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R11060City Council Meeting July 25, 2017 RESOLUTION NO. !'"v (CCS) (City Council Series) Santa Monica, California A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA MAKING FINDINGS NECESSARY TO APPROVE THE DOWNTOWN COMMUNITY PLAN PROJECT, ADOPTING A STATEMENT OF OVERRIDING CONSIDERATIONS, AND ADOPTING A MITIGATION MONITORING PLAN WHEREAS, California Government Code Section 65300 et seq. requires that each city adopt a comprehensive, long term general plan for the physical development of the city, a plan which is considered the constitution governing land use; and WHEREAS, the general plan must include a land use element and a circulation element; and WHEREAS, the City of Santa Monica's Land Use and Circulation Element ("LUCE") was adopted by the City Council on July 6, 2010; and WHEREAS, the LUCE designates the proposed general distribution, location, and extent of land uses within the City; and WHEREAS, the LUCE was adopted after an extensive planning process, and addresses neighborhood conservation and enhancement; integrated land use and transportation; proactive congestion management; complete neighborhoods with 1 increased open space; community benefits; quality urban character and form; preservation of historic resources; and growth management; and WHEREAS, the goals and policies of the LUCE set the future direction of the City, including the City's Downtown area, which is generally bounded by Wilshire Boulevard along its northern edge, Lincoln Boulevard along its eastern edge, the 1-10 Freeway to the south, and Ocean Avenue and Palisades Park to the west (collectively referenced herein as the "Downtown Area"); and WHEREAS, the LUCE contemplates the Downtown Core designation of the Downtown Area as a thriving, mixed-use urban environment in which people can live, work, be entertained and culturally enriched; and WHEREAS, the LUCE contemplates that the Downtown Core designation allows for the broadest mix of uses and highest intensity development because it comprises the City's major regional and employment district, with a human -scale and pedestrian orientation at the street level with development intensities lower on the northern and eastern edges in order to transition to the lower -density character of adjacent neighborhoods; and WHEREAS, the LUCE contemplates that specific uses within the Downtown Core as well as development parameters, including height, floor area ratio, setbacks and step backs, will be established by a specific plan; and WHEREAS, the draft Downtown Community Plan ("DCP") is the proposed specific plan for the Downtown Area; and 4 WHEREAS, a Notice of Preparation of a Program Environmental Impact Report for the Downtown Community Plan ("Draft EIR") was issued on September 19, 2013; and WHEREAS, a public scoping hearing for the Draft EIR was held on October 3, 2013, and public comments were received until October 21, 2013; and WHEREAS, a Notice of Completion of the Draft EIR was published on February 3, 2016; and WHEREAS, the Draft EIR was circulated for a 90 -day public review period from February 3, 2016 to May 3, 2016; and WHEREAS, a Recirculated Draft EIR was circulated for a 47 -day public review period from February 1, 2017 to March 20, 2017; and WHEREAS, the Final Environmental Impact Report ("Final EIR") that includes responses to written comments on the Draft EIR, was published in April 2017; and WHEREAS, the Final EIR analyzes the effect of potential land use changes that could occur within the Downtown area through 2030 as a result of the implementation of the DCP, including a review of the range of impacts between Scenario A (development with a cap of 4.73 million square feet of net new floor area) and Scenario B (development with a cap of 3.22 million square feet of net new floor area) plus five alternatives, including the No Project alternative (Alternative #1), the Reduced Project alternative (Alternative #2), the 4th/5th Streets One -Way Streets Circulation Plan (Alternative #3), the Expanded One -Way Street Circulation Plan (Alternative #4), and the Hotel/Tourism-focused alternative (Alternative #5); and i1 WHEREAS, the Final EIR (page 5.0-140) determined that the implementation of Scenario B would be the environmentally superior alternative because it would incrementally reduce potential environmental impacts relative to Scenario A, but implementation of Scenario B would also still achieve all of the goals of the DCP; and WHEREAS, since initiating the planning process for the DCP in 2012, four iterations of the DCP have been introduced; and WHEREAS, the final public hearing draft of the DCP was released to the public at an open house event on April 12, 