SR-042908-8ATo: Mayor and City Council
From: Eileen Fogarty, Director, Plann
Subject: Integrating Sustainable Santa
Circulation Element Update:
Principles
Recommended Action
City Council Meeting: April 29, 2008
Agenda Item:
ing & Community Development
Monica Principles into the Land Use and
Transportation, Economic and Housing
Staff recommends that the City Council endorse Transportation, Economic and Housing
strategies for incorporation into the Land Use and Circulation Element Concept Plan
Executive Summary
Santa Monica has completed eleven dynamic, thought-provoking and highly
participatory community workshops during the past year to create a vision for the City
through the new Land Use and Circulation Element (LUCE) of the General Plan. This
process has provided a forum for a wide range of the City's residential, institutional,
business, civic. and non-profit groups as well as interested individuals throughout the
City to come together to resolve issues and identify areas of agreement. This
consensus-building approach will provide the basis for ongoing involvement of our
community in every future aspect of land use and transportation decision making. While
the emphasis of the LUCE is naturally on circulation and the physical enviroriment, the
focus of the residents in many ways has been on preserving and enhancing those
things that nourish the sense of community. The community's vision translates into a
holistic approach for integrating land use, transportation, urban design, sustainability,
housing and also the economic capability to support desired community benefits.
Most. recently the City held two workshops. A "Roll out the Transportation Plan"
community workshop on March 1, 2008 presented a proposed Transportation plan and
provided a forum to discuss transportation principles. An "Integrating the Plan"
community workshop on April 2, 2008 addressed economic and housing principles as
they pertain to the LUCE Framework. This report covers transportation, economics and
housing concepts as they were discussed in these workshops.
The March and April workshops were the remaining forums prior to the release of the
LUCE Concept Framework to be brought forward in May. The Concept Framework will
reflect the tremendous involvement of the broad Santa Monica community. It will
identify all the basic elements and how they will be integrated together through
boulevards and the districts. The Concept Framework as well as other alternatives will
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then be analyzed through an environmental review process. before a final LUCE will be
brought forward.
Background
At the February 26, 2008 meeting City Council endorsed six framework elements that
provide the overarching approach to the plan. Through nine previous workshops on
Neighborhood Preservation, Placemaking, Industrial Lands Areas, Transportation and
Boulevards, the community articulated key values that were capsulated into these six
key framework elements including:
Neighborhood Preservation and Enhancement
Integration of Land Use and Transportation
• Proactively Manage Congestion
Public Benefit to Achieve Community Goals
Urban Character and Form
• Sustainable Santa Monica
Council last considered specific transportation concepts and principles at its October 30,
2007 meeting. The March 2008 "Roll out the Transportation Plan" community workshop
was held as an "open house" with staffed stations that provided detailed information on
components of the draft transportation concept plan, including the proposed: street,
bicycle, walking, transit; and auto networks (Exhibits A -E) and parking management
strategies. A presentation also described a "big picture" approach to address
transportation capacity as a limited resource with land use location. and intensity
integrally linked to transportation options and the need to adopt a proactive approach to
limit vehicular trips through aggressive demand management and other strategies.
The "Integrating the Plan" community workshop held earlier this month addressed
economic and housing principles for incorporation .into the Land Use and Circulation
Element (LUCE) framework. .The workshop covered such issues as the lack of
affordable housing units, the critical need for affordable units and workforce housing, a
summary presentation from the City's Workforce Housing Committee, a presentation on
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how various sectors contribute to the City's economy and opportunities for future
benefit.
Discussion
LUCE Transportation Strategies
Over the course of multiple meetings and intense discussions, the community has
begun to look at Santa Monica's transportation issues in a new way. Given that the city
can neither build its way out of congestion nor eliminate all congestion, the approach is
to begin to address the issue of new vehicle trips, in accordance with the city's
sustainability goals, at its source. A central tenant of the of the Land Use and
Circulation Element (LUCE) approach is to integrally link land use .with the
transportation system in a way that will reduce both existing trips and new trips, with the
ultimate goal of limiting net new trips. This approach is focused not only on congestion,
but addresses the larger sustainable/global environment issue of C02 emissions. This
comprehensive approach is in the forefront of transportation and Smart Growth planning
and is based on successful outcomes elsewhere. The City is ideally situated to
proactively manage congestion and this opportunity requires that the City proceed with
the following set of strategies simultaneously:
• Location - Integration of Land Use and Transportation: Locating development
near frequent transit service can cut peak period vehicle trips by as much as half.
