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R112841 City Council Meeting: August 25, 2020 Santa Monica, California RESOLUTION NUMBER 11284 (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING THE DOWNTOWN COMMUNITY PLAN TO REVISE THE DEFINITION OF HOUSING PROJECT AND TO ALLOW TIER 3 HOUSING PROJECTS GREATER THAN 90,000 SQUARE FEET TO BE PROCESSED BY DEVELOPMENT REVIEW PERMIT 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 DCP encourages the development of uses that support a 17 hours a day/7 days a week environment that meets the needs of businesses and residents, including retail goods and services, food stores, restaurants and cafés, hotels, health clubs, entertainment, and comparable uses; and WHEREAS, in the DCP, Downtown housing projects are encouraged to support a strong and economically diverse residential neighborhood component; and WHEREAS, the DCP supports that encouragement by differentiating between housing projects and commercial projects and provides for various incentives for housing DocuSign Envelope ID: 51C24FA6-3002-40F8-B32D-4DACD5D68CEC 2 projects including increasing the thresholds that trigger requirements for greater amounts of process; and WHEREAS, the DCP’s requirements for Downtown housing projects are intended to incentivize and place a priority on the development of housing in Downtown, implement affordable housing requirements that result in a greater number and more diverse unit mix, and ensure greater discretionary review for commercial projects; and WHEREAS, the DCP establishes three application review procedures for housing projects: Administrative Approvals, Development Review Permits, and Development Agreements based on Tier level (1, 2, or 3) and the amount of proposed square footage in a project; and WHEREAS, the DCP requires Tier 3 housing projects greater than 90,000 square feet to be processed by a Development Agreement; and WHEREAS, on December 10, 2019, the City Council conducted a study session on housing policy in part to discuss options for increasing housing production throughout the City with a particular emphasis on incentivizing one hundred percent affordable housing projects and considered whether increasing the thresholds below which ministerial review would be permitted for certain housing projects would further stimulate housing production; and WHEREAS, during its December 10, 2019 study session, the City Council further considered whether increased flexibility in the definition of “Housing Project” for purposes of the incentives and priorities in the DCP would further encourage housing production over commercial development in the Downtown; and DocuSign Envelope ID: 51C24FA6-3002-40F8-B32D-4DACD5D68CEC 3 WHEREAS, on January 15, 2020, the Planning Commission adopted a Resolution of Intention, Resolution Number 20-001 (PCS), declaring its intention to consider recommending to the City Council that the City Council amend the text of the DCP to revise the definition of “Housing Project”; and WHEREAS, on March 10, 2020, the City Council held a public hearing and adopted an Emergency Interim Zoning Ordinance Number 2633 (CCS), authorizing 100% Affordable Housing projects and housing projects compliant with the Housing Accountability Act to be processed by Administrative Approval; and WHEREAS, during its March 10, 2020 discussion, the City Council received testimony requesting that the City consider allowing Tier 3 housing projects located in the DCP area that exceed 90,000 square feet to be processed by Development Review Permit as a further means of stimulating housing production and streamlining the housing project approval process; and. WHEREAS, approval of Tier 3 housing projects greater than 90,000 square feet by Development Review Permit offers greater predictability in both the review process and the requirements for applicants and is likely to decrease overall project costs; and WHEREAS, amending the text of the DCP to allow for the processing of Tier 3 housing projects greater than 90,000 square feet by Development Review Permit will encourage the development of larger housing projects and maximization of housing opportunity, thereby increasing housing production in the Downtown; and WHEREAS, on May 13, 2020, the Planning Commission adopted a Resolution of Intention, Resolution Number 20-010 (PCS), declaring its intention to consider recommending to the City Council that the City Council amend the text of the DCP to DocuSign Envelope ID: 51C24FA6-3002-40F8-B32D-4DACD5D68CEC 4 allow for Tier 3 housing projects greater than 90,000 square feet to be processed by Development Review Permit; and WHEREAS, on May 20, 2020, the Planning Commission conducted a duly noticed public hearing, and after considering oral and written testimony regarding the proposed amendments to the text of the DCP, adopted a Resolution of Recommendation, Resolution Number 20-012 (PCS) recommending to the City Council that the City Council adopt the proposed amendments based on the following finding: The proposed amendments to the text of the Downtown Community Plan (DCP) are consistent with the General Plan in that the amendments implement the LUCE policies to create and support additional housing opportunities through incentives for process and development potential. Specifically, Policy LU11.2 states to expand housing opportunities near transit-rich districts including near Expo Light Rail stations such as within the Transit Adjacent (TA) district and Policy LU11.3 seeks to provide incentives for housing/affordable housing. Further, the proposed amendments support housing production through process incentives and design flexibility for Tier 3 housing projects that are consistent with the DCP and project requirements pursuant to the Zoning Ordinance; and WHEREAS, on August 25, 2020, the City Council conducted a duly noticed public hearing to consider the recommendation of the Planning Commission, and, after considering all oral and written testimony, desires to adopt the proposed amendments to the DCP. DocuSign Envelope ID: 