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SR 01-25-2022 7E City Council Report City Council Meeting: January 25, 2022 Agenda Item: 7.E 1 of 7 To: Mayor and City Council From: David Martin, Director, Administration Subject: Introduction and Adoption of an Emergency Interim Zoning Ordinance to Extend Interim Zoning Regulations Established by Emergency Interim Zoning Ordinance 2593 (CCS), Extended by Emergency Interim Zoning Ordinances 2599 (CCS) and 2626 (CCS), and Amended by Emergency Interim Zoning Ordinance 2643 (CCS) Revising the Demolition Permit Review Process Relating to the Preservation of Historic Resources Recommended Action Staff recommends that the City Council introduce and adopt an emergency Interim Zoning Ordinance to extend interim zoning regulations for the demolition permit review process relating to the preservation of historic resources. Summary In November 2018, the City Council adopted emergency Interim Zoning Ordinance 2592 (CCS), revising the demolition permit review process for buildings or structures 40 years of age or older. The interim zoning regulations established by Interim Zoning Ordinance 2592 were extended to November 13, 2021 by Interim Zoning Ordinances 2599 (CCS) and 2626 (CCS) to allow further study of the implementation of the revised process. With the declaration of a local emergency, IZO timelines were extended during the pendency of the emergency, so the IZO continues to be in effect. As part of the City’s budget restructuring resulting from the impacts of the COVID- 19 pandemic, which included a reduction in Planning staff, Council approved a restructured historic preservation program, which included adoption of emergency Interim Zoning Ordinance 2643 (CCS), revising the interim demolition permit review 7.E Packet Pg. 292 2 of 7 process for buildings or structures 40 years of age or older. The revised process no longer includes a preliminary hearing by the Landmarks Commission to review demolition permits with the Landmarks Commission for properties 40 years of age and older. The ability for members of the public to file an application for designation of a building or structure as a City-designated Historic Resource during the 75-day waiting period remains. To help ensure the community has adequate information to determine whether to file an application, Council included additional noticing requirements in the revised process. If the 75-day waiting period lapses with no application filed, or if an application is filed and the building or structure is not designated, the demolition permit is issued. The proposed emergency extension to the IZO would extend the interim zoning regulations with the revised demolition process to November 13, 2023. The revised process has only been effective during the COVID-19 public health emergency, and this extension will allow for further study and monitoring of implementation of the revised process as economic recovery efforts continue prior to making permanent changes to the Zoning Ordinance. All timelines associated with the demolition review process, including time for the Landmarks Commission to review any designation application filed during the 75-day waiting period, will remain the same. Background In June 2018, Planning Staff and the City Attorney’s Office commenced a review of the City’s demolition process applicable to buildings over 40 years of age and, as discussed more fully in the Council’s November 13, 2018 and January 8, 2019 staff reports, suspended the Landmarks Commission’s review of demolition permits. As a result, between June 1, 2018 and November 13, 2018 when the interim regulations originally went into effect, the Landmarks Commission did not review or discuss 58 demolition permit applications and a temporary stopgap process was implemented. Public notice of demolition permit applications is provided online real-time through Open Data (https://data.smgov.net/Permits-Licenses/Active-Demolition-Permits-for- Buildings-over-40-Ye/nvzr-qc5r/data), the Landmarks Commission website 7.E Packet Pg. 293 3 of 7 (https://www.smgov.net/Departments/PCD/Boards-Commissions/Landmarks- Commission/) and via e-mail as requested, in addition to the required site posting. In considering the revised demolition review process recommended for Council adoption, staff focused on four objectives, which were developed based on feedback from the community, City Council, and Landmarks Commission on the temporary stopgap process and the foundations of the demolition application review process: 1. Clarifying the Landmarks Commission’s authority to exercise its regulatory role in reviewing historic resources impacts created by proposed demolitions 2. Transparency in the public process 3. Clarity for property owners 4. Balancing staff resources across the entire preservation program On November 13, 2018, Council adopted Emergency Interim Zoning Ordinance 2592 (CCS) (“Interim Zoning Ordinance 2592”) to establish temporary regulations for the demolition permit review process set forth in Santa Monica Municipal Code (“SMMC”) Section 9.25 (Demolition and Relocation Ordinance). These interim regulations were established to safeguard the City’s historic, aesthetic, and cultural heritage while also balancing legal and procedural considerations. The emergency Interim Zoning Ordinance went into effect immediately after Council adoption. On January 8, 2019, pursuant to Santa Monica Charter Section and SMMC Section 9.46.090(C), the City Council adopted emergency Interim Zoning Ordinance Number 2599 (CCS) (“Interim Zoning Ordinance 2599”) to extend the interim regulations. At that time staff recommended that the proposed extension of the interim zoning regulations continue for 10 months until November 13, 2019 to provide an opportunity for further study of key issues and monitor implementation before making permanent changes to SMMC Chapter 9.25. On November 12, 2019, Council adopted an extension to the emergency Interim Zoning Ordinance to November 13, 2021 to align with the anticipated schedule for the Landmarks Ordinance Update. The Landmarks 7.E Packet Pg. 294 4 of 7 Ordinance Update has continued to be delayed due to the reductions in staffing that occurred in June 2020. At its October 26, 2021 meeting, the City Council amended the fee schedule to provide that if the permit fee for an application to designate a property that is 40 years of age or older as a Landmark or Structure of Merit is filed while a demolition permit application is pending, the applicant for the Demolition Permit shall bear the actual costs of any historic