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SR-02-12-2013-7BCity Council Meeting: February 12, 2013 Agenda Item: `- '- To: Mayor and City Council From: David Martin, Director of Planning and Community Development Subject: Amendment to Interim Zoning Ordinance Number 2407 (CCS) to Modify the Requirements for Ministerial Processing of 100% Affordable Housing Projects of 50 or Fewer Units Recommended Action Staff recommends that the City Council introduce for first reading the attached ordinance to modify Interim Zoning Ordinance Number 2407 (CCS), Section 3(d) entitled "100% Affordable Housing Projects" to provide that housing projects of 50 or fewer units are eligible to be processed with ministerial approval if a minimum of 25% of the units are restricted to households with low, very low or extremely low income, defined as 60% of Area Median Income (AMI) or less, and the remainder of the units are restricted to moderate income at 80 %, effective January 8, 2013. Executive Summary, The proposed modification is intended to provide a greater mix in housing affordability levels and addresses the City's need for low, very low and extremely low affordable housing units. Currently a development project is eligible for administrative approval if the proposed housing project of 50 units or less contains all moderate - income deed - restricted units. The amendment would require that at least 25% of the affordable units serve low income categories, defined as households at 60% of Area Median Income (AMI) or less. Units serving moderate income households would be limited to 75% of the total mix. Offering administrative approval is a valuable tool for the City to achieve desired housing goals. With the loss of Redevelopment funds previously used toward the creation of affordable housing, it is critical that the City find alternative ways to address the housing needs of low income individuals and families. This provision would be applicable to all projects that have not received an Administrative Approval before January 8, 2013. Background Council directed staff, at its January 22, 2013 meeting, to return with an ordinance to require a greater mix of affordable units, including a minimum percentage of low income units, in the City's Interim Zoning Ordinance provision that allows ministerial processing 1 of 100% Affordable Housing Projects of 50 or Fewer Units. Specifically, Council requested that a minimum off 25% of the units be restricted to low income categories, defined as households at 60% of Area Median Income (AMI) or less. The provisions currently in place were adopted with the Interim Zoning Ordinance on February 8, 2011 that established standards while the Zoning Ordinance Update to implement the Land Use and Circulation Element (LUCE) was underway. The current provision was included as a way to support the City's desire to reduce barriers for the creation of affordable housing. Affordable projects with 50 units or less were provided with an option for ministerial processing if all the units were deed restricted to serve households with incomes 80% or less of the AMI, a definition of a "moderate" income household. Discussion The dissolution of Redevelopment and the associated loss of the City's primary funding source for affordable housing have affected the City's ability to produce housing for the lowest household income categories. Historically, the City has annually invested approximately $15 million of Housing Trust Funds to finance affordable housing through loans and grants to non - profit housing developers. With the dissolution of Redevelopment, the majority of the Housing Trust Fund dollars, as well as the City's ability to leverage outside funding, is gone. The issue of affordable housing is of great concern and has been the subject of several Council sessions, the most recent on December 11 2012. Southern California Association of Governments' (SCAG) projections and the City's current Housing Element update process identify the need for a significant number of low income housing units. This need is discussed in the February 28, 2012 Council study session on housing. The LUCE identifies affordable housing as one of the City's highest priorities and identifies the creation of affordable housing as both a requirement and community benefit. The overarching goal of the LUCE housing policy is to create significant new `a additional affordable housing opportunities where few or none currently exist (p. 3.3 -2 and 3.3 -11). The loss of Redevelopment is a significant change since the passage of the original Interim Zoning Ordinance and necessitates a rethinking of the incentives directed at the creation of affordable housing. The proposed change would encourage a broadened mix of affordable housing stock and will direct resources toward the housing needs of the lowest income residents To date, the incentive to create moderate - income affordable housing units has been effective. The units created serve as workforce housing and are meeting a need. However, it is important that the City's housing stock continue to offer a mix in housing affordability levels. The amendment would require that at least 25% of the affordable units serve low income categories, defined as households at 60% of Area Median Income (AMI) or less. Units serving moderate income households would be limited to 75% of the total mix. The proposed amendment would apply to all 100% Affordable housing projects of 50 or fewer units that have not received an Administrative Approval before January 8, 2013. This amendment would not apply to 100% Affordable housing projects that are being developed pursuant to a settlement agreement with the City. Alternatives As proposed, the amendment would require that at least 25% of the affordable units serve low income categories, defined as households at 60% of Area Median Income (AMI) or less. The remainder of the units would be restricted to moderate income at 80% AMI. City Council could elect to change the required percentage. Environmental Analysis The proposed ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Section 15061(b)(3) which states that, if it can be seen with certainty that the project (interim ordinance) has no possibility of significant effect on the environment, it is not subject to CEQA review. The proposed ordinance 3 merely changes the level of affordability requirements within the processing provisions for the same size 100% affordable housing project. Projects that do not meet the size or affordability requirements will be subject to discretionary review and evaluation pursuant to CEQA. Public Hearing A notice for this public hearing was published at least 10 days prior to the hearing in the Santa Monica Daily Press. Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Prepared by: Ellen Gelbard, Assistant Director, Planning and Community Development Approved: Pin, Director Planning and Community Development Attachments: Proposed Ordinance Forwarded to Council: 0 Rod Gould City Manager City Council Meeting 02 -12 -13 Santa Monica, California ORDINANCE NUMBER (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING INTERIM ORDINANCE NUMBER 2407 (CCS), WHICH ESTABLISHED INTERIM DEVELOPMENT PROCEDURES PENDING IMPLEMENTATION OF THE LUCE, INCLUDING MODIFICATIONS ADDRESSING ORDINANCE APPLICABILITY, CM DISTRICT NON - CONFORMING USES, SHARED PARKING AND FAR CALCULATIONS IN THE DOWNTOWN, EXEMPTIONS FOR CITY PROJECTS, PROVISIONS RELATING TO THE PERMITTED NUMBER OF RESTAURANTS IN THE CM DISTRICT, THE REPLACEMENT OF EXISTING PUBLIC PARKING SPACES WITHIN PUBLIC PARKING STRUCTURES IN BSC -2 AND C3 -C ZONING DISTRICTS, AND AUTHORIZATION OF EXISTING NONCONFORMING AUTOMOBILE DEALERSHIP USES AND MINOR EXPANSIONS THERETO IN RESIDENTIAL AND "A" OFF - STREET PARKING OVERLAY ZONES, TO MODIFY THE REQUIREMENTS FOR MINISTERIAL PROCESSING OF 100% AFFORDABLE HOUSING OF 50 OR FEWER UNITS 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. 1 (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. (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. 2 (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. Major elements of the comprehensive revision of the Zoning Ordinance are expected within 12 months. (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. (1) 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 3 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 circulation goals. This approach is defined in three tiers. (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. 0 (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 the time the initial interim ordinance was adopted, there were approximately 700,000 square feet of administrative and development review projects, not including development agreements, pending planning review. Of the 700,000 square feet, approximately 500,000 square feet was located within the Downtown Core. Approximately half of the projects in the Downtown Core were Administrative Approvals that did not require public review and need only comply with objective standards in the existing Zoning Ordinance. Within the Downtown, bringing forward approximately 200,000 square feet of new development outside of the development agreement process before the completion of the Downtown Specific Plan meant 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 had proceeded in a piecemeal fashion without these components, it would have undermined the community vision set forth in the Downtown 5 District goals and policies, as well as the Downtown Specific Plan process underway and would have detrimentally affected 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. 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) 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. (v) Adoption of this ordinance would also not materially alter the City's substantial incentives for residential or mixed use development in non - residential zoning districts. These incentives would be preserved in local law and policy. For example, residential development in all of the City's commercial districts would remain authorized. Thus, residential development could still occur in over 80% of the City. 0 (w) After the adoption of the initial interim ordinance, issues were raised relating to the processing of projects that were in the pipeline prior to the effective date of the initial interim ordinance which require the City to expeditiously consider and adjust the applicability provisions of the interim ordinance to ensure fairness to project applicants while preserving the City's ability to effectuate the goals and policies of the LUCE. (x) After the interim ordinance was extended on April 26, 2011, it became apparent that allowing two restaurants per block on the east side of Main Street north of Ocean Park Boulevard will promote the general welfare by encouraging additional investment in that neighborhood and strengthening the connection between Main Street and the Civic Center. (y) As detailed above and in the LUCE, the City's downtown is a thriving, mixed - use urban environment for people to live, work, be entertained, and be culturally enriched. (z) This area has the greatest concentration of activity in the City, anchored by the core commercial district, including the Third Street Promenade and Santa Monica Place. (aa) The City's publically owned parking structures in the BSC -2 and C3 -C zone districts are essential to a vibrant, economically viable downtown area, providing parking for the offices, restaurants, theaters, and residences. (bb) The vast majority of the City's residents regularly visit downtown and use its parking resources. 7 (cc) The importance of the City's publically -owned parking infrastructure in the City's downtown is reflected in the numerous studies and reports over the past dozen years, including but not limited to the 2000 Downtown Parking Management Program, the 2002 Downtown Parking Task Force strategic plan, the 2006 Downtown Parking Program, and the 2009 Walker Parking Study. (dd) These centrally located parking structures enable their users to park once and then walk to multiple destinations. (ee) This "Park Once" philosophy contributes to the Downtown's pedestrian character and is a major underpinning of its success. (ft) These parking structures are also operated in a manner to meet the City's LUCE, transportation and economic goals. (gg) The LUCE calls for a parking management approach which utilizes a shared pool of parking resources creating a true shared parking district. (hh) Given these fundamental goals, it is essential that these parking structures be protected as precious resources to ensure that adequate parking is available and that easy access is provided to the core of the Downtown thereby promoting its vitality. (ii) The City has spent millions of dollars retrofitting and maintaining many of these structures. 0i) In April 26, 2011, the California Supreme Court issued its decision in California Redevelopment Association v. Ana Matosantos, affirming AB 1X26 which provides for the dissolution of redevelopment agencies. 