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O26371 City Council Meeting: May 12, 2020 Santa Monica, California ORDINANCE NUMBER 2637 (CCS) (City Council Series) AN EMERGENCY INTERIM ZONING ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING INTERIM ZONING REGULATIONS FOR ECONOMIC RECOVERY IN THE CITY’S DOWNTOWN, MIXED USE AND COMMERCIAL, EMPLOYMENT, OCEANFRONT, AND PUBLIC AND SEMI-PUBLIC DISTRICTS, EXCLUDING THE AREA INCLUDING AND IMMEDIATELY ADJACENT TO THE THIRD STREET PROMENADE SUBJECT TO DIFFERENT INTERIM ZONING REGULATIONS WHEREAS, on July 6, 2010, the City Council of the City of Santa Monica (the “City Council”) adopted the Land Use and Circulation Element of the City’s General Plan (“LUCE”) which designates the proposed general distribution, location and extent of land uses within the City; and WHEREAS, the City’s new Zoning Ordinance, Chapters 9.01 through 9.52 of Article 9 of the Santa Monica Municipal Code (“Zoning Ordinance”), became effective on July 24, 2015; and WHEREAS, on July 25, 2017, the City Council adopted the Downtown Community Plan (“DCP”) which sets forth the City’s vision of the Downtown as a high quality, mixed-use district offering opportunities for housing for people across the income spectrum, jobs, arts and culture, local serving retail and community and visitor gathering places; and WHEREAS, the City of Santa Monica, due to the COVID-19 pandemic, on March 13, 2020 declared a local emergency and on March 16, 2020 issued an DocuSign Envelope ID: 3CB6B3A9-3916-4DF4-95FC-FA6951A833EC 2 emergency order requiring the closure of a wide range of businesses including bars, nightclubs, on-premises restaurant service, movie theatres, live performance venues, gyms, fitness centers, spas, hair salons, massage parlors, and nail salons; and WHEREAS, on March 19, 2020, California Governor Gavin Newsom issued Executive Order N-33-20 directing all residents of the State of California to heed directives issued by the State Health Officer on the same date instructing all Californians to stay home except as needed to maintain continuity of operations of the federal critical infrastructure sectors; and WHEREAS, on March 19, 2020, the Los Angeles County Department of Public Health issued an enhanced Health Officer Order, the Safer at Home Order for Control of COVID-19, amending and superseding its earlier March 16, 2020, Order, closing all nonessential businesses, and limiting gatherings to 9 people or less; and WHEREAS, on March 21, 2020, the Los Angeles County Department of Public Health issued an enhanced Health Officer Order, the Safer at Home Order for Control of COVID-19, amending and superseding its March 16, 2020, and March 19, 2020 Orders, closing all nonessential businesses and prohibiting gatherings of non-household members; and WHEREAS, the economic impacts of the COVID-19 closure have been devastating to the local Santa Monica economy; and DocuSign Envelope ID: 3CB6B3A9-3916-4DF4-95FC-FA6951A833EC 3 WHEREAS, the hardest hit sectors in Santa Monica include retail and arts/entertainment/leisure, representing the closure of over approximately 1,300 businesses employing approximately 11,000 people; and WHEREAS, those essential businesses that have remained open are operating at a fraction of pre-COVID levels; for example 16 hotels have suspended operations and only 110 restaurants have reported that they are open for take- out/delivery; and WHEREAS, it is clear that the longer the emergency order is in place, the more difficult it will be for small retail and restaurant operators to return and reopen their businesses; and WHEREAS, although the City continues to be in an emergency response phase, an emergency management principle has been established that recovery planning must begin as early as possible to strengthen community resilience while shortening the economic recovery timeline; and WHEREAS, some of the actions that the City has taken during this state of emergency to support local business are: commercial eviction protections; suspension of late fees for City-imposed bills and taxes and parking restrictions in green zones; a website with business resources; and assistance for restaurants and food retailers by allowing sales of alcohol via delivery and takeout, providing flexibility for restaurants to sell groceries, and allowing curbside pickup; and WHEREAS, the City is also building upon the existing Buy Local program and providing free marketing support through an interactive map showing available DocuSign Envelope ID: 3CB6B3A9-3916-4DF4-95FC-FA6951A833EC 4 essential services providers that are open providing an avenue for Santa Monica residents to support local businesses; and WHEREAS, on April 14, 2020, the City Council directed that restructuring city services be prioritized on foundational services, emergency response, and economic recovery; and WHEREAS, the