consultant and the applicable Landmark Designation or Structure of Merit processing fee. Previously the applicant for the landmark or structure of merit designation would pay the processing fee. Discussion Implementation of the Emergency Interim Zoning Ordinance over the past two years has provided a consistent review process for both property owners and members of the public. The Landmarks Commission resumed meeting in July 2020 and the City has been regularly receiving nominations to designate properties associated with demolition application permits. Data on demolition and designation applications filed since the interim zoning regulations were revised in July 2020, include: • Number of demolition applications filed – 66 o Number of designation applications filed by community as a result of demolition review – 4 • Designation applications filed outside of demolition review process o Property owner-initiated designation applications – 2 o Community-initiated designation applications - 3 This appears to be approximately the same level of designation activity as compared to the period before the interim zoning regulations were amended, as reported in the March 5, 2021 City Council Information Item (Attachment B). It does not appear that the revisions to the demolition review have resulted in a change in the rate of historic resources preservation. The community remains actively 7.E Packet Pg. 295 5 of 7 engaged in reviewing the demolition lists aided by transparency in public notification and resources made available by City staff including real-time posting of demolition applications, monthly postings of demolition lists with e-mail distribution, and a public-facing portal for review of building permits. However, because the interim zoning regulations were amended during the extraordinary circumstances surrounding the COVID-19 public health emergency, staff recommends extending the interim zoning regulations as amended in July 2020 to November 13, 2023 to allow further study and monitoring of the revised process as economic recovery continues prior to making permanent changes to the Zoning Ordinance. The interim demolition review process retains the full 180-day period (inclusive of the 75- day waiting and public notification period) for the Landmarks Commission to review any designation applications that are filed by the community. The shifting of the designation application fee from the applicant to the demolition permit applicant will also remove financial barriers for community-led review and nomination of properties with demolition permit applications. Further, a competitive process administered by the City is underway to distribute historic preservation funds negotiated through development agreements (approximately $390,000) to historic preservation organizations that would assist in preservation activities. These activities could include application costs and other advocacy and educational activities, as stipulated in the terms of development agreements. The interim demolition review process will still provide a public process to safeguard the City’s historic, aesthetic, and cultural heritage as embodied and reflected in improvements that represent the City’s cultural, social, economic, political, and architectural history. Applicability The proposed extension to the Emergency Interim Zoning Ordinance would continue to only apply to demolition permit applications and Landmarks Commission hearings that are scheduled as a result of a property-owner filed demolition permit application pursuant to the Demolition and Relocation Ordinance (SMMC Chapter 9.25). More 7.E Packet Pg. 296 6 of 7 specifically, the Interim Zoning Ordinance only applies to demolition permit applications for buildings over 40 years old and any designation application filed within the 75-day waiting period for a pending demolition permit application that has been determined to be complete. It is important to note that the proposed extension to the Emergency Interim Zoning Ordinance does not change the procedures or timeframes set forth in the Landmarks and Historic Districts Ordinance (SMMC Chapter 9.56). The procedures and timeframes applicable to a Landmark Designation Application or Structure of Merit Designation Application (SMMC Sections 9.56.090 and 9.56.120) will continue to remain in effect for the following applications: 1. Landmark or Structure of Merit Designation Applications that are owner- initiated and not in conjunction with a pending demolition permit application (i.e., self- nomination) 2. Landmark or Structure of Merit Designation Applications filed by a member of the public or non-profit organization that are not in response to a pending demolition permit application. Environmental Analysis The proposed interim ordinance is categorically exempt from the provisions of California Environmental Quality Act, California Public Resources Code Section 21000 et seq. (CEQA) pursuant to 15061(b)(3) of the State Implementation Guidelines (common sense exemption) because it can be seen with certainty that there is no possibility that the proposed IZO may have a significant effect on the environment. The determination is based on the record as whole, which includes, but is not limited to, evidence that the recommended IZO represents a temporary change to procedures for review of demolition permits for buildings over 40 years old in order to identify and protect historic resources that is administrative in nature and does not change any policy decisions made by the City Council in adopting the Zoning Ordinance. No adverse physical impacts on the environment would occur as a result 7.E Packet Pg. 297 7 of 7 of these changes. 