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sr-022310-7bCity Council Meeting: February 23, 2010 Agenda Item: ~ B To: Mayor and City Council From: Eileen Fogarty, Director, Planning & Community Development Subject: Text Amendment Application 09TA-003 requesting re-establishment of non-conforming ground floor office use following use by a charitable, youth or welfare organization Recommended Action Staff recommends that the City. Council adopt an ordinance amending Section 9.04.08.16.020 of the Santa Monica Municipal Code to permit the reestablishment of previously existing ground floor general office use that has not been expanded or altered following occupancy by a charitable, youth or welfare organization, based on specific conditions. Executive Summary Girl Scouts of Greater Los Angeles (GSGLA) owns and occupies atwo-story office building at 2525 Ocean Park Boulevard, in the C2 Zoning District, originally built for general office use in 1963. When GSGLA, anon-profit organization, moved into the building, it transitioned from being anon-conforming use (general office on the ground floor) to a conforming use (offices and meeting rooms for charitable, youth and welfare organizations). GSGLA is now moving out of the building and states that it is having difficulty selling the property because the ground floor must now comply with the current C2 District permitted uses, which prohibit ground floor general office within 150 feet from Ocean Park Boulevard. GSGLA is requesting to amend the Zoning Code to allow reestablishment of anon-conforming ground floor office use as an exception to the regulations prohibiting reestablishment of non-conforming uses after conversion to a conforming use. GSGLA's situation represents a hardship not envisioned by the Code or General Plan, and an unintended consequence of provisions of the Code developed to encourage charitable, youth and welfare organizations. The proposed language ensures that the amendment's impact is narrow and does not allow expansion or return of ground-floor office use when a building's ground floor has been converted to a more pedestrian- friendly activity. Rather than creating an exception in the Non-conforming Buildings and Uses chapter, the amendment modifies language in the C2 Permitted Uses section. The proposed amendment includes a finding of consistency with the General Plan and is categorically exempt from the provisions of the California Environmental Quality Act (CEQA). 1 The Planning Commission unanimously recommended adoption of the proposed ordinance, with one adjustment that is included in staffs recommendation, at a public hearing held on January 6, 2010. Background In 1963, a 15,867 square foot, two-story office building was constructed on the property at 2525 Ocean Park Boulevard. The building included general office use on the first floor. The Code was later amended for consistency with the City's 1984 Land Use Element goals for Neighborhood Commercial Districts, which discouraged new ground floor office use. As such, ground floor office use became legal, non-conforming. GSGLA purchased the property for a primary office location in 2001, and occupied the ground floor under the provisions of the Code allowing for office use by a charitable, youth or welfare organization. During GSGLA's occupancy of the building, it was used for the organization's administration and staff meeting purposes. The ground floor office continued to be utilized for the same office-type uses that had always existed at the site. However, GSGt.A's tenancy resulted in the conversion of anon-conforming use (ground floor office) to a conforming use (offices and meeting rooms for charitable, youth and welfare organizations). The concept of permitting charitable office and meeting uses in the C2 Zoning District without ground floor restrictions is intended to encourage such organizations, allowing them more flexibility to locate near residential areas of the community that they serve. GSGLA's situation highlights an unanticipated consequence of the Code; although GSGLA has not altered the building or its ground floor use, its non-profit status has made the building conforming. Once it has been removed, anon-conforming use-may not be reestablished. GSGLA now claims that the conforming status of the structure has become a burden for the organization as it significantly limits the opportunity for subsequent owners or tenants, and thus future potential buyers. According to their application and testimony 2 before the Planning Commission, all prospective purchasers have been interested in the building for general office use. To resolve this situation, in August 2009, GSGLA submitted an application requesting to amend the Code to allow the reestablishment of the non-conforming ground office floor use as an exception in SMMC Section 9.04.18.030(c) (Legal, nonconforming uses: Conversion to Conforming Use). Discussion Applicant's Proposed Text Amendment GSGLA proposed the following amendment to sub-section (c) of SMMC 9.04.18.030 (amendment in bold italics): "A legal nonconforming use is a use which lawfully existed on the effective date of the