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SR-06-09-2015-7ACity Council Report City of Santa monied City Council Meeting: June 9, 2015 Agenda Item: t A_ To: Mayor and City Council From: David Martin, Director of Planning and Community Development Subject: Introduction for First Reading of an Interim Ordinance Establishing Development Procedures and Standards in the Downtown Core Land Use Designation Pending Adoption of the City's Downtown Specific Plan. Recommended Action Staff recommends that the City Council introduce for first reading the attached initial interim ordinance governing the Downtown Core, effective for 60 days, that: 1. Prohibits projects of 7,500 square feet or greater from obtaining permits or approvals unless they comply with the interim ordinance; 2. Requires a development agreement for projects that exceed 32 feet in height; 3. Allows Administrative Approval applications to be approved if a proposed project does not otherwise require a discretionary permit pursuant to the LUCE, Zoning Ordinance, or this Interim Ordinance; 4. Establishes that 100% affordable housing projects of up to 50 units will be processed ministerially if a minimum of twenty -five percent (25 %) of the units are deed - restricted to households with income of 60% or less of Area Median Income and the remainder are deed restricted for households with incomes of 80% or less of Area Median Income; 5. Allows projects to apply for a Shared Parking Permit; 6. Modifies Floor Area Ratio calculations; 7. Protects public parking structures; and 8. Applies the initial interim ordinance to any application for a development project pending as of the effective date of the interim ordinance unless the development project has otherwise obtained a vested right to proceed. Executive Summary The Land Use and Circulation Element was adopted on July 6, 2010. The LUCE identified overarching land use and development parameters for the Downtown Core land use designation (p.2.1 -49) and required that, "prior to the completion of a new Downtown Specific Plan, the existing Bayside District Specific Plan and applicable land use designations will apply." Goals and policies were also included for the newly identified Downtown District. The LUCE anticipated the Downtown Specific Plan (DSP) would assign appropriate heights, FAR's, setbacks and step -backs and also respond to a number of new planning issues that need to be addressed such as the lack of open space, the need for affordable and workforce housing, the quality of pedestrian access 1 from areas south of the Downtown Core, the constrained linkages from Downtown to the Expo Light Rail station and the incorporation of the Expo Light Rail line station at 4th Street and Colorado Avenue into the fabric of the Downtown. The LUCE established a Community Benefits Tier Structure that requires discretionary review for all projects requesting building height above the base (generally established at 32 feet with some variation) that allows for full consideration of the LUCE goals and policies. The LUCE did not establish a Tier structure for the Downtown Core but anticipated a DSP would establish permitted uses and objective development standards to evaluate development projects. In the intervening period, the LUCE applies the height and FAR standards of the 1984 LUCE and Bayside District Specific Plan in the Downtown Core, pending the completion of a new DSP. Since the adoption of the LUCE, extensive community engagement for the DSP has occurred including six community workshops and 16 public meetings with City boards and commissions. The DSP Framework was subsequently released in September 2013 which compiled all of the work efforts completed during the first two years of the DSP planning process and set forth the emerging themes including urban form, land use and development standards, approaches to circulation and mobility, open space, historic preservation, and economic diversity. The Draft DSP was released for public review in February 2014 and proposed goals and policies for various subject areas including a circulation framework that addresses the integration of Expo Light rail into the Downtown system, freeway access, public parking structure access, and congestion, establishing the foundation for future land use and transportation decisions. The Draft DSP also included proposed development standards such as height, FAR, maximum floor plate ratios, building setbacks from sidewalks, and vehicle and bicycle parking standards. Currently, there are 13 pending development agreement projects and one Administrative Approval project located within the LUCE Downtown Core designation. While the Draft DSP has not yet had any public hearings, the contents of the draft plan are a compilation of a two -year public engagement process that included input from the community, City boards and commissions, the Planning Commission, and Council. Until such time that objective standards are in place to evaluate projects, this initial interim ordinance is essential to ensure that projects are not approved in the Downtown Core that could potentially undermine the core concepts presented in the Draft DSP. Therefore, an initial interim ordinance is proposed, for 60 days, that will facilitate the subsequent incorporation of goals for the Downtown including urban design, community benefits, and trip reduction. Projects less than 7500 square feet would not be covered by this interim ordinance. Those projects would be governed by the existing Zoning Ordinance. Additionally, the interim ordinance allows for Administrative Approvals for projects that do not require discretionary review or approval as established in the existing Zoning Ordinance, the LUCE, or this interim ordinance. This process ensures that routine minor actions such E as business licenses, tenant improvements, and minor additions to existing buildings can proceed pending completion of the DSP. The initial interim ordinance would apply to any application for a development