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O2703City Council Meeting: May 10, 2022 Santa Monica, California ORDINANCE NUMBER 2703 (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA TO AMEND THE TEXT OF THE CITY’S ZONING ORDINANCE TO ESTABLISH A CONDITIONAL USE PERMIT REQUIREMENT TO ALLOW A LAWFUL NONCONFORMING HOTEL RESTAURANT LOCATED WITHIN THE R2 OR R3 ZONING DISTRICT THAT MEETS MINIMUM REQUIREMENTS TO PROVIDE MEAL AND ALCOHOL SERVICE TO THE GENERAL PUBLIC WHEREAS, on October 7, 2020 and April 19, 2021, the Oceana hotel filed applications for two Conditional Use Permits, 20ENT-0237 and 21ENT-0090, to provide meal and alcohol services offered by the Oceana Hotel’s existing onsite restaurant to the general public; and WHEREAS, also on October 7, 2020, in accordance with Santa Monica Municipal Code Section 9.46.030(C), the Oceana filed an application for a text amendment, 20ENT- 0236, to establish a Conditional Use Permit requirement to allow a lawful nonconforming hotel restaurant located in the R2 or R3 District that meets minimum requirements to provide meal and alcohol service to the general public; and WHEREAS, hotel uses have been in existence in the R2 and R3 zoning districts since at least 1958; and WHEREAS, on September 25, 1990, the City Council adopted Ordinance Number 1543 (CCS), which prohibited hotel uses in certain areas of the R2 and R3 Districts and provided that those uses would be subject to termination within 20 years; and 1 DocuSign Envelope ID: 238817A0-D5F2-49A2-BF5C-6E4B76C1341A 2 WHEREAS, on November 28, 1995, the City Council adopted Ordinance Number 1832 (CCS), which established that even though hotels were not permitted in the R2 and R3 Districts, hotels in existence as of January 1, 1995, or their replacement, would be considered permitted uses, subject to certain standards and limitations, and that such hotels were permitted to increase the number of rooms by five percent or five rooms, whichever is less; and WHEREAS, on December 5, 2006, the City Council adopted Ordinance Number 2213 (CCS), which increased the limitation on the number of guest rooms that could be added to a hotel existing as of January 1, 1995 in the R2 and R3 Districts to twenty-five percent, or fifteen rooms, whichever is less; 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, the Zoning Ordinance reclassified hotels in R2 and R3 Districts in existence as of January 1, 1995 as lawful nonconforming uses, subject to the provisions of Santa Monica Municipal Code Section 9.27.050, including a prohibition against a substantial change in mode or character of the lawful nonconforming use; and WHEREAS, hotels located in the R2 and R3 Districts as of January 1, 1995 have become known and long-standing neighborhood features; and WHEREAS, allowing lawful nonconforming restaurant uses in those hotels that had received a Conditional Use Permit to serve alcohol as of the adoption of the Zoning Ordinance to serve the general public will expand the local-serving uses available to the neighborhood within walk or short distance away; and DocuSign Envelope ID: 238817A0-D5F2-49A2-BF5C-6E4B76C1341A 3 WHEREAS, establishing a Conditional Use Permit requirement for such an expansion to general public use will provide a discretionary public hearing process to review the necessity of requiring special conditions to manage and avoid potential impacts to the surrounding neighborhood and to further safeguard the residents and protect the integrity of the neighborhood while providing residents the opportunity to enjoy expanded goods and services in and around the neighborhood; and WHEREAS, on June 9, 2021, in accordance with Santa Monica Municipal Code Section 9.46.060(D), the Planning Commission conducted a duly noticed public hearing to consider its recommendations to the City Council, and, after considering oral and written testimony, a motion to adopt a resolution recommending that the City Council amend the text of the Zoning Ordinance to establish a conditional use permit requirement to allow a lawful nonconforming hotel restaurant located within the R2 or R3 Districts that meets minimum requirements to provide meal and alcohol services to the general public failed on a 3-3 vote, resulting in a technical denial of the recommendation; and WHEREAS, on April 26, 2022, the City Council conducted a duly noticed hearing to consider the findings and recommendations of the Planning Commission, and desires to adopt the proposed Zoning Ordinance amendments set forth below. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Based upon the oral and written testimony presented to the City Council at the public hearing on April 26, 2022 regarding the proposed changes to the text of the Zoning Ordinance, the City Council hereby makes the following findings: DocuSign Envelope ID: 238817A0-D5F2-49A2-BF5C-6E4B76C1341A 4 1. The Zoning Ordinance amendment is consistent in principle with the General Plan and any applicable Specific Plan, in particular Citywide and Neighborhood goals and policies of the Land Use Circulation Element (LUCE) adopted on July 6, 2010. Goal LU3, Policies LU3.3, LU4.2, and Goal N3, Policies N3.1 seek to focus on creating local-serving uses, particularly uses that serve residents’ daily needs and are located within easy walking distance in order to reduce the frequency and length of trips. Goal N3.2 seeks to allow and support small-scale retail uses in neighborhoods with a land use designation of Low-Density Residential, Medium-Density Residential or High-Density Housing. The Oceana Hotel was constructed in 1957 and has been continuously operated as a hotel at this location since 1958 in the R3 (Medium Density Residential) Zoning District. The request to amend Article 9 of the Municipal Code, specifically Chapter 9.08, Table 9.08.020: Land Use Regulations to permit an existing hotel’s onsite restaurant in the R2 and R3 Zoning Districts to open up to the public as a Limited use is consistent with the above-mentioned goals and policies provided three criteria are met and by way of a new Conditional Use Permit application. The existing 1,556 SF restaurant is a guest amenity providing meal and drinks services to hotel guests only. While expanding its services as a publicly-accessible restaurant, it will continue to provide the same services to hotel guests while allowing nearby residents to dine at the restaurant. As a known and long-standing neighborhood feature, the DocuSign Envelope ID: 238817A0-D5F2-49A2-BF5C-6E4B76C1341A 5 restaurant will expand the local-serving uses available to the neighborhood within walk or short distance away. Finally, the subject text amendment creates a new Conditional Use Permit requirement to open an existing restaurant to the public in the R2 and R3 Zoning Districts which provides a discretionary public hearing process to review the necessity of requiring special conditions to manage and avoid potential impacts to the surrounding neighborhood; this is consistent with the LUCE Goal N9 which emphasizes the importance of protecting, preserving, and enhancing the Wilshire- Montana residential neighborhood where the subject property is located. 2. The proposed ordinance amendment is consistent with the purpose of the Zoning Ordinance to promote the growth of the City in an orderly manner and to promote and protect the public health, safety, and general welfare in that the hotel and its existing restaurant has been operating at this location since 1958 and among its residential neighbors without causing adverse impacts to the surrounding neighborhood. The proposed ordinance amendment would permit an existing hotel to request to open its existing onsite restaurant to the public provided that certain criteria are met that are included to ensure that the existing use is an established feature in the neighborhood. The proposed text amendment creates a new Conditional Use Permit requirement to review the necessity of requiring special conditions to manage and avoid potential impacts to the surrounding neighborhood to further safeguard the residents and protect DocuSign Envelope ID: 238817A0-D5F2-49A2-BF5C-6E4B76C1341A 6 the integrity of the neighborhood while providing residents the opportunity to enjoy expanded goods and services in and around the neighborhood. SECTION 2. Santa Monica Municipal Code Section 9.08.020 is hereby amended to read as follows: 9.08.020 Land Use Regulations Table 9.08.020 prescribes the land use regulations for Multi-Unit Residential Districts. The regulations for each district are established by letter designations listed below. These designations apply strictly to