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 action. Prepared By: Jing Yeo, Planning Manager Approved Forwarded to Council Attachments: A. City Council Information Item: Update on Current Interim Zoning Ordinance for Review of Demolition Permit Applications (Web Link) B. City Council Staff Report - IZO for Revised Demolition Process July 14, 2021 (Web Link) C. CDD--Demolition IZO Extension - 01.25.2022 D. Written Comments E. PowerPoint Presentation 7.E Packet Pg. 298 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 EXTENDING EMERGENCY INTERIM ZONING REGULATIONS ESTABLISHED BY EMERGENCY INTERIM ZONING ORDINANCE NUMBER 2592 (CCS), EXTENDED BY EMERGENCY INTERIM ZONING ORDINANCE NUMBERS 2599 AND 2626 (CCS), AND AMENDED BY EMERGENCY INTERIM ZONING ORDINANCE NUMBER 2643 (CCS) REVISING THE DEMOLITION PERMIT REVIEW PROCESS RELATING TO THE PRESERVATION OF HISTORIC RESOURCES WHEREAS, historic preservation is a defining community value for the City of Santa Monica (the “City”); and WHEREAS, this value reflects the community’s consensus that the City’s unique identity and character springs from its long and rich history; and WHEREAS, the community’s present and future welfare depend, in part, upon understanding the City’s history and evolution as a unique community; and WHEREAS, retention and preservation of historic resources also promotes the public health, safety and welfare by revitalizing neighborhoods and business districts, enhancing the City’s economy, improving local aesthetics, and enriching the City’s culture; and WHEREAS, the Landmark and Historic District Ordinance of the City of Santa Monica (the “Landmark Ordinance”) was first adopted in 1976 to protect improvements and areas that represent elements of the City’s cultural, social, economic, political and architectural history; safeguard the City’s heritage as it is embodied and reflected in such 7.E.c Packet Pg. 299 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 2 improvements and areas; foster civic and community pride; protect and enhance aesthetics and attractions; and promote the education, pleasure and welfare of City residents and visitors alike; and WHEREAS, the City’s ongoing commitment to historic preservation was reaffirmed in 2002 when the City Council adopted the Historic Preservation Element of the General Plan, and again in 2010 when the City adopted the Land Use and Circulation Element of the General Plan (“LUCE”); and WHEREAS, in 2015, the City adopted a comprehensive Zoning Ordinance Update, which emphasized the City’s historic preservation priorities by including enhanced protections and incentives for designated historic resources and potential historic resources throughout the City; and WHEREAS, reviewing buildings or structures 40 years of age or older to identify, evaluate and preserve historic resources before they are lost to demolition is an essential component of the City’s historic preservation program; and WHEREAS, Santa Monica Municipal Code Chapter 9.25 sets forth a process for review of such buildings or structures by the Landmarks Commission and provides that no demolition of such buildings or structures shall be permitted for a period of 75 days during which time an application for Landmark, Structure of Merit, or Historic District may be filed; and WHEREAS, in 2018, the City initiated a review of the demolition permit review process, in part due to developments in judicial guidance; and 7.E.c Packet Pg. 300 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 3 WHEREAS, the City’s ongoing review of the demolition permit process and evolutions in judicial guidance necessitated that the Landmarks Commission temporarily forego reviewing demolition permits (the “suspension”); and WHEREAS, between 2016 and 2018, the City received an average of 100 demolition permit applications per year, all of which required review to determine potential historic significance to ensure preservation of the City’s cultural heritage and history; and WHEREAS, during the suspension, at least 48 applications for demolition permits were received, processed, and approved without any formal public review to determine potential historic significance and the necessity of preservation; and WHEREAS, this lack of review seriously impacted the City’s multi-decade effort to scrupulously preserve and protect each of its historic resources; and WHEREAS, during the suspension, the public, most prominently neighborhood groups and other nonprofit organizations, were thrusted into taking on an increased role in identifying potential historic resources; and WHEREAS, while this increased role enhanced civic engagement and awareness in the City’s historic preservation program, such a shift in responsibility resulted in a less public and deliberative process for identification, evaluation and preservation of historic resources; and WHEREAS, even a single unintended demolition of a historic resource seriously and irreparably harms the public welfare; and WHEREAS, on November 13, 2018, the City Council adopted Emergency Interim Zoning Ordinance Number 2592 (CCS) (“Interim Zoning Ordinance 2592”) which immediately adopted a revised process to adequately protect the City’s precious historic 7.E.c Packet Pg. 301 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 4 resources, retain a role for the Landmarks Commission, maintain a high level of transparency and public participation, ensure clarity for property owners, balance City resources across the historic preservation program, and comply with all relevant legal requirements; and WHEREAS, the interim zoning regulations established by Interim Zoning Ordinance 2592 (“interim zoning regulations”) required the Landmarks Commission to conduct a Historic Resources Preliminary Review Hearing for each demolition permit application that proposes to demolish a building or structure 40 years of age or older, and at the conclusion of the Historic Resources Preliminary Review Hearing, the Landmarks Commission determined whether there is enough credible evidence in the record to proceed with a further public hearing to determine whether the building or structure meets the criteria for a Landmark or Structure of Merit; and WHEREAS, if the Landmarks Commission determined that there was enough credible evidence in the record to proceed to a further public hearing, the Landmarks Commission was required to determine whether the building or structure met the criteria for Landmark or Structure of Merit (the “designation hearing”); and WHEREAS, the interim zoning regulations permitted any person to file an application to designate a building or structure as a Landmark or Structure of Merit within 75 days of the demolition permit application being determined complete, and if such an application was filed, the Landmarks Commission was required to conduct a designation hearing; and WHEREAS, on January 8, 2019, pursuant to Santa Monica Municipal Code Section 9.46.090(C), the City Council adopted emergency Interim Zoning Ordinance 7.E.c Packet Pg. 302 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 5 Number 2599 (CCS) (“Interim Zoning Ordinance 2599”) extending the interim zoning regulations to November 13, 2019 to allow further study of key issues and to monitor implementation of the revised review process before making permanent changes to the Zoning Ordinance; and WHEREAS, on April 9, 2019, the City Council adopted Ordinance Number 2606 (CCS) (“Ordinance 2606”), which made certain