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O2082 (2) f: \atty\m u n i\laws \ba rry\moratori u mextendt020042d -1 . wpd City Council Meeting 6-17-03 Santa Monica, California ORDINANCE NUMBER 2082 (CCS) (City Council Series) AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA EXTENDING A MORATORIUM ON NEW OR EXPANDED RETAIL USES ON THE GROUND FLOOR OF THE THIRD STREET PROMENADE WITH LIMITED EXCEPTIONS THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1 Findings and Purpose. The City Council finds and declares: (a) In 1965, the City Council sought to revitalize its declining downtown business district by closing three blocks of Third Street to vehicular traffic in order to create a pedestrian shopping mall pursuant to the Pedestrian Mall Act. (b)The Third Street Mall did not attract shoppers; and, as a result, retail businesses on the mall failed, and the downtown business district continued to decline. (c) In 1986, the City Council again acted to save its downtown by adopting the Third Street Mall Specific Plan to provide a framework for reviving the Third Street Mall and surrounding areas. (d) The Specific Plan made diversity the foundation of the mall's future, mandating a mixture of uses and activities sufficient to ensure that the mall would attract a diverse group of residents and visitors. 1 (e) Thereafter, the City embarked upon a substantial effort to transform the moribund Third Street Mall into a new kind of public space which would serve as a community gathering place, attract visitors from near and far and define the City's municipal character. The redesign included numerous improvements to the pedestrian street: retail pavilions, landscaping, water elements, public benches, street lamps, and topiary dinosaur sculptures in the central landscaped area of each block. The area was also renamed the Third Street Promenade (f) This space was, from the time of its conception, distinguished from other shopping areas, by the carefully planned and unusual mix of opportunities it afforded, including street performers, sidewalk dining, cinema, bookstores, special events, clothing stores, specialty shops, and night clubs. (g) As conceived, the Third Street Promenade was not simply a shopping mall; it was a place to go for entertainment, company, relaxation, strolling; a place where one could watch jugglers and dancers, dine outdoors, argue politics, listen to music, browse a bookshop, take in a movie and more. (h) Moreover, the Third Street Promenade was planned as a gathering place for all segments of society: children, the elderly, and people from all cultural and economic groups. (i) The plan succeeded, and the Third Street Promenade became a resounding success as a favored destination for local residents Southern Californians and international travelers alike U) As such, it became, and still is, an engine which drives Santa Monica's economy. However, this success has had its costs. 2 (k) The influx of visitors to the Third Street Promenade has brought significant traffic and parking problems. (I) At present, these problems are being addressed by a downtown parking strategy; however, the problem is significant and the options are limited because the area is very small, has been built out for decades and features a mixture of uses, including residential, which is inconsistent with simply building larger and larger parking structures. (m) Also, maintaining the delicate balance of entertainment, restaurants and retail which is the foundation of the Third Street Promenade's success has been an ongoing challenge. (n) Overthe years, market forces have threatened the mix many times; and the City has responded to preserve the Third Street Promenade's unique character through the adoption of laws and polices which promote the general welfare by maintaining the Promenade's eclectic character. (0) In 1996, the City revised the Third Street Mall Specific Plan through the adoption of the Sayside District Specific Plan. A critical objective of this plan remained to "[a]ttract and accommodate a mix of uses" serving residents, visitors and tourists during both daytime and evening hours. To this end, the specific plan established a ten-year projection and plan for the controlled growth of retail outlets on the Third Street Promenade (p) However, the actual growth of retail has far outstripped the planned growth to the point that the ten year projection is already met, just five years into the planning period. 