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City Council Meeting: September 29, 2020 Santa Monica, California
RESOLUTION NUMBER 11292 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA ADOPTING AN AMENDMENT TO THE UPDATED LOCAL COASTAL
PROGRAM LAND USE PLAN PERTAINING TO NEW DEVELOPMENT LOCATED
AT 1133 OCEAN AVENUE AND 1127-1129 SECOND STREET, IN THE CITY OF
SANTA MONICA
WHEREAS, the California Coastal Act of 1976 (Public Resources Code sections
30000 et seq.) (the “Coastal Act”) provides that each local government lying, in whole or
part, within the coastal zone shall prepare a local coastal program (LCP) for that portion
of the coastal zone within its jurisdiction; and
WHEREAS, LCPs consist of a Land Use Plan (LUP) and Implementation Plan (IP);
and
WHEREAS, an LCP becomes fully certified only after the California Coastal
Commission certifies conformity of the LUP and IP with the policies of the Coastal Act;
and
WHEREAS, the Final Draft LUP describes the planning area’s land use and
environmental conditions, identifies issues, and contains land use policies and maps that
complement adopted City policies and satisfy the intent of the Coastal Act; and
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WHEREAS, upon certification, the LUP policies will form the standard of review for
issuance of coastal development permits (“CDPs”) within the coastal zone; and
WHEREAS, upon certification of the IP, the authority to issue CDPs would be
transferred from the Coastal Commission to the City, except within the area of “original
jurisdiction” as set forth in the Coastal Act; and
WHEREAS, the City adopted its current LUP in 1992, however, the Coastal
Commission only certified the City’s 1992 LUP in part, and never certified a City LCP; and
WHEREAS, because a City LCP has never been certified by the Coastal
Commission, all development proposed in Santa Monica’s Coastal Zone still requires
Coastal Commission approval of any CDP once all City entitlements are obtained; and
WHEREAS, the City obtained a grant from the State of California to update the
City’s LUP for full certification and prepared an updated draft LUP (the “Draft LUP”); and
WHEREAS, the Draft LUP includes a new section of policies that will guide coastal
adaptation for anticipated climate change-induced sea level rise that is already
measurable along California’s coast; and
WHEREAS, the Planning Commission held a study session on the Draft LUP on
March 21, 2018, and the Commissioners and public speakers provided comments on a
variety of policy areas; and
WHEREAS, the final public hearing Draft LUP was released on July 3, 2018; and
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WHEREAS, the Planning Commission held a public hearing on July 18, 2018, to
consider the Draft LUP, and recommended approval of the Draft LUP, as modified by
certain changes attached as an addendum to the Commission’s resolution; and
WHEREAS, the City Council held a public hearing on October 9, 2018, to consider
the Draft LUP, and found that the Draft LUP, as modified by certain changes, is consistent
with the General Plan and Coastal Act policies; and
WHEREAS, pursuant to California Government Code Section 65864 et seq., and
Chapter 9.60 of the Santa Monica Municipal Code (collectively, the “Development
Agreement Statutes”), the City is authorized to enter into binding development
agreements with persons or entities having a legal or equitable interest in real property
for the development of such real property; and
WHEREAS, Ocean Avenue, LLC, a Delaware limited liability company (the
“Developer”) is the owner of approximately 192,063 square feet of land located in the City
of Santa Monica, State of California, commonly known as 1133 Ocean Avenue (the
“Property”), which is currently improved with a 301-room hotel comprised of the following:
(1) the six-story City-designated Landmark Palisades Building, constructed in 1924,
which runs along the northern portion of Second Street and the eastern portion of
California Avenue (the “Palisades Building”), (2) the ten-story Ocean Tower that lies in
the middle portion of the Property, with an elevator tower rising to approximately twelve
stories (the “Existing Ocean Tower”), (3) the two-story Administration Building that
includes meeting and back of house space and is located on the southern portion of the
Property near Second Street (the “Existing Administration Building”), (4) a one-story
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building that houses The Bungalow lounge/bar located between the parking lot on
Wilshire Boulevard and Ocean Avenue and the Ocean Tower, (5) several single-story
and two-story buildings on the northwestern portion of the Property along Ocean Avenue
and California Avenue (the “Existing Bungalows”), (6) 103 parking spaces in two surface
parking lots located adjacent to Wilshire Boulevard, (7) and extensive perimeter walls that
limit pedestrian and visual access to/from the Property; and
WHEREAS, the Moreton Bay Fig Tree, planted in 1879 and landmarked by the
City on August 17, 1976 (the “Moreton Bay Fig Tree”), is also located on the Property;
and
WHEREAS, Developer is also the owner of approximately 15,000 square feet of
land located in the City of Santa Monica, State of California, commonly known as 1127-
1129 Second Street (the “Second Street Property”), which is currently improved with a
