SR 11-27-2018 7C
City Council
Report
City Council Meeting: November 27, 2018
Agenda Item: 7.C
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To: Mayor and City Council
From: David Martin, Director, City Planning
Subject: Introduction and Adoption of an Urgency Interim Zoning Ordinance Prohibiting
Fast Food Restaurants on the Third Street Promenade
Recommended Action
Staff recommends that the City Council adopt an urgency Interim Zoning Ordinance
prohibiting fast food restaurants on the Third Street Promenade.
Executive Summary
The Downtown Community Plan (DCP) adopted on July 25, 2017, sets forth a vision for
the continued vitality of the Third Street Promenade as a major public space framed by
retail and restaurant uses that form unique experiences enjoyable to both residents and
visitors. In order to ensure that the Promenade maintains its authentic characteristics
and provides visitors with a distinctive experience not found in most downtown shopping
districts, City Council directed staff to prepare an urgency Interim Zoning Ordinance to
prevent the proliferation of fast food restaurants on the Promenade.
Background
The 2015 Zoning Ordinance Update created new classifications for restaurants that
provided more flexibility in response to the diversity of eating establishments that were
starting to emerge in the market place. With the rise in fast casual dining experiences,
the 2015 Zoning Ordinance update significantly simplified the classifications for
“restaurants” by creating only two categories: “Restaurant, Full Service” and
“Restaurant, Limited-Service and Take-Out.” The “Restaurant, Limited-Service and
Takeout” classification includes fast food restaurants as a possible use.
Prior to the adoption of the Downtown Community Plan, an Interim Zoning Ordinance
was in place that resulted in a temporary prohibition on limited service restaurants only
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on the Promenade. The Downtown Commu nity Plan did not change the classifications
established in the 2015 Zoning Ordinance in an effort to make minimal changes to the
Promenade. Recently, Downtown Santa Monica, Inc. (DTSM) raised concerns about a
potential proliferation of fast food formula restaurants that could change the character
and balance of uses on the Promenade. On August 14, 2018, Council gave direction to
staff to explore methods to limit the proliferation of fast food restaurants on the
Promenade and to return to Council with any necessary ordinance amendments.
The proposed urgency Interim Zoning Ordinance would create a new classification for
fast-food restaurants and temporarily prohibit their establishment on the Promenade.
Of the existing businesses in the BC (Promenade) zone, approximately 32% are eating
or drinking establishments and 68% are retail. The existing restaurant classifications in
the Zoning Ordinance [SMMC Section 9.51.030(B)(8)] divide restaurants into two
categories:
Restaurant, Full-Service. Restaurants providing food and beverage services to
patrons who order and are served while seated and pay after eating. Takeout
service may also be provided. See Division 3, Section 9.31.040, Alcoholic Beverage
Sales, where applicable, for further details.
Restaurant, Limited-Service and Take-Out. Establishments where food and
beverages may be consumed on the premises, taken out, or delivered. This
classification includes cafes, cafeterias, coffee shops, delicatessens, fast -food
restaurants, sandwich shops, limited-service pizza parlors, self-service restaurants,
ice cream and frozen yogurt shops, and snack bars with indoor or outdoor seating
for customers. This classification includes bakeries that have tables for on -site
consumption of products. It excludes catering services that do not sell food or
beverages for on-site consumption (see Commercial Kitchen). See Division 3,
Sections 9.31.040, Alcoholic Beverage Sales, and 9.31.280, Restaurants, Limited-
Service and Take-Out Only, where applicable, for further details.
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Restaurant, Limited-Service and Take-Out includes “fast food restaurants,” which are
currently permitted on the Promenade. Of the 28 existing businesses that serve food,
approximately 19 (68%) are classified in the Restaurant, Limited -Service category and 9
(32%) classified in the Restaurant, Full-Service category.
On May 24, 2016, during the preparation of the Downtown Community Plan, the Council
approved an Interim Zoning Ordinance that, in part, prohibited the conversion of existing
full-service restaurants into limited-service restaurants on the Promenade. The impetus
for this regulation was concern that the loss of full-service restaurants with outdoor
dining may change the nature of the Promenade.