project pending as of the effective date of this interim ordinance unless the development project has otherwise obtained a vested right to proceed. This initial interim ordinance may be extended and modified as the DSP process continues. Background Interim Zoning Ordinance Following the adoption of the LUCE in July 2010, Interim Zoning Ordinance (IZO) Number 2345 (CCS) was first presented on January 25, 2011 to establish interim zoning provisions and standards pending a comprehensive update of the City's Zoning Ordinance and was adopted on February 8, 2011. The IZO has been extended and modified several times. The Council adopted the final extension to the IZO on July 22, 2014. The Zoning Ordinance Update had its first reading on May 12, 2015 with second reading anticipated for June 23, 2015. One of the central objectives of the Zoning Ordinance Update is to ensure that the update is consistent with and implements the policies and objectives of the LUCE, including establishing a regulatory mechanism to review Tier 2 projects and achieve community benefits. The IZO expires on July 24, 2015, which is the anticipated effective date of the Zoning Ordinance Update. The DSP planning process has been ongoing since the adoption of the LUCE, which anticipated that the DSP would assign appropriate development standards and address emerging issues such as the lack of open space and linkages to the Expo Light Rail station. On July 9, 2013 Council held a meeting to direct staff on the maximum development standards to be studied for each District subarea as part of the DSP's CEQA required Environmental Impact Report. Released September 2013, the DSP Framework compiles all the work efforts completed during the first two years of the DSP planning process including information from early discussions with the community, Planning Commission, and Council. The Framework included preliminary thoughts for appropriate urban form, land use & development standards, approaches for addressing circulation and mobility, strategies for ensuring 3 ample open space, preservation of historic and cultural resources and an overview of maintaining economic diversity in the Downtown. On October 3, 2013 the City along with environmental consulting group, AMEC Foster Wheeler, hosted a community meeting to solicit public input on the scope and content of the EIR. Released February, 2014 the Draft DSP document builds on the DSP Framework and includes specific goals, policies, and actions for the following subjects: • Housing & Economic Diversity • Arts, Culture & Entertainment • Historic Preservation • Open Space • Infrastructure • Circulation and Mobility • Development Standards • Design Guidelines • Community Benefits • Implementation The plan has been widely circulated and is available online at http: / /wvvw.downtownsmplan.org/ and also at the Planning counter at City Hall. Twelve development agreements and one Administrative Approval application have been filed for projects in the Downtown Core. Of those projects, eight are housing projects (one being 100% affordable), four are hotels, one is a movie theater (Arclight), and one is a mixed -use project that includes several uses including a hotel (4th /5th & Arizona on City property). Development review procedures and standards for Tier 2 projects have been adopted as part of the Zoning Ordinance Update. It is anticipated that the DSP will establish a similar tier structure in the Downtown Core and that a discretionary permit other than a development agreement will be available to authorize certain projects, subject to the requirements of applicable zoning districts, identified permitted uses, and objective development standards. It is in this context that this initial interim ordinance is being proposed to establish development procedures that will 0 ensure that the core concepts of the DSP are applied in the development review process while the DSP process continues. Discussion Proposed Downtown Community Benefits Tier structure The Draft DSP proposes a tier structure similar to that established in the LUCE. The 'Tier 1 base height is generally established at 32 feet with some variation for projects that provide on -site affordable housing. Projects that seek additional height over 32 feet require discretionary review or a development agreement, are required to provide community benefits, and achieve increased trip reduction goals. Discretionary review allows for greater control over a project's mix of uses, form and scale, density, height, and TDM measures. Desired outcomes of the DSP include a comprehensive circulation and parking strategy for the Downtown that integrates the Expo Light Rail station, increasing open space, increasing housing opportunities particularly affordable and workforce housing, improving pedestrian linkages, and establishing updated development standards that provide greater flexibility for achieving desired urban form. Existinq Development Procedures Development Review Procedures While the Downtown Specific Plan would employ a coordinated approach to guide new development, much of the existing zoning standards were enacted prior to the adoption of the LUCE and the subsequent commencement of the DSP. Therefore, in order to preserve the opportunity for the DSP to establish an appropriate standards to assess development projects; requiring development agreements for all projects over 32 feet in height in the interim is essential to ensure that new development unfolds in a manner that is consistent with core concepts of the Draft DSP. Administrative Approval Procedures in Downtown Historically, the vast majority of Administrative Approval projects have occurred in the Downtown area. Existing development procedures for Administrative Approval permits require that projects meet specific development standards. As described in SMMC 9.04.20.28.010 the purpose of the Administrative Approval is for, "...an administrative review and assessment of the proposed development project in light of explicit