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SR 05-08-2018 8B City Council Report City Council Meeting: May 8, 2018 Agenda Item: 8.B 1 of 8 To: Mayor and City Council From: David Martin, Director, Administration Subject: Possible Ballot Measure to Protect Against Development Exceeding the Adopted General Plan or Zoning Code Limits on Height or Floor Area Ratio, By Requiring Super-Majority Council Approval or Other Means Recommended Action Staff recommends that the City Council review the proposed options and adopt the recommendation not to proceed with a ballot measure for the November 2018 Election to require a super-majority Council approval for projects that exceed the Land Use Element, Specific Plans or the Zoning Ordinance that would result in an increase in allowed height or floor area ratio (FAR) as unnecessary due to the protections already built into those adopted plans to preclude such approval. Executive Summary At the City Council meeting on December 12, 2017, the Council directed staff to “explore a possible 2018 ballot measure that would protect against development exceeding the adopted General Plan or Zoning Code limits on height or Floor Area Ratio, by requiring super-majority Council approval, or by other means, and return to Council with options.” In response to Council direction to explore a possible ballot measure to protect against development exceeding the General Plan or Zoning Ordinance, staff has developed three options. The recommended first option is to not place a measure on the ballot and continue to rely on the existing General Plan, the Downtown Community Plan and Zoning Ordinance which sets out clear rules for maximum height and floor-area ratios (FAR) for the vast majority of the City based on plans adopted after robust public input. Option 2 would allow projects to exceed the zoning ordinance standards through a Development Agreement without a super-majority, but only if the project is consistent with the LUCE and any applicable Specific Plan. Option 3 would require a super- 2 of 8 majority for any project that exceeds the height and FAR allowance contained in the zoning ordinance. Having completed the implementation of the Land Use and Circulation Element (LUCE) in 2010 with the adoption of the citywide Zoning Ordinance and the Downtown Community Plan, the flexibility utilized for development agreements is no longer either necessary or desirable. Predictability for both property owners and residents outweighs the perceived benefits that came from negotiating heights and density on a project by project basis. Having put enormous resources of time, debate and financial resources into establishing specific height and density limitations for the entire city, Council has clearly indicated a commitment to enforce those limits by applying them consistently to all future projects and that has been the established practice without deviation since the adoption of the Zoning Ordinance and the Downtown Community Plan. Discussion Development in Santa Monica is governed by a Tier system, which is contained in the LUCE and establishes up to three tiers of development in most land use districts. Tier 1 development is limited to a relatively low height and FAR with a very predictable entitlement process. Tier 2 development allows greater height and FAR in exchange for increased, but prescribed community benefits. Tier 3 development allows the most height and FAR in exchange for community benefits beyond what is required for Tier 2 projects. Under current requirements, development can only exceed height or FAR requirements established in the Zoning Ordinance, LUCE and/or any Specific Plan if the relevant governing document is amended, or, in limited circumstances, if a Development Agreement is obtained. Any such amendment or Development Agreement must be adopted by ordinance and is subject to referendum and reversal by the voters. Prior to adoption of the Zoning Ordinance and associated amendments to the LUCE in 3 of 8 2015 and the Downtown Community Plan last year, most projects proceeded by Development Agreement, which allowed increased height and FAR in exchange for community benefits. The Zoning Ordinance and the Downtown Community Plan, however, implemented prescribed development standards and community benefits for Tier 2 projects; and the Downtown Community Plan includes prescribed development standards and community benefits for most Tier 3 housing projects. Today, there are only limited areas in the City where Tier 3 projects with negotiated height and FAR are still allowed. These include Broadway and Colorado Avenue between Lincoln and 20th Street, the area bounded by Broadway to the north, Colorado to the south, Cloverfield to the east and 20th Street to the west, and any project in the Mixed Use Boulevard Low District that includes 100% affordable housing or a designated Landmark. Tier 3 projects are also allowed by Development Agreement in portions of the Bergamot Transit Village. However, while these projects could exceed the height and FAR limits in the zoning ordinance, they must be consistent with the height and FAR maximums contained in the LUCE. Option 1 Option 1 would retain and reinforce existing legally adopted developmen t rules and requirements. With the adoption of the Downtown Community Plan in 2016 and the citywide Zoning Ordinance in 2015, Council clearly established height and FAR ratios to guide future development throughout the City with the intent of providing ce rtainty about the rules for property owners, residents and potential developers. Under existing rules, development may not exceed established height or FAR requirements. Deviating from those standards would require amending the governing document ordinan ce (or the governing document permits a Development Agreement, also adopted by ordinance). In either case, any such ordinance adopted by Council would be subject to referendum by the voters. Council may therefore conclude that an additional super-majority requirement is not necessary given that the Council has intentionally adopted the prescribed development requirements set forth in recent years and shown a clear commitment to regulating development within those standards. The availability of referendum for any change to height or FAR requirements in the Zoning Ordinance or 4 of 8 area specific plan or any Development Agreement allowing development in excess of prescribed height and FAR limits provides strong protection that these rules will be enforced and not set on a project by project basis. It should be noted that the City is not required to even process a proposal for a development agreement that exceeds zoning standards. Staff believes that adhering to the established zoning standards makes enacting a charter amendment unnecessary to ensure consistent compliance with established height and FAR standards. Options 2 and 3 In response to Council direction to explore options to require a super-majority, or other process, for development exceeding the adopte d General Plan or Zoning Ordinance height or FAR allowances, staff has developed two additional options for Council consideration. Option 2 Option 2 would require a super-majority for an amendment to the LUCE or any specific plan where that amendment would increase