surface parking lot with 64 parking spaces that is utilized by the Hotel’s valet parking
operation; and
WHEREAS, the City has included the Property within the Downtown Core land use
designation under the City’s 2010 Land Use and Circulation Element of its General Plan
(the “LUCE”) and LUCE Policy D1.5 designates the Property as one of seven sites in the
Downtown District to focus new investment given its accessibility to transit and ability to
accommodate mixed-use development, contribute to the pedestrian-oriented
environment, and support substantial community benefits; and
WHEREAS, the LUCE did not establish maximum building height limits, floor area
ratios (“FAR”), or other specific development standards (e.g., setbacks and step backs)
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for new buildings within the Downtown Core designation; instead, the LUCE deferred
such standards to a future Downtown specific plan; and
WHEREAS, on April 27, 2011, Developer filed an application for a Development
Agreement, pursuant to Santa Monica Municipal Code (“SMMC”) Section 9.60.020
(the “Development Application”), which was designated by the City as Application No.
011DEV-003 and which proposes a mixed-use hotel/residential project with ground floor
retail and subterranean parking; the originally-filed plans (the “2011 Plans”) proposed,
among other things, 265 hotel rooms, 120 residential condominiums units, a maximum
height of 135 feet and a 2.9 FAR; and
WHEREAS, as further described below, the Development Application was revised
and refined since the initial filing but has always included hotel and pedestrian-oriented
retail/restaurant uses, residential uses, and subterranean parking, as is more fully
described in the development agreement pertaining to the Property (the “Development
Agreement”); and
WHEREAS, the Property is located in the California Coastal Zone. The City’s 1992
LUP is partially certified by the California Coastal Commission. In October 2018, the City
adopted the Local Coastal Program Update, Land Use Plan, Final Draft, October 2018
(“2018 Draft LUP”) to replace the 1992 LUP. The 2018 Draft LUP has been submitted to
the California Coastal Commission for certification but has not been certified as of this
date; and
WHEREAS, on April 27, 2011, Developer filed an application seeking an
amendment to the 1992 LUP (the “1992 LUP Amendment”) and on September 27, 2019
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modified the application to be consistent with the Downtown Community Plan (“DCP”)
and 2018 Draft LUP policies. The 1992 LUP Amendment, as modified, would:
1) Revise 1992 LUP Policy #67 to allow a maximum height of 130 feet
and FAR of 2.6 for the Property;
2) Revise 1992 LUP Policy #68 to clarify the allowed uses at the
Second Street Property include a 100% Affordable Housing Project developed at the
maximum development standards in 1992 LUP Policy #69; and
3) Revise 1992 LUP Policy #69 to allow a maximum height of 60 feet,
2.75 FAR on the Second Street Property and confirm that the development standards
for medium-density multiple family residential areas do not apply to the Second Street
Property; and
WHEREAS, on February 8, 2012, the Planning Commission held a public hearing
to preliminarily review and provide feedback on the 2011 Plans; and
WHEREAS, in March 2012, Developer filed a Landmark application to augment
the 1976 Landmark designation of the Moreton Bay Fig Tree. The Landmarks
Commission held public hearings on the proposed amendment application (12LM-002)
and on January 14, 2013 designated the Palisades Building as a City Landmark and the
Property as a Landmark Parcel. In addition, the Landmarks Commission issued a
Statement of Official Action documenting the following: (i) the Moreton Bay Fig Tree
remains a City Landmark; (ii) the Palisades Building is a City Landmark under Landmarks
Ordinance Criteria 1 and 4; (iii) the Property was described as a Landmark Parcel for its
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long-standing association with tourism and leisure, as well as with historic persons
including one of Santa Monica’s founding fathers; (iv) the other existing buildings on the
Main Property were expressly excluded from the Landmark designation given their
significant past alterations; and (v) no individual elements of the Property’s landscape
(other than the Moreton Bay Fig Tree) are historically significant, however the verdant
landscape character was identified as significant under Criterion 6; and
WHEREAS, on April 24, 2012, the City Council held a public hearing to
preliminarily review and provide feedback on the 2011 Plans; and
WHEREAS, in 2013, the 2011 Plans were revised in response to feedback from
the Planning Commission, City Council and members of the public. The revised 2013
plans (the “2013 Plans”), as compared with the 2011 Plans, included, among other things,
reduced density (2.8 FAR), increased height (maximum height of 262 feet), increased
hotel rooms (280 rooms), and the same maximum number of residential condominiums
(120 units); and
WHEREAS, in August 2017, the City adopted the DCP, a specific plan governing
the Downtown including the Property. The Property is located within both the DCP’s
Ocean Transition District and the Established Large Site (“ELS”) Overlay designations.
