SR-11-12-2013-7DCity Council Meeting: November 12, 2013
Agenda Item: _1
To: Mayor and City Council
From: David Martin, Director of Planning and Community Development
Subject: Development Agreement 11 DEV -009 to allow a 6 -story hotel development
project (Hampton Inn & Suites) consisting of 143 guest rooms, up to
78,750 SF of floor area, and up to 108 parking spaces within a two -level
subterranean parking garage at 501 Colorado Avenue
Recommended Action
Staff recommends the City Council:
1. Certify the Final Environmental Impact Report prepared for the project in
accordance with CEQA;
2. Adopt a Resolution adopting the Mitigation Monitoring Program and Statement of
Overriding Considerations for the project; and
3. Introduce for first reading an ordinance approving the proposed Development
Agreement.
Executive Summary
The applicant proposes a Development Agreement to allow a new moderately - priced
limited- service hotel located at 501 Colorado Avenue. The project involves the
construction of a 6 -story (75 feet) hotel that would include 143 guest rooms, up to
78,750 square feet of floor area on a 22,500 square foot parcel (3.5 FAR), and up to
108 parking spaces with a mix of valet and self - parking within a two -level subterranean
parking garage. The project site is located on the northeast corner of 5th Street and
Colorado Avenue and is currently developed with a commercial office building.
The developer is also proposing a separate hotel Development Agreement (11 DEV-
010, Courtyard by Marriott) at 1554 5t" Street concurrent with this application (also on
this agenda), which is located directly across the street from the Hampton Inn site on
the northwest corner of 5th Street and Colorado Avenue. Both projects are developed
with similar densities and building heights on equally sized parcels. Although each
project is being processed through separate Development Agreement applications
because they function independently with different operators, a single Environmental
Impact Report has been prepared that analyzed both project sites. Similarly, the
Council should review and consider the projects together from a contextual standpoint.
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Inn)
Pursuant to the City's Interim Zoning Ordinance No. 2417 (CCS) ( "IZO "), this project
requires approval of a Development Agreement since it exceeds 32 feet in height.
The proposed hotel is situated at a key downtown location directly across from the
Exposition Light Rail terminus. This regional transportation system will support the
transit needs of hotel guests and employees, in particular providing local tourists with
broader and easier access to key destinations in the Santa Monica and Los Angeles
area. The project further provides an active use with pedestrian oriented amenities
along the future Colorado Esplanade, enhancing this new public space both in terms of
project design as well as monetary contributions to support construction. Further, the
proposed project results in limited environmental impacts, including a single traffic
impact to an intersection under the approval year (2013) conditions. Notably, the
proposed project would have a lower trip generation compared to a commercial mixed -
use project alternative, as identified in the project's environmental impact report, which
would result in higher am /pm peak hour trips compared to the proposed project.
Earlier this year, Council determined priority categories for new projects, which includes
revenue generating projects. The proposed project therefore qualifies as a priority
project, as it includes both significant project benefits and community benefits.
Consideration of the significant project benefits is important while evaluating the
proposed community benefits. Unlike the mixed -use development agreement projects
reviewed by the City, the proposed hotel results in a greater positive fiscal impact to the
City from annual tax revenues including transient occupancy tax, sales tax, and property
tax, generating approximately $1.5M annually.
Individually, the project would result in a net fiscal benefit of $1.36M to the City's
general fund; the two hotel projects combined (Hampton Inn and Courtyard Marriott)
would result in a net fiscal benefit of $2.74M annually. Furthermore, the project would
result in positive local economic activity, generating an estimated $7.1M of total
direct/indirect benefits annually. The proposed hotel would provide socio- economic
benefits by providing new employment opportunities, estimated at 52 permanent jobs,
with a living wage for hotel employees. However, as intended by the applicant, these
hotels would be union hotels. As union hotels, the financial feasibility analysis prepared
for the project determined that each project would be somewhat below financial
feasibility. More specifically, for the Hampton Inn, the feasibility analysis determined
that the residual land value would be $420 per square foot; $500 per square foot is the
benchmark residual land value for project feasibility.
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The Architecture Review Board, in its conceptual review of the project, were supportive
of the overall design, and believe the project's design is unique to Santa Monica and
greatly enhanced compared to typical Hampton Inn and Suites hotels.
Community benefits have been negotiated as part of the Development Agreement. The
applicant proposes the following community benefits for this project:
• Applicant agrees with staff's recommendation to provide a total of $635,000 in
contributions towards the Colorado Esplanade, Hospitality Training, Transportation
Impacts, Historic Preservation, and Parks and Recreation /Open Space.
• A Transportation Demand Management (TDM) plan with measures intended to
reduce project parking demand and vehicular trips in the area.
• The project construction is proposed to achieve a minimum LEEDO Gold certification
as established by the LEEDO Rating System.
• Solar energy systems, including photovoltaic solar panels, would be installed on the
building's roof areas, to a maximum extent available as determined by the City.
• One electric vehicle (EV) charging station and seven EV stub -outs for charging
stations would be located within the subterranean garage.
• The Project would include a water conservation requirement of a minimum 30%
water reduction for the hotel's total water use.
• Physical improvements consisting of a ground floor setback that widens the adjacent
sidewalks.
• An Artistic Exhibition Program for the purpose of showcasing different forms of art in
periodic exhibitions at the hotel, including art sourced from professional galleries,
local artists, and Santa Monica students would be implemented.
• Community access to on -site meeting space would be provided.
• Shared Parking: Any unused on -site parking available for monthly lease at market
rates to third parties in the surrounding area in need of parking, including area
residents, businesses, and employees, provided the developer can demonstrate
through a parking study that such spaces are not needed to meet the project's peak
parking demand.
• A local hiring provision is proposed to facilitate the employment of local workers
during construction and for project employees, including a job fair, internship
program, and a local hiring goal of 40% of the total full and part-time jobs in the
project.
The site is located in the Downtown Core land use designation and Downtown District of
the Land Use and Circulation Element (LUCE) of the General Plan. The proposed use is
consistent with the Downtown Core land use designation. While the project does not
comply with floor area ratio, building stepbacks, parking, and landscaping requirements
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for the underlying C3C.zoning district, such compliance is not required as the
development agreement will establish the site's precise development standards.
In addition to the Development Agreement findings provided in this report, the following
issues should be considered by the City Council in its review of the proposed project:
• Whether the proposed design and site plan are appropriate and compatible with the
neighborhood and the subject site.
• Whether the proposed plan and proposed community benefits are consistent with
the objective, goals, general land uses, and programs specified in the LUCE.
Background
The project site consists of three contiguous parcels with a total of 22,500 SF located on
the northeast corner of 5th Street and Colorado Avenue in the C3C downtown overlay
commercial district. The site consists of an existing 3 -story office building (46' in
height). Adjacent uses along 5t" Street and Colorado include residential, retail, service,
and restaurant commercial. Existing structures in the area range in building height,
however adjacent residential buildings along the north side of Colorado Avenue range
from 52 to 60 feet in height. The project site is '/ block east from the Santa Monica
Place, and across the street from the future light rail terminus station at the corner of 4th
Street and Colorado Avenue.
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Planning Commission & City Council Float -Up
At the December 14, 2011 Planning Commission meeting, the Planning Commission
reviewed the Development Agreement proposal (float up review) and recommended
that the City Council initiate the Development Agreement negotiation and review
process. The Planning Commission provided the following comments:
- The project should provide a living wage for hotel employees and a local hiring
provision.
- Enhancement of the overall design concept and relationship with the concurrent
Courtyard Marriott project, improvement of the ground floor pedestrian -
orientation and its transit - oriented uses, and additional ground floor open space
to provide expanded sidewalks.
- Ensure the proposed number of parking spaces can accommodate the project's
parking demand.
- The TDM plan should include a bike share program, transit passes for
employees, and flex car spaces on -site for car - sharing.
- Consider providing shuttle service to hotel patrons to common destinations (i.e.
airport), and within the local area (in Santa Monica).
In response to this comment, although shuttle service for guests within the local
area may provide a convenient service, staff believes that shuttles would be
contrary to goals of the downtown in that they may contribute to the amount of
vehicular trips in the area. The downtown area is a walkable area for hotel
guests, and the use of public transit should be encouraged. Furthermore, staff
anticipates that a convenient non -stop bus service to LAX will be offering
services between LAX and the Santa Monica Civic Auditorium in the near future,
providing hotel guests with a near direct transit option. Therefore, staff does not
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believe a provision for the hotel to provide shuttle service for hotel patrons is
necessary.
- The project should provide a Transportation Impact contribution.
At the April 10 2012 City Council meeting, Council recommended that Planning staff
proceed with the Development Agreement negotiation and review process. The Council
provided the following comments:
- Consistent with the Commission, Council recommended that the project provide
a living wage for hotel employees, health care benefits, a local hiring provision, a
Transportation Impact contribution, additional ground floor open space for
expanded sidewalks, enhanced overall design concept with pedestrian- oriented
ground floor uses, flex car spaces on -site for car - sharing, and transit passes for
employees.
- Transit passes should be provided to hotel guests.
In response to this comment, staff believes providing subsidized transit passes
for employees would be more effective in reducing vehicular trips. Furthermore,
the downtown area is a walkable area for hotel guests, and the use of public
transit should be en6ouraged.
- Valet drop -off operations should occur in the subterranean garage level to avoid
vehicle queuing on the 5th Street.
In response to this comment, a condition has been included requiring all
vehicular areas to be monitored by hotel staff to ensure that no queuing occurs,
and further require that the City and developer monitor the performance of the
proposed Parking and Deliveries Management Plan and make operational
changes as needed. Operational changes may include, but not limited to, that all
valet operations occur in the subterranean level, as recommended by Council.
Project Analysis
Project Description
The proposed project involves the construction of a 6 -story (75' -0" in height) limited -
service hotel including 143 guest rooms, up to 78,750 SF of floor area on a 22,500 SF
parcel (3.5 FAR), and up to 108 parking spaces with a mix of valet and self - parking
within a two -level subterranean parking. Pedestrian access would be primarily provided
at the street corner, with vehicular access from 5th Street.
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The ground floor would include a mix of hotel uses, including lobby operations and
offices, house laundry facilities, business and media centers with seating, lounge area,
a multi- function space for continental breakfast and meeting space, and associated
service areas. Up to 2,500 SF of retail /incidental food service /transit - oriented use
space would be provided in the ground floor leasable space along Colorado Avenue. A
small retail sundry market ( "suite shop ") stand within the hotel lobby would provide
prepackaged food, drinks, sundries, periodicals, etc. The hotel would not contain a
restaurant or bar, however would provide continental breakfast items for hotel guests.
Guest rooms and associated support areas, pool /sun deck, and exercise room, would
be located on the second floor. Floors 3 -6 would consist of guest rooms and associated
support areas. The sixth floor includes less floor area and fewer guest rooms compared
to lower floors, and would only cover a portion of the general building footprint.
The development agreement includes a provision that would allow alcohol service within
the Leasable Space for incidental food establishments and hotel common areas
(including pool /spa, lobby lounge, etc.), and the sale of alcoholic beverages in the
ground floor suite shop within the hotel lobby. The agreement does not include
provisions for alcohol to be provided through in -room mini bars.
Conceptual Proiect Desipn; Float -Up Review
Conceptual Design: Courtyard by Marriott on left, Subject Hampton Inn on right.
As a result of the Development Agreement process, the architectural design of the
project has been substantially changed and improved from the original design concept
proposed during the Planning Commission float -up review, and greatly enhanced in
comparison with typical Hampton Inn & Suite hotels. The concept design rendering
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above was first presented to the Commission and then redesigned prior to Council
review during the float -up haview process. The current building design (below) consists
of a stronger architectural concept that is unique to Santa Monica. It provides greater
ground floor setbacks and pedestrian- orientation, including outdoor dining and a second
floor pool deck overlooking 5th Street. The design acknowledges that this is a
prominent street corner in the Downtown that will experience a significant growth in
pedestrian activity with the completion of the future light rail station and Colorado
Esplanade.
Proposed Hampton Inn & Suites Corner Elevation: Colorado Avenue + 5th Street
Proiect Desim
The modern /contemporary building design features expansive storefront glazing and
metal canopies /sun shading devices for pedestrians. The building design concept is a
solid form with additive features consisting of different materials, including a colored
glass curtain wall, metal frames, and smooth stucco finishes. The building design
consists of recessed areas throughout the street elevations that provide visual interest,
and reduce the perceived building mass. The corner element consists of a larger
building volume that is setback from the building fagade along both street elevations, yet
provides a strong corner feature based on its materials, form, and height.
M
Colorado Avenue Elevation 1 5t" Court Alley Elevation
Interior Side Elevation 1 5t" Street Elevation
The overall building is designed with a U- shaped configuration with an internal
courtyard. This design configuration would allow internal guest rooms to have windows
facing the courtyard. In an effort to improve these guest room views, the lower rooftops
would be designed with a combination of hardscape and limited use of planters,
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primarily for trees. This configuration would provide necessary building relief and open
space along the northern common property line shared with the adjacent property
(currently Fred Segal surface parking lot). This design anticipates future development
adjacent to the project, which could consist of residential uses, allowing for additional
light and air circulation between the buildings that would otherwise not be achieved if
the building were designed to maximize the building envelope along this elevation.
Existing buildings in the area are relatively consistent in terms of building height. As
mentioned, the adjacent property to the north is currently developed with a surface
parking lot, and the residential property across the 5th Court alley (1548 6th Street) is 6
stories, 60 feet in height. The property across the alley on the northeast corner of 6th
Street and Colorado Avenue is currently developed with a one -story commercial
building (general office). The residential building on the southeast corner of 5th Street
and Colorado Avenue (Community Corporation) is 5 stories, 52 feet in height. At 6
stories, 75 feet in height, the proposed building would be taller than nearby existing
buildings. However, in reviewing the Courtyard and Hampton Inn projects contextually,
the proximity of the project sites to the Expo terminus station/ Colorado Esplanade are
important considerations. From an urban design perspective, increased density in these
proposed locations is appropriate and supported by the anticipated pedestrian growth in
the area.
Buildings in Context: Corner Design Features
Contextually, the Courtyard and Hampton Inn buildings are comparable in height, scale,
mass, and size. However, each building is an original design concept, particularly in
their shape and form. The Courtyard design consists of an eroding interlocking
geometry whereas, the Hampton Inn consists more of a solid form with additive
features. Each building addresses the street corner in a different manner. While the
Courtyard building consists of a bold frame that defines the corner; the Hampton Inn
building consists of a corner feature that, by comparison, appears more recessive. Both
buildings would provide a strong street wall presence that helps define this southern
edge of the Downtown.
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1554 5" Street (Courtyard by Marriott) + 501 Colorado Avenue (Hampton Inn)
Pedestrian Orientation
The ground floor design consists of expansive glazing, sun shading devices for
pedestrians, and short -term bicycle parking for visitors. The project would provide 12
short -term bicycle spaces for hotel visitors and commercial patrons. The ground floor
would have a floor to floor height of 20 feet, and would consist of up to 2,500 SF of
retail /incidental food service space (sublease), with outdoor seating opportunities along
Colorado Avenue within the expanded sidewalk. The existing sidewalk is approximately
10 feet wide along this segment of Colorado Avenue, and 12 feet wide along 5th Street.