City is beginning an economic recovery strategy that involves a multi-pronged approach focusing on five areas: business retention and reopening; business process and permitting; publicity and marketing, community economic development, re-employment, and local hiring; and federal and state resources; and WHEREAS, it will provide immediate relief and regulatory certainty for businesses citywide that may have interest in looking ahead to make plans for re- opening to take initial steps towards economic recovery that include: modifying alcohol exemption conditions in order to streamline process for alcohol service and provide flexibility in operations for eating establishments; relaxing standards related to legal, nonconforming retail and restaurant uses; relaxing requirements to provide additional parking and new loading spaces for changes of use in existing tenant spaces; eliminating requirements for Conditional Use Permits for restaurants only due to size; and removing the inflexibility caused by a cap of no more than 5 persons allowed for small yoga studios and gyms; and WHEREAS, the City Council finds and declares that a current and immediate threat to the public health, safety, and general welfare exists due to the devastating impact the COVID-19-mandated closure has had on the local DocuSign Envelope ID: 3CB6B3A9-3916-4DF4-95FC-FA6951A833EC 5 economy, and the proposed interim zoning regulations to stimulate economic recovery are necessary to protect the public health, safety, and welfare. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Area Subject to Interim Zoning Regulations. The interim zoning regulations set forth in Section 2 below shall apply to all parcels located in the City’s Downtown, Mixed-Use and Commercial, Employment, Oceanfront, and Public and Semi-Public Districts, except that all parcels in the BC (Promenade) District and all parcels located in that portion of the BC (2nd & 4th Streets) District bounded by 2nd Street to the west, Broadway to the south, 4th Street to the east, and Wilshire Boulevard to the north (collectively the “Third Street Promenade Area”) shall be excluded. The parcels subject to the interim zoning regulations set forth in Section 2 below shall be referred to collectively as the “Citywide Economic Recovery Area”. SECTION 2. Interim Zoning Regulations. The following interim zoning regulations shall apply to the areas subject to this Interim Zoning Ordinance: (a) Interim Land Use Regulations. Notwithstanding anything to the contrary in the land use regulations set forth in Santa Monica Municipal Code Sections 9.10.040, 9.11.020, 9.13.020, 9.14.020, or 9.15.020 the following land use regulations shall apply to the Citywide Economic Recovery Area: (1) Permitted Use - Restaurants Up to 5,000 SF: Restaurant, full service, and restaurant, limited service and take-out of up to 5,000 square feet shall be a permitted use in the Citywide Economic Recovery Area. The DocuSign Envelope ID: 3CB6B3A9-3916-4DF4-95FC-FA6951A833EC 6 permitting of this use in the Citywide Economic Recovery Area shall not exempt premises operating under this use from complying with other regulations, including in particular but not limited to those set forth in Santa Monica Municipal Code Sections 9.31.040, Alcoholic Beverage Sales; 9.31.200, Outdoor Dining and Seating; 9.31.280, Restaurant, Limited Service and Take-Out Only; and 9.31.290, Restaurants With Entertainment. (2) Permitted or Conditional Use - Food halls up to 175 seats: Food halls, as that term is defined by paragraph (g)(2) below, with up to 175 seats shall be a permitted use in the Neighborhood Village, Transit Adjacent, and Ocean Transition Districts in the Downtown Community Plan area and a conditionally permitted use in all other districts in the Citywide Economic Recovery Area. (3) Limitation on restaurant uses on Main Street: Specific limitation (11) as set forth in Table 9.11.020 of Santa Monica Municipal Code Section 9.11.020 limiting restaurant uses on Main Street in the Neighborhood Commercial District shall not apply to restaurants operating as a permitted use on Main Street under paragraph (1) above. (3) Limitation on size and street frontage for tenant spaces: Specific Limitations (2), (17), and (19) as set forth in Table 9.11.020 of Santa Monica Municipal Code Section 9.11.020 limiting the floor area and and linear feet of street frontage for tenant spaces shall only apply to new construction and alterations to existing buildings that result in combination or enlargement of tenant spaces. DocuSign Envelope ID: 3CB6B3A9-3916-4DF4-95FC-FA6951A833EC 7 (b) Abandonment of Legal Nonconforming Eating and Drinking Establishment and Retail Uses. Notwithstanding any provisions of Santa Monica Municipal Code Section 9.27.050(B) to the contrary, the following legal, nonconforming uses may be resumed, reestablished, or