2017; and WHEREAS, all of the drafts, including the April 12, 2017 draft, represent Scenario B (development with a cap of 3.22 million square feet of net new floor area); and WHEREAS, at the public hearings regarding the DCP, commencing on April 26 and continuing on May 10, 11, 17, 18 and 31, 2017, the Planning Commission received extensive public testimony and written submittals, reviewed and considered City staff presentations and reports, including the Final EIR, and engaged in a lengthy deliberative process; and WHEREAS, after considering all such oral and written testimony at the public hearings on April 26, May 10, 11, 17, 18 and 31, 2017, the Planning Commission adopted Resolution No. 17-006 (PCS) to recommend that the City Council approve the April 12, 2017 draft of the DCP, as modified by certain changes in the Addenda Sheet attached thereto as Exhibit B; and 112 WHEREAS, at the public hearings regarding the DCP on July 10, 11, and 25, 2017, the City Council received extensive public testimony and written submittals, including, without limitation, Planning Commission Resolution No. 17-006 (PCS), and reviewed and considered City staff presentations and reports, including the Final EIR and Errata, dated July 19, 2017 (collectively referenced herein as "the Final EIR"), and engaged in a lengthy deliberative process; and WHEREAS, after considering all such oral and written testimony at the public hearings on July 10, 11, and 25, 2017, the City Council desires to consider approval of the April 12, 2017 draft of the DCP, as modified by certain changes that are reflected in the Errata, dated July 19, 2017 (collectively referenced herein as "the Final Draft DCP"); FV WHEREAS, the City Council has reviewed and considered the contents of the Final EIR in its decision-making process, and independently determined that the Final EIR has been prepared in accordance with the California Environmental Quality Act ("CEQA")(Public Resources Code sections 21000 et seq.) and CEQA guidelines; and WHEREAS, the City Council has certified that: (1) The Final EIR for the Downtown Community Plan ("DCP") has been completed in full compliance with CEQA and CEQA Guidelines; (2) The Final EIR was presented to the City Council as the decision-making body of the lead agency and that the City Council reviewed and considered the information contained in the Final EIR prior to approving the DCP; and 5 (3) The Final EIR reflects the City Council's independent judgment and analysis; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Impacts That Are Less Than Significant Without Mitigation. 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 discussed in the Final EIR (and summarized in Table ES -1 of Volume I of the Final EIR), the City Council finds that impacts of the Downtown Community Plan ("DCP") related to aesthetics/shade & shadow (Final EIR Section 3.3, Errata Attachment B, pages 16-19), geology/soils (Final EIR Section 3.9), greenhouse gas emissions (Final EIR Section 3.8), hydrology/water quality (Final EIR Section 3.9), land use/planning (Final EIR Section 3.12 and Errata, Attachment B, page 20), neighborhood effects (Final EIR Section 3.13), noise (operational)(Final EIR Section 3.14), and population/housing/employment (Final EIR Section 3.15) would be less than significant without mitigation. SECTION 2. Impacts That Are Less Than Significant With Mitigation. 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 DCP can be reduced to less than significant levels. More specifically, significant environmental effects as identified below can feasibly be avoided and have been eliminated or substantially lessened to less than significant levels with the mitigation measures as discussed in the Final EIR (and summarized in Table ES -1 of Volume I of the Final EIR), as set forth, below: 0 (a) Air Quality — Impacts AQ -5, Mitigation Measures AQ -5a, 5b (Final EIR Section 3.4, pages 46-47) (b) Biological Resources — Impacts BIO -1, Mitigation Measure MM BIO -1 (Final EIR Section 3.5, pages 19-21) (c) Cultural Resources —Impacts CR -3, Mitigation Measures MM CR -3a, 3b (Final EIR Section 3.7, pages 43-45) (d) Cultural Resources — Impacts CR -4, Mitigation Measures MM CR -4a, 4b (Final EIR Section 3.7, pages 45-47) (e) Hazardous and Hazardous Materials — Impacts HAZ-2, Mitigation Measures MM HAZ-2a, 2b, 2c, 2d, 2e (Final EIR Section 3.10, pages 21-23 ) (f) Public Services — Impacts PS -1, Mitigation Measure MM PS -1 (Final EIR Section 3.16, pages 13-23, Errata Attachment B, pages 21-22) (g) Public Services — Impacts PS -2, Mitigation Measure MM PS -2 (Final EIR Section 3.16, pages 24-32) (h) Utilities — Impacts U-1, Mitigation Measures MM U-1 (Final EIR Section 3.17, pages 19-24) (i) Utilities - Impacts U-4, Mitigation Measures MM U-1 and MM U-4 (Final EIR Section 3.17, pages 35-39) 0) Transportation and Circulation, Mitigation Measures MM T-1 (Final EIR Section 3.18, pages 46-50) 7 SECTION 3. Significant and Unavoidable Impacts. 