7 (kk) In AB 1X26, the State legislature incorporated provisions that purport to require properties formerly owned by the City's Redevelopment Agency to be sold so that the proceeds can be transferred to the County auditor - controller for distribution to taxing entities as property tax proceeds. (II) In such event, to ensure replacement parking essential for the economic viability of the City's downtown, there is a need for a development standard that requires an owner to first obtain a final permit for a project providing replacement public parking within the same district before an owner may remove, redevelop or convert a parking structure in a manner that results in the removal of public parking spaces. (mm) On April 11, 2006, the City Council adopted Interim Ordinance Number 2179 (CCS), after lengthy public outreach, environmental review, and hearings, modifying auto dealership standards in various commercial and residential zoning districts in the City to better balance the need for auto dealerships to expand and develop a more urban format within a context of limited land availability and close proximity to sensitive residential uses. This Ordinance was extended several times, but expired August 8, 2010. (nn) Consistent with LUCE goals and policies, it has and continues to be contemplated that the provisions of the auto dealership interim ordinance would be included in the Zoning Ordinance Update that is currently under preparation. (oo) More specifically, Goal E8 of the LUCE states: "Allow for the expansion and improved performance of automobile dealers in Santa Monica, recognizing their contribution to the local economy and the revenue base of the General Fund." Further, LUCE Policy E8.3 states: "Allow automobile dealers to reasonably expand in their N current locations and otherwise respond to likely global changes in the automobile industry as long as their redevelopment is in the urban auto dealership format and incorporates mitigations to reduce any negative impacts on the surrounding residential and nonresidential uses. The expansion may occur on existing parcels used for automobile dealerships and on adjacent or proximate parcels." (pp) Auto dealerships are important to the economic vitality of the City, and readopting, with modification, certain of the auto dealership interim ordinance provisions would encourage the retention of these dealerships by enabling these dealerships to expand and modernize their operations in order to remain competitive in the industry while ensuring that changes or improvements made on existing automobile dealer lots are sensitive to and in keeping with the character of adjacent residential areas. (qq) The dissolution of the City's Redevelopment Agency and the associated loss of the City's primary funding source for affordable housing have significantly impacted the City's ability to produce housing for the lowest household income categories. Historically, the City's Housing Division. invested approximately $15 million of Housing Trust Funds annually to finance affordable housing through loans and grants to non - profit housing developers. With the dissolution of redevelopment, the majority of the Housing Trust Funds' dollars, as well as the City's ability to leverage these monies with outside funding has been eliminated. (rr) The LUCE identifies the production of affordable housing as one of the City's highest priorities and many of the LUCE policies are targeted at the production of affordable housing. For instance, LUCE Policy H1.2 provides that the City should 10 "maintain programs to require and encourage the production of affordable housing for very low -, low- and moderate income households," "seek additional opportunities to increase the percentage of affordable housing as a component of for -sale and qualifying rental residential and mixed -use housing projects," and "incentivize affordable housing projects." LUCE Policy H1.3 provides that the City should "incentivize the creation of new affordable housing opportunities." (ss) The City is in the process of updating its Housing Element. The City's Regional Housing Needs Assessment (RHNA) includes four hundred twenty -eight (428) very low income housing units and two hundred sixty -three (263) low income housing units. (tt) The loss of redevelopment monies and the City's future affordable housing goals as reflected in the RHNA necessitates that the City strengthen its incentives for the production of housing which provide a greater mix in housing affordability levels and address the City's need for low, very low and extremely low affordable housing units. The proposed revision to the standards for the ministerial processing of 100% affordable housing projects of 50 or fewer units directly addresses this effort. (uu) In light of the above - detailed concerns, on February 8, 2011, the City Council adopted Interim Ordinance Number 2345 (CCS) establishing interim development procedures pending implementation of the LUCE through a revised Zoning Ordinance; on April 26, 2011, the City Council adopted Ordinance Number 2356(CCS) extending and amending Ordinance Number 2345 (CCS); on February 28, 2012, the City Council adopted Ordinance Number 2394 (CCS), further extending and amending Ordinance Number 2345 (CCS), and on August 28, 2012, the City Council adopted 11 Ordinance Number 2407 (CCS) additionally extending and amending Ordinance Number 2345 (CCS). (vv) 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, Section 3, Section 4, Section 5, and Section 6 of this Ordinance. (ww) As detailed above and in the January 25, 2011, April 26, 2011, February 14, 2012, August 14, 2012, and February 12, 2012 City Council staff reports, there continues to exist a current and immediate threat to the public health, safety, and welfare should the interim zoning ordinance and necessary amendments 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. 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, Section 4, Section 5, or Section 6 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, or extended for a development project in contravention of Section 3, Section 4, Section 5, or Section 6, during the pendency of this Ordinance or any extension thereof. 