SR 03-09-2021 7A
City Council Report
City Council Meeting: March 9, 2021
Agenda Item: 7.A
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To: Mayor and City Council
From: David Martin, Director, City Planning
Subject: Introduction and Adoption of an Emergency Interim Zoning Ordinance to
Establish Temporary Land Use Restrictions Prohibiting Non-Residential
Development Citywide Pending Completion of the Housing Element Update
Recommended Action
Staff recommends that the City Council introduce and adopt an Emergency Interim
Zoning Ordinance temporarily prohibiting, with some exceptions, non-residential
development citywide and single-unit dwellings in commercial zones.
Summary
On January 12, 2021, City Council directed staff to return with proposed emergency
interim zoning regulations to: 1) prohibit 100% non-residential projects of greater than
7,500 square feet (sf) in the Industrial Conservation (“IC”) District with possible
consideration for exceptions such as schools; 2) prohibit single-unit dwellings in any
non-residential zone; and 3) impose additional restrictions to ensure that potential
housing development sites are preserved pending the completion of the Suitable Sites
Analysis and 6th Cycle Housing Element Update.
The Housing Element is required to include a Suitable Sites Inventory (“SSI”), which is a
listing of sites throughout the city that hold realistic potential for housing development
based on a jurisdiction’s Regional Housing Needs Allocation (“RHNA”) number. Staff is
in the process of preparing a draft SSI for the 6th Cycle Housing Element. However, in
recent years, staff has seen an uptick in applications submitted for non-residential
development on potential housing sites in the city’s commercial districts – largely
consisting of office space. The largest amount of office space has been proposed in the
Bergamot Area Plan (“BAP”) area, the Hospital Mixed Use (“HMU”) zone, and the
Industrial Conservation (“IC”) zone. The City’s adopted growth strategy in the Land Use
and Circulation Element (“LUCE”) contemplates housing production along the
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commercial boulevards, which have greatest access to transportation systems. The
LUCE also identifies housing as a permitted use throughout the city with the one
exception being the IC Zone. As parcels are turned over, applicants have increasingly
chosen to pursue non-residential projects instead of housing projects. There is growing
concern that as this trend continues in the context of the Housing Element Update, the
City will be precluded from the opportunity to plan for the possibility of housing on these
parcels. Further, even though the IC Zone has not been an area that has traditionally
accommodated housing; its proximity to the Expo Line, aging building stock, and
availability of larger parcels makes it an area that should be evaluated for housing
potential as part of the Housing Element Update.
In addition to receiving a number of applications for non-residential development on
commercial boulevards in recent years, staff has also received recent inquiries for
single-unit dwellings in commercial zones on the boulevards. While the Zoning
Ordinance has permitted single-unit dwellings in commercial zones for decades, this
allowance does not maximize the housing potential for the limited number of potential
housing sites and therefore, is being re-evaluated in light of the City’s RHNA for the 6th
Cycle housing element.
Given the very large RHNA allocation, and in order to preserve the opportunity to plan
for housing on as many available sites as possible, staff recommends interim zoning
regulations to temporarily suspend new single-unit dwellings in commercial zones and
new non-residential construction citywide with the following exceptions:
• Attached and free-standing additions to existing buildings no larger than the floor
area of the existing building
• Changes of use in existing buildings
• Industrial Conservation zone 500 feet from the I-10 freeway
• Bayside Conservation zone (Promenade and 2nd & 4th Streets)
• Schools including facilities operated by the school
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These exceptions balance the need to temporarily curtail single-unit dwellings and non-
residential development on potential housing sites with continuing support for economic
recovery efforts that have included greater flexibility in changes of use. They also
acknowledge that the areas closest to the I-10 freeway are unlikely to be ideal locations
for housing. The exemption for schools addresses the fundraising challenges and
construction timelines that are unique to schools. As critical infrastructure, school
facilities are complementary to the production of the housing, are generally already
located on property owned by a school, and therefore are unlikely to be realistic housing
production sites.
Background
Every eight years, California cities are required to update their Housing Elements. For
the 2021-2029 planning period (also referred to as the 6th Cycle Housing Element),
Santa Monica received an allocation to plan for 8,873 housing units of which
approximately 70% are affordable housing units. This represents approximately a five-
times increase over the Regional Housing Needs Allocation (“RHNA”) in the current
cycle (2013-2021). Santa Monica’s RHNA allocation is within the context of a declared
statewide housing crisis. The significant focus on affordable housing reflects the
housing needs of the community in light of high housing costs and residents and
workers increasingly unable to afford housing in Santa Monica.
The LUCE was adopted in 2010 with a growth strategy that focused new housing
development in areas with the greatest access to high frequency transportation systems
– the commercial boulevards and the areas surrounding the Expo Light Rail stations –
Downtown, Bergamot, and Memorial Park. As a counterbalance, the LUCE also
established the IC land use designation, which was intended to conserve small light
industrial and service/commercial uses that have traditionally populated the area and
formed part of Santa Monica’s employment base. The IC district also was intended to
support existing and new creative businesses reliant on the affordable workspace
created from adaptive reuse of former industrial buildings. This vision was carried
through the 2015 zoning ordinance update that prohibited housing out of concern that
introducing residential uses would have the potential to increase real estate speculation
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thereby displacing the creative industries and small-scale industrial uses supported by
affordable workspace.
The Zoning Ordinance has also allowed for single-unit dwellings in all zones for
decades. There continue to be very limited pockets where single-unit dwellings exist in
commercial zones in the city, derived from the city’s early settlement patterns. Based on
assessor data, there are currently approximately 232 parcels with single-unit dwellings
in commercial zones.