reopened, even if that nonconforming use has been abandoned for more than one year, unless a conforming use that meets the applicable requirements of the Zoning Ordinance has been lawfully established in the space previously occupied by the nonconforming use: (1) Restaurant, full service; (2) Restaurant, limited service and take-out; (3) Food hall; (4) General retail sales, small scale; and (5) General retail sales, medium scale. (c) Parking Space Requirements for Changes of Use. Notwithstanding any provisions of Santa Monica Municipal Code Section 9.28.020(B)(2) to the contrary, changes in use that create an increase of 10 or fewer required parking spaces, shall not be required to provide additional on-site automobile parking according to the provisions of Santa Monica Municipal Code Chapter 9.28. For purposes of this paragraph, the number of additional parking spaces required for a change of use shall be calculated in accordance with Santa Monica Municipal Code Section 9.28.080(B)(1), except that if the change of use is a restaurant, the calculation shall be based on the number of square feet in the dining area only, and shall exclude any square feet dedicated to outdoor dining. DocuSign Envelope ID: 3CB6B3A9-3916-4DF4-95FC-FA6951A833EC 8 (d) Offsite Parking Requirements for Food Halls. For application to the Citywide Economic Recovery Area only, the off-street parking requirements set out in Santa Monica Municipal Code Section 9.28.060, shall be modified to provide as follows for Food Halls, as defined by paragraph (g)(2) below: 1. Citywide (Excluding Parking Overlay Area 1, Downtown Community Plan Area, and Bergamot Area Plan Area): 1 space per 300 sq. ft. 2. Parking Overlay Area 1: 1 space per 500 sq. ft. 3. Downtown Community Plan Area (maximum parking allowed): 1 space per 500 sq. ft. (e) Loading Space Requirements for Changes of Use. Notwithstanding any provisions of Santa Monica Municipal Code Section 9.28.080 to the contrary, no building permit shall issue for a change of up to 5,000 square feet in use unless the Director has reviewed and approved a parking and loading operations plan for the proposed change in use. The Director may, in accordance with the requirements of this paragraph, approve a parking and loading operations plan that results in a waiver or reduction in the number and/or dimensions of loading areas and spaces otherwise required under Section 9.28.080. The parking and loading operations plan shall include information as deemed appropriate by the Director for approval, including, but not limited to, plans, prior uses, easements, and other items necessary or relevant to describe existing conditions and the proposed changes in use. The Director may approve a parking and loading operations plan upon a determination that the plan is not in conflict with other DocuSign Envelope ID: 3CB6B3A9-3916-4DF4-95FC-FA6951A833EC 9 project operations and impacts to the public right-of-way, which may include, but not be limited to, impacts to resource, recovery and recycling operations, noise impacts, and public safety concerns. (f) Alcohol Exemption Zoning Conformance Permit. Notwithstanding any provisions of Santa Monica Municipal Code Section 9.31.040(D) to the contrary, the following regulations related to Alcohol Exemption Zoning Conformance Permits shall apply to the Citywide Economic Recovery Area: (1) The following uses that offer alcoholic beverages shall be exempted from the provisions of the Conditional Use Permit requirement of subsection 9.31.040(B) if such a permit is approved in writing by the Director and if the applicant agrees in writing to comply with all of the following criteria and conditions set forth in paragraph 2, below: a. Restaurant, full service; or b. Restaurant, limited service and take-out. (2) The Director shall approve a permit under paragraph 1, above, subject to the following criteria and conditions: a. If a counter service area is provided, food service shall be available at all hours the counter is open for patrons, and the counter area shall not function as a separate bar area. b. Window or other signage visible from the public right- of-way that advertises beer or alcohol shall not be permitted. c. Customers shall be permitted to order meals at all times and at all locations where alcohol is being served. The DocuSign Envelope ID: 3CB6B3A9-3916-4DF4-95FC-FA6951A833EC 10 premises shall serve food to patrons during all hours the premises is open for customers. d. The premises shall maintain a kitchen or food-serving area in which a variety of food is prepared on the premises. e. Take out service shall be only incidental to the primary sit-down use. f. Sale of alcoholic beverages for consumption beyond the premises shall be permitted if authorized by the premises’ California Alcoholic Beverage Control (“ABC”) license. g. No video or other amusement