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SR 01-25-2022 7B City Council Report City Council Meeting: January 25, 2022 Agenda Item: 7.B 1 of 11 To: Mayor and City Council From: David Martin, Director, Administration Subject: Introduction and Adoption of an Emergency Interim Ordinance Amending Interim Zoning Regulations Established by Emergency Interim Zoning Ordinance Number 2636 (CCS) and Extended and Amended by Emergency Interim Zoning Ordinance Numbers 2658, 2667 and 2682 (CCS) for Economic Recovery of the BC (Promenade) District and Those Portions of the BC (2nd and 4th Street) District Bounded by Second Street to the West, Broadway to the South, 4th Street to the East, and Wilshire Boulevard to the North to Increase Flexibility for Automobile/Vehicle Showrooms. Recommended Action Staff recommends that the City Council: 1. Introduce and adopt an Emergency Interim Ordinance amending interim zoning regulations established by Emergency Interim Zoning Ordinance Number 2636 (CCS) and extended and amended by Emergency Interim Zoning Ordinance Numbers 2658, 2667 and 2682 (CCS) for economic recovery and increased occupancy in the City’s BC (Promenade) District and those portions of the BC (2nd and 4th Street) District Bounded by Second Street to the West, Broadway to the South, 4th Street to the East, and Wilshire Boulevard to the North by allowing automobile/vehicle showrooms of all fuel types. Summary As retail environments across the region and country continue to evolve, there is a need to adjust allowed uses and activities to enable economic recovery and provide increased flexibility to minimize vacancies in the district. The Third Street Promenade, as Santa Monica’s primary retail destination, has been undertaking such an evolution, allowing new and diverse uses previously not permitted, including automobile dealerships for alternative fuel vehicles. Recent inquiries have been made to potentially enable all vehicle types to have showrooms Downtown. The change can be immediately 7.B Packet Pg. 231 2 of 11 enabled with the existing interim Zoning Ordinance for the area that is in effect through the end of 2022. Background The Third Street Promenade has long served as a local, regional, national, and international destination, attractive for its blend of retail, dining, services, outdoor atmosphere, entertainment, and proximity to the beach. The ongoing COVID-19 pandemic and subsequent economic recovery has been difficult for many segments of the economy, and Santa Monica’s Downtown area, including the Promenade, is experiencing the same uncertainty with the vacancy rate along the Promenade recently rising to almost 25%. Staff and community stakeholders continue to be concerned about the health and vitality of Downtown overall and the Third Street Promenade area in particular. In December 2011, prior to the adoption of the Downtown Community Plan, Council adopted Ordinance Number 2384 (CCS), amending the Zoning Ordinance to allow showrooms for alternative fuel vehicles. The policy was continued with the 2017 adoption of the Downtown Community Plan. At the time of its original adoption, alternative fuel vehicles were still an emerging technology, but due to the sustainability aspects of alternative fuel vehicles and changing marketing for such vehicles, the City permitted alternative fuel vehicle showrooms in the Downtown area. Since the adoption of Ordinance 2384 in 2011, the number of traditional fuel vehicle manufacturers that have expanded product lines to include hybrid and electric vehicles has increased rapidly, with many manufacturers announcing plans to electrify large portions of their fleets over the next decade. Interim Zoning Ordinance Changes The changes proposed with this ordinance are the latest in an ongoing effort to be responsive to the rapidly evolving retail and Downtown land use marketplace. Council adopted Emergency Interim Zoning Ordinance Number 2636 (CCS) (“IZO 2636”), on May 12, 2020, which established interim zoning regulations to support the 7.B Packet Pg. 232 3 of 11 economic recovery of local businesses impacted by the COVID-19 pandemic for the Third Street Promenade area bounded by 2nd Street to the west, Broadway to the south, 4th Street to the east, and Wilshire Boulevard to the north. The interim regulations streamlined processes for simple changes of use to remove barriers to the establishment of common neighborhood-serving uses. Changes permitted the multi- tenant Food Halls and Light Industry uses such as breweries, roasteries, and artisan activities; the initial ordinance also eliminated the need for a Conditional Use Permit (CUP) to convert space from a food serving use to retail or other uses. Subsequent amendments to the Emergency IZO adopted by Council on November 10, 2020 (“IZO 2658”), April 13, 2021 (“IZO 2667”), and September 28, 2021 (“IZO 2682”) made minor changes to allow more flexible loading standards, clarify physical training use standards, prohibit fast-food restaurants, enable design and use flexibility, and extend the interim zoning regulations until December 31, 2022. The most recent decisions by Council enable liquor stores, medical and dental offices, grooming and pet stores, and tattoo and body modification parlors – one of which is already open for business on the Promenade. Past Council Actions Meeting Date Description 05/12/20 (attachment A) Adoption of Emergency Interim Zoning Ordinance Number 2636 to Support and Facilitate the Economic Recovery of the Third Street Promenade Area 11/10/20 (attachment B) Adoption of Emergency Interim Zoning Ordinance Number 2658 to Extend Interim Zoning Regulations Adopted by Emergency Interim Zoning Ordinance Number 2636 for Economic Recovery in the City’s Downtown Districts 4/13/21 (attachment C) Adoption of Emergency Interim Ordinance Number 2667 Making Minor Changes, Corrections and Clarifications to Interim Zoning Regulations Established by Emergency Interim Zoning Ordinance Number 2636 (CCS) and Extended by Emergency Interim Zoning Ordinance Number 2658 (CCS) for Economic Recovery in the City’s BC (Promenade) District and Those Portions of the BC (2nd and 4th Street) District Bounded by Second Street to the West, Broadway to the South, 4th Street to the East, and Wilshire Boulevard to the North 9/28/21 Adoption of an Emergency Interim Ordinance Number 2682 7.B Packet Pg. 233 4 of 11 (attachment D) Making Minor Changes, Corrections and Clarifications to Interim Zoning Regulations Established by Emergency Interim Zoning Ordinance Number 2636 (CCS) and Extended by Emergency Interim Zoning Ordinance Number 2658 (CCS) for Economic Recovery in the City’s BC (Promenade) District and Those Portions of the BC (2nd and 4th Street) District Bounded by Second Street to the West, Broadway to the South, 4th Street to the East, and Wilshire Boulevard to the North Discussion Due to the continued economic uncertainty arising out of the COVID-19 pandemic, the high vacancy rate along the Promenade, and the number of traditional fuel vehicle manufacturers that have expanded product lines to include hybrid and electric vehicles, including plans to electrify large portions of their fleets over the next decade, staff recommends one additional change to increase flexibility of use and opportunities for economic recovery by enabling automobile dealer showrooms for vehicles of any fuel type within the Third Street Promenade area. As indicated in Specific Limitation #8, only automobile dealer showrooms will continue to be permitted. Ancillary activities such as automobile repair, storage, and servicing would not be permitted. This change would be consistent with the overall retail and auto industry trend of locating showrooms in high pedestrian areas such as shopping districts and centers. Having a wide range of retailers, experiences, and attractions on the Third Street Promenade supports it as a destination and community resource. The proposed change to the IZO land use table is detailed below. The table is consistent with the formatting of the existing land use table. A key of designations is contained in the bulleted list before the table and the section ends with the limitations indicated in the table itself, such as L(1) and are listed after the table. The recommendation would change L(8) by deleting the reference to alternative fuel vehicles. In the table: • “P” designates permitted uses. 7.B Packet Pg. 234 5 of 11 • “L(#)” designates limited uses, which are permitted by right, provided they comply with specific limitations listed at the end of the