12 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 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. (4) Additionally, notwithstanding subsection (c) of this Section, any pending Administrative Approval application filed on or before March 11, 2011 for a housing development project must meet the following Transportation Demand Management requirements: (i) Prior to the issuance of building permits, the property owner shall prepare, implement, and maintain a Transportation Demand Management plan, to the satisfaction of the City, including physical, operating and leasing conditions that will be reasonably likely to result in attainment of a 1.50 a.m. and p.m. AVR among employees at the development within three years and continued achievement and maintenance of 13 the AVR targets thereafter. The following measures shall be included in the developer's TDM plan: (A) Transportation Information: Developer (and its successors and assignees) shall provide, to the satisfaction of the City, bulletin boards, display cases, or kiosks, displaying transportation information located where the greatest number of residents and employees are likely to see them. This information shall also be provided annually and upon signing of any lease, to residents and commercial tenants. Information shall include, but is not limited to, the following: Current maps, routes, fare information, and schedules for public transit routes serving the site. Telephone numbers and website links for referrals on transportation information including numbers for the regional ridesharing agency and local transit operators. ® Ridesharing promotional material supplied by commuter - oriented organizations. • Bicycle route and facility information, including regional /local bicycle maps and bicycle safety information. ■ A list of facilities available for carpoolers, vanpoolers, bicyclists, transit riders, and pedestrians at the site. ■ Walking maps and information about local services, restaurants, movie theaters, and recreational activities within walking distance of the project. 14 u (B) Motorcycle Parking: Developer (and its successors and assignees) shall provide two motorcycle parking spaces allocated in the commercial subterranean parking level, if commercial parking is provided on -site. (C) Bicycle Parking: Developer (or successors and assignees) shall provide and maintain long -term, secure bicycle parking, such as a locked room or cage, for commercial tenant employees at a rate of one space for each 5,000 sq. ft. of commercial area, with a minimum of two spaces in City- approved locations. Long -term secure bicycle parking for the residential component shall be one space per bedroom and shall be provided in an enclosed, secure space (e.g. bike room, bike lockers). Short -term bicycle parking for the residential component shall be 0.2 spaces /unit with a minimum of 4 spaces. (D) Bicycle, Vanpool, and Carpool Parking Spaces: Developer (or successors and assignees) shall provide parking space in accordance with SMMC 9.04.10.08.050. Preferential parking within the parking garage shall be provided for project employees who carpool or vanpool to work. The charge for such parking spaces will be at a reduced rate. (E) Showers: A minimum of one women's and one men's shower and locker facility shall be provided for employees of commercial uses on site who bicycle or use another active means, powered by human propulsion, of getting to work or who exercise during the day. (F) Unbundling of Parking Spaces: If the City adopts an ordinance or other legal mechanism which authorizes the unbundling of parking, the Applicant (or Applicant's successors and assigns) shall in all leases it executes as landlord or 15 residential units within the Project provide residential tenants with the option of leasing parking space(s) separately from the residential unit. Any parking spaces not leased by project residential tenants may be leased to any lessee on a month to month basis, whether or not the lessee otherwise occupies or works at the project, provided project residential tenants are given first priority to lease such spaces. (G) Transportation Management Organization: Developer shall agree to participate in a Transportation Management Organization serving its area and require same of its tenants. If the City adopts a requirement that a Transportation Management Organization be formed for the project's geographic area, property owner and tenants shall participate in any specific strategies that may be implemented, including but not limited to, support for transit use, shared parking, car sharing opportunity, and pedestrian and bicycle improvements. (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 City projects or projects developed pursuant to a development agreement adopted pursuant to Santa Monica Municipal Code Chapter 9.48. City projects are defined as City public works projects and City community facilities (e.g. libraries, public parking structures, recycling centers, and community centers), not including public /private partnerships, and City projects shall be deemed to meet the community benefit requirements of Tier 2 and Tier 3 development projects. (c) Downtown Core. Notwithstanding the development standards specified in the Zoning Ordinance, no development project in the Downtown Core as delineated in 16 the Land Use Designation Map approved by the City Council on July 6, 2010 shall exceed 32 feet in height except City projects or 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 Pro'ects. Notwithstanding subsection (b) and (c) of this Section, affordable housing projects with 50 units or less will continue to be processed ministerialf if a minimum of twPntv_fi „® „nr occuoancy b households with �rc,eni nu io of Area Median Income or less and the remainder 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 ` � 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. (e) Shared Parking The following administrative process is hereby established authorizing property owners and tenants to request shared parking in the Downtown 17 Core, except for projects that are processed through a development agreement. A shared parking permit is intended to permit the owners of parking facilities to rent or lease underutilized parking that is available in their facility to nearby residents, workers or businesses while reserving sufficient parking supply needed for on -site uses. (1) Permit Required. A shared parking permit, approved by the Planning Director, or his /her designee, shall be required and shall be issued prior to the commencement of a shared parking use of any private parking facility that is otherwise limited to on -site users. The Planning Director, or his /her designee, may establish additional conditions to further the intent of this subsection (e) and ensure that parking spaces needed for the primary on -site uses will be available during the hours needed for their use. A public hearing shall not be required for issuance of a shared parking permit. (2) Application. Application for a shared parking permit shall be filed in a manner consistent with the requirements contained in Municipal Code Part 9.04.20.20. (3) Findings. The Planning Director, or his /her designee, or Planning Commission on appeal, may approve a shared parking permit application, in whole or in part, with or without conditions, only when all of the following findings are made in an affirmative