On April 18, May 1, and May 15 of 2018, DTSM hoste d a series of public meetings
under the title “Promenade 3.0” to discuss the future of the Third Street Promenade and
to collect community feedback for possible design and infrastructure upgrades. Roughly
50 community members attended each of the three mee tings and shared what they
would like to see on the street. On June 6, 2018, the Planning Commission participated
in a recap of the DTSM workshops through a walking tour of the Promenade and
discussion about the future of urban retail environments, further setting the stage for the
current “Promenade 3.0” planning effort. On October 9, 2018, Council awarded a
contract for a needs assessment study for the Promenade including identification of a
conceptual design that helps revitalize the Promenade as a walking and shopping
corridor.
Discussion
Fast food restaurants are formula establishments with numerous locations and
standardized features (such as façade, décor, color scheme, signage) dependent on
brand recognition created through the repetition of the same characteristics for each
store in multiple locations. While this consistency breeds familiarity for consumers, it
runs counter to the policies in the DCP that value the retention of Downtown’s
authenticity and desire to encourage local uses and promote unique visitor experiences.
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These policies include:
Policy CCP2.3: “Support Downtown’s role as a visitor destination by encouraging
uses that appeal to both locals and tourists, including food, retail, entertainment
and overnight accommodations.”
Policy CCP3.1: “Seek to maintain and increase locally-based, independent small
retailers that allow residents and employees to meet their daily needs on foot .”
The Promenade’s success has resulted from the creation of an authentic urban retail,
dining and cinema experience. As the retail landscape evolves, the Promenade’s
competitive advantage will depend on the ability to deliver on a range of unique dining,
retail, and entertainment uses with an emphasis on promoting a diverse base of eating
establishments. It is not the intent to create a Promenade experience that could be
found in any number of other Southern California cities. Cities as diverse as Los
Angeles, Truckee, Cotati, San Francisco, and Seaside have adopted some form of
neighborhood or citywide control on fast food restaurants due to similar concerns. If
current regulations continue, there is the potential for small- and medium-sized eating
establishments to be eliminated from the Promenade and replaced only with national
chains, which would decrease the diversity of food offerings to residents and visitors.
This could negatively impact the character and purpose of the Promenade as a
successful public place. The Promenade is a public space that is defined as much by
the uses that frame the space as the urban design elements. The type of uses
influence consumer behavior and the visitor experience. There are also environmental
considerations as fast food generates a significant amount of waste due to dependence
on disposable tableware and packaging.
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Recommended Changes
In order to ensure that there remains a diversity of eating and drinking establishments,
the urgency Interim Zoning Ordinance proposes a new classification for “Restaurant,
Fast Food”, applicable only to the BC (Promenade) zone , as follows:
“Restaurant, Fast Food. Establishments having:
a) more than 150 locations nationwide at the time that the
application for the establishment is deemed complete by the City; and
b) characteristics, including but not limited to, orders placed at
a walk-up window, counter, or machine; payment prior to food consumption; and
food served with disposable, one-time, or limited-use wrapping, containers, or
utensils.
Typically, such establishments may utilize standardized signage or décor,
and permit consumption of food and beverages on the premises within a
short period of time or taken off the premises.
A revised definition of “Restaurant, Limited-Service and Take-Out”, applicable only to
the BC (Promenade) zone, is recommended as follows:
“Establishments that are not considered Restaurant, Fast Food where
food and beverages may be consumed on the premises, taken out, or
delivered. This classification includes cafes, cafeterias, coffee shops,
delicatessens, sandwich shops, limited-service pizza parlors, self-service
restaurants, ice cream and frozen yogurt shops, and snack bars with
indoor or outdoor seating for customers. This classification includes
bakeries that have tables for on-site consumption of products. It excludes
catering services that do not sell food or beverages for on-site
consumption (see Commercial Kitchen). See Division 3,
Sections 9.31.040, Alcoholic Beverage Sales, and 9.31.280, Restaurants,
Limited-Service and Take-Out Only, where applicable, for further details.”