table. • “MUP” designates use classifications that are permitted after review and approval of a Minor Use Permit. • “CUP” designates use classifications that are permitted after review and approval of a Conditional Use Permit. • “-“ designates uses that are not permitted. Use Classification BC (Promenade) BC (2nd & 4th Streets) Additional Regulations Residential Uses Residential Housing Types See sub-classifications below. Single Unit Dwelling L(1) L(1) Accessory Dwelling Unit P P Section 9.31.025, Accessory Dwelling Units and Junior Accessory Dwelling Units Junior Accessory Dwelling Unit P P Section 9.31.025, Accessory Dwelling Units and Junior Accessory Dwelling Units Duplex L(1) L(1) Multiple-Unit Structure L(1) L(1) Senior Citizen Multiple-Unit Residential L(1) L(1) Single-Room Occupancy Housing L(1) L(1) Group Residential L(1) MUP, L(1) Congregate Housing L(1) CUP, L(1) SMMC Section 9.31.110, Congregate and Transitional Housing Senior Group Residential L(1) MUP, L(1) SMMC Section 9.31.310, Senior Group Residential Elderly and Long-Term Care L(1) L(1) Emergency Shelters CUP/L(1) L(1), L(6)/CUP Family Day Care See sub-classifications below. Large L(1) L(1) SMMC Section 9.31.140, Family Day Care, Large Small L(1) L(1) Residential Facilities See sub-classifications below. Residential Care, General L(1) L(1) SMMC Section 9.31.270, Residential Care Facilities Residential Care, Limited L(1) L(1) Residential Care, Senior L(1) L(1) Hospice, General L(1) L(1) Hospice, Limited L(1) L(1) Supportive Housing L(1) L(1) Transitional Housing L(1) L(1) 7.B Packet Pg. 235 6 of 11 Use Classification BC (Promenade) BC (2nd & 4th Streets) Additional Regulations Public and Semi-Public Uses Adult Day Care L(1) L(1) Child Care and Early Education Facilities P P SMMC Section 9.31.120, Child Care and Early Education Facilities Colleges and Trade Schools, Public or Private L(1) L(1) Community Assembly L(15) P Community Gardens - P Cultural Facilities P P Hospitals and Clinics L(1) L(1) Park and Recreation Facilities, Public P P Public Safety Facilities P P Schools, Public or Private L(1) P Social Service Centers - P SMMC Section 9.31.350, Social Service Centers Commercial Uses Animal Care, Sales, and Services See sub-classifications below. Grooming and Pet Stores P L(5)/CUP No more than 10 dogs or cats can be kept overnight Pet Day Care Services - MUP Veterinary Services P MUP Automobile/Vehicle Sales and Service See sub-classifications below. Alternative Fuels and Recharging Facilities - - Automobile Rental L(10) L(10) Automobile Storage Use - - New Automobile/Vehicle Sales and Leasing L(8), L(5)/CUP L(8), L(5)/CUP Additions 7,500 sq ft or less to Automobile/ Vehicle Sales and Leasing buildings existing as of 7/06/2010 - - SMMC Section 9.31.070 Automobile/ Vehicle Sales, Leasing, and Storage Additions larger than 7,500 sq ft to Automobile/Vehicle Sales and Leasing buildings existing as of 7/06/2010 - - Automobile/Vehicle Repair, Major - - Automobile/Vehicle Service and Repair, Minor - - Automobile/Vehicle Washing - - Service Station - - Towing and Impound - - Banks and Financial Institutions See sub-classifications below. Banks and Credit Unions - - Check Cashing Businesses - - Business Services L(15) L(5)/CUP Commercial Entertainment and Recreation See sub-classifications below. Cinemas & Theaters, up to 99 seats P P Cinemas & Theaters, more than 99 seats P CUP Convention and Conference Centers P CUP Large-Scale Facility L(21)/CUP L(21)/CUP Small-Scale Facility P L(5)/CUP SMMC Section 9.31.340 Small Scale Facility Fortunetelling P P Eating and Drinking Establishments See sub-classifications below. 7.B Packet Pg. 236 7 of 11 Use Classification BC (Promenade) BC (2nd & 4th Streets) Additional Regulations Bars/Nightclubs/Lounges P P Restaurants, Full-Service, Limited Service & Take-out (2,500 sq ft and smaller, including Outdoor Dining and Seating) L(22) P SMMC Section 9.31.040, Alcoholic Beverage Sales SMMC Section 9.31.280, Restaurants, Limited Service, and Take-Out Only SMMC Section 9.31.200, Outdoor Dining and Seating Restaurants, Full-Service, Limited Service & Take-out (2,501 – 5,000 sq ft, including Outdoor Dining and Seating) L(22) P Restaurants, Full-Service, Limited Service & Take-out (greater than 5,000 sq ft, including Outdoor Dining and Seating) L(22) P Food Hall P P Equipment Rental - - Food and Beverage Sales See sub-classifications below. Convenience Market L(5)/CUP L(5)/CUP SMMC Section 9.31.040, Alcoholic Beverage Sales Farmers’ Market P P General Market L(12)/ CUP L(12)/ CUP SMMC Section 9.31.040, Alcoholic Beverage Sales Liquor Stores P CUP Funeral Parlors and Mortuaries - - Instructional Services L(1), L(5)/CUP L(5)/CUP Live-Work L(1)(13) L(13) SMMC Section 9.31.170, Live-Work Lodging See sub-classifications below. Bed and Breakfast P MUP SMMC Section 9.31.090, Bed and Breakfasts Hotels and Motels P CUP Maintenance and Repair Services - - Nurseries and Garden Centers - L(5)/CUP SMMC Section 9.31.220, Outdoor Retail Display and Sales Offices See sub-classifications below. Business and Professional L(1) L(1) Creative L(1) L(1) Medical and Dental P L(1) Walk-In Clientele L(1) L(5)/CUP Outdoor Newsstands P P SMMC Section 9.31.210, Outdoor Newsstands Parking, Public or Private - CUP Personal Services See sub-classifications below. General Personal Services P L(5)/CUP SMMC Section 9.31.230, Personal Service Physical Training L(17), L(21)/CUP L(17), L(5)/CUP 7.B Packet Pg. 237 8 of 11 Use Classification BC (Promenade) BC (2nd & 4th Streets) Additional Regulations Tattoo or Body Modification Parlor P MUP SMMC Section 9.31.230, Personal Service Retail Sales See sub-classifications below. Building Materials Sales and Services - - SMMC Section 9.31.220, Outdoor Retail Display and Sales General Retail Sales, Small-Scale P L(5)/CUP General Retail Sales, Medium-Scale P CUP General Retail Sales, Large-Scale - - Medical Marijuana Dispensaries - - SMMC Section 9.31.185, Medical Marijuana Dispensaries Pawn Shops - - Swap Meets - - Industrial Uses Artist’s Studio L(2) L(2) Commercial Kitchens - - Industry, Limited L(9) L(9) Media Production See sub-classifications below. Support Facilities L(1) L(1) Transportation, Communication, and Utilities Uses Bus/Rail Passenger Stations P P City Bike Share Facility P P Communication Facilities See sub-classifications below. Antennas and Transmission Towers - - Equipment within Buildings - - Light Fleet-Based Services - - Utilities, Major - - Utilities, Minor P P Specific Limitations: (1) Limited to upper floors, and on the ground floor where the entire tenant space shall be located at least 25 feet from the front property line, except for residential units shall be limited to upper floors only. (2) A minimum depth of 25 feet from the front parcel line adjacent to a street for the entire ground-floor street frontage shall be designed to accommodate interactive uses. For purposes of this limitation, interactive uses shall be commercial uses with an interactive element, including, but not limited to, retail sales, exhibitions, displays, demonstrations, or instruction. (5) Permitted if within buildings existing as of the date the ordinance codified in this Chapter is effective. Permitted within new buildings, except: 7.B Packet Pg. 238 9 of 11 (a) No individual ground floor tenant space shall occupy more than 7,500 square feet of floor area and/or exceed 50 linear feet of ground floor street frontage without a Conditional Use Permit. (b) Ground floor tenant spaces in the Santa Monica Place are not subject to size limitations. (6) Limited to shelters containing less than 55 beds; Conditional Use Permit required for emergency shelters with 55 or more beds. (8) Limited to alternative fuel vehicle automobile/vehicle dealer showrooms only. (9) A minimum depth of 25 feet from the front parcel line adjacent to a street for the entire ground-floor street frontage shall be designed to accommodate interactive uses. For purposes of this limitation, interactive uses shall be commercial uses with an interactive element, including, but not limited to, retail sales, dining, demonstrations, or instruction. (10) Permitted as an ancillary use to support a primary use. (12) General Markets greater than 15,000 square feet require approval of a Conditional Use Permit, except general markets in the Mixed-Use Boulevard district greater than 25,000 square feet require approval of a Conditional Use Permit. (13) If the commercial use requires a MUP or CUP, an application shall be required in accordance with SMMC, Chapter 9.41. Even if the commercial use would otherwise be permitted, no such use shall be approved where, given the design or proposed design of the live-work unit, there would be the potential for adverse health impacts from the proposed use on the people residing in the unit. An example of a potential health impact is the potential for food contamination from uses that generate airborne particulates in a unit with an unenclosed kitchen. (15) Limited to the ground floor with frontage along 2nd Court and 3rd Court alleys or to upper floors. (17) Youth-serving personal services, physical training requires review and approval of a passenger loading and drop-off plan by the Director. 