changes, corrections and amendments to the City’s Zoning Ordinance, including the inclusion of a provision in Santa Monica Municipal Code Section 9.25.040(E) to allow the filing of demolition permit applications for 100% Affordable Housing Projects concurrently with filing permit applications, provided that for properties listed on the City’s Historic Resources Inventory, the Landmarks Commission had conducted a Historic Resources Preliminary Review Hearing and determined that there was not enough credible evidence to warrant a designation hearing; and WHEREAS, in 2019, the City commenced a comprehensive update of the Landmark Ordinance; and WHEREAS, on November 12, 2019, pursuant to Santa Monica Municipal Code Section 9.46.090(C), the City Council adopted emergency Interim Zoning Ordinance Number 2626 (CCS) (“Interim Zoning Ordinance 2626”) extending the interim zoning regulations until November 13, 2021 in order to allow the City to continue monitoring implementation of the revised review process and to allow further review of the interim procedures in conjunction with the Landmark Ordinance update process before making permanent changes to the Zoning Ordinance; and 7.E.c Packet Pg. 303 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 6 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 City 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 17, 2020, the Director of Emergency Services issued a Revised Fourth Supplement to the Executive Order which, in part: 1) pursuant to Section 5, suspended planning deadlines and automatic approvals, including deadlines for review of demolition permit applications for buildings or structures 40 years of age and older as set forth in Interim Zoning Ordinance 2626 (“demolition permit review deadlines”); and 2) pursuant to Section 6, extended all Interim Zoning Ordinances in effect during the term of the Order; and WHEREAS, on April 24, 2020, the Director of Emergency Services issued a Twelfth Supplement to the Executive Order, which, in part, pursuant to Sections 1 through 3, tolled deadlines for reviewing and acting on planning applications, exercising rights under planning entitlements, and expiration of building permits, including demolition permit review deadlines; and WHEREAS, on May 29, 2020, the Director of Emergency Services issued an Eighteenth Supplement to the Executive Order which, in part, superseded and replaced Section 5 of the Revised Fourth Supplement and Sections 1 through 3 of the Twelfth 7.E.c Packet Pg. 304 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 7 Supplement to extend for two years the deadlines for planning, review, and permit-related actions, including demolition permit review deadlines; and WHEREAS, as of July 2020, pursuant to the Executive Order, and applicable supplements thereto, all demolition permit review deadlines were extended and no demolition permits were issued for approximately 16 buildings or structures with pending applications as of March 13, 2020; and WHEREAS, the Landmarks Commission conducted a Historic Resources Preliminary Review Hearing for approximately 13 of those applications, and the Landmarks Commission determined that there was not enough credible evidence in the record to proceed to a designation hearing; and WHEREAS, between March 13, 2020 and July 2020, the City received at least 16 applications for demolition that had not been processed or reviewed for potential historic significance; and WHEREAS, the State is experiencing a housing supply crisis, with housing demand far outstripping supply; and WHEREAS, in response to the housing crisis, the City’s housing policy has been focused on increasing and incentivizing the City’s housing supply; and WHEREAS, after March 13, 2020, the City received certain demolition permit applications for housing projects for which all necessary land use entitlements were issued prior to November 18, 2018, when the interim zoning regulations were first enacted; and 7.E.c Packet Pg. 305 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 8 WHEREAS, the economic impacts of the COVID-19 pandemic devastated nearly all of the City’s revenue streams, including sales tax, transient occupancy tax, parking revenue, and business license revenue; and WHEREAS, after reviewing these impacts at its April 14, 2020 meeting, the City Council directed staff to develop a plan to restructure City operations to meet the challenges posed by COVID-19 and to balance the budget; and WHEREAS, on May 5, 2020, the City Council adopted a restructuring plan (the “Restructuring Plan”) to: merge divisions from the Planning and Community Development and Community Services Departments into the Community Development and Community Services Departments; and WHEREAS, on June 9, 2020, as part of the Restructuring Plan, the City Council approved City staff’s recommendation regarding a restructured historic preservation program, including a revised demolition permit review process to eliminate the Historic Resources Preliminary Review Hearing but retain the designation hearing in the event a person files an application to designate the building or structure as a Landmark or Structure of Merit; and WHEREAS, the revised demolition permit review process focuses on increased notification to the community regarding demolition applications and provide an opportunity for the community to file applications for designation of buildings or structures as Landmarks or Structures of Merit; and WHEREAS, on June 23, 2020, the City Council adopted the FY 2020-21 Operating Budget, including the revised demolition permit review process, and a resolution revising 7.E.c Packet Pg. 306 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 9 the City’s master fee schedule to establish the fee to recover the cost of consultant- prepared historic preservation assessments if an application for designation is filed; and WHEREAS, on July 14, 2020, the City Council adopted emergency Interim Zoning Ordinance 2643 (CCS) (“Interim Zoning Ordinance 2643”), amending the interim zoning regulations to: eliminate the Historic Resources Preliminary Review Hearing; retain the 75-day period in which individuals may file applications to designate a building or structure for which demolition is sought as a Landmark or Structure of Merit; retain the Landmark Commission’s authority to conduct a designation hearing whenever a person files an application to designate a building or structure for which demolition is sought as a Landmark or Structure of Merit; eliminate the ability to accept applications for 100% Affordable housing