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SR 03-22-2022 7B City Council Report City Council Meeting: March 22, 2022 Agenda Item: 7.B 1 of 4 To: Mayor and City Council From: David Martin, Director, Administration Subject: Introduction and Adoption of Emergency Interim Zoning Ordinance Extending Planning Permit Timeframes Recommended Action Staff recommends that the City Council introduce and adopt an Emergency Interim Zoning Ordinance to Extend Interim Zoning Regulations Amending Santa Monica Municipal Code Section 9.37.070 to Extend Permit Timeframes Due to Unavoidable Delays Caused by the COVID-19 Pandemic and to Further Economic Recovery Efforts. Summary On January 25, 2022, City Council adopted Emergency Interim Zoning Ordinance 2688 (CCS) (“IZO 2688”) extending deadlines to exercise and continuously pursue the rights granted under active planning entitlements, permits, and approvals issued and still active as of March 13, 2020 or issued between March 13, 2020 and December 31, 2022 and to allow such applications to request a first time extension at any time at least 30 days prior to expiration of the permit. The IZO codified extensions that were previously established by emergency order due to unavoidable delays caused by the COVID-19 pandemic, and extended the eligibility for such timeframe extensions in support of the City’s economic recovery efforts. In accordance with Santa Monica Municipal Code Section 9.46.090(C), IZO 2688 will expire on March 26, 2022 unless otherwise extended by Council. If extended as recommended by staff, the interim zoning regulations adopted by IZO 2688 will terminate on December 31, 2022. 7.B Packet Pg. 367 2 of 4 Discussion On March 13, 2020, the City declared the existence of a local emergency in response to COVID-19. On April 14, 2020, Council directed that a restructuring of City services be focused around health and safety, emergency response, and economic recovery. As introduced at the April 28, 2020 City Council meeting, the City implemented a multi- pronged economic recovery plan that focused on five policy areas: • Business Retention/Reopening • Business Process/Permitting Improvements • Outreach/Marketing • Community Economic Development/Local Hire • Federal and State Resources/Funding Partnerships In response to this direction and the economic effects of COVID-19, the Director of Emergency Services, adopted a series of supplements to the City’s local emergency order, which the City Council ratified. Several Supplements to the Emergency Order addressed the suspension and extension of deadlines for planning and permit-related actions, including extending deadlines to exercise rights granted under planning entitlements and issued building permits and plan reviews active as of March 13, 2020 or issued during the term of the Emergency Order. Due to the state of emergency, processing timelines were also suspended, including those associated with the historic preservation program. On January 25, 2022, City Council adopted Emergency IZO 2688 to codify permit timeframe extensions for permits issued under the City’s Zoning Ordinance that were previously established by emergency order due to unavoidable delays caused by the COVID-19 pandemic. Emergency IZO 2688 also extends eligibility for such timeframe extensions through December 31, 2022 and allows for flexibility in requesting certain additional extensions to permit timeframes to further the City’s economic recovery efforts as explained in more detail below (Attachment A). 7.B Packet Pg. 368 3 of 4 Extension of Deadlines for Planning Review and Permit-Related Actions Pursuant to SMMC Section 9.37.090 planning entitlements have two years to exercise rights, typically obtained by issuance of a building permit or commencement of a use, as applicable. Special timelines apply for housing projects that have received City, State, or Federal funding and include at least 50% of units affordable to low-income households (three years), and all projects in the Coastal Zone receive an additional six months. A further two years is proposed to be added to all planning entitlements, issued building permits, and plan reviews active as of March 13, 2020, which was when the COVID-19 emergency was declared, until December 31, 2022. The additional two years to exercise rights codifies extensions granted by emergency order due to unavoidable delays caused by the COVID-19 pandemic and further allows applicants additional time to proceed with their projects due to the economic impacts of COVID-19, which has affected business operations and the construction industry. The time extension does not apply to review and permit-related actions relating to compliance with timelines set forth in SMMC Chapters 8.58, 8.60, 8.64, 8.76 