51C24FA6-3002-40F8-B32D-4DACD5D68CEC 5 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. Pursuant to Santa Monica Municipal Code Section 9.45.130, the City Council does hereby amend the Downtown Community Plan as set forth in Exhibit A, attached to this Resolution and incorporated herein by reference. In adopting these amendments, the City Council hereby finds and declares that, based on the oral and written testimony presented to the City Council at the public hearing on August 25, 2020: The proposed amendments to the text of the Downtown Community Plan (DCP) are consistent with the General Plan in that the amendments implement the LUCE policies to create and support additional housing opportunities through incentives for process and development potential. Specifically, Policy LU11.2 states to expand housing opportunities near transit-rich districts including near Expo Light Rail stations such as within the Transit Adjacent (TA) district and Policy LU11.3 seeks to provide incentives for housing/affordable housing. Further, the proposed amendments support housing production through process incentives and design flexibility for Tier 3 housing projects that are consistent with the DCP and project requirements pursuant to the Zoning Ordinance. SECTION 2. If any section, subsection, sentence, clause, or phrase of this Resolution or any amendment to the DCP resulting from this Resolution 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 Resolution or any amendment to the DCP resulting from this Resolution. The City Council hereby declares that it would have passed this Resolution and each and every section, DocuSign Envelope ID: 51C24FA6-3002-40F8-B32D-4DACD5D68CEC 6 subsection, sentence, clause, or phrase of this Resolution and any amendment to the DCP resulting from this Resolution not declared invalid or unconstitutional without regard to whether any portion of this Resolution or any amendment to the DCP resulting from this Resolution would be subsequently declared invalid or unconstitutional. SECTION 3.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: _________________________ GEORGE S. CARDONA Interim City Attorney DocuSign Envelope ID: 51C24FA6-3002-40F8-B32D-4DACD5D68CEC 7 EXHIBIT A CHAPTER AND PAGE(S) PROPOSED AMENDMENTS TO THE DOWNTOWN SPECIFIC PLAN Chapter 2A.4, Entitlement and Tier System, p. 29-30 Development Agreement Projects Development Agreements are used to process specific properties where special conditions of size, shape, geography or existing or desired development require particular attention and additional analysis. This approach allows the city to address the specific physical conditions and challenges posed by these sites and negotiate for significant benefits from larger individual development projects. In the Downtown district, several project types will require a negotiated development agreement, regardless of proposed height and tier, with negotiated community benefits approved by the City Council. Guidelines for on-site benefits that are aligned with the community benefit priorities for Downtown are listed in Table 2A.4. 1. Housing Projects within Transit Adjacent District. Tier 3. Residential projects greater than 90,000 square feet that conform to Tier 3 height and FAR standards shall be required to be processed through a development agreement. 2. Commercial Projects. All Tiers. Non-residential commercial projects greater than 30,000 square feet of floor area shall be required to be processed through a development agreement. Under no circumstances shall projects be considered for increases beyond height or FAR standards set forth in this Plan. All development agreement projects are expected to provide community benefits that contribute to Downtown’s priorities and fees in excess of Tier 3 fee requirements. Table 2A.3 provides guidelines to priority areas that should guide development agreement negotiations. These priority areas are a baseline for further negotiation. DocuSign Envelope ID: 51C24FA6-3002-40F8-B32D-4DACD5D68CEC 8 Chapter 4, Standards and Regulations, p. 177 Section 9.10.050 Application Thresholds Table Housing Project All Other Projects Administrative Approval Projects up to 75,000 sf Development Review Permit Tier 2 greater than 75,000 sf 10,000 – 30,000 sf Tier 3 greater than: between 75,000 and 90,000 sf Development Agreement Tier 3 greater than 90,000 sf Greater than 30,000 sf Chapter 4, Standards and Regulations, p. 177 Section 9.10.050 Application Thresholds Table A. “Housing Project” means a use consisting of any of the following: 1. Residential units only 2. Mixed-use developments consisting of residential and nonresidential uses in which nonresidential uses that do not exceed 25% of the total building square footage and are limited to neighborhood commercial uses and to the first two floors of buildings that are two or more stories 3. Transitional or supportive housing Chapter 4, Standards and Regulations, p. 177 Section 9.10.050 Application Thresholds Table C. Housing Exemptions. The following types of projects are exempt from Development Review Permit requirements: 1. 100% Affordable Housing Projects 2. Tier 2 Housing Projects that meet the definition of “housing development project” under the Housing Accountability Act, Government Code Section 65589.5, (“Housing Accountability Act”) and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete, up to the thresholds established by the Zoning Ordinance. DocuSign Envelope ID: 51C24FA6-3002-40F8-B32D-4DACD5D68CEC Adopted and approved this 25th day of August 2020. __________________________ Kevin McKeown, Mayor I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby certify that Resolution No. 11284 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 25th day of August 2020, by the following vote: AYES: Councilmembers Himmelrich, Davis, Jara, McCowan, Winterer Mayor Pro Tem O’Day, Mayor McKeown NOES: None ABSENT: None ATTEST: _____________________________________ Denise Anderson-Warren, City Clerk DocuSign Envelope ID: 51C24FA6-3002-40F8-B32D-4DACD5D68CEC