7.B Packet Pg. 239 10 of 11 (21) No individual Fitness Center tenant space shall exceed 100 linear feet of ground floor street frontage without the approval of a Conditional Use Permit. (22) Restaurant, Limited-Service and Take-Out establishments with frontage on the Third Street Promenade and the following characteristics shall be prohibited: (a) More than 150 locations nationwide at the time that the application for the establishment is deemed complete by the City; and (b) Characteristics, including but not limited to, orders placed at a walk-up window, counter, or machine; payment prior to food consumption; and food served with disposable, one-time, or limited-use wrapping, containers, or utensils. Alternative Actions Council may choose to further limit the locations of auto dealer showrooms if there is concern of a potential over-concentration of the use or if there is concern with the appropriateness of the use on the Third Street Promenade versus Second and Fourth Street. The Council could adopt the recommendation with a modification setting a limit to the number of showrooms per block face. Alternatively, the Council could adopt the recommendation to only allow the use on the Third Street Promenade and not include the BC (Second and Fourth Streets) District. Environmental Analysis The proposed Interim Zoning Ordinance 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 seen with certainty that there is no possibility that the proposed changes may have a significant effect on the environment. Neither the general plan land use designations nor zoning designations for the properties within the Third Street Promenade Area will be changed. The current development standards and land use regulations for the properties within the Third Street Promenade Area were analyzed in an Environmental Impact Report (SCH #2013091056) certified in 2017 in conjunction 7.B Packet Pg. 240 11 of 11 with the adoption of the City’s Downtown Community Plan. Therefore, 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 actions at this time. Increasing flexibility in leasing should also help to boost other important City revenue streams, including sales tax, which are essential to the City’s fiscal health. Prepared By: Beth Rolandson, Administrative Services Officer Approved Forwarded to Council Attachments: A. Adoption of Emergency Interim Zoning Ordinance Number 2636 Support and Facilitate Economic Recovery of Third Street Promenade Area 5/12/2020 (Web Link) B. Adoption of Emergency Interim Zoning Ord Number 2658 Extending Interim Zoning Regulations Adopted by Emergency IZO No. 2636 for Economic Recovery in Downtown District 11/10/20 (Web Link) C. Adoption of Emergency Interim Ord No. 2667 Making Minor Changes, Corrections & CClarifications to Interim Zoning Regulations Established by Emergency IZO No. 2636CCS 4/13/21 (Web Link) D. Adoption of Emergency Interim Zoning Ordinance No. 2882 E. CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes- 20210125 DRAFT F. PowerPoint Presentation 7.B Packet Pg. 241 1 City Council Meeting: January 25, 2022 Santa Monica, California ORDINANCE NUMBER _____ (CCS) (City Council Series) AN EMERGENCY INTERIM ZONING ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING INTERIM ZONING REGULATIONS ESTABLISHED BY EMERGENCY INTERIM ORDINANCE 2636 (CCS) AND EXTENDED AND AMENDED BY EMERGENCY INTERIM ZONING ORDINANCES 2658, 2667 AND 2682 (CCS) FOR ECONOMIC RECOVERY OF THE BC (PROMENADE) DISTRICT AND THOSE PORTIONS OF THE BC (2ND AND 4TH STREET) DISTRICT BOUNDED BY SECOND STREET TO THE WEST, BROADWAY TO THE SOUTH, 4TH STREET TO THE EAST, AND WILSHIRE BOULEVARD TO THE NORTH TO INCREASE FLEXIBILITY FOR AUTOMOBILE/VEHICLE SHOWROOMS WHEREAS, on July 25, 2017, the City Council of the City of Santa Monica (the “City Council”) adopted the Downtown Community Plan (“DCP”) which sets forth a vision for the continued vitality of the Third Street Promenade as a major public space framed by a mix of retail, restaurants, and services that form unique experiences enjoyable to both residents and visitors; and WHEREAS, the DCP supports activities that enrich the Promenade, including street performances and events that enliven the street and provide memorable experiences for visitors, while also seeking to expand cultural opportunities including live music venues and upgraded state-of-the art cinemas; and 7.B.e Packet Pg. 242 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 2 WHEREAS, the DCP acknowledges that the Promenade is an essential component of the Downtown’s economic sustainability and emphasizes the importance of reevaluating and refreshing the Promenade so that it remains attractive and exciting to residents and visitors alike; and WHEREAS, DCP Goal LU3 contemplates that the Downtown will continue to be the economic center for the City, providing a diverse and flexible mix of uses that can meet future resident, business and visitor demand; and WHEREAS, the DCP incorporates the provisions of Ordinance Number 2384 (CCS), adopted by the City Council on December, 13, 2011 (“Ordinance 2384”), by allowing alternative fuel automobile/vehicle showrooms, subject to certain limitations; and WHEREAS, in 2018, the City and Downtown Santa Monica, Inc. (“DTSM”) commenced a planning effort, “Promenade 3.0”, to study the future of the Third Street Promenade, and subsequently convened a “Promenade 3.0 Task force” to provide advice to the planning effort; and WHEREAS, on December 12, 2018, the scope of the Promenade 3.0 planning effort was presented to the Planning Commission; and WHEREAS, in April 2019, the Promenade 3.0 Task Force, Third Street property owners, and the DTSM board reviewed and commented on a “Project Vision/Goals” document intended to provide guidance to the Promenade 3.0 planning effort as it imagines new alternatives to the Promenade’s physical design, amendments to the City’s zoning ordinances, and programmatic activities; and 7.B.e Packet Pg. 243 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 3 WHEREAS, the City, after receiving input from DTSM staff, property owners, leasing agents, and DTSM board members identified a variety of amendments to the City’s zoning ordinances to reduce or eliminate regulations that may impede or delay commencement of tenancies and business operations and increase opportunities for a variety of retail, restaurant, and service uses; and WHEREAS, the Promenade 3.0 planning effort was organized into three “lanes” of activities, with “Lane 2” focusing on the evaluation of regulatory changes to private property to encourage diverse and engaging businesses; and WHEREAS, in Spring 2019, City and DTSM staff identified a number of potential revisions to regulations and process that fell within the “Lane 2” category, which included modifications to zoning to increase opportunities for nightlife and entertainment, provide flexibility to divide spaces and change uses to better meet market conditions, and improve the function of alleys, outdoor dining areas, and other ancillary spaces; and WHEREAS, on June 19, 2019, the “Project Vision/Goals” document was presented to the Planning Commission for review, and the Planning Commission adopted a resolution of intent to pursue zoning ordinance amendments relevant to “Lane 2”; and WHEREAS, at a subsequent meeting on October 2, 2019, the Planning Commission requested that City staff explore greater flexibility with more administrative approvals than currently available for uses falling within “Lane 2” and consented to piloting new regulations through an Interim Zoning Ordinance (“IZO”); and 7.B.e Packet Pg. 244 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 4 WHEREAS, at a Promenade 3.0 study session on November 5, 2019, City Council responded positively to fostering the development of nightlife, cultural, and entertainment uses that encourage patronage of physical establishments and increase pedestrian activity on the Promenade at alternate