3 (q) Today, there is already approximately 530,000 square feet of retail on the three btodk}nM_~tF~~~ade. arjfl~~ressure to create ~ore reta.ilspaces con. unabated. (r) The massive influx of retail establishments has displaced restaurants and sidewalk dining. (s) Five restaurants were lost in the two years prior to the adoption of the initial interim ordinance and four more have received permits for conversion of restaurant space to retail; frontage devoted to sidewalk dining has shrunk. (t) As reflected by these changes, the balance of uses on the Third Street Promenade is once again threatened; this time by a loss of restaurants and influx of additional retail. If left unchecked, this trend will deprive the Third Street Promenade of its unique character and vitality by rendering it simply a standard shopping mall. (u) The influx of retail not only impacts the mix of establishment located on the Third Street Promenade, it also exacerbates parking and traffic problems (v) Residents and visitors come to the Third Street Promenade for dining and ~~i.~~fo~Glilany hourfj>'!Iln contrast, perso~s Who aresimplyshop~~ stay for shorter periods of time. The result is more people making more trips and thereby placing ever-increasing demands on the downtown's already overtaxed traffic and parking capacities. (w) These increased demands degrade the quality of residents' lives and the desirability of the Third Street Promenade and the City as destinations and thereby threaten the City's welfare 4 (~lMoreover, this t~reat a'ris~~_rne when toUriS~ is in sharp dec1ine andltfte , . ,', ,." State and nation are experiencing an overall economic downtown. (j~~<Frding,,~i'~ o~er to preserve the City's econoofic and SOCial weIt.re, the ~~ d',', ...... ........ , ~...i;"~~fi*...,~ri.1~' proted'.eiijr~'.ij..~ualities a~d vitality .of the ThirdS. i" Promenade by ensuring the best possible mix of restaurants, retail and entertainment. (z) In general, the City must ensure the best possible mix of restaurants, retail and entertainment so that the Promenade remains unusual and attractive and does not become simply an average shopping mall through the continued expansion of retail at the expense of other uses. (aa) Similarly, the City must preserve the outdoor dining opportunities which have become one of the hallmarks of the Promenade. (bb) Exactly how best to accomplish this end is a complex question which will require detailed study, including a review of the specific plan (cc) In light of these concerns, the City Council adopted Ordinance Number 2030 (CCS), a forty-five day ordinance which established a moratorium on new or expanded ground floor retail use on the Third Street Promenade, adopted Ordinance Number 2032 (CCS) which extended Ordinance Number 2030 (CCS) until January 9,2003, and adopted Ordinance Number 2062 (CCS) which extended Ordinance Number 2030 (CCS) until September 9,2003 (dd) After adoption of Ordinance Number 2030 (CCS), the City Council established a Promenade Uses Task Force to study the Promenade issues described herein, to seek feedback and input from the community, and to make recommendations to the City Council regarding the appropriate mix of uses on the Promenade, S ,(......,..~;_~_..ay il\i~".l.mpleted its WOrk;n~rbh 2003. .;'..W!..~~r..I~."i.~;~.~~enade and the DowntoWn, .....ed~levalnt~iW poli~ies COndU~ed community WOrksho~. ~ series of reCOm~ndations for review by .e City Council However, implementation of the measures accepted by the City Council is expected to take at least one year. .,i.the reason~ described above, the City Counqil finds/that there is a cu~t and immediate threat to the public health, safety or welfare and that a continued moratorium on new or expanded ground floor retail use on the Third Street Promenade is ~.~~i'.'~sure that t~e character of the Promenade i~ preservE:Ki during the ~~ period and that the City remains able to ensure that the best possible mix of restaurants, retail and entertainment is achieved. The approval of additional permits related to such retail use on the Third Street Promenade pending the City's completion of its review of its land use policies and regulations would result in a threat to the public health, safety, or welfare since these changes threaten the quality of residents' lives and the desirability of the Third Street Promenade and the City as a destination. The extension of Ordinance Number2030 (CCS), Ordinance Number2032 (CCS), and Ordinance Number2062 (CCS) for a period of two years, up to and including September 9, 2005 will provide the City with the necessary time to further evaluate and undertake appropriate actions to address these impacts. 