projects prior to or concurrently with a demolition permit application for properties on the Historic Resources Inventory; and provide deadlines for the community to file applications to designate buildings and structures and Landmarks and Structures of Merit for demolition permit applications that had not been processed due to the COVID-19 public health emergency; and WHEREAS, on October 29, 2021, the Director of Emergency Services issued a Forty-First Supplement to the Executive Order to extend certain provisions of the Executive Order, including Section 6 of the Revised Fourth Supplement extending all Interim Zoning Ordinances, through January 31, 2022; and WHEREAS, although it does not appear that the revisions to the demolition review process established by Interim Zoning Ordinance 2643 have resulted in a change in the rate of historic resources preservation, the process was implemented during the 7.E.c Packet Pg. 307 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 10 extraordinary circumstances surrounding the COVID-19 public health emergency, and economic recovery efforts are still underway; and WHEREAS, the City Council desires to extend the interim zoning regulations as amended by Interim Zoning Ordinance 2643 to allow further study and monitoring of the revised process as economic recovery efforts continue prior to making permanent changes to the Zoning Ordinance; and WHEREAS, there continues to exist a current and immediate threat to the public health, safety and welfare that requires maintaining the interim zoning regulations established by Interim Zoning Ordinance 2592, extended by Interim Zoning Ordinances 2599 and 2626, and as amended by Interim Zoning Ordinance 2643, because the revised demolition permit review process related to the preservation of historic resources ensures the City’s ability to properly identify, evaluate and preserve historic resources before they are lost to demolition; and WHEREAS, adoption of this Emergency Interim Zoning Ordinance is necessary to preserve public peace, health, safety and welfare as it will ensure that buildings or structures over 40 years of age are properly reviewed in accordance with the City’s established goals of safeguarding the City’s historic, aesthetic and cultural heritage. 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 Progress. The following projects that would otherwise be subject to the revised process set forth in this Interim Zoning Ordinance shall have a vested right to proceed without complying with this Interim Zoning Ordinance: 7.E.c Packet Pg. 308 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 11 (a) Development Agreement. Development in accordance with the terms and conditions of a development agreement that (i) includes specific provisions related to demolition of buildings or structures that would otherwise be subject to review under this Chapter 9.25 and (ii) has been approved by the City Council pursuant to Chapter 9.60 of the Municipal Code, or predecessor legislation, on or prior to November 13, 2018. (b) Demolition Permit Application. Any demolition permit application determined complete on or before November 13, 2018. SECTION 2. Interim Zoning Regulations. Santa Monica Municipal Code section 9.25.040 shall be revised, and sections 9.25.042, 9.25.044, and 9.25.046 shall be added, as follows: 9.25.040 Requirements The City shall not approve the demolition of any building or structure unless the applicant has complied with all of the following conditions: A. A removal permit has been granted by the Rent Control Board, when required. B. For multi-unit dwelling structures or structures within a Neighborhood Conservation Overlay District, the final permit to commence construction for a replacement project has been issued, or the building or structure is exempt from this requirement pursuant to Section 9.25.020 and a property maintenance plan has been approved in writing by the Director. C. Prior to filing an application for a demolition permit, a notice of intent to demolish in a form provided by the Director has been prominently posted on the property. 7.E.c Packet Pg. 309 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 12 D. A Certificate of Appropriateness or Economic Hardship has been approved by the Landmarks Commission or City Council on appeal, for demolition of any City- Designated Historic Resource. E. In addition to any other requirements imposed by this Section, applications for the demolition of a building or structure, the original permit for which was issued more than 40 years before the date of filing of the demolition permit application, shall be subject to the following requirements: 1. No permit shall issue for any application subject to this paragraph (E) unless: a. Notice has been provided in accordance with Section 9.25.042; and b. Either: i. No person files an application pursuant to 9.25.044 to designate the building or structure as a City-Designated Historic Resource within the deadlines set forth in paragraph 2; or ii. The City makes a final determination that the building or structure does not merit designation as a City-Designated Historic Resource pursuant to Section 9.25.046 or Section 9.56.130. 2. No person shall file an application pursuant to 9.25.044 to designate the building or structure as a City-Designated Historic Resource later than the deadlines set forth in this paragraph, unless the demolition permit expires. 7.E.c Packet Pg. 310 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 13 a. Demolition permit applications determined complete on or after July 15, 2020. No person shall file an application pursuant to 9.25.044 more than 75 days after the demolition permit application is determined complete. b. Demolition permit applications determined complete on or before March 13, 2020 and pending as of July 14, 2020. i. Except as provided in paragraph (ii), no person shall file an application pursuant to 9.25.044 after September 28, 2020. ii. Notwithstanding paragraph (i), no person shall file an application pursuant to 9.25.044 after August 1, 2020 if the Landmarks Commission conducted a Historic Resources Preliminary Review Hearing in accordance with the interim zoning regulations in effect at the time the application was determined complete, and the Landmarks Commission did not determine that there was enough credible evidence to conduct a hearing for potential designation of the building or structure as a Landmark or Structure of Merit. c. Demolition permit applications determined complete after March 13, 2020 and before July 15, 2020. i. Except as