times of day, supporting private property owners in adapting their spaces to an evolving retail environment and selecting tenants that present the Promenade as unique in the landscape of competitive regional destinations, and delegating review authority to City staff and otherwise codifying adaptability and flexibility to allow for nimble and efficient re- tenanting of vacancies as retail concepts continue to evolve; and WHEREAS, on March 13, 2020, the City Manager, in his role as the Director of Emergency Services, (“Director of Emergency Services”) proclaimed the existence of a local emergency pursuant to Chapter 2.16 of the Santa Monica Municipal Code to ensure the availability of mutual aid and an effective the City’s response to the novel coronavirus (“COVID-19”) and this local emergency was restated on March 14, 2020, through a revised declaration of local emergency to ensure compliance with all digital signature requirements (the “Executive Order”); and WHEREAS, on March 16, 2020 the Director of Emergency Services issued a Third Supplement to the Executive Order, requiring the closure of a wide range of businesses including bars, nightclubs, on-premises restaurant service, movie theatres, live performance venues, gyms, fitness centers, spas, hair salons, massage parlors, and nail salons; and 7.B.e Packet Pg. 245 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 5 WHEREAS, on March 19, 2020, California Governor Gavin Newsom issued Executive Order N-33-20 directing all residents of the State of California to heed directives issued by the State Health Officer on the same date instructing all Californians to stay home except as needed to maintain continuity of operations of the federal critical infrastructure sectors; and WHEREAS, on March 19, 2020, the Los Angeles County Department of Public Health issued an enhanced Health Officer Order, the Safer at Home Order for Control of COVID-19, amending and superseding its earlier March 16, 2020, Order, closing all nonessential businesses, and limiting gatherings to 9 people or less; and WHEREAS, since March 19, 2020, the Los Angeles County Department of Public Health has on multiple occasions amended and modified its Health Officer Order, recognizing the issues posed by existing community transmission of COVID-19 in Los Angeles County, and in response maintaining public health measures that have, at differing times, included strict limitations on public gatherings, required closures of certain businesses, and strict limitations and protocols for the operations of businesses permitted to remain open; and WHEREAS, on May 29, 2020, the Director of Emergency Services issued the 18th Supplement to the Executive Order, which temporarily permitted outdoor uses to provide additional opportunities for businesses to operate in compliance with the Health Officer Order, and was subsequently revised to expand opportunities for outdoor operations in response to amendments to the Health Officer Order and community input; and 7.B.e Packet Pg. 246 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 6 WHEREAS, five months after the 18th Supplement was issued, 224 businesses, including restaurants, retail, fitness and personal services, had submitted applications for such outdoor operations; and WHEREAS, the City’s business improvement districts have reported that at least 70 small businesses have permanently closed across many sectors, including retail, leisure, and restaurants; 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, the hardest hit sectors in Santa Monica include retail and arts/entertainment/leisure, initially representing the temporary closure of over approximately 1,300 businesses employing approximately 11,000 people; and WHEREAS, some of the actions that the City has taken during this state of emergency to support local business are: commercial eviction protections; suspension of late fees for City-imposed bills and taxes and parking restrictions in green zones; a website with business resources; and assistance for restaurants and food retailers by allowing sales of alcohol via delivery and takeout, providing flexibility for restaurants to sell groceries, and allowing curbside pickup; and WHEREAS, the City is also building upon the existing Buy Local program and providing free marketing support through an interactive map showing available essential services providers that are open providing an avenue for Santa Monica residents to support local businesses; and 7.B.e Packet Pg. 247 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 7 WHEREAS, on April 14, 2020, the City Council directed that restructuring City services be prioritized on foundational services, emergency response, and economic recovery; and WHEREAS, the City has continued to engage in an economic recovery strategy that involves a multi-pronged approach focusing on five areas: business retention and reopening; business process and permitting; publicity and marketing, community economic development, re-employment, and local hiring; and federal and state resources; and WHEREAS, the Promenade’s past success has resulted from the creation of an authentic urban retail, dining, and cinema experience; and WHEREAS, as the commercial and economic landscape evolves, the Promenade’s economic recovery and competitive advantage will depend on its ability to deliver on a diverse range of unique dining, retail, and entertainment uses; and WHEREAS, it will facilitate economic recovery of the Promenade to extend to the area surrounding the Promenade that is bounded by 2nd Street to the west, Broadway to the south, 4th Street to the east, and Wilshire Boulevard to the north, regulatory relief consistent with that provided to the Promenade, including in particular increased flexibility in use for alleys adjacent to the Promenade; and WHEREAS, remaining portions of the BC (2nd & 4th Street) District are in closer proximity to more concentrated residential uses and the proposed relaxed restrictions could intrude on those uses; and 7.B.e Packet Pg. 248 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 8 WHEREAS, on May 12, 2020, the City Council adopted Emergency Interim Zoning Ordinance Number 2636 (CCS) (“Interim Zoning Ordinance 2636”), 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 Number 2658 (CCS) (“Interim Zoning Ordinance 2658”), which amended the interim zoning regulations adopted by Interim Zoning Ordinance 2636 (the “interim zoning regulations”) to expand eligibility for alternate compliance with loading standards and extend the term of the interim zoning regulations to December 31, 2022 to allow for additional testing and monitoring of their efficacy and to facilitate the continued economic recovery of local businesses; and WHEREAS, on April 13, 2021, the City Council adopted Emergency Interim Zoning Ordinance 2667, making minor changes, corrections and clarifications to the interim zoning regulations to: remove the limitation on physical training uses 7.B.e Packet Pg. 249 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 9 to upper floors and on the ground floor only when the entire tenant space is located at least 50 feet from the front property line along the Promenade within the BC (Promenade) District; clarify that fortunetelling and large scale facilities are permitted, except that large scale facilities operating as fitness centers that exceed 100 linear feet of ground floor frontage must obtain approval by Conditional Use Permit; and incorporate changes made by Ordinance No. 2649 to permit ADUs and JADUs, and Ordinance No. 2661 to prohibit certain fast food restaurants in establishments with frontage along the Third Street Promenade; and WHEREAS, on April 6, 2021, the Governor of the State of California announced the California would fully re-open its economy on June 15, 2021, provided that vaccine supply was sufficient and hospitalization rates were stable and low; and WHEREAS, on May 21, 2021, the California Department of Public Health announced that, other than for mega events (those with crowds greater than 5,000 for indoor events and 10,000 for outdoor events), beginning on June 15, 2021, the State would not impose on businesses restrictions on capacity and physical distancing; and WHEREAS, on May 21, 2021, the Los Angeles County Department of Public Health announced that the County would align with the State’s June 15, 2021 reopening plans that ease many capacity limits and distancing requirements for businesses; and 7.B.e Packet Pg. 250 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 10 WHEREAS, the