Promenade’s eclectic character; and WHEREAS, in 1996, the City revised the Third Street Mall Specific Plan through the adoption of the Bayside District Specific Plan, a critical objective of which remained to attract and accommodate a mix of uses serving residents, visitors and tourists during both daytime and evening hours; and WHEREAS, to this end, the specific plan established a ten-year projection and plan for the controlled growth of retail outlets on the Third Street Promenade; and WHEREAS, the actual growth of retail far outstripped the planned growth to the point that the ten year projection was already met just five years into the planning period; and WHEREAS, as of 2001, there was already approximately 530,000 square feet of retail on the three block Third Street Promenade and the pressure to create more retail spaces continued unabated; and WHEREAS, the massive influx of retail establishments displaced restaurants and sidewalk dining; and WHEREAS, five restaurants were lost in the two years prior to the adoption of the initial interim ordinance and four more were near or at the end of their leases; frontage devoted to sidewalk dining shrunk; and WHEREAS, as reflected by these changes, the balance of uses on the Third Street Promenade was once again threatened; this time by a loss of restaurants and influx of additional retail; and WHEREAS, if left unchecked, this trend will deprive the Third Street Promenade of its unique character and vitality by rendering it simply a standard shopping mall; and WHEREAS, the influx of retail not only impacted the mix of establishment located on the Third Street Promenade, it also exacerbated parking and traffic problems; and WHEREAS, residents and visitors come to the Third Street Promenade for dining and entertainment, typically for many hours; in contrast, persons who are simply shopping, stay for shorter periods of time, resulting in more people making more trips and thereby placing ever-increasing demands on the downtown’s already overtaxed traffic and parking capacities; and WHEREAS, these increased demands degrade the quality of residents’ lives and the desirability of the Third Street Promenade and the City as destinations and thereby threaten the City’s welfare; and WHEREAS, in order to preserve the City’s economic and social welfare, the City Council must act in order to protect the unique qualities and vitality of the Third Street Promenade by ensuring the best possible mix of restaurants, retail and entertainment; and WHEREAS, in general, the City must ensure the best possible mix of restaurants, retail and entertainment so that the Promenade remains unusual and attractive and does not become simply an average shopping mall through the continued expansion of retail at the expense of other uses; and WHEREAS, similarly, the City must preserve the outdoor dining opportunities which have become one of the hallmarks of the Promenade; and WHEREAS, exactly how best to accomplish this end is a complex question which required detailed study, including a review of the specific plan; and WHEREAS, in light of these concerns, the City Council adopted Ordinance Number 2030 (CCS) on November 27, 2001, a forty-five day ordinance which established a moratorium on new or expanded ground floor retail use on the Third Street Promenade, adopted Ordinance Number 2032 (CCS) which extended Ordinance Number 2030 (CCS) until January 9, 2003, adopted Ordinance Number 2062 (CCS) which extended Ordinance Number 2030 (CCS) until September 9, 2003, adopted Ordinance Number 2082 (CCS) which extended Ordinance Number 2030 (CCS) until September 9, 2005, and adopted Ordinance Number 2162 (CCS) which extended Ordinance Number 2030 (CCS) until March 26, 2006; and WHEREAS, after adoption of Ordinance Number 2030 (CCS), the City Council established a Promenade Uses Task Force to study the Promenade issues described herein, to seek feedback and input from the community, and to make recommendations to the City Council regarding the appropriate mix of uses on the Promenade; and WHEREAS, the Task Force met regularly between May 2002 and March 2003, considering goals and objectives for the Promenade and the Downtown, reviewing relevant City policies and regulations, and conducting community workshops; and WHEREAS, the Task Force subsequently prepared a series of recommendations for review by the City Council; and WHEREAS, in March, 2005, the City Council adopted an ordinance implementing the legislative changes for restaurants recommended by the Task Force; and WHEREAS, at the time of the ordinance’s adoption, it was not clear how these legislative changes and other implementation measures would affect the viability of restaurants on the Promenade; and WHEREAS, due to this uncertainty, the City Council retained the interim standards; and WHEREAS, for the reasons described above, the City’s Comprehensive Land Use and Zoning Ordinance should be revised to accommodate restrictions on the expansion or establishment of new ground floor retail uses on the Third Street Promenade to ensure and maintain the district’s unique mix of uses; and WHEREAS, the Planning Commission conducted public hearings and considered the proposed