The ground floor would be setback from the front property line, and would provide a
building setback of 20 feet between the curb and building along Colorado Avenue, and
at least 15 feet along 5th Street (ranging from 16', 21' -8 ", 27' -6" @ street corner). The
proposed setbacks would be consistent with the building setbacks (curb to building)
contemplated in the Downtown Specific Plan for these streets, thereby effectively
expanding the existing sidewalks to allow for adequate pedestrian accessibility.
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Ground Floor Setback
Parking I Vehicular Access I Loading Operations
The two -level subterranean garage would provide 78 striped vehicular parking spaces,
and up to 108 spaces for hotel guests could be achieved through the use of attendant or
valet service (stacked parking). The P1 level of the garage would consist of 33 secured
long -term bike parking spaces for employees (storage room) and an employee lounge.
Pursuant to City Parking Standards, the project requires approximately 153 parking
spaces, and is therefore non - compliant with parking standards.
The applicant has provided a parking demand study prepared by Linscott Law &
Greenspan, Engineers (LL &G) which analyzed the potential parking demand that would
be generated by the proposed hotel. The City commissioned traffic consultant Fehr &
Peers (F &P) to perform a peer review of this analysis, and to provide an independent
parking demand analysis for the hotel. Based on differences between both analyses as
described in the Fehr & Peers' memo (Attachment H), including the use of higher City
parking requirements for restaurants, a slightly higher guestroom peak demand rate,
and the application of the ULI guestroom time of day factors, Fehr & Peers' parking
analysis resulted in a greater peak in parking demands for the hotel compared to the
LUG analysis (F & P: 86 spaces, LL &G: 75 spaces).
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The F & P study indicates that the hotel would generate a peak parking demand of 86
parking spaces during the peak hour of demand at 9pm on a weekend evening. The
parking demand of 86 spaces can be accommodated on -site through the use of
attendant/valet parking service (stacked parking in subterranean garage). Therefore,
staff believes the proposed number of on -site parking spaces, in conjunction with
attendant/valet parking, would adequately meet the parking demand for the project.
However, based on the peak demand, staff recommends that attendant/valet parking
service is provided between the peak demand hours of 6pm -9am daily to accommodate
the anticipated parking demand (Condition No. 5). Attendant/valet parking service hours
may be amended as determined by the Planning Director, and would be authorized
through a minor amendment pursuant to DA section 2.4.2.
Parking and Deliveries Management Plan
The Development Agreement includes the applicant's parking and delivery
management plan (Exhibit 1), consisting of three parking scenarios: self - parking option,
attendant/valet parking option, and a hybrid attendant/valet parking with self - parking
option. Vehicles would enter the site from 5th Street into the ground floor driveway that
includes three loading /unloading spaces. During self - parking, hotel patrons would
either utilize these loading spaces at grade or continue to the P1 subterranean garage
level and utilize designated parking spaces for guest check -in. Similarly, taxis may
utilize the loading /unloading spaces, and continue to P1 for turn - around. Durinq
attendant/valet operations, service would occur in the ground floor driveway as
available, or on the lower P1 level. Hotel guest departure /loading operations would
occur on the P1 level or using the ground floor driveway loading spaces, as available.
All vehicular areas would be monitored by hotel staff to ensure adequate circulation
within the ground floor driveway, and that vehicle queuing does not impede pedestrian
access on the adjacent sidewalk or block travel lanes along 5th Street (Condition No 2).
Staff's recommended Condition No. 3 also requires the City and developer to monitor
the performance of Parking and Deliveries Management Plan during the first two years
of the hotel's operation and, as needed, the City may impose additional operational
measures or conditions to the plan to ensure compliance with the condition. Any
additional measures imposed would be at the Planning Director's discretion. Ongoing
monitoring of the Parking and Deliveries Management Plan would occur thereafter
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during the project's annual Development Agreement compliance review and /or
whenever queuing occurs (thereby requiring action by the City's Code Compliance
Department), with additional measures or conditions to the plan as necessary by the
Planning Director.
Small scaled delivery vehicles would utilize the ground floor loading spaces, and larger
sized delivery vehicles would utilize the Fifth Court Alley during limited hours between
10am -2pm daily (Condition No. 4). Similar to the condition above, the City shall monitor
the performance of the Fifth Court deliveries biannually for the first two years to ensure
that deliveries do not impede pedestrian, cyclists, or vehicular circulation on 5th Court
between Colorado Avenue (Esplanade) and Broadway, with delivery hours subject to
change.
Architecture Review Board — Concept Review
The Architecture Review Board reviewed the project's design on March 4, 2013, and
individual design comments were provided by Board members for the applicant's
consideration. Board members were supportive of the hotel uses based on proximity to
the future light rail station, and characterized the uses as assets to the Downtown.
Board members were generally supportive of the project's design, shape, massing, and
pedestrian orientation, and commented that the proposed buildings are unique and well -
designed as appropriate for the significant Downtown sites. For both projects, the
Board members emphasized the importance in the quality of the materials pallet, and
stated that the pool decks would activate and enhance the project's relationship with
both Colorado Avenue and 5t" Street.
The Hampton Inn was believed to be less sculptural in composition compared to the
Courtyard building, and the Board members recommended to incorporate related
design cues on the Hampton Inn to improve the relationship between the two buildings.
However, it is the architect's intent for the Hampton Inn to be less sculptural than the
Courtyard building. Board members commented that the Colorado Avenue elevation
should be simplified, specifically the design within the frame in that the current design
consists of multiple design ideas /colors /screening panels, etc. Staff agrees that a single
design approach would help to simplify the design within the frame. Prior to the revised
design of the current alley elevation, the Board members had concerns with the use of
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banded windows, stucco, and color (yellow) of the alley elevation (5th Court Alley) as
previously designed, and suggested improving the relationship of the elevation design
with the building. The elevation's design has been improved, and staff believes the
visual interest of the overall elevation can be further enhanced. Other comments
included additional ground floor open space at the street corner for pedestrian access,
and extensive green roofs on lower rooftops of the buildings within the interior courtyard
areas to improve guestroom views facing the courtyard. Additional ground floor open
space at the street corner has been addressed in that the corner element is setback
further from the street corner to allow for adequate pedestrian accessibility. In an effort
to improve these guest room views, the lower rooftops would be designed with a
combination of hardscape designs and limited use of planters, primarily for trees. The
applicant does not intend to install a typical "green- roof" in efforts to conserve water and
limit long -term maintenance.
Zonin4 Ordinance Development Standards
Interim Zoning Ordinance
Pursuant to the City's Interim Zoning Ordinance No. 2428 (CCS) ( "IZO "), the maximum
by -right building height for the proposed project is 32 feet in height. An IZO based
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project with a maximum building height of 32 feet could achieve 2 stories, with a 1.9
Floor Area Ratio (approximately 44,700 SF due to landscaping requirement that would
reduce floor area). Based on this interim standard, the differences between
development that can be achieved under the IZO and the proposed project should be
considered. For perspective purposes, the next section discusses the underlying CK
zoning district standards in effect prior to the City's Interim Zoning Ordinance. However,
the project is not required to comply with these C3C standards.
C3C Zoning District
The C3C zoning district establishes property development standards which govern the
height, bulk, and mass of buildings. Furthermore, this zoning district was established to
provide for a concentration of retail and cultural uses, in addition to complementary uses
such as hotels, offices, and housing. The development standards for the district are
intended to permit a greater amount of floor area per parcel in efforts to encourage an
increase in the mix of activity in the area, while ensuring that development is pedestrian -
oriented in character.
ilg
Development standards in the C3C district allow for a baseline maximum height of 4
stories and 56 feet in height, and a baseline floor area ratio of 2.5. However, the
subject property is permitted a maximum height of 76 feet with unlimited stories for
hotels. The ground floor level floor -to -floor height requirement is a minimum of 15 feet
within the front 50 feet of the building, and the ground floor street frontage must be
designed with pedestrian- orientation and designed to accommodate pedestrian- oriented
uses. As proposed, the project does not comply with building height, floor area ratio,
upper -level stepbacks, and parking requirements of the district. Below is a comparison
of the district development standards and the proposed project:
Develop. Standard
District Requirement
Proposed Project
FAR:
2.5 (3.5 GP)
3.5
Height:
76' (32' IZO, 84' GP)
75' -0"
Stories:
Unlimited for Hotels
6 Stories
Parking:
150
78 to 108
i/u oasea project with 32' height max could achieve 2 stories, 1.9 FAR
As mentioned, the proposed project is compliant with applicable zoning requirements
with the exception of the following standards:
Interim Zoning Ordinance No. 2417 (CCS) Building Heiqht: The Interim Zoning
Ordinance establishes a maximum building height of 32 feet (zoning compliant
project) for permitted projects. The proposed project is 75 feet in height and
therefore exceeds the maximum building height established for a permitted project.
Consistency with this requirement would result in a two -story commercial building
due to the height limitation. Relief from this requirement allows the project to
provide additional floors and guest rooms.
9.04.08.20.060 Floor Area Ratio: The maximum floor area ratio of the CK district
for the project is 2.5. The proposed project consists of 78,750 SF with a floor area
ratio of 3.5. This exceeds the amount of floor area that can be achieved based on
the IZO's 32 foot height limitation, and the underlying CK zoning requirements,
however complies with the floor area ratio (3.5) established by the 1984 Land Use
and Circulation Element for the Downtown Core.
9.04.10.02.040 Building Volume Envelope: Buildings shall not project beyond the
building volume envelope which requires additional setbacks /stepbacks as the
building increases in height. This requirement results in a tiered stepback of floors
3 -6. As designed, portions of the building above 30 feet exceed this envelope
along the Colorado Avenue and 5th Street elevations. Relief from this particular
standard allows for flexibility in design, resulting in a building design that provides a
street wall presence that helps to define the southern edge of the downtown. .
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9.04.10.08.040 Parking: Pursuant to City parking standards, the project requires
approximately 150 parking spaces. The project would provide 78 vehicular parking
spaces within the two -level subterranean garage, and up to 108 parking spaces
could be achieved through a mix of attendant/valet and self - parking. Therefore, the
project is non - compliant with parking standards. Based on the Fehr & Peers'
parking demand study, and also considering the project's proximity to the future
light rail station, and the proposed TDM program, staff believes the proposed
parking would be adequate to accommodate the anticipated parking demand
generated by the proposed hotel and restaurant.
9.04.08.20.070(f) Landscaping: A landscaped area of 25 SF per 50 feet of parcel
street frontage shall be provided and incorporated in the pedestrian- oriented design
elements. This totals 75 SF for each street elevation is required. The project does
not propose landscaping along any of the street elevations. Instead, the additional
ground floor setback along Colorado Avenue may be utilized by outdoor seating
area that would activate the sidewalk, while the 15 feet of clear unobstructed
sidewalk along the 5t" Street elevation would provide adequate pedestrian
accessibility in an area that will experience a significant growth in pedestrian
activity. Staff is thereby supportive of this modification.
Economic Analysis
An economic study of the proposed project compared to the existing development on
the site was performed. The City contracted The Natelson Dale Group (TNDG) to
prepare a Value Enhancement Analysis and Fiscal Impact Analysis, and a financial
feasibility analysis related to the project alternatives discussed in the Environmental
Analysis section of this report. The following is a summary of those analyses, which are
attached to this report (Attachment G).
Value Enhancement Analysis
The premise of the value enhancement analysis is that additional building height and
floor area above the baseline project would enhance the economic value of a site. In
recent projects, the IZO Base Project threshold (32 feet max height) has been used as
the baseline project. For this particular project, however, the baseline project was
defined as the existing development on -site since it was determined that a developer
would likely upgrade the existing building as opposed to new construction compliant
with the IZO Base Project threshold (32 feet max. height). The existing development
consists of a commercial building of approximately 22,078 SF. To quantify the amount
of this value enhancement, the City's financial consultant, TNDG independently
prepared a pro forma analyses, and estimated the difference in residual land values
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(estimated value less estimated construction costs) for the existing development and
the Proposed Project. TNDG estimated value enhancement under two scenarios; a
project that would provide market wages to hotel employees, and a project that would
provide comparable hotel union wages to hotel employees. TNDG estimates that the
Proposed Project based on market wages would provide a value enhancement of
approximately $12,051,563 over the value of the existing development. Under the
comparable union wage scenario, TNDG estimates that the Proposed Project would
provide a value enhancement of approximately $5,751,563 over the value of the
existing development.
Fiscal Impact Analysis
The project's fiscal impacts to the City was evaluated, and measured in terms of
revenue and cost impacts to the City's General Fund. The fiscal benefit is calculated by
subtracting the anticipated costs to the City generated by the project from the
anticipated revenues (various taxes) generated by the project. On an annually recurring
basis, the proposed project would generate a net fiscal benefit of approximately $1.36
million ($1.5M annual tax revenue less cost impacts to City police /fire resources) to the
City's General Fund. This amount does not include one -time community benefit
contributions or required child care and cultural arts fees. The complete TNDG analysis
is included as Attachment G.
Development Agreement Overview
A development agreement is a contract between the City and a developer that
authorizes the type and amount of development that may occur within a specific period
of time. Development agreements provide developers with guaranteed development
rights in exchange for community benefits. A development agreement must comply with
the Land Use and Circulation Element, but can establish different development
standards than provided by zoning regulations.
A development agreement can provide greater latitude to advance local planning
policies compared to the Development Review Permit process. While a development
agreement is an alternative to the standard development approval process, in practice it
is similar to other public review processes where the City Council makes the final
decision with the exception that the City Council has more discretion in imposing
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conditions and requirements on the proposed project since the Development
Agreements are adopted by ordinance and are negotiated contracts.
The proposed development agreement is included as Attachment F.
Significant Proiect Features
As mentioned, the project consists of both significant project features and community
benefits. Staff recognizes that for this particular project, consideration of the significant
project features is important while considering the community benefits that are proposed
for the project. Unlike mixed -use development agreement projects, the proposed hotel
use results in a significant positive fiscal impact to the City, consisting of an estimated
$1.5M of annual tax revenues from transient occupancy tax, sales tax, and property tax.
Moreover, the proposed hotel would provide socio- economic benefits to the City by
providing substantial new employment opportunities, both temporary (construction -
related employment) and permanent (hotel and retail employees). Importantly, the
proposed development agreement would include a living wage rate of $14.08/HR for
future hotel employees. Although required by code, the project would provide
approximately $250,400 ($500,000 combined projects) in childcare fees, and
approximately $157,500 ($315,000 combined projects) in cultural arts fees.
Furthermore, as a result of the development agreement review process, the
architectural design of the project has been greatly enhanced from the original design
concept proposed during the float -up review, and greatly enhanced in comparison with
typical Hampton Inn hotels. The proposed design is unique to Santa Monica, with an
enhanced architectural design and associated costs which are significant project
benefits that provide added value to the project.
Although these features are not specifically identified in the LUCE as community
benefits, they are nonetheless features of the project that significantly contribute to the
project's overall benefit to the city. Council should consider these project features when
reviewing /weighing the proposed community benefits for the project.
Living Wage
During float -up discussions, the Planning Commission and City Council recommended
that the Development Agreement include a living wage provision with health care
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benefits for future hotel employees. The City has an existing Living Wage Ordinance,
however similar to a majority of cities in California, the Ordinance is limited to "business
assistance" living wage where the requirement is triggered only if a private project
receives public funding assistance, is a City contractor, or is providing a service on City
property. Santa Monica's Living Wage Ordinance applies to all contractors providing
services to the City in excess of $54,200. The FY2013 -14 wage rate is $14.08/HR, and
includes a CPI adjustment.