games shall be permitted on the premises. h. Entertainment may only be permitted in the manner set forth in Section 9.31.290, Restaurants with Entertainment. i. The primary use of any outdoor dining area shall be for seated meal service. Patrons who are standing in the outdoor seating area shall not be served. j. The premises shall at all times conduct operations in a manner not detrimental to surrounding properties by reason of lights, noise, activities or other actions. The operator of the premises shall control noisy patrons leaving the premises. k. The permitted hours of alcoholic beverage service shall be 8:00 a.m. to 12:00 a.m. with complete closure and all employees DocuSign Envelope ID: 3CB6B3A9-3916-4DF4-95FC-FA6951A833EC 11 vacated from the building by 1:00 a.m. All alcoholic beverages must be removed from any outdoor dining area no later than 11:00 p.m. Sunday through Thursday. No after-hours operation is permitted. l. Liquor bottle service shall be prohibited. Wine and beer bottle service shall not be available to patrons unless full meal service is provided concurrent with the bottle service. For purposes of this paragraph, ”bottle service” means the service of any full bottle of liquor, wine, or beer of more than 375 ml, along with glass ware, mixers, garnishes, or other items used for the mixing of drinks, which patrons are able to then use to make their own drinks or pour their own wine or beer. All food items shall be available from the premises’ full service menu. m. No organized queuing of patrons at the entry or checking of identification to control entry into and within the premises shall be permitted. There shall not be any age limitation imposed restricting access to any portion of the restaurant. n. The premises shall not organize or participate in organized “pub-crawl” events where participants or customers pre- purchase tickets or tokens to be exchanged for alcoholic beverages at the premises. o. Premises with amplified music shall be required to comply with Chapter 4.12, Noise, of the Santa Monica Municipal Code. DocuSign Envelope ID: 3CB6B3A9-3916-4DF4-95FC-FA6951A833EC 12 p. Prior to occupancy, a security plan for the premises shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues. q. Prior to occupancy, the operator of the premises shall submit a plan for approval by the Director regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol-awareness training program for all employees having contact with the public and shall state management’s policies addressing alcohol consumption and inebriation. The program shall require all employees having contact with the public to complete an ABC-sponsored alcohol awareness training program within 90 days of the effective date of the exemption determination. In the case of new employees, the plan shall require all such new employees to attend an ABC-sponsored alcohol awareness training program within 90 days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved by the Director. The operator of the premises shall provide the City with an annual report regarding compliance with this requirement. The operator of the premises shall be subject to any future Citywide alcohol awareness training program affecting similar establishments. DocuSign Envelope ID: 3CB6B3A9-3916-4DF4-95FC-FA6951A833EC 13 r. Within 30 days from the date of approval of this exemption, the applicant shall provide a copy of the signed exemption to the local office of the ABC. s. Prior to occupancy, the operator of the premises shall submit a plan describing the premises’ designated driver program, which shall be offered by the operator of the premises to the premises’ patrons. The plan shall specify how the operator will inform patrons of the program, such as by offering on the menu a free non- alcoholic drink for every party of two or more ordering alcoholic beverages. t. Notices shall be prominently displayed urging patrons to leave the premises and neighborhood in a quiet, peaceful, and orderly fashion and to not litter or block driveways in the neighborhood. u. Employees of the premises shall walk a 100-foot radius from the premises at some point prior to 30 minutes after closing and shall pick up and dispose of any discarded beverage containers and other trash left by patrons. v. The exemption shall apply to approved and dated plans, a copy of which shall be maintained in the files of the City Planning Division. Project development shall be consistent with such plans, except as otherwise specified in these conditions of approval. DocuSign Envelope ID: 3CB6B3A9-3916-4DF4-95FC-FA6951A833EC 14 Minor amendments to the plans shall be subject to approval by the Director. w. In the event of a conflict between the regulations of this Section and regulations issued by the ABC, the ABC regulations shall control and be deemed to have modified contrary provisions of