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 identified in the Final EIR (and summarized in Table ES -1 of Volume I of the Final EIR), in the areas of air quality (AQ -2, AQ -3), construction effects (CE -1), cultural resources (CR -1), noise (N-2), and traffic (T-3), as setforth, below, cannot feasibly be avoided or mitigated to below a level of significance, however, these impacts are considered to be acceptable when balanced against the economic, legal, social, technological, and other benefits of the DCP as specified in Section 6 of this Resolution: (a) Impacts AQ -2, Mitigation Measures MM HAZ-2, AQ -2 (Final EIR Section 3.4, pages 34-40) 40-43) (b) Impacts AQ -3, Mitigation Measures MM AQ -2 (Final EIR Section 3.4, pages (c) Impacts CE -1, Mitigation Measures MM AQ -2 and MM T-1 (Final EIR Section 3.6, pages 4-7) 36-41) 56-69) (d) Impacts CR -1, Mitigation Measures MM CR -1 (Final EIR Section 3.7, pages (e) Impacts N-2, no feasible mitigation (Final EIR Section 3.14, pages 23-24) (f) Impacts T-3, Mitigation Measures MM T-3 (Final EIR Section 3.18, pages E SECTION 4. Alternatives. Consistent with Sections 15126.6(a) of the CEQA Guidelines, the Final EIR includes a discussion and evaluation of "a reasonable range of alternatives to the project, or to the location of the project, which would feasibly obtain most of the basic objectives of the project but would avoid or substantially lessen any of the significant effects of the project, and evaluate the comparative merits of the alternatives." The Final EIR provides a robust analysis of alternatives that includes the No Project Alternative (Alternative #1) as well as four additional alternatives (Alternatives # 2, 3, 4, and 5). (a) The No Project Alternative (Alternative #1) considers environmental impacts if the DCP is not adopted and the goals, standards, policies, and actions of the plan are not implemented. The significant and unavoidable impacts related to air quality, construction noise, and cultural resources would be similar to the DCP. Under this alternative, none of the DCP's objectives and LUCE goals for the Downtown would be achieved. The No Project Alternative would not implement the DCP's strategies and standards to promote a sustainable and multimodal Downtown. Additionally, this Alternative would not result in the achievement of the City's No Net New P.M. Peak Hour Trips goal. For these reasons, the City Council finds the No Project Alternative will not obtain most of the basic objectives of the project and rejects this alternative. (Final EIR Section 5.0, pages 11-46) (b) The Reduced Project Alternative (Alternative #2) would eliminate Tier 3 development standards for the Downtown. New land uses in the Downtown would be limited to the DCP's Tier 1 and Tier 2 standards, which provide maximum allowable building heights of 50 to 60 feet and FARs of generally 2.25 to 3.5 depending on the io subarea. The significant and unavoidable impacts related to air quality, construction noise, and cultural resources would be similar to the DCP. As a result of reduced development potential in Downtown, development pressure could push new land uses out to more parcels in the Downtown and other areas of the City (e.g., along the boulevards). Opportunities for new housing near housing would be reduced. With future land uses, including housing, being potentially pushed out to other areas of the City that are less accessible to transit, the number of P.M. peak hour trips, daily VMT and VMT per capita could be potentially greater on a citywide basis relative to the DCP. Further, without the Tier 3 height and land use potential, it is anticipated that there would be less opportunity for significant community benefits. As such, it is unlikely that the major transportation investments identified in the DCP (e.g., the east -west connectors through the Big Blue Bus Yards large site and the Olympic Cross-over) would come to fruition. In addition, the program to expand public parking around the periphery of Downtown to reduce trips into the core may also become infeasible or be only partially implemented, due to the loss of development agreement projects. Such transportation would be costly and involves substantial amounts of private property acquisition; it is unclear if these could be achieved absent the level of community benefits that could be provided under the DCP. For these reasons, the City Council rejects this alternative as infeasible. (Final EIR Section 