SR 02-28-2023 10B
City Council
Report
City Council Meeting: February 28, 2023
Agenda Item: 10.B
1 of 6
To: Mayor and City Council
From: David Martin, Director, City Planning
Subject: Introduction and First Reading of an Interim Zoning Ordinance Eliminating
Prohibition of Certain Restaurants in Establishments with Frontage on the
Third Street Promenade
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section
15061(b)(3) (Common Sense Exemption) of the California Environmental Quality
Act (CEQA) Guidelines; and
2. Introduce for first reading an Interim Zoning Ordinance eliminating the prohibition
of certain restaurants with frontage on the Third Street Promenade.
Summary
The Third Street Promenade’s success has resulted from the creation of an authentic
urban retail, dining, and cinema experience. As the economic recovery from COVID-19
continues and the retail landscape evolves, the Promenade’s competitive advantage will
depend on the ability to deliver on a range of unique dining, retail, and entertainment
uses with an emphasis on promoting a diverse base of eating establishments. It is not
the intent to create a Promenade experience that could be found in any number of other
Southern California cities. However, in light of current economic conditions and the
high vacancy rate along the Promenade, staff recommends eliminating the prohibition of
certain restaurants with frontage on the Third Street Promenade and restore the ability
to allow a full range of Limited-Service and Take-Out Restaurants. This would
increase flexibility of use and opportunities for economic recovery by enabling additional
dining options on the Promenade for the duration of the interim ordinance.
10.B
Packet Pg. 1586
2 of 6
Background
In 2017, the City Council adopted the Downtown Community Plan (DCP) which set forth
a vision for the continued vitality of the Third Street Promenade as a major public space
framed by retail and restaurant uses that form unique experiences enjoyable to both
residents and visitors. The DCP values the retention of the Downtown’s authenticity,
encourages local uses, and promotes unique visitor experiences not found in every
neighborhood.
The IZO adopted in November 2019 created a new land use classification for
“Restaurant, Fast Food” applicable only to the BC (Promenade) zone as establishments
having the following:
(a) More than 100 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.
Typically, such establishments utilize standardized signage or décor, and permit
consumption of food and beverages on the premises within a short period of time or
taken off the premises. The IZO prohibited fast food restaurants in establishments with
frontage on the Third Street Promenade. In addition, the land use classification for
“Restaurant, Limited-Service and Take-Out” was modified to not include Fast Food
Restaurant uses. The IZO was subsequently extended in January 2019.
On January 26, 2021, Council made permanent the interim prohibition on fast food uses
with frontage on the Promenade. However, to facilitate the ease in identifying these
types of establishments and implementing the regulations, creating new or modifying
existing land use definitions that would only be applicable to one specific zoning district
were not created as was done with the IZO. Instead, the criteria identifying these types
of Restaurant, Limited-Service and Take-Out uses were added as a Specific Limitation
#22 to the land use regulations table in Zoning Ordinance Section 9.10.040. In addition,
10.B
Packet Pg. 1587
3 of 6
in order to provide additional flexibility in light of the economic conditions due to COVID-
19, the applicability threshold for establishments prohibited from occupying locations
with frontage on the Promenade was increased from 100 to 150 locations nationwide at
the time that the application for the establishment is deemed complete by the City.
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 27%. In addition to economic impacts that threaten the health, safety and
economic welfare of its citizens and businesses, high vacancy rates may lead to public
safety impacts, including, but not limited to, increase calls for emergency services. The
Council, staff, and community stakeholders continue to be concerned about the health
and vitality of Downtown overall and the Third Street Promenade area in particular.
