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sr-012511-7b~® ~;~Yo, City Council Report Santa Montca~ City Council Meeting: January 25, 2011 Agenda Item: ~ To: Mayor and City Council From: Eileen Fogarty, Director of Planning and Community Development Subject: Introduction for First Reading of an Interim Ordinance Establishing Development Procedures Pending Adoption of the City's Permanent Zoning Ordinance Implementing the LUCE. Recommended Action Staff recommends that the City Council introduce for first reading the attached initial interim ordinance, effective for 60 days, that: 1. Requires a development agreement for LUCE Tier 2 and Tier 3 development projects as well as projects that exceed 32 feet in height in the Downtown Core; 2. Allows Administrative Approval applications to be approved if a proposed project does not otherwise require a discretionary permit pursuant to the LUCE or Zoning Ordinance; 3. Establishes, consistent with the LUCE, 100% affordable housing projects of up to 50 units that are deed restricted for households with incomes of 80% or less of Area Median Income will be processed ministerially; and 4. Applies the initial interim ordinance to new development projects and pending projects which have not received all of their discretionary planning entitlements and to any requested extension to these planning entitlements on or after March 11, 2011 (anticipated effective date of interim ordinance) unless the development project has otherwise obtained a vested right to proceed. Executive Summary The Land Use and Circulation Element was adopted on July 7, 2010. In the intervening period, staff has been working on a number of implementation actions that will realize the LUCE vision and goals. A primary implementation action of the LUCE is the comprehensive Zoning Ordinance update, which establishes specific zoning districts, detailed uses, transportation and parking standards, and development standards consistent with the LUCE goals and policies. While the comprehensive zoning ordinance update is underway and as discussed during the LUCE hearings, interim standards are necessary for projects to meet community expectations as expressed in the LUCE including the following framework elements: • Protect and enhance neighborhood character and quality of life • Proactively manage congestion to achieve greenhouse gas reduction and No Net New PM Peak Period Trips 1 • Create complete neighborhoods with daily needs and open spaces in close proximity • Require community benefits so new projects contribute to the community's social, environmental, physical, and circulation goals • Promote historic preservation through a variety of financial incentives and programs • Achieve quality urban design that is people-friendly and sensitive to context. The LUCE established a Community Benefits Tier Structure that requires discretionary review for all projects requesting building height above the base (generally established at 32 feet with some variation) that allows for full consideration of the LUCE goals and policies and more importantly is the basis by which new development will contribute to ensuring that the framework elements will come to fruition. The LUCE anticipates a discretionary permit will be available to authorize Tier 2 projects, subject to the requirements of applicable zoning districts, identified permitted uses, and objective development standards provided for in the implementing Zoning Ordinance update. Where the LUCE employs a coordinated community-building approach to guide new development, the existing development standards and procedures codified in the Zoning Ordinance and currently in use generally limits the focus to details of single building design on an isolated site. Currently, administrative and development review applications for 750,000 square feet of development have been submitted that could restrict the community's ability to achieve the LUCE vision if the projects proceed in nonconformance with LUCE principles. It was made clear at LUCE community meetings and during the LUCE hearings that until such time that objective standards are in place to evaluate Tier 2 projects, in the interim, a Development Agreement process is essential to achieving LUCE goals and policies, particularly the requirement for community benefits. Therefore an initial interim ordinance is proposed, for 60 days, that includes the following provisions that will facilitate the incorporation of LUCE goals including urban design, community benefits and trip reduction: • Require a development agreement for projects over the LUCE Tier 1 base height (varies by land use designation) as well as projects that exceed 32 feet in height in the Downtown Core with the exception of development projects located entirely within the BSC1 Zoning District (Third Street Promenade) that are less than the height and floor area of the existing building; • Except where discretionary review is required by the LUCE or Zoning Ordinance, allow administrative approvals where the use is authorized by the LUCE, and the project conforms with the more restrictive of applicable Zoning or LUCE standards; and • Allows ministerial approval of 100% affordable housing projects of up to 50 units that are deed restricted for households with incomes of 80% or less of Area Median Income. The proposed Development Agreement process provides the greatest amount of control to achieve LUCE goals. In addition, the