ordinance codified in this Chapter but which is either: (a) not now permitted in the district in which it is located; or (b) now permitted by a performance standards permit, use permit or conditional use permit but no such permits have been obtained. A legal, nonconforming use shall comply with the following provisions: (a) ... (b) (c) Conversion to Conforming Use. If a nonconforming use is converted to a conforming use, the nonconforming use may not be resumed, except if the conforming use was established by a charitable, youth or welfare organization use of a non conforming office building, the prior non- conforming use maybe reestablished." The applicant justified this request based on the particular characteristics of the use, the zoning district, and hardship on the organization. The full application statement is included as Attachment B. At the January 6 Planning Commission hearing, the applicant stated that GSGLA now supports staffs substitute amendment proposal. AnalYSis . The Non-conforming Building & Uses chapter of the Zoning Ordinance sets forth rules for dealing with the remnants of previous zoning eras, gradually removing them through replacement with conforming uses and in some cases through amortization. Removal of non-conforming conditions is a very strong principle in the Zoning Ordinance, and it is important to carefully consider the ramifications of any change to this Code section. 3 In the C2 Zoning District, in the interest of creating a sense of place and an active neighborhood street environment, office use on the ground floor became prohibited. If the building at 2525 Ocean Avenue were constructed today, it would require ground floor retail or other pedestrian-friendly uses that activate the street environment. The vision for this district will remain the same in the future, as the draft Land Use and Circulation Element (LUCE) similarly discourages ground floor office use in neighborhood commercial districts. Recognizing the continuing importance of charitable, youth and welfare organizations in the community, staff has developed alternate language that meets the needs of the applicant while also maintaining the integrity of the Non-conforming Buildings and Uses language in the Code. The proposed resolution (Attachment A) would modify the C2 Zoning District Permitted Uses Section [SMMC 9.04.08.16.020(1)]. This section already includes one exception to the prohibition of ground floor office use for existing buildings. The proposed language allows re-establishment of ground floor general office use in a building initially designed with ground floor office use when the offices have been used by a charitable, youth or welfare organization. The amendment's criteria require that any portion of the ground floor space that was not altered by the charitable organization may continue to be used for general office purposes, and specifies that no expansion of the non-conforming use will be allowed. The criteria are intended to relieve the hardship in cases where the occupancy of the charitable organization alone has rendered the space non-conforming, while ensuring that the amendment does not allow the replacement of any pedestrian-oriented use with ground floor office use. If alterations have been made for more pedestrian-oriented ground floor uses, the return of previous ground floor office use would not be consistent with the criteria and therefore not permitted. Commission Action On January 6, 2010, the Planning Commission held a public hearing and unanimously recommended staff's recommendation for adoption of the proposed text amendment.. The Commission recommended modifying the language to clarify that if alterations had 4 been made to accommodate other uses in part of the ground floor area, only the area that had not been altered could be re-established as general office use. The proposed resolution incorporates this recommendation. General Plan Consistency The 1984 General Plan Land Use Element states clearly in a number of places that pedestrian-oriented uses and building design are to be encouraged in neighborhood commercial districts. Policy 1.7.1 requires "that a majority of the ground floor street frontage ... be utilized for neighborhood commercial uses." Chapter 2.4 of the draft LUCE describes the future vision for Ocean Park Boulevard as a neighborhood boulevard. In the area between Centinela Avenue and 25th Street: "As development occurs, new buildings include ground floor commercial uses and local-serving offices or housing on the upper floors, which strengthen the area's role as a neighborhood center." Proposed LUCE policies promote active ground level uses and building facades that attract pedestrians. The LUCE introduces new tools to achieve more vitality in the neighborhood centers and generally maintains the previous vision for this area. The narrow exception proposed by staff is consistent with these existing and draft LUCE policies because it would only apply to existing ground floor office uses in buildings designed for such use that were not converted to accommodate more pedestrian- friendly activities. Additionally, 1984 Land Use Element Objective 