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Effects of Changes
The interim prohibition would apply only to establishments with frontage on the Third
Street Promenade. Fast food restaurants would continue to be allowed in all other
zones citywide. Staff recommends that this interim prohibition be held in place pending
completion of the “Promenade 3.0” visioning process. If fast food restaurants are
allowed to proliferate on the Promenade in the near future, this could negate the ability
to shape land uses and urban design through that planning effort.
Concerns have also been raised that creating an interim prohibition on fast food
restaurants would impact the ability to establish food halls or similar venues on the Third
Street Promenade. As food halls are viewed as an amalgamation of restaurants, there
would not be a limitation on the establishment of food halls, so long as any of the
restaurants did not meet the definition of “Restaurant, Fast Food”. As noted in SMMC
Section 9.10.040 (Land Use Regulations – Downtown Districts), restaurants are a
permitted use on the Third Street Promenade.
Next Steps
In accordance with SMMC Section 9.46.090(D) and Government Code Section 65858,
this ordinance shall become effective immediately upon its adoption and will expire
within forty-five days, or on January 11, 2019. The City Council may extend the urgency
Interim Zoning Ordinance beyond January 11, 2019 for up to 22 months and 15 days for
a total of two years, or until November 26, 2020.
Environmental Analysis
The proposed interim ordinance is categorically exempt f rom the provisions of the
California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the
State Implementation Guidelines (common sense exemption). Based on the evidence
in the record, including, but not limited to, evidence that the interim zoning provisions
represent a temporary change to use standards that would be more restrictive than
existing use standards, it can be seen with certainty that there is no possibility that the
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proposed interim ordinance may have a significant effect o n the environment.
Therefore, no further environmental review under CEQA is required.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action.
Prepared By: Tony Kim, Principal Planner
Approved
Forwarded to Council
Attachments:
A. Ordinance - PCD - Fast Food IZO - 11272018
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City Council Meeting: November 27, 2018 Santa Monica, California
ORDINANCE NUMBER _____ (CCS)
(City Council Series)
AN URGENCY INTERIM ZONING ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SANTA MONICA CREATING USE CLASSIFICATIONS FOR
RESTAURANT, FAST FOOD AND RESTAURANT, LIMITED-SERVICE AND
TAKE-OUT FOR THE BC (THIRD STREET PROMENADE) DISTRICT AND
PROHIBITING RESTAURANT, FAST FOOD IN ESTABLISHMENTS WITH
FRONTAGE ON THE THIRD STREET PROMENADE
WHEREAS, on July 25, 2017, the City Council of the City of Santa Monica
(the “City Council”) adopted the Downtown Community Plan (“DCP”) which sets
forth a vision for the continued vitality of the Third Street Promenade as a major
public space framed by retail and restaurant uses that form unique experiences
enjoyable to both residences and visitors; and
WHEREAS, the DCP values the retention of the Downtown’s authenticity,
encourages local uses, and promotes unique visitor experiences; and
WHEREAS, fast food chains are formula establishments with numerous
locations and standardized features, such as façade, décor, color scheme and
signage, dependent on brand recognition created through repetition of the same
characteristics for each store in multiple locations; and
WHEREAS, fast food chains are currently permitted on the Third Street
Promenade; and
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WHEREAS, while the consistency of fast food chains breeds familiarity with
consumers, a proliferation of fast food chains on the Third Street Promenade is
inconsistent with the stated goals of the DCP to preserve the unique character of
the Third Street Promenade; and
WHEREAS, if current regulations continue, small- and medium-sized dining
establishments could be eliminated from the Promenade and replaced with
duplicative and formulaic chains, decreasing the diversity of food offerings to
residents and visitors, thereby negatively impacting the character and purpose of
the Promenade; and
WHEREAS, fast food restaurants generate a significant amount of waste
due to dependence on disposable tableware and packaging that is not generated
by restaurants that do not rely on disposable packaging and tableware; and
WHEREAS, such disposable packaging and tableware negatively