standards contained in the Chapter [Zoning Ordinance]." In the absence of an interim ordinance, projects that would qualify for processing as Administrative Approval permits could be up to 60,000 square feet in the Downtown due to the allowance to discount residential floor area by 50% for the purposes of calculating floor area ratio. In addition, a higher Development Review threshold of 30,000 square feet applies if projects construct the minimum number of required affordable housing units on -site or off -site rather than paying the affordable housing fee. Therefore, coupling Downtown's higher Development Review threshold with the ability to discount residential floor area by 50 % for the purposes of determining whether a Development Review permit is required has resulted in large, mixed -use projects that are processed without a public hearing, no ability to require community benefits, and as ministerial permits that do not require any environmental review. This results in an inability for the City to analyze and mitigate the impacts associated with new development. Pendinq Development Applications At present, there are 13 development agreements and one Administrative Approval pending review in the Downtown Core. There are five hotel projects, one movie theater, and eight housing projects. In some instances, the proposed development standards in the Draft DSP differ quite significantly from the existing Zoning Ordinance. This disconnect is problematic because it is possible that six of the development agreements for housing projects could convert to Administrative Approvals. The premise upon which the Administrative Approval process is based is no longer consistent with the proposed goals and policies of the Draft DSP, particularly with respect to: congestion management, addressing the lack of open space, and enhancing the public realm through quality urban form. The six housing projects that are development agreements 9 could potentially convert to Administrative Approvals meaning that a significant amount of growth could be approved and constructed inconsistent with the yet to be adopted DSP. Projects more than DR threshold and less than 32 feet in height Projects less than DR threshold and less than 32 feet in height 100% affordable housing projects of up to 50 units if 25% of units for incomes of up to 60 %AMI and remainderfor incomes of up to 80% of AM I Projects over 32 feet In Height The interim ordinance would require a development agreement for development projects in the Downtown higher than 32 feet. The DSP is currently underway and contemplates a circulation framework that would address the integration of Expo light rail into the Downtown system, freeway access, direct parking structure access, and congestion; establishing the foundation for future land use and transportation decisions. The DSP would also address potential expansion of the shared parking district and urban form standards to address transitions from the expanded Downtown boundaries to adjacent residential neighborhoods. If multiple projects of up to 60,000 square feet 7 were allowed to proceed piecemeal with no public or environmental review, the opportunity to ensure that these projects are consistent with core concepts presented in the Draft DSP would be lost. The 32 feet building height threshold would be equivalent to the Tier 2 threshold identified in the LUCE. On an interim basis, the City must preserve the ability to ensure that future development does not undermine the preparation of the DSP. The change in development procedures still allows for routine approval of small projects and additions consistent with the existing Zoning Ordinance and for mixed -use projects to be proposed and approved. It would preserve the City's ability to make certain that the DSP is not undercut by the ministerial approval of large development projects consistent only with the existing Zoning Ordinance, which does not yet reflect the goals, policies, and actions of the LUCE Downtown District and the core concepts of the Draft DSP. Administrative Approvals The interim ordinance would continue the practice that Administrative Approval permits may be granted if the project square footage is less than the development review permit threshold established for each zoning district. The interim ordinance also would propose that Administrative Approvals may be granted if the project complies with objective zoning and LUCE standards and, to the extent these standards are inconsistent, the more restrictive of the Zoning Ordinance or LUCE standard would apply. This provision would allow objective LUCE standards, such as building height and FAR, to apply in instances where the Zoning Ordinance may differ and no longer be the appropriate standard to which an Administrative Approval project must conform. The existing zoning standards will ensure that routine minor actions such as business licenses, tenant improvements, and minor additions to existing buildings can proceed while the preparation of the DSP continues. 100% Affordable Housing Consistent with provisions that were adopted with the LUCE, 100% affordable housing projects of up to 50 units would be processed ministerially if a minimum of twenty -five E percent (25 %) of the housing units are deed - restricted for households with incomes of 60% or less of AMI with the remainder deed restricted for households with incomes of 80% of less of AMI. This would ensure that the City's desire to reduce barriers for the creation of affordable housing would remain intact. Shared Parking Permit An important LUCE goal is the efficient management of parking resources. The interim ordinance establishes an administrative process for property owners and tenants to request shared parking in the Downtown Core. This would allow the process to be tested in an area of the City where a significant amount of parking sharing already happens while also creating a more streamlined process for new businesses to request alternative parking