The ELS Overlay is provided for three sites in the Downtown that the DCP indicated have
the potential to accommodate significant new development and provide significant
community benefits. The ELS Overlay designation allows any project on the Property to
request approval for development up to 130 feet in height and a 3.0 FAR subject to the
project being processed through a development agreement, as well as compliance with
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other specified requirements. Table 2A.4 of the DCP lists three “preferred” community
benefits for a project on the Property: affordable housing, public open space, and historic
preservation, all of which are components of the current proposed project; and
WHEREAS, after adoption of the DCP, the 2013 Plans were revised to conform
with the DCP. Revised plans filed in 2018 (the “2018 Plans”), as compared with the 2011
and 2013 Plans, included, among other things, reduced density (2.6 FAR), reduced height
(maximum height of 130 feet), reduced number of condominium units (up to 60 units) and
an increased number of hotel rooms (312 rooms); and
WHEREAS, on March 11, 2019, the Landmarks Commission held a public hearing
to preliminarily review and provide feedback on the 2018 Plans; and
WHEREAS, on April 15, 2019, the Architectural Review Board held a public
hearing to preliminarily review and provide feedback on the 2018 Plans; and
WHEREAS, the current proposed project (the “Project”) now includes, among
other things, (1) retention and celebration of the Moreton Bay Fig Tree, (2) preservation
and adaptive reuse of the Palisades Building for hotel uses, (3) a new terraced two to ten-
story building designed around the Moreton Bay Fig Tree with hotel, residential and
ground floor retail/café uses and an above-grade six-floor physical connection to the six-
floor Palisades Building (the “Ocean Building”), (4) a new seven-story building with hotel
uses near the corner of Ocean Avenue and California Avenue with an above-grade six-
floor physical connection to the Palisades Building (the “California Building”), (5)
substantial open space, including publicly-accessible open space, (6) subterranean
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space including for parking, and (7) substantial other project features and community
benefits; and
WHEREAS, the Property is located within Subarea 3B (Ocean Avenue North of
the Pier) in the 1992 LUP. The 2018 Draft LUP reflects the LUCE and DCP policies with
respect to the Property’s development standards. The Property is located within Subarea
5, Downtown District of the 2018 Draft LUP; and
WHEREAS, to aid in the redevelopment of the Property, the City and Developer
desire to allow Developer to demolish the existing improvements except for the Palisades
Building and the Moreton Bay Fig Tree and construct a new mixed-use hotel and
residential project with ground floor retail and subterranean parking; and
WHEREAS, the City prepared and circulated for public review and comment a
Draft Environmental Impact Report (the “DEIR”) pursuant to the California Environmental
Quality Act (“CEQA”) and designated SCH No. 2013047091 to evaluate the Project’s
potential environmental impacts. Following close of the comment period, the City
prepared a Final Environmental Impact Report pursuant to CEQA (the “EIR”); and
WHEREAS, the primary purpose of the Project is to redevelop the Property, which
has been in hotel use for over 100 years, with a new mixed-use hotel/residential project
that preserves and features the Palisades Building and Moreton Bay Fig Tree, is
pedestrian-friendly, includes sufficient on-site parking, retains and creates union jobs, and
includes substantial open space, affordable housing and other benefits to the community
consistent with the LUCE, DCP and 2018 Draft LUP; and
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WHEREAS, the City Council has determined that a development agreement is
appropriate for the proposed development of the Project on the Property; and
WHEREAS, the Development Agreement will (1) eliminate uncertainty in planning
for the Project and result in the orderly development of the Project, (2) assure installation
of necessary improvements on the Property, (3) provide for public infrastructure and
services appropriate to development of the Project, (4) preserve substantial City
discretion in reviewing the Project’s design in accordance with Article 6 of the
Development Agreement, (5) secure for the City improvements that benefit the public, (6)
ensure the provision of community benefits as envisioned in the LUCE and DCP, and
(7) otherwise achieve the goals and purposes for which the Development Agreement
Statutes were enacted; and
WHEREAS, the Development Agreement is consistent with the public health,
safety, and welfare needs of the residents of the City and the surrounding region. The
City has specifically considered and approved the impact and benefits of the development
of the Project on the Property in accordance with the Development Agreement.