amendment on December 14, 2005 and January 4, 2006; and WHEREAS, the City Council held a public hearing on the proposed text amendment on January 24, 2006; and WHEREAS, the proposed Zoning Ordinance text amendment is consistent in principle with the goals, objectives, policies, land uses, and programs specified in the adopted General Plan, specifically, Land Use Element Objective 1.3, which states that the City’s land use policies should seek to “reinforce Downtown as the focus of the City, supporting the greatest concentration of activity; and WHEREAS, the proposed amendment would limit the amount of retail uses on the Third Street Promenade and allow for the preservation of dining opportunities to ensure the unique mix of restaurants, retail, and entertainment, maintaining focus and concentration of activity on the Promenade and Downtown area; and WHEREAS, the proposed Zoning Ordinance text amendment is also consistent with Land Use Element Objective 1.4, which states that the City’s land use policies should seek to “encourage revitalization of the Third Street Mall, recognizing the important role the Third Street Mall can play in making Downtown the activity focus of the City;” and WHEREAS, the proposed amendment would limit the expansion of retail uses at the expense of restaurant uses and would encourage and maintain the viability of the Promenade and Downtown area by preserving the character and unique mixture of uses, a key element to the success of the Promenade; and WHEREAS, the public health, safety, and general welfare the adoption of the proposed amendment in that the amendment would help preserve the City’s economic and social welfare, protect the unique qualities and vitality of the Third Street Promenade by ensuring the best possible mix of restaurants, retail, and entertainment, and maintain the quality of residents’ lives and the desirability of the Promenade and the City as a destination, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 9.04.08.15.020 is hereby amended to read as follows: 9.04.08.15.020 Permitted uses. (1) The following uses shall be permitted in the BSC-1 portion of the BSC District, provided that any such Deleted: 9.04.08.15.035 use shall obtain a use permit pursuant to Section 9.04.13.060 if its Third Street Promenade first-floor frontage exceeds fifty feet, and that the conversion of any portion of a restaurant use or any associated recreational or entertainment use to a new or expanded retail use located on the ground floor level adjacent to the Third Street Promenade shall obtain a conditional use permit pursuant to Section 9.04.08.15.085. All uses shall be conducted within an enclosed building, except where otherwise specified: (a) Art galleries. (b) Artist studios above the first floor and at the rear seventy-five feet of a parcel. (c) Bakeries. (d) Barber or beauty shops. (e) Business colleges. (f) Child day care centers. (g) Cleaners. (h) Congregate housing. (i) Cultural facilities. (j) Dance studios. (k) Domestic violence shelters. (l) Exercise facilities. (m) General offices above the first floor and in the rear seventy-five feet of a parcel. (n) General retail, subject to the limitations contained in Section 9.04.08.15.085. (o) Homeless shelters with less than fifty-five beds. (p) Medical, dental and optometrist clinics and laboratories above the first floor and in the rear seventy-five feet of a parcel. (q) Multi-family dwelling units. (r) Museums. (s) Outdoor newsstands. (t) Pawnbrokers. (u) Photocopy shops. (v) Places of worship. (w) Restaurants, subject to the limitations contained in Section 9.04.08.15.080. (x) Senior group housing. (y) Senior housing. (z) Sidewalk cafes, subject to the provisions of the Outdoor Dining Standards for the Third Street Promenade, approved by resolution of the City Council, and subject to the limitations contained in Section 9.04.08.15.080. (aa) Single-room occupancy housing. (bb) Tailors. (cc) Trade schools. (dd) Transitional housing. (ee) Accessory uses which are determined by the Zoning Administrator to be necessary and customarily associated with and appropriate, incidental, and subordinate to, the principal permitted uses and which are consistent and not more disturbing or disruptive than permitted uses. (ff) Other uses determined by the Zoning Administrator to be similar to those listed above and which are consistent and not more disturbing or disruptive than permitted uses. (2) The following uses shall be permitted in the BSC-2, BSC-3 and BSC-4 portions of the BSC District. All uses shall be conducted within an enclosed building, except where otherwise specified: (a) Art galleries. (b) Artist studios above the first floor. (c) Appliance repair shops. (d) Bakeries. (e) Banks and savings and loan institutions. (f) Barber or beauty shops. (g) Business colleges. (h) Child day care centers. (i) Cleaners. (j) Congregate housing. (k) Cultural facilities. (l) Dance studios. (m) Domestic violence shelters. (n) Exercise facilities. (o) General offices above the first floor and in the rear seventy-five feet of a parcel. (p) General retail. (q) Homeless shelters with less than fifty-five beds. (r) Laundromats. (s) Medical, dental and optometrist clinics