The hourly wage proposed in the Development Agreement would be an amount
consistent with the City's Living Wage Ordinance, which is currently $14.08/HR, and
would be adjusted annually pursuant to the Living Wage Ordinance. The purpose of the
living wage provision in the Development Agreement is to ensure that the proposed
hotel provides its workers fair and reasonable compensation comparable to similar
Santa Monica hotels and hotels in nearby communities without placing the proposed
hotel at a competitive disadvantage. The provision would apply to all workers
performing Hotel Use services, pursuant to Section 2.7.1(1) of the Development
Agreement, without any adjustments for tips received, which are the sole property of the
employee as provided by State law. Other employee classifications would receive at
least the minimum wage of $8.00 /HR, as established by the State, or compensation as
determined by the Hotel Operator. The proposed living wage, however, would be
superseded by any future collective bargaining agreement resulting in higher hotel and
food service employee wages.
Community Benefits
Staff and the applicant have agreed on the following community benefits:
Local Hiring Provision I Hospitality Training
A local hiring provision to facilitate the hiring of local workers during construction and for
hotel and leasable space employees would be implemented, as defined in Exhibits F -1
and F -2 of the development agreement. The purpose of the local hiring policy is to
facilitate the employment by the hotel, restaurant, or leasable space tenants of the
project of residents of the City, and in particular, those residents who are low- income
individuals by ensuring residents are aware of project employment opportunities, and
have a fair opportunity to apply and compete for such jobs. The provision includes a
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local hiring goal of 40% of the total full and part -time jobs in the project. Furthermore,
the following provisions would also be implemented:
- Job Fair: The Developer /Hotel or Restaurant Operator would conduct an on -site
job fair exclusive to Santa Monica residents targeted during the Advanced
Recruitment Period for the intended purpose of recruiting Targeted Job
Applicants for on -site Hotel and /or Restaurant jobs.
- Internship Program: The developer would develop and implement a program that
would provide at least one paid (unless taken for school credit) internship per
school session to interested and qualified students who are Santa Monica
residents and attend a high school or Santa Monica College.
'7 am Santa Monica" Workshop Attendance: The hotel would send
representatives to the "I Am Santa Monica" Workshop to contribute to the
educational program by sharing the hospitality experience with participants.
Financial Contributions
The applicant has agreed with staff's recommendation to provide a total of $635,000 in
contributions towards the Colorado Esplanade, Hospitality Training, Transportation
Impact, Historic Preservation, and Parks and Recreation /Open Space. The applicant's
previous contribution proposal during the Planning Commission review was $444,343.
The Planning Commission supported staff's recommended contribution amounts, and
further recommended that the Courtyard Marriott and Hampton Inn projects provide a
combined Colorado Esplanade contribution of $1,000,000 (or $500,000 per project).
Contribution
PC
Recommendation
Staff
Recommendation
Applicant
Proposal
Colorado Esplanade
$500,000
$294,000
$294,000
Hospitality Training Academy
$50,000
$50,000
$50,000
Historic Preservation
$75,000
$25,000
$25,000
Transportation Impacts
$69,343
$69,3_43
$69,343
Parks and Recreation
$196,657
$196,657
$196,657
Affordable Housing Linkage
$21,000
$0
$0
Total Contribution Amount
$912,000
$635,000
$635,000
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The recommended contribution areas are detailed below:
Colorado Esplanade Contribution
Staff recommends a $294,000 contribution for the Colorado Esplanade project.
The contribution would fund the development of the Esplanade between 4t" and 5th
Street on the north side of Colorado Avenue. The total contribution amount
($588,000, including the portion from the Courtyard Marriott Development
Agreement project) would fully fund the associated costs of constructing the
sidewalk improvements that would directly benefit the Courtyard Marriott project,
excluding any redesign costs directly attributable to the project site. The City
would, therefore, be responsible for designing and building this portion of the
Esplanade. Due to the timing of review and permitting for this portion of the
Esplanade, the applicant shall coordinate with the City's Public Works Department
to design and construct the Enhanced Walkway (private property adjacent to the
public right -of -way) consistent with the Esplanade design. The applicant shall be
responsible for any Esplanade redesign costs associated for the portion
immediately adjacent to the project site on Colorado Avenue. The full Esplanade
contribution amount ($588,000, projects combined) would be provided as a pre-
condition to building permit issuance.
Hospitality Training Academy Contribution
The applicant proposes a $50,000 contribution to the Hospitality Training Academy
(HTA), or functional equivalent, to be used specifically for job training and
recruitment opportunities for disadvantaged youths targeted from the Pico
Neighborhood. The contribution would be provided directly to the HTA, with
verification of payment to the City.
Historic Preservation Contribution
Given the significant number of historic resources in the downtown, the applicant
has agreed to a $25,000 contribution that exclusively supports historic preservation
programs for the Downtown. Potential areas of contribution could include support
for a Plaque Program for Landmarks and significant structures in the Downtown,
and way- finding signage. The developer would create a separate interest - bearing
trust fund for this contribution.
Yea
Transportation Impact Contribution
Staff recommends a transportation impact contribution to the City that would
provide a range of transportation improvements to the Downtown area, in an
amount similar to the updated Transportation Impact Fee formula proposed to
Council. Based on this formula which consists of $3.60 a square foot of hotel
space, and a credit based on the existing general office space (- $214,157) a
transportation impact contribution of $69,343 is recommended for the project. A
Transportation Impact Fee is not required for this project since this project was
deemed complete prior to the effective date of the fee requirement, and therefore
the proposed amount is considered a community benefit.
Parks & Recreation /Open Space Contribution
Staff recommends a $196,657contribution that supports open space improvements
in the Downtown area. A contribution that supports open space /parks would
provide amenities that would directly benefit hotel guests in the downtown.
Transportation Demand Management Plan
The applicant has agreed to implement the following TDM Plan program measures:
1. AVR Requirements: Achieve an Average Vehicle Ridership (AVR) of 2.0
commencing from one year after issuance of Certificate of Occupancy for the
project, concurrent with the operation of the Expo Light Rail..
2. Transportation Demand Management Association (TMA): Hotel operator and
building tenants would be required to participate in formation of a geographic -
based TMA that may be defined by the City.
3. Employee Transportation Coordinator- An Employee Transportation Coordinator
(ETC) would be designated for this Project by the Developer, and shall manage
all aspects of this TDM program and participate in the local TMA that may be
established by the City.
4. Transportation Information Center (TIC): The TIC will include information on -site
for hotel and commercial tenant employees, and hotel guests about local public
transit services and bicycle information.
5. Secure Bicycle Parking for Employees /Hotel Guests: Project would provide
secure bicycle parking for hotel employees and guests in the amount of 29 long-
term spaces as shown on the Project Plans. Secured bicycle parking shall be
provided for the retail /commercial tenant space employees in the amount of 4
long -term spaces, for a total of 33 spaces for the project. For the purpose of this
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Section, secure bicycle parking shall mean bicycle lockers, an attended cage, or
a secure parking area.
6. Visitor Bicycle Parking: Project would provide short -term bicycle parking for hotel
guests in the amount of 8 spaces for the hotel use, and 4 spaces for the
retail /commercial tenant space, for a total of 12 spaces, located on the ground
floor of the project.
7. Bicycle Rentals by Hotel Guests: The Hotel operator would either provide or may
contract with a local bicycle rental business to make no less than ten bicycles
available on -site for rental by hotel guests, whereas additional bicycles shall be
provided as needed based on guest demand.
8. Transit Subsidy for Hotel Employees and Leasable Space Employees: Developer
would make available to all of its Hotel employees and all Leasable Space
employees a Metro EZ public transit pass (or equivalent multi- agency monthly
transit pass) valid every day for the first three months of the new employee's
employment (offered during the first three months of employment only) to
establish on -going ridership habits.
9. On -Site Shower and Locker Facilities. A minimum of two showers and locker
facility (one for each gender) wouldbe provided for hotel and commercial
employees who bicycle or use another active means, powered by human
propulsion, of getting to work or who exercise during the work day.
10. Parking and Deliveries: Parking and deliveries would be managed as described
in the Parking and Deliveries Management Plan (Exhibit 1).
11. Carpool Program: Developer would provide preferential parking within the
Project's parking garage for Project employees who commute to work in
employer- registered carpools, and would provide financial incentives for
carpooling /vanpooling.
12. Rideshare Matching Service: Developer would initiate a referral to all Project
employees about a rideshare matching service at least once per year to assist
employees in finding carpool /vanpool opportunities.
13. Parking Pricing: Hourly parking pricing would be market -based and adjusted
periodically in an effort to ensure parking availability for hotel guests, commercial
tenant employees, and visitors during peak parking hours.
14. Carshare Service: Developer would rent parking to a car sharing service for a
minimum of two vehicles and a maximum of five vehicles to a third party provider.
15. Rental Car Availability: The hotel operator would make information available to
Hotel guests on rental car agency locations within the City.
16. Unbundled Parking: Parking would be leased to commercial tenants separately
from the commercial space.
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17. Guaranteed Return Trip: Guaranteed return trip for employees who rideshare at
no cost to employee when emergency situation requires.
LEEDO Gold Certification
The developer would design and construct the project to achieve a minimum LEEDO
Gold certification as established by the LEEDO Rating System.
Solar Energy Systems
Solar energy systems, including photovoltaic solar panels and solar thermal /hot water
systems, would be installed on the building's roof areas, to a maximum extent available
as determined by the City. Areas of the roof available and appropriate for solar systems
placement shall exclude areas necessary for rooftop equipment, Fire Department
access, or other code - related clearances. The types of such renewable energy systems
shall be recommended by a professional engineer trained in solar system design who
shall consult with the City's Office of Sustainability during the process of evaluating and
selecting the types of renewable energy systems for the building.
Electric Vehicle Charging Stations
The project would provide. one electric vehicle charging station and seven electric
vehicle stub -outs for charging stations within the subterranean garage, available for
project employees or visitors. These stations would accommodate and encourage the
use of electric vehicles that would help to reduce vehicle emissions in the Downtown.
Water Conservation
The Planning Commission recommended reducing water consumption by an additional
15% above the standard 20% reduction required by City /Cal Green requirements (35%
above state requirements).
The project would achieve a minimum 30% water reduction of the hotel's total water
use. The applicant would coordinate with the City's Office of Sustainability and the
Environment to evaluate appropriate measures to be implemented in achieving the
requirement, including but not limited to, gallons per flush for toilets, gallons per minute
for showerheads, water factor for clothes washers, commercial dishwasher
requirements, and cooling tower requirements.
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While the Planning Commission recommended a 15% water reduction above Cal Green
requirements (35 %), staff believes a 30% reduction of the hotel's total water use (not
based on Cal Green baseline requirements) would be appropriate, given the unique
operational requirements of a hospitality use. Cal Green requirements are limited to
hotel room fixtures (toilets, showers, faucets, urinals), which accounts for only 30% of a
typical hotel's total water use. The proposed provision would allow water reduction in
areas in addition to hotel room fixtures, including provisions for laundry, dishwashers,
heating /cooling, and pools.
Urban Design/ Physical Improvements
The project would provide a ground floor setback of at least 20 feet between the curb
and building along Colorado Avenue, and at least 15 feet along 5th Street. The
proposed setbacks would be consistent with the building setbacks (curb to building)
contemplated in the Downtown Specific Plan for these streets, thereby effectively
expanding the existing sidewalks and street corner to allow for adequate pedestrian
accessibility.
Artistic Exhibition Program
The applicant and /or the hotel operator would develop and implement an Artistic
Exhibition Program for the purpose of showcasing different forms of art in periodic
exhibitions at the hotel, including art sourced from professional galleries, local artists,
and Santa Monica students. The purpose of such exhibitions shall be to establish and
build a connection between the hotel, visitors /guests and the local Santa Monica artistic
community. The Artistic Exhibition Program shall endeavor to host events at the hotel a
minimum of twice each year and showcase various forms of art (including but not limited
to paintings, drawings, sculptures, photography, digital media, film, music, literature,
theater, dance, performing arts and /or other recognized forms of art).
Community Meeting Space
The developer would allow community access to the on -site meeting room available to
non - profit or other community organizations on a reduced cost based on fees that are
required for similar City -owned facilities, at least 12 times per year for up to 5 hours per
meeting.
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Shared Parking
Developer may make any unused on -site parking available for monthly lease at market
rates to third parties in the surrounding area in need of parking, including area
residents, businesses, and employees, provided the developer can demonstrate
through a parking study that such spaces are not needed to meet the project's peak
parking demand.
Planning Commission Action
The Planning Commission considered this development agreement on July 24 2013
(minutes), October 2 2013, and October 16 2013 (10/2/13 'and 10/6/13 minutes
available 11/7113). The Commission recommended that the City Council deny the
proposed Development Agreement unless the applicant addressed the Commission's
concerns, and provided the following recommendations for City Council's consideration:
1. Living Wage: Provide a hotel living wage of $15.371HR, not including health
benefits.
The current hourly wage proposed in the Development Agreement is an amount
consistent with the City's Living Wage Ordinance, which is currently $14.08/HR,
and would be adjusted annually pursuant to the Living Wage Ordinance. Staff
continues to recommend a hotel living wage consistent with the City's Living
Wage Ordinance, which is also higher than prior hotel approvals in the
Downtown. The applicant is in agreement with this recommended wage amount.
2. Local Hiring: Establish a local hiring goal that 40% of the hotel workers are hired
locally from Santa Monica.
In response, a local hiring goal has been added to Exhibit F -2 (6)(a) establishing
a local hiring goal of 40% of the total full and part -time jobs in the Project (hotel
and leasable space employees). There shall be no penalties to the applicant, nor
shall the applicant be deemed to be in default under the Development
Agreement, if such goal is not achieved. Furthermore, the Developer shall
provide hiring results to the City thereafter initial hire, and annually through the
Agreement's annual compliance report.
3. Local Hiring Provision: Revise Section 4 of Exhibit F -2 (Priority for Targeted Job
Applicants) to include the following priorities:
1. First Priority to include low- income individuals living in census tracts
throughout the city for which household income no greater than 80% of area
median;
2. Second Priority to include low- income individuals living anywhere in the city;
3. Third Priority to include low- income individuals living within 5 miles of the
project site.
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In response, this section of the Agreement has been modified according to the
recommendation.
4. Added DA Language on HTA Contribution (`functional equivalent'):
The Commission agreed with staffs recommended language to Section 2.7.2
(h)(v) that the HTA contribution be provided "to the Hospitality Training Academy
or functional equivalent organization ". This language was added, in the event
that the HTA was not available to provide services, that a "functional equivalent"
would be selected, as determined by the City Manager.
5. Water Reduction: Reduce water consumption by an additional 15% above the
standard 20% reduction required by City /Cal Green requirements (35% above
state requirements).
In response, the project would achieve a minimum 30% water reduction of the
hotel's total water use. The applicant would coordinate with the City's Office of
Sustainability and the Environment to evaluate appropriate measures to be
implemented in achieving the requirement, including but not limited to, gallons
per flush for toilets, gallons per minute for showerheads, water factor for clothes
washers, commercial dishwasher requirements, and cooling tower requirements.
k
While the Planning Commission recommended a 15% water reduction above Cal
Green requirements (35 %), staff believes a 30% reduction of the hotel's total
water use (not based on Cal Green baseline requirements) would be appropriate,
given the unique operational requirements of a hospitality use. Cal Green
requirements are limited to hotel room fixtures (toilets, showers, faucets, urinals),
which accounts for only 30% of a typical hotel's total water use. The proposed
provision would allow water reduction in areas in addition to hotel room fixtures,
including provisions for laundry, dishwashers, heating /cooling, and pools.