interim ordinance continues the practice that 2 Administrative Approvals may be granted for projects below a threshold as long as conformance is achieved with explicit zoning and LUCE standards, whichever is more restrictive. This process ensures that routine minor actions such as business licenses, tenant improvements, and minor additions to existing buildings can proceed while LUCE implementation actions are underway. The initial interim ordinance is most critical in the Downtown, where approximately 250,000 square feet of pending projects (of the total 750,000 square feet citywide) could proceed through an Administrative Approval process that does not ensure consistency with the LUCE vision. Under current regulations, projects up to 60,000 square feet in the Downtown could be approved without public review and without incorporation of core LUCE policies related to providing open spaces, trip reduction, coordinating with adjacent sites, congestion management, and achieving community goals through community benefits and quality urban design. Further, the LUCE applies the height and FAR standards of the 1984 LUCE in the Downtown Core, pending the completion of a new Downtown Specific Plan which is underway. The Downtown Specific Plan will include acirculation framework that will address the integration of Expo light rail into the Downtown system, freeway. access, direct parking structure access, and congestion; establishing the foundation for future land use and transportation decisions. If applications proceed in a piecemeal fashion without these components, it undermines the community vision set forth in the Downtown District goals and policies, as well as the Downtown Specific Plan process underway. The initial interim ordinance would apply to new development projects, pending projects, and extension requests which have not received all of their discretionary planning entitlements on or after March 11, 2011 unless the development project has otherwise obtained a vested right to proceed. This initial interim ordinance may be extended and modified as the implementation process for the LUCE continues.. In order to ensure that the implementation of the LUCE is not impeded while the comprehensive Zoning Ordinance update is underway, the interim ordinance would establish development procedures that will prevent development incompatible with LUCE goals and policies so as not to preclude: Desired Uses: The ability to direct desired uses, such as affordable housing and neighborhood services, to appropriate locations • Community Benefits: Achieving community priorities such as pathways and connections, open space and plazas, support for the arts, social services, cultural facilities, and congestion management • Coordinated Connections: Linking adjacent sites so that new development looks beyond the project site • Complete Streets: Balancing modes to encourage bicycle and pedestrian use; • Reduced Trips: Achieved through Transportation Demand Management (TDM) requirements and circulation standards • Shared Parking Opportunities: Efficiently use limited land resources and potentially reduce barriers to entry for small business; and • Public Engagement: Early and effective public engagement that begins at inception of a project concept and accomplishes atwo-fold objective: increasing 3 understanding of the development review process and providing multiple opportunities for community dialogue between application submittal and formal hearings. Background Since the adoption of the LUCE, numerous implementation efforts have been initiated including the Zoning Ordinance Update, Bergamot Transit Village and Mixed Use Creative Area Plan, Downtown Specific Plan, activities to integrate the Expo Light Rail, a transportation facilities contribution program, and an update to the transportation management ordinance. These implementation actions, particularly the preparation of area and specific plans, are needed to ensure a coordinated approach to addressing the inter-connected social, physical, and economic systems that are the underpinnings of local quality of life, values and aspirations. Development applications have been filed for projects that would be considered Tier 2 projects pursuant to LUCE Chapter 2.1. It is anticipated that a discretionary permit will be available to authorize Tier 2 projects, subject to the requirements of applicable zoning districts, identified permitted uses, and objective development standards provided for in the implementing Zoning Ordinance update. However, development review procedures and standards, particularly for Tier 2 projects, have not yet been adopted as part of a comprehensive Zoning Ordinance update to ensure that these projects fulfill the LUCE vision through conformance with LUCE principles. In light of the fact that these "pipeline projects" typically have entitlement terms of one year, with the potential for extensions to two years, there could be projects constructed in three to four years from today that will not reflect the principles of the LUCE in terms of public engagement, quality urban form, community benefits, and congestion management. The six-year community effort that culminated in the LUCE could be undermined if these "pipeline projects" proceed without the appropriate incorporation of LUCE framework elements. It is in this context that this initial interim ordinance is being proposed to establish development procedures that will ensure that the LUCE is applied in the development review process while the final implementing Zoning Ordinance is being prepared. 