Discussion
Limited Land Area Available for Housing Projects
The LUCE growth strategy that focused development opportunities in the limited areas
of Downtown, Bergamot and the boulevards represents approximately 12% of the city’s
total land area. As a first step in preparing the SSI analysis, a preliminary sites analysis
has been conducted to filter out parcels that would not likely be potential housing sites
based on the following criteria:
• Parcels with existing Landmarks or Historic Resources
• Parcels that are under construction, have recently completed projects, approved
entitlements, and pending entitlement for commercial uses only
• Parcels that have unique land uses such as hospitals, cemetery, schools, parks,
churches/religious facilities, utilities, government offices, libraries, police/fire
stations, transportation infrastructure/Metro Expo LRT and airport
• Parcels developed with affordable housing and condos
• Parcels with newer buildings developed post 1980
Once the filters were applied, parcels were prioritized for their likelihood to produce
housing resulting in an even smaller subset of parcels representing approximately 3% of
the city’s total land area identified as potentially having the highest housing potential.
Overview of Approved and Pending Non-Residential Projects
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In recent years, staff has received applications for non-residential development on
possible housing sites - predominantly consisting of 319,000 square feet of total office
space, all of which are currently pending. The largest amount of office space has been
proposed in the Bergamot area, the Hospital Mixed Use zone, and the Industrial
Conservation zone. Other pending non-residential projects include a Downtown hotel
and electric vehicle charging facility on two surface parking lots. As a point of
reference, in the past five years, 11 projects consisting of approximately 184,000 square
feet of non-residential uses has been approved including 99,000 square feet of office,
36,000 square feet of retail, and 49,000 square feet of other uses ranging from daycare
to auto dealerships. The majority of these projects (6 of 11) have largely consisted of
additions to existing buildings in the Downtown area.
These development trends are supported by an analysis conducted by HR&A Advisors
in 2019 studying the likelihood that an applicant would choose to pursue a housing
development based on the City’s existing development standards and inclusionary
housing requirements. The analysis demonstrated that at current inclusionary housing
levels for Tier 2 projects on the boulevards (i.e. minimum 15% Very Low Income),
housing projects were less likely than commercial projects to proceed due to lower
height and FAR (resulting in fewer units) and lower rents. The results of the study are
consistent with the recent trends toward applications being filed for non-residential
development instead of housing projects on the boulevards, particularly in areas where
there is no distinction in height and FAR between housing projects and commercial
development.
Proposed Temporary Prohibition on Non-Residential Development
The combination of Santa Monica’s very large RHNA allocation of 8,873 units and with
only 3% of the City’s total land area available as the highest potential for housing, the
turnover of even a handful of sites to non-residential development instead of housing
projects would greatly impact the City’s ability to have sufficient sites for the SSI and
would very likely hamper future Housing Element updates. As a result, a temporary
prohibition on non-residential development is proposed to ensure that the Housing
Element Update has the opportunity to evaluate all available areas of the city for
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housing potential. This would not implicate housing projects meeting the definition of a
housing development project in the Housing Accountability Act. In order to ensure that
potential housing sites are also not underdeveloped, it is also proposed that single-unit
dwellings be temporarily prohibited in all commercial zones.
Staff also considered a temporary prohibition on single-unit dwellings in multi-unit
zones. The purpose of the proposed ordinance is to retain the opportunity to plan for
sites with housing potential for the SSI and therefore, multi-unit residential
neighborhoods are not being prioritized (relative to commercial zones) due to concerns
regarding displacement of existing tenants. However, as a matter of policy, the
continued inclusion of single-unit dwellings as a permitted use in multi-unit zones will be
evaluated as part of the 6th Cycle Housing Element update.
Exceptions to Proposed Ordinance
In order to ensure that there continues to be support for economic recovery efforts from
the impacts of COVID-19, it is proposed that the ordinance not apply to:
• Attached and free-standing additions to existing buildings no larger than the floor
area of the existing building
• Changes of use in existing buildings
• Schools including facilities owned and operated by the school
• Industrial Conservation zone 500 feet from the I-10 freeway
• Bayside Conservation zone (Promenade and 2nd & 4th Streets)
This would allow continued maintenance and investment in existing commercial
buildings that are unlikely to be housing sites while also ensuring that the flexibility in
changes of use afforded by Interim Zoning Ordinance Nos. 2657 (citywide economic
recovery IZO) and 2658 (Promenade economic recovery IZO) remain to support
tenanting of vacancies throughout the city. The exceptions also clarify that building
additions cannot exceed the floor area of the existing building.
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A further exception is proposed for the Industrial Conservation zone for parcels entirely
within 500 feet of the I-10 freeway. This would exempt 125 parcels (out of total 201
total parcels in the IC zone) in an area that has historically not seen development
activity and would be unlikely to have significant turnover.
Figure 1: Map showing parcels in IC Zone exempted from proposed IZO
In addition, the proposed interim zoning regulations would not affect the Bergamot Area
Plan (BAP) area. Because the land use regulations for the BAP are contained in the
plan, rather than the Zoning Ordinance, and any changes to that area would require an
amendment to the BAP. Since the adoption of the BAP, very little development activity
has occurred in the Bergamot area and therefore, staff does not believe that potential
housing sites are at risk of turnover in this area over the next eight months. However,
per Council’s direction, staff will continue to examine potential amendments to the BAP
to encourage housing production as part of the 6th Cycle Housing Element Update.