The proposed framework focuses future growth in Santa Monica in specified activity
areas along transit corridors, with the areas of change and infill limited to
approximately 10% of the City. Rapid Bus routes along Wilshire, Santa Monica,
Lincoln and Pico Boulevards and the future Exposition Light Rail line create
opportunities for housing and mixed use with significantly lower auto use. Locating
activity centers along existing and proposed transit corridors encourages
environmentally sustainable development patterns and transportation decisions that
encourage reduced driving and increased walking and biking as well as new
buildings designed to reduce auto impacts and facilitate alternative transportation
opportunities.
• District-Wide Transportation Demand Management (TDM) Strategies: The
framework proposes an aggressive TDM overlay to reduce single occupancy vehicle
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trips and incentivize alternative modes. The framework focuses both on trips
generated from new development while also providing incentives and opportunities
for existing employers and institutions. The approach is to create area-wide TDM
"Districts" throughout the City that would include employers, schools, hospitals and
others to develop and implement comprehensive and cooperative solutions. The
basic approach is to incentivize transit, carpooling, shuttles, etc., while
disincentivizing single occupancy trips. Active guidance, information and feedback
would provided by a "manager" of the District. Districts will be set up either utilizing
an existing organization unit, such as a Business Improvement District, or through
establishing new Transportation Management Associations and/or Community
Benefit Districts. The measures .could include transit passes, additional
shuttle/transit service, shared parking, unbundling parking, a comprehensive flex-car
program, car. and vanpools, expanded bicycle facilities (loaners, racks, etc.) and
enhanced pedestrian facilities.
• Complete Neighborhoods: The framework establishes an approach where the
needs of daily life are within walking or biking distance of where people live.
Additionally, the framework emphasized the need fora high level of pedestrian
quality on all streets to reduce daily auto trips. Santa Mohica's thriving neighborhood
commercial districts are unique in Southern California, placing most residents and
employees within- walking distance of their daily needs, and thereby reducing the
80% of our daily trips that are not commute trips. The plan seeks to create the
optimal array of local services in existing districts and create new local serving areas
in parts of the city that are currently lacking services
• Impact Fees: New projects utilizing incentives for public benefit would be expected
to contribute fees to mitigate traffic impacts. The revenue created from these fees
would be used in conjunction with the TDM strategies to improve choices for
residents, employees, students and visitors thus reducing the level of existing trips.
Fees may. be used to provide bus passes for high school and college students,
increase Big Blue Bus frequency, improve walking routes, bicycle facilities or other
improvements.
If the city and the region continue to accommodate the automobile as we do today, our
streets will move fewer people over time, as buses are further slowed by congestion
and as walking and bicycling become less attractive. The result would be a continued
downward spiral with degraded quality of life for everyone.
The approach focuses on the "person" capacity of the city's transportation network,
ensuring the rapid movement of buses and the safe circulation of bikes and pedestrians.
The focus will be on mobility for all modes of transportation, not just facilitating the.
through movement of the automobile. To accomplish this mobility, the LUCE
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recommends that there be a careful differentiation among the types of streets within the
city, and of the functions they perform {Exhibit A). Using this approach, LUCE suggests
that the City must now give substantial weight to the ability of bicyclists and pedestrians
to move quickly and comfortably around and through the City in order to achieve the
sustainability goal of becoming less auto-dependent and more mobile. A citywide
network of pedestrian and bike paths has been carefully laid out.. The March 1ST
workshop offered draft bicycle, pedestrian; transit and auto network plans for review and
comment by the workshop attendees. Exhibits B - E provide the most recent iteration of
the proposed networks, reflecting community input from the workshop.