arrangements. Several empirical studies completed for recent development projects have indicated that much of the privately constructed parking in the Downtown is underutilized and is therefore made available to off -site users through monthly parking passes or other private arrangements. Further, the City's 2006 Downtown Parking Program and the 2009 Walker Parking Study supported the LUCE policies for shared parking facilities that facilitate the "Park Once" philosophy as an important economic strategy and community benefit. The proposed process acknowledges the free market arrangements that in some cases already exist between property owners, would replace the more onerous variance process that is currently required for shared parking requests, and would only apply to existing parking facilities. The process is structured similar to existing administrative permits which are issued by the Planning Director, or designee, with an appropriate appeal process and revocation procedure, if necessary. Projects that require development agreements will still have parking requirements negotiated through the development agreement process. Floor Area Ratio Calculations in Downtown Core Floor area ratio (FAR) is the maximum allowable floor area of a building relative to the size of the lot upon which it is situated. FAR typically is established as a development N standard in order to control the size and bulk of buildings above the ground. As a result, the interim ordinance discounts below -grade floor area for the purposes of determining a project's floor area ratio (FAR). The interim ordinance also discounts outdoor dining floor area, subject to certain conditions, because the opportunity for ground -floor outdoor dining on private property within a building footprint can be viewed as a desirable way to activate a space and take advantage of Santa Monica's favorable climate, and to create naturally lit and ventilated areas for human activities. Below - grade floor area and outdoor dining areas would still be counted for all other purposes including determining parking requirements and trip generation. Alternatives Other alternatives the Council may consider include: 1. Modify the threshold at which a development agreement is required. 2. Adjust the applicability of the interim ordinance. Implementing any of the alternative actions has the potential to increase or decrease the number of projects that must be consistent with the LUCE. Environmental Analvsis The proposed interim ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State Implementation Guidelines in that CEQA applies only to projects having the potential to cause a significant effect on the environment. The proposed action to require that Administrative Approvals permits comply with the more restrictive of objective zoning or LUCE standards and uses and to require a development agreement application for projects over 32 feet in the Downtown Core does not have this potential. Rather, the proposed amendment will expand the number of projects subject to public review and evaluated pursuant to CEQA. Additional findings supporting this exemption are included in the attached ordinance. 10 Public Outreach The proposed interim ordinance preserves the ability for the City to continue with the preparation of the DSP and the associated community engagement process that will include consultation with residents, business owners, property owners, and other interested stakeholders. Financial Impacts & Budget Actions The recommendation in this report does not have any significant budget or fiscal impacts. As the ordinance would require the processing of more development agreements in the future, the Planning and Community Development Department expects some minor revenue increases generated from fees, although these fees are deposits to compensate for staff time on DAs. Prepared by: Jing Yeo, Acting Principal Planner Approved: Forwarded to Council: David Martin Director, Planning and Community Development Attachments: A. Interim Ordinance 11 L Elaine Polac ek Acting City Manager City Council Meeting: 06 -09 -15 Santa Monica, California ORDINANCE NUMBER (CCS) (City Council Series) AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING INTERIM DEVELOPMENT PROCEDURES AND STANDARDS PENDING ADOPTION OF THE DOWNTOWN SPECIFIC PLAN THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Findings and Purpose. The Council finds and declares: (a) The City adopted a new Land Use and Circulation Element of the General Plan of the City of Santa Monica ( "LUCE ") on July 6, 2010. The adoption of the LUCE was the culmination of a multi -year planning process commencing in 2004. (b) The LUCE is designed to maintain the City's character, protect the City's neighborhoods, manage its transportation systems, and encourage additional housing in a sustainable manner that ensures a high quality of life for the City's residents. Based on these objectives, the LUCE focuses on community character and neighborhood conservation, future trip reduction, integrated land use and transportation, local land uses and housing, jobs tied to housing and transit, promotion of social and fiscal health and diversity, sustainability, community benefits, open space, and 1 implementation, phasing and monitoring. In so doing, the LUCE substantially revises the City's previous land use policies, goals, and standards. (c) Consequently, immediately after the LUCE was adopted, the City commenced a comprehensive review of the City's planning and zoning regulations in order to ensure that such regulations are consistent with the General Plan as amended and consistent with the public health, safety, and welfare. (d) After a thorough review process that included public outreach and meetings with the community, frequent users of the current code, and various City boards and commissions, the initial public review draft of the Zoning Ordinance Update was released in November 2013 thereby initiating the public review process. Thereafter, commencing in