manner: (i) The operation of the requested shared parking permit at the location proposed and within the time period specified will not adversely impact the primary use 19 of the parking facility for its intended on -site users, or otherwise endanger the public health, safety, or general welfare. (ii) The shared parking permit sets forth the maximum number of shared parking spaces that are being approved for use by off -site users that will be available during peak and off -peak parking demand periods so as to ensure that a sufficient number of spaces will be provided to meet the greater parking demand of the anticipated users. (iii) Additional requirements, restrictions or agreements, as deemed necessary by the Planning Director, or his /her designee, are included as a requirement(s) of the shared parking permit to ensure that parking spaces needed for the primary on -site uses will be available during the hours needed for their use. The Planning Director, or his /her designee shall prepare a written decision which shall contain the findings of fact upon which such decision is based and all required conditions, if approved. The decision shall be mailed to the applicant and to property owners and residents of parcels adjacent to the parcel for which the Shared Parking Permit is requested. Copies of the decision shall also be provided to the Planning Commission. (4) Term of Permit. A shared parking permit shall be valid for a one -year period from the date of issuance unless a different period is set by the Planning Director, or his /her designee, or the Planning Commission on appeal, as a condition of granting the shared parking IE permit. The permit shall renew automatically for additional one -year periods unless the permit is modified or revoked in accordance with subsection (6) of this Section. (5) Monitoring. The permit holder shall grant City staff access to the parking facility for the purpose of verifying parking availability prior to issuing the permit as well as to allow random monitoring after the permit is issued. (6) Modification or Revocation. The City may modify or revoke an approved shared parking permit in accordance with the following procedures: (i) If the Planning Director designee receives evidence that the conditions of the permit have not been met, or the permit granted is being or has recently been exercised contrary to the terms of the approval or in violation of a specific statute, ordinance, law, or regulation, the Planning Director designee shall serve notice of these violations, either in person or by registered mail, on the owner of the property and on the permit holder and shall provide the permit holder with a reasonable opportunity to cure the violation(s). (ii) If the permit holder or property owner has not responded to the notice within 10 days or the Planning Director designee determines that the permit holder has failed to cure the violation, the Planning Director designee may refer the matter to the Zoning Administrator for a revocation hearing. Notice of hearing shall be published once in a newspaper of general circulation within the City and shall be served either in person or by registered mail on the owner of the property and on the permit holder at 20 least ten days prior to such hearing. The notice of hearing shall contain a statement of the specific reasons for revocation. (iii) After the hearing, a shared parking permit may be revoked by the Zoning Administrator or by the Planning Commission on appeal or review if any one of the following findings is made: fraud (A) That the Shared Parking Permit was obtained by misrepresentation or (B) That the conditions of the permit have not been met, or the permit granted is being or has recently been exercised contrary to the terms of the approval or in violation of a specific statute, ordinance, law, or regulation. A written determination of modification or revocation of the shared parking permit shall be mailed to the property owner and the permit holder within ten days of such determination. (7) Appeals. Any person may appeal the approval, conditions of approval, denial, modification or revocation of a shared parking permit to the Planning Commission if filed within fourteen consecutive calendar days of the date the decision is made in the manner provided in Municipal Code Part 9.04.20.24, Sections 9.04.20.24.020 through 9.04.20.24.040. (f) Floor Area Calculations in the Downtown Core. In the Downtown Core, below -grade floor area shall not be included when calculating a project's floor area ratio 21 (FAR). However, such below -grade floor area shall be counted in establishing a project's parking requirements. (g) Non - conforming Uses in CM District. An existing use in the CM District shall be considered no longer existing if that use is changed to another type of use or if for a period of one year such use has not been in regular operation. Regular operation shall be considered being open for business to the general public during such use's customary business hours. (h) Notwithstanding the provisions of Section 9.04.08.28.070 of the Zoning Code, two restaurants per block shall be allowed on the east side of Main Street north of Ocean Park Boulevard and south of Pico Boulevard. (i) No removal, redevelopment or conversion of a parking structure in BSC -2 and C3 -C zone districts, publically owned as of February 14, 2012, which results in the loss of parking spaces above the ground floor shall be permitted unless the final permit to commence construction for a project providing the one -to -one replacement of this parking has been issued in the same zoning district and this replacement parking will be offered to the public at rates comparable to the most recent rates offered to the public for the removed parking spaces. SECTION 4. Automobile Dealerships in Residential and "A" Off - Street Parking Overlay Zones: Lots designated ( "A ") Off - Street Parking Overlay District, Low Density Multiple - Family Residential District (R2), or Medium Density Multiple Family Residential District (R3) that are contiguous to and were used legally in conjunction with an automobile 22 dealership in operation on August 14, 2012, which automobile dealership uses have not subsequently been abandoned ( "Qualifying Lots "), may be developed as an automobile storage structure or parking structure provided these uses are operated in conjunction with an automobile dealership on the associated and adjacent commercial lot and the development is undertaken pursuant to subsections (a) through (1) of this Section. The expansion of automobile dealership support areas shall be authorized if undertaken pursuant to subsection (m) of this Section: (a) Maximum Parcel Coverage: 50% of residential parcel area. (b) Maximum Building Height: (1) R2 Zone: 23 feet, excluding four feet of the required parapet. (2) R3 Zone: 28 feet, excluding four feet of the required parapet. (c) Setbacks: (1) A minimum 20 foot setback from the property line adjacent to a public street. (2) A minimum 15 foot setback shall be provided from the property line opposite the street facing property line. Where an alley is present, this distance may be measured from the alley centerline. (3) Except when subsection (c)(2) of this Section applies, a minimum 8 foot setback shall be provided between any above grade structure and a property line that is shared with an adjacent residential property that is not used as part of an automobile dealership. 