Economic Considerations
The City's economy continues fo be healthy, diverse and sustainable, continuing to
support the high quality of public services in the city. The community workshop
presented a range of uses that generate the greatest economic benefit to the City: The
presentation also identified sectors likely to grow throughout a changing economy and
noted where there are opportunities to respond to future market demand. The goal for
the City will be to carefully identify locations and economic sectors that can contribute to
the community's objectives while minimizing future impacts. Sector analysis identified
key areas of focus as the following:
Demand for Hotel Rooms: The analysis shows that the hotel industry generates from
15% of total city General Fund revenues, most of which is collected in the form of
Transit Occupancy Taxes. This revenue stream has grown over 58% in the last
three years. Demand could support additional rooms, particularly in the business
and family class hotel type of accommodations. Location opportunities identified
included Downtown, near the hospitals, the Bergamot Station vicinity, Lincoln
Boulevard near the Downtown and Pico Boulevard at the eastern end, near the
intersection with Interstate 10. Overnight guests generally add benefit to the City in
terms of revenue without generating a commensurate amount of traffic.
Retail activities led by automobile-related establishments are important generators of
sales tax revenue for the City.. The Downtown area generates over 20% of the City's
sales tax revenue from retail stores, although Main Street, Montana, Santa Monica
Boulevard, Wilshire Boulevard, Lincoln Boulevard and other corridors and districts
are also important contributors.
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The presentation identified opportunities for retail growth in a number of categories
such as drug stores, general merchandise/department stores and specialty retailers.
The LUCE framework emphasizes the need for "complete neighborhoods" with
goods and services for existing neighborhoods at a walkable distance from local
residents. To this end, new development at activity centers along the transit
Boulevards would be highly appropriate locations for convenience stores and locally-
oriented services.
• Movie theaters are a significant attraction and draw people to the downtown.
Existing theaters are becoming technologically obsolete in comparison to new
theatre development which is taking place in other communities on the west side,
and it will be important to upgrade these venues in order for the Downtown and Third
Street Promenade to maintain their competitive edges and draw customers.
The creative arts industry is very important as a Santa Monica employer, comprising
about 13% t0 15% of total employment in the City: The typical average for U.S.
municipalities is in the range of 2%. Recent estimates suggest that nearly 11,500
people are engaged in some form of the creative arts, entertainment, production and
post-production in Santa Monica. This sector generally varies from the typical
occupations in terms of commute patterns, and tends not to contribute to peak
commute traffic like other types of employment.
There is significant demand for office space in the City, and the interest in this space
is reflected in the recent increases in office space rents, which are among the
highest in the region. During the community outreach the need for small floor plate,
local-service office space was identified. Office spaces could be provided in activity
centers to serve local residents and creative industries that add to the cultural life of
the community. Also, the high lease rates for office space in Santa Monica can
serve to support public benefits such as work force housing in exchange for
entitlements.
Santa Monica is home to two well-respected hospitals. The health care industry is
evolving in terms of physical form, with hospitals now anchoring large mixed use
campuses that include medical offices; outpatient clinics, wellness centers, various
levels of geriatric care and visitor accommodations. Given their crucial role in
serving the community, hospitals need to be accommodated with areas for future
expansion to address workforce housing as well as other support services.
Housing
The housing affordability gap is an increasing concern and a serious impediment to the
City maintaining diversity and inclusivity in its residential population. The affordability
gap has been created and exacerbated by three factors:.
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• Starting in 1999, rent de-control has resulted in gradual conversion to market rental
rates of approximately 14,600 units or one-half of the City's rent-controlled housing
stock. This impacts approximately one-fourth of the City's entire housing stock of
approximately 49,500 units;
As existing rent-controlled apartments are vacated the affordable supply will
continue to decline; and
Real estate and land costs in Santa Monica are some of the highest in the country,
with these property values reflected in housing purchase prices and, to some extent,
rental rates.
There is a strong City commitment to address this growing gap through utilization of
funding and other resources that are available through affordable housing programs.