4 Discussion LUCE Community Benefits Tier structure The basis by which the framework elements of the LUCE are implemented is through an incentivized tier structure that establishes athree-tiered approach, based on increments of height and floor area ratio (FAR) as defined in LUCE Chapter 2.1. The Tier 1 base height is generally established at 32 feet with some variation for projects that provide on-site affordable housing. At each tier, additional requirements will be applied consistent with the community's broader social and environmental goals. Projects that seek additional height and FAR above an established base (i.e. Tier 2 and Tier 3 projects) require discretionary review or a development agreement, are required to provide community benefits, and achieve increased trip reduction goals. Discretionary review allows for greater control over a project's mix of uses, form and scale, density, height, and TDM measures. Participation in LUCE community benefits tier structure is critical to creating long-termcommunityvalue Chfldc?re ~ _ ~ ~ •Internshipsj I •EmplapmetitTraining I 1 `kffordableHousing_ ~ • Vanstimprovemenis~ • Bicycleand'i>eilestrian.' 1 connectons ~Supportforthearts. `.l (contributions{spate,), ~I • Eventsand I. programming 1 Historicpresewation I %6reen open space _ ~i €ommunirygardens 1 •~InfrasYructure (voider I sidevoall<s, connections, I patlievays,.uulifiesf Community benefits identified in the above diagram are anon-exhaustive list and are examples only. Actual community benefits will be determined on a case-by-case basis. 5 Desired outcomes of the coordinated .LUCE framework include increased quality of life for all who live and work in Santa Monica through enhanced community resources and reduced dependence on vehicles, with associated reduction in vehicle miles travelled and GHG emissions. These outcomes are tied to performance measures that will be periodically reviewed to assess trends and progress. These performance measures may include the ability for residents to access daily needs, diversity of housing types, compatibility of new development with residential neighborhoods, the percentage shift from vehicle trips to other modes of travel such as bicycles and transit, completeness of the desired bicycle and pedestrian network, diversity of revenue generating uses, and opportunities for public engagement. The tier structure is essential to fully achieve these outcomes and meet specified targets. Existing Development Procedures Development Review Procedures Citywide 1Nhile the LUCE employs a coordinated approach to guide new development, much of the existing development procedures and zoning standards were created in reaction to specific issues that have been identified by the community over the years. The result is a prescriptive patchwork of regulations that ensure new development does not overwhelm the community through a wide range of development standards including stepbacks, pedestrian orientation, and building mass. However, the focus is often shifted internally towards addressing the details of building design within a single site instead of a broader view of how development responds to existing and future surroundings and experiences and coordinated guidance on how development can best contribute to the community. Further, there is no coordinated framework or mechanism within the Zoning Ordinance to apply the Tier structure to achieve the desired LUCE outcomes, including community benefits, for Tier 2 projects. Therefore, in order to preserve the opportuhity for the LUCE to be implemented through an appropriate legal mechanism to assess Tier 2 project compliance with the community benefit requirement of the LUCE; in the interim, requiring development agreements for Tier 2 and 3 projects is essential to ensuring that new development 6 unfolds in a manner that is consistent with concurrent implementation actions of the LUCE. Administrative Approval Procedures in Downtown Historically, the vast majority of Administrative Approval projects have occurred in the Downtown area. Existing development procedures for Administrative Approval permits require that projects meet technical development standards. As described in SMMC 9.04.20.28.010 the purpose of the Administrative Approval is for, "...an administrative review and assessment of the proposed development project in light of explicit standards contained in the Chapter [Zoning Ordinance]." Projects that currently qualify for processing as Administrative Approval permits can be up to 60,000 square feet in the Downtown due to the requirement to discount residential floor area by 50%. In addition, a higher Development Review threshold of 30,000 square feet applies if projects construct the minimum number of required affordable housing units on-site or off-site rather than paying the affordable housing fee. Therefore, coupling Downtown's higher Development Review threshold with the requirement to discount residential floor area by 50% for the purposes of determining whether a Development Review permit is required has resulted in large, mixed-use projects that are processed with no public engagement process, no ability to require community benefits, and as ministerial permits, do not require any environmental review. This results in an inability for the City to analyze