Past Council Actions
Meeting Date Description
11/27/18
(attachment A)
Introduction and First Reading of an Ordinance to Amend
Santa Monica Municipal Code Section 9.10.040 to Prohibit
Certain Fast Food Restaurants in Establishments with
Frontage on the Third Street Promenade
01/08/19
(attachment B)
Introduction and Adoption of an Urgency Interim Ordinance
Extending Urgency Interim Zoning Ordinance 2594 (CCS)
Prohibiting Fast Food Restaurants on the Third Street
Promenade
01/26/21
(attachment C)
Second Reading and Adoption of an Ordinance of the City
Council of the City of Santa Monica Amending Santa Monica
Municipal Code Section 9.10.040 to Prohibit Certain Fast
Food Restaurants in Establishments with Frontage on the
Third Street Promenade
10.B
Packet Pg. 1588
4 of 6
Discussion
The Promenade’s success has resulted from the creation of an authentic urban retail,
dining, and cinema experience. As the economic recovery from COVID-19 continues
and the retail landscape evolves, the Promenade’s competitive advantage will depend
on the ability to deliver on a range of unique dining, retail, and entertainment uses with
an emphasis on promoting a diverse base of eating establishments. It is not the intent to
create a Promenade experience that could be found in any number of other Southern
California cities. However, in light of current economic conditions and the high vacancy
rate along the Promenade, staff recommends eliminating the prohibition of certain
restaurants with frontage on the Third Street Promenade and restore the ability to allow
a full range of Limited-Service and Take-Out Restaurants. This would
increase flexibility of use and opportunities for economic recovery by enabling additional
dining options on the Promenade for the duration of the interim ordinance.
Currently Specific Limitation #22 in the land use regulations table in Santa Monica
Municipal Code Section 9.10.040 reads as follows:
(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.
The proposed Interim Zoning Ordinance would eliminate the applicability of Specific
Limitation #22 which applies to establishments with frontage on the Promenade.
An interim ordinance is effective 30 days after second reading of the ordinance.
Pursuant to SMMC Section 9.46.090(C), an interim ordinance shall be of no further
force and effect 60 days from its effective date. The City Council may extend the interim
ordinance up to 60 months or adopt a permanent ordinance.
10.B
Packet Pg. 1589
5 of 6
Alternative Action
Should Council decide not to eliminate the prohibition of certain Restaurant, Limited-
Service and Take-Out establishments with frontage on the Promenade, an alternative
action could be to amend the applicability threshold for establishments prohibited on the
Promenade (Specific Limitation #22) and increase the number of locations from 150 to
500. This amendment would provide increased flexibility for dining options while still
retaining the Promenade’s authenticity, encouraging local uses, and restricting
establishments that have more than 500 locations nationwide.
Environmental Analysis
The proposed ordinance is categorically 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
ordinance 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. 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.
10.B
Packet Pg. 1590
6 of 6
Prepared By: Tony Kim, Principal Planner
Approved
Forwarded to Council
Attachments:
A. City Council Meeting - November 27, 2018 (Web Link)
B. City Council Meeting - January 8, 2019 (Web Link)
C. City Council Meeting - January 26, 2021 (Web Link)
D. CDD--IZO re Fast Food on Promenade 022823
10.B
Packet Pg. 1591
1
City Council Meeting: February 28, 2023 Santa Monica, California
ORDINANCE NUMBER _____ (CCS)
(City Council Series)
AN INTERIM ZONING ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTION 9.10.040
ELIMINATING THE PROHIBITION ON CERTAIN RESTAURANTS WITH FRONTAGE
ON THE THIRD STREET PROMENADE
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
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
10.B.d
Packet Pg. 1592 Attachment: CDD--IZO re Fast Food on Promenade 022823 [Revision 2] (5603 : Interim Zoning Ordinance Modifying Third Street Promenade
2
WHEREAS, fast food chains are formula establishments with numerous locations
and standardized features, such as façade, décor, color scheme and signage, dependent
on brand recognition created through repetition of the same characteristics for each store
in multiple locations; and
WHEREAS, the DCP permits fast food chains on the Third Street Promenade; and
WHEREAS, on November 27, 2018, the City Council adopted Urgency Interim
Zoning Ordinance Number 2594 (CCS) (“Interim Zoning Ordinance 2594”), which created
new use classifications for Restaurant, Fast Food and Restaurant, Limited-Service and
Take-Out for the BC (Promenade) District and prohibited Restaurant, Fast Food with
more than 100 locations nationwide in establishments with frontage on the Promenade;
and
WHEREAS, Interim Zoning Ordinance 2594 was designed to preserve the
authentic character of the Third Street Promenade and provide visitors with a distinctive
experience not found in most downtown shopping districts while the City evaluated
current zoning regulations for opportunities to retain the Promenade’s authenticity,