6. Solar Energy Systems: Maximize the available roof areas with renewable energy
systems.
In response, Section 2.7.2(f) has been amended accordingly to state that solar
energy systems, including photovoltaic solar panels, shall be installed on the
building's roof areas, to a maximum extent available as determined by the City.
7. Sustainable Design Features: Section 2.7.2(e)(v): In the event that the project is
denied LEED Gold Certification, the Developer shall be either subject to a fine in
an amount of $4 1SF (increased from $27SF as proposed), or $21SF, in addition to
achieving LEED Gold under the LEED ® Existing Buildings Operations and
Maintenance (LEED EBOM) rating system. City staff to recommend appropriate
alternative. The intent of this recommendation is to further ensure that the
,applicant acts in good faith in achieving LEED Gold status by further intensifying
the penalty for not achieving the status.
In response, staff believes increasing the fine amount to $4 /SF (increased from
$2 /SF) would be appropriate, and language in the DA has been revised.
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8. Contributions: Project shall provide staff's recommended contributions, with
additional contribution towards the Colorado Esplanade and Affordable Housing
Linkage. The total recommended contribution amount would be $912,000:
HIS
- $500,000 (Colorado Esplanade)
- $69,343 (Transportation Impact)
- $75,000 (Historic Preservation)
- $196,657 (Parks and Recs /Open Space)
- $21,000 (Affordable Housing Linkage)
- $50,000 (Hospitality Training Academy)
$912,000 Total Recommended Contribution
In response, the applicant has increased their proposed contribution from
$444,343 to $635,000, consistent with staff's recommendation. Considering the
project's significant project benefits, living wage component, and other negotiated
community benefits, staff believes a total contribution of $635,000 would be
appropriate.
9. Design: Ground floor lobby should provide art provided by local artists on a
rotational basis.
In response, the applicant and /or the hotel operator would develop and
implement an Artistic Exhibition Program for the purpose of showcasing different
forms of art in periodic exhibitions at the hotel, including art sourced from
professional galleries, local artists, and Santa Monica students. This program
has been added to the community benefits section of the DA.
10. Design: The proposed ground floor outdoor seating along Colorado Avenue and
5th Street shall be provided in accordance to the approved plans. The intent of
this recommendation is to ensure that the sidewalk is activated with outdoor
seating.
In response, language in section 2.7.2(a) has been added reflecting this
recommendation.
11. Design: The Architecture Review Board, in its review of the project, shall pay
particular attention to the quality of building materials, and the extent of glazing
along the ground floor frontage on Colorado Avenue.
In response, Condition No. 12 has been added to Exhibit D, Section B reflecting
this recommendation.
12. Restaurant Alcohol CUP Conditions: Exhibit H. Limit the outdoor dining hours to
12am midnight daily.
Staff believes the proposed closing hours for the outdoor dining area of 12am
Sunday through Thursday, and lam Friday through Saturday are consistent with
the closing hours for other alcohol establishments in the downtown, and also do
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not have concernsMth the proposed closing hours at this particular site in
proximity to the light rail station.
13. TDM Plan: Project shall provide a 2.0 AVR, effective upon beginning operation of
the Expo Light Rail.
In response, the applicant proposes an Average Vehicle Ridership (AVR) of 2.0
commencing from one year after issuance of Certificate of Occupancy for the
project, concurrent with the operation of the Expo Light Rail, which is slightly
differentiated from the Commission's recommendation. Staff however believes
allowing the applicant one year to develop a strategy to achieve the 2.0 AVR
would be appropriate.
14. Architecture Review Board., Section 6.1: Allow additional flexibility for the ARB
in its review of the project by removing language that the number of rooms
cannot be reduced, and that the overall project square footage may be reduced
up to 4% (from 2% proposed) of the overall square footage.
Staff believes a 2% reduction in total floor area would be appropriate, and a
higher percentage would not be necessary given the general support for the
project's overall design and massing as expressed by the ARB during concept
review.
15. Local Hiring Outreach Plan: Prepare and provide a Local Hiring Outreach Plan to
the Planning Director.
In response, the applicant will submit a local hiring outreach plan to the Planning
Director for review and approval at least sixty days before recruitment is opened
up to general circulation for the initial hiring by the new Hotel or Restaurant,
pursuant to section 2.7.2(b) of the DA.
Neutrality Agreement
Although the applicant has signed and presented a neutrality agreement (contract
between a union and an employer under which the employer agrees to support a
union's attempt to organize its workforce) to Unite Here Local 11 for each hotel for
consideration, an agreement has not been reached at this time. A neutrality agreement
would result in Collective Bargaining Agreements increasing hotel and food service
employee wages and benefits (comparable to union wages) for future hotel workers. If
this agreement is reached, wages and benefits of a future Collective Bargaining
Agreement would take the place of the living wage included in the Development
Agreement. According to the applicant, the annual impact of these above - market
wages and benefits would increase labor costs nearly $1.9 million annually (combined
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for both hotels), and $17,952,000 for the Hampton Inn ($20,043,000 for the Courtyard)
over 20 years.
According to the applicant, the proposed neutrality agreement would also include
increased wages for employees of any food serving uses in the leasable spaces,
thereby increasing labor costs that may limit potential food - serving tenants for the
ground floor. Sandwich /bagel /coffee shops, and other food /beverage serving uses
would be required to negotiate separate Collective Bargaining Agreements. The
applicant has expressed concerns that this would make leasing the space to potential
food - serving operators challenging. Although it is the applicant's intentions to lease the
space to a third party food - serving operator, and the City's preference to have a food -
serving type operator included on the ground floor, the DA includes a provision that
would allow the Director of Planning to consider alternate pedestrian and transit -
oriented ground floor uses, in the event that a food serving tenant, as described above,
cannot be obtained. Staff believes this provision would be appropriate considering the
circumstances.
LUCE Consistency: Downtown Core
The project is located in the Downtown Core land use designation and within the LUCE
Downtown District. The LUCE vision for the Downtown Core seeks to maintain and
enhance the Downtown area as a thriving, mixed -use urban environment in which
people can live, work, be entertained, and be culturally enriched. The Downtown Core
designation and District allows for the broadest mix of uses and activities, and seeks to
provide new hotel projects in the area.
The project is consistent with the 1984 LUCE for the Downtown which limits
development to 84 feet in building height and a floor area ratio of 3.5. The 2010 LUCE
does not define building height, FAR, or stepback requirements for the Downtown Core,
however, these standards are currently being developed as a part of the Downtown
Specific Plan.
In regards to the other policies of the 2010 LUCE, the project is consistent with LUCE
Policy D7.1 of the Downtown District, in that the proposed project balances a broad mix
of uses that creates dynamic activity in both the daytime and evening hours including
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hotel uses in the Downtown. The project is also consistent with LUCE Policy D1.4 of
the Downtown District which encourages new hotels and other visitor - serving uses in
the Downtown. Goal D8 seeks to ensure that new buildings in the Downtown District
contribute to the pedestrian character of the Downtown and are compatible in scale with
existing buildings. Policies to implement this goal include D8.1 which promotes locating
primary facades of buildings fronting the street at the property line or back side of the
sidewalk, to create a lively streetscape with places for people to socialize.
Moreover, D8.6 limits ground floor uses mostly to active retail. Goal D9 seeks to
enhance the quality and character of the streetscape and urban pattern in the
Downtown. Such policies include D9.1 which states to design streets as integral parts
of the urban open space in the Downtown by encouraging strategies such as widening
sidewalks in key locations, and D9.4 which states to locate active retail space on a
pedestrian street facing the sidewalk at the ground floor. The ground floor design is
consistent with these goals, providing a ground floor setback of 20 feet along Colorado
Avenue and 15 feet along 5th Street as contemplated in the future Downtown Specific
Plan, that effectively widens the sidewalk for adequate pedestrian accessibility, and
would allow for outdoor dining opportunities that would activate the street. Overall, the
proposed project is consistent with these LUCE goals and policies for the downtown.
The implementation of a Transportation Demand Management (TDM) plan to reduce
vehicle trips in the area and reduce associated parking demand would be consistent
with LUCE Circulation Policy T19.2 which seeks appropriate TDM requirements for new
development. Furthermore, the LUCE's overall land use policies include providing
community benefits for the area, including but not limited to, a Colorado Esplanade
Contribution, a Historic Preservation Contribution, and a TDM plan.
Environmental Analysis
In accordance with the California Environmental Quality Act (CEQA), an Environmental
Impact Report (EIR) was prepared to determine the environmental effects of the
proposed project and the Courtyard by Marriott project, both individually and
cumulatively. As required by Section 15082 of the CEQA Guidelines, a Notice of
Preparation was published on April 30, 2012 for a 30 -day comment period which
indicated the City's intent to prepare an EIR for the project. On December 13, 2012, a
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Notice of Completion and Public Availability was published for the Draft EIR which
commenced a 45 -day public comment period. The areas studied in the Draft EIR
include:
® Aesthetics /Shadows
® Air Quality
® Construction Effects
® Cultural Resources
® Geology and Soils
® Greenhouse Gas Emissions
® Hazards and Hazardous Materials
® Land Use and Planning
® Neighborhood Effects
® Noise
® Solar Access and Shadows
® Transportation/Traffic
The Final EIR, which was published in May 2013, contains all comments and responses
to comments received during the comment period.
The EIR identified mitigation measures in the areas of Construction Effects (Air Quality,
Noise, Traffic), Cultural Resources, Geology and Soils, and Hazards and Hazardous
Materials, to reduce potential impacts to less than significant levels. To ensure that
these measures are properly enacted, a mitigation monitoring program is necessary and
will be enforced during the construction and operation of the project, if approved. The
proposed mitigation measures are provided in the Final EIR.
Significant and Unavoidable Impacts
For the proposed Hampton Inn & Suites project significant and unavoidable impacts
were identified in the areas of Construction - related Noise (Groundborne Vibration),
Solar Access and Shadows, and Transportation/Traffic (intersections).
Construction Effects
Section 3.3 of the Final EIR studied the environmental impacts of the project related to
construction. Construction effects related to ground -borne vibration were determined to
be significant due to the proximity to nearby residential projects that are considered
sensitive receptors. Mitigation measure MM N0I -1a could reduce these impacts
somewhat by limiting the` timing of the most vibration intensive activities, locating
vibration - generating equipment as far away as feasible from existing sensitive
33
receptors, and ensuring that haul trucks associated with construction activities are
routed away from residential streets such as 5th Street. However, because the site is
adjacent to a residential structure and the building envelope extends to the site
boundaries, such measures would be of only limited effectiveness. Another potential
mitigation measure is the use of trenching; however, this option is infeasible because
the projects' building envelopes extend to the property line. Therefore, construction -
related groundborne vibration would be significant and unavoidable.
Solar Access and Shadows
Section 3.11 of the Final EIR studied the environmental impacts of the project related to
solar access and shadows. Based on City thresholds for significance related to shade
and shadows, a project impact would be considered significant if shadow - sensitive uses
would be shaded by project - related structures for more than 3 hours between the hours
of 9:00 AM and 3:00 PM between late October and early April (winter solstice), or for
more than 4 hours between the hours of 9:00 AM and 5:00 PM between early April and
late October (summer solstice).
The proposed project would result in significant shading of the residences at the
Luxe @1548 building to the northeast of the project site. This building contains
residences and associated balconies that face the proposed hotel, which would be
shaded for greater than three hours during winter. In order to eliminate the shade and
shadows impact on the Luxe @1548 building, step backs of at least nine feet would be
required on the fifth and sixth floors along the northwest portion of the building as well
as relocation of both stairwells at least 20 feet further south from the Luxe @1548
building. Alternately, elimination of the sixth floor of the Hampton Inn and Suites would
reduce this impact to less than significant. While such modifications would eliminate
shadow impacts, they would potentially result in building code conformity issues (i.e.,
appropriate distances from fire stairwells), major design complications due to relocation
of the stairwells that would require significant changes to the overall building design,
and substantial losses in useable floor space. Because full mitigation of these impacts
would require such major design changes that are more akin to a project alternative,
shadow impacts would remain significant and unavoidable.
34
Transportation/Traffic
Section 3.12 of the Final EIR studied the environmental impacts of the project related to
transportation and traffic. A total of 25 intersections were studied within the area, and
given the project site's location within the highly commercialized Downtown area,
neighborhood street segment analysis was not necessary for this project. Three project
scenarios were fully analyzed for traffic impacts which included 1) the development of
the Hampton Inn & Suites only; 2) the development of the Courtyard by Marriott only
and; 3) development of both the Hampton Inn & Suites and the Courtyard by Marriott.
Project - generated traffic would create a significant impact at the intersection of Lincoln
Boulevard & 1 -10 Westbound Ramps /Olympic Blvd as a result of the development of
either the Hampton Inn (scenario 1), the Courtyard Marriott (scenario 2), or both hotels
(scenario 3). As discussed below, due to the lack of available feasible mitigation
measures, the impacts at this intersection would be significant and unavoidable.
Approval Year (2013) plus Project: Scenario 3: Development of Both Hotels
Under approval year conditions, after taking into account the removal of the existing
uses, the proposed hotels would be expected to generate 101 net new trips during the
weekday AM peak hours, 1121 net new trips during the weekday PM peak hours, and
150 net new trips during the weekend peak hours. Using approval year (2013) traffic
conditions as the baseline to conduct impact analysis, the project would result in a
significant traffic impact at 1 of the 25 studied intersections. The following intersection
would be impacted under City of Santa Monica significance criteria during at least one
of the analyzed peak hours:
■ Lincoln Boulevard & 1 -10 Westbound Ramps /Olympic Blvd (AM, PM, WKND
peak hour)
Mitigation Measures
Physical improvements are discussed in the EIR which could potentially reduce the
severity of the project approval and future year traffic impacts. However, these
improvements are either not scheduled or funded, or would create substantial
secondary impacts to pedestrian mobility and transit operation, and would create
potential inconsistencies with adopted City policies. As a result, the potential mitigation
35
measures described in the EIR would be infeasible. Therefore, the impact at this
intersection would be significant and unavoidable.
Future Year (2020) plus Project. Scenario 3: Development of Both Hotels
During the future year 2020 conditions, after taking into account the removal of the
existing uses and the operation of the Expo LRT, which is expected to reduce project -
generated traffic by at least 3 percent, the proposed hotels would be expected to
generate 93 net new trips during the weekday AM peak hours, 114 net new trips during
the weekday, PM peak hours and 141 net new trips during the weekend peak hours.
Using future year 2020 traffic conditions as the baseline to conduct impact analysis, the
project would result in a significant traffic impact at 4 of the 25 studied intersections. The
following intersections would be impacted under City of Santa Monica significance
criteria during at least one of the analyzed peak hours:
• 4th Street & Colorado Avenue (WKND peak hour)
■ 5th Street & Colorado Avenue (PM peak hour)
• Lincoln Boulevard & Colorado Avenue (WKND peak hour)
■ Lincoln Boulevard & 1 -10 Westbound Ramps /Olympic Blvd (AM, PM, WKND
peak hour)
Mitigation Measures
Physical improvements are discussed in the EIR which could potentially reduce the
severity of the project approval and future year traffic impacts. However, these
improvements are either not scheduled or funded, or would create substantial
secondary impacts to pedestrian mobility and transit operation, and would create
potential inconsistencies with adopted City policies. As a result, the potential mitigation
measures described in the EIR would be infeasible. Therefore, the impacts at these
intersections would be significant and unavoidable.