1.1 includes a number of bullet points that define and qualify the overall objective to "Improve the quality of life for all residents by providing a balance of land uses ..." One of these points is "Ensuring fair treatment of property owners and residents in the City." The proposed text amendment would be consistent with the objective of ensuring fair treatment in that it would provide a 5 charitable organization the opportunity to purchase and sell an office building in the same manner as any commercial property owner without changing the status of existing ground floor office use, which could potentially affect the building's value. At the same time, by specifying that the reestablishment of general office use is only permitted if it has not been replaced by a preferable, compatible use, the proposed text amendment remains consistent overall to the principles set forth for Ocean Park Boulevard as a pedestrian-friendly neighborhood commercial district. Thus, the proposed zoning text amendment is consistent in principle with the goals, objectives, policies, land uses and programs specified in the adopted General Plan. Alternatives Ih addition to the recommended action, the Council may consider the following with respect to the project: A1. Recommend the Text Amendment as proposed by the applicant or with revised language. A2. Recommend that the City Council deny TA 09-003 Environmental Analysis The proposed ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) in that it can been seen with certainty that the proposed ordinance amendment does not have the potential to significantly impact the environment, since it would only allow ground-floor commercial office use in an existing building already designed for such use. There are no reasonably foreseeable impacts such as a direct or indirect physical change in the environment that would result from the adoption of the proposed ordinance. Public Outreach Pursuant to Municipal Code Section 9.04.20.22.050, notice of the public hearing was published in the Santa Monica Daily Press at least ten consecutive calendar days prior 6 to the hearing. At the request of staff, the applicant consulted with the adjacent neighborhood association, Friends of Sunset Park (FOSP). FOSP submitted a comment and testified at the Planning Commission hearing, stating that their main concern was that the text amendment would not result in any new development of non- pedestrian friendly facades in the city's commercial areas. Financial Impacts & BudgetActions The recommendation in this report does not have any budgetary or financial impacts. Prepared. by: Elizabeth Bar-EI, AICP, Senior Planner, Community & Strategic Planning Division .Approved: Forwarded to Council: ,....~, Rod G~ ould ~-- City Manager A. Draft Ordinance B. Text Amendment Application 7 Development Attachments: Al-I'ACHMENT A: Draft Ordinance f:\atty\muni\laws\barry\C2 Zoning District Text Amendment CC 2-23-10 City Council Meeting 2-23-10 Santa Monica, California ORDINANCE NUMBER (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTION 9.04.08.16.020 TO AUTHORIZE THE RE-ESTABLISHMENT OF A GROUND FLOOR GENERAL OFFICE USE FOLLOWING A PROPERTY'S USE BY A CHARITABLE, YOUTH. OR WELFARE ORGANIZATION WHEREAS, prior to the adoption of the Land Use Element in 1984, ground floor general office use was a permitted use in what now constitutes the C2 Zoning District; and WHEREAS, the City's Zoning Ordinance was subsequently amended to prohibit ground floor office use in this district; and WHEREAS, after ,this amendment, existing ground floor general office uses became legal nonconforming; and WHEREAS, after a legal nonconforming use is converted to a conforming use, the nonconforming use may not be resumed; and WHEREAS, the Zoning Ordinance permits ground floor office use by charitable, youth, and welfare organizations in the C2 District; and 1 WHEREAS, this authorization aids such organizations by providing them with greater flexibility to locate near the residential areas of the community that they serve; and WHEREAS, once a building containing a legal non-conforming general office use is occupied by a charitable organization, that use technically becomes conforming, but only so long as it is undertaken by a charitable, youth, or welfare organization; and WHEREAS, a 15,867 square foot, two-story office building was constructed in 1963 in the 2500 block of Ocean Park Boulevard with general office use on the first floor, a location now zoned C2; and WHEREAS,. this property was subsequently purchased by the Girl Scouts of Greater Los Angeles (GSGIA); and WHEREAS, GSGIA continued to use the ground floor for office use after it purchased the property; and WHEREAS, GSGLA now seeks to sell the property; and WHEREAS, on August 20, 2009, the GSGtA filed a text amendment requesting that the non-conforming use section of the Zoning Ordinance be modified to allow the resumption of a general office use when a building has been continually used for office purposes by a charitable, youth, or welfare organization; and WHEREAS, staff has proposed alternative language to address GSGLA's objective, an alternative which