December 2013 and concluding in March 2015, the Planning Commission engaged in 33 public hearings encompassing almost 150 hours of public testimony, culminating in the Planning Commission's recommendation to the City Council that it adopt the Zoning Ordinance Update. (e) On April 14 and 15, 2015, Council conducted an in depth study session to discuss the Zoning Ordinance Update and related land use matters. (f) On May 5 and 12, 2015, the City Council reviewed for first reading an ordinance to implement the Zoning Ordinance Update, among other actions, resulting in the introduction of this ordinance for first reading. It is anticipated that the Council will adopt this ordinance on June 23, 2015. (g) Since the LUCE substantially revised the City's land use policies, goals, and standards, certain critical areas of conflict between the LUCE and the existing Zoning 2 Ordinance were identified which necessitated the adoption of an interim zoning ordinance, and numerous extensions of this ordinance, to ensure pending completion of the comprehensive update to the Zoning Ordinance Update, development would be consistent with the goals and policies of the LUCE. (h) More specifically, in light of the above - detailed concerns, on February 8, 2011, the City Council adopted Interim Ordinance Number 2345 (CCS) establishing interim development procedures and standards pending implementation of the LUCE through a revised Zoning Ordinance. This ordinance was extended and modified several times. The latest extension, Ordinance Number 2466 (CCS) will expire on July 24, 2015, at essentially the same time that the Zoning Ordinance Update is anticipated to become effective. (i) The LUCE establishes 17 distinct land use designations. One of these land use designations is the Downtown Core. The purpose of this designation is to maintain and enhance the downtown area as the heart of the City and as a thriving, mixed use urban environment. Unlike the other land use designations, the LUCE does not establish new height and FAR development parameters, but instead provides that the height and FAR along with other development standards shall be determined through a specific plan process. 0) More specifically, Goal D14 provides that the City should "prepare a Downtown Specific plan that replaces the existing Bayside District Specific Plan and incorporates the relevant goals and policies of the LUCE, addresses ongoing issues in the Downtown and encompasses the expanded boundaries of the Downtown District from Ocean Avenue to Lincoln Boulevard and from Wilshire Boulevard to 1 -10." 3 (k) Policy D14.1 provides that the City should "Implement a new Downtown Specific Plan to determine the appropriate range of building heights in the district and address the need for open space, affordable and workforce housing, pedestrian access from areas sought of the Downtown core, the linkages from Downtown to the Beach and the incorporation of the Downtown Light Rail Station into the fabric of the Downtown. (1) Due to these LUCE goals and polices, the Zoning Ordinance Update does not establish development standards for the Downtown Core. Instead it provides, consistent with the LUCE, that until such time that the Specific Plan is adopted for these Downtown Districts, the existing Bayside District Specific Plan and applicable land use designations established in the 1984 Land Use and Circulation Element, as amended, continue to apply to the Downtown Core as does the existing Zoning Ordinance. (m) Preparation of the Downtown Specific Plan ( "DSP ") has been ongoing since the adoption of the LUCE. As part of the DSP planning efforts, there have been six community workshops and sixteen public meetings with the City Council, boards, commissions, and taskforces. (n) In September 2013, the. DSP Framework was released, compiling all the work efforts that had been completed to date including information from the meetings that had been conducted and preliminary consideration of the appropriate urban form, land use and development standards, approaches for addressing circulation and mobility, strategies for ensuring ample open space, preservation of historic and cultural resources, and an overview of maintaining economic diversity in the Downtown. (o) In February 2014, the Draft DSP was released setting forth specific goals, policies and actions on housing and economic diversity; arts, culture and entertainment, 9 historic preservation, open space, infrastructure, circulation and mobility, development standards, design guidelines, community benefits, and implementation. (p) Despite these extensive work efforts on the DSP, significant work on the DSP remains and it is not anticipated that it will be formally reviewed by the Planning Commission and considered for adoption by the City Council until the summer of 2016. (q) Certain critical areas of conflict exist between the LUCE and the existing Zoning Ordinance as applied to the Downtown Core. (r) More specifically, the LUCE establishes a base height for each land use as a baseline. Proposed development which seeks additional height above the base is subject to discretionary review and must meet additional requirements consistent with the community's broader social, environmental, and circulation goals. This approach is defined in three tiers. (s) Although the LUCE does not mandate this three tier structure for the Downtown Core, the draft DSP contemplates this same approach being established. (t) The existing Zoning Ordinance does not currently incorporate this tier structure or establish a mechanism to prioritize and necessitate that projects participate in the community benefit tier structure, which is the basis by which much of the LUCE vision, goals, and policies will be achieved. (u) More specifically, Zoning Ordinance Part 9.04.20.28 establishes the applicability and procedures for issuance of administrative approvals which provide for the ministerial administrative review and assessment of proposed developments subject to explicit standards contained in the Zoning Ordinance. 