and mitigate the traffic impacts associated with new development. Since the requirement fora 50% residential floor area discount for the purposes of applying the Development Review threshold was introduced in November 1998, approximately 1.4 million square feet of new mixed-use development has been constructed in the Downtown. While this approach has created a tremendous amount of mixed use development in Downtown, it has also severely limited the. ability for the City to: Require additional affordable housing; Implement a public engagement process for large projects; • Require projects to coordinate with adjacent sites; 7 • Require development to provide support for connections to the Civic Center and beach areas; • Coordinate shared parking locations in order to more efficiently manage parking resources; Allow opportunities for new buildings to provide or shape public places; • Require appropriate trip reduction measures; and • Incorporate community benefits identified in the LUCE. Pending Development Applications At present, there are approximately 750,000 square feet of administrative and development review projects pending review, not including development agreements which are already required to comply with the LUCE. Of the 750,000 square feet, approximately 500,000 square feet is located within the Downtown Core. Approximately half of the projects in the Downtown Core are Administrative Approvals that do not require public review and need only comply with objective standards in the existing Zoning Ordinance. In some instances, the development and land use parameters in the LUCE differ quite significantly from the existing Zoning Ordinance. This disconnect is problematic because the expectations of the community have evolved such that the premise upon which the Administrative Approval process is based is no longer consistent with the goals and policies of the LUCE, particularly with respect to: congestion management, achieving the community's goals by requiring relevant community benefits, and enhancing the public realm through quality urban form. Further, the LUCE applies the height and FAR standards from the 1984 LUCE in the Downtown Core, pending the completion of a new Downtown Specific Plan. Bringing forward approximately 250,000 square feet of new development before the completion of the Downtown Specific Plan means that nearly a quarter of the growth anticipated in the Downtown could be constructed inconsistent with the yet to be adopted Specific Plan. It is anticipated that just under half of the 250,000 sf of Administrative Approval projects will have all necessary approvals before the effective date of the interim ordinance, and 8 therefore not subject the proposed interim standards, because these projects are in the late stages of the entitlement process. The information on pending development applications provided in the table below is intended to give the City Council a sense of the types of projects that are currently in the pipeline and also what can be expected to occur while LUCE implementation actions are underway. Development Applications Pending Review (excluding Development Agreements) Administrative Projects* Discretionary Projects Total Citywide (excluding Downtown) 7,000 sf 200,000 sf 207,000 sf Downtown only 250,000 sf 300,000 sf 550,000 sf Total 257,000 sf 500,000 sf 757,000 sf 'Of this total, just under half of the square footage will proceed before the effective date of the ordinance because the projects are in the final stages of the entitlement process. Of the projects pending review, four discretionary projects totaling 183,000 square feet and one Administrative Approval project submitted on January 6, 2011 would be subject to the provisions of this interim ordinance. Proposed Ordinance Tier 2 and Tier 3 Development Projects The interim ordinance proposes that Tier 2 and Tier 3 development projects, as defined pursuant to LUCE Chapter 2.1 shall not be approved unless a development agreement is processed. The purpose of these interim procedures is to provide for standards and procedures to review development projects in a manner that will enable the fulfillment of LUCE goals and policies prior to the preparation and implementation of actions such as the preparation of Area and Specific Plans and the Zoning Ordinance update. While the LUCE provides that Tier 3 projects will be processed by development agreements, it is anticipated that a discretionary permit will be available to authorize Tier 2 projects, subject to the requirements of applicable zoning districts, identified permitted uses, and objective development standards provided for in the implementing Zoning Ordinance update. Until the Zoning Ordinance, and the mechanism to review 9 Tier 2 projects, is adopted and effective, this interim ordinance provides for Tier 2 projects to be approved by development agreement subject to LUCE consistency requirements. The LUCE established the outside parameters for height and floor area ratio (FAR) for each land use designation, even at the Tier 1 ministerial level. As implementation actions are underway, the City has not yet had the opportunity to convert these outside development parameters and LUCE goals and policies into objective zoning standards (e.g. building height and FAR) that, in some cases, could be more restrictive than the LUCE. This is especially applicable to the Downtown Core discussed in the next section. There are also areas