23 (d) Inventory Storage on Surface Lots. A qualifying lot may be used for surface inventory storage only if the following conditions are met: (1) Any displaced required parking shall be relocated to another off- street location that is: (A) Located within 750 feet of the qualifying lot, or (B) Located within 300 feet of a public transit line that connects the off - street location with the dealership and the dealership provides free bus passes to its employees, or (C) Serviced by a dealership - provided shuttle between the off- street location and the qualifying lot which has been approved by the City's Director of Planning. (2) The displaced parking shall be returned to the qualifying lot if the criteria of subsection (d)(1) are no longer met. (e) Prohibited Uses. No portion of a residentially zoned parcel may be used for auto repair work, rental car use, automobile washing, outdoor display of vehicles, commercial signage, storage tanks, inventory storage on surface lots (except as provided in subsection (d) of this Section), or any other use not specifically identified in this Section 4. (f) Rooftop Parking: Rooftop parking is permitted subject to the special standards set forth in Section 5. (g) Exemption from additional multi - family development standards: Except as set forth or modified herein, the property development standards of Santa Monica 24 Municipal Code Section 9.04.08.06.060 and Santa Monica Municipal Code Section 9.04.08.06.070 shall not apply in order to accommodate the specific structural and design requirements of parking and automobile storage structures. (h) Approval Process: A Conditional Use Permit (CUP) and Development Review (DR) Permit shall be required for the development of any parking structure or automobile storage lot. The CUP shall be subject to the standards set forth in Section 6. The DR Permit shall be subject to Santa Monica Municipal Code Part 9.04.20.14. (i) ARB Review: All new construction, new additions to existing buildings and any other exterior improvements that require issuance of a building permit shall be subject to architectural review pursuant to the provisions of Chapter 9.32 of this Chapter. Q) Design Standards. Parking structures constructed under these provisions shall be subject to the design standards set forth in Section 5. (k) Use to revert to residential: Structures constructed under these provisions on residential parcels without an "A Off- street Parking Overlay designation shall be permitted to remain only when operated in conjunction with an automobile dealership on the adjacent commercial lot. If the automobile dealership use is abandoned, the parking structure shall be removed or incorporated into a residential project on the residential parcel(s) within 3 years. (1) Housing Impact Fee: Parking structures and automobile storage lots constructed on parcels designated as Low Density Multiple - Family Residential (R2) and Medium Density Multiple Family Residential (R3), without an "A" Off - Street Parking 25 Overlay designation, may be subject to an Affordable Housing Fee established by resolution of the City Council to mitigate the impact of the loss of the potential development of affordable housing on these sites. (m) A floor area expansion of existing automobile dealerships in the Residential and A Off - Street Parking Overlay Zones that is less than 750 square feet shall be permitted by -right provided that: 1) The expanded floor area is utilized for an ancillary support function, including, but not limited to, customer waiting area, offices, vehicle parts storage or vehicle parts display; 2) The height of the expansion shall be no more than 1 story and shall not exceed 23 feet; 3) None of the expanded area is utilized for auto repair activities, including but not limited to service bays, body work, oil change and lubrication, or radio, stereo, or phone installation; 4) The square footage expansion may maintain the existing building lines adjacent to public rights of way, subject to Architectural Review Board approval. SECTION 5. Special Standards for Parking Structures and Automobile Storage Lots Associated with Automobile Dealerships. Parking structures and automobile storage lots associated with an automobile dealership shall comply with the following special project design standards: (a) Design Standards: 26 (1) Except for emergency -only pedestrian exists required by the Building Officer, parking structure walls facing property lines that are adjacent to a residential use shall be solid and decorative subject to the approval of the ARB. Openings may be permitted adjacent to a public street or commercially zoned property. (2) Non -skid or other similar surface treatment on both floors and ramps of the parking structure shall be required to prevent tire squeals. This material shall be subject to the review and approval of the Director of Planning and Community Development. (3) Light sources shall be designed to contain direct and diffuse lighting and glare on the subject property. (4) Rooftop parking on parcels that directly abut or are separated by an alley from a residential district is only permitted if the parking structure provides a 6 foot parapet on the side of the parking structure closest to the residential district. This parapet shall be solid and have a surface density of 4 pounds per square foot. (5) In order to minimize noise and air impacts, exhaust vents and other mechanical equipment associated with a parking structure shall be located as far from residential uses as feasible consistent with the Chapter 8 of the Santa Monica Municipal Code. (6) Floor area dedicated to employee and customer parking and vehicle storage shall not apply to refuse and recycling requirements in Santa Monica Municipal Code Section 9.04.10.02.150 and Section 9.04.10.02.151 unless otherwise required by PIN the Director of Environmental and Public