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Applicability of Proposed Ordinance
Staff proposes that the ordinance apply only to applications submitted after January 12,
2021, which is the date that Council first gave direction to staff to prepare emergency
zoning regulations. This is consistent with the approach the City has taken with respect
to previous interim zoning regulations.
Staff considered a broader applicability to projects that were pending as of January 12,
2021, however, most of these projects have been in process for years and would likely
continue to proceed as non-residential projects. When staff first formulated the filters
for the preliminary SSI, these sites were filtered out for that reason. The purpose of the
ordinance is to provide the opportunity to plan for high potential housing sites, and it is
not clear that capturing pending projects would align with that goal. It is more likely,
given the amount of time these projects have been in process, that the proposed interim
zoning regulations would only have the effect of temporarily delaying one or more of
these projects, rather than incentivizing the property owner to instead convert the site
into a housing project.
Planning Commission Action
The Planning Commission discussed the proposed ordinance at their February 17, 2021
meeting and voted 5-1 to recommend that the Council adopt the proposed interim
ordinance. As part of their deliberations, the Commission held an extensive discussion
on whether housing should be a permitted use in the IC Zone due to its proximity to the
freeway and resultant environmental justice issues. The Commission also noted that
the restrictions on non-residential development should be temporary and used for the
intended purpose of commitments to incentive housing production in the Housing
Element Update.
Environmental Analysis
The proposed IZO is exempt from the provisions of the California Environmental
Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State Implementation
Guidelines (common sense exemption). Based on the evidence in the record, it can be
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seen with certainty that there is no possibility that the proposed changes may have a
significant effect on the environment. The proposed ordinance temporarily restricts new
non-residential development and single-unit dwellings in commercial zones citywide,
and would not result in any changes to current development standards, which were
subject to environmental review at the time of adoption. Changes of use and building
additions may still continue for non-residential development, subject to current land use
regulations and development standards, and their own individual environmental
analysis. Therefore, the proposed IZO would not have an indirect or direct adverse
change on the environment and no further environmental review under CEQA is
required.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action.
Prepared By: Jing Yeo, Planning Manager
Approved
Forwarded to Council
Attachments:
A. Proposed Emergency IZO
B. Written Comments
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City Council Meeting: March 9, 2021 Santa Monica, California
ORDINANCE NUMBER _____ (CCS)
(City Council Series)
AN EMERGENCY INTERIM ZONING ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA TO TEMPORARILY PROHIBIT NON-RESIDENTIAL USES CITYWIDE AND SINGLE-UNIT DWELLINGS IN
COMMERCIAL ZONES TO PRESERVE POTENTIAL HOUSING SITES IN
PREPARATION OF THE 6TH CYCLE HOUSING ELEMENT
WHEREAS, the State is experiencing a housing supply crisis, with housing
demand far outstripping supply; and
WHEREAS, in 2018, California ranked 49th out of the 50 states in housing
units per capita; and
WHEREAS, the housing crisis has particularly exacerbated the need for
affordable homes at prices below market rates; and
WHEREAS, the housing crisis has resulted in increased poverty and
homelessness, especially first-time homelessness, forced lower income residents
into crowded and unsafe housing in urban areas, and forced families into lower
cost new housing in greenfields at the urban-rural interface with longer commute
times and a higher exposure to fire hazard; and
WHEREAS, California needs an estimated 180,000 additional homes
annually to keep up with population growth, and the Governor has called for 3.5
million new homes to be built over 7 years; and
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WHEREAS, the City is in the process of updating the Housing Element to
its General Plan for the 6th Cycle, covering the period from 2021 to 2029; and
WHEREAS, the City has received a Regional Housing Needs Assessment
(“RHNA”) allocation for the 6th Cycle Housing Element of approximately 8,895
housing units, with approximately 70 percent allocated as affordable housing; and
WHEREAS, this RHNA allocation will require the City to permit
approximately 1,000 housing units annually between 2021 and 2029, 700 of which
are required to be affordable housing, representing an increase of approximately
five times over the City’s RHNA allocation for the 5th Cycle Housing Element
(2013-2021); and
WHEREAS, on July 6, 2010, 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 LUCE was adopted after an extensive planning process
and addresses neighborhood conservation and enhancement; integrated land use
and transportation; proactive congestion management; complete neighborhoods
with increased open space; community benefits; quality urban character and form;
preservation of historic resources; and growth management; and
WHEREAS, the LUCE sets forth a strategy that focuses new housing
development in areas with the greatest access to high frequency transportation
systems – the commercial boulevards and the areas surrounding the Expo Light
Rail stations – Downtown, Bergamot, and Memorial Park; and
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WHEREAS, the LUCE strategy for housing development was implemented
through the City’s new Zoning Ordinance, Chapters 9.01 through 9.52 of Article 9
of the Santa Monica Municipal Code (“Zoning Ordinance”), which became effective
on July 24, 2015, and the Downtown Community Plan (“DCP”), which was adopted
on July 25, 2017; and
WHEREAS, the LUCE also established the Industrial Conservation (“IC”)
land use designation, which was intended to conserve small light industrial and
service/commercial uses that have traditionally populated the IC District and
formed part of Santa Monica’s employment base and to support existing and new
creative businesses reliant on the affordable workspace created from adaptive
reuse of former industrial buildings; and
WHEREAS, the Zoning Ordinance, consistent with the LUCE’s vision for
the IC land use designation, prohibits housing in the IC District, in part out of
concern that introducing residential uses could have the potential to increase real
estate speculation, thereby displacing the creative industries and small-scale
industrial uses supported by affordable workspace; and
WHEREAS, the LUCE’s strategy for housing development, along with the
exclusion of housing in the IC District, results in approximately 12 percent of the