and laboratories above the first floor and in the rear fifty feet of a parcel. (t) Multi-family dwelling units. (u) Museums. (v) Outdoor newsstands. (w) Pawnbrokers. (x) Party equipment rentals. (y) Photocopy shops. (z) Places of worship. (aa) Restaurants, subject to the limitations contained in Section 9.04.08.15.080. (bb) Senior group housing. (cc) Senior housing. (dd) Single-room occupancy housing. (ee) Tailors. (ff) Theaters. (gg) Trade schools. (hh) Transitional housing. (ii) Accessory uses which are determined by the Zoning Administrator to be necessary and customarily associated with and appropriate, incidental, and subordinate to, the principal permitted uses and which are consistent and not more disturbing or disruptive than permitted uses. (jj) Other uses determined by the Zoning Administrator to be similar to those listed above and which are consistent and not more disturbing or disruptive than permitted uses. 9.04.08.15.020 SECTION 2. Santa Monica Municipal Code Section 9.04.08.15.040 is hereby amended to read as follows: 9.04.08.15.040 Conditionally permitted uses. (1) The following uses may be permitted in the BSC-1 portion of the BSC District subject to the approval of a conditional use permit. Additionally, any use for which the Third Street Promenade first-floor frontage exceeds fifty feet Deleted: 9.04.08.15.035 shall obtain a use permit pursuant to Section 9.04.13.060, and the conversion of any portion of a restaurant use or any associated recreational or entertainment use to a new or expanded retail use located on the ground floor level adjacent to the Third Street Promenade shall obtain a conditional use permit pursuant to Section 9.04.08.15.085: (A) Bars, subject to the limitations contained in Section 9.04.08.15.080; (B) Billiard parlors; (C) Bowling alleys; (D) Cinemas; (E) Clubs and lodges; (F) Convention and conference facilities; (G) Fast-food food courts, subject to the limitations contained in Section 9.04.08.15.080; (H) Homeless shelters with fifty-five beds or more; (I) Hotels and motels; (J) Nightclubs, subject to the limitations contained in Section 9.04.08.15.080; (K) Open-air farmers markets; (L) Skating rinks; (M) Theaters. (2) The following uses may be permitted in the BSC-2, BSC-3 and BSC-4 portions of the BSC District, subject to the approval of a conditional use permit: (A) Automobile parking lots and structures; (B) Bars, subject to the limitations contained in Section 9.04.08.15.080; (C) Billiard parlors; (D) Bowling alleys; (E) Cinemas; (F) Clubs and lodges; (G) Convention and conference facilities; (H) General offices uses on the ground floor in that portion of a parcel between twenty-five feet and seventy-five feet from the front parcel line; (I) Homeless shelters with fifty-five beds or more; (J) Hotels and motels; (K) Nightclubs, subject to the limitations contained in Section 9.04.08.15.080; (L) Open-air farmers markets; (M) Skating rinks. (3) In addition to those uses specified in subsection (2) of this Section, the following uses may be permitted in the BSC-3 portion of the BSC District subject to the approval of a conditional use permit: Expansion or intensification of automobile repair facilities existing as of July 8, 1997 provided such property is physically improved to comply with the Bayside District special project design and development standards set forth in Section 9.04.08.15.070 and the special conditions for auto repair facilities set forth in Section 9.04.14.050. SECTION 3. Section 9.04.08.15.085 is hereby added to the Santa Monica Municipal Code to read as follows: Section 9.04.08.15.085. Conversion of any portion of a restaurant use or any associated recreational or entertainment use to a new or expanded retail use located on the ground floor level adjacent to the Third Street Promenade. In the BSC-1 portion of the BSC District, the conversion of any portion of a restaurant use or any associated recreational or entertainment use to a new or expanded retail use located on the ground floor level adjacent to the Third Street Promenade shall require a conditional use permit subject to the following requirements: (a) All standards, required findings, and conditions for conditional use permits pursuant to Santa Monica Municipal Code Part 9.04.20.12 shall apply. (b) Either of the additional findings of fact shall be made: (1) The proposed use would preserve the unique mixture of restaurants, retail and entertainment on the Third Street Promenade and maintains the vitality and diversity of the Promenade and the Bayside District, or (2) The proposed use would add to the diversity of the Bayside District by providing goods or services that are not otherwise adequately available in the Bayside District. (c) The provisions of this Section shall apply to all restaurant uses located on the ground floor level adjacent to the Third Street Promenade. However, the conversion of the rear portion of a ground floor restaurant to a retail use shall not require a conditional use permit provided that the retail area is located within the rear 75 feet of the property and access to the retail area is taken from an alley. SECTION 4. 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. SECTION 5. 