SR-102307-7C~_
~;tYOf City Council Report
Santa Monica
City Council Meeting: October 23, 2007
Agenda Item: ~"" "'~
To: Mayor and City Council
From: Eileen Fogarty, Planning & Community Development
Subject: Introduction and adoption of an Emergency Interim Ordinance Extension
to require a Development Agreement for projects over 7,500 square feet
of floor area or projects containing more than 5 or 15 housing units, artist
studio units, or single room occupancy units, respectively for the Industrial
Conservation (M1) and Light Manufacturing Studio (LMSD) districts, and
for changes in land use on parcels that exceed 32,000 square feet in the
LMSD and 15,000 square feet in the M1 district.
Recommended Action
Staff recommends that the City Council introduce and adopt the subject emergency
interim ordinance extension subject to specified exemptions:
1. establishes a Development Agreement for projects over 7,500 square feet of
floor area or projects containing more than 5 or 15 housing units, artist studio
units, or single room occupancy units for the Industrial Conservation (M1) and
Light Manufacturing Studio (LMSD) districts, respectively; and,
2. establishes a Development Agreement requirement for certain changes in land
use on parcels that exceed an area of 32,000 square feet in the LMSD and
15,000 square feet in the M1 districts.
Executive Summary
The attached proposed interim emergency ordinance extension will add several discreet
modifications to and continue for an eighteen month period the provisions adopted on
August 28, 2007 addressing development within the industrial areas. To become
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effective, the proposed emergency ordinance requires five affirmative votes from the
City Council.
On August 28, 2007, the City Council adopted Ordinance Number 2238 (CCS), effective
for 60 days, to control the piecemeal development activity that was occurring in the
City's industrial districts thereby providing the City the opportunity to adequately plan for
the future of this area as contemplated by the City's Land Use and Circulation Elements
and Zoning Ordinance comprehensive revision and update. Concerns included:
• development of large, dense blocks of a single residential type without adequate
infrastructure, amenities and services,
• lack of adequate roadway structure,
• lack of neighborhood environment,
• increased conflict between housing and existing uses,
• increased speculative development pressure,
• precluded opportunities for improving traffic conditions through the development of
the light rail
• revised the street grid
• lack of usable open space and public spaces
Ordinance Number 2238 (CCS) only authorizes development that does not exceed
7500 square feet of floor area or 15 units in the LMSD or 7500 square feet of floor area
or 5 units in the M1, excluding density bonus units, unless the project is developed
pursuant to a development agreement, or is a school existing before September 1988.
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Auto dealerships remain subject to Ordinance Number 2186 (CCS) rather than this
interim ordinance. In addition, Ordinance Number 2238 (CCS) provides that no change
of use shall be authorized on parcels in the LMSD that exceed 32,000 square feet and
parcels that exceed 15,000 square feet in the M1 District unless the development is a
City project, developed pursuant to a development agreement, or the Director of
Planning and Community Development makes a written determination that the change
of use within an existing multi-tenant property will not constitute a substantial change in
mode or character of the property as a whole.
Staff continues to study the current development market in light of the planning issues
identified for the area through the LUCE process and has identified additional provisions
to improve administration and better achieve the goal. This report outlines the following
proposed modifications to the August 28 ordinance in relation to regulating existing
buildings:
• Single tenant buildings. Extend the Director's authority to allow changes in land use
without obtaining a DA (previously authorized only for changes in multi-tenant
buildings) to single tenant buildings;
• Minor changes in land use. Projects less than 7,500 square feet. Exempt changes
in land use up to 7,500 square feet from the DA requirement;
• Significant changes in land use in existing buildings. Expand administrative review to
permit projects that result in a change of land use, based on specified, objective
criteria; and
• Time period for Director's decision. Establishes a 45-day review period by the
Director to determine if a change of use should be exempted from the DA
requirement.
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Discussion
Background
The August 28, 2007 staff report and accompanying ordinance contain significant
information and analysis supporting adoption of the interim ordinance and provides
background information as to the intent and character of the industrial districts and
recent development activity in the area, and provide an update on the Land Use and
Circulation Element (LUCE) project; all of which are key considerations in assessing the
value and importance of the subject ordinance. Subsequent to the ordinance
Since the Council's action, staff has further analyzed the ordinance with the broader
planning objectives. and recommends the following modifications.