5.0, pages 47-83) (c) The 4th/5th Streets One -Way Streets Circulation Plan Alternative (Alternative #3) would carry forward the same policies, development standards, programs, and design guidelines as the DCP. Additionally, this alternative would convert two existing streets in the Downtown (i.e., 4th Street and 5th Street) to new one-way 10 streets with dedicated contraflow bus transit facilities. The significant and unavoidable impacts related to air quality, construction noise, and historic resources would be similar to the DCP. With respect to circulation and LOS in the Downtown grid, this one-way street operation would require a greater level of intervention on the City's street system and could result in more wayfinding issues, round -the -block travel, and motorist confusion. The increased trip distance resulting from out of direction travel on one-way streets would increase VMT and the number of intersections that a motorist must use to reach their destination. The potential roadway speed advantages of one-way streets is offset by increased intersection demand and distance resulting in similar LOS impacts. Additionally, one-way streets are designed to move vehicles through the network faster — which can result in increased vehicle speeds that create potential safety concerns and uninviting conditions for people walking and biking. For these reasons, the City Council rejects this alternative as infeasible. (Final EIR Section 5.0, pages 84-95) (d) The Expanded One-way Streets Circulation Plan Alternative (Alternative #4) would carry forward the same policies, standards, and program/actions proposed under the DCP. However, the Expanded One -Way Streets Circulation Plan Alternative would convert six existing streets in the Downtown to new one-way streets with additional bus transit enhancements, and bicycle lanes. The significant and unavoidable impacts related to air quality, construction noise, and historic resources would be similar to the DCP. With respect to circulation and LOS in the Downtown grid, this one-way street operation would require a greater level of intervention on the City's street system and could result in more wayfinding issues, round -the -block travel, and motorist confusion. The increased trip distance resulting from out of direction travel on one-way streets would 11 increase VMT and the number of intersections that a motorist must use to reach their destination. The potential roadway speed advantages of one-way streets is offset by increased intersection demand and distance resulting in similar LOS impacts. Additionally, one-way streets are designed to move vehicles through the network faster — which can result in increased vehicle speeds that create potential safety concerns and uninviting conditions for people walking and biking. For these reasons, the City Council rejects this alternative as infeasible. (Final EIR Section 5.0, pages 95-109) (e) The HoteUTourism-focused Land Use Mix Alternative (Alternative #5) would not include the DCP's policies and standards that promote housing (e.g., housing density bonus) in the Downtown. As a result, future land use changes would shift toward commercial rather than mixed-use housing as emphasized in the DCP. Under the Hotel Tourism -focused Land Use Mix Alternative, the significant and unavoidable impacts related to construction air quality, construction noise, and cultural resources would be similar to the DCP. Hotel uses typically generate fewer peak hour trips than other land use types, reducing VMT. However, this would be balanced by the fact that fewer housing opportunities would be located in the vicinity of the job locations which could result in potential incremental increases in citywide P.M. Peak Hour vehicle trips and VMT from commuting workforces. Furthermore, this alternative would not achieve some of the DCP's project objectives, including the objective to ensure that the Downtown includes incentives to provide an array of housing opportunities. For these reasons, the City Council rejects this alternative as infeasible. (Final EIR Section 5.0, pages 109-138) (f) The City Council finds that Scenario B is the environmentally superior alternative because the implementation of Scenario B would incrementally reduce 12 potential environmental impacts relative to Scenario A, but implementation of Scenario B would also still achieve all the goals and objectives of the DCP. (Final EIR Section 5.0, pages 138-141) SECTION 5. Findings. 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 DCP 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. SECTION 6. Statement of Overriding Considerations. The Final EIR found that the DCP would result in significant unavoidable adverse impacts in the areas of air quality, cultural resources, construction effects, noise, and traffic/transportation, as more specifically referenced in Section 3 of this Resolution. 