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O27471 City Council Meeting May 23, 2023 Santa Monica, California ORDINANCE NUMBER 2747 (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA CANCELLING DEVELOPMENT AGREEMENT 13DEV-010 BETWEEN THE CITY OF SANTA MONICA, A MUNICIPAL CORPORATION, AND MACERICH SMP LP, A DELAWARE LIMITED PARTNERSHIP WHEREAS, on April 22, 2014, City Council approved Development Agreement 13DEV-010 (“Development Agreement”) to allow the construction of a multi-screen movie theater complex on the third level of Santa Monica Place, located at 315 Colorado Avenue (the “project”); and WHEREAS, at the time of the Development Agreement’s approval, and pending completion of the Downtown Community Plan (“DCP”), the City’s Interim Zoning Ordinance (“IZO”) required the project to be reviewed though a development agreement because the project exceeded the height limitations in the IZO but was within the eighty- four-foot height limit allowed by the Land Use and Circulation Element (“LUCE”); and WHEREAS, consistent with LUCE land use policies at the time, the Development Agreement included a suite of community benefits required by Macerich, including, but not limited to, contributions towards construction of the City’s Colorado Esplanade Project and the Downtown Wayfinding Metro Grant project, provisions for making theaters available to the American Film Market, a transportation demand management plan, local hiring provisions, and sustainable features; and WHEREAS, the tenant space that was created as a result of the Development Agreement has not been used a movie theater since March 2020, and any new uses of DocuSign Envelope ID: 687AB75D-EB3A-4EDA-A4EA-3BD5E86392E2 2 the space would require a separate process to determine what, if any, discretionary permits are required; and WHEREAS, Macerich is proposing a new museum in the tenant space, a permitted use in the DCP’s Transit Adjacent Zone; and WHEREAS, these key community benefits required were satisfied concurrently with the completion of construction of the project or are no longer applicable where the use of the space will no longer be for a movie theatre; and WHEREAS, many of the terms and conditions contained in the Development Agreement are also structured for a single-purpose theater use that is no longer in operation, and, therefore, restrict the reuse of the vacant tenant space for other permitted uses identified in the DCP; and WHEREAS, since the approval of the Development Agreement, the height limit has been increased in the DCP, and a development agreement would no longer be required for the project; and WHEREAS, facilitating the reuse of this anchor tenant space for a visitor-and- community-serving immersive art use, or other permitted use, will help support the overall economic recovery efforts of both the City and private property owners in Santa Monica’s Downtown, contribute to the Downtown Core as being a thriving, mixed-use urban environment, and provide entertainment, arts, and cultural opportunities to residents and visitors alike; and WHEREAS, pursuant to Santa Monica Municipal Code Section 9.60.150, either the City or applicant or successor in interest may propose an amendment or cancellation in whole or in part of a development agreement; and DocuSign Envelope ID: 687AB75D-EB3A-4EDA-A4EA-3BD5E86392E2 3 WHEREAS, except as provided for in Santa Monica Municipal Code 9.60.180, a development agreement may only be amended or cancelled in whole or in part by the mutual consent of all parties to the subject development agreement; and WHEREAS, Macerich has requested that the Development Agreement be cancelled; and WHEREAS, on April 19, 2023, the Planning Commission conducted a duly-noticed public hearing to consider the proposed Development Agreement cancellation, and, after considering oral and written testimony, recommended to the City Council that the City Council agree to cancel the Development Agreement; and WHEREAS, on May 9, 2023, the City Council conducted a duly-noticed public hearing to consider the proposed cancellation and the Planning Commission’s recommendation. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Development Agreement 13DEV-010 adopted by City Council on April 22, 2014, is hereby cancelled in its entirety pursuant to Santa Monica Municipal Code Section 9.60.150. SECTION 2. Any provision of the Santa Monica 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 3. 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 DocuSign Envelope ID: 687AB75D-EB3A-4EDA-A4EA-3BD5E86392E2 4 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 4. 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: _________________________ Douglas Sloan, City Attorney DocuSign Envelope ID: 687AB75D-EB3A-4EDA-A4EA-3BD5E86392E2 Approved and adopted this 23rd day of May, 2023. _____________________________ Gleam Davis, Mayor 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. 2747 (CCS) had its introduction on May 9, 2023 and was adopted at the Santa Monica City Council meeting held on May 23, 2023, by the following vote: AYES: Councilmembers Zwick, Parra, Brock, Torosis, de la Torre Mayor Davis, NOES: None ABSENT: Mayor Pro Tem Negrete ATTEST: _____________________________________ _________________ Denise Anderson-Warren, City Clerk Date A summary of Ordinance No. 2747 (CCS) was duly published pursuant to California Government Code Section 40806. DocuSign Envelope ID: 687AB75D-EB3A-4EDA-A4EA-3BD5E86392E2 5/26/2023