Comments on Draft EIR
The Draft EIR was available for a 45 -day public review period, in which a total of eight
comment letters were received. A total of four letters were received from the applicant,
applicant's representatives, and their consultants, three from agencies (Caltrans, Native
American Heritage Commission, Los Angeles County Metropolitan Transportation
Authority), and one letter from the public. Comments were wide ranging but primarily
W.
focused on historic resources, economic /social issues, traffic analysis, and on project
alternatives. Responses to all comments received are included in the Final EIR.
k'
Alternatives Studied
The EIR studied five alternatives to the proposed project intended to reduce potential
adverse environmental impacts. In addition to the No Project Alternative, the following
alternatives were studied:
■ Incorporation of Midas Building Alternative (2)
■ Zoning Compliant Alternative (3)
■ Reduced Development Alternative (4)
■ Mixed -Use Development Alternative (5)
Alternative 2 - Incorporation of Midas Building Alternative
This alternative would not be applicable to this project.
Alternative 3 - Zoning Compliant Alternative
Under this alternative, the project would consist of 85 guest rooms, 4- stories and up to
56 feet in height, and a baseline floor area ratio (FAR) of 2.5. The ground floor square
footage would remain unchanged. This alternative would meet the majority of the
objectives of the proposed project, however would reduce project impacts through a
reduction of the overall height and intensity of proposed development to be compliant
with the existing Zoning Ordinance development standards for the C3 -C zoning district.
With the elimination of the upper two stories, shadow impacts are anticipated to be less
than significant. Short -term construction noise impacts (groundborne vibration) would
remain significant. Assuming construction of a total of 175 new rooms between both
hotels and a similar level of restaurant and retail development, transportation /traffic
impacts to one intersection in the Approval Year (2013) and to three intersections in the
Future Year (2020) would remain significant and unavoidable. Moreover, the decrease
in the number of rooms would likely lead to increased construction costs per room, and
a shift toward a more boutique or higher end hotel type. This would be inconsistent with
the applicant's objectives and LUCE policies to provide a moderately - priced hotel in the
Downtown.
Kfi
Alternative 4 - Reduced Development Alternative
Under the Reduced Development Alternative, the project would consist of 108 guest
rooms, 5- stories and up to 68 feet in height, and an approximate 20% reduction in floor
area (68,000 SF). The ground floor square footage would remain unchanged. This
alternative would meet most of the objectives of the proposed project, however would
incrementally reduce project impacts through a limited reduction in building height and a
slight decrease in overall permitted development. The potential impacts to solar access
and shadows would remain significant. Additionally, this alternative would still have a
significant transportation /traffic impact on one intersection under the Approval Year
(2013) condition and up to four area intersections under the Future Year (2020)
condition, (assuming construction of a total of 222 new rooms between both hotels and
a similar level of restaurant and retail development). Moreover, the decrease in the
number of rooms would likely lead to increased construction costs per room, and a shift
toward a more boutique or higher end hotel type. This would be inconsistent with LUCE
policies to provide a moderately - priced hotel in the Downtown.
Alternative 5 - Mixed -Use Development Alternative
Under the Mixed -Use Development Alternative, the project would consist of a 6 -story
mixed -use building up to 84 feet in height, consisting of approximately 11,120 SF of
ground floor retail /restaurant, with approximately 60,000 SF of office space. The
potential impacts to cultural resources, noise /construction, solar access /shadows, and
transportation /traffic would be similar to or greater compared to the proposed project.
Moreover, this alternative would be inconsistent with the applicant's objectives to
provide moderately - priced hotels in the Downtown.
Environmentally Superior Alternative
Considering that the potential impacts to solar access and shadows would be reduced
to less than significant, along with incrementally reducing project impacts to
neighborhood effects to less than significant, Alternative 3, Zoning Compliant
Alternative, would be considered the Environmentally Superior Alternative. Impacts to
transportation /traffic would also be incrementally reduced. However, pursuant to a
financial feasibility analysis prepared by the Natelson Dale Group, (Attachment E), this
Alternative was found to be financially infeasible, and therefore under the provisions of
CEQA, this alternative is not required to be considered.
38
Financial Feasibility Analysis
The Natelson Dale Group performed a financial feasibility analysis (table 2 of VEA) that
analyzed the proposed project, and the zoning compliant alternative. The analysis
studied both projects under two scenarios that consisted of projects that would provide
employment wages at either market -rate or comparable union - rates. Comparing
supportable land values for each alternative to prevailing sales prices for comparable
properties in the area, the study found that the zoning compliant alternative to be
financially infeasible. Furthermore, the study concluded that the reduced project
alternative may be feasible under market - wages, however infeasible under the union
wage scenario. The study indicates the proposed project would be feasible with
market - wages, however slightly under the feasibility threshold under the union -wage
scenario.
Statement of Overriding Considerations
Due to the significant and unavoidable impacts of the project with respect to
Construction Effects (Groundborne Vibration), Solar Access and Shadows, and
Transportation/Traffic (intersections), approval of the proposed project will require the
Council to adopt a Statement of Overriding Considerations, determining that the
community benefits of the proposed project would outweigh the potential impacts to the
area identified in the EIR. The benefits of the proposed project have been discussed
earlier in this staff report, and would be incorporated into the Council resolution adopting
the Statement of Overriding Considerations and Mitigation Monitoring Program.
Community Meeting and Public Input
A community meeting to review the concept plans was held on October 27, 2011 at the
Santa Monica Main Public Library, with 15 members of the public in attendance. An
informative discussion was held as the participants had questions regarding the project
and review process. The participants had questions related to the light rail's impact on
Colorado Avenue and the proposed project, and whether there would be sufficient
parking for guests or surplus parking for the public. The community expressed
concerns with the existing traffic congestion along this portion of Colorado Avenue
adjacent to the project site. Other comments included the possible use of parking off-
39
site and use of hotel shuttles to reduce parking demand and trips, and managing hotel
guest arrival times during off -peak hours to reduce congestion.
Financial Impacts & Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action. Staff will return to Council if specific actions are required in the
future. Based on the fiscal impact analysis provided by the Natelson Dale Group,
approval of the proposed project would result in an additional $1.5 million in annual
revenues to the General Fund in the form of additional sales tax, transient occupancy
tax, property tax, utility user's tax, and business license tax.
Additionally, the project would provide one -time contributions in FY 2014 -15 in the form
of community benefits that the applicant will be required to provide pursuant to the
proposed development agreement:
• Colorado Esplanade contribution in the amount of $294,000 to be deposited in
account 04267.410060.
• Transportation Impact contribution in the amount of $69,343 to be deposited in
account 04267.402050.
® Parks and Recreation contribution in the amount of $169,657 to be deposited in
account 045551.410070.
Prepared by: Steve Mizokami, Associate Planner
Approved:
Forwarded to Council:
t)�2nj �D C
David Martin, Director Rod Gould
Planning and Community Development City Manager
40
Attachments
A. Public Notification
B. Development Agreement Findings
C. Resolution Certifying the Environmental Impact Report
D. Resolution Adopting the Statement of Overriding Considerations and Mitigation
Monitoring Plan
E. Ordinance Adopting Development Agreement 11 DEV009
F. Proposed Development Agreement
G. The Natelson Dale Group Economic Analyses
H. Fehr & Peers Parking Demand Study
I. Planning Commission & City Council Float -Up Comments
J. Final EIR and Mitigation Monitoring Program
K. Project Plans
Sign posting and mailed notices are not required by Code for this initial discussion
procedure, however, notice of the public hearing was mailed to all owners and
residential and commercial tenants of property located within a (1,000 foot) radius of the
project and published in the Santa Monica Daily Press at least ten consecutive calendar
days prior to the hearing.
On October 16, 2013, the applicant was notified of the subject hearing date.
The applicant provided the following information regarding attempts to contact
area property owners, residents, and recognized neighborhood associations:
Community Meetings: A community meeting was held at the Santa Monica Main
Public Library on October 27, 2011 to discuss the project.
Fifteen members of the public were in attendance.
M
NOTICE OF A PUBLIC HEARING
SUBJECT: Development Agreement 11 -009
Environmental Impact Report 12 -001
501 Colorado Avenue
APPLICANT: OTO Development
PROPERTY OWNER: 501 Colorado Investors, LLC
A public hearing will be held by the City Council to consider the following request:
The applicant is requesting City Council approval of a Development Agreement, Final
Environmental Impact Report, and Statement of Overriding Considerations to allow a
new 6 -story hotel development project (Hampton Inn & Suites) consisting of 143 guest
rooms, a total of 78,750 SF of floor area, and a two -level subterranean parking garage
providing between 78 -108 parking spaces. The project site consists of 22,500 SF and
is located on the northeast corner of 5th Street and Colorado Avenue in the downtown.
As a part of the Development Agreement, the proposed project would provide certain
community benefits.
DATE /TIME: TUESDAY, NOVEMBER 12, 2013, AT 6:30 PM
LOCATION: City Council Chambers, Second Floor
Santa Monica City Hall
1685 Main Street, Santa Monica, California
HOW TO COMMENT
The City of Santa Monica encourages public comment. You may comment at the City
Council public hearing, or by writing a letter. Written information will be given to the City
Council at the meeting.
Address your letters to: Steve Mizokami, Associate Planner
Re: 11 DEV -009
City Planning Division
1685 Main Street, Room 212
Santa Monica, CA 90401
MORE INFORMATION
If you want more information about this project or wish to review the project file, please
contact Steve Mizokami at (310) 458 -8341, or by e-mail at steve.mizokami@,Lmgov.net.
The Zoning Ordinance is available at the Planning Counter during business hours and
on the City's web site at www.smgov.net.
The meeting facility is wheelchair accessible. For disability - related accommodations,
please contact (310) 458 -8341 or (310) 458 -8696 TTY at least 72 hours in advance. All
written materials are available in alternate format upon request. Santa Monica Big Blue
Bus Lines numbered #1, #2, #3, Rapid 3, #7 and #9 serve City Hall and the Civic
Center..
42
Pursuant to California Government Code Section 65009(b), if this matter is
subsequently challenged in Court, the challenge may be limited to only those issues
raised at the public hearing described in this notice, or in written correspondence
delivered to the City of Santa Monica at, or prior to, the public hearing.
ESPANOL
Esto es una noticia de una audiencia publica para revisar applicaci6nes proponiendo
desarrollo en Santa Monica. Si deseas mas informaci6n, favor de Ilamar a Carmen
Gutierrez en la Divisi6n de Planificaci6n al numero (310) 458 -8341.
APPROVED AS TO FORM:
Amanda Schachter
Planning Manager
43
L
Development Agreement Findings
DEVELOPMENT AGREEMENT FINDINGS
1. The proposed Development Agreement is consistent with the objectives, policies,
general land uses and programs specified in the general plan and any applicable
specific plan. Specifically, the project is consistent with LUCE Policy D7.1 of the
Downtown District, in that the proposed project balances a broad mix of uses that
creates dynamic activity in both the daytime and evening hours including hotel
uses in the Downtown. The project is also consistent with LUCE Policy D1.4 of
the Downtown District which encourages new hotels and other visitor - serving
uses in the Downtown. Goal D8 seeks to ensure that new buildings in the
Downtown District contribute to the pedestrian character of the Downtown and
are compatible in scale with existing buildings. Policies to implement this goal
include D8.1 which states to locate primary facades of buildings fronting the
street at the property line or back side of the sidewalk, however to create a lively
streetscape with places for people to socialize. Moreover, D8.6 states to limit
ground floor uses mostly to active retail. Goal D9 seeks to enhance the quality
and character of the streetscape and urban pattern in the Downtown. Such
policies include D9.1 which states to design streets as integral parts of the urban
open space in the Downtown by encouraging strategies such as widening
sidewalks in key locations, and D9.4 which states to locate active retail space on
a pedestrian street facing the sidewalk at the ground floor. The ground floor
design is consistent with these goals, providing a ground floor setback of 20 feet
along Colorado Avenue and 15 feet along 5th Street as contemplated in the
future Downtown Specific Plan, that effectively widens the sidewalk for adequate
pedestrian accessibility, and would allow for outdoor dining opportunities that
would activate the street. Overall, the proposed project is consistent with these
LUCE goals and policies for the downtown.
2. The proposed Development Agreement is compatible with the uses authorized in
the district in which the real property is located, in that the subject property is
located in the Downtown C3 -C District that permits hotels and commercial uses.
The proposed Development Agreement is consistent with LUCE Policy D7.1 of
the Downtown District in that the proposed hotel project balances a broad mix of
uses that creates dynamic activity in both the daytime and evening hours
including hotel and restaurant/commercial uses in the Downtown. Consistent
with Policy D7.2 the project encourages local- serving uses that are an integral
part of complete neighborhoods and support an overall trip reduction strategy.
The proposed TDM plan seeks to reduce the overall parking demand and
vehicular trips within the area by providing bicycle facilities for hotel guests and
employees, and provisions for transit subsidies for hotel and commercial retail
employees.
3. The proposed Development Agreement is in conformity with the public necessity,
public convenience, general welfare, and good land use practices, in that it
allows for the redevelopment of existing, underutilize properties with a hotel
44
project that is compliant with the new Land Use and Circulation Element vision
for the area. The proposed project provides a 136 guest room hotel and will
feature ground floor pedestrian and transit - oriented uses, and would provide
community benefits including, but not limited to, a Colorado Esplanade
contribution, a Transportation Impact Contribution, and a TDM plan.
4. The proposed Development Agreement will not be detrimental to the health,
safety and general welfare, in that the agreement would allow for the
redevelopment of existing, underutilized parcels with a use that is compliant with
the new Land Use and Circulation Element vision for the area. The proposed
project will be located in an urbanized area and is consistent with other similar
improvements in the area, and does not have the potential to disrupt the urban
environment or cause health or safety problems. The proposed project provides
a 136 guest room hotel and will feature ground floor pedestrian- oriented uses,
and would provide community benefits including but not limited to, a Colorado
Esplanade contribution, a Transportation Impact Contribution, and a TDM plan.
5. The proposed Development Agreement will not adversely affect the orderly
development of the property, in that the Development Agreement is contingent
upon the review and approval of a specific site plan consistent with recognized
urban design principles that reflect the goals and policies of the City of Santa
Monica which were established through a long range planning process and are
reflected in the recently adopted update of the Land Use and Circulation Element
of the City's General Plan.
6. The proposed Development Agreement will have a positive fiscal impact on the
City, in that the ground floor commercial uses are subject to City business license
taxes. The City will incur no cost associated with the implementation of the
applicant's Transportation Demand Management plan and the associated
community benefit of reduced vehicle trips and parking demand in the area.
Furthermore, if the fee or monetary contribution options required in SMMC
Sections 9.04.10.20 and 9.72 for cultural arts and child care respectively are
exercised, the payment of fees related to cultural arts (approximately $157,500)
and child care (2012 -2013 rate: $250,425) will be required to obtain project
approval. Moreover, the project would provide one -time contributions in the form
of community benefits that the applicant will be required to provide pursuant to
the proposed Development Agreement, including but not limited to, a
transportation infrastructure contribution of $69,343, a Colorado Esplanade
contribution of $294,000, a Parks & Recreation contribution of $196,657, an
Historic Preservation contribution of $25,000, and a Hospitality and Training
Academy contribution of $50,000. For these reasons, the project will have a
positive fiscal impact on the City.