City’s total land area being available for residential growth, all of which is zoned to
allow both commercial and residential uses; and
WHEREAS, the City has recently developed a preliminary Suitable Sites
Inventory (“SSI”) analysis as part of the 6th Cycle Housing Element update that
prioritizes parcels for their likelihood to produce housing; and
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WHEREAS, the preliminary SSI analysis has resulted in an even smaller
subset of parcels, representing approximately three percent of the city’s total land
area, being identified as potentially having the highest housing potential; and
WHEREAS, in the past five years, the City has approved 11 projects
consisting of approximately 184,000 square feet of non-residential uses; and
WHEREAS, in addition, the City has received applications for non-
residential development on possible housing sites, predominantly consisting of
319,000 square feet of total office space, but also including a hotel use and electric
vehicle charging facility on two surface parking lots; and
WHEREAS, these recent development trends favoring commercial
development over residential in areas targeted by the LUCE for residential growth
are supported by preliminary findings for a feasibility analysis conducted by for the
City in 2019 which studied the likelihood that an applicant would choose to pursue
a housing development based on the City’s existing development standards and
inclusionary housing requirements and demonstrated that housing projects were
less likely than commercial projects to proceed; and
WHEREAS, the City currently permits single-unit dwellings in commercial
areas, even on parcels that could support more housing development potential;
and
WHEREAS, the BC (Promenade) and BC (2nd & 4th Streets) Districts,
which include the areas surrounding the Third Street Promenade Area, are
considered the pedestrian and economic heart of the City due to their vibrant urban
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atmosphere supported by a broad mix of building types, office space,
entertainment, retail, restaurants, cafes, salons and exercise studios; and
WHEREAS, the area within the IC District and 500 feet of the I-10 freeway
has not historically seen development, and may not be suitable for housing due to
its proximity to the freeway and because it may require extensive environmental
remediation, which raises environmental and social justice concerns; and
WHEREAS, schools are an essential component of a balanced community,
and must be allowed to establish and expand during times of residential growth;
and
WHEREAS, the economic impacts of the COVID-19 closures of and
limitations on businesses have been devastating to the local Santa Monica
economy; and
WHEREAS, on May 12, 2020, the City Council adopted Emergency Interim
Zoning Ordinance Number 2637 (CCS) (“Interim Zoning Ordinance 2637”), which
established interim zoning regulations to provide immediate relief and regulatory
certainty for businesses Citywide that may have interest in looking ahead to make
plans for re-opening by taking initial steps towards economic recovery that
included: 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 the requirement for
Conditional Use Permits for restaurants only due to size; and removing the
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inflexibility caused by a cap of no more than 5 persons allowed for small yoga
studios and gyms; and
WHEREAS, on May 12, 2020, the City Council adopted Emergency Interim
Zoning Ordinance Number 2636 (CCS) (“Interim Zoning Ordinance 2636”),
establishing interim zoning regulations for the economic recovery of those portions
of the BC (Promenade) District bounded by Second Street to the west, Broadway
to the south, 4th Street to the east and Wilshire Boulevard to the north, including
the Third Street Promenade (the “Third Street Promenade Area”) which
established interim zoning regulations to provide immediate relief and regulatory
certainty for businesses in the Third Street Promenade area that may have interest
in looking ahead to make plans for re-opening by taking initial steps towards
economic recovery that included: minor modifications to land use regulations to
provide additional business opportunities and increased flexibility for existing
businesses; eliminating the requirement of a Conditional Use Permit for the
conversion of eating and drinking establishments to other uses; easing standards
related to legal, nonconforming restaurant and retail uses; relaxing Alcohol
Exemption conditions and processes; and allowing for alternate compliance with
loading standards; and
WHEREAS, on November 10, 2020, the City Council adopted Emergency
Interim Zoning Ordinance Numbers 2657 (CCS) and 2658 (CCS) to extend the
emergency interim zoning regulations adopted by Emergency Interim Zoning
Ordinance Numbers 2636 and 2637 and make other minor changes to further
encourage economic recovery; and
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WHEREAS, allowing additions to and changes of uses in existing structures
will support continued maintenance and investment in existing commercial
buildings that are unlikely to be housing sites while also ensuring that the flexibility
in changes of use afforded by Interim Zoning Ordinance Numbers 2657 and 2658
remains to support tenanting of vacancies throughout the City; and
WHEREAS, the City Council finds and declares that a current and
immediate threat to the public health, safety, and welfare exists due to the State’s
ongoing and unprecedented housing crisis, which has resulted in the City’s very
large RHNA allocation of 8,895 units, and with only three percent of the City’s total
land area available as the highest potential for housing, the approval of additional
subdivisions, use permits, variances, building permits, or any other applicable
entitlement on even one of the sites with housing potential would result in that
threat to public health, safety, or welfare because the loss of a suitable site to non-
residential development or underproduction of housing units would jeopardize the
City’s ability to have sufficient sites for the SSI, adopt a Housing Element compliant
with State law requirements, and plan for the production of 8,895 units over the
next eight years.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Effect on Previously Approved Projects and Projects in
Process. The following projects that would otherwise be affected by the temporary
prohibitions set forth in this Interim Zoning Ordinance shall not be subject to this
Interim Zoning Ordinance:
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(a) Previously Approved Development. The erection, construction,
enlargement, demolition, moving, conversion of, and excavation and grading for
any building or structure, or establishment of use, for which a valid planning
entitlement or permit or building permit, including plan check, was issued prior to
January 12, 2021 and which does not subsequently expire. A permit or entitlement
that does not contain an express limit on the time for exercising the permit shall be
deemed valid only if a building permit, including plan check, is obtained by January
12, 2021.