City has an important government interest in maintaining a thriving business community and protecting the health, safety, and economic welfare of its citizens and businesses; and WHEREAS, beginning in January 2021, in an effort to further preserve and enhance the economic vitality of the Promenade, DTSM engaged in a series of conversations and workshops to develop the Draft Third Street Promenade Stabilization and Economic Vitality Plan (the “Promenade Vitality Plan”); and WHEREAS, on or about July 27, 2021, DTSM published a final draft of the Promenade Vitality Plan, which sets forth short-term and medium-term recommendations for zoning and regulatory changes designed to provide immediate relief and promote the long-term stabilization and economic vitality of the Promenade; and WHEREAS, the Plan’s short-term recommendations call for the City to permit additional uses on the Promenade, streamline approval processes for certain uses already allowed on the Promenade by minimizing applicability of Minor Use Permits and Conditional Use Permits, and increase flexibility in development standards for tenant spaces; and WHEREAS, on August 4, 2021, the Planning Commission reviewed and made recommendations to the City Council on the Promenade Vitality Plan, which, among other things, included support for the proposed short-term changes to permit additional uses, reduce the applicability of discretionary permits, and increase flexibility in development standards; and 7.B.e Packet Pg. 251 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 11 WHEREAS, on August 24, 2021, the City Council directed staff to present to the Planning Commission for initial consideration and then to the Council a text amendment to the Zoning Ordinance to remove the Minor Use Permit requirement for tattoo or body modification parlors the Downtown (LT, NV, BC, TA, OT, and WT) and Mixed-Use and Commercial (MUBL, MUB, GC, and NC) Districts, subject to the special requirements set out in SMMC Section 9.31.230(C).; and WHEREAS, on September 28, 2021, the City Council adopted emergency Interim Zoning Ordinance Number 2682 (CCS) to incorporate the short-term recommendations of the Promenade Vitality Plan and to further reduce the applicability of discretionary approvals along the Promenade; and WHEREAS, the ongoing COVID-19 pandemic and subsequent economic recovery has been difficult for many segments of the economy, even in light of economic efforts that are currently underway, the Downtown area is experiencing economic uncertainty, with the vacancy rate along the Promenade recently rising to almost 25%; and WHEREAS, as retail environments across the region and country continue to evolve and recover from the impacts of the COVID-19 pandemic, there is a need to adjust allowed uses and activities to enable economic recovery and provide increased flexibility to minimize vacancies along the Promenade and immediately surrounding areas; and WHEREAS, since the adoption of Ordinance 2384 in 2011, the number of traditional fuel vehicle manufacturers that have expanded product lines to include hybrid and electric vehicles has increased rapidly, with many manufacturers 7.B.e Packet Pg. 252 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 12 announcing plans to electrify large portions of their fleets over the next decade; and WHEREAS, due to the continued economic uncertainty arising out of the COVID-19 pandemic, the high vacancy rate along the Promenade, and the number of traditional fuel vehicle manufacturers that have expanded product lines to include hybrid and electric vehicles, including plans to electrify large portions of their fleets over the next decade, the City Council desires to amend the interim zoning regulations to permit automobile/vehicle showrooms of any fuel type along the Promenade and in the immediately surrounding area in order to increase flexibility of use and opportunities for economic recovery; and WHEREAS, the City Council finds and declares that a current and immediate threat to the public health, safety, and general welfare continues to exist due to the devastating impact the COVID-19-mandated closures and limitations have had on the local economy, and the proposed interim zoning regulations to stimulate economic recovery are necessary to protect the public health, safety, and welfare. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Area Subject to Interim Zoning Regulations. The interim zoning regulations set forth in Section 2, below, shall apply to all properties located in the BC (Promenade) District and parcels located in that portion of the BC (2nd & 4th Streets) District bounded by 2nd Street to the west, Broadway to the south, 4th Street to the east, and Wilshire Boulevard to the north (collectively the “Third Street 7.B.e Packet Pg. 253 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 13 Promenade Area”). The remaining parcels located in the BC (2nd & 4th Streets) District along the west side of 2nd Street and the east side of 4th Street shall not be subject to the interim zoning regulations set forth in this Interim Zoning Ordinance. SECTION 2. Interim Zoning Regulations. The following interim zoning regulations shall apply to the Third Street Promenade Area: (a) Interim Land Use Regulations. Notwithstanding anything to the contrary in Santa Monica Municipal Code Section 9.10.040, the following land use table prescribes the land use regulations for the Third Street Promenade Area. The regulations are established by letter designations in the land use table. 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. “MUP” designates use classifications that are permitted after review and approval of a Minor Use Permit. “CUP” designates use classifications that are permitted after review and approval of a Conditional Use Permit. “–” designates uses that are not permitted. Land uses are defined in Chapter 9.51 (“Use Classifications”) of Article 9 of the Santa Monica Municipal Code (“Zoning Ordinance”). Use classifications and sub- classifications not listed in the table are prohibited unless the Director determines whether a specific use not listed in the table shall be deemed to be within one or 7.B.e Packet Pg. 254 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 14 more use classifications pursuant to Chapter 9.51. 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 also notes additional use regulations that apply to various uses. Section numbers in the right-hand column refer to other Sections of the Zoning Ordinance that are not affected by the interim zoning regulations. Use Classification BC (Promenade) BC (2nd & 4th Streets) Additional Regulations Residential Uses Residential Housing Types See sub-classifications below. Single Unit Dwelling L(1) L(1) Accessory Dwelling Unit P P Section 9.31.025, Accessory Dwelling Units and Junior Accessory Dwelling Units Junior Accessory Dwelling Unit P P Section 9.31.025, Accessory Dwelling Units and Junior Accessory Dwelling Units Duplex L(1) L(1) Multiple-Unit Structure L(1) L(1) Senior Citizen Multiple-Unit Residential L(1) L(1) Single-Room Occupancy Housing L(1) L(1) Group Residential L(1) MUP, L(1) Congregate Housing L(1) CUP, L(1) SMMC Section 9.31.110, Congregate and Transitional Housing Senior Group Residential L(1) MUP, L(1) SMMC Section 9.31.310, Senior Group Residential Elderly and Long-Term Care L(1) L(1) Emergency Shelters CUP/L(1) L(1), L(6)/CUP Family Day Care See sub-classifications below. Large L(1) L(1) SMMC Section 9.31.140, Family Day Care, Large Small L(1) L(1) Residential Facilities See sub-classifications below. Residential Care, General L(1) L(1) SMMC Section 9.31.270, Residential Care Facilities Residential Care, Limited L(1) L(1) Residential Care, Senior L(1) L(1) Hospice, General L(1) L(1) 7.B.e Packet Pg. 255 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 15 Use Classification BC (Promenade) BC (2nd & 4th Streets) Additional Regulations Hospice, Limited L(1) L(1) Supportive Housing L(1) L(1) Transitional Housing L(1) L(1) Public and Semi-Public Uses Adult Day Care L(1) L(1) Child Care and Early Education Facilities P P SMMC Section 9.31.120, Child Care and Early Education Facilities Colleges and Trade Schools, Public or Private L(1) L(1) Community Assembly L(15) P Community Gardens - P Cultural Facilities P P Hospitals and Clinics L(1) L(1) Park and Recreation Facilities, Public P P Public Safety Facilities P P Schools, Public or Private L(1) P Social Service Centers - P SMMC Section 9.31.350, Social Service Centers Commercial Uses Animal Care, Sales, and Services