Affordable Housing Projects
At the August 28th hearing, the City Council directed that the proposed revised
ordinance contain a provision establishing exemption to the DA requirement for 100
percent affordable, low and very low deed-restricted housing projects with fewer than 51
units. Qualifying affordable housing projects would be exempt from the interim
ordinance. Instead, the projects would be subject to the underlying zoning district
development standards. In the M1 District, affordable rental housing projects up to 50
units would be permitted by right. Similarly, qualifying housing (artist studio and single
room occupancy) projects in LMSD, whether rental or ownership housing, would be
permitted by right; discretionary tract map approval would be required for ownership
housing.
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Effective dates. As proposed in the ordinance, the affordable housing exemption will
not become effective until on or after August 1, 2008. The delayed implementation of
this exemption will provide the public and decision-makers an opportunity to assess the
results of the upcoming industrial lands workshop and review the draft LUCE document.
The long range planning goals and infrastructure evaluation established in the endorsed
draft plan will enable the Council to determine the appropriateness of certain housing
opportunities in this part of the City based on a future vision. If inappropriate due to lack
of infrastructure or other planning objectives, the Council will have sufficient time to
direct staff to make modification to the subject ordinance to remove the exemption. If
there is a clear direction and consensus for the future land uses and infrastructure in the
industrial areas, Council could choose to address these issues in late spring.
Single Tenant Buildings
The change of use provision in existing buildings established in the adopted and
proposed ordinances apply to exceptionally large properties. Specifically, properties
containing more the 15,000 and 32,000 square feet of land area in the M1 and LMSD,
respectively, are subject to this provision. The adopted ordinance further applied this
change in land use exclusively to multi-tenant buildings. The proposed ordinance
extends this standard to single tenant uses. In both ordinances, the Director retains the
authority to evaluate when a project results in a substantial change to the mode or
character of operation and, therefore, requires a DA.
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Minor Changes in Land Use
The proposed ordinance includes a provision exempting land uses that occupy less
than 7,500 square feet of floor area from the ordinance. Uses meeting this threshold
would be allowed to change use without evaluation of the change in mode or character
of operation. The City has previously established 7,500 square feet as a development
threshold that ensures preservation of the scale and character of existing
neighborhoods.
Significant Changes in Land Use in Existing Buildings
To improve administration and ensure that future land uses are consistent with broader
community objectives, it is recommended that additional criteria be established to better
evaluate changes in land use. Using the previously adopted change of use standard
applied to large parcels, it is recommended that the Director also evaluate projects in
existing buildings that result in a substantial change to the mode or character of
operation. The objective of this provision is to ensure that projects for which the
community has already articulated support for can continue to be allowed without a DA
and subject to existing development standards. Projects would only be exempt from the
DA process if the Planning and Community Development Director finds that:
• The change of use is permitted in the district in which it is located (i.e.; no
conditionally permitted uses)
• No additional floor area is added to the existing building
• The proposed use, given its location, would not impair the LUCE process by
unduly restricting the City's ability to plan the future development of
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neighborhoods with appropriate mixes of uses, adequate infrastructure,
streetscape, services and other amenities essential to quality of life, and would
not interfere with resident and business owners' present quality of life
• The change of use results in the property complying with all current development
standards (parking, setbacks, open space, eliminates a nonconforming land use,
etc.)
• The change of use does not result in a substantial remodel
• The change of use does not result in remodel construction costs that exceed four
million dollars cumulatively over the life of the subject ordinance. (This figure is
based on a $200 per square foot valuation of a 20,000 square foot building).
Time Period for Director's Decision
The change of use provision requires the Director of Planning and Community
Development to assess whether certain projects represent a substantial change to the
mode or character of operation or does not fulfill other criteria and, therefore, subject to
a DA. The previously adopted ordinance did not establish a time period to render this
determination. The proposed ordinance establishes a 45-day review period. This time
period is reasonable to prepare a written determination and provides applicants with a
measure of predictability in this review process.