this Section. (3) With respect to the Director’s decision for an Alcohol Exemption Zoning Conformance Permit for a restaurant with over 50 seats, within 2 business days from the date when the determination has been made concerning the application and posted on the City’s website, the Director shall transmit a notice of determination that summarizes the determination and provides a website link to the Statement of Official Action to the applicant at the address shown on the application and to all property owners and residential and commercial tenants within a radius of 750 feet from the exterior boundaries of the property involved in the application. (g) Interim Use Classifications. For application to the Citywide Economic Recovery Area only, the nonresidential use classifications set out in Santa Monica Municipal Code Section 9.51.030 are modified as follows: (1) Small-Scale Facility. The commercial use classification set out in Santa Monica Municipal Code Section 9.51.030(B)(7)(e) is modified to read as follows: This classification includes small, generally indoor facilities that occupy less than 5,000 square feet of building area, such as DocuSign Envelope ID: 3CB6B3A9-3916-4DF4-95FC-FA6951A833EC 15 billiard parlors, card rooms, game arcades, dance halls, small tennis club facilities, poolrooms, and amusement arcades. (2) Food Hall. There is established a new Food Hall commercial use category as follows: Establishments consisting of three or more individually-licensed businesses within an enclosed building where food and beverages may be consumed on the premises, taken out, or delivered, and may also include small retail venues. Patrons may be served while seated and pay after eating, or orders may be made at a walk-up window, counter, machine, or remotely, and payment made prior to food consumption. Characteristics of food halls include but are not limited to: shared entrance/lobby areas, compartmentalized spaces for individually licensed businesses, shared eating areas, shared restrooms, and shared “back of house” areas (e.g., storage, dishwashing, food preparation). Each compartmentalized space may have access to the exterior of the building, along with outdoor dining and seating areas, which may be shared with other businesses within the establishment. (3) Personal Services, Physical Training. The commercial use classification set out in Santa Monica Municipal Code Section 9.51.030(B)(21)(b) is modified to read as follows: Gyms exercise clubs, or studios offering martial arts, physical exercise, yoga training and similar types of instruction to classes and groups of less than 5,000 square feet. This classification also includes exclusively youth-serving studios of less than 3,000 square feet offering performing arts, dance, martial arts, physical DocuSign Envelope ID: 3CB6B3A9-3916-4DF4-95FC-FA6951A833EC 16 exercise, and similar types of instruction to classes and groups of more than 5 persons. SECTION 3. Any provision of the Santa Monica Municipal Code or any appendix thereto inconsistent with the provisions of this Emergency Interim Zoning 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 Emergency Interim Zoning Ordinance. SECTION 4. If any section, subsection, sentence, clause, or phrase of this Emergency Interim Zoning 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 Emergency Interim Zoning Ordinance. The City Council hereby declares that it would have passed this Emergency Interim Zoning 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 Emergency Interim Zoning Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Emergency Interim Zoning Ordinance shall become effective immediately upon adoption. DocuSign Envelope ID: 3CB6B3A9-3916-4DF4-95FC-FA6951A833EC 17 SECTION 6. This Emergency Interim Zoning Ordinance shall be of no further force or effect after July 12, 2020 unless it is otherwise extended pursuant to Santa Monica Municipal Code Section 9.46.090. APPROVED AS TO FORM: _________________________ GEORGE S. CARDONA Interim City Attorney DocuSign Envelope ID: 3CB6B3A9-3916-4DF4-95FC-FA6951A833EC Approved and adopted this 12th day of May, 2020. _____________________________ K e v i n M c K e o w n , M a y o r State of California ) County of Los Angeles ) ss. City of Santa Monica ) I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Ordinance No. 2637 (CCS) had its introduction and adoption at the Santa Monica City Council meeting held on May 12, 2020, by the following vote: AYES: Councilmembers Davis, Jara, Winterer, Morena, Himmelrich, Mayor Pro Tem O’Day, Mayor McKeown NOES: None ABSENT: None ATTEST: _____________________________________ _________________ Denise Anderson-Warren, City Clerk Date A summary of Ordinance No. 2637 (CCS) was duly published pursuant to California Government Code Section 40806. DocuSign Envelope ID: 3CB6B3A9-3916-4DF4-95FC-FA6951A833EC 5/21/2020