.45
Resolution Certifying the Environmental Impact Report
M
City Council Report - City of Santa Monica
EIR Certification Resolution
City Council Meeting: November 12, 2013
RESOLUTION NO.
(City Council Series)
Santa Monica, California
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA
CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT
ON THE 5TH AND COLORADO HOTEL PROJECTS
Pagel of 3
WHEREAS, a Notice of Preparation of an Environmental Impact Report for the 5th
and Colorado Hotel Projects was issued on April 30, 2012; and
WHEREAS, a Notice of Completion of a Draft Environmental Impact Report was
published on December 13, 2012 in compliance with the California Environmental Quality
Act and the City of Santa Monica CEQA Guidelines; and
WHEREAS, the Draft Environmental Impact Report was circulated for a 45 -day period
which ended on January 28, 2013; and
WHEREAS, the Draft EIR analyzed the potential development of the Courtyard by
Marriott project at 1554 5th Street and the Hampton Inn & Suites at 501 Colorado Avenue;
and
WHEREAS, the Final EIR was published on May 2013; and
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WHEREAS, on October 16, 2013, the Planning Commission reviewed and considered
the Final EIR and recommended that the City Council certify it; and
WHEREAS, the City Council has reviewed and considered the contents of the Final
EIR in its decision- making process; and
WHEREAS, on November 12, 2013 the City Council, as Lead City Agency, reviewed
the Final EIR;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council has reviewed and considered the information
contained in the Final Environmental Impact Report on the 5th and Colorado Hotel projects
( "Final EIR ") prior to acting on the projects.
SECTION 2. The City Council certifies that the Final EIR for the projects was
presented to the City Council, that the Final EIR for the projects was completed in full
compliance with State law and City CEQA Guidelines, that there was adequate public review
of the Draft Environmental Impact Report, that it has considered all comments on the Draft
Environmental Impact Report and responses to comments, that the Final Environmental
Impact Report adequately discusses all significant environmental issues, that the Final
Environmental Impact Report reflects the independent judgement and analysis of the City,
and that the City Council has reviewed and considered the information contained in the Final
Environmental Impact Report in its decision - making process prior to acting on the projects.
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SECTION 3. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
MARSHA J. MOUTRIE
City Attorney
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Resolution Adopting the Statement of Overriding Considerations and
Mitigation Monitoring Plan
47
City Council Report - City of Santa Monica Page 1 of 20
RESOLUTION NO.
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA MAKING FINDINGS
NECESSARY TO APPROVE THE HAMPTON INN AND SUITES PROJECT,
ADOPTING A STATEMENT OF OVERRIDING CONSIDERATION,
AND MITIGATION MONITORING PLAN
WHEREAS, a Draft Environmental Impact Report was prepared in December 2012 and
a Final Environmental Impact Report (Final EIR) was prepared in May 2013 which analyzes the
environmental effects of the Hampton Inn and Suites Project; and
WHEREAS, the Santa Monica City Council, as Lead City Agency, reviewed the Final
Environmental Impact Report in full compliance with State and City CEQA Guidelines; and
WHEREAS, on November 12, 2013, the City Council certified that the Final
Environmental Impact Report was prepared in full compliance with State and City CEQA
Guidelines,
NOW, THEREFOREJHE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1, Consistent with Article IV, Section 12 of the City of Santa Monica CEQA
Guidelines and Section 15128 of the State CEQA Guidelines, the Initial Study /Notice of
Preparation determined that the following environmental impacts were not considered
potentially significant and were not addressed further in the Final Environmental Impact
Report: Agriculture and Forestry Resources, Biological Resources, Hydrology/Water Quality,
Mineral Resources, Population /Housing, Public Services, Recreation, and Utilities /Service
Systems.
SECTION 2. Consistent with Article VI, Section 12 of the City of Santa Monica CEQA
Guidelines and Section 15091 and 15092 of the State CEQA Guidelines, and as detailed in the
Final EIR, the City Council finds that impacts would be less than significant without mitigation
for aesthetics, air quality (operational), greenhouse gas emissions, land use, and noise
(operational).
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SECTION 3. Consistent with Article VI, Section 12 of the City of Santa Monica CEQA
Guidelines and Sections 15091 and 15092 of the State of California CEQA Guidelines, the City
Council finds that most impacts resulting from the proposed project can be reduced to an
acceptable level. More specifically, significant environmental effects as identified below can
feasibly be avoided and have been eliminated or substantially lessened to less than significant.
(a) The Final EIR determined that without mitigation the proposed project could result
in significant adverse impacts as a result of construction - related air quality effects. Consistent
with Article VI, Section 12 of the City CEQA Guidelines and Section 15091 and 15092 of the
State of California CEQA Guidelines and as detailed in the Final EIR, the City Council finds that
the following mitigation measures have been required for the project that will avoid or reduce
most of the project's construction - related air quality impacts to below levels of significance:
AQ -2a Air Quality Management Plan. An Air Quality Management Plan for project
construction shall be prepared and approved by the City. The Plan would address air
quality impacts and outline measures that would be used to reduce impacts. Measures
would include:
• Fugitive Dust Control. All construction shall comply with the requirements of
SCAQMD Rule 403, Fugitive Dust, which requires the implementation of
Reasonably Available Control Measures (RACM) for all fugitive dust sources,
and the Air Quality Management Plan (AQMP), which identifies Best Available
Control Measures (BACM) and Best Available Control Technologies (BACT) for
area sources and point sources, respectively.
• Staging Area. Construction contractors shall establish an on -site construction
equipment staging area and construction worker parking lot, located on either
paved surfaces or unpaved surfaces subjected to soil stabilization treatments.
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Control access to public roadways by limiting curb cuts/ driveways to minimize
project construction impacts upon roadway traffic operations.
• Non- Vehicular Equipment Engines. Construction contractors shall properly
maintain non - vehicular equipment engines to minimize the volume of exhaust
emissions.
• Electricity. Construction contractors shall use electricity primarily from power
poles, rather than temporary diesel or gasoline powered generators.
• Alternative Fuel Sources. To the extent feasible, construction contractors shall
use on -site mobile equipment powered by alternative fuel sources (i.e., methanol,
natural gas, propane or butane). Expected use of non - alternative fuels shall be
described within the Air Quality Management Plan.
• Inspection of Equipment. Construction contractors shall inspect construction
equipment prior to leaving the sites and wash off loose dirt with wheel washers,
as necessary.
• Ridesharing/ Shuttle. Construction contractors shall provide encourage
ridesharing or provide shuttle service for parking by construction workers in
satellite parking lots, as needed.
• PMIO Reduction Measures for Grading Activities. Particulate matter reduction
measures from the SCAQMD shall be applied to all grading activities occurring
on the project sites throughout the construction phase. These shall include:
• Apply water every 3 hours to disturbed areas within the sites;
• Require minimum soil moisture of 12% for earthmoving by use of a
moveable sprinkler system or a water truck;
o Replace ground cover in disturbed areas as quickly as possible. If
disturbed graded areas remain inactive for greater than four days, non-
toxic soil stabilizers shallbe applied; and
o All trucks hauling dirt, sand, soil, or other loose materials shall be
tarped with a fabric cover and maintain a freeboard height of 12 inches.
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• PM10 Reduction Measures for Haul Road Vehicle Activity. Particulate. matter
reduction measures from the SCAQMD shall be applied to all haul road vehicle
activities occurring on the project sites throughout the construction phase. These
shall include:
• Limit on -site vehicle;
• Install pipe -grid trackout - control device to reduce mud/ dirt trackout
from exit routes;
o Replace ground cover in disturbed areas as quickly as possible - if
disturbed graded areas remain inactive for greater than four days, non-
toxic soil stabilizers shall be applied; and
o Apply chemical dust suppressant annually to unpaved parking
areas.
• PM10 Reduction Measures for Demolition Activity. Particulate matter reduction
measures from the SCAQMD shall be applied to all demolition activities occurring
on the project sites throughout the construction phase. These shall include:
o Apply water every 4 hours to the area within 100 feet of a structure being
demolished, to reduce vehicle trackout;
o Apply water to disturbed soils after demolition is completed or at the end of
each day of cleanup;
o Prohibit demolition activities when wind speeds exceed 25 miles per hour;
and
o Apply dust suppressants (e.g. polymer emulsion) to disturbed areas upon
completion of demolition.
• Street Sweeping for Mud /dirt Trackout onto Local Streets. Implement a street
sweeping program with Rule 1186 compliant PMio efficient vacuum units (14 -day
frequency).
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(b) The Final EIR determined that without mitigation the proposed project could result
in significant adverse impacts to cultural resources. Consistent with Article VI, Section 12 of
the City CEQA Guidelines and Section 15091 and 15092 of the State of California CEQA
Guidelines and as detailed in the Final EIR, the City Council finds that the following mitigation
measures have been required for the project that will avoid or reduce most of the project's
cultural resources impacts to below levels of significance:
MM CUL -2a If archaeological resources are encountered during implementation of the
proposed projects, ground- disturbing activities shall temporarily be redirected from the
vicinity of the find. The Applicant shall immediately notify a qualified archaeologist of the
find and coordinate with the archaeologist as to the immediate treatment of the find until
a proper site visit and evaluation is made by the archaeologist. The archaeologist shall
be allowed to temporarily divert or redirect grading or excavation activities in the vicinity
in order to make an evaluation of the find and determine appropriate treatment.
Treatment may include implementation of archaeological data recovery excavations to
remove the resource from the project area or preservation in place. The archaeologist
shall prepare a final report about the find and shall be submitted by the Applicant to the
lead agency, the South Central Coastal Information Center, and representatives of other
appropriate or concerned agencies to signify the satisfactory completion of the project
and required mitigation measures. The report shall include documentation and
interpretation of the resources recovered including evaluation of the find's eligibility for
listing in the California Register of Historic Places. The landowner, in consultation with
the archaeologist and the lead agency, shall designate repositories in the event that
archaeological material is recovered. The archaeologist shall also determine the need
for archaeological monitoring for any ground- disturbing activities thereafter.
MM CUL -2b If human remains are encountered unexpectedly during implementation of
the proposed projects, State Health and Safety Code Section 7050.5 requires that no
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further disturbance shall occur until the County Coroner has made the necessary
findings as to origin and disposition pursuant to PRC Section 5097.98. If the remains are
determined to be of Native American descent, the coroner has 24 hours to notify the
Native American Heritage Commission (NAHC). The NAHC shall then identify the
person(s) thought to be the Most Likely Descendent (MLD). The MLD may, with the
permission of the land owner, or his or her authorized representative, inspect the site of
the discovery of the Native American remains and may recommend to the owner or the
person responsible for the excavation work means for treating or disposing, with
appropriate dignity, the human remains and any associated grave goods. The MLD shall
complete their inspection and make their recommendation within 48 hours of being
granted access by the land owner to inspect the discovery. The recommendation may
include the scientific removal and nondestructive analysis of human remains and items
associated with Native American burials. Upon the discovery of the Native American
remains, the landowner shall ensure that the immediate vicinity, according to generally
accepted cultural or archaeological standards or practices, where the Native American
human remains are located, is not damaged or disturbed by further development activity
until the landowner has discussed and conferred, as prescribed in this mitigation
measure, with the MLD regarding their recommendations, if applicable, taking into
account the possibility of multiple human remains. The landowner shall discuss and
confer with the descendants all reasonable options regarding the descendants'
preferences for treatment.
Whenever the NAHC is unable to identify a MLD, or the MLD identified fails to make a
recommendation, or the landowner or his or her authorized representative rejects the
recommendation of the descendants and the mediation provided for in Subdivision (k) of
Section 5097.94, if invoked, fails to provide measures acceptable to the landowner, the
landowner or his or her authorized representative shall inter the human remains and
items associated with Native American human remains with appropriate dignity on the
property in a location not subject to further and future subsurface disturbance.
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MM CUL -3a A qualified paleontologist shall attend a pre - grading /excavation meeting
and develop a paleontological monitoring program for excavations into older Quaternary
Alluvium deposits. A qualified paleontologist is defined as a paleontologist meeting the
criteria established by the Society for Vertebrate Paleontology. The qualified
paleontologist shall supervise a paleontological monitor who shall be present at such
times as required by the paleontologist during. construction excavations into native soils
associated with older Quaternary Alluvium deposits. Monitoring shall consist of visually
inspecting fresh exposures of rock for larger fossil remains and, where appropriate,
collecting wet or dry screened sediment samples of promising horizons for smaller fossil
remains. The frequency of monitoring inspections shall be determined by the
paleontologist and shall be based on the rate of excavation and grading activities, the
materials being excavated, and the depth of excavation, and if found, the abundance
and type of fossils encountered.
MM CUL -3b If a potential fossil is found, the paleontological monitor shall be allowed to
temporarily divert or redirect grading and excavation activities in the area of the exposed
fossil to facilitate evaluation and, if necessary, salvage. At the Paleontologist's discretion
and to reduce any construction delay, the grading and excavation contractor shall assist
in removing rock samples for initial processing. Any fossils encountered and recovered
shall be prepared to the point of identification and catalogued before they are donated to
their final repository. Any fossils collected shall be donated to a public, non - profit
institution with a research interest in the materials, such as the Natural History Museum
of Los Angeles County. Accompanying notes, maps, and photographs shall also be filed
at the repository.
MM CUL -3c The paleontologist shall prepare a report summarizing the results of the
monitoring and salvaging efforts, the methodology used in these efforts, as well as a
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description of the fossils collected and their significance. The report shall be submitted
by the Applicant to the lead agency, the Natural History Museum of Los Angeles
County, and representatives of other appropriate or concerned agencies to signify the
satisfactory completion of the proposed projects and required mitigation measures.
(c) The Final EIR determined that without mitigation the proposed project could result
in significant adverse impacts related to geology /soils. Consistent with Article VI, Section 12 of
the City CEQA Guidelines and Section 15091 and 15092 of the State of California CEQA
Guidelines and as detailed in the Final EIR, the City Council finds that the following mitigation
measures have been required for the project that will avoid or reduce most of the project's
impacts related to geology /soils to below levels of significance:
MM GEO -1 The foundation should be designed to distribute the building loads uniformly
onto the supporting subgrade. By designing a relatively stiff mat, the settlement of the
structure will be relatively uniform. The foundation should be designed to be sufficiently
rigid to prevent the introduction of excess stresses in the superstructure above the
foundation. Concrete slab -on -grade floors should be underlain by a water vapor
retarder. The water vapor retarder should consist of a vapor retarder sheeting underlain
by a minimum of 3 inches of compacted, clean, gravel of 0.75 inch maximum size. The
granular fill should consist of damp clean sand with at least 10 to 30 percent of the sand
passing the 100 sieve. The sand should be free of clay, silt, or organic material.
Concrete slabs should be reinforced with at least No. 3 reinforcing bars, places at 18
inches on center in each direction within the slabs middle third.
MM GEO -2a The means and methods of installation, design and implementation of the
shoring system shall be the responsibility of a licensed shoring engineer and general
contractor who shall satisfy the requirements of City of Santa Monica Building& Safety
and Public Works officials as well as applicable codes and laws. Whenever excavation
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is made adjacent to existing streets, utilities and structures, there is the potential for
movement. The existing structures should be inspected and documented to preclude
claims for damage or settlement that are not associated with the construction of the
planned development. A monitoring program should be established so excessive
movement is detected early. The monitoring program should include optical surveying of
the shoring and adjacent streets and buildings to detect any horizontal or vertical
movement.