provided in paragraph (ii), no person shall file an application pursuant to 9.25.044 after September 28, 2020. ii. Notwithstanding paragraph (i), no person shall file an application pursuant to 9.25.044 after August 1, 2020, if the City issued all necessary land use entitlements for a proposed multiple unit dwelling to be 7.E.c Packet Pg. 311 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 14 located on the property where the building or structure is located prior to November 13, 2018, and the building or structure to be demolished is not listed on the City’s Historic Resources Inventory. F. No planning application subject to review by the Planning Commission, Architectural Review Board, or Zoning Administrator, shall be accepted for filing unless the applicant has satisfied the requirements of subsection E, as applicable. Notwithstanding the foregoing, the City shall accept applications for 100% Affordable Housing Projects that involve the demolition of existing buildings that do not appear on the City’s Historic Resources Inventory so long as a demolition permit application(s) for such building(s) is filed prior to or concurrently with the permit application for the 100% Affordable Housing Project. 9.25.042 Noticing Requirements for Demolition of Buildings or Structures 40 Years of Age or Older A copy of the filing materials for each demolition permit application that proposes to demolish a building or structure for which the original permit was issued more than 40 years before the date of filing of the demolition permit application, consisting of a completed application form, site plan, photograph(s) of the building or structure, photo verification that the property has been posted with a notice of intent to demolish, and such additional information the Director deems appropriate, shall be made available on the City’s website and sent by email to any person who has requested notification from the Director. All material submitted becomes the property of the City, may be distributed to the public, and shall be made available for public inspection. At any time upon reasonable request, and during normal business hours, any person may examine an application and 7.E.c Packet Pg. 312 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 15 materials submitted in support of or in opposition to an application in the Planning Division offices. Unless prohibited by law, copies of such materials shall be made available at a reasonable cost. 9.25.044 Historic Resources Designation Application Subject to the deadlines set forth in Section 9.25.040(E)(2), any person may file an application on a form furnished by the Director to: A. Designate the building or structure as a Landmark or Structure of Merit in accordance with the procedures set forth in Section 9.25.046; or B. Form or amend a Historic District to include the building or structure proposed for demolition in accordance with the procedures set forth in Section 9.56.130 of this Code. 9.25.046 Historic Resources Designation Hearing If an application for designation as a Landmark or Structure of Merit is filed within the deadlines set forth in Section 9.25.040(E)(2), the City shall conduct a review of the application as follows: A. Upon filing of an application for designation as a Landmark or Structure of Merit under 9.25.044, any alteration, restoration, construction, removal, relocation or demolition, in whole or in part, of or to the building or structure is prohibited. No permit shall be issued by any City Department, board or commission, including, but not limited to, a conditional use permit, a tentative tract map or tentative parcel map permit, a development review permit, any Zoning Conformance permit, Architectural Review Board approval, certificate of appropriateness permit, rent control permit, or building permit, which would authorize any such alteration, restoration, construction, removal, relocation 7.E.c Packet Pg. 313 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 16 or demolition until a final determination is rendered by the Commission, or the City Council on appeal in accordance with this Section. B. The hearing shall be scheduled within 100 days of the filing of a complete application for Landmark or Structure of Merit under 9.25.044(A). The owner of the building or structure may agree to extend the time period allowed for the Landmarks Commission to conduct the public hearing. C. The Director shall conduct an evaluation of the building, structure or property and shall make a recommendation to the Landmarks Commission, to be reviewed at a Commission public hearing, as to whether the building or structure merits designation as a Landmark or Structure of Merit. D. Notice of the date, time, place and purpose of the Commission public hearing shall be given not more than twenty days and not less than ten days prior to the date of the hearing, as follows: 1. By at least one publication in a daily newspaper of general circulation; and 2. By mail to the demolition permit applicant, the owner of the building or structure, if not the same as the demolition permit applicant, all owners and residential and commercial tenants of all real property within three hundred feet of the exterior boundaries of the lot or lots on which the building or structure is situated, and to residential and commercial tenants of the building or structure, using for this purpose the names and addresses of such owners as are shown on the records of the Los Angeles County Assessor. The address of the residential and commercial tenants shall be determined by visual site inspection or other 7.E.c Packet Pg. 314 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 17 reasonably accurate means. The failure to send notice by mail to any such real property owner where the address of such owner is not a matter of public record shall not invalidate any proceedings in connection with the Landmarks Commission’s review of the demolition permit application. E. At the conclusion of the public hearing, or any continuation thereof, the Commission shall determine whether the building or structure meets the criteria for designation as a Landmark, as set forth in Section 9.56.100 of this Code, or Structure of Merit, as set forth in Section 9.56.080 of this Code, as follows: 1. Any decision regarding the potential designation must be rendered within 35 days of the date set for the initial public hearing. 