encourage local uses, and promote unique visitor experiences through the “Promenade
3.0” planning process; and
WHEREAS, on January 8, 2019, in accordance with Santa Monica Municipal Code
Section 9.46.090(D) and Government Code Section 65858(b), the City Council adopted
Urgency Interim Zoning Ordinance 2600 (CCS) (“Interim Zoning Ordinance 2600”)
extending Interim Zoning Ordinance 2594 for 10 months and 15 days to November 26,
2019; and
10.B.d
Packet Pg. 1593 Attachment: CDD--IZO re Fast Food on Promenade 022823 [Revision 2] (5603 : Interim Zoning Ordinance Modifying Third Street Promenade
3
WHEREAS, on November 12, 2019, in accordance with Santa Monica Municipal
Code Section 9.46.090(D) and Government Code Section 65858(b), the City Council
adopted Urgency Interim Zoning Ordinance 2625 (CCS) (“Interim Zoning Ordinance
2625”) extending Interim Zoning Ordinances 2594 and 2600 for 12 months to November
26, 2020; 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
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
10.B.d
Packet Pg. 1594 Attachment: CDD--IZO re Fast Food on Promenade 022823 [Revision 2] (5603 : Interim Zoning Ordinance Modifying Third Street Promenade
4
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, 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, 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, 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
10.B.d
Packet Pg. 1595 Attachment: CDD--IZO re Fast Food on Promenade 022823 [Revision 2] (5603 : Interim Zoning Ordinance Modifying Third Street Promenade
5
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
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
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, on January 26, 2021, the City Council adopted Ordinance Number
2661 (CCS) amending the text of the Zoning Ordinance to prohibit certain restaurants
with more than 150 locations nationwide in establishments with frontage along the Third
Street Promenade while Promenade planning efforts and economic recovery continued;
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
10.B.d
Packet Pg. 1596 Attachment: CDD--IZO re Fast Food on Promenade 022823 [Revision 2] (5603 : Interim Zoning Ordinance Modifying Third Street Promenade
6
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, 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 27%; 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, vacancy rates, in addition to economic impacts that threaten the
health, safety and economic welfare of its citizens and business, may lead to public safety
impacts, including, but not limited to, increased calls for emergency services; and
WHEREAS, as restaurant environments across the region and country continue to
evolve, there is a need to adjust allowed uses and dining options to enable economic
recovery and provide increased flexibility to minimize vacancies on the Third Street
Promenade; and
WHEREAS, recent inquiries have been made to potentially enable additional
dining options on the Promenade; and
WHEREAS, due to the continued economic uncertainty arising out of the COVID-
19 pandemic, the high vacancy rate along the Promenade, the City Council desires to
10.B.d
Packet Pg. 1597 Attachment: CDD--IZO re Fast Food on Promenade 022823 [Revision 2] (5603 : Interim Zoning Ordinance Modifying Third Street Promenade
7
eliminate the prohibition on restaurants with more than 150 locations nationwide in
establishments with frontage on the Promenade 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 exists due to the devastating impact
the COVID-19-mandated closures and limitations have had on the local economy,
including, but not limited to, the high vacancy rate on the Third Street Promenade, and
the approval of additional subdivisions, use permits, variances, building permits or any
other applicable entitlement for use which is required in order to comply with the
prohibition on restaurants with more than 150 locations nationwide in establishments with
frontage on the Third Street Promenade would result in a threat to 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. Notwithstanding anything to the contrary
in Santa Monica Municipal Code Section 9.11.040, Specific Limitation 22 shall not apply.
SECTION 2. 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 3. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any
court of competent jurisdiction, such decision shall not affect the validity of the remaining
10.B.d
Packet Pg. 1598 Attachment: CDD--IZO re Fast Food on Promenade 022823 [Revision 2] (5603 : Interim Zoning Ordinance Modifying Third Street Promenade
8
portions of this Ordinance. The City Council hereby declares that it would have passed
this Ordinance and each and every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage
of this Ordinance. The City Clerk shall cause the same to be published once in the official
newspaper within 15 days after its adoption. This Ordinance shall become effective 30
days from its adoption.
APPROVED AS TO FORM:
_________________________
DOUGLAS SLOAN
City Attorney
10.B.d
Packet Pg. 1599 Attachment: CDD--IZO re Fast Food on Promenade 022823 [Revision 2] (5603 : Interim Zoning Ordinance Modifying Third Street Promenade