and 8.80 (i.e., seismic retrofit deadlines, excluding soft-story retrofits), unless an application was pending as of March 13, 2020. In addition, a procedural issue has arisen from applicants wishing to request extensions for permits that will be expiring. SMMC Section 9.37.090(C) does not allow applicants to submit a request for time extension any earlier than 6 months before the expiration of their permit. That timing restriction is in place because it is expected that applicants are diligently pursuing exercising rights for their permits and must be able to demonstrate cause for extension of the permit. The impacts of COVID-19 have increased the uncertainty for applicants who may need to request additional extensions beyond the two additional years already granted. Therefore, it is proposed that applicants continue to be allowed to request a time extension at any time prior to 30 days before the expiration of their permit. 7.B Packet Pg. 369 4 of 4 Environmental Analysis The proposed Emergency IZO to extend expiration dates for permits are exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State Implementation Guidelines (common sense exception). 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. The proposal would not result in adverse physical environmental effects as these are procedural changes. Therefore, no further environmental review under CEQA is required. Projects issued permits would be undergoing their own separate CEQA review prior to permit issuance. 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. January 25, 2022 City Council Meeting (Web Link) B. CDD--IZO to Extend Permit Timeframe Exetension 03.22.2022 C. PowerPoint Presentation 7.B Packet Pg. 370 1 City Council Meeting: March 22, 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 INTERIM ZONING REGULATIONS ESTABLISHED BY EMERGENCY INTERIM ZONING ORDINANCE NUMBER 2688 (CCS) AMENDING SANTA MONICA MUNICIPAL CODE SECTION 9.37.070 TO EXTEND PERMIT TIMEFRAMES DUE TO UNAVOIDABLE DELAYS CAUSED BY THE COVID-19 PANDEMIC AND TO FURTHER ECONOMIC RECOVERY EFFORTS WHEREAS, the City’s new Zoning Ordinance, Chapters 9.01 through 9.52 of Article 9 of the Santa Monica Municipal Code (“Zoning Ordinance”), became effective on July 24, 2015; and WHEREAS, Santa Monica Municipal Code Section 9.37.090 sets forth time frames for expiration of permits issued under the Zoning Ordinance and processes for requesting an extension of those time frames, including a prohibition against seeking a first-time extension of a permit any earlier than six months before its expiration; 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 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 7.B.b Packet Pg. 371 Attachment: CDD--IZO to Extend Permit Timeframe Exetension 03.22.2022 [Revision 1] (4996 : Extension of Emergency Interim Zoning 2 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, pursuant to Section 5, and due to measures taken to implement social distancing requirements, suspended planning deadlines and automatic approvals; 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, and due to the continuation of measures to implement social distancing requirements, including the closure of City Hall and other City facilities, that resulted in unavoidable delays in the City’s processing of planning and permit related applications and in actions required to be taken under planning entitlements and permits, tolled deadlines for reviewing and acting on planning applications, exercising rights under planning entitlements, and expiration of building permits; and WHEREAS, on May 29, 2020, the Director of Emergency Services issued an Eighteenth Supplement to the Executive Order which, in part, pursuant to Sections 1 through 6, due to continuing social distancing requirements, including limitations on occupancy at offices and businesses and limitations on construction activities, that continued to result in unavoidable delays in the City’s processing of planning and permit related applications and in actions required to be taken under planning entitlements and permits, superseded and replaced Section 5 of the Revised Fourth Supplement and Sections 1 through 3 of the 7.B.b Packet Pg. 372 Attachment: CDD--IZO to Extend Permit Timeframe Exetension 03.22.2022 [Revision 1] (4996 : Extension of Emergency Interim Zoning 3 Twelfth Supplement to extend for two years the deadlines for planning, review, and permit-related actions; and WHEREAS, on November 23, 2020, the Director of Emergency Services issued a Twenty-Eighth Supplement to the Executive Order, which, in part pursuant to Sections 18 to 24, clarified that the two-year extension of deadlines for planning, review, and permit actions implemented by the Third Revised Eighteenth Supplement does not extend