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 finds that the remaining significant and unavoidable impacts of the DCP are acceptable in light of the long-term social, environmental, land use, and other considerations set .forth herein. Specifically, the significant and unavoidable impacts are outweighed by the following benefits: 13 The DCP provides development incentives to increase much needed housing in the Downtown, including 100% affordable housing at range of sizes and affordability levels The DCP provides a substantial amount of deed -restricted affordable housing, reducing the amount of public investment necessary to achieve both Proposition R and Housing Element Regional Housing Needs Assessment obligations The DCP requires enhanced impact fees in the Downtown, including an enhanced Transportation Impact Fee, an enhanced Parks and Recreation Impact Fee, and an enhanced Affordable Housing Commercial Linkage Fee The DCP protects adjacent residential neighborhoods by encouraging the highest intensity of development near the Expo station with reduced development potential at the periphery The DCP provides flexibility for innovation and creativity in architecture and design while enhancing the ground floor pedestrian experience by requiring ground floor building setbacks for outdoor dining and strategically locating both active and neighborhood -serving commercial uses The DCP increases opportunities for historic preservation and adaptive reuse by providing incentives and protections for older buildings that showcase Santa Monica's past The DCP supports Downtown as the City's economic base by removing barriers for change of use and encouraging a broad mix of job opportunities in new and expanding industries such as creative office and co -working spaces, retail, dining, entertainment, and hospitality. The DCP maintains the City's Downtown as an entertainment, cultural, and retail destination and includes policies that support locating a new museum Downtown and encouragement for events, major artworks, live performances, and nighttime venues and activity. The DCP provides avenues for the creation of additional Downtown public and open spaces for community gathering through development standards for private development, negotiated projects, development incentives and management of existing underutilized spaces, and public investments in streets and sidewalks The DCP seeks to improve the wellbeing of the Downtown community by tying performance metrics to data from the City's Wellbeing Project as a means to prioritize youth and senior services, public open space, affordable housing, and many other areas The DCP includes multi -modal strategies to improve mobility in the Downtown and to make transportation options attractive, convenient, affordable and safer, including: o Bicycle improvements including new protected bicycle facilities 15 o Expanded pedestrian network and improvements including widened "signature sidewalks" on Wilshire Boulevard, Ocean Avenue, and Lincoln Boulevard o Investments in public transit for increased convenience o Transportation allowance requirements for all new development o Active participation in the evolving technology influence on transportation including micro -transit, on -demand transit, autonomous vehicles, and regional transportation efforts SECTION 7. Consistent with Public Resources Code Section 21081.6, the City Council adopts the Mitigation Monitoring and Reporting Program, which is included as Table 11-1 of the Final EIR, to mitigate or avoid significant effects of implementing the DCP on the environment, as detailed in Sections 2 and 3 of this Resolution, and to ensure compliance during implementation of the DCP. SECTION 8. The documents which constitute the record of proceedings for approving the DCP are located in the Planning and Community Development Department, 1685 Main Street, Room 212, Santa Monica, California. The custodian of these documents is Rachel Kwok, Environmental Planner. ift SECTION 9. 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: JOSEPH LAWRENCE Interim City Attorney 17 1 Adopted and approved this 25th day of July, 2017. Ted Winterer, Mayor I, Denise Anderson -Warren, City Clerk of the City of Santa Monica, do hereby certify that Resolution No. 11060 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 25th day of July, 2017, by the following vote: AYES: Councilmembers McKeown, Nimmelrich, O'Connor, O'Day, Vazquez, Mayor Pro Tem Davis, Mayor Winterer NOES: None ABSENT: None ATTEST: Denise Anderson -Warren, City Clerk