See sub-classifications below. Grooming and Pet Stores P L(5)/CUP No more than 10 dogs or cats can be kept overnight Pet Day Care Services - MUP Veterinary Services P MUP Automobile/Vehicle Sales and Service See sub-classifications below. Alternative Fuels and Recharging Facilities - - Automobile Rental L(10) L(10) Automobile Storage Use - - New Automobile/Vehicle Sales and Leasing L(8), L(5)/CUP L(8), L(5)/CUP Additions 7,500 sq ft or less to Automobile/ Vehicle Sales and Leasing buildings existing as of 7/06/2010 - - SMMC Section 9.31.070 Automobile/ Vehicle Sales, Leasing, and Storage Additions larger than 7,500 sq ft to Automobile/Vehicle Sales and Leasing buildings existing as of 7/06/2010 - - Automobile/Vehicle Repair, Major - - Automobile/Vehicle Service and Repair, Minor - - Automobile/Vehicle Washing - - Service Station - - Towing and Impound - - Banks and Financial Institutions See sub-classifications below. Banks and Credit Unions - - Check Cashing Businesses - - Business Services L(15) L(5)/CUP Commercial Entertainment and Recreation See sub-classifications below. Cinemas & Theaters, up to 99 seats P P Cinemas & Theaters, more than 99 seats P CUP Convention and Conference Centers P CUP Large-Scale Facility L(21)/CUP L(21)/CUP 7.B.e Packet Pg. 256 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 16 Use Classification BC (Promenade) BC (2nd & 4th Streets) Additional Regulations Small-Scale Facility P L(5)/CUP SMMC Section 9.31.340 Small Scale Facility Fortunetelling P P Eating and Drinking Establishments See sub-classifications below. Bars/Nightclubs/Lounges P P Restaurants, Full-Service, Limited Service & Take-out (2,500 sq ft and smaller, including Outdoor Dining and Seating) L(22) P SMMC Section 9.31.040, Alcoholic Beverage Sales SMMC Section 9.31.280, Restaurants, Limited Service, and Take-Out Only SMMC Section 9.31.200, Outdoor Dining and Seating Restaurants, Full-Service, Limited Service & Take-out (2,501 – 5,000 sq ft, including Outdoor Dining and Seating) L(22) P Restaurants, Full-Service, Limited Service & Take-out (greater than 5,000 sq ft, including Outdoor Dining and Seating) L(22) P Food Hall P P Equipment Rental - - Food and Beverage Sales See sub-classifications below. Convenience Market L(5)/CUP L(5)/CUP SMMC Section 9.31.040, Alcoholic Beverage Sales Farmers’ Market P P General Market L(12)/ CUP L(12)/ CUP SMMC Section 9.31.040, Alcoholic Beverage Sales Liquor Stores P CUP Funeral Parlors and Mortuaries - - Instructional Services L(1), L(5)/CUP L(5)/CUP Live-Work L(1)(13) L(13) SMMC Section 9.31.170, Live-Work Lodging See sub-classifications below. Bed and Breakfast P MUP SMMC Section 9.31.090, Bed and Breakfasts Hotels and Motels P CUP Maintenance and Repair Services - - Nurseries and Garden Centers - L(5)/CUP SMMC Section 9.31.220, Outdoor Retail Display and Sales Offices See sub-classifications below. Business and Professional L(1) L(1) Creative L(1) L(1) Medical and Dental P L(1) Walk-In Clientele L(1) L(5)/CUP Outdoor Newsstands P P SMMC Section 9.31.210, Outdoor Newsstands Parking, Public or Private - CUP 7.B.e Packet Pg. 257 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 17 Use Classification BC (Promenade) BC (2nd & 4th Streets) Additional Regulations Personal Services See sub-classifications below. General Personal Services P L(5)/CUP SMMC Section 9.31.230, Personal Service Physical Training L(17), L(21)/CUP L(17), L(5)/CUP Tattoo or Body Modification Parlor P MUP SMMC Section 9.31.230, Personal Service Retail Sales See sub-classifications below. Building Materials Sales and Services - - SMMC Section 9.31.220, Outdoor Retail Display and Sales General Retail Sales, Small-Scale P L(5)/CUP General Retail Sales, Medium-Scale P CUP General Retail Sales, Large-Scale - - Medical Marijuana Dispensaries - - SMMC Section 9.31.185, Medical Marijuana Dispensaries Pawn Shops - - Swap Meets - - Industrial Uses Artist’s Studio L(2) L(2) Commercial Kitchens - - Industry, Limited L(9) L(9) Media Production See sub-classifications below. Support Facilities L(1) L(1) Transportation, Communication, and Utilities Uses Bus/Rail Passenger Stations P P City Bike Share Facility P P Communication Facilities See sub-classifications below. Antennas and Transmission Towers - - Equipment within Buildings - - Light Fleet-Based Services - - Utilities, Major - - Utilities, Minor P P Specific Limitations: (1) Limited to upper floors, and on the ground floor where the entire tenant space shall be located at least 25 feet from the front property line, except for residential units shall be limited to upper floors only. (2) A minimum depth of 25 feet from the front parcel line adjacent to a street for the entire ground-floor street frontage shall be designed to accommodate interactive uses. For purposes of this limitation, interactive uses shall be commercial uses with an interactive element, including, but not limited to, retail sales, exhibitions, displays, demonstrations, or instruction. (5) Permitted if within buildings existing as of the date the ordinance codified in this Chapter is effective. Permitted within new buildings, except: (a) No individual ground floor tenant space shall occupy more than 7,500 square feet of floor area and/or exceed 50 linear feet of ground floor street frontage without a Conditional Use Permit. (b) Ground floor tenant spaces in the Santa Monica Place are not subject to size limitations. (6) Limited to shelters containing less than 55 beds; Conditional Use Permit required for emergency shelters with 55 or more beds. (8) Limited to alternative fuel vehicle automobile/vehicle dealer showrooms only. 7.B.e Packet Pg. 258 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 18 (9) A minimum depth of 25 feet from the front parcel line adjacent to a street for the entire ground-floor street frontage shall be designed to accommodate interactive uses. For purposes of this limitation, interactive uses shall be commercial uses with an interactive element, including, but not limited to, retail sales, dining, demonstrations, or instruction. (10) Permitted as an ancillary use to support a primary use. (12) General Markets greater than 15,000 square feet require approval of a Conditional Use Permit, except general markets in the Mixed-Use Boulevard district greater than 25,000 square feet require approval of a Conditional Use Permit. (13) If the commercial use requires a MUP or CUP, an application shall be required in accordance with SMMC, Chapter 9.41. Even if the commercial use would otherwise be permitted, no such use shall be approved where, given the design or proposed design of the live-work unit, there would be the potential for adverse health impacts from the proposed use on the people residing in the unit. An example of a potential health impact is the potential for food contamination from uses that generate airborne particulates in a unit with an unenclosed kitchen. (15) Limited to the ground floor with frontage along 2nd Court and 3rd Court alleys or to upper floors. (17) Youth-serving personal services, physical training requires review and approval of a passenger loading and drop-off plan by the Director. (21) No individual Fitness Center tenant space shall exceed 100 linear feet of ground floor street frontage without the approval of a Conditional Use Permit. (22) Restaurant, Limited-Service and Take-Out establishments with frontage on the Third Street Promenade and the following characteristics shall be prohibited: (a) More than 150 locations nationwide at the time that the application for the establishment is deemed complete by the City; and (b) Characteristics, including but not limited to, orders placed at a walk-up window, counter, or machine; payment prior to food consumption; and food served with disposable, one-time, or limited-use wrapping, containers, or utensils. (b) Conversion of Any Portion of an Eating and Drinking Establishment to Any Other New or Expanded Use Located on the Ground Floor. Notwithstanding the provisions of Santa Monica Municipal Code Section 9.10.040(A), that section shall not apply in the Third Street Promenade Area. (c) Abandonment of Legal Nonconforming Eating and Drinking Establishment and Retail Uses. Notwithstanding any provisions of Santa Monica Municipal Code Section 9.27.050(B) to the contrary, the following legal, nonconforming uses may be resumed, reestablished, or reopened even if that nonconforming use has been abandoned for more than one year, unless a conforming use that meets the applicable requirements of the Zoning Ordinance 7.B.e Packet Pg. 259 