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City of City Council Report
Santa Monica
City Council Meeting: December 6, 2011
Agenda Item: G -AP°A
To: Mayor and City Council
From: David Martin, Director of Planning and Community Development
Subject: Appeal 11 -009 of a Planning Commission Technical Denial and
Introduction and First Reading of an Ordinance to Authorize Electric
Vehicle Sales on the Third Street Promenade, Subject to a Performance
Standards Permit
Recommended Action
Staff recommends that the Council uphold the appeal of a Planning Commission
technical denial and introduce for first reading an ordinance which will allow the sale of
electric vehicles on the Third Street Promenade, subject to a Performance Standards
Permit.
Executive Summary
On August 9, 2011, the City Council directed staff to prepare an ordinance to permit
alternative fuel vehicle showrooms in the BSC -1 district (Third Street Promenade). The
Council also directed that the ordinance establish limitations on the showroom size, and
prohibit potentially disruptive activities such as service or inventory storage. On October
19, 2011 the Planning Commission considered a text amendment to the Zoning
Ordinance which proposed that all- electric vehicle showrooms be permitted on the
Promenade, subject to approval of a Performance Standards Permit. The Commission
voted 3 -3 on the recommendation to Council, resulting in a technical denial.
Councilmember Holbrook filed a timely appeal of the technical denial on October 25,
2011.
Background
On July 28, 2011, the Downtown Santa Monica, Inc. Board of Directors received a
proposal to expand the permitted uses in the Downtown to include "unique auto
showrooms." In a letter dated August 5, 2011 (Attachment A), the Downtown Santa
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Monica, Inc. Board made a recommendation to the City to allow such vehicle sales with
the following limitations:
• Allow only environmentally friendly vehicles
• Limit showrooms to 25 feet of linear Promenade frontage
• Limit showrooms to 3,500 square feet in size
• Limit the number of on -site display vehicles
• Prohibit on -site vehicle service
As noted above, on August 9, 2011, the Council discussed the proposal and directed
staff to prepare an ordinance to permit alternative fuel vehicle showrooms within the
BSC -1 district.
The Planning Commission adopted a Resolution of Intention to initiate this Zoning
Ordinance amendment on September 21, 2011, but did not forward a recommendation
to the Council to amend the Code since the Planning Commission technically denied
the proposed amendment on October 19, 2011.
Discussion
Proposed Ordinance
SMMC Section 9.04.08.15.030 would be amended to add all- electric vehicle dealership
showrooms as a use in the BSC -1 district along the Third Street Promenade, subject to
a Performance Standards Permit. A Performance Standards Permit (PSP) is
recommended as the permitting mechanism so that specific standards and
requirements may be imposed on the dealership showrooms in order to mitigate any
negative impacts on adjacent businesses. The following standards and requirements
are proposed:
• Vehicle Type: Vehicles shall be exclusively electrically - powered vehicles.
• Maximum Street Frontage: 25 feet.
• Maximum Dealership Showroom Square Footage: 3,750 square feet.
• Maximum Number of Dealership Showrooms: Four (4).
• Maximum Number of Vehicles On -site: Five (5.) Additional vehicles may be
provided on or off -site for test driving purposes.
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• Loading and Unloading of Vehicles: Loading and unloading of vehicles is
limited to the hours of eight a.m. to eleven a.m. Monday through Saturday,
excluding legal holidays and subject to the approval of the City Parking and
Traffic Engineer.(Note: the City Parking and Traffic Engineer can ensure that
there is no conflict with the Wednesday and Saturday Farmers Markets)
• Vehicle Service and Repair: No vehicles shall be serviced or repaired on the
premises.
• Test Driving: Employees of the dealership shall deliver the vehicles for test
driving to a designated nearby location on a permitted test driving route. All
test driving routes and their operation shall be reviewed and approved by the
City Parking and Traffic Engineer.
The recommended maximum showroom size is slightly larger than the 3,500 square
foot maximum recommended by Downtown Santa Monica, Inc. The standard depth of
the parcels along the Promenade is 150 feet and, with a maximum 25 -foot frontage.
Therefore, the showroom could be 3,750 square feet if the building occupies the entire
parcel.
The proposed ordinance recommends that the alternative fuel vehicle showrooms on
the Promenade be limited to all- electric vehicle sales. Electric vehicle showrooms have
recently been locating in unconventional locations, including high pedestrian traffic
areas, such as shopping centers. Tesla Motors, for example, has opened stores in the
Park Meadows shopping center in Lone Tree, Colorado and at Santana Row in San
Jose. CODA Automotive has located its first store within a shopping center at Westfield
Century City Mall.