of the City, such as Colorado Avenue, where the entire character that includes how buildings address the street and mix of land uses is anticipated to change from a primarily light industrial district to a mixed-use area with direct access to the Expo Light Rail. Until zoning districts can be established with associated development standards and land uses, reliance on a development agreement process will allow the City to require critical improvements and also make certain that resulting projects do not hinder the community's social, cultural, physical, circulation, and environmental expectations articulated in the LUCE. Applicability oflnitial InterimOrdinance LUCE Tier 2 and Tier 3 projects Qawntovvn projects over 32fieet hig Projects lessthan the DR threshold established by Zoning (typically `75D0 sf} 100% affordable housing projects of ®y ~ ~ ~ #' upto 50 unitsand for incomes ofup to 80% of AM I 10 Downtown Projects over 32 feet The interim ordinance requires a development agreement for development projects in the Downtown higher than 32 feet. As described above in the section on Pending Development Projects, almost all of the pending Administrative Approvals are in the Downtown. The Downtown Specific Plan is currently underway and will include a circulation framework that will address the integration of Expo light rail into the Downtown system, freeway access, direct parking structure access, and congestion; establishing the foundation for future land .use and transportation decisions. The Specific Plan will also address potential expansion of the shared parking district and urban form standards to address transitions from the expanded Downtown boundaries to adjacent residential neighborhoods. If multiple major projects of up to 60,000 square feet are allowed to proceed piecemeal with no public or environmental review, the opportunity to ensure that these projects are consistent with the LUCE will.. be lost. These projects would be approved before the completion of the Downtown Specific Plan and LUCE policies cannot be applied as objective development standards by which ministerial permits are evaluated. The 32 feet building height threshold is equivalent to the Tier 2 threshold for development agreements being proposed for the rest of the City. On an interim basis, the City must preserve the ability to ensure that future development does not undermine the implementation of the Downtown Specific Plan.. The change in development procedures still allows for mixed-use projects to be proposed and approved but would also preserve the City's ability to make certain. these implementation efforts are not rendered futile by the ministerial. approval of large development projects consistent only with a Zoning Ordinance that does noYyet reflect the goals, policies, and standards of the LUCE. Projects within the BSC1 Zoning District (Third Street Promenade) are proposed to be exempted from the provisions of this interim ordinance if new development projects: • Are of less height and floor area than the existing building; and • Are located entirely within the BSC1 Zoning District. 11 This limited exemption acknowledges that the active and vibrant character of the Third Street Promenade, including open space, walkability, and connections is well established and is unlikely to be altered with the Downtown Specific Plan update and that. any future development on the Promenade will likely be replacement infill development or remodels/tenant improvements of existing buildings. Administrative Approvals The interim ordinance continues the practice that Administrative Approval permits may be granted if the project square footage is less than the development review permit threshold, typically 7,500 square feet, established for each zoning district. The interim ordinance also proposes that Administrative Approvals may be granted if the project complies with objective zoning and LUCE standards and, to the extent these standards are inconsistent, the more restrictive of the Zoning Ordinance or LUCE standard will apply. This provision allows objective LUCE standards, such as building height and FAR, to apply in instances where the Zoning Ordinance may differ and no longer be the appropriate standard to which an Administrative Approval project must conform. The zoning standards are no different than what already exists and where LUCE standards are. more restrictive, it will ensure that routine minor actions such as business licenses, tenant improvements, and minor additions to existing buildings can proceed while implementation actions are underway. 100% Affordable Housing Consistent with provisions that were adopted with the LUCE, 100% affordable housing projects of up to 50 units that are deed restricted for. households with incomes of 80% of less of AMI will be processed ministerially. This ensures that the City's desire to reduce barriers for the creation of affordable housing remains intact. Applicability This ordinance would apply to all projects that, as of March 11, 2011, have not received all their discretionary planning entitlements including Planning Commission approval, Architectural Review Board approval,. and Planning permit extensions. Staff considered 12 setting the applicability threshold at projects that have not yet applied for plan check but a review of all projects that have been approved in the past five years, but are not yet in plan. check, revealed that only one project