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 Formatted: Font: Bold 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 6. 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: _________________________ MARSHA JONES MOUTRIE City Attorney Attachment B Existing Interim Ordinance Number 2162 (CCS) City Council Meeting 7-26-05 Santa Monica, California ORDINANCE NUMBER ____ (CCS) (City Council Series) AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA EXTENDING A MORATORIUM ON NEW OR EXPANDED RETAIL USES ON THE GROUND FLOOR OF THE THIRD STREET PROMENADE WITH LIMITED EXCEPTIONS 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 1965, the City Council sought to revitalize its declining downtown business district by closing three blocks of Third Street to vehicular traffic in order to create a pedestrian shopping mall pursuant to the Pedestrian Mall Act. (b)The Third Street Mall did not attract shoppers; and, as a result, retail businesses on the mall failed, and the downtown business district continued to decline. (c) In 1986, the City Council again acted to save its downtown by adopting the Third Street Mall Specific Plan to provide a framework for reviving the Third Street Mall and surrounding areas. (d) The Specific Plan made diversity the foundation of the malls future, mandating a = mixture of uses and activities sufficient to ensure that the mall would attract a diverse group of residents and visitors. (e) Thereafter, the City embarked upon a substantial effort to transform the moribund Third Street Mall into a new kind of public space which would serve as a community gathering place, attract visitors from near and far and define the Citys = municipal character. The redesign included numerous improvements to the pedestrian street: retail pavilions, landscaping, water elements, public benches, street lamps, and topiary dinosaur sculptures in the central landscaped area of each block. The area was also renamed the Third Street Promenade. (f) This space was, from the time of its conception, distinguished from other shopping areas, by the carefully planned and unusual mix of opportunities it afforded, including street performers, sidewalk dining, cinema, bookstores, special events, clothing stores, specialty shops, and night clubs. (g) As conceived, the Third Street Promenade was not simply a shopping mall; it was a place to go for entertainment, company, relaxation, strolling; a place where one could watch jugglers and dancers, dine outdoors, argue politics, listen to music, browse a bookshop, take in a movie and more. (h) Moreover, the Third Street Promenade was planned as a gathering place for all segments of society: children, the elderly, and people from all cultural and economic groups. (i) The plan succeeded, and the Third Street Promenade became a resounding success as a favored destination for local residents, Southern Californians and international travelers alike. (j) As such, it became, and still is, an engine which drives Santa Monicas economy. = However, this success has had its costs. (k) The influx of visitors to the Third Street Promenade has brought significant traffic and parking problems. (l) At present, these problems are being addressed by a downtown parking strategy; however, the problem is significant and the options are limited because the area is very small, has been built out for decades and features a mixture of uses, including residential, which is inconsistent with simply building larger and larger parking structures. (m) Also, maintaining the delicate balance of entertainment, restaurants and retail which is the foundation of the Third Street Promenades success has been an ongoing = challenge. (n) Over the years, market forces have threatened the mix many times; and the City has responded to preserve the Third Street Promenades unique character through the = adoption of laws and polices which promote the general welfare by maintaining the Promenades eclectic character. = (o) In 1996, the City revised the Third Street Mall Specific Plan through the adoption of the Bayside District Specific Plan. A critical objective of this plan remained to [a]ttract A and accommodate a mix of uses serving residents, visitors and tourists during both @ daytime and evening hours. To this end, the specific plan established a ten-year projection and plan for the controlled growth of retail outlets on the Third Street Promenade. (p) However, the actual growth of retail far outstripped the planned growth to the point that the ten year projection is already met, just five years into the planning period. (q) As of 2001, there was already approximately 530,000 square feet of retail on the three block Third Street Promenade and the pressure to create more retail spaces continued unabated. (r) The massive influx of retail establishments displaced restaurants and sidewalk dining. (s) Five restaurants were lost in the two years prior to the adoption of the initial interim ordinance and four more were near or at the end of their leases; frontage devoted to sidewalk dining has shrunk. (t) As reflected by these changes, the balance of uses on the Third Street Promenade was once again threatened; this time by a loss of