6 SECTION 2. Moratorium. (~0~._"e~o",~'I.~.~'nce, a mora~m is hereby placed onl~ acceptance for processing of applications for approval of tentative tract maps, tentative parcel maps, administrative approvals, development review permits, conditional use ~r;M.ii"f~rrrla?ce determ.ination~t.~siness fioPn~s, and building ~ ~.~~;;~;expa~d retail u. if lhalt retail use .d iRcrlla$$ either the ~ ~~footag,q;(. total ~quare footage of retail uses on~eground fI~ of any gi~Jn I ;i M~.'~menade by more tnanifive percent (5%) ~yond the total IinearreMn .....- total retail SC;U$re footage that existed on that block of the Promenade aJ ~ ' . i "'j~i.~teo't>~in~nce Numb.if 2030 '~CS) .which ~as extended by Ordin8~ __:~.It and O~inance Number 2062 (CCS). A~OCkis definecfas both'" 'bf...'~eet:PtomenaPeto the alley and the adjacent ~es of adjoining side s~~. ,..;,,:.'t.ii" Street I Promenade to be designated asl a bfock for purposes of ~~ Ordinance are: Block 1: 1200 Block of Third Street Promenade Block 2: 1300 Block of Third Street Promenade Block 3: 1400 Block of Third Street Promenade (b) Subject to Section 3 of this Ordinance, all applications which have not been deemed complete as of November27, 2001, for approval of tentative tract maps, tentative parcel maps, administrative approvals, development review permits, conditional use permits, zoning conformance determinations, business licenses, and building permits related to a new or expanded retail use if that retail use would increase either the total total square footage of retaiJ uses on t~e ground fIoorof any giV~ 7 bfod(01;W;i~''Ilf_i'~i!''r}~!.f;t-e.d the total linear ~il i } -,' . '; .k; . . ", '~'" _":."', '0- . .........! . -"" (-, .' ;" ,'{.' ,....:...'...... . "C " ""', .,:l,( . :.,," .::. ,', ''..:v- ': . ..:......,., ',..'. .,....:.f........:.- :. ,',' ,,', ....::. '. .' '., ~"~_il sq~ar~toota.~.r~~n that ~IOck, of the Promenade a~bf .....'.i~'ldate't1Jrdin'nce set tOrth in Subsection (e) of ~is Section shall be disapproved. "~.'ft';._lllirllear f~tage.~~_lfI>otage of r~iI uses on the ground ttoot'~f .ct1yM~rlli;~en~d....;,~~~~iv..,e of O~.~anee NUmber'2030.(cq+> :.,:',;' ....'....',-,... "-"j. is hereby established as follows: Block 1 961 total linear feet/137 ,980 total square feet Block 2 654 total linear feet/91 ,220 total square feet Block 3 820 total linear feet/114, 193 total square feet bUsihes...~1e allocated any portion 4f ttte five percent (5%) re~ linear or square footage expansion authorized by subsections (a) or (b) of this Section shall be established based on the issuance of a building permit for tenant improvements or the receipt of a business license for the retail use. This priority shall be lost if the building permit expires or the business fails to open within one year after the original business license is issued. SECTION 3. Vested Rights. This Ordinance shall not be applicable if an owner can establish a vested right to develop or operate commercial property otherwise prohibited by Section 2 of this Ordinance. SECTION 4. This Ordinance shall be of no further force and effect after September 9,2005, unless prior to that date, after a public hearing, noticed pursuant to Santa Monica 8 Municipal Code Section 9.04.20.22.050, the City Council, by majority vote, extends this Interim Ordinance. SECTION 5. Any provision of the Santa Monica Municipal Code, appendices thereto, or prior interim ordinance 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 6 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 8. 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 9 newspaper within 15 days after its adoption. This Ordinance shall become effective thirty days after its adoption APPROVED AS TO FORM: ~~!!o~ City Attorney 10 ~ Richard Bloom, Mayor State of California ) County of Los Angeles) ss. City of Santa Monica ) Ayes: Council members: Feinstein, Katz, Genser, Holbrook, O'Connor, Mayor Pro T em McKeown, Mayor Bloom Noes: Council members: None Abstain: Council members: None Absent: Council members: None ATTEST: ~'~' ~~ .ll,- ~ud Maria M. Stewart, City Clerk