would fall into this category. Therefore, in order to ensure impartial and broad application of the ordinance, staff recommends an applicability threshold of projects that have not received all their discretionary planning entitlements. These are projects that are still pending review and therefore must comply with current development standards, including the LUCE. Of the 14 projects in the pipeline, four Development Review projects and one Administrative Approval project just submitted would be subject to the provisions of this interim ordinance. While the four Development Review projects will require a Development Agreement application under the provisions of this interim ordinance, staff anticipates. similar processing times. Alternatives Other alternatives the City Council may consider include: 1. Modify the threshold at which a development agreement is required. 2. Adjust the applicability of the interim ordinance. 3. Moratorium pending completion of the comprehensive Zoning Ordinance update Implementing any of the alternative actions has the potential to increase or decrease the number of projects that must be consistent with the LUCE Environmental Analysis An EIR for the LUCE was certified on July 6, 2010. Pursuant to Section 15162(a) of the Guidelines implementing the California Environmental Quality Act (CEQA), no additional environmental review is required if none of the conditions or circumstances described in subsections (1) - (3) have occurred. Because the. impacts of development that may occur under the proposed interim ordinance have been studied in the LUCE EIR, no additional environmental review is required. The proposed interim ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State 13 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 that Administrative Approvals permits comply with the more restrictive of objective zoning or LUCE standards and uses and to require a development agreement application for LUCE Tier 2 and 3 projects and for projects over 32 feet in the Downtown Core does not have this potential. Rather, 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. Public Outreach The proposed interim ordinance preserves the ability for the City to proceed with a community engagement process for the Zoning Ordinance update that will include consultation. with residents,. business owners, property owners, and other interested stakeholders. Financial Impacts & Budget Actions The recommendation in this report does not have any significant budget or fiscal impacts. Of the 14 administrative and development review projects pending review, not including existing development agreements, there are five that could potentially require development agreements under the provisions of this ordinance. As the ordinance would require the processing of more development agreements in -the future, the Planning and Community Development Department expects some minor revenue increases generated from fees, although these fees are deposits to compensate for staff time on DAs. The City would not receive increased property taxes generated by a property that might have been redeveloped under existing zoning. 14 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: Jing Yeo, Special Projects Manager Approved: Forwarded to Council: °'- ~~ Rod Gould City Manager Attachments: A. Interim Ordinance 15 Development f:\atty\muni\laws\barry\LUCE Interim Zoning Ordinance 1-25-11 City Council Meeting 1-25-11 Santa Monica, California ORDINANCE NUMBER (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING INTERIM DEVELOPMENT PROCEDURES PENDING IMPLEMENTATION OF THE LUCE THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Findings and Purpose. The Council finds and declares: (a) The City adopted a new Land Use and Circulation Element of the General Plan of the City of Santa Monica ("LUCE") on July 6, 2010 but has not yet adopted amendments to the City's Zoning Ordinance reflecting the LUCE's policies, goals and standards. (b) The adoption of the LUCE was the culmination of a multi-year planning process that commenced in 2004. (c) The LUCE encompasses the community's vision of the City's future and is designed to maintain the City's character, protect the City's neighborhoods, manage its transportation systems, and encourage additional housing in a sustainable manner that ensures a high quality of life for the City's residents. 1 (d) The LUCE implements the community's core values through its focus on community character and neighborhood conservation, future trip reduction, vibrant and walkable villages, integrated land use and transportation, local land uses and housing, jobs tied to housing and transit, promotion of social and fiscal health and diversity, sustainability, community benefits, open space, and implementation, phasing and monitoring. (e) The LUCE goals and policies are predicated on the integration of land use and transportation including a focus on the type of land uses, the location of land uses, the quality of projects, the amount of developmental change, and the pace of this change. (f) The LUCE was prepared with the general purpose of guiding and accomplishing coordinated and harmonious development of the City which, in accordance with existing and future needs, best promotes the public health, safety, and general welfare, as well as efficiency and economy in the process of development. (g) The LUCE substantially revises the City's land use policies, goals, and