restaurants and influx of additional retail. If left unchecked, this trend will deprive the Third Street Promenade of its unique character and vitality by rendering it simply a standard shopping mall. (u) The influx of retail not only impacted the mix of establishment located on the Third Street Promenade, it also exacerbated parking and traffic problems. (v) Residents and visitors come to the Third Street Promenade for dining and entertainment, typically for many hours. In contrast, persons who are simply shopping, stay for shorter periods of time. The result is more people making more trips and thereby placing ever-increasing demands on the downtowns already overtaxed traffic and parking = capacities. (w) These increased demands degrade the quality of residents lives and the = desirability of the Third Street Promenade and the City as destinations and thereby threaten the Citys welfare . = (x) Accordingly, in order to preserve the Citys economic and social welfare, the = City Council must act in order to protect the unique qualities and vitality of the Third Street Promenade by ensuring the best possible mix of restaurants, retail and entertainment. (y) In general, the City must ensure the best possible mix of restaurants, retail and entertainment so that the Promenade remains unusual and attractive and does not become simply an average shopping mall through the continued expansion of retail at the expense of other uses. (z) Similarly, the City must preserve the outdoor dining opportunities which have become one of the hallmarks of the Promenade. (aa) Exactly how best to accomplish this end is a complex question which required detailed study, including a review of the specific plan. (bb) In light of these concerns, the City Council adopted Ordinance Number 2030 (CCS) on November 27, 2001, a forty-five day ordinance which established a moratorium on new or expanded ground floor retail use on the Third Street Promenade, adopted Ordinance Number 2032 (CCS) which extended Ordinance Number 2030 (CCS) until January 9, 2003, adopted Ordinance Number 2062 (CCS) which extended Ordinance Number 2030 (CCS) until September 9, 2003, and adopted Ordinance Number 2082 (CCS) which extended Ordinance Number 2030 (CCS) until September 9, 2005. (cc) After adoption of Ordinance Number 2030 (CCS), the City Council established a Promenade Uses Task Force to study the Promenade issues described herein, to seek feedback and input from the community, and to make recommendations to the City Council regarding the appropriate mix of uses on the Promenade. (dd) The Task Force met regularly since May 2002 and completed its work in March 2003. It considered goals and objectives for the Promenade and the Downtown, reviewed relevant City policies and regulations, and conducted community workshops. (ee) The Task Force subsequently prepared a series of recommendations for review by the City Council. In March, 2005, the City Council adopted an ordinance implementing the legislative changes for restaurants recommended by the Task Force. (ff) At this time, it is not clear how these legislative changes and other implementation measures will affect the viability of restaurants on the Promenade. (gg) For the reasons described above, the City Council finds that there is a current and immediate threat to the public health, safety or welfare and that a continued moratorium on new or expanded ground floor retail use on the Third Street Promenade is necessary to ensure that the character of the Promenade is preserved during the review period and that the City remains able to ensure that the best possible mix of restaurants, retail and entertainment is achieved. The approval of additional permits related to such retail use on the Third Street Promenade pending the Citys completion of its review of its = land use policies and regulations and their implementation would result in a threat to the public health, safety, or welfare since these changes threaten the quality of residents lives = and the desirability of the Third Street Promenade and the City as a destination. The extension of Ordinance Number 2030 (CCS), Ordinance Number 2032 (CCS), Ordinance Number 2062 (CCS), and Ordinance Number 2082 (CCS) for a period up to and including March 26, 2006, will provide the City with the necessary time to further evaluate and undertake appropriate actions to address these impacts. SECTION 2. Moratorium. (a) Subject to Section 3 of this Ordinance, a moratorium is hereby placed on the acceptance for processing of applications for approval of tentative tract maps, tentative parcel maps, administrative approvals, development review permits, conditional use permits, zoning conformance determinations, business licenses, and building permits related to a new or expanded retail use if that retail use would increase either the total linear footage or the total square footage of retail uses on the ground floor of any given block of the Promenade by more than five percent (5%) beyond the total linear retail footage and total retail square footage that existed on that block of the Promenade as of the effective date of Ordinance Number 2030 (CCS) which was extended by Ordinance Number 2032 (CCS), Ordinance