2. If the Landmarks Commission determines that the building or structure merits designation as a Landmark, then the building or structure shall be so designated as a Landmark, and it shall be automatically determined that the building or structure does not merit designation as a Structure of Merit. The Landmarks Commission shall have the power to define and describe an appropriate Landmark Parcel in order to protect and preserve the resource, and to designate public spaces in accordance with Section 9.56.110 of this Code. 3. If the Landmarks Commission determines that the building or structure merits designation as a Structure of Merit, then the building or structure shall be so designated as a Structure of Merit, and it shall be automatically determined that the building or structure does not merit designation as a Landmark. 7.E.c Packet Pg. 315 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 18 4. If the Landmarks Commission fails to take action regarding the potential designation of a Landmark or Structure of Merit within the thirty-five day period, it shall be automatically determined that the building or structure does not merit designation as a Landmark or Structure of Merit. 5. The owner of the building or structure may agree to extend the time period for the Landmarks Commission to conclude the public hearing. 6. An appeal to the City Council of an action taken or failure to act by the Landmarks Commission pursuant to this Section shall be processed in accordance with Section 9.56.180 of this Code. F. The Landmarks Commission shall have the power, after a public hearing, whether at the time it renders a decision to designate a building or structure as a Landmark or Structure of Merit, or at any time thereafter, to specify the nature of any alteration, restoration, construction, removal, relocation or demolition of or to a Landmark, Landmark Parcel or Structure of Merit which may be performed without the prior issuance of a Certificate of Appropriateness pursuant to Chapter 9.56. The Landmarks Commission shall also have the power, after a public hearing, to amend, modify or rescind any designation decision and any specifications made pursuant to this paragraph. G. Subject to the appeal rights set forth in this Section, a decision of the Landmarks Commission to designate a building or structure as a Landmark or Structure of Merit shall be in full force and effect from and after the date of the rendering of such decision by the Landmarks Commission. H. Within thirty-five days after a decision has been rendered, the Landmarks Commission shall approve a statement of official action which shall include: 7.E.c Packet Pg. 316 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 19 1. A statement of the applicable criteria and standards against which the building or structure was reviewed for designation; 2. A statement of the facts that establish compliance or non-compliance with each applicable criteria and standards; 3. The reasons for a determination to approve or deny the application; and 4. The decision to deny or approve with or without conditions and subject to compliance with applicable standards. The official owner of the designated Landmark or Structure of Merit shall be provided with a copy of the statement of official action using for this purpose the name and address of such owner as is shown in the records of the Los Angeles County Assessor. I. Whenever the Landmarks Commission or the City Council on appeal determines, through action or inaction, that a building or structure reviewed pursuant to this Section does not merit designation as a Landmark or Structure of Merit, no application seeking designation as a City-Designated Historic Resource containing substantially the same information shall be filed, nor shall the building or structure be subject to the noticing set forth in Section 9.25.042, or review set forth in Section 9.25.046, within five years of the date of the final City decision. However, if significant new information is available, the Landmarks Commission, may waive the time limit by resolution. In addition, an application of the owner of the building or structure seeking designation as a City-Designated Historic Resource may be submitted and considered notwithstanding this five-year limitation period. 7.E.c Packet Pg. 317 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 20 SECTION 3. In accordance with CEQA Guidelines Section 15061(b)(3), this Interim Zoning Ordinance is exempt from CEQA as it can be seen with certainty that the proposed ordinance does not have the potential to significantly impact the environment. The determination is based on the record as whole, which includes, but is not limited to, evidence that this Interim Zoning Ordinance represents a temporary change to procedures for review of demolition permits for buildings over 40 years old in order to identify and protect historic resources that is administrative in nature and does not change any policy decisions made by the City Council in adopting the Zoning Ordinance, and no adverse physical impacts on the environment would occur as a result of these changes. Thus, this Interim Zoning Ordinance has no potential to cause a significant effect on the environment. SECTION 4. Any provision of the Santa Monica Municipal Code or any appendix 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 5. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. 7.E.c Packet Pg. 318 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 21 SECTION 6. This Ordinance is declared to be an urgency measure necessary for preserving the public peace, health, safety or welfare, adopted pursuant to the provisions of Section 615 of the Santa Monica City Charter. As set forth in the findings above and in the November 13, 2018, January 9, 2019, November 12, 2019, July 14, 2020 and January 25, 2022 staff reports, this Ordinance is necessary for preserving the public peace, health, safety, and welfare. As an urgency measure, this Ordinance will be effective immediately upon adoption. SECTION 7. 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 immediately upon adoption. SECTION 8. This Ordinance shall be of no further force or effect as of November 13, 2023. APPROVED AS TO FORM: _________________________ JOSEPH LAWRENCE Interim City Attorney 7.E.c Packet Pg. 319 Attachment: CDD--Demolition IZO Extension - 01.25.2022 [Revision 3] (4793 : Urgency Extension of Demolition IZO (20 mins)) 1 Vernice Hankins From:ROGER GENSER <genserprints@verizon.net> Sent:Tuesday, January 25, 2022 11:49 AM To:councilmtgitems Subject:Item 7-E EXTERNAL    Dear Mayor Himmelrich and Members of the Council:    Regarding item 7‐E concerning the extension of Emergency Interim Zoning Ordinance as it relates to the Landmarks  Commission demolition review process:    It is recognized that that the City and planning staff have experienced unprecedented fiscal challenges due to the Covid‐ 19 crises.    