SR 04-25-2023 10B
City Council
Report
City Council Meeting: April 25, 2023
Agenda Item: 10.B
1 of 4
To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Introduction and First Reading of an Interim Zoning Ordinance Extending
Interim Zoning Regulations Adopted by Interim Zoning Ordinance 2738 (CCS)
to Eliminate the Prohibition of Certain Restaurants 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 extending interim zoning
regulations adopted by Interim Zoning Ordinance 2738 (CCS) eliminating the
prohibition of certain restaurants with frontage on the Third Street Promenade.
Summary
On March 14, 2023, Council adopted Interim Zoning Ordinance Number 2738 (CCS)
(IZO 2738) which adopted interim zoning regulations to eliminate the prohibition of
certain chain fast food restaurants with frontage on the Third Street Promenade. In
accordance with Santa Monica Municipal Code Section 9.46.090(C), IZO 2738 is set to
expire on June 12, 2023. Staff proposes an extension of the interim zoning regulations
that would continue until April 13, 2028. Over this timeframe, staff will monitor the
number of restaurants that open on the Promenade as a result of this IZO and will
provide periodic updates to Council. Depending on the circumstances, Council could
make amendments to the IZO or repeal it.
10.B
Packet Pg. 234
2 of 4
Discussion
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 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.
In light of current economic conditions and the high vacancy rate along the Promenade,
on March 14, 2023, Council adopted an IZO that eliminated the prohibition of certain
restaurants with frontage on the Third Street Promenade and restored the ability to
allow a full range of Limited-Service and Take-Out Restaurants. This increases flexibility
of use and opportunities for economic recovery by enabling additional dining options on
the Promenade for the duration of the interim ordinance.
The Interim Zoning Ordinance is proposed to remain unchanged as it is still too early to
gauge the benefits and impacts the initial IZO has had since its adoption. No new
restaurants with more than 150 locations nationwide have yet to open on the
Promenade since the adoption of the IZO in March.
The interim ordinance became effective on April 13, 2023, and is set to expire on June
12, 2023. Council may extend the interim ordinance until April 13, 2028, allowing the
IZO to be in effect up to 60 months in accordance with Santa Monica Municipal Code
(SMMC) Section 9.46.090(C).
Staff recommends extension of the IZO for the allowable 60 months until April 13, 2028.
As the economic recovery from COVID-19 continues and the retail landscape evolves,
10.B
Packet Pg. 235
3 of 4
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. The proposed extension would allow staff an
opportunity to monitor the number of restaurants that open on the Promenade as a
result of this IZO and provide periodic updates to Council. The proposed extension
would not preclude Council from revisiting the IZO prior to its expiration to potentially
amend the provisions or duration of the IZO. Depending on the circumstances, Council
could make amendments to the IZO or repeal it.
Past Council Actions
Meeting Date Description
03/14/23
(attachment A)
Second Reading and Adoption of an Interim Zoning Ordinance
Eliminating Prohibition of Certain Restaurants in
Establishments with Frontage on the Third Street Promenade
Environmental Review
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 because of the
recommended action.
10.B
Packet Pg. 236
4 of 4
Prepared By: Tony Kim, Principal Planner
Approved
Forwarded to Council
Attachments:
A. City Council Meeting - March 14, 2023 (Web Link)
B. CDD--IZO re Fast Food on Promenade Extension 042523
10.B
Packet Pg. 237
1
City Council Meeting: April 25, 2023 Santa Monica, California
ORDINANCE NUMBER _____ (CCS)
(City Council Series)
AN INTERIM ZONING ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA EXTENDING INTERIM ZONING REGULATIONS ADOPTED BY
INTERIM ZONING ORDINANCE NUMBER 2738 (CCS) AMENDING SANTA MONICA
MUNICIPAL CODE SECTION 9.10.040 TO ELIMINATE THE PROHIBITION ON FAST
FOOD RESTAURANTS IN ESTABLISHMENTS 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.b
Packet Pg. 238 Attachment: CDD--IZO re Fast Food on Promenade Extension 042523 [Revision 1] (5686 : Extension of an Interim Zoning Ordinance Eliminating
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 e ach 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 2 6,
2019; and
10.B.b
Packet Pg. 239 Attachment: CDD--IZO re Fast Food on Promenade Extension 042523 [Revision 1] (5686 : Extension of an Interim Zoning Ordinance Eliminating
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.b
Packet Pg. 240 Attachment: CDD--IZO re Fast Food on Promenade Extension 042523 [Revision 1] (5686 : Extension of an Interim Zoning Ordinance Eliminating
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 s tate 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 r etailers by
10.B.b
Packet Pg. 241 Attachment: CDD--IZO re Fast Food on Promenade Extension 042523 [Revision 1] (5686 : Extension of an Interim Zoning Ordinance Eliminating
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 fast food chains
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.b
Packet Pg. 242 Attachment: CDD--IZO re Fast Food on Promenade Extension 042523 [Revision 1] (5686 : Extension of an Interim Zoning Ordinance Eliminating
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.b
Packet Pg. 243 Attachment: CDD--IZO re Fast Food on Promenade Extension 042523 [Revision 1] (5686 : Extension of an Interim Zoning Ordinance Eliminating
7
eliminate the prohibition on fast food chains 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, on March 14, 2023, the City Council adopted Interim Zoning
Ordinance Number 2738 (CCS) (“IZO 2738”), which established interim zoning
regulations to amend Santa Monica Municipal Code Section 9.10.040 by eliminating the
prohibition on fast food chains with more than 150 locations nationwide in establishments
with frontage on the Promenade (the “interim zoning regulations”); and
WHEREAS, in accordance with Santa Monica Municipal Code Section
9.46.090(C), the interim zoning regulations established by IZO 2738 will expire on June
12, 2023, sixty days after its effective date; and
WHEREAS, Section 9.46.090(C) authorizes the City Council, after notice and a
public hearing, extend interim zoning regulations established by an interim zoning
ordinance for up to 60 months; and
WHEREAS, the City Council desires to extend the interim zoning regulations in
accordance with Section 9.46.090(C) to allow the City ensure that an over proliferation of
fast food chain restaurants does not occur on the Promenade by monitoring increases to
the number of those fast food restaurants along the Promenade ; and
WHEREAS, on April 25, 2023, the City Council conducted a duly-noticed public
hearing to consider an extension of the interim zoning regulations, and, after considering
oral and written testimony, 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
10.B.b
Packet Pg. 244 Attachment: CDD--IZO re Fast Food on Promenade Extension 042523 [Revision 1] (5686 : Extension of an Interim Zoning Ordinance Eliminating
8
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 fast food chains 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
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 ordinan ce
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
10.B.b
Packet Pg. 245 Attachment: CDD--IZO re Fast Food on Promenade Extension 042523 [Revision 1] (5686 : Extension of an Interim Zoning Ordinance Eliminating
9
newspaper within 15 days after its adoption. This Ordinance shall become effective 30
days from its adoption.
SECTION 5. This Ordinance shall be of no further force or effect as of April 13,
2028.
APPROVED AS TO FORM:
_________________________
DOUGLAS SLOAN
City Attorney
10.B.b
Packet Pg. 246 Attachment: CDD--IZO re Fast Food on Promenade Extension 042523 [Revision 1] (5686 : Extension of an Interim Zoning Ordinance Eliminating