(d) The Final EIR determined that without mitigation the proposed project could result
in significant adverse impacts related to hazards /hazardous materials. Consistent with Article
Vl, Section 12 of the City CEQA Guidelines and Section 15091 and 15092 of the State of
California CEQA Guidelines and as detailed in the Final EIR, the City Council finds that the
following mitigation measures have been required for the project that will avoid or reduce most
of the project's impacts related to hazards /hazardous materials to below levels of significance:
MM HAZ -2a Prior to any the issuance of a demolition permit, the contractor shall follow
all applicable local, state and federal codes and regulations related to the treatment,
handling, and disposal of ACM and LBP.
MM HAZ -2b Prior to the issuance of a demolition permit, additional subsurface sampling
of soil /bedrock and groundwater shall be conducted to assess potential releases
associated with the listed former land uses and the potential migration of contaminants
onto the project site. The analytical suite selected shall be consistent with those uses,
and shall include applicable analytical methods for appropriate waste characterization
and disposal. The sampling strategy shall take into account the locations of potential
source areas, and the anticipated lateral and vertical distribution of contaminants in soil
and /or groundwater. The results of the investigation shall be documented in a report that
is signed by a qualified environmental specialist (e.g., California Professional Geologist,
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a licensed Professional Engineer, or similarly qualified individual). The report shall
include recommendations based upon the findings for additional
investigation /remediation if contaminants are detected above applicable screening
levels (e.g., excavate and dispose, groundwater and /or soil vapor extraction, or in situ
bioremediation).
MM HAZ -2c If remediation for contaminated soils is required, all remediation activities
shall be accomplished in a manner that reduces risk to below applicable standards and
the need for remediation shall be completed prior to beginning construction. Closure
report or other reports regarding remediation activities of contaminated soil shall be
submitted to DTSC or the appropriate governmental agency for review and approval
upon completion of remediation actions. If regulatory governmental agencies determine
that construction of the projects would interfere with necessary remediation, construction
shall be postponed as necessary to allow for adequate remediation.
(e) The Final EIR determined that without mitigation the proposed project could result
in significant adverse impacts related to construction - related noise effects. Consistent with
Article VI, Section 12 of the City CEQA Guidelines and Section 15091 and 15092 of the State
of California CEQA Guidelines and as detailed in the Final EIR, the City Council finds that the
following mitigation measures have been required for the project that will avoid or reduce most
of the project's impacts related to construction - related noise effects to below levels of
significance:
MM NOI -1a Construction Noise Management Plan. A Construction Noise Management
Plan shall be prepared and approved by the City. The Plan would address noise and
vibration impacts and outline measures that would be used to reduce impacts.
Measures would include:
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• To the extent that they exceed applicable construction noise limits, excavation,
foundation - laying, and conditioning activities shall be restricted to between the hours of
10:00 a.m. and 3:00 p.m., Monday through Friday, in accordance with Section 4.12.110
(d) of the Santa Monica Municipal Code.
• The Applicant's construction contracts shall require implementation of the
following construction best management practices (BMPs) by all construction
contractors and subcontractors working in or around the project sites to reduce
construction noise levels:
o The Applicant and its contractors and subcontractors shall ensure that
construction equipment is properly muffled according to manufactures specifications or
as required by the City's Department of Building and Safety, whichever is the more
stringent.
o The Applicant and its contractors and subcontractors shall place noise - generating
construction equipment and locate construction staging areas away from sensitive uses,
where feasible, to the satisfaction of the Department of Building and Safety.
o The Applicant and its contractors and subcontractors shall implement noise
attenuation measures which may include, but are not limited to, noise barriers or noise
blankets to the satisfaction of the City's Department of Building and Safety.
• The Applicant's contracts with its construction contractors and subcontractors
shall include the requirement that construction staging areas, construction worker
parking and the operation of earthmoving equipment within the project sites, are located
as far away from vibration- and noise - sensitive sites as possible. Contract provisions
incorporating the above requirements shall be included as part of the projects'
construction documents, which shall be reviewed and approved by the City.
• The Applicant shall require by contract specifications that heavily loaded trucks
used during construction shall be routed away from residential streets to the extent
possible. Contract specifications shall be included in the proposed projects' construction
documents, which shall be reviewed by the City prior to issuance of a grading permit.
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• Meetings shall be coordinated with the management of neighboring buildings
such as Step Up on Fifth, Luxe @ 1548, Luxe @ 1539, Silvercrest Retirement Home,
and the Colorado Court Building to seek solutions to minimize noise impacts.
Additionally, neighboring residents would be notified of the construction schedule and
upcoming high level noise events.
MM N0I -2a If project construction uses pile driving or vibratory techniques for
foundation construction and construction of the Expo LRT has progressed to the point
that infrastructure is in place that may be subject to damage from vibration, the Applicant
shall install surface vibration monitors to detect vibrations that may affect future
operation of the trains. The details of ,the placement and reporting of the vibration
monitors shall be developed in coordination with the Exposition Construction Authority
and Los Angeles County Metropolitan Transportation Authority.
(f) The Final EIR determined that without mitigation the proposed project could result
in significant adverse impacts related to construction - related transportation /traffic effects.
Consistent with Article VI, Section 12 of the City CEQA Guidelines and Section 15091 and
15092 of the State of California CEQA Guidelines and as detailed in the Final EIR, the City
Council finds that the following mitigation measures have been required for the project that will
avoid or reduce most of the project's impacts related to construction - related
transportation /traffic effects to below levels of significance:
MM T -1a The Applicant shall prepare, implement and maintain a Construction Impact
Mitigation Plan for review and approval prior to issuance of a building permit to address
manage traffic during construction and shall be designed to:
• Prevent traffic impacts on the surrounding roadway network
e Minimize parking impacts both to public parking and access to private parking to
the greatest extent practicable
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• Ensure safety for both those constructing the project and the surrounding
community
• Prevent substantial truck traffic through residential neighborhoods
The Construction Impact Mitigation Plan shall be subject to review and approval by the
following City departments: Public Works, Fire, Planning and Community Development,
and Police to ensure that the Plan has been designed in accordance with this mitigation
measure. This review shall occur prior to issuance of grading or building permits. It shall,
at a minimum, include the following:
Ongoing Requirements throughout the Duration of Construction
• A detailed Construction Impact Mitigation Plan for work zones shall be
maintained. At a minimum, this shall include parking and travel lane
configurations; warning, regulatory, guide, and directional signage; and area
sidewalks, bicycle lanes, and parking lanes. The plan shall include specific
information regarding the project's construction activities that may disrupt normal
pedestrian and traffic flow and the measures to address these disruptions. Such
plans shall be reviewed and approved by the Strategic and Transportation
Planning Division prior to commencement of construction and implemented in
accordance with this approval.
• Work within the public right -of -way shall be performed between 9:00 AM and 4:00
PM. This work includes dirt and demolition material hauling and construction
material delivery. Work within the public right -of -way outside of these hours shall
only be allowed after the issuance of an after -hours construction permit.
• Streets and equipment shall be cleaned in accordance with established PW
requirements.
• Trucks shall only travel on a City- approved construction route. Truck
queuing /staging shall not be allowed on Santa Monica streets. Limited queuing
may occur on the construction site itself.
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® An Applicant- funded on -site monitor shall be present to ensure safety when
Metro workers are in the immediate vicinity, or when more dangerous activities
are occurring (e.g., raising of heavy equipment to roof levels). The Plan shall
identify the activities that would prompt the presence of an on -site monitor.
® Materials and equipment shall be minimally visible to the public;, the preferred
location for materials is to be on -site, with a minimum amount of materials within
a work area in the public right -of -way, subject to a current Use of Public Property
Permit.
• Any requests for work before or after normal construction hours within the public
right -of -way shall be subject to review and approval through the After Hours
Permit process administered by the Building and Safety Division.
• Provision, of off - street parking for construction workers, which may include the
use of a remote location with shuttle transport to the site, if determined necessary
by the City of Santa Monica.
Proiect Coordination Elements That Shall Be Implemented Prior to Commencement of
Construction
• The Applicant shall advise the traveling public of impending construction activities
(e.g., information signs, portable message signs, media listing /notification, and
implementation of an approved Construction Impact Mitigation Plan).
• The Applicant shall obtain a Use of Public Property Permit, Excavation Permit,
Sewer Permit, or Oversize Load Permit, as well as any Caltrans permits required,
for any construction work requiring encroachment into public rights -of -way,
detours, or any other work within the public right -of -way.
• The Applicant shall provide timely notification of construction schedules to all
affected agencies (e.g., Big Blue Bus, Police Department, Fire Department,
Public Works Department, and Planning and Community Development
Department) and to all owners and residential and commercial tenants of
property within a radius of 500 feet.
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• The Applicant shall coordinate construction work with affected agencies in
advance of start of work. Approvals may take up to two weeks per each
submittal.
® The Applicant shall obtain Strategic and Transportation Planning Division
approval of any haul routes for earth, concrete, or construction materials and
equipment hauling.
MM T -2a The applicant shall prepare a Construction Impact Mitigation Plan and make
its best faith efforts to coordinate with the Caltrans, City of Santa Monica, Los Angeles
County Metropolitan Transportation Authority, and the Exposition Construction Authority.
The final Construction Impact Mitigation Plan for the proposed hotels shall ensure that
transportation mitigation measures set forth do not conflict with the implementation of
transportation mitigation measures associated with the Colorado Esplanade Project,
Expo LRT, and 520 Colorado Avenue Affordable Housing Project. Any changes to the
construction or building plans that may impact the Expo LRT railroad right -of -way shall
be communicated in writing by the Applicant or their contractor to Los Angeles County
Metro and the Exposition Construction Authority.
SECTION 4. Consistent with Article IV, Section 12 of the City of Santa Monica CEQA
Guidelines and Section 15091, 15092, and 15093 of the State of California CEQA Guidelines,
the City Council finds that significant adverse environmental effects in the areas of shadows,
construction - related vibration impacts, and transportation /traffic (operation) cannot feasibly be
avoided or mitigated to below a level of significance. Nevertheless, these impacts are found to
be acceptable due to overriding considerations as discussed in Section 6.
(a) The Final EIR determined that the proposed project would result in significant
adverse impacts to shadow impacts. Consistent with Article VI, Section 12 of the City of Santa
Monica CEQA Guidelines, and as detailed in the Final EIR, the City Council finds that the
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project's shadow impacts can only be mitigated through a reduction in the height and design of
the building. The following mitigation measure was included in the Final EIR to address
shadow impacts from the proposed project.
MM SHDW -1a In order to protect solar access, the Planning Commission and City
Council shall review the design (i.e., stepbacks, height, structural elements, site
coverage) of the proposed projects. For the proposed Courtyard by Marriott, redesign
measures such as additional step back of the fifth and sixth level and relocation the
proposed stairwell closest to the Step Up on Fifth Building would be required to
eliminate the shadow impact. For the Hampton Inn and Suites, relocation of both
stairwells would be required or elimination of the sixth story.
While the relocation of the stairwells or elimination of the sixty story, as described in MM
SHDW -1a, would reduce impacts to solar access and shadows to less than significant, such
modification would result in major design complications and would require significant changes
to the overall building design. Therefore, barring project redesign, shadow impacts would
remain significant and unavoidable.
(b) The Final EIR determined that the proposed project would result in significant
adverse impacts to construction - related vibration impacts. Consistent with Article VI, Section
12 of the City of Santa Monica CEQA Guidelines, and as detailed in the Final EIR in Section
3.3, the City Council finds that the proposed project would result in construction - related
vibration impacts due to the proximity of residential uses. Groundborne vibration levels have
the potential to exceed the FTA human annoyance threshold of 85 VdB for residences.
Although periods of high vibration levels would be limited to construction and would occur
primarily during excavation, shoring and construction of foundations, the vibration levels would
be disruptive to these sensitive receptors. Although Municipal Code Section 4.12.070 exempts
from regulation any vibration associated with construction, it presents a significant impact under
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CEQA. Mitigation measure MM NOI -1a could reduce these impacts somewhat by limiting the
timing of the most vibration intensive activities, locating vibration - generating equipment as far
away as feasible from existing sensitive receptors, and ensuring that haul trucks associated
with construction activities are routed away from residential streets such as 5t" Street.'
However, because the sites are adjacent to residential structures and the building envelope
extends to the site boundaries, such measures would be of only limited utility. Another potential
mitigation measure is the use of trenching; however, this option is infeasible because the
projects' building envelopes extend to the property line. Therefore, impacts to residential
sensitive receptors associated with construction vibration would be significant and unavoidable.
(c) The Final EIR determined that the proposed project would result in significant
adverse impacts from transportation /traffic (intersection delay). Consistent with Article VI,
Section 12 of the City of Santa Monica CEQA Guidelines, and as detailed in Final EIR in
Section 3.12, the City Council finds that the proposed project would result in traffic- related
impacts that would exceed significance thresholds at one intersection under Approval Year
(2013) Plus Project conditions and at four intersections under Future Year (2020) Plus Project
conditions. Physical improvements are available which could potentially reduce the severity
of the project approval and future year traffic impacts. However, these improvements are either:
• Not scheduled or funded; or,
• Would create substantial secondary impacts to pedestrian mobility and transit operation
and would create potential inconsistencies with adopted City policies.
As such, these potential mitigation measures would be infeasible. Therefore, the impacts at
Lincoln Boulevard & 1 -10 Westbound Ramps /Olympic Boulevard under Approval Year (2012)
Plus Project conditions would be significant and unavoidable, and the impacts at the four
significantly impacted intersections under Future (Year 2020) Plus Project conditions would be
significant and unavoidable.
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SECTION 5. The Final EIR found that the No Project Alternative would be
environmentally superior to the proposed project on the basis of the minimization or avoidance
of physical environmental impacts. However, the CEQA Guidelines require that if the
environmentally superior alternative is the No Project alternative, that the EIR also identify an
environmentally superior alternative among the other alternatives. Consistent with Article VI,
Section 12 of the City of Santa Monica CEQA Guidelines and Section 15091, 15092, and
15093 of the State of California CEQA Guidelines, and as detailed in Final EIR Chapter 5.0, the
City Council finds that, based on the other project alternatives, the Zoning Compliant
Alternative is the environmentally superior alternative. Under this alternative, significant and
unavoidable impact on solar access from the Hampton Inn & Suites would be reduced to less
than significant. This alternative would also incrementally reduce project impacts to
neighborhood effects from significant to less than significant. Impacts to transportation, air
quality and GHG generation would all be incrementally reduced. However, this alternative
would not fully meet the Project Objectives for providing moderately priced accommodations
downtown. In addition, the value enhancement and financial feasibility analysis prepared by
the City's economic consultant indicates that this alternative would not be financially feasible.
SECTION 6. The preceding Findings, although based primarily on conclusions in the
Final EIR, have not attempted to describe the full analysis of each environmental impact
contained in the Final EIR. Instead, the Findings incorporate by reference the discussions
and analyses in the Final EIR and supporting reference documents supporting the Final
EIR's determinations regarding the nature and severity of the impacts of the LUCE and
mitigation measures designed to address those impacts. In making these findings, the City
Council ratifies, adopts, and incorporates into these findings the analysis and explanation in
the Final EIR and ratifies, adopts, and incorporates in these findings the determinations and
conclusions of the Final EIR.
