SR 05-23-2023 10A
City Council
Report
City Council Meeting: May 23, 2023
Agenda Item: 10.A
1 of 1
To: Mayor and City Council
From: Douglas Sloan, City Attorney, City Attorney's Office, Administration
Subject: Second Reading and Adoption of an Ordinance to Cancel Development
Agreement 13DEV-010 that Allowed Construction of a Multi-Screen Movie
Theater Complex on the Third Level of Santa Monica Place at 315 Colorado
Avenue
Recommended Action
Staff recommends that the City Council adopt the attached Ordinance.
Executive Summary
At its meeting on May 9, 2023, the City Council introduced for first reading an Ordinance
to cancel Development Agreement 13DEV-010 that allowed construction of a multi-
screen movie theater complex on the third level of Santa Monica Place at 315 Colorado
Avenue. The ordinance is now presented to the City Council for adoption.
Prepared By: Bradley Michaud, Principal Legal Analyst
Approved
Forwarded to Council
Attachments:
A. CDD-Ord-Cancellation of SMP Theater DA
10.A
Packet Pg. 1060
1
City Council Meeting May 23, 2023 Santa Monica, California
ORDINANCE NUMBER _________ (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA CANCELLING DEVELOPMENT AGREEMENT 13DEV-010
BETWEEN THE CITY OF SANTA MONICA, A MUNICIPAL CORPORATION, AND
MACERICH SMP LP, A DELAWARE LIMITED PARTNERSHIP
WHEREAS, on April 22, 2014, City Council approved Development Agreement
13DEV-010 (“Development Agreement”) to allow the construction of a multi-screen movie
theater complex on the third level of Santa Monica Place, located at 315 Colorado Avenue
(the “project”); and
WHEREAS, at the time of the Development Agreement’s approval, and pending
completion of the Downtown Community Plan (“DCP”), the City’s Interim Zoning
Ordinance (“IZO”) required the project to be reviewed though a development agreement
because the project exceeded the height limitations in the IZO but was within the eighty-
four-foot height limit allowed by the Land Use and Circulation Element (“LUCE”); and
WHEREAS, consistent with LUCE land use policies at the time, the Development
Agreement included a suite of community benefits required by Macerich, including, but
not limited to, contributions towards construction of the City’s Colorado Esplanade Project
and the Downtown Wayfinding Metro Grant project, provisions for making theaters
available to the American Film Market, a transportation demand management plan, local
hiring provisions, and sustainable features; and
WHEREAS, the tenant space that was created as a result of the Development
Agreement has not been used a movie theater since March 2020, and any new uses of
10.A.a
Packet Pg. 1061 Attachment: CDD-Ord-Cancellation of SMP Theater DA (5777 : SMP Theater DA Cancellation - Second Reading)
2
the space would require a separate process to determine what, if any, discretionary
permits are required; and
WHEREAS, Macerich is proposing a new museum in the tenant space, a permitted
use in the DCP’s Transit Adjacent Zone; and
WHEREAS, these key community benefits required were satisfied concurrently
with the completion of construction of the project or are no longer applicable where the
use of the space will no longer be for a movie theatre; and
WHEREAS, many of the terms and conditions contained in the Development
Agreement are also structured for a single-purpose theater use that is no longer in
operation, and, therefore, restrict the reuse of the vacant tenant space for other permitted
uses identified in the DCP; and
WHEREAS, since the approval of the Development Agreement, the height limit
has been increased in the DCP, and a development agreement would no longer be
required for the project; and
WHEREAS, facilitating the reuse of this anchor tenant space for a visitor-and-
community-serving immersive art use, or other permitted use, will help support the overall
economic recovery efforts of both the City and private property owners in Santa Monica’s
Downtown, contribute to the Downtown Core as being a thriving, mixed-use urban
environment, and provide entertainment, arts, and cultural opportunities to residents and
visitors alike; and
WHEREAS, pursuant to Santa Monica Municipal Code Section 9.60.150, either
the City or applicant or successor in interest may propose an amendment or cancellation
in whole or in part of a development agreement; and
10.A.a
Packet Pg. 1062 Attachment: CDD-Ord-Cancellation of SMP Theater DA (5777 : SMP Theater DA Cancellation - Second Reading)
3
WHEREAS, except as provided for in Santa Monica Municipal Code 9.60.180, a
development agreement may only be amended or cancelled in whole or in part by the
mutual consent of all parties to the subject development agreement; and
WHEREAS, Macerich has requested that the Development Agreement be
cancelled; and
WHEREAS, on April 19, 2023, the Planning Commission conducted a duly-noticed
public hearing to consider the proposed Development Agreement cancellation, and, after
considering oral and written testimony, recommended to the City Council that the City
Council agree to cancel the Development Agreement; and
WHEREAS, on May 9, 2023, the City Council conducted a duly-noticed public
hearing to consider the proposed cancellation and the Planning Commission’s
recommendation.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Development Agreement 13DEV-010 adopted by City Council on
April 22, 2014, is hereby cancelled in its entirety pursuant to Santa Monica Municipal
Code Section 9.60.150.
SECTION 2. Any provision of the Santa Monica Municipal Code or appendices
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
10.A.a
Packet Pg. 1063 Attachment: CDD-Ord-Cancellation of SMP Theater DA (5777 : SMP Theater DA Cancellation - Second Reading)
4
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.
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.A.a
Packet Pg. 1064 Attachment: CDD-Ord-Cancellation of SMP Theater DA (5777 : SMP Theater DA Cancellation - Second Reading)