(b) Applications for Projects in Progress. Any application for a planning
entitlement or permit or building permit, including plan check, determined complete
on or before January 12, 2021.
SECTION 2. Temporary Prohibition on Non-residential Uses.
(a) Temporary prohibition. Notwithstanding anything to the contrary in
the land use regulations set forth in Santa Monica Municipal Code Sections
9.07.020, 9.08.020, 9.09.080, 9.10.040, 9.11.020, 9.13.020, 9.14.020, or 9.15.020,
and subject to the exceptions set forth in paragraph (b), Non-Residential Use
Classifications, as listed in 9.51.030, are prohibited in all Districts in the City.
(b) Exceptions. The temporary prohibition set forth in paragraph (a)
shall not apply to the following:
(1) Parcels located within:
(A) The BC (Promenade) District;
(B) The BC (2nd & 4th Streets) District; and
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(C) The Industrial Conservation District that have
boundaries located entirely within 500 feet of the I-10 Freeway, as
more fully depicted in Exhibit A, attached hereto, and incorporated
herein by reference.
(2) Schools, as defined by Santa Monica Municipal Code Section
9.51.030(A)(11), including expansions and additions to schools and
facilities operated by schools.
(3) Projects consisting of:
(A) A Change of use in an existing structure.
(B) An attached addition to an existing structure, or a free-
standing addition on a parcel with an existing structure, that is no
larger than the floor area of the existing structure.
SECTION 3. Temporary Prohibition on Single-Unit Dwellings in
Nonresidential Districts. 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, single-unit dwellings, as defined by
Santa Monica Municipal Code Section 9.51.020(A)(1)(a), are prohibited in all
Nonresidential Districts in the City.
SECTION 4. 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.
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SECTION 5. 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 6. 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.
SECTION 7. This Emergency Interim Zoning Ordinance shall be of no
further force or effect after April 23, 2021 unless it is otherwise extended pursuant
to California Government Code Section 65858.
APPROVED AS TO FORM:
_________________________ GEORGE S. CARDONA Interim City Attorney
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Exhibit A Parcels within Industrial Conservation District that Have Boundaries Located
Entirely within 500 Feet of the I-10 Freeway
[Behind this page]
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March 5, 2021
City Council
City of Santa Monica
1685 Main St
Santa Monica, CA 90401
RE: Proposed moratorium on commercial development
Dear Mayor Himmelrich and Council Members:
The Santa Monica Chamber of Commerce has been consistent with our support
for additional housing development and have supported policies and projects to
increase the supply for residents and workers in our community.
This is why we do understand and appreciate the need to preserve housing
opportunities during the preparation of the Housing Element given the
six cycle’s 8,800 new unit RHNA state mandate.
However, we have serious concerns that the proposed moratorium on nearly all
commercial projects across the City is overly broad and could result in
unintended consequences. Our concerns include:
The very broad and sweeping moratorium, as currently drafted, sends a strong
anti-business signal that could create discouragement and disincentive for
businesses to come to Santa Monica – at a time when we need more economic
development now more than ever. For this reason, the City Council should be
clear that any moratorium must be temporary and expire when the Housing
Element process concludes. We would vigorously oppose any effort to extend
the moratorium beyond adoption of the Housing Element and/or to make it
permanent.
Any temporary moratorium must then be only enacted if it is used aggressively
and ambitiously to rezone properties throughout the City, particularly along the
commercial boulevards, for increased housing production above and beyond
the city’s current restrictive zoning regulations. This is the only possible
justification for something as dramatic and sweeping as a temporary
commercial development moratorium.
Any temporary moratorium must include exceptions including:
•Additions to existing commercial buildings;
•Changes of use within existing commercial buildings
•Commercial projects proposed along the entire Third Street Promenade;
•Any site within 500 feet of the freeway where the California Air
Resources Board (CARB) generally recommends against siting new
residential development;
•For private schools;
•For non-profit uses; and
•For auto dealerships which are a critical tax generating use for the City
and are already subject to a discretionary Conditional Use Permit process.
We appreciate that the City must be creative and open to all solutions that
increase housing but we also caution taking any action that would further harm
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our already fragile businesses that are vital to providing jobs, attracting tourists,
and generating revenue for the City.
Thank you,
Laurel Rosen, President/CEO
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(310) 451-3669
March 8, 2021
VIA E-MAIL
Santa Monica City Council
1685 Main Street, Room 102
Santa Monica, CA 90401
Re: Agenda Item 7-A
Emergency Interim Zoning Ordinance temporarily prohibiting, with some
exceptions, non-residential uses citywide and single-unit dwellings in
commercial zones
Hearing Date: March 9, 2021
Dear Councilmembers:
As many of you know, my law firm represent a wide variety of clients in their
pursuit of land use entitlements, including but not limited to preservation projects.
This letter is not submitted on behalf of any particular client or clients.
I am writing with respect to the emergency IZO that has been prepared for your
hearing on March 9. The stated purpose of the IZO is to temporarily curtail single-unit
dwellings and non-residential development of potential housing sites while the City
prepares the 6th Cycle Housing Element’s Suitable Site Inventory (“SSI”):
WHEREAS, the City Council finds and declares that a
current and immediate threat to the public health, safety, and
welfare exists . . . because the loss of a suitable site to
nonresidential development or underproduction of housing
units would jeopardize the City’s ability to have sufficient
sites for the SSI . . . .