standards. (h) The City's planning and zoning regulations are presently under comprehensive review and revision in order to ensure that such regulations are consistent with the General Plan as amended and consistent with the public health, safety, and welfare. This comprehensive revision of the City's Zoning Ordinance is a substantial project which is crucial to the community's long-term welfare as reflected in the goals, policies, and standards of the LUCE. 2 (i) Certain critical areas of conflict between the LUCE and the existing Zoning Ordinance have been identified by the City's Planning and Community Development Department as it has reviewed pending applications subsequent to the adoption of the LUCE. Q) Zoning Ordinance Part 9.04.20.28 establishes the applicability and procedures. for issuance of administrative approvals which provide for the ministerial administrative review and assessment of proposed developments subject to explicit standards contained in the Zoning Ordinance. (k) The administrative approval process is premised on the assumption that the explicit standards in the Zoning Ordinance have been adopted to ensure that a completed project is in harmony with existing or potential development in the area and is consistent with the goals, objectives, and policies of the General Plan. (I) However, this premise underlying the administrative approval process is no longer applicable given the significant ways in which the LUCE differs from the prior Land Use and Circulation elements including, but not limited to, the direct linkage between land use and transportation policies and programs and the establishment of new development policies and standards which ensure that quality development contributes to the character of the City. (m) Additionally, the LUCE establishes a base height for each land use as a baseline. Proposed development which seeks additional height above the base is subject to discretionary review and must meet additional requirements consistent with the community's broader social, environmental, and circulaton goals. This approach is defined in three tiers. 3 (n) Under the LUCE, Tier 2 and Tier 3 projects must provide community benefits for the City and the neighborhood. More specifically, a developer seeking to develop a Tier 2 or Tier 3 project must include certain preferred uses, beneficial project design features, and provide critical amenities or meet other development standards that address the community's core needs-it's social, cultural, physical, transportation and environmental goals. (o) The LUCE identifies five priority categories of community benefits-new affordable and workforce housing, GHG emission and congestion reduction, physical improvements to create connections and open space, social and cultural facilities,. and historic preservation. (p) The existing Zoning Ordinance does not currently incorporate this tier structure or establish a mechanism to prioritize and necessitate that projects participate in the community benefit tier structure, which is the basis by which much of the LUCE vision, goals, and policies will be achieved. (q) Additionally, the LUCE establishes 17 distinct land use designations. One of these land use designations is the Downtown Core. The purpose of this designation is to maintain and enhance the downtown area as the heart of the City and as a thriving, mixed use urban environment. Unlike the other land use designations, the LUCE does not establish new height and FAR development parameters, but instead provides that the height and FAR along with other development standards shall be determined through a specific plan process. (r) At present, there are approximately 750,000 square feet of administrative and development review projects, not including development agreements, pending planning 4 review. Of the 750,000 square feet, approximately 500,000 square feet is located within the Downtown Core. Approximately half of the projects in the Downtown Core are Administrative Approvals that do not require public review and need only comply with objective standards in the existing Zoning Ordinance. Bringing forward approximately 250,000 square feet of new development before the completion of the Downtown Specific Plan means that nearly a quarter of the growth anticipated in the Downtown could be constructed inconsistent with the yet to be adopted Specific Plan. The Downtown Specific Plan will include a circulation framework that will address the integration of Expo light rail into the Downtown system, freeway access, direct parking structure access, and congestion; establishing the foundation for future land use and transportation decisions. If these Administrative Approvals proceed in a piecemeal fashion without these components, it undermines the community vision set forth in the Downtown District goals and policies, as well as the Downtown Specific Plan process underway and would detrimentally affect the City's ability to implement LUCE goals and policies, particularly with respect to: providing open spaces, trip reduction, coordinating with adjacent sites, congestion management, and achieving community goals through community benefits and quality urban design. (s) Additionally, transit-oriented districts in the City's transitioning industrial areas are not reflected in the current zoning ordinance, which allows uses that would now be considered undesirable and inconsistent with the LUCE. (t) Pending completion of the comprehensive update to the Zoning Ordinance, it is essential that development be consistent with the General Plan so that the goals and values of the community, as reflected in the LUCE, are not significantly undercut. 