GSGIA now supports; and WHEREAS, the Planning Commission reviewed the draft text amendment at a public hearing on January 6, 2010; and 2 WHEREAS, the Planning Commission unanimously recommended adoption of the proposed amendment with one suggested modification; and WHEREAS, the City Council held a public hearing on February 23, 2010; and WHEREAS, the proposed amendment is consistent in principle with several of the goals, objectives. and policies of the General Plan in that the amendment is consistent with Land Use Element Objective 1.1 which includes a number of bullet points that define and qualify the overall objective to "Improve the quality of life for all residents by providing a balance of land uses .. ," with one of these points being "Insuring fair treatment of property owners and residents in the City;" and WHEREAS, the proposed text amendment would be consistent with the objective of ensuring fair treatment in that it would provide a charitable organization the opportunity to purchase and sell an office building in the same manner as any commercial property owner without changing the status of existing ground floor office use, which could potentially affect the building's value; and WHEREAS, at the same time, by specifying that the reestablishment of general office use. is only permitted if it has not been replaced by a preferable, pedestrian- oriented use, the proposed text amendment remains consistent overall with the principles set forth for Ocean Park Boulevard as apedestrian-friendly neighborhood commercial district; and WHEREAS, the public health, safety and general welfare requires the adoption of the .text amendment in that the change in the status of the property owned by a charitable organization from legal non-conforming to conforming can become a burden 3 as this change significantly limits the opportunity for subsequent owners or tenants and thus future potential purchasers of the property, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 9.04.08.16.020 is hereby amended to read as follows: 9.04.08.16.020 Permitted uses. The following convenience goods and service type uses shall be permitted in the C2 District, if conducted within an enclosed building, except where otherwise permitted: (a) Appliance stores; (b) Appliance repair shops; (c) Art galleries; (d) Artist studios above the first floor; (e) Branch offices of banks or savings and loan institutions; (f) Barber or beauty shops; (g) Child day care centers; 4 (h) Cinema buildings in existence since May 23, 2000; (i) Cleaners; Q) Congregate housing; (k) Domestic violence shelters; (I) General offices above the first floor; and on the ground floor for parcels located at least one hundred fifty feet from Montana Avenue, Ocean Park Boulevard, or Pico Boulevard, except general office uses shall also be allowed on the ground floor within one hundred fifty feet of Montana Avenue, Ocean Park Boulevard, and Pico Boulevard in buildings in existence since January 17, 2007 avh+s# if either subdivision (1) or subdivision (2) of this subsection (I) apply: (1) The building has #aa~e all of the following characteristics: {-~-}(~ The building's front facade and entrance is not oriented toward Montana Avenue, Ocean Park Boulevard, and Pico Boulevard, and ~2}(~ The building has a finished ground floor which is more than three feet below the level of the adjacent 5 sidewalk along Montana Avenue, Ocean Park Boulevard, or Pico Boulevard, and {3}~ .The building is set back a minimum of twenty feet from the sidewalk along Montana Avenue, Ocean Park Boulevard and Pico Boulevard, and {4}~ When the building was initially developed, the ground floor was designed and intended for non-pedestrian uses, or; (2) The building has all of the following characteristics: (A) When the building was initially developed the ground floor was designed and intended fior general office use, and was legally constructed and occupied in that manner, and (B) The ground floor was subsequently occupied by a charitable, youth or welfare organization, and (C) The charitable, youth, or welfare organization continued to use the ground floor or a portion thereof, for office use during the entire period that it occupied the property, and 6 ~D) OnIV those portions of the ground floor that were continuously used by the charitable, youth or welfare organization for office use may be resumed for general office use, no expansion of this general office use can occur and if this general office use is subsequently converted to another use or otherwise terminated, this general office use cannot be resumed again except in accordance with this subdivision (m) General retail and specialized retail uses; (n) Homeless shelters with less than fifty-five beds; (o) Laundromats; (p) Libraries; (q) Multifamily dwelling units; (r) Offices and meeting rooms for charitable, youth, and welfare organizations; (s) Photocopy shops; (t) Places of worship; (u) Plant nurseries (provided all supplies, except planted stock, are kept entirely within an enclosed building); 7 (v) Restaurants of fifty seats or less and at which no alcohol is served or consumed; (w) Schools; (x) Senior group