the deadlines for appeals as set forth in Articles VIII and IX of the Santa Monica Municipal Code; and WHEREAS, since April 2020, 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, economic uncertainty arising out of the COVID-19 pandemic continues; and 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, on January 25, 2022, the City Council adopted Emergency Interim Zoning Ordinance Number 2688 (CCS) amending SMMC Section 9.37.090 to codify two-year extensions for permits issued under the Zoning Ordinance as enacted through the Executive Order, to expand eligibility to permits issued through December 31, 2022 or issued pursuant to a complete application 7.B.b Packet Pg. 373 Attachment: CDD--IZO to Extend Permit Timeframe Exetension 03.22.2022 [Revision 1] (4996 : Extension of Emergency Interim Zoning 4 submitted through December 31, 2022, and to increase flexibility for an application of a first-time extension for those permits; 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. Interim Zoning Regulations. Santa Monica Municipal Code Section 9.37.070 shall be revised as follows: 9.37.090 Expiration and Extension A. Expiration. The decision-maker, in the granting of any permit, may specify a time, consistent with the purposes of the use and necessary to safeguard the public safety, health and welfare, within which the proposed use must be undertaken and actively and continuously pursued. If no time period is specified, any permit granted under this Ordinance shall automatically expire if it is not exercised or extended within the time limits listed below: 1. Permits for 100% Affordable Housing and Certain Affordable Mixed-Use Residential Projects. For 100% affordable housing projects, or mixed-use residential projects where housing units comprise at least 75 percent of the floor area of the project, and the housing 7.B.b Packet Pg. 374 Attachment: CDD--IZO to Extend Permit Timeframe Exetension 03.22.2022 [Revision 1] (4996 : Extension of Emergency Interim Zoning 5 project has received City, State or Federal funding or is comprised of units at least 50 percent of which are deed-restricted to be affordable to low income households and the remainder of which are deed-restricted to be affordable to low or moderate income households: a. Except as provided in subparagraph b, below, within Within 3 years of the effective date, or if located in the Coastal Zone, 3½ years from the effective date for affordable housing or mixed use projects where housing units comprise at least 75 percent of the floor area of the project, and the housing project has received City, State or Federal funding or is comprised of units at least 50 percent of which are deed-restricted to be affordable to low income households and the remainder of which are deed-restricted to be affordable to low or moderate income households. b. Notwithstanding paragraph (a), within 5 years of the effective date, or if located in the Coastal Zone, 5½ years from the effective date, for projects with a permit: (i) Issued and active as of March 13, 2020; (ii) Issued between March 13, 2020 and December 31, 2022; or (iii) Issued pursuant to a complete application submitted between March 13, 2020 and December 31, 2022. 2. All Other Permits. For projects that do not qualify as affordable housing or mixed-use in paragraph (1) above: 7.B.b Packet Pg. 375 Attachment: CDD--IZO to Extend Permit Timeframe Exetension 03.22.2022 [Revision 1] (4996 : Extension of Emergency Interim Zoning 6 a. Except as provided in subparagraph (b), below, within two Two years of the effective date, or if located in the Coastal Zone, 2½ years of the effective date, for projects that do not qualify as affordable housing or mixed-use in paragraph (1) above, or if located in the Coastal Zone, 2 ½ years of the effective date. b. Notwithstanding paragraph (a), within 4 years of the effective date, or if located in the Coastal Zone, 4½ years from the effective date for projects with a permit: (i) Issued and active as of March 13, 2020; (ii) Issued between March 13, 2020 and December 31, 2022; or (iii) Issued pursuant to a complete application that was submitted between March 13, 2020 and December 31, 2022. B. Exercise of Rights. A permit for the use of a building or a property is exercised when, if required, a valid City business license has been issued, and the permitted use has commenced on the site unless the permit is granted in conjunction with approval of new construction. 