Works Management or his /her designee in order to protect the public health, safety, and general welfare. (7) Parking structures developed in lots designated Parking ( "A ") Overlay, Low Density Multiple - Family Residential (R2), or Medium Density Multiple Family Residential (R3) shall also comply with the following additional requirements: (A) Ingress and egress shall be from the adjacent commercial lot. The Planning Commission may approve an alternative access plan that minimizes impacts to adjacent residential uses if it determines that access from the commercial lot is precluded by existing commercial development. (B) At least 10% of the parking spaces within a structure shall be maintained and designated for employee parking only, unless the Planning Commission determines based on an employee parking demand analysis that sufficient parking is otherwise provided either on -site or at an acceptable off -site location. (C) If the structure is developed in conjunction with development on adjacent commercial lots, the project shall be designed so that building mass increases toward the commercial street and architectural elements that are permitted to exceed height limits are located away from adjacent residential uses to the greatest extent feasible. (D) Notwithstanding Santa Monica Municipal Code Section 9.04.10.02.170, a four foot unexcavated area shall be provided along the entire length of a property line shared by an automobile dealership and an adjacent residentially zoned property. Fifty percent of the required yard area adjacent to a public street shall remain unexcavated INN (E) Notwithstanding Santa Monica Municipal Code Section 9.04.10.02.170, a landscaped buffer of minimum five -foot width shall be required along the property line adjacent to a residential use. The buffer shall include a hedge to be maintained up to 12 feet in height where adjacent to a residential side yard and 42 inches in height where adjacent to a residential front yard. The Planning Commission may reduce or waive any part of this requirement if such reduction or waiver is consistent with the public health, safety, and general welfare. (F) At least fifty percent of the required yard area set forth in subsection (c)(1) of Section 4 adjacent to a public street shall be landscaped pursuant to the provisions of Santa Monica Municipal Code Part 9.04.10.04. Fifty percent of the unexcavated area within this required yard shall be landscaped. SECTION 6. Performance Standards Permit and Conditional Use Permit Requirements: Automobile dealerships, automobile storage lots and parking structures subject to a performance standards permit or a conditional use permit shall comply with the following standards: (a) Parking and Vehicle Storage. On -site employee and customer parking shall be provided at no charge. Employee and inventory parking may be provided as tandem and shall not be subject to Santa Monica Municipal Code Part 9.04.20.26. Except as otherwise provided in this Section, parking shall comply with Santa Monica Municipal Code Part 9.04.10.08. 29 Areas designated for employee and customer parking shall not be used for vehicle storage or display. Non -skid or other treatment shall be applied to the surface of the parking structure utilized by vehicles to avoid tire squeals. (b) Landscaping. Screening of outdoor display and non - display areas shall comply with the provisions of Santa Monica Municipal Code Part 9.04.10.04. A minimum two -foot landscape and decorative curb strip, where feasible, shall be provided along the street frontage perimeter of all outdoor vehicle display areas. Landscape materials shall be designed to provide an opaque visual buffer at least twelve inches in height. Applicable setback requirements shall be expanded as necessary to require a minimum five -foot landscaped area adjacent to any abutting residential property not used as part of the dealership operation. Final design treatment shall be subject to review and approval by the Architectural Review Board. All surface parking areas not used for vehicle display shall be subject to the parking lot screening requirements of Santa Monica Municipal Code Part 9.04.10.04. (c) Lighting. All lighting shall comply with Santa Monica Municipal Code Sections 9.04.10.02.270 and 9.04.10.02.280. (d) Loading and Unloading of Vehicles. Loading and unloading of vehicles is 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 (d). 30 (1) Loading and unloading of vehicles is limited to the hours of eight a.m. to five p.m. Monday through Saturday. Loading and unloading of vehicles is prohibited on Sunday and legal holidays. (2) Vehicle off - loading shall not be permitted in the public right of way or residential area and shall occur on site or off -site. The applicant shall prepare and submit to the Transportation Management Division for approval a plan that complies with all requirements of this subsection (d) to be included in a form prepared by Transportation Management Division. (e) Storage of Vehicles. No automobile dealership owner, operator, or employee, for any period of time on any public street or alley, shall park or store vehicles for sale, to be repaired, that have been repaired, or that are part of an automobile rental operation associated with the dealership. (f) Repair of Vehicles. The repair and service facility portion of an automobile dealership shall comply with the provisions of Santa Monica Municipal Code Section 9.04.14.050. (g) Queuing of Vehicles. An adequate on -site queuing area for service customers shall be provided. On -site driveways may be used for queuing but may not interfere with access to required parking spaces. Required parking spaces may not double as queuing spaces. (h) Test Driving. 