On page 4 of the Staff Report, there is a list of parcels that will be “filtered out” of
the SSI analysis because they are unlikely candidates for housing:
As a first step in preparing the SSI analysis, a preliminary
sites analysis has been conducted to filter out parcels that
would not likely be potential housing sites based on the
following criteria:
kutcher@hlkklaw.com
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Santa Monica City Council
March 6, 2021
Page 2
• Parcels with existing Landmarks or Historic Resources
• Parcels that are under construction, have recently
completed projects, approved entitlements, and pending
entitlement for commercial uses only
• Parcels that have unique land uses such as hospitals,
cemetery, schools, parks, churches/religious facilities,
utilities, government offices, libraries, police/fire stations,
transportation infrastructure/Metro Expo LRT and airport
• Parcels developed with affordable housing and condos
• Parcels with newer buildings developed post 1980.
It is therefore puzzling why all of these categories are not included as exemptions
from the temporary non-residential moratorium. For example, the draft IZO does not
include an exemption for Landmarks or Historic Resources; although schools are to be
exempt, the IZO does not include an exemption for hospitals, cemetery, parks,
churches/religious facilities, utilities, government offices, libraries, police/fire stations,
transportation infrastructure/Metro Expo LRT and airport; it also does not include an
exemption for properties that are developed with affordable housing; it does not include
an exemption for properties developed with for-sale condominium units; and it does not
include an exemption for properties with newer buildings developed since 1980. No
explanation is provided for these missing exemptions.
These are glaring omissions. They place the IZO at risk of legal challenge on the
basis that it is overbroad on its face.
Furthermore, we question why the draft IZO would impose a prohibition on non-
residential uses rather than on new development containing non-residential uses
exceeding one-third of a project’s overall floor area. In this regard, page 2 of the Staff
Report states that Staff recommends suspending “new non-residential construction
citywide” (emphasis added) subject to certain limited exceptions; but the proposed IZO
is inartfully drafted to prohibit non-residential uses (rather than focusing on new
construction for such uses), which may have unintended consequences for existing
businesses, nonprofits and building owners because of the City’s legal, nonconforming
use provisions. (See SMMC § 9.25.050.) Moreover, page 6 of the Staff Report states
that the draft IZO “would not implicate housing projects meeting the definition of a
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Santa Monica City Council
March 6, 2021
Page 3
housing development project in the Housing Accountability Act,”1 but the draft IZO fails
to address this exception.
Accordingly, we suggest that the draft IZO should be modified to prohibit new
construction of non-residential uses subject to certain exceptions and should add in the
missing exemptions identified in this letter.
In closing, let there be no mistake, we do not support the concept of a
commercial building moratorium. Such a measure is particularly inappropriate in this
time of ongoing economic crisis and significant unemployment.
Very truly yours,
Kenneth L. Kutcher
KLK:sna
cc: David Martin
Jing Yeo
Lane Dilg
George Cardona
F:\WPDATA\7000\Cor\CC 2021.03.08 (comm prohibition).docx
1 “‘Housing development project’ means a use consisting of any of the following:
(A) Residential units only. (B) Mixed-use developments consisting of residential and
nonresidential uses with at least two-thirds of the square footage designated for
residential use. (C) Transitional housing or supportive housing.” (Gov’t Code
§ 65589.5(h)(2)(B).)
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March 8, 2021
VIA E-MAIL
Santa Monica City Council 1685 Main Street, Room 102
Santa Monica, CA 90401
Re: City Council March 9th Agenda Item 7-A: Auto dealers and the proposed Emergency Interim Zoning Ordinance prohibiting non-residential uses citywide
Dear Councilmembers:
I am writing as the chair of the Santa Monica Auto Dealers Association (“SMADA”), a committee of the Santa Monica Chamber of Commerce. SMADA
represents auto dealers who sell, lease and service predominantly new automobiles
and owners of property currently leased to auto dealers. I own the Lexus, Toyota, Subaru, Honda and Volkswagen franchises in Santa Monica and well as other property that is leased to automobile dealers in Santa Monica. As explained below, SMADA and its members request that any moratorium on non-residential uses/development exempt
automobile dealership uses/development on Santa Monica Boulevard between Lincoln
and 20th Street (“auto row”) and the other limited sites currently in automobile dealership use.
Santa Monica’s automobile dealer industry provides well-paying local jobs, convenient services for Santa Monica residents, and generates significant revenue for
the City. Almost many other industries that produce significant sales tax in Santa
Monica faced sharp declines in sales/sales tax as a result of the COVID-19 pandemic (i.e. restaurant/hotel and general consumer goods), “auto sales have been stronger than expected”. (January 26, 2021 City Council Staff Report, p. 11.) Further, from a land use/planning perspective, auto dealers are a relatively low peak hour traffic generator.
Auto dealers (and owners of property leased to auto dealers) have worked
cooperatively with the City for over 25 years with respect to tailored zoning standards and regulations that facilitate reasonable auto dealer operations and expansion.1 Many
1 SMADA formed in the mid-1990s to address City zoning impediments facing auto dealers. At the City’s request, SMADA retained Paul Silvern of HR&A Advisors to document the problems facing our industry and propose solutions. HR&A issued its
report in January 2001 which led to a robust public process and the adoption of the 2006 Interim Automobile Dealership Ordinance. SMADA also played an active role in the 2010 LUCE and 2015 Zoning Ordinance update processes which resulted in many industry-specific standards and regulations for auto dealerships.