Alternative fuel vehicles, including hybrid, hydrogen and compressed natural gas (CNG)
vehicles, are typically offered by automobile companies that have large, traditional
dealership operations and showrooms that offer a variety of vehicle types mostly fueled
by gasoline, as well as diesel or flex fuel (with ethanol). Hydrogen and CNG vehicles
are not heavily marketed or sold by the automobile companies, who primarily target
large vehicle fleets.
Electric vehicle showrooms have a different retail model that is both smaller in size and
designed to highlight the unique qualities of electric transportation. Consequently,
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electric vehicle showrooms have gravitated toward high pedestrian activity shopping
districts where store sizes better fit their needs and where a greater number of people
are likely to stop by to learn about the technology than at a typical large scale auto
showroom. This type of operation is more analogous to computer or electronic
equipment sales typically found in shopping districts like the Third Street Promenade as
opposed to hybrid, hydrogen or CNG vehicle sales, which are typically offered by a
more traditional dealership operation. If the marketing of hybrid, hydrogen and CNG
vehicles changes in the future to emulate the current strategy for electric vehicles, the
Code may be modified to allow such sales on the Promenade if warranted.
The proposed ordinance implementing these recommendations is included as
Attachment B.
Commission Action
As noted above, the Planning Commission considered the proposed amendment at its
meeting on October 19, 2011. The Commission was divided on the issue. While three
Commissioners voted to support the amendment with a provision to also include non -
petroleum fueled vehicles, the remaining three Commissioners opposed the proposal
because they believed it was not an appropriate use within the mix of existing retail and
restaurant uses, would attract people primarily from outside the City, and would not
serve the needs of City residents. Since the Commission split 3 -3 in its voting, the
amendment was technically denied.
Appeal Analysis
Staff concurs with the appellant that showrooms for alternative fuel vehicles are
appropriate on the Promenade. Due to the innovative aspects of electric vehicles as
well as the educational component of the showrooms, the appellant and staff believe
that the sale of all- electric vehicles can be appropriate in a pedestrian intensive
environment. These showrooms are anticipated to draw greater pedestrian activity from
a broader base - not only potential customers, but also from people interested in
learning about the technology. For example, the Tesla showrooms demonstrate vehicle
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technology and provide a design studio for customers to configure their vehicle (color,
accents, interior, top, wheels, electronics, options, etc.). Customers can also hear
stories from Tesla owners through an interactive touchscreen. Only a few vehicles are
located within the showrooms. Most of the stores also feature retail items such as
vehicle accessories, hats, t- shirts, and items for children.
The CODA store features an EV Bar, an interactive learning area highlighting the
benefits of electric cars where customers can speak to CODA employees, each other
and guest speakers in person and over the Web. The store has a Technology Display
with a full -scale replica of the CODA's battery system and electric propulsion system
and demonstrates the technical components and features of the car. Both Testa and
CODA require an appointment to test drive vehicles.
These electric vehicle showrooms are, therefore, quite different from typical auto
showrooms and provide an opportunity to diversify the Promenade's retail mix and
further enhance the pedestrian environment.
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 be seen with certainty
that the proposed ordinance does not have the potential to significantly impact the
environment, since the proposed ordinance amendment merely allows the sales of
electric vehicles in the Downtown area of the City with approval of a Performance
Standards Permit. 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. In addition, the text amendment is exempt under CEQA Section
15303, Class 3 which exempts the new construction or conversion of small structures.
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Public Outreach
As noted above, the amendment was initially proposed and recommended by
Downtown Santa Monica, Inc. in response to a communication from an alternative fuel
vehicle dealer.
Public Hearing
Notices of the Planning Commission and City Council public hearings were published in
the Santa Monica Daily Press a minimum of 10 days prior to the hearing in accordance
with City requirements.
Financial Impacts & Budget Actions
There is no immediate Budget /Financial impact to the policy decision. In the future,
depending on the volume of sales generated at these unconventional locations, the City
will experience an increase in revenue related to the sales of the electric vehicles.
Prepared by: Paul Foley, Principal Planner
Approved: Forwarded to Council:
-b,�' _
David Martin, Director Rod Gould
Planning and Community Development City Manager
Attachments: A — Letter from Downtown Santa Monica, Inc.
B — Proposed Ordinance
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ATTACHMENT A
LETTER FROM DOWNTOWN SANTA MONICA, INC.
Electronic version of attachment is not available for review. Document is available for
review at the City Clerk's office and the Libraries.