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 driving. Each dealership operator 31 shall have an affirmative obligation to inform all its personnel of this requirement and to ensure compliance with it. The applicant shall prepare and submit to the Transportation Management Division for approval a plan that complies with all requirements of this subsection (h) to be included in a form prepared by Transportation Management Division. Existing dealerships shall submit plans to the Transportation Management Division for approval that satisfy the requirements of this subsection if such plans are not already on file. (i) Control of Alley Traffic. Notwithstanding the prohibition of alley use for test driving, each dealership operator shall present to the Transportation Management Division, at the same time of the filing of an application for a permit for a new dealership or substantial remodeling, plans for slowing traffic flow in alleys adjacent to their uses, with the objective of minimizing dangers to pedestrians and neighboring vehicle operations, and of minimizing noise and other environmental incursions into the neighborhood. Such plans shall be designed to limit the maximum speed to fifteen miles per hour and may include measures such as speed bumps or dips, one -way traffic patterns, increased signage, parking and loading prohibitions and similar measures. (j) Circulation. The location of entries and exits from automobile dealerships, automobile centers, and automobile storage lots shall be located as far away from adjacent residential properties as is reasonably feasible and shall be directed to commercial streets and away from residential areas by means of signage and design. The interior circulation system between levels shall be internal to the building and shall not require use of public ways or of externally visible or uncovered ramps, driveways or 10% parking areas. No arrangement shall be permitted which requires vehicles to back into an alley or other public way. Compliance with this subsection Q) shall be subject to review by the Transportation Management Division. (k) Noise Control. (1) There shall be no outdoor loudspeakers. Interior loudspeakers shall produce no more than forty -five dba at a boundary abutting or adjacent to a residential parcel, under normal operating conditions (e.g., with windows open if they are likely to be opened). (2) All noise generating equipment exposed to the exterior shall be muffled with sound absorbing materials to minimize noise impacts on adjacent properties and shall not be operated before eight a.m. or after six p.m. if reasonably likely to cause annoyance to abutting or adjacent residences and shall at all times be in compliance with the City's Noise Ordinance. (3) Rooftop storage areas shall be screened with landscaping and /or noise absorbing materials to minimize noise impacts on adjacent properties. (1) Toxic Storage and Disposal. (1) Gasoline storage tanks shall be constructed and maintained under the same conditions and standards that apply for service stations. (2) There shall be full compliance with the terms and conditions of all applicable federal, state, and local laws relating to the storage and disposal of toxic chemicals and hazardous wastes. (m) Air Quality. 33 (1) Use of brake washers shall be required in service stalls or areas which perform service on brakes employing asbestos or other materials known to be harmful when dispersed in the air. (2) All mechanical ventilating equipment shall be directed to top story exhaust vents which face away from abutting or adjacent residential properties. (3) Exhaust systems shall be equipped with appropriate and reasonably available control technology to minimize or eliminate noxious pollutants which would otherwise be emitted. (n) Hours of Operation. Unless otherwise approved by the Planning Commission, if the dealership is within one hundred feet of a residential district, operation of the dealership shall be prohibited between the hours of ten p.m. and seven a.m. (o) Vehicle Stacking Equipment: Vehicle- stacking equipment shall be permitted within parking structures and on surface lots for employee parking and vehicle storage when screened with an eight -foot high solid masonry wall. The wall shall be set back from the property line at least two feet so that a landscaped buffer of up to two feet in width can be provided. Parking spaces in lifts shall not be applicable in calculating a dealership's parking requirement. If the structure is located in an R2, R3 or A lot, the spaces provided on lifts shall not be included in the base used for calculating the required 10% provision of employee parking spaces. In addition, these spaces shall not count toward fulfilling the 10% employee parking requirement. Vertical spaces above employee parking shall be used for employee parking; spaces above inventory shall be used for inventory. The Planning Commission may reduce the wall height 34 requirement to a minimum of six feet and may reduce or waive the landscaped setback area if such reduction or waiver is consistent with the public health, safety, and general welfare. All facilities shall comply with the City's Noise Ordinance. (p) Accessory Automobile Rental Agency Requirements. The following special standards shall apply to accessory automobile rental agencies located within automobile dealerships: (1) No more than ten percent of the total interior floor area of the automobile repair or automobile painting facility or a maximum of seven hundred fifty square feet, whichever is less, shall be devoted to the accessory automobile rental agency operation; (2) The accessory automobile rental agency shall only operate during the hours of operation of the automobile repair or automobile painting facility; (3) Vehicles may only be rented to customers of the automobile repair or automobile painting facility; (4) No exterior signage shall be permitted for the accessory automobile rental agency; and (5) The accessory automobile rental agency shall not be advertised or marketed as an independent automobile rental agency. (q) Plan Verification. All dealerships shall submit a letter annually in June affirming their continued use of their test - driving, vehicle off - loading, and alley traffic control plans. Any changes to approved plans shall require approval of the Transportation Management Division. 35 SECTION 7. Applicability. Except for subsections (e) through (g) of Section 3 which shall be applicable to existing and future development, this Ordinance shall apply to any development project which has not received its discretionary planning entitlements (e.g., development review permit, variance, architectural review permit, conditional use permit) or has not filed any requested extension to these planning entitlements as of March 11, 2011 unless the development project has otherwise obtained a vested right to proceed. Discretionary project applications that were filed prior to the effective date of Ordinance Number 2345 (CCS) and which are subject to its provisions and any extension thereto shall automatically be converted to a development agreement with fees already paid to be applied towards the development agreement deposit. SECTION 8. 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 9. 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. 0 SECTION 10. This Ordinance shall be of no further force or effect after August 14, 2013, 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 11. 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 after its adoption. APPROVED AS TO FORM: AMA SHA J NE o OUTRIE City Attorney 37