contribute to pollution of the Santa Monica Bay and the ongoing global crisis of
ocean pollution; and
WHEREAS, Downtown Santa Monica, Inc. has commenced a planning
effort, “Promenade 3.0”, to study the future of the Third Street Promenade; and
WHEREAS, the City has commissioned a needs assessment study for the
Third Street Promenade, including identification of a conceptual design that helps
revitalize the Promenade as a walking and shopping corridor; and
WHEREAS, a proliferation of fast food restaurants on the Promenade
before completion of the planning processes currently underway could negate the
City’s ability to shape land uses and urban design of the Promenade in the future;
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and
WHEREAS, the City Council finds and declares that there is a current and
immediate threat to public health, safety and welfare that requires the adoption of
the proposed ordinance, in that prohibiting fast food restaurants on the Third Street
Promenade on an interim and immediate basis is necessary to protect the unique
character of the Third Street Promenade, reduce waste generated by disposable
tableware and packaging, and allow for planning efforts for the future of the
Promenade to continue.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Interim Zoning Regulations.
A) Use Classifications for Restaurant, Fast Food and Restaurant,
Limited Service and Take-out. The following Nonresidential Use Classifications
shall apply to the BC Promenade District only:
1) Restaurant, Fast Food. Establishments having:
a) more than 150 locations nationwide at the time that the
application for the establishment is deemed complete by the City; and
b) characteristics, including but not limited to, orders
placed at a walk-up window, counter, or machine; payment prior to food
consumption; and food served with disposable, one-time, or limited-use
wrapping, containers, or utensils.
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Typically, such establishments may utilize standardized signage or
décor, and permit consumption of food and beverages on the premises within a
short period of time or taken off the premises.
2) Restaurant, Limited-Service and Take-Out. Establishments that
are not considered Restaurant, Fast Food where food and beverages may be
consumed on the premises, taken out, or delivered. This classification includes
cafes, cafeterias, coffee shops, delicatessens, sandwich shops, limited-service
pizza parlors, self-service restaurants, ice cream and frozen yogurt shops, and
snack bars with indoor or outdoor seating for customers. This classification
includes bakeries that have tables for on-site consumption of products. It excludes
catering services that do not sell food or beverages for on-site consumption (see
Commercial Kitchen). See Division 3, Sections 9.31.040, Alcoholic Beverage
Sales, and 9.31.280, Restaurants, Limited-Service and Take-Out Only, where
applicable, for further details.
B) Prohibited Use. Restaurant, Fast Food shall be prohibited in
establishments with frontage on the Third Street Promenade.
C) Applicability. Any application for a planning entitlement or building
permit, including plan check, determined complete on or before November 27,
2018 shall have a vested right to proceed without complying with this Interim
Zoning Ordinance.
SECTION 2. In accordance with CEQA Guidelines Section 15061(b)(3),
this Interim Zoning Ordinance is exempt from CEQA as it can be seen with
certainty that the proposed ordinance does not have the potential to significantly
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impact the environment. This determination is made based on the record as a
whole, including, but not limited to, evidence that the regulations set forth in this
Interim Zoning Ordinance represent a temporary change to use standards that
would result in more restrictive use standards than existing regulations.
SECTION 3. Any provision of the Santa Monica Municipal Code or any
appendix thereto inconsistent with the provisions of this Ordinance, to the extent
of such inconsistencies and no further, is hereby repealed or modified to that extent
necessary to effect the provisions of this Ordinance.
SECTION 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 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 become effective immediately upon its adoption.
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SECTION 6. This Ordinance shall be of no further force or effect forty-five
days from its effective date, unless it is otherwise extended pursuant to Santa
Monica Municipal Code Section 9.46.090 and Government Code Section 65858.
APPROVED AS TO FORM:
_________________________
LANE DILG
City Attorney