VA
August 5, 2011
David Martin
Acting Director of Planning and Community Development
City of Santa Monica
1685 Main Street
Santa Monica, CA 90401
Re: Modification of Zoning Code to Consider Alternative Fuel Auto Showroom as an allowable
use in the Downtown
Dear David:
On July 28, 2011 the Downtown Santa Monica, Inc. Board of Directors reviewed a proposal to
expand allowable uses in Downtown to include unique auto showrooms.
The Board spent a great deal of time on the issue, weighing many variables and consequences of
expanding the zoning code. In the end, the Board makes this recommendation to.the City for
consideration:
To allow a modification to the zoning code to allow a car showroom /gallery in the downtown if the
following criteria are met: vehicles must be environmentally friendly, be limited to 25' of linear
frontage, be limited to no more than 3,500 square feet of showroom, limit the number of vehicles
displayed (to be determined by the city) and to provide no vehicle service on site.
With these safeguards, DTSM supports moving forward on the zoning modification to allow a
unique and positive addition to the downtown mix.
Kath even Rawson
CEO
cc: DTSM, Inc. Board of Directors
1351 Third Street Promenade, Suite 201 Santa Monica, California 90401-1321
Phone (310) 393 -8355 Fax (310) 458 -3921 www.downtownsm.com
ATTACHMENT B
PROPOSED ORDINANCE
f:\atty\muni\share\laws\barry\ElectricVehicleOrd 120611
City Council Meeting 12 -6 -11 Santa Monica, California
ORDINANCE NUMBER (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING THE ZONING ORDINANCE TO ALLOW ALL - ELECTRIC
VEHICLE SHOWROOMS IN THE BSC1 DISTRICT ON THE THIRD STREET
PROMENADE SUBJECT TO APPROVAL OF A PERFORMANCE STADARDS
PERMIT
WHEREAS, the Land Use and Circulation Element of the General Plan (LUCE)
identifies the commercial area along the Third Street Promenade as the Downtown
Core district; and
WHEREAS, the LUCE vision for the Downtown Core district is a thriving, mixed-
use urban environment for people to live, work, be entertained and be culturally
enriched and where the greatest concentration of activity in the City is located; and
WHEREAS, the Downtown Core district is heavily used by local and regional
residents and visitors and is where the variety of uses contributes to the high activity
level throughout the days and evenings; and
WHEREAS, the Third Street Promenade requires and provides pedestrian-
oriented uses at the ground; and
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WHEREAS, Policy D1.1 of the LUCE calls for a diversity of retail opportunities
including local and regional serving retail in the downtown; and
WHEREAS, Policy D1.3 of the LUCE identifies the Third Street Promenade as an
important asset that should be maintained and supported as it serves the needs of the
community, is a regional destination and is an important local and southern California
center of activity; and
WHEREAS, Goal S1 of the LUCE directs the City to reduce greenhouse gas
emissions and supporting Policy S1.1 states that the City shall cooperate with the State
of California in implementing the provisions of AB 32 to reduce greenhouse gas
emissions; and
WHEREAS, Goal S2 of the LUCE establishes that the City shall reduce
greenhouse gas emissions through land use decisions; and
WHEREAS, Goal S10 of the LUCE supports creation of a sustainable local
economy that focuses on green jobs, while Policy S10.3 envisions Santa Monica as a
green tourist destination by encouraging green retail uses, and Policy S10.4
encourages the City to form partnerships with businesses, nonprofits and stakeholders
to address the needs for emerging green businesses with the community; and
WHEREAS, electric vehicle automobile dealership showrooms are increasingly
being located in non - traditional automobile dealership locations, including the retail
shopping centers of San Jose, Los Angeles and Lone Tree, CO; and
WHEREAS, in order to encourage environmentally - friendly vehicles and support
the City's goals for reducing greenhouse gas emissions and green businesses and jobs,
it is desirous that the electric vehicle automobile dealership showrooms be allowed in
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commercially prominent locations, including the Third Street Promenade, to support
sales of the vehicles; and
WHEREAS, the proposed ordinance recommends that the alternative fuel vehicle
showrooms on the Promenade be limited to all- electric vehicle showrooms which have
recently been locating in unconventional locations, including high pedestrian traffic
areas such as shopping centers, with a different retail model that is both smaller in size
and designed to highlight the unique qualities of electric transportation and is more
analogous to computer or electronic equipment sales typically found in shopping
districts like the Promenade as opposed to other alternative fuel vehicles, including
hybrid, hydrogen and compressed natural gas (CNG) vehicles, which are typically
offered by automobile companies that have large, traditional dealership operations and
showrooms that offer a variety of vehicle types fueled by gasoline, as well as diesel or
flex fuel (with ethanol); and
WHEREAS, a Performance Standards permit is the appropriate permit to allow