This program has the capacity to add about 400 units per year. Affordable housing
production will continue to be the City's highest housing priority, both to create new
housing and retain existing units. The LUCE will provide new locations for affordable
housing and also provide increased incentives. However, while the affordable programs
address aloes-to-moderate income level, there is an increasing need to address middle
income workers who can not afford to live in the City. These households often making
incomes well above the standards acceptable for affordable housing program eligibility
are still priced out of the market where the median condo price approaches $850,000.
The LUCE proposes utilization of performance-based incentives as a driving force to
create affordable and workforce housing as a "public benefit" to be derived from market-
rate housing and commercial development. Partnerships between the City and builders
as well as the City and employers are two channels for the creation of mid-range
housing that is priced between affordable units and the current market-rate products to
accommodate workers in categories such as first responders (emergency and health
care workers) and those job-holders who provide important public benefit to the
community, such as teachers and social service workers. A Citywide Workforce
Housing task force and the Westside Cities COG group are also addressing the
challenge. It's clear that there are no easy answers, with direct subsidies as an
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unrealistic option anywhere on the Westside because the properly values are so high
and the affordability gap is so large.
Strategic location of housing near transit, close to employment centers and near
neighborhood shopping and services will help create "complete" neighborhoods.. This
approach can create mixed-income residential and facilitate the use of alternative
means of transportation including transit and walking, and possibly reduce the need for
parking. "Unbundling" parking near transit (i.e., eliminating the physical requirement to
provide parking directly with the housing unit) would allow renters or owners to rent or
buy parking spaces as a separate transaction from the housing rental, offering a more
affordable housing unit cost. Finally, LUCE is proposing to increase housing in areas
that have been primarily commercial, such as the Industrial area and along the
boulevards near transit. This approach of replacing some of the City's commercial
uses, while increasing and incentivizing the City's workforce and affordable housing
growth will provide the much needed balance to the City's housing stock.
Public/Plannina Commission Comment
March 1, 2008 Workshop: The community expressed excitement about seeing the
plans and having the opportunity to review them in an open house setting. The open
house format encouraged people to visit each of the eight stations (Big Picture,
Transportation Demand Management Measures, Cycling, Walking, Transit, Autos,
Parking and Public Benefits) where they provided comments on flip chart that are
available for review at wwwshanethefuture2025.net.
April 2, 2008 Workshop: The community provided a range of comments from very
strong endorsement of the LUCE strategy to questions about parking, workforce and
affordable housing. The Planning Commission discussion reflected enthusiasm and
general support regarding the direction of LUCE. The following are some of the
observations and issues raised:
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Housing:
• Maintaining diversity in Santa Monica is a top priority: affordable housing and
diverse economy/businesses are both vitally important.
• It was noted that there needs to be clarification of policy regarding senior housing,
congregate housing and assisted living
• A concern was noted as to whether both affordable and workforce housing needs
can be met. There was enthusiasm expressed about workforce housing but also a
note that we need to be reasonable about our expectations.
Transportation:
• More details about implementing the TDM strategies and the extent to which the City
should ultimately strive for "No Net New Trips"
• A question was raised about the effectiveness of reducing on-site parking
requirements near transit
• It was noted that the focus on transit nodes is critical
• There was a desire to know where traffic is coming from and where is it going and
also concern that people drive to transit (i.e. that they will only walk''/4 mile)
Economics:
• Clearly. identifying public benefit - severaP Commissioners noted that the economic
feasibility analysis currently underway is going to be very important
• There was support expressed for new hotel space, especially for. the business
traveler. A question was raised about where, and it was noted that Downtown is and
especially good location.
Other:
• A proposed Activity Center on Santa Monica Blvd needed to be added
Financial Impacts & Budget Actions
The recommendations presented in this report do not have any direct budget or fiscal
impacts
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Prepared by:
Ellen Gelbard, Assistant Director
Approved:
- _r___... _.._
Exhibit A: Draft Street Network Map
Exhibit B: Draft Bicycle Network Map
Exhibit C Draft Walking Network Map
Exhibit D: Draft Transit Network Map
Exhibit E: Draft Auto Network Map
Forwarded to Council:
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Exhibit A
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43
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