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 19 has been lawfully established in the space previously occupied by the nonconforming use: 1. Bar/nightclub/lounge; 2. Restaurant, full service 3. Restaurant, limited service and take-out; 4. Food hall; 5. General retail sales, small scale; and 6. General retail sales, medium scale. (d) Offsite Parking Requirements for Food Halls. For application to the Third Street Promenade Area only, the off-street parking requirements set out in Santa Monica Municipal Code Section 9.28.060 shall be modified to provide as follows for Food Halls, as defined by paragraph (h)(2) below: off-street parking shall be provided for Food Halls in an amount of no more than 1 space per 500 sq. ft. (e) Loading Space Requirements for New Buildings, Additions, Enlargements of Use, and Changes of Use. Notwithstanding any provisions of Santa Monica Municipal Code Section 9.28.080 to the contrary, no building permit shall issue for a new building, addition, enlargement of use, or change in use within the Third Street Promenade Area unless the Director has reviewed and approved a parking and loading operations plan for the proposed project. The Director may, in accordance with the requirements of this paragraph, approve a parking and loading operations plan that results in a waiver or reduction in the number and/or 7.B.e Packet Pg. 260 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 20 dimensions of loading areas and spaces otherwise required under Section 9.28.080. The parking and loading operations plan shall include information as deemed appropriate by the Director for approval, including, but not limited to, plans, prior uses, easements, and other items necessary or relevant to describe existing conditions and the proposed project. The Director may approve a parking and loading operations plan upon a determination that the plan is not in conflict with other project operations and impacts to the public right-of-way, which may include, but not be limited to, impacts to resource, recovery and recycling operations, noise impacts, and public safety concerns. (f) Alcohol Exemption Zoning Conformance Permit. Notwithstanding any provisions of Santa Monica Municipal Code Section 9.31.040(D) to the contrary, the following regulations related to Alcohol Exemption Zoning Conformance Permits shall apply in the Third Street Promenade Area: 1. The following uses that offer alcoholic beverages shall be exempted from the provisions of the Conditional Use Permit requirement of subsection 9.31.040(B) if such a permit is approved in writing by the Director and if the applicant agrees in writing to comply with all of the following criteria and conditions set forth in paragraph 2, below: a. Bar/nightclub/lounge; b. Restaurant, full service; c. Restaurant, limited service and take-out; d. Food hall; e General retail sales, small scale; and 7.B.e Packet Pg. 261 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 21 f. General retail sales, medium scale 2. The Director may approve a permit under paragraph 1, above, subject to the following criteria and conditions: a. The permitted hours of alcoholic beverage service shall be 8:00 a.m. to 2:00 a.m. daily. b. From 8:00 am until at least 10:00 p.m., food service shall be available at all times when alcohol is being served. c. Sale of alcoholic beverages for consumption beyond the premises shall be permitted if authorized by the premises’ California Alcoholic Beverage Control (“ABC”) license. d. Window or other signage visible from the public right- of-way that advertises beer or alcohol shall not be permitted. e. Except as may be permitted by a Temporary Use Permit issued in accordance with Santa Monica Municipal Code Chapter 9.44, Temporary Use Permits, alcohol shall not be served in any disposable containers such as disposable plastic or paper cups. f. The premises shall at all times conduct operations in a manner not detrimental to surrounding properties by reason of lights, noise, activities or other actions. The operator of the premises shall control noisy patrons leaving the premises. g. Liquor bottle service shall be prohibited. Wine and beer bottle service shall not be available to patrons unless food service is 7.B.e Packet Pg. 262 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 22 provided concurrent with the bottle service. For purposes of this paragraph, “bottle service” means the service of any full bottle of liquor, wine, or beer of more than 375 ml, along with glass ware, mixers, garnishes, or other items used for the mixing of drinks, which patrons are able to then use to make their own drinks or pour their own wine or beer. h. The premises shall not organize or participate in organized “pub-crawl” events where participants or customers pre- purchase tickets or tokens to be exchanged for alcoholic beverages at the premises. i. Premises with amplified music shall be required to comply with Chapter 4.12, Noise, of the Santa Monica Municipal Code. j. Prior to occupancy, a security plan for the premises shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues. k. Prior to occupancy, the operator of the premises shall submit a plan for approval by the Director regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol-awareness training program for all employees having contact with the public and shall state management’s policies addressing alcohol consumption and inebriation. The program shall require all employees having contact 7.B.e Packet Pg. 263 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 23 with the public to complete an ABC-sponsored alcohol awareness training program within 90 days of the effective date of the exemption determination. In the case of new employees, the plan shall require all such new employees to attend an ABC-sponsored alcohol awareness training program within 90 days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved by the Director. The operator of the premises shall provide the City with an annual report regarding compliance with this requirement. The operator of the premises shall be subject to any future Citywide alcohol awareness training program affecting similar establishments. l. Within 30 days from the date of approval of this exemption, the applicant shall provide a copy of the signed exemption to the local office of the ABC. m. Prior to occupancy, the operator of the premises shall submit a plan describing the premises’ designated driver program, which shall be offered by the operator to the premises’ patrons. The plan shall specify how the operator will inform patrons of the program, such as by offering on the menu a free non-alcoholic drink for every party of two or more ordering alcoholic beverages. n. Notices shall be prominently displayed urging patrons to leave the premises and neighborhood in a quiet, peaceful, and 7.B.e Packet Pg. 264 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 24 orderly fashion and to not litter or block driveways in the neighborhood. o. Employees of the premises shall walk a 100-foot radius from the premises at some point prior to 30 minutes after closing and shall pick up and dispose of any discarded beverage containers and other trash left by patrons. p. The exemption shall apply to approved and dated plans, a copy of which shall be maintained in the files of the City Planning Division. Project development shall be consistent with such plans, except as otherwise specified in these conditions of approval. Minor amendments to the plans shall be subject to approval by the Director. q. In the event of a conflict between the regulations of this Section and regulations issued by the ABC, the ABC regulations shall control and be deemed to have modified contrary provisions of this Section. (g) Zoning Conformance Review for Existing Alcohol Outlets. Notwithstanding anything to the contrary in Santa Monica Municipal Code Section 9.31.040(E), the following regulations shall apply to Zoning Conformance Review for existing alcohol outlets in the Third Street Promenade Area: 1. When an existing alcohol outlet without a Conditional Use Permit changes ownership or undergoes an interior remodel, it shall be subject to Zoning Conformance review to confirm consistency with current 7.B.e Packet Pg. 265 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 25 operations, except that an existing alcohol outlet that was lawfully established and is nonconforming solely due to the lack of an approved Conditional Use Permit shall not be subject to a zoning conformance review if the licensed premises have remained in continuous operation without substantial change in mode or character of operation. As used in this paragraph, a substantial change in mode or character of operation shall include, but is not limited to: a 5 percent increase in the floor area of the premises; a 10 percent increase in the shelf area used for the display of alcoholic beverages; implementing a cover charge, that is, requiring payment from customers before they may enter the premises; or a 5 percent increase or decrease in the number of seats in any restaurant that serves alcoholic beverages, but in no case shall the increase exceed any established seating limitation in the underlying zoning district. 