5 (v) The administrative approval process is premised on the assumption that the explicit standards in the Zoning Ordinance have been adopted to ensure that a completed project is in harmony with existing or potential development in the area and is consistent with the goals, objectives, and policies of the General Plan. (w) . However, this premise underlying the administrative approval process is no longer applicable in the Downtown Core given the significant ways in which the LUCE differs from the prior Land Use and Circulation elements including, but not limited to, the direct linkage between land use and transportation policies and programs and the establishment of new development policies and standards which ensure that quality development contributes to the character of the City. (x) In the absence of an interim ordinance, projects that would qualify for processing as Administrative Approval permits could be up to 60,000 square feet in the Downtown due to the requirement to discount residential floor area by 50% for the purposes of calculating floor area ratio. In addition, a higher Development Review threshold of 30,000 square feet applies if projects construct the minimum number of required affordable housing units on -site or off -site rather than paying the affordable housing fee. Therefore, coupling the Downtown Core's higher Development Review threshold with the requirement to discount residential floor area by 50% for the purposes of determining whether a Development Review permit is required could result in large, mixed -use projects that are processed with no public engagement process, no ability to require community benefits, and as ministerial permits, do not require any environmental review. This would result in an inability for the City to analyze and mitigate the impacts associated with new development. (y) Administrative Approvals of projects in the downtown prior to the adoption of the DSP would undermine the community vision set forth in the Downtown District goals and policies, as well as the Downtown Specific Plan process underway and would detrimentally affect the City's ability to implement LUCE goals and policies, particularly with respect to: providing open spaces, trip reduction, coordinating with adjacent sites, congestion management, and achieving community goals through community benefits and quality urban design. (z) Pending completion of the DSP, it is essential that development be consistent with the General Plan so that the goals and values of the community, as reflected in the LUCE, are not significantly undercut. Adjusting the development standards as provided in this Ordinance will ensure that the quality of life, the environment, the ability to move around the City, and the efficacy of the ongoing planning process are preserved. (aa) Adoption of this ordinance would not prohibit any development, but would instead provide an alternate process by which development is reviewed and approved so as to ensure consistency with and appropriate implementation of the LUCE. (bb) Adoption of this ordinance would also not materially alter the City's substantial incentives for residential or mixed use development in non - residential zoning districts. These incentives would be preserved in local law and policy. (cc) As detailed above and in the LUCE, the City's downtown is a thriving, mixed -use urban environment for people to live, work, be entertained, and be culturally enriched. 7 (dd) This area has the greatest concentration of activity in the City, anchored by the core commercial district, including the Third Street Promenade and Santa Monica Place. (ee) The City's publically owned parking structures in the BSC -2 and C3 -C zone districts are essential to a vibrant, economically viable downtown area, providing parking for the offices, restaurants, theaters, and residences. (ff) The vast majority of the City's residents regularly visits downtown and uses its parking resources. (gg) The importance of the City's publically -owned parking infrastructure in the City's downtown is reflected in the numerous studies and reports over the past dozen years, including but not limited to the 2000 Downtown Parking Management Program, the 2002 Downtown Parking Task Force strategic plan, the 2006 Downtown Parking Program, and the 2009 Walker Parking Study. (hh) These centrally located parking structures enable their users to park once and then walk to multiple destinations. (ii) This "Park Once" philosophy contributes to the Downtown's pedestrian character and is a major underpinning of its success. (jj) These parking structures are also operated in a manner to meet the City's LUCE, transportation and economic goals. (kk) The LUCE calls for a parking management approach which utilizes a shared pool of parking resources creating a true shared parking district. N (II) Given these fundamental goals, it is essential that these parking structures be protected as precious resources to ensure that adequate parking is available and that easy access is provided to the core of the Downtown thereby promoting its vitality. (mm) To ensure replacement parking essential for the economic viability of the City's downtown, there is a need for a development standard that requires an owner to first obtain a final permit for a project providing replacement public parking within the same district before an owner may remove, redevelop or convert a parking structure in a manner that results in the removal of public parking spaces. (nn) Encouraging ground floor outdoor dining is an important goal expressed in the LUCE. Excluding such dining from the calculation of floor area ratio can help incentivize this use and create opportunities for adaptive reuse in existing structures that would not presently be possible. Such ground floor outdoor dining does not contribute to a building's mass and density, and therefore its exclusion from FAR is appropriate. However, ground floor outdoor dining would still be