Consistent with the DCP, the Project will provide a number of significant project features
and community benefits as set forth in Sections 2.7 and 2.8 of the Development
Agreement; and
WHEREAS, the City Council has found that the provisions of the Development
Agreement are consistent with the relevant provisions of the City’s General Plan,
including the LUCE, the DCP, the 1992 LUP as amended by the 1992 LUP Amendment,
and the 2018 Draft LUP; and
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WHEREAS, on June 9, 2020, Developer filed a vesting tentative tract map
application for the Project (Application No. 20ENT-0153) for airspace and condominium
purposes, to among other things, create a subdivision consisting of Lot 1 for the hotel
(“Lot 1”) and Lot 2 for the residential condominiums (“Lot 2”). The subdivision application
will both (a) allow the residential and commercial components of the Project to be
separately leased, financed and/or sold (potentially in bulk) and (b) allow the residential
condominiums to be separately sold. The tract map submitted with the application (the
“Tract Map”) was designated as VTTM No. 82906; and
WHEREAS, on September 2 and 9, 2020 the City's Planning Commission held a
duly noticed public hearing on the Development Application (as it has been modified), the
EIR, the 1992 LUP Amendment, the Tract Map, and the Development Agreement, and at
such hearing, subject to certain modifications, the Planning Commission recommended
that the City Council certify the EIR and approve the 1992 LUP Amendment, the Project
including the Development Agreement, and the Tract Map; and
WHEREAS, on September 29, 2020, the City Council held a duly noticed public
hearing on the Development Application (as it has been modified), the EIR, the 1992 LUP
Amendment, the Tract Map, and the Development Agreement, and at such hearing the
City certified the EIR and adopted a Statement of Overriding Considerations and
Mitigation Monitoring Plan, and considered this Resolution approving the 1992 LUP
Amendment; and
WHEREAS, the proposed 1992 LUP Amendment is consistent in principle with the
goals, objectives, policies, land uses, and programs specified in the adopted LUCE, DCP,
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1992 LUP, and 2018 Draft LUP. Specifically, the proposed mixed-use hotel project
includes lodging, retail, spa/fitness, and food and beverage uses along with market-rate
and 100% deed restricted affordable residential units in a manner that protects water
quality and does not adversely impact public access to the shoreline and along the coast,
and provides visitor-serving uses on the east side of Ocean Avenue as outlined by the
1992 LUP and 2018 Draft LUP. Specifically, per New Development Policy 64, the subject
property is located on the east side of Ocean Avenue in subarea 3b and shall
accommodate new visitor-serving uses including hotels, restaurants, commercial
recreational uses, and visitor serving retail uses. Residential uses are permitted on upper
floors. Further, the proposed project includes a range of community benefits and also
incorporates a wide range of sustainable design features and commitments into its design
and operations. These include energy and water usage reductions, implementation of a
TDM Program, inclusion of an on-site system for rainwater and greywater capture and
use for project landscaping, and EV vehicle charging infrastructure. The project will
provide a minimum of 42 new deed-restricted affordable housing units and up to 60
market-rate residential units in order to provide more housing opportunities in non-
sensitive Coastal Zone areas. The project includes a significant work of art in the publicly-
accessible open space area on the parcel. The proposed project would redevelop an
existing hotel and surface parking lots and provide a hotel project with total of 312 hotel
rooms, which would be a net increase of 11 additional hotel rooms compared to the
current operating hotel. This project therefore provides more lodging opportunities and
new subterranean parking in the City’s Coastal Zone. The project also provides an
affordable lodging contribution to the City to support the development of more affordable
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lodging in the City’s Coastal Zone. The project also preserves historic features on the
property, and provides lodging that will feature retail, spa/fitness, and food and beverage
uses in different areas of the hotel that would be open to the public. Moreover, the project
will provide community benefits including new affordable housing, publicly-accessible
open space on the parcel, and monetary contributions that would support mobility,
construction of affordable housing, parks and recreation, early childhood initiatives,
historic preservation, and water infrastructure programs in the City. As such, the proposed
project is consistent with the policies applicable to the site as set forth in the both the
1992 LUP and the 2018 Draft LUP; and
WHEREAS, the public health, safety, and general welfare require the adoption of
the proposed 1992 LUP Amendment in that the general welfare of the City is enhanced
when the development of a mixed use hotel project includes both market-rate and 100%
deed restricted affordable housing that will serve a variety of family sizes and income
levels. The proposed project will also increase transient occupancy taxes paid to the City
which will in turn support the general welfare by allowing the City to provided needed
services and programs to the community.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The above referenced recitals are true and correct and incorporated
herein by reference.