the permissibility of land uses; applications for buildings or structures may require discretionary review. “P” designates permitted uses. “L(#)” designates limited uses, which are permitted by right, provided they comply with specific limitations listed at the end of the table. “CUP” designates use classifications that are permitted after review and approval of a Conditional Use Permit. “MUP” designates use classifications that are permitted after review and approval of a Minor Use Permit. “–” designates uses that are not permitted. Land uses are defined in Chapter 9.51, Use Classifications. Use classifications and sub- classifications not listed in the table are prohibited. Accessory uses are permissible when they are determined by the Zoning Administrator to be necessary and customarily associated with and appropriate, incidental, and subordinate to, the principal uses and which are consistent and not more disturbing or disruptive than permitted uses. The table DocuSign Envelope ID: 238817A0-D5F2-49A2-BF5C-6E4B76C1341A 7 also notes additional use regulations that apply to various uses. Section numbers in the right-hand column refer to other Sections of this Ordinance. TABLE 9.08.020: LAND USE REGULATIONS—MULTI-UNIT RESIDENTIAL DISTRICTS Use Classification *For uses within specified areas, see Section 9.08.030(A) R2* R3* R4 Additional Regulations Residential Uses Residential Housing Types See sub-classifications below. Single Unit Dwelling P P P Accessory Dwelling Unit P P P Section 9.31.025, Accessory Dwelling Units and Junior Accessory Dwelling Units Junior Accessory Dwelling Unit P P P Section 9.31.025, Accessory Dwelling Units and Junior Accessory Dwelling Units Duplex P P P Multiple-Unit Structure P P P Senior Citizen Multiple-Unit Residential P P P Single-Room Occupancy Housing P P P Group Residential MUP MUP MUP Congregate Housing P P P Senior Group Residential P P P Section 9.31.310, Senior Group Residential Elderly and Long-Term Care CUP CUP CUP Emergency Shelters – CUP CUP Section 9.31.130, Emergency Shelters Family Day Care See sub-classifications below. Large P P P Section 9.31.140, Family Day Care, Large Small P P P Residential Facilities See sub-classifications below. Residential Care, General MUP MUP MUP Section 9.31.270, Residential Care Facilities Residential Care, Limited P P P Section 9.31.270, Residential Care Facilities Residential Care, Senior L (2)/MUP L (2)/MUP L (2)/MUP Section 9.31.270, Residential Care Facilities Hospice, General MUP MUP MUP Hospice, Limited P P P Supportive Housing P P P Transitional Housing P P P Public and Semi-Public Uses Adult Day Care CUP CUP CUP Child Care and Early Education CUP CUP CUP Section 9.31.120, Child Care DocuSign Envelope ID: 238817A0-D5F2-49A2-BF5C-6E4B76C1341A 8 TABLE 9.08.020: LAND USE REGULATIONS—MULTI-UNIT RESIDENTIAL DISTRICTS Use Classification *For uses within specified areas, see Section 9.08.030(A) R2* R3* R4 Additional Regulations Facilities and Early Education Facilities Community Assembly CUP CUP CUP Community Gardens P P P Cultural Facilities CUP CUP CUP Limited to Designated Landmarks Park and Recreations Facilities, Public P P P Schools, Public or Private CUP CUP CUP Commercial Uses Automobile/Vehicle Sales and Services See sub-classifications below. Automobile Storage Use CUP (3) CUP (3) – Section 9.31.070, Automobile/Vehicle Sales, Leasing, and Storage Automobile/Vehicle Sales and Leasing L (4)/CUP L (4)/CUP – Section 9.31.070, Automobile/Vehicle Sales, Leasing, and Storage Food and Beverage Sales See sub-classifications below. General Market CUP (5) CUP (5) CUP (5) Section 9.31.040, Alcoholic Beverage Sales Section 9.31.150, General Markets in Residential Districts Lodging See sub-classifications below. Bed and Breakfast CUP CUP CUP Within Designated Landmarks only. Section 9.31.090, Bed and Breakfasts Hotels and Motels – – CUP Hotels and Motels established prior to January 1, 1995 with an existing onsite restaurant that intends to open to the public L(10)/CUP L(10)/CUP Mobile Food Truck Off-Street Venues – MUP (7) – Section 9.31.190, Mobile Food Truck Off-Street Venues Personal Services, Physical Training – L (9) – Retail Sales See sub-classifications below. General Retail Sales, Small-Scale – CUP (8) – Transportation, Communication, and Utilities Uses City Bikeshare Facility