1. New Construction. If a permit is granted in conjunction with approval of new construction, issuance of a building permit shall constitute exercise of rights; provided, however, that, unless otherwise specified as a condition of project approval, the permit shall expire if: a. The building permit expires; 7.B.b Packet Pg. 376 Attachment: CDD--IZO to Extend Permit Timeframe Exetension 03.22.2022 [Revision 1] (4996 : Extension of Emergency Interim Zoning 7 b. Final inspection is not completed or Certificate of Occupancy issued within the time specified as a condition of project approval; or c. The rights granted under the permit for the use of the building are not exercised within one year following the earliest to occur of the following: issuance of a Certificate of Occupancy; or if no Certificate of Occupancy is required, the last required final inspection for the new construction. C. Extensions. 1. First Time Extension. The Director shall approve an extension of any permit or approval granted under this Ordinance upon receipt of a written application with the required fee prior to expiration of the permit for the time periods listed below. a. Projects with Residential Uses: one-year extension. b. Nonresidential Projects: 6-month extension. No extension may be requested earlier than 6 months prior to the expiration of the permit. The Director may grant a second time extension for projects involving a City-Designated Historic Resource if such extension is necessary due to the complexity of planning for and developing the project. Notwithstanding the foregoing, an extension may be requested at any time at least 30 days prior to the extension of a permit (i) issued and still active as of March 13, 2020; (ii) issued between March 13, 2020 and December 7.B.b Packet Pg. 377 Attachment: CDD--IZO to Extend Permit Timeframe Exetension 03.22.2022 [Revision 1] (4996 : Extension of Emergency Interim Zoning 8 31, 2022; or (iii) issued pursuant to a complete application submitted between March 13, 2020 and December 31, 2022. 2. Other Extensions. The Planning Commission may approve a further extension of any permit or approval granted under this Ordinance upon receipt of a written application with the required fee at least one month prior to and no more than 6 months prior to expiration of the permit. Such extension request shall be processed in the same manner and for the same fee as a new permit. The Planning Commission may grant an extension request for good cause, and may consider in this review, subject to any vested rights, the extent to which the project is consistent with current development standards and policies, whether the project is consistent in principal with the goals, objectives, policies, land uses, and programs specified in the adopted General Plan, conditions surrounding the project site and whether the project will adversely affect the public health, safety and general welfare. SECTION 2. 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 3. 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 7.B.b Packet Pg. 378 Attachment: CDD--IZO to Extend Permit Timeframe Exetension 03.22.2022 [Revision 1] (4996 : Extension of Emergency Interim Zoning 9 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 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Emergency Interim Zoning Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Emergency Interim Zoning Ordinance shall become effective immediately upon adoption. SECTION 5. This Ordinance shall be of no further force or effect as of December 31, 2022, unless it is otherwise extended pursuant to Santa Monica Municipal Code Section 9.46.090(C). APPROVED AS TO FORM: _________________________ JOSEPH LAWRENCE Interim City Attorney 7.B.b Packet Pg. 379 Attachment: CDD--IZO to Extend Permit Timeframe Exetension 03.22.2022 [Revision 1] (4996 : Extension of Emergency Interim Zoning Emergency Interim Zoning Ordinance (IZO) Extend Permitting Timelines City Council Meeting March 22, 2022 7.B.c Packet Pg. 380 Attachment: PowerPoint Presentation (4996 : Extension of Emergency Interim Zoning Extend Interim Zoning Ordinance (IZO) •Additional 2 Years for Permit Expiration for Projects Active as of March 13, 2020 Through December 31, 2022 •Allow First Time Extension Request for Expiring Permits to be filed at any time at least 30 Days prior to Permit Expiration Date •Why? •Support permitting through economic uncertainty 7.B.c Packet Pg. 381 Attachment: PowerPoint Presentation (4996 : Extension of Emergency Interim Zoning Background •January 25, 2022 -Council adopted IZO extending permit expirations by 2 years •IZO expires within 60 days unless extended (March 26, 2022) •Extend until December 31, 2022 •Matches the emergency ordinance previously adopted to extend building permits by two years 7.B.c Packet Pg. 382 Attachment: PowerPoint Presentation (4996 : Extension of Emergency Interim Zoning Recommendation 1.Adopt Emergency IZO: Planning Permit Extension 7.B.c Packet Pg. 383 Attachment: PowerPoint Presentation (4996 : Extension of Emergency Interim Zoning