considered floor area so that its potential impacts on such areas as parking and traffic would still be calculated. (oo) Pending completion of the DSP, it is necessary on an interim basis to modify the Zoning Ordinance as set forth in Section 2 and Section 3 of this Ordinance. (pp) As detailed above and in June 9, 2015 City Council staff report, there exists a current and immediate threat to the public health, safety, and welfare should the interim zoning ordinance and necessary amendments not be adopted and development of projects inconsistent with the LUCE be allowed to proceed through the issuance of Administrative Approvals or Development Review Permits which are not consistent with 9 the explicit standards of the LUCE or with the tier structure and the provision of community benefits. SECTION 2. Interim Zoning Regulations Notwithstanding any provision of the City's Zoning Ordinance to the contrary, the issuance or extension of permits for either a new development project or for the expansion of an existing development project in the Downtown Core that exceeds 7500 square feet ( "development project ") that does not comply with the interim zoning standards set forth in Section 3 of this Ordinance is hereby prohibited and no zoning permits or approvals, subdivision maps, building permits, or other land use permit shall be approved, issued, or extended for a development project in contravention of Section 3 during the pendency of this Ordinance or any extension thereof. SECTION 3. Interim Zoning. (a) Administrative Approvals. No development project in the Downtown Core shall be approved pursuant to Santa Monica Municipal Code Section 9.04.20.28.020 [Administrative Approvals] unless all of the following findings are made: (1) The proposed development does not require discretionary review or approval as established in the Zoning Ordinance, the LUCE, or this Interim Ordinance. (2) The proposed development conforms precisely to the development standards contained in both the Zoning Ordinance and in the LUCE for the zoning district and land use designation in which the development is located. (3) In the case of any inconsistency between the Zoning Ordinance and the LUCE pertaining to any objective development standard or permitted use, the proposed 10 development conforms to the more restrictive development standard and is a permitted use authorized by the LUCE. (b) Development Agreement. Notwithstanding the development standards specified in the Zoning Ordinance, except for City projects, no development project in the Downtown Core shall exceed 32 feet in height unless developed pursuant to a development agreement adopted pursuant to Santa Monica Municipal Code Chapter 9.48. (c) 100% Affordable Housing Proiects. Notwithstanding subsection (b) of this Section, affordable housing projects with 50 units or less will continue to be processed ministerially if a minimum of twenty -five percent (25 %) of the housing units are deed - restricted or restricted by an agreement approved by the City for occupancy by households with income of sixty percent (60 %) of Area Median Income or less and the remainder of the housing units are deed - restricted or restricted by an agreement approved by the City for occupancy by households with incomes of eighty percent (80 %) of median income or less. Such affordable housing projects may also include non - residential uses, as long as such uses do not exceed a maximum percentage of 33% of the total floor area. Notwithstanding Section 4, affordable housing projects with 50 units or less which are being developed pursuant to a settlement agreement with the City or which received their Administrative Approval prior to January 8, 2013 shall continue to be processed in accordance with Ordinance Number 2407 (CCS). (d) Shared Parking. The following administrative process is hereby established authorizing property owners and tenants to request shared parking in the Downtown 11 Core, except for projects that are processed through a development agreement. A shared parking permit is intended to permit the owners of parking facilities to rent or lease underutilized parking that is available in their facility to nearby residents, workers or businesses while reserving sufficient parking supply needed for on -site uses. (1) Permit Required. A shared parking permit, approved by the Planning Director, or his /her designee, shall be required and shall be issued prior to the commencement of a shared parking use of any private parking facility that is otherwise limited to on -site users. The Planning Director, or his /her designee, may establish additional conditions to further the intent of this subsection (e) and ensure that parking spaces needed for the primary on- site uses will be available during the hours needed for their use. A public hearing shall not be required for issuance of a shared parking permit. (2) Application. Application for a shared parking permit shall be filed in a manner consistent with the requirements contained in Municipal Code Part 9.04.20.20. (3) Findings. The Planning Director, or his /her designee, or Planning Commission on appeal, may approve a shared parking permit application, in whole or in part, with or without conditions, only when all of the following findings are made in an affirmative manner: (i) The operation of the requested shared parking permit at the location proposed and within the time period specified will not adversely impact the primary use 12 of the parking facility for its intended on -site users, or otherwise endanger the public health, safety, or general welfare. (ii) The shared parking permit sets forth the maximum number of shared parking spaces that are being approved for use by off -site users that will be available during peak and off -peak parking demand periods so as to ensure that a sufficient number of spaces will be provided to meet the greater parking demand of the anticipated users. (iii) Additional requirements, restrictions or agreements, as deemed necessary