the maximum height limit or floor area ratio applicable to any zoning district. This option would add the underlined language to Section 615 of the City Charter to read as follows: Option 2 - limits height and FAR increases in the LUCE and Specific Plans 615. Adoption of ordinances and resolutions. With the sole exception of ordinances which take effect upon adoption, hereinafter referred to, no ordinance shall be adopted by the City Council on the day of its introduction, nor within five days thereafter, nor at any time other than at a regular or adjourned regular meeting. At the time of adoption of an ordinance or resolution it shall be read in full, unless, after the reading of the title thereof, the further reading thereof is waived by unanimous consent of the City Councilmembers present. In the event 5 of 8 that any ordinance is altered after its introduction, the same shall not be finally adopted except at a regular or adjourned regular meeting, held not less than five days after the date upon which such ordinance was so altered. The correction of typographical or clerical errors shall not constitute the making of an alteration within the meaning of the foregoing sentence. No order for the payment of money shall be adopted or made at any other than a regular or adjourned regular meeting. The affirmative votes of at least four members of the City Council shall be required for the enactment of any ordinance or resolution, or for the making or approving of any order for the payment of money. The affirmative votes of at least five members of the City Council shall be required for the adoption of any amendment to the (a) the Land Use and Circulation Element or (b) any specific plan adopted pursuant to Chapter 9.45 of the Municipal Code, where that amendment would increase the maximum height limit or floor area ratio applicable to any zoning district. Emergency Ordinances. Any ordinance declared by the City Council to be necessary as an emergency measure for preserving the public peace, health or safety and containing a statement of the reasons for its urgency, may be introduced and adopted at one and the same meeting if passed by at least five affirmative votes. The language contained in this option would allow projects to exceed the zoning ordinance standards through a Development Agreement without a super-majority, but only if the project is consistent with the LUCE and any applicable Specific Plan. In other words, changes to the governing rules and regulations would require super -majority approval, but, in situations where the LUCE allows Tier 3 projects through the approval of a Development Agreement, a super-majority would not be required. 6 of 8 Option 3 Option 3 would require a super-majority for any project that requires an amendment to the Land Use and Circulation Element (LUCE), any specific plan adopted pursuant to Chapter 9.45 of the Municipal Code, or the City of Santa Monica Comprehensive Zoning Ordinance as set forth in Article 9 of the Municipal Code, where that amendment would increase the maximum height limit or floor area ratio applicable to any zoning district. However, this super-majority provision would not apply to any Established Large Sites Overlay project that complies with Section 9.10.080 of the Downtown Community Plan. This option would add the underlined language to Section 615 of the City Charter to read as follows: Option 3 - limits height and FAR increases in the LUCE, Specific Plan or the Zoning Code 615. Adoption of ordinances and resolutions. With the sole exception of ordinances which take effect upon adoption, hereinafter referred to, no ordinance shall be adopted by the City Council on the day of its introduction, nor within five days thereafter, nor at any time other than at a regular or adjourned regular meeting. At the time of adoption of an ordinance or resolution it shall be read in full, unless, after the reading of the title thereof, the further reading thereof is waived by unanimous consent of the City Councilmembers present. In the event that any ordinance is altered after its introduction, the same shall not be finally adopted except at a regular or adjourned regular meeting, held not less than five days after the date upon which such ordinance was so altered. The correction of typographical or clerical error s shall not constitute the making of an alteration within the meaning of the foregoing sentence. No order for the payment of money shall be adopted or made at any other than a regular or adjourned regular meeting. The affirmative votes of at least four members of the City Council shall be 7 of 8 required for the enactment of any ordinance or resolution, or for the making or approving of any order for the payment of money. The affirmative votes of at least five members of the City Council shall be required for the adoption of any amendment to (a) the Land Use and Circulation Element, (b) any specific plan adopted pursuant to Chapter 9.45 of the Municipal Code, or (c) the City of Santa Monica Comprehensive Zoning Ordinance as set forth in Article 9 of the Municipal Code, where that amendment would increase the maximum height limit or floor area ratio applicable to any zoning district; provided, however, that this super-majority provision would not apply to any Established Large Sites Overlay project that complies with Section 9.10.080 of the Downtown Community Plan. Emergency Ordinances. Any ordinance declared by the City Council to be necessary as an emergency measure for preserving the public peace, health or safety and containing a statement of the reasons for its urgency, may be introduced and adopted at one and the same meeting if passed by at least five affirmative votes. The language contained in this option would require a super-majority for any project that exceeds the height and FAR allowance contained in the Zoning Ordinance. Therefore, Tier 3 projects located in the few areas that still allow Tier 3 development would be required to obtain a Development Agreement and achieve a super -majority vote from City Council. The proposed language in this option specifically exempts the Established Large Sites contained in the Downtown Community Plan area because the determination to allow projects on these sites to reach a height up to 130’ through the approval of a Development Agreement was thoroughly vetted during the Downtown Community Plan outreach process and the requirement for a Development Agreement allows the approvals to be brought before the voters through the referendum process. 8 of 8 Financial Impacts & Budget Actions If the Council were to choose to place a measure on the ballot, the cost of the ballot measure would be incurred as part of the elections budget of $513,981 in the Records & Election Services (City Clerk) Department. Prepared By: David Martin, Director Approved Forwarded to Council Attachments: A. Powerpoint Presentation TYPES OF POTENTIAL COUNCIL ACTIONS OPTION 1 (Status Quo)OPTION 2 OPTION 3 Amendments to increase height or FAR in LUCE, DCP and BAP Amendments to increase height or FAR in zoning ordinance Approval of tier 3 development agreements where development exceeds height or FAR in Zoning Ordinance Approval of established large site development agreements COUNCIL MAJORITY COUNCIL SUPER MAJORITY