all- electric vehicle showrooms on the Third Street Promenade, a primarily retail and
restaurant activity area, since standards and conditions can be placed on the dealership
operations to ensure that adjacent and nearby businesses and residents will not be
adversely impacted; and
WHEREAS, on September 1, 2011 the Planning Commission adopted a
Resolution of Intention to initiate the Zoning Ordinance amendment; and
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WHEREAS, on October 19, 2011 the Planning Commission voted 3 -3 to forward
a recommendation on the proposed Zoning Ordinance amendment to the Council,
resulting in a technical denial; and
WHEREAS, on October 25, 2011, Councilmember Holbrook appealed the
technical denial of the proposed Zoning Ordinance; and
WHEREAS, on December 6, 2011, the City Council considered the proposed
Zoning Ordinance amendment; and
WHEREAS, for the reasons stated above and as further detailed in the
December 6, 2011 staff report, the proposed amendment is consistent in principle with
the goals, objectives, policies, land uses and programs specified in the adopted General
Plan; and
WHEREAS, for the reasons stated above and as further detailed in the
December 6, 2011 staff report, the public health, safety and general welfare also require
the adoption of the proposed amendment.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Santa Monica Municipal Code Section 9.04.08.15.030 is hereby
amended to read as follows:
9.04.08.15.030 Uses subject to performance standards permit.
(1) The following uses may be permitted in the BSC -1 portion of
the BSC District subject to the approval of a performance standards
permit:
(a) Wene All- electric vehicle automobile dealership showrooms.
(2) The following uses may be permitted in the BSC -2, BSC -3
and BSC -4 portions of the BSC District subject to the approval of a
performance standards permit:
(a) Sidewalk cafes that exceed two hundred square feet in area,
subject to the limitations contained in Section 9.04.08.15.080.
SECTION 2. Santa Monica Municipal Code Section 9.04.12.180 is hereby added
to read as follows:
9.04.12.180 AII - Electric Vehicle Automobile dealership showrooms.
showrooms for electric vehicles are compatible with uses within the BSC1
Bayside Commercial District and do not create an adverse impact on ad'lacent
Properties by reason of traffic generation including road testinq of vehicles. The
following special conditions shall apply to electric vehicle automobile dealership
showrooms:
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(a) Applicability. All new electric vehicle automobile dealership
showrooms shall comply with the development standards for the BSC1 district
and with this Section.
(b) Maximum Street Frontage. The showrooms of the electric vehicle
automobile dealerships shall be limited to a maximum linear street frontage of
25 -feet.
(c) Maximum Dealership Showroom Square Footage. The
showrooms of the electric vehicle automobile dealerships shall be limited to a
maximum of 3,750 square feet.
(d) Maximum Number of Dealership Showrooms. The maximum
number of electric vehicle dealership showrooms permitted in the BSC1 district
shall be limited to four (4).
(e) Maximum Number of Vehicles On -site. The showroom of
the electric vehicle automobile dealerships shall be limited to a maximum of 5
vehicles Additional vehicles may be provided on or off -site for test driving
purposes.
(f) Loading and Unloading of Vehicles. Loading and unloading of
vehicles shall be permitted only in accordance with this subsection. The
dealership operator shall be responsible and liable for any activities of a common
carrier, operator, or other person controlling such loading or unloading activities
to the extent any such activities violate the provisions of this subsection.
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(1) Loading and unloading of vehicles shall be limited to the hours of
eight a.m. to eleven a.m. Monday through Saturday, excluding legal holiday
(2) Loading and Off - loading shall be subject to the approval of the City
Parking and Traffic Engineer. Loading and unloading shall not block the ingress
or egress of any property.
(Q) Vehicle Service and Repair. No vehicles shall be serviced or
repaired on the premises.
(h) Test Driving. Test driving shall be permitted by appointment only.
Test driving shall not be done on residential streets or alleys. For the purposes of
this subsection, streets which are designated by the City as major collector
streets shall be permissible areas for test drivina. Each dealership operator shall
have an affirmative obligation to inform all its personnel of this requirement and
to ensure compliance with it. Employees of the dealership shall deliver the
vehicles for test driving to a designated nearby location on a permitted test
driving route. All test driving routes and their operation shall be reviewed and
approved by the City Parking and Traffic Engineer.
SECTION 3. 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.
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SECTION 4. 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 5. 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:
MA SHA J VS ES MODURIE
Cit Attorn y
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