by the Planning Director, or his /her designee, are included as a requirement(s) of the shared parking permit to ensure that parking spaces needed for the primary on -site uses will be available during the hours needed for their use. The Planning Director, or his /her designee shall prepare a written decision which shall contain the findings of fact upon which such decision is based and all required conditions, if approved. The decision shall be mailed to the applicant and to property owners and residents of parcels adjacent to the parcel for which the Shared Parking Permit is requested. Copies of the decision shall also be provided to the Planning Commission. (4) Term of Permit. A shared parking permit shall be valid for a one -year period from the date of issuance unless a different period is set by the Planning Director, or his /her designee, or the Planning Commission on appeal, as a condition of granting the shared parking 13 permit. The permit shall renew automatically for additional one -year periods unless the permit is modified or revoked in accordance with subsection (6) of this Section. (5) Monitoring. The permit holder shall grant City staff access to the parking facility for the purpose of verifying parking availability prior to issuing the permit as well as to allow random monitoring after the permit is issued. (6) Modification or Revocation. The City may modify or revoke an approved shared parking permit in accordance with the following procedures: (i) If the Planning Director designee receives evidence that the conditions of the permit have not been met, or the permit granted is being or has recently been exercised contrary to the terms of the approval or in violation of a specific statute, ordinance, law, or regulation, the Planning Director designee shall serve notice of these violations, either in person or by registered mail, on the owner of the property and on the permit holder and shall provide the permit holder with a reasonable opportunity to cure the violation(s). (ii) If the permit holder or property owner has not responded to the notice within 10 days or the Planning. Director designee determines that the permit holder has failed to cure the violation, the Planning Director designee may refer the matter to the Zoning Administrator for a revocation hearing. Notice of hearing shall be published once in a newspaper of general circulation within the City and shall be served either in person or by registered mail on the owner of the property and on the permit holder at 14 least ten days prior to such hearing. The notice of hearing shall contain a statement of the specific reasons for revocation. (iii) After the hearing, a shared parking permit may be revoked by the Zoning Administrator or by the Planning Commission on appeal or review if any one of the following findings is made: fraud (A) That the Shared Parking Permit was obtained by misrepresentation or (B) That the conditions of the permit have not been met, or the permit granted is being or has recently been exercised contrary to the terms of the approval or in violation of a specific statute, ordinance, law, or regulation. A written determination of modification or revocation of the shared parking permit shall be mailed to the property owner and the permit holder within ten days of such determination. (7) Appeals. Any person may appeal the approval, conditions of approval, denial, modification or revocation of a shared parking permit to the Planning Commission if filed within fourteen consecutive calendar days of the date the decision is made in the manner provided in Municipal Code Part 9.04.20.24, Sections 9.04.20.24.020 through 9.04.20.24.040. (e) Floor Area Ratio Calculations in the Downtown Core. In the Downtown Core, the following shall not be included when calculating a project's floor area ratio (FAR): below -grade floor area and ground floor outdoor dining in buildings on private property 15 provided the dining area has no more than a 42 inch high barrier surrounding the dining area and is visible from the public right of way. However, such below -grade floor area and ground floor outdoor dining shall be counted as floor area for all other purposes. (f) Publically Owned Parking Structures. No removal, redevelopment or conversion of a parking structure in BSC -2 and C3 -C zone districts, publically owned as of February 14, 2012, which results in the loss of parking spaces above the ground floor shall be permitted unless the final permit to commence construction for a project providing the one -to -one replacement of this parking has been issued in the same zoning district and this replacement parking will be offered to the public at rates comparable to the most recent rates offered to the public for the removed parking spaces. SECTION 4. Applicability. This Ordinance shall apply to any application for a development project pending as of the effective date of this ordinance unless the development project has otherwise obtained a vested right to proceed. SECTION 5. Existing Zoning Ordinance. Notwithstanding Section 1 of Ordinance Number (CCS) [Zoning Ordinance Update], the City's existing Zoning Ordinance, Chapter 9.04 of Article 9 of the Santa Monica Municipal Code, shall continue to be applied to development in the Downtown Core except to the extent that such provisions are inconsistent with this Ordinance. SECTION 6. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of `[:1 such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 7. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 8. This Ordinance shall be of no further force or effect sixty days after of its effective date unless prior to that date, after a public hearing, noticed pursuant to Santa Monica Municipal Code Section 9.04.20.22.050, or any successor thereto, the City Council, by majority vote extends this interim ordinance. SECTION 9. 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 17 in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days after its adoption. i