Number 2062 (CCS), and Ordinance Number 2082 (CCS). A block is defined as both sides of the Third Street Promenade to the alley and the adjacent sides of adjoining side streets. Portions of the Third Street Promenade to be designated as a block for purposes of this Ordinance are: Block 1: 1200 Block of Third Street Promenade Block 2: 1300 Block of Third Street Promenade Block 3: 1400 Block of Third Street Promenade (b) Subject to Section 3 of this Ordinance, all applications which have not been deemed complete as of November 27, 2001, for approval of tentative tract maps, tentative parcel maps, administrative approvals, development review permits, conditional use permits, zoning conformance determinations, business licenses, and building permits related to a new or expanded retail use if that retail use would increase either the total linear footage or the total square footage of retail uses on the ground floor of any given block of the Promenade by more than five percent (5%) beyond the total linear retail footage and total retail square footage that existed on that block of the Promenade as of the effective date of Ordinance Number 2030 (CCS) as set forth in Subsection (c) of this Section shall be disapproved. (c) The total linear footage and square footage of retail uses on the ground floor of each block of the Promenade as of the effective date of Ordinance Number 2030 (CCS) is hereby established as follows: Block 1 961 total linear feet/137,980 total square feet Block 2 654 total linear feet/91,220 total square feet Block 3 820 total linear feet/114,193 total square feet (d) Priority for a business to be allocated any portion of the five percent (5%) retail linear or square footage expansion authorized by subsections (a) or (b) of this Section shall be established based on the issuance of a building permit for tenant improvements or the receipt of a business license for the retail use. This priority shall be lost if the building permit expires or the business fails to open within one year after the original business license is issued. SECTION 3. Vested Rights. This Ordinance shall not be applicable if an owner can establish a vested right to develop or operate commercial property otherwise prohibited by Section 2 of this Ordinance. SECTION 4. This Ordinance shall be of no further force and effect after March 26, 2006. SECTION 5. Any provision of the Santa Monica Municipal Code, appendices thereto, or prior interim ordinance 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. 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 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 8. 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 thirty days after its adoption. APPROVED AS TO FORM: _________________________ MARSHA JONES MOUTRIE City Attorney 43 Attachment C Notice of Public Hearing 44 NOTICE OF A PUBLIC HEARING BEFORE THE SANTA MONICA CITY COUNCIL SUBJECT: Introduction and First Reading of an Ordinance Modifying the Zoning Code to Establish a Review Process to Regulate the Conversion of Any Portion of a Restaurant or Any Associated Recreational or Entertainment Use Located on the Ground Floor Level Adjacent to the Third Street Promenade to a New or Expanded Retail Use, and Clarification of Clerical Error Related to Santa Monica Municipal Code Sections 9.04.08.15.020(1) and 9.04.08.15.040(1) LOCATION: Bayside Commercial District APPLICANT: City of Santa Monica DATE/TIME: TUESDAY, JANUARY 24, 2006, AT 6:45 PM LOCATION: City Council Chambers, Second Floor, Santa Monica City Hall 1685 Main Street, Santa Monica, California HOW TO COMMENT The City of Santa Monica encourages public comment. You may comment at the City Council public hearing, or by writing a letter. Written information will be given to the City Council at the meeting. Address your letters to: City Clerk Re: Bayside Retail Ordinance 1685 Main Street, Room 102 Santa Monica, CA 90401 MORE INFORMATION If you want more information about this project or wish to review the project file, please contact Tony Kim, Associate Planner at (310) 458-8341, or by e-mail at tony.kim@smgov.net. The Zoning Ordinance is available at the Planning Counter during business hours and on the City’s web site at www.santa-monica.org. The meeting facility is wheelchair accessible. For disability-related accommodations, please contact (310) 458- 8341 or (310) 458-8696 TTY at least 72 hours in advance. All written materials are available in alternate format upon request. Santa Monica Big Blue Bus Lines numbered 1, 2, 3, 5, 7, 8, 9, and 10 serve City Hall. Pursuant to California Government Code Section 65009(b), if this matter is subsequently challenged in Court, the challenge may be limited to only those issues raised at the public hearing described in this notice, or in written correspondence delivered to the City of Santa Monica at, or prior to, the public hearing. ESPAÑOL Esto es una noticia de una audiencia pública para revisar applicaciónes proponiendo desarrollo en Santa Monica. Si deseas más información, favor de llamar a Carmen Gutierrez en la División de Planificación al número (310) 458-8341. APPROVED AS TO FORM: ___________________________ AMANDA SCHACHTER Planning Manager 45