2. When an existing alcohol outlet with a Conditional Use Permit changes ownership or undergoes an interior remodel, it shall be subject to Zoning Conformance review to ensure compliance with the existing CUP. (h) Interim Use Classifications. For application to the Third Street Promenade Area only, the nonresidential use classifications set out in Santa Monica Municipal Code Section 9.51.030 are modified as follows: 1. Small-Scale Facility. The commercial use classification set out in Santa Monica Municipal Code Section 9.51.030(B)(7)(e) is modified to read as follows: This classification includes small, generally indoor facilities that occupy less than 5,000 square feet of building area, such as billiard parlors, card rooms, 7.B.e Packet Pg. 266 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 26 game arcades, dance halls, small tennis club facilities, poolrooms, and amusement arcades. 2. Food Hall. There is established a new Food Hall commercial use category as follows: Establishments consisting of three or more individually- licensed businesses within an enclosed building where food and beverages may be consumed on the premises, taken out, or delivered, and may also include small retail venues. Patrons may be served while seated and pay after eating, or orders may be made at a walk-up window, counter, machine, or remotely, and payment made prior to food consumption. Characteristics of food halls include but are not limited to: shared entrance/lobby areas, compartmentalized spaces for individually licensed businesses, shared eating areas, shared restrooms, and shared “back of house” areas (e.g., storage, dishwashing, food preparation). Each compartmentalized space may have access to the exterior of the building, along with outdoor dining and seating areas, which may be shared with other businesses within the establishment. 3. Personal Services, Physical Training. The commercial use classification set out in Santa Monica Municipal Code Section 9.51.030(B)(21)(b) is modified to read as follows: Gyms exercise clubs, or studios offering martial arts, physical exercise, yoga training and similar types of instruction to classes and groups of less than 5,000 square feet. This classification also includes exclusively youth-serving studios of less than 3,000 square feet offering performing arts, dance, martial arts, physical exercise, and similar types of instruction to classes and groups of more than 5 persons. 7.B.e Packet Pg. 267 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 27 4. Industry, Limited. The industrial use classification set out in Santa Monica Municipal Code Section 9.51.030(C)(5) is modified to read as follows: Establishments engaged in light industrial activities taking place primarily within enclosed buildings and producing minimal impacts on nearby properties. This classification includes the manufacturing of finished parts or products primarily from previously prepared materials; printing, engraving, and publishing; sign painting shops; machine and electrical shops; computer and electronic product manufacturing; furniture and related product manufacturing; and industrial services. It also includes the preparation, manufacturing, and/or packaging of food for off-site consumption. Typical food manufacturing uses include canners, roasters, breweries, wholesale bakeries, and frozen food manufacturers. (i) Floor Area Ratio Calculations. Notwithstanding anything to the contrary in Santa Monica Municipal Code Sections 9.04.080 and 9.04.090(A)(2), for properties located in the BC (Promenade) District, unenclosed rooftop areas used for commercial or restaurant activity (“unenclosed rooftop areas”) shall be excluded from floor area and floor area ratio calculations, subject to the following specific standards: 1. Unenclosed rooftop areas shall be surrounded by a barrier not to exceed 42 inches in height with an allowable transparent barrier not to exceed 42 inches in height. The barrier shall be permanently affixed to the rooftop. 2. Unenclosed rooftop areas, including barrier, shall be set back a minimum five feet from the edges of the building. 7.B.e Packet Pg. 268 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 28 3. Portable restrooms, storage sheds, or other similar temporary structures shall not be permitted on the rooftop. 4. Rooftop features such as sunshades, trellises, or canopies shall not exceed 10 feet in height with a maximum aggregate coverage of 50% of the unenclosed rooftop area. 5. Unenclosed rooftop areas shall not be accessible to the public outside of their normal business operating hours. SECTION 3. 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. SECTION 4. 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 Emergency Interim Zoning Ordinance would be subsequently declared invalid or unconstitutional. SECTION 5. The Mayor shall sign and the City Clerk shall attest to the passage of this Emergency Interim Zoning Ordinance. The City Clerk shall cause 7.B.e Packet Pg. 269 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to 29 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 6. This Emergency Interim Zoning Ordinance shall be of no further force or effect after December 31, 2022 unless it is otherwise extended pursuant to Santa Monica Municipal Code Section 9.46.090 or continues to remain in force pursuant to the Revised Fourth Supplement or other valid emergency order. APPROVED AS TO FORM: _________________________ JOSEPH LAWRENCE Interim City Attorney 7.B.e Packet Pg. 270 Attachment: CCD-IZO-Promenade3.0 Economic Recovery Vitality Auto Dealer Changes-20210125 DRAFT [Revision 1] (4909 : Emergency IZO to Permitting Efficiency Study May 18, 2021 January 25, 2022 Promenade Auto Dealerships 7.B.f Packet Pg. 271 Attachment: PowerPoint Presentation (4909 : Emergency IZO to Allow Automobile Dealers City Council | 01.25.22 |Item 7-B Recommended Action •Adopt Emergency Interim Ordinance amending the Promenade Interim Zoning Ordinance by allowing automobile/vehicle showrooms of all fuel types 7.B.f Packet Pg. 272 Attachment: PowerPoint Presentation (4909 : Emergency IZO to Allow Automobile Dealers •Alternative fuel automobile/vehicle showrooms have been allowed on the Third Street Promenade since 2011 •Area expanded to 2nd and 4 th Streets adjacent to Promenade with the 2017 adoption of the Downtown Community Plan •Evolving nature of retail and automobile industry •Concern about the health and vitality of Downtown and Third Street Promenade in particular City Council | 01.25.22 |Item 7-B Background 7.B.f Packet Pg. 273 Attachment: PowerPoint Presentation (4909 : Emergency IZO to Allow Automobile Dealers City Council | 01.25.22 |Item 7 -B Subject Area Third Street Promenade 2nd St 4th St 7.B.f Packet Pg. 274 Attachment: PowerPoint Presentation (4909 : Emergency IZO to Allow Automobile Dealers IZO Land Use Table, Specific Limitations: City Council | 01.25.22 |Item 7-B Proposed Change •Ancillary activities such as automobile repair, storage, and service would not be permitted •Increases flexibility of use and opportunities for economic recovery •Consistent with retail and industry trend of locating showrooms in high pedestrian areas New Automobile/Vehicle Sales and Leasing (8)Limited to alternative fuel vehicle automobile/vehicle dealer showrooms only. 7.B.f Packet Pg. 275 Attachment: PowerPoint Presentation (4909 : Emergency IZO to Allow Automobile Dealers City Council | 01.25.22 |Item 7-B Recommended Action •Adopt Emergency Interim Ordinance amending the Promenade Interim Zoning Ordinance by allowing automobile/vehicle showrooms of all fuel types 7.B.f Packet Pg. 276 Attachment: PowerPoint Presentation (4909 : Emergency IZO to Allow Automobile Dealers Permitting Efficiency Study May 18, 2021 January 25, 2022 Promenade Auto Dealerships 7.B.f Packet Pg. 277 Attachment: PowerPoint Presentation (4909 : Emergency IZO to Allow Automobile Dealers