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SECTION 7. The Final EIR found that the project would result in significant unavoidable
adverse impacts in the areas of shadows, construction- related vibration, and
traffic /transportation. Consistent with Article VI, Section 13 of the City CEQA Guidelines and
Section 15093 of the State of California CEQA Guidelines, the City Council hereby makes a
Statement of Overriding Considerations and finds that the benefits of the project outweigh its
unavoidable environmental impacts based on the reasons stated below. The benefits identified
are each one, in and of themselves, sufficient to make a determination that the adverse
environmental effects are acceptable.
The applicant will provide the following project and community benefits required by Article 2.7
of the Development Agreement, which is incorporated herein by reference:
• Tax revenues, including transient occupancy tax, sales tax, property tax, business
license tax, parking tax, and utility user's tax.
• Providing new construction jobs and employment opportunities in the Hotel and
Leasable Space.
• Providing the Santa Monica - Malibu Unified School District with fee revenue for
capital improvements.
• Providing a Hotel Living Wage consistent with the City's Living Wage Ordinance.
• Ground floor open space for public use.
• Local hiring program for construction and permanent hotel and leasable space
employees. Program includes a job fair for Santa Monica residents.
• Transportation Demand Management measures, including:
• AVR of 2.0.
• Financial incentives for project employees to use public transit.
• Bicycle parking for employees, hotel guests and visitors.
• Bicycle rentals for shared use by hotel guests.
• Parking spaces reserved for car share spaces.
• Unbundled parking for commercial tenants.
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• On -site bicycle shower and locker facilities for employees.
• Building design that would achieve LEEDO Gold certification.
• Roof- mounted solar energy systems, including photovoltaic solar panels.
• Monetary contributions supporting the Colorado Esplanade, Historic Preservation,
Transportation Infrastructure, and Hospitality Training.
• "Electric Vehicle ready" parking spaces.
• Shared parking for surrounding residents and businesses.
• Paid internships for students of Santa Monica High and Santa Monica College.
• Community meeting space for non - profit or other community organizations.
SECTION 8. Consistent with Public Resources Code Section 21081.6, the City Council
adopts the Mitigation Monitoring and Reporting Program, which is included as Section 11 of the
Final EIR, to mitigate or avoid significant effects of the project on the environment, as detailed
in Sections 3 and 4 of this resolution, and to ensure compliance during project implementation.
SECTION 9. Consistent with Section 21081.6 of the California Environmental Quality
Act, the documents which constitute the record of proceedings for approving this project are
located in the Planning and Community Development Department, 1685 Main Street, Room
212, Santa Monica, California. The custodian of these documents is Steve Mizokami,
Associate Planner.
SECTION 10. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
MARSHA JONES MOUTRIE
City Attorney
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Ordinance Adopting Development Agreement 11 DEV009
M
City Council Meeting 11 -12 -13 Santa Monica, California
ORDINANCE NUMBER (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
APPROVING THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF
SANTA MONICA, A MUNICIPAL CORPORATION, PALMETTO HOSPITALITY OF
SANTA MONICA Il, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AND 501
COLORADO INVESTORS LLC, A CALIFORNIA LIMITED LIABILITY COMPANY
WHEREAS, on July 14, 2011, Palmetto Hospitality of Santa Monica Il, LLC, a
California limited liability company, hereinafter "Developer," submitted an application for
a development agreement for a mixed -use limited service hotel project that also
includes separately leasable commercial space on portions of the ground; and
WHEREAS, a Draft Environmental Impact Report, dated December 13, 2012,
and a Final Environmental Impact Report, dated May 2013, have been prepared
analyzing the environmental effects of the development agreement; and
WHEREAS, on November 12, 2013, the City Council adopted resolutions
certifying the Final Environmental Report and adopting a statement of overriding
considerations and mitigation monitoring plan; and
WHEREAS, the proposed Development Agreement is consistent with the
objectives, policies, general land uses and programs specified in the general plan and
any applicable specific plan, as described below and as detailed in the accompanying
19
City Council staff report prepared for this proposed project and exhibits thereto,
including but not limited to:
(a) The project is consistent with LUCE Policy D7.1 of the Downtown District,
in that the proposed project balances a broad mix of uses that creates dynamic activity
in both the daytime and evening hours including a 143 guest room hotel and ground
floor pedestrian- oriented and transit - oriented uses in the Downtown.
(b) The project is also consistent with LUCE Policy D1.4 of the Downtown
District, which encourages new hotels and other visitor - serving uses in the Downtown.
(c) LUCE Goal D8 of the Downtown District seeks to ensure that new
buildings in the Downtown District contribute to the pedestrian character of the
Downtown and are compatible in scale with existing buildings. Policies to implement
this goal include LUCE Policy D8.1 of the Downtown District, which seeks to locate
primary facades of buildings fronting the street at the property line or back side of the
sidewalk, to create a lively streetscape with places for people to socialize. Moreover,
LUCE Policy D8.6 of the Downtown District seeks to limit ground floor uses mostly to
active retail. LUCE Goal D9 of the Downtown District seeks to enhance the quality and
character of the streetscape and urban pattern in the Downtown. Policies to implement
this goal include LUCE Policy D9.1 of the Downtown District, which seeks to design
streets as integral parts of the urban open space in the Downtown by encouraging
strategies such as widening sidewalks in key locations. LUCE Policy D9.4 of the
Downtown District seeks to locate active retail space on a pedestrian street facing the
sidewalk at the ground floor. The ground floor design of the project provides a ground
2
floor setback of 20 feet along Colorado Avenue and 15 feet along 5th Street as
contemplated in the future Downtown Specific Plan, which effectively widens the
sidewalk for adequate pedestrian accessibility, and would allow for ground floor retail
space that would activate the street. Thus, proposed project is consistent with the
above referenced LUCE goals and policies for Downtown.
(d) Consistent with LUCE Policy D7.2 of the Downtown District, the project
encourages local- serving uses that are an integral part of complete neighborhoods and
support an overall trip reduction strategy. The proposed Transportation Demand
Management ( "TDM ") plan for the project seeks to reduce the overall parking demand
and vehicular trips within the area by providing bicycle facilities for hotel guests and
employees, and provisions for transit subsidies for hotel and commercial retail
employees.
(e) The proposed Development Agreement allows for the redevelopment of
existing, underutilize properties with a hotel project that is compliant with the new Land
Use and Circulation Element vision for the area.
(f) The Development Agreement is consistent with recognized urban design
principles that reflect the goals and policies of the City of Santa Monica which were
established through a long range planning process and are reflected in the recently
adopted update of the Land Use and Circulation Element of the City's General Plan.
(g) The proposed project would provide community benefits consistent with
Chapter 3.2 of the LUCE, including but not limited to, a Colorado Esplanade
contribution, a Transportation Impact Contribution, and a TDM plan.
3
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The Development Agreement attached hereto as Exhibit 1 and
incorporated herein by reference by and between the City of Santa Monica, a municipal
corporation, Palmetto Hospitality of Santa Monica ll, LLC, a California limited liability
company, and 501 Colorado Investors LLC, a California limited liability company, is
hereby approved.
SECTION 2. Each and every term and condition of the Development Agreement
approved in Section 1 of this Ordinance shall be and is made a part of the Santa Monica
Municipal Code and any appendices thereto. The City Council of the City of Santa
Monica finds that public necessity, public convenience, and general welfare require that
any provision of the Santa Monica Municipal Code or appendices thereto inconsistent
with the provisions of this Development Agreement, to the extent of such
inconsistencies and no further, be repealed or modified to that extent necessary to
make fully effective the provisions of this Development Agreement,
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, are hereby repealed or modified to that extent necessary
to effect the provisions of this Ordinance.
C!
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 any 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 be effective
30 days from its adoption.
APPROVED AS TO FORM:
5
1 ,
CF'1
Reference:
Attachment F
Proposed Development
Agreement
Is available at the City Clerk's
Office
Filed with Staff Report
11/12/2013, Item 7D
Within Legislative File 401 -023
Attachment I
Planning Commission & City
Council Float -Up Comments
Council Float -Up Meeting: April 10, 2012
1554 5th Street + 501 Colorado Avenue
Courtyard Marriott I Hampton Inn & Suites
City Council Comments: Float -Up Review
1. Prioritize community benefits.
2. Community Benefits: Some of the community benefits identified in the staff report
should no longer be considered "community benefits ". Must re- evaluate.
Community Benefit: Provide a Downtown Transportation and Circulation
Infrastructure Contribution to support a variety of improvements in the downtown
area, including an open space contribution. The amount should be greater than
previous amounts for downtown projects.
4. Design /Community Benefit: Provide greater /additional open space adjacent to
the sidewalk to effectively expand the existing sidewalks adjacent to the project
along Colorado Avenue, 5th Street, and at the street corners (wider sidewalks).
5. Community Benefit: Local Circulator Subsidy /Contribution: Consider providing
funding resource for a local circulator (such as the Tide Ride) within the
Downtown.
6. Community Benefit: Local Hiring Provision: Provide a local hiring provision for
employees.
7. Living Wage: Provide a living wage for hotel employees.
8. Health Care: Health care details must be provided, with greater health care
benefits for hotel employees:
Valet Parking /Drop -Off Operations: Provide valet and drop -off operations on
subterranean garage level to avoid vehicle queuing onto the street /sidewalk
and to improve the street experience (minimize autocentric design).
10. TDM Plan: Metro /Bus Passes: Provide metro /bus passes for employees (on- going)
to encourage the use of public transportation and reduce vehicular trips. The
rate of subsidy, whether 100% or "reduced" to be negotiated. Council
recommended either free or slightly reduced passes (deep subsidy).
11. TDM Plan: Metro /Bus Passes: Provide metro /bus passes for hotel guests (on- going)
to encourage the use of public transportation and reduce vehicular trips. The
rate of subsidy to be negotiated.
12. TDM Plan: Flex Car /Car Sharing: Provide parking spaces designated for car
sharing program, and initiate car sharing program for hotel guests /public.
13. Design: Enhance the facade designs for the elevations along the north property
lines (adjacent to the Step -Up building and Fred Segal park lot) for both projects.
14. Use: Provide ground floor retail /service component for both hotels to activate
the street. The type of retail /service use should cater to /support future light rail
passengers and esplanade pedestrians such as a cafe, coffee, food, drink,
media, etc.
15. Courtyard Marriott Driveway Access: Due to future light rail along Colorado
Avenue and anticipated growth of pedestrian activity, the vehicular driveway
should be relocated from Colorado Avenue to 5th Street.
16. Site Design: Ensure that the ground floor design does not impact and embraces
the Bike Action Plan's 4th Street bike paths.
17. Design: Reduce the auto - centric design.
18. Design /Operations: Reduce levels of energy consumption of both hotels.
Consider methods of water reduction /recycling. Proactively research other
hotels in Santa Monica regarding sustainable operations /methods.
19. Design: Project shopld increase water efficiency, use of reclaimed water (purple
pipe) for these sites.
20. Parking: Demonstrate that the proposed number of parking spaces is
appropriate, considering the adjacency of the light rail.
21. Meeting Space: Limit meeting space to local community in efforts to reduce
parking demand and traffic.
22. Community Benefit: Provide a Downtown Transportation and Circulation
Infrastructure Contribution to support a variety of improvements in the downtown
area. The amount should be greater than previous amounts for downtown
projects.
23. TDM Program: Initiate a bike share program.
24. TDM Program: Include provision to provide metro /bus passes for hotel
employees, and include flex -car parking spaces on -site for car - sharing programs.
25. TDM /Operations: Consider use of shuttles for guests to places in Santa Monica to
help reduce vehicular trips in the area.
26. Subterranean Garages: Alternative to access along 5th Street, consider
connecting the two project subterranean garages below grade, thereby
eliminating the need for vehicular access to the Courtyard Marriott site.
27. ARB Review: Consider a courtesy review of the project by ARB prior to formal
hearings by PC and CC?
28. Timing of Construction: Timing of construction considering the light rail and
esplanade improvements, is a concern.
29. Building Height Comparison /Analysis: Provide building height analysis /graphics
and show relationship between the project and other buildings in the area, and
include code requirements VS. proposed building heights analysis.
PC Float -Up Meeting: December 14, 2011
1554 gh Street + 501 Colorado Avenue
Courtyard Marriott I Hampton Inn & Suites
Planning Commission Comments: Float -Up Review
1. Courtyard Marriott Site: Potential historic preservation of Midas building should be
analyzed immediately. Any adaptive re -use of the building could be considered
as a community benefit (preservation of historic property).
2. Ensure that both hotels remain as mid - ranged priced hotels.
3. Living Wage: Provide a living wage for hotel employees.
4. Local Hiring Provision: Include a local hiring provision for both construction
workers and hotel employees.
5. Design Concept and Ground Floor Uses: The hotel projects must be designed to
accommodate the light rail and Colorado Esplanade projects. Specifically, the
ground floor design and uses should accommodate light rail and Esplanade
pedestrians.
6. Design Concept: Enhance both project's overall design to Santa Monica, and
improve the gateway and street corner presence of each site.
Design Concept: Differentiate the two building designs; they don't necessarily
have to mimic each other, and should have some design independence while
relating.
8. Design: Improve the ground floor pedestrian- orientated design for both sites.
Ground floor design should include outdoor seating areas for the
restaurant /retail service component and should be designed to activate the
sidewalk.
Design /Community Benefit: Provide additional open space adjacent to the
sidewalk to effectively expand the existing sidewalks adjacent to the project
along Colorado Avenue, 51h Street, and at the street corners.
10. Design: Ground floor programming should be oriented to the street. Uses that do
not activate the street, such as offices or blank walls, should be- located away
from the sidewalk elevations.
11. Design: Ground floor should have floor to floor heights of 15' -18'.
12. Design: Design the rooftop outdoor deck area to limit potential noise impacts on
adjacent residential uses.
13. Design Concept and Ground Floor Uses: The hotel projects must be designed to
accommodate the light rail and Colorado Esplanade projects. Specifically, the
ground floor design and uses should accommodate light rail and Esplanade
pedestrians. The project should relate to the Esplanade.
14. Design: Courtyard Marriot: Concerns with stucco material and lack of movement
of the windows along Colorado Avenue + 5th Street elevations.
15. Design: Eyes on Street Concept: Courtyard Marriott: Provide balconies along
elevations to provide open space and visual interest.
16. Design: Would additional height help to achieve other goals such as additional
articulation, movement of the building, greater ground floor open space? (Must
consider FAR limitation)
17. Courtyard Marriot: Ground floor restaurant operator must appeal to the general
public (potentially via third party operator), and not be a typical hotel restaurant
that serves hotel guests.
18. ARB Review: Consider a courtesy review of the project by ARB prior to formal
hearings by PC and CC.
19. Financial Analysis: Provide a financial analysis on the project.
20. Provide a Price Elasticity Analysis (Average Daily Rate analysis).
21. Brand of the hotel to run consistent with the DA timeframe.
Reference:
Attachment J
Final EIR & Mitigation
Monitoring Program
Is available at the City Clerk's
Office
Filed with Staff Report
11/12/2013, Item 7D
Within Legislative File 401 -023
Reference:
Attachment k
Project Plans
Is available at the City Clerk's
Office
Filed with Staff Report
11/12/2013, Item 7D
Within Legislative File 401 -023