Previous Council Actions
Over the past sixteen months the City Council has taken the following actions with
regard to the industrial area:
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April 11, 2006: Implemented the City's state density bonus (Ordinance 2180
expires May 11, 2008, citywide)
April 24, 2007 Adopted Interim emergency ordinance requiring housing projects
over 50 units to obtain a DR permit. (Ordinance 2226 expired June
23, 2007)
May 22, 2007: Adopted Interim Ordinance 2226 extended (Ordinance # 2226
(Ordinance 2232 Expires May 8, 2009)
July 24, 2007: Directed staff to prepare subject interim ordinance for industrial
lands
August 28, 2007: Adopted Interim Emergency Ordinance establishing DA
requirement in the industrial districts adopted /effective
Alternatives
The City Council previously rejected alternatives that relate to a status quo (no changes
to development standards) and moratorium options. Implementing any of the alternative
actions has the potential to increase or decrease the number of projects that will be
subject to a Development Agreement process. Other alternatives the City Council may
consider include:
1. Modify the thresholds at which a Development Agreement is required.
2. Eliminate or modify specific components of the ordinance, such as the
Development Agreement requirement for changes in land use on large parcels
Environmental Analysis
The proposed emergency interim ordinance is exempt from the provisions of the California
Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State Implementation
Guidelines in that CEQA applies only to projects having the potential to cause a significant
effect on the environment. The proposed action to require a Development Agreement
application for development over 7,500 square feet in area or more than 15 units, or for changes
in land use on certain sized parcels in the industrial district does not have this potential. Rather,
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the proposed amendment will expand the number of projects subject to public review and
evaluated pursuant to CEQA. Additional findings supporting this exemption are included in the
attached ordinance.
The proposed ordinance is also exempt pursuant to CEQA Guidelines Section 15183,
which provides that projects that are consistent with development density established by
existing zoning or general plan policies for which an EIR was certified shall not require
additional environmental review except as might be necessary to examine project-
specific significant effects which are peculiar to the project or its site. The proposed
ordinance modifies development application and review procedures by requiring a
Development Agreement application for development over 7,500 square feet in area or
more than 15 units, or for changes in land use on certain sized parcels in the LMSD and
M1 zone districts. Within these designated zone districts, projects below these
thresholds will remain subject to existing development standards and procedures.
Projects above these thresholds will require a Development Agreement application and
approval. No change in the General Plan Land Use and Circulation Element (LUCE) is
proposed. No parcel rezoning is proposed; all affected parcels will retain their current
zone district classification. Thus, under the proposed ordinance, potential development
will be the same or less than the density established by existing zoning and general
plan policies for which the following environmental documents were certified pursuant to
CEQA: Final EIR on the proposed Santa Monica General Plan LUCE, February 1984;
Final EIR for the City of Santa Monica Zoning Ordinance, December 1986; Final
Supplemental EIR for the City of Santa Monica Zoning Ordinance, June 1988.
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As stated above, the proposed ordinance makes procedural changes for development
above identified thresholds; they do not change existing density-related standards
contained in the LUCE or Zoning Ordinances and reviewed in the above-referenced
EIRs. In addition, there are no project-specific significant effects which are peculiar to
the proposed ordinance or sites subject to it. There are no reasonably foreseeable
project-specific significant effects caused by the enactment of the ordinance and the
Development Agreement requirement since physical changes do not directly result from
these ordinance amendments. Rather, these amendments are of general application
and at least twice removed from potential physical changes. Future physical changes
will not occur unless (1) a specific development project is proposed, and (2) the City
grants its approval for that specific project by Development Agreement. The intervening
project application and City review and approval prevent any impacts asserted to result
from future projects to be characterized as peculiar to the ordinance amendments
themselves. Accordingly, the proposed project is categorically exempt under CEQA
Guidelines section 15183, and no additional environmental review is required.
Budget/Financial Impact
The recommendation in this report does not have any significant budget or fiscal
impacts, however, the Planning and Community Development Department expects
minor decreases in revenue generated from fees that may. have been collected over the
next two years related to permit activity. The City would not receive increased property
taxes generated by a property that might have been redeveloped under existing zoning.
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Since it is unknown which properties may have been redeveloped and to what extent
proposed improvements would contribute to a property's valuation, it is not possible to
calculate unrealized tax revenue.
Prepared by:
Jonathan Lait, AICP, Principal Planner
Approved:
Forwarded to Council:
Director, Pt.l~nning &
Development
Attachments:
Exhibit A: Emergency Interim Ordinance
F:\CityPlanning\Share\COUNCIL\STRPT\2007\Industrial Zoning IEO Pt. II v.d(cao).doc
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Reference
Ordinance No.
2242 (CCS).