SECTION 2. The City Council has reviewed, considered, and hereby adopts the
1992 LUP Amendment as shown in Exhibit A.
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SECTION 3. The City Council hereby certifies that the 1992 LUP, as amended by
the 1992 LUP Amendment, is intended to be carried out in a manner fully consistent with
the California Coastal Act.
SECTION 4. The City Manager is directed to submit the 1992 LUP Amendment
to the Coastal Commission for certification in accordance with the Coastal Act.
SECTION 5. This resolution shall take effect automatically upon Coastal
Commission approval of the 1992 LUP Amendment in whole and without any proposed
modifications; alternatively, this resolution shall take effect upon adoption by the City
Council upon Coastal Commission approval of the 1992 LUP Amendment in part or with
proposed modifications.
APPROVED AS TO FORM:
________________________
GEORGE S. CARDONA
Interim City Attorney
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EXHIBIT A
PROPOSED AMENDMENTS TO PARTIALLY CERTIFIED 1992 LAND USE PLAN
Policy 67. Development standards shall not exceed 3 stories 45 feet, 2.0 F.A.R. on Ocean
Avenue except between Wilshire Boulevard and California Avenue east to Second Street
where the development standards shall not exceed 130 feet and 2.6 F.A.R, well within
the maximum 3.0 FAR for this site in the City's Downtown Community Plan and Local
Coastal Program Update Land Use Plan, Final Draft, October 2018.
Policy 68. The residential area north of Wilshire Boulevard to the north side of Montana Avenue
shall contain medium density residential except that the property located at 1127-1129
Second Street may include a 100% Affordable Housing project developed at the
maximum development standards included in Policy #69. East of Ocean Avenue between
the north side of Montana and the Northern City limits, the area shall consist of single
family residential, and along San Vicente up to the coastal zone boundary low density
residential.
Policy 69. Development in the single-family residential areas shall not exceed two stories, 28 feet in
height and one dwelling unit per parcel. Development in the low-density multiple-family
residential areas shall not exceed two stories, 30 feet in height and a unit density of one
dwelling unit per 1,500 square feet of parcel area. Development in the medium-density
multiple-family residential areas shall not exceed three stories, 35 feet with a flat roof, 40
feet with a pitched roof and a unit density of one dwelling unit per 1,250 square feet of
parcel area. Notwithstanding the foregoing, development of a 100% Affordable Housing
Project at 1127-1129 Second Street shall not exceed 60 feet, 2.75 FAR (and the
development standards for medium-density multiple family residential areas shall not
apply). Development in the high-density multiple-family residential areas shall not exceed
four stories, 45 feet in height with a unit density of one dwelling units per 900 square feet
of parcel area.
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Adopted and approved this 29th day of September 2020.
__________________________
Kevin McKeown, Mayor
I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do
hereby certify that Resolution No. 11292 (CCS) was duly adopted at a meeting of
the Santa Monica City Council held on the 29th day of September 2020, by the
following vote:
AYES: Councilmembers Jara, McCowan, Winterer
Mayor Pro Tem O’Day, Mayor McKeown
NOES: Councilmember Himmelrich
ABSENT: Councilmember Davis
ATTEST:
_____________________________________
Denise Anderson-Warren, City Clerk
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