5 Adjusting the development standards as provided in this Ordinance will ensure that the quality of life, the environment, the ability to move around the City, and the efficacy of the ongoing planning process are preserved. (u) As detailed above and in the January 25, 2011 City Council staff report, there exists a current and immediate threat to the public health, safety, and welfare should this interim ordinance not be adopted and development of projects inconsistent with the LUCE be allowed to proceed through the issuance of Administrative Approvals or Development Review Permits which are not consistent with the explicit standards of the LUCE or with the tier structure and the provision of community benefits. (v) Adoption of this ordinance would not prohibit any development, but would instead provide an alternate process by which development is reviewed and approved so as to ensure consistency with and appropriate implementation of the LUCE. (w) Pending completion of the City's review of its planning and zoning regulations, it is necessary on an interim basis to modify .the Zoning Ordinance as set forth in Section 2 of this Ordinance. SECTION 2. Interim Zoning Regulations Notwithstanding any provision of the City's Zoning Ordinance to the contrary, the issuance or extension of permits for either a new development project or for the expansion of an existing development project that exceeds 7500 square feet ("development project") that does not comply with the interim zoning standards set forth in Section 3 of this Ordinance is hereby prohibited and no zoning permits or approvals, subdivision maps, building permits, or other land use permit shall be approved, issued, 6 or extended for a development project in contravention of Section 3 during the pendency of this Ordinance or any extension thereof. SECTION 3. Interim Zoning. (a) Administrative Approvals. No development project shall be approved pursuant to Santa Monica Municipal Code Section 9.04.20.28.020 [Administrative Approvals] unless all of the following findings are made: (1) The proposed development does not require discretionary review or approval as established in either the Zoning Ordinance, the LUCE, or this Interim Ordinance. (2) The proposed development conforms precisely to the development standards contained in both the Zoning Ordinance and in the LUCE for the zoning district and land use designation in which the development is located. (3) In the case of any inconsistency between the Zoning Ordinance and the LUCE pertaining to any objective development standard or permitted use, the proposed development conforms to the more restrictive development standard and is a permitted use authorized by the LUCE. (b) Tier 2 and Tier 3 Development Projects. Notwithstanding the development standards specified in the Zoning Ordinance, no development project which would constitute a Tier 2 or Tier 3 project as established pursuant to LUCE Chapter 2.1 shall be approved except for projects developed pursuant to a development agreement adopted pursuant to Santa Monica Municipal Code Chapter 9.48. (c) Downtown Core. Notwithstanding the development standards specified in the Zoning Ordinance, no development project in the Downtown Core as delineated in the 7 Land Use Designation Map approved by the City Council on July 6, 2010 shall exceed 32 feet in height except projects developed pursuant to a development agreement adopted pursuant to Santa Monica Municipal Code Chapter 9.48. However, development projects located entirely within the BSC1 Zoning. District shall not be subject to these interim standards provided that the development project is less than the height and floor area of the existing building. (d) 100% Affordable Housing Projects. Notwithstanding subsection (b) and (c) of this Section, affordable housing projects with 50 units or less in which one hundred percent (100%) of the housing units are deed-restricted or restricted by an agreement approved by the City for occupancy by households with incomes of eighty percent (80%) of median income or less will continue to be processed ministerially. Such affordable housing projects may also include non-residential uses, as long as such uses do not exceed a maximum percentage of 33% of the total floor area. SECTION 4. Applicability. This Ordinance shall apply to any development project which has not received its discretiohary planning entitlements (e.g., development review permit, variance, architectural review permit, conditional use permit) or received any requested extension to these planning entitlements as of March 11, 2011 unless the development project has otherwise obtained a vested right to proceed. SECTION 5. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of 8 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 7. This Ordinance shall be of no further force or effect sixty days after its effective date, unless prior to that date, after a public hearing, noticed pursuant to Santa Monica Municipal Code Section 9.04.20.22.050, the City Council, by majority vote, extends this interim ordinance. 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 30 days from its adoption. APPROVED AS TO FORM: ~; MAR HA wES MO RIE City torn y 9