P P P Utilities, Minor P P P Specific Limitations: (1) Reserved. (2) Facilities for 6 or fewer residents are permitted by right. Other facilities require approval of a Minor Use Permit. (3) Limited to automobile storage use associated with and adjacent to existing auto dealerships that were legally established before July 6, 2010, and according to the standards of Section 9.31.070, Automobile/Vehicle Sales, Leasing, and Storage. (4) Auto dealership uses existing as of July 6, 2010 are considered permitted uses. Expansions to existing dealerships in residential zones are subject to approval of a Conditional Use Permit and must conform to the standards in Section 9.31.070, Automobile/Vehicle Sales, Leasing, and Storage. New auto dealerships and expansions of existing dealerships inconsistent with Section 9.31.070 are prohibited. DocuSign Envelope ID: 238817A0-D5F2-49A2-BF5C-6E4B76C1341A 9 TABLE 9.08.020: LAND USE REGULATIONS—MULTI-UNIT RESIDENTIAL DISTRICTS Use Classification *For uses within specified areas, see Section 9.08.030(A) R2* R3* R4 Additional Regulations (5) Only stores up to 2,500 square feet may be allowed with approval of a Conditional Use Permit. Stores must be located at least 300 feet from another retail food and beverage services use. (6) Reserved. (7) Mobile food truck off-street venues shall only be located on the R3A overlay parcels located between Ocean Park Boulevard and Hill Street along the east side of Neilson Way. (8) Limited to bicycle and skate rental facilities along Ocean Front. Other general retail sales uses are not permitted. (9) Limited to youth-serving studios of less than 3,000 square feet offering performing arts, dance, martial arts, physical exercise, and similar types of instruction in buildings designed and constructed for commercial purposes across an alley from the Downtown district subject to a passenger loading and drop-off plan to be reviewed and approved by the Director. (10) An existing hotel use in the R2 or R3 District that includes an onsite restaurant that provides meal service for hotel guests and their visitors, and has an existing Alcohol Conditional Use Permit allowing for the service of alcohol to guests and their visitors for onsite consumption, shall be required to obtain a Conditional Use Permit to allow the existing onsite restaurant to provide meal service to the general public, and may seek to amend its existing Alcohol Conditional Use Permit, if (or when) applicable, to allow the existing hotel restaurant to serve alcoholic beverages to the general public, provided that: 1. The hotel use was established and in existence as of January 1, 1995; 2. The Alcohol Conditional Use Permit allowing the onsite service of alcoholic beverages to hotel guests and their visitors in guest rooms and in certain common areas was approved by the City prior to July 23, 2015; and 3. The hotel’s existing restaurant prepares meals from a set menu to order in an existing hotel kitchen for consumption on the premises; provides sit down meal service during restaurant operating hours for breakfast, lunch, and dinner; and the hotel’s ancillary onsite restaurant use has existed since prior to July 23, 2015. SECTION 3. Any provision of the Municipal Code or appendices 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. DocuSign Envelope ID: 238817A0-D5F2-49A2-BF5C-6E4B76C1341A 10 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 30 days from its adoption. APPROVED AS TO FORM: _______________________ SUSAN Y. COLA Interim City Attorney DocuSign Envelope ID: 238817A0-D5F2-49A2-BF5C-6E4B76C1341A Approved and adopted this 10th day of May, 2022. _____________________________ Kristin McCowan, Mayor Pro Tem 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. 2703 (CCS) had its introduction on April 26, 2022 and was adopted at the Santa Monica City Council meeting held on May 10, 2022, by the following vote: AYES: Councilmembers de la Torre, Brock, Negrete, Davis Mayor Pro Tem McCowan NOES: None ABSENT: Councilmember Parra, Mayor Himmelrich ATTEST: _____________________________________ _________________ Denise Anderson-Warren, City Clerk Date A summary of Ordinance No. 2703 (CCS) was duly published pursuant to California Government Code Section 40806. DocuSign Envelope ID: 238817A0-D5F2-49A2-BF5C-6E4B76C1341A 5/19/2022