housing; (y) Senior housing; (z) Shoe repair stores; (aa) Sidewalk cafes not more than two hundred square feet in area, subject to the limitations contained in Section 9.04.10.02.460; (bb) Single-family dwelling units; (cc) Single-room occupancy housing; (dd) Specialty offices; (ee) Tailors; (ff) Theaters with fewer than seventy-five seats; (gg) Transitional housing; (hh) Accessory uses which are determined by the Zoning Administrator to be necessary and customarily associated with, and appropriate, incidental, and subordinate 8 to, the principal permitted uses and which are consistent with and no more disturbing or disruptive than permitted uses; (ii) Other uses determined by the Zoning Administrator to be similar to those listed above which are consistent with and no more disturbing or disruptive than permitted uses. SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with. the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 3. If any section, subsection, .sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the 9 official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption. 10 APPROVED AS TO FORM: ATTACHMENT B Text Amendment Application ATTACIiMENT TO APPLICATION Application for Amendment of Comprehensive Land Use and Zoning Ordinance/General Plan Amendment Applicant: Girls Scouts of Greater Los Angeles Property location; 2525 Ocean Park Boulevard, Santa Monica, CA (Citywide) #1. PROPOSED WORDING FORTEXTAMENDMENT Santa Monica Municipal Code Section 9.04.18.030 Leeal, non-conforming uses, Paraeraoh Icl Conversion of conforming Use: If a nonconforming use is converted to a conforming use, the non conforming use may not be resumed, except if the conforming use was established by a charitable, youth or welfare organization use of a non conforming office building, the prior non conforming use may be reestablished. #2 REASONS FOR PROPOSED AMENDMENT In 2002, the Angeles Council of the Girl Scouts, a subsidiary of the Girl Scouts of Greater Los Angeles {GSGLA) purchased the building located at 2525 Ocean Park Boulevard consisting of approximately 14,100 rentable square feet, to be used as general office and administrative space for their operations. The building was zoned C2 but as it had always been used. as general office space since its construction, this prior office uses were permitted as a "legal, non-conforming use". Unknowingly, when the Girl Scouts purchased and occupied this building, they lost this status and it reverted to Neighborhood Commercial District for only Permitted uses, as under City of Santa Monica Municipal Code Part 9.04.08.16 C2 Neighborhood Commercial District. Section 9.04.08.16.020 Permitted uses {r) Office and meeting rooms for charitable, youth and welfare organizations, the Girls Scouts qualify as a permitted use. This permanently prevents on a go-forward basis any other user other than a permitted use to occupy this building, which is not suitable for retail business. GSGLA desires to close this office due to its reorganization. They are hoping to sell this building as they are in critical need for the proceeds from this sale to fund current Girl Scout programs that serve 67,000 members in the Greater Los Angeles area, and approximately 500 members located in the City of Santa Monica. Not being able to sell to an office user due to the loss of this status for the ground floor has made it impossible to sell this building. GSGLA strongly believes this text amendment is warranted for the following reasons: 1. This location is in an office location with only other office buildings in the area. There is no pedestrian retail traffic in this block. 2. There is no street parking along this section of Ocean Park Boulevard, and property has a red no parking zone for the entire length of this. block which would not lend itself to retail or other permitted uses. 3. GSGLA has only used this location for office and general administrative purposes. Retaining the office use on the ground floor has no negative impact to the neighborhood. There would be no additional traffic, noise, construction or parking as a result of allowing this to remain for office use. 4. The loss of the ability to put an office user in this building has resulted in an unintended negative consequence as GSGLA is now unable to sell or lease this building to the logical user, an office tenant, resulting in a severe negative financial consequence for this non-profit group. 5. This proposed text amendment addresses/fixes the current negative impact on the value of the non profit office space and the ability of non profit organizations to buy/sell/lease property that falls into this "unintended consequences" category. If a property loses its status to be able to lease to an office user on its ground floor because it is sold/ bought/ leased by a non profit or to a nonprofit that only uses it for office use as well, this text amendment reestablishing the property to prior use and removes any discrimination/unintended consequences to the non profit. 6. This amendment supports the status quo and helps non profit organizations without impacting any other users, residents, or companies in Santa Monica,