SANTA MONICA AUTO DEALERS ASSOCIATION
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auto dealers, including myself, have made significant investments in the City based on the City’s direction as to the appropriate location for auto dealership uses.
During the City’s adoption of its Land Use and Circulation Element of its General
Plan in 2010 and its Zoning Ordinance Update in 2015, the City recognized the
importance of the auto dealers and encouraged us to expand our dealerships and invest in our facilities based on the City’s urban auto dealership standards. I’ve enclosed an attachment with relevant policies from the City’s General Plan. These processes also resulted in the City drastically reducing the land available for auto dealership uses.
Auto dealers have respected the City’s geographic limitations/constraints for automobile dealership uses and have focused on investing (significantly) in facilities already in auto dealership use and/or on “auto row”. For example, the MINI of Santa Monica dealership at 1402 Santa Monica Boulevard, the Subaru dealership at 1229 Santa Monica Boulevard, and the Lexus showroom at 150 Santa Monica Boulevard.
We respectfully request that the City carve out Santa Monica Boulevard between Lincoln and 20th Street (“auto row”) and the other limited sites currently in automobile dealership use from the draft IZO in order to encourage and allow for further automobile dealership investment in Santa Monica. Alternatively, at a minimum, we request that the draft IZO’s exemption for additions to existing buildings be revised to eliminate the
limitation that the addition is no larger than the floor area of the existing structure.2 Automobile dealerships that are in need of upgrade/investment are generally the suburban style model with small existing buildings and the remainder of the site as surface parking/inventory storage. Thus, limiting the addition to the size of the existing building is uniquely constraining for automobile dealerships compared with other uses.
Given the City’s current economic situation, the industry’s importance in terms of source of jobs, services, and City revenues, the limited land area for automobile dealerships, and the investment that automobile dealers have made in the City in accordance with City’s General Plan, we ask the City Council to exempt automobile dealership uses on auto row and existing automobile dealer sites from any moratorium
on non-residential uses/development.
Sincerely,
Mike Sullivan , Chair SMADA
2 For example, revise draft IZO Section 2(b)(3)(B) to read: An attached addition to an existing structure, or a free-standing addition on a parcel with an existing structure, that is no larger than the floor area of the existing structure; provided however that expansions to auto dealerships existing as of July 6, 2010 shall not be limited to the floor area of the existing structure.
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cc: Lane Dilg David Martin
Jing Yeo
Steve Mizokami SMADA Members
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THE LUCE & AUTOMOBILE DEALERSHIPS
• “The automotive/service group is a major component of the City’s retail
base. The LUCE supports their continued viability, as well as a new urban
form for auto showrooms [emphasis added].” (LUCE, p. 3.4-11)
• Policy E8.3: “Allow automobile dealers to reasonably expand in their current locations and otherwise respond to likely global changes in the
automobile industry as long as their redevelopment is in the urban auto dealership format and incorporates mitigations to reduce any negative impacts on the surrounding residential and nonresidential uses. The expansion may occur on existing parcels used for automobile dealerships and on adjacent or proximate parcels.” (LUCE, p. 3.4-22)
• “Auto dealers that do not expand are encouraged to transform their dealerships into the urban auto dealership format which contributes to Santa Monica’s urban form with multi-story buildings built to the street and
parking in structures at the rear or underground.” (LUCE, p. 2.1-32)
• “New and revitalized dealerships are encouraged to build showrooms adjacent to the boulevard sidewalk using the urban format, locating new car inventory, customer parking, and service facilities in multi-story
facilities to the rear of the retail showroom or below grade.” (LUCE, p. 2.1-
37)
• Goal E8: “Allow for the expansion and improved performance of automobile dealers in Santa Monica, recognizing their contribution to the
local economy and the revenue base of the General Fund.” (LUCE, p. 3.4-22)
• Policy E8.6: “Encourage dealerships to provide on site automobile storage in above-grade structures or subterranean parking facilities. To
this end, the City will consider allowing intrusions into the public rights-of-way for underground parking and storage facilities.” (LUCE, p 3.4-22)
• “Subject to a discretionary review process, projects that provide community benefits may request a height up to 35 feet and 1.5 FAR.
However, when design standards are adopted for the urban auto dealer
format, a ministerial process may be allowed.” (LUCE 2.1-38)
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March 5, 2021
City Council
City of Santa Monica
1685 Main St
Santa Monica, CA 90401
RE: Proposed moratorium on commercial development
Dear Mayor Himmelrich and Council Members:
The Santa Monica Chamber of Commerce has been consistent with our support
for additional housing development and have supported policies and projects to
increase the supply for residents and workers in our community.
This is why we do understand and appreciate the need to preserve housing
opportunities during the preparation of the Housing Element given the
six cycle’s 8,800 new unit RHNA state mandate.
However, we have serious concerns that the proposed moratorium on nearly all
commercial projects across the City is overly broad and could result in
unintended consequences. Our concerns include:
The very broad and sweeping moratorium, as currently drafted, sends a strong
anti-business signal that could create discouragement and disincentive for
businesses to come to Santa Monica – at a time when we need more economic
development now more than ever. For this reason, the City Council should be
clear that any moratorium must be temporary and expire when the Housing
Element process concludes. We would vigorously oppose any effort to extend
the moratorium beyond adoption of the Housing Element and/or to make it
permanent.
Any temporary moratorium must then be only enacted if it is used aggressively
and ambitiously to rezone properties throughout the City, particularly along the
commercial boulevards, for increased housing production above and beyond
the city’s current restrictive zoning regulations. This is the only possible
justification for something as dramatic and sweeping as a temporary
commercial development moratorium.