The staff report and resolution reaffirms the importance of historic preservation as a continuing “Community Value”    One of the fundamental roles of the Landmarks Commission as outlined in the Landmarks Ordinance is the review of  demolition permits of buildings over 40 years of age.    The suspension of that role, as adopted in the various Interim Emergency Zoning Ordinances was intended to be both  Interim and TEMPORARY.    This is reiterated in the staff report on 6 and serves as justification that the changes in the IZO do not impact CEQA.    The Commission’s role is fundamental in this process. It is recognized for its expertise in the field with four specific seats  of expertise required in the Ordinance.    Although the number of demolition applications has not increased during the pandemic, the heavy burden of monitoring  the ongoing and certain future increases of demolition applications is left to the public.    At the end of this series of Interim Ordinances that proposes to conclude on November 13, 2023, please return that  fundamental role to the Commission. That role dates back to the unanimous adoption of original 1975 Landmarks  Ordinance.    Thank you for your and consideration.    Roger Genser  Chair, Santa Monica Landmarks Commission For identification purposes                  Sent from my iPhone  7.E.d Packet Pg. 320 Attachment: Written Comments (4793 : Urgency Extension of Demolition IZO (20 mins)) Item 7 -E Demolition Permit Review Process IZO Extension City Council January 25, 2022 7.E.e Packet Pg. 321 Attachment: PowerPoint Presentation (4793 : Urgency Extension of Demolition IZO (20 Demolition Review IZO | City Council | 01.25.2022 Adopt Extension to the emergency Interim Zoning Ordinance for the Demolition Permit Review Process Recommended Action 7.E.e Packet Pg. 322 Attachment: PowerPoint Presentation (4793 : Urgency Extension of Demolition IZO (20 Demolition Review IZO | City Council | 01.25.2022 Council Past Actions on Demolition Review IZO •November 2018 –Interim demolition review process adopted in line with judicial guidance •November 2019 –IZO extended to November 2021 •June 9, 2020 –Council gave direction on proposed budget including returning with proposal for restructured historic preservation program •June 23, 2020 -Council adopted a restructured historic preservation program in line with staff and budget cuts •July 14, 2020 •Revised demolition permit review process eliminated Landmarks Commission review of demolition permit applications •Revised process maintains 75-Day waiting period and public notice •Application costs shifted to property owner Background 7.E.e Packet Pg. 323 Attachment: PowerPoint Presentation (4793 : Urgency Extension of Demolition IZO (20 Demolition Review IZO | City Council | 01.25.2022 •Clarification of Landmarks Commission authority to exercise its regulatory role in reviewing historic resources impacts created by proposed demolitions •Transparency in the public process •Clarity for property owners •Balancing staff resources across the entire preservation program Principles for Revised Demolition Review Process 7.E.e Packet Pg. 324 Attachment: PowerPoint Presentation (4793 : Urgency Extension of Demolition IZO (20 Demolition Review IZO | City Council | 01.25.2022 Revised vs Prior Demolition Review Process Procedural Steps Prior Process Total days to hearing Maximum 180-days to hearing Who reviews?Landmarks Commission Who pays for application fee?Designation applicant Who pays for consultant report?City (approx. $80,000/year) #of Landmarks Comm. hearings preliminary + formal hearing (2) Revised Process Maximum 180-days to hearing Community Demolition permit applicant Demolition permit applicant formal hearing (1) 7.E.e Packet Pg. 325 Attachment: PowerPoint Presentation (4793 : Urgency Extension of Demolition IZO (20 Demolition Review IZO | City Council | 01.25.2022 •Data since demolition IZO changes (July 2020 –present) •Number of demolition applications filed –66 •Number of designation applications filed as a result of demolition review –4 •Data during demolition review IZO (December 2018-July 2020) •Number of demolition applications filed –114 •Number of resources designated as a result of demolition review -3 •Data during community-based applications period when Landmarks Commission was not reviewing demolition permits (July-December 2018) •Number of demolition applications filed –56 •Number of resources designated as a result of demolition review –5 Comparing Results of IZO vs Prior Process NOTE: Rate of designation applications as a result of demolition applications relatively consistent across different processes 7.E.e Packet Pg. 326 Attachment: PowerPoint Presentation (4793 : Urgency Extension of Demolition IZO (20 Demolition Review IZO | City Council | 01.25.2022 Public Notification •Enhancements to Public Notification for Demo Permits •Direct Link to Open Data Portal listing Demolition Permit Applications •Monthly posting of demolition permit list in Landmarks Commission website •Links to full demo application •HRI properties –DPR sheets Included •Permit records publicly searchable •Sign-up box to receive e-mail notification of Landmarks Commission agendas and demolition list •E-mail notification when demo list is posted Example of Information Provided on Landmarks Website 7.E.e Packet Pg. 327 Attachment: PowerPoint Presentation (4793 : Urgency Extension of Demolition IZO (20 Demolition Review IZO | City Council | 01.25.2022 Adopt Extension to the emergency Interim Zoning Ordinance for the Demolition Permit Review Process Recommended Action 7.E.e Packet Pg. 328 Attachment: PowerPoint Presentation (4793 : Urgency Extension of Demolition IZO (20 Demolition Review IZO | City Council | 01.25.2022 •Maximum 180-day process to hearing •Community reviews demolition applications •Demolition permit applicant pays for designation application fee •Demolition permit applicant pays for consultant report •Landmarks Commission holds designation hearing Revised vs Prior Demolition Review Process •Maximum 180-day process to hearing •Landmarks Commission reviews demolition applications in preliminary hearing •City paid for assessment reports (approximately $80,000/year) •Landmarks Commission holds designation hearing Revised Process Prior Process 7.E.e Packet Pg. 329 Attachment: PowerPoint Presentation (4793 : Urgency Extension of Demolition IZO (20