Any temporary moratorium must include exceptions including:
•Additions to existing commercial buildings;
•Changes of use within existing commercial buildings
•Commercial projects proposed along the entire Third Street Promenade;
•Any site within 500 feet of the freeway where the California Air
Resources Board (CARB) generally recommends against siting new
residential development;
•For private schools;
•For non-profit uses; and
•For auto dealerships which are a critical tax generating use for the City
and are already subject to a discretionary Conditional Use Permit process.
We appreciate that the City must be creative and open to all solutions that
increase housing but we also caution taking any action that would further harm
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our already fragile businesses that are vital to providing jobs, attracting tourists,
and generating revenue for the City.
Thank you,
Laurel Rosen, President/CEO
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March 8, 2021
Dear Mayor Himmelrich and City Council Members,
I write in regard to the proposed Emergency Interim Zoning Ordinance and the impact it
will have on Santa Monica automobile dealerships.
Our family, through Four generations, has served the City of Santa Monica and the local
automobile industry for the past 100-years. During this time, we have worked cooperatively with
the City on zoning regulations that allow automobile dealerships to continue and to upgrade their
facilities in Santa Monica. The Council’s proposed moratorium which states, in relevant part, that
future construction “should be limited to the floor area of the existing structure” will place severe
constraints on the auto dealers of Santa Monica. Although your proposal is well-intended, it does
not fit the auto dealership model and will create extreme hardship for automobile dealers who
have provided support to the community for many, many years.
My brothers and I were born and raised in Santa Monica. We have always taken great
pride in providing service to local residents, while supplying a significant income base for the City
through sales tax revenues.
. The proposed Emergency Interim Zoning Ordinance will place insurmountable burdens
on auto dealers, especially those who have not made alterations to their facilities in decades.
. Many of the current dealerships were built long ago and will need to expand facilities to
accommodate environmental and future code changes. Hybrids and electric vehicles will
absolutely necessitate future facility development. Currently, many dealerships use much of
their land to park cars. This land will be needed to upgrade and provide the necessary
infrastructure to meet the demands of modern, energy efficient automobiles.
It would be wise to exclude auto dealers from your moratorium as they would be unduly
burdened by the restrictions imposed. Space requirements for auto dealers are substantially
different from those of other retailers.
I sincerely, and respectfully, ask you to please consider excluding the automobile
dealerships from the proposed moratorium.
Thank you for the opportunity to bring these issues to your attention.
Warmest regards,
Claude R. Short, LLC
Dee Menzies, Member
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March 8, 2021
Santa Monica City Council
1685 Main Street
Santa Monica, CA 90401
RE: Santa Monica City Council Agenda Item 7A Emergency Interim Zoning Ordinance
Dear Santa Monica City Council Members,
I am writing on behalf of Tesla to provide comments on agenda item 7A on the March 9, 2021 Santa
Monica City Council meeting regarding the Emergency Interim Zoning Ordinance (IZO).
Tesla’s mission is to accelerate the world’s transition to sustainable energy. As part of this mission, Tesla
builds electric vehicle (EV) charging stations to support EV drivers and reduce range anxiety. Public EV
fast charging stations are particularly important for renters, apartment dwellers, and garage orphans
who are typically unable to reliably charge at home. With a majority of Santa Monicans living in multi-
unit dwellings, more EV fast charging stations are needed to support the growing number of Santa
Monica EV drivers and meet the city’s goal of 1,000 EV chargers by 2025.1
Tesla has been working closely with Santa Monica planning staff since September 17, 2020 on a large
Tesla EV fast charging station that includes solar energy and battery storage within the Mid-City
neighborhood. On March 3, 2021 the Santa Monica Planning Commission approved Tesla’s Conditional
Use Permit on the commercially zoned property. Construction is planned to begin mid-summer 2021
and the first phase of the project should start serving Santa Monica EV drivers by the end of this
summer.
City planning staff recommend in their IZO staff report that it should only apply to applications
submitted after January 12, 2021. Tesla urges the City Council to ensure that the IZO is not retroactively
applied to projects already fully or partially in process with the city. Additionally, given Santa Monica’s
EV goals and need for more fast charging stations, Tesla recommends that EV charging stations be
added as an exception to the IZO, as the ordinance could inadvertently stall crucial new EV charging
stations needed in Santa Monica and prevent the city from meeting its EV goals.
Tesla appreciates the opportunity to provide comments.
Sincerely,
Noelani Derrickson
Policy Advisor
Tesla
1 Santa Monica Electric Vehicle Action Plan
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1
Vernice Hankins
From:Scott Wolfe <scott.a.wolfe@gmail.com>
Sent:Tuesday, March 9, 2021 12:31 PM
To:councilmtgitems
Cc:Gleam Davis; Kristin McCowan; Phil Brock; Sue Himmelrich; Oscar de la Torre; Councilmember Kevin
McKeown; Christine Parra
Subject:Council Meeting 2021/03/09 - Public Comment for Item 7.A
EXTERNAL
Dear Councilmembers,
Thank you for reviewing the Adoption of an Emergency Interim Zoning Ordinance to Establish Temporary Land
Use Restrictions.
I am writing this Public Comment in support of the ordinance. We are at a severe shortage of housing in Santa
Monica. It was frustrating listening to the Planning Board last week where the city was issuing a permit for a
Tesla Charging station. It was land that could have been used for housing. But because a property owner was
sitting on it and waiting for a big payoff from commercial development, it had to go to an inequitable charging
station used for privileged Tesla owners only.
Thank You,
Scott Wolfe
Sunset Park Resident
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