O2124
f:\atty\muni\laws\barry\downtowninterimord2d-1.wpd
City Council Meeting 5-25-04 Santa Monica, California
ORDINANCE NUMBER 2124 (CCS)
(City Council Series)
AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA EXTENDING THE MODIFICATIONS TO THE DEVELOPMENT REVIEW
THRESHOLDS IN C3, C3C AND BSC DISTRICTS TO 7,500 SQUARE FEET AND
EXEMPTING AFFORDABLE HOUSING PROJECTS OF FIFTY UNITS OR LESS
FROM A DEVELOPMENT REVIEW PERMIT OR A CONDITIONAL
USE PERMIT CITYWIDE
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS
SECTION 1. Findings and Purpose. The City Council finds and declares:
(a) A development review permit is intended to allow the construction of certain
projects for which the design and siting could result in an adverse impact on the
surrounding area such as development that is proposed to be built to a greater intensity
and building height than generally permitted in the area
(b) A development review permit allows forthe review of the location, size, massing
and placement of a proposed structure on the site, particularly as the project relates to the
existing context of the area in which it is located. The development review process is
designed to ensure that the development is compatible with and relates harmoniously with
the surrounding neighborhood
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(c) The City's Zoning Ordinance establishes by zoning district square footage
threshold criteria for development review permits based upon the floor area of a project.
(d) A project that requires a development review permit is subject to public review
by the Planning Commission, with appeal to the City Council, whereas a project below the
development permit review threshold can be administratively approved.
(e) Presently, under the City's Zoning Ordinance, the City's development review
thresholds is 30,000 square feet in the downtown zoning districts.
(f) The City has recently modified the development review threshold in the RVC
Residential Visitor, BCD, C2, C4, C5, C6, CM, CP, M1 and LMSD Districts to 7,500 square
feet with certain exceptions, including housing projects with at least 15% of the units deed
restricted as affordable to households with 80% of median incomes and 10% of the units
deed restricted as affordable to households with 60% of median incomes and housing
projects with 100% of the units deed restricted to households with 80% of median incomes.
(g) The City itself is extremely dense with a land area of just eight square miles and
a population of approximately 85,000 people. Additionally, about 300,000 people work in
the City and approximately 500,000 people visit the City on weekends, The downtown
business district is particularly dense and busy,
(h) Since the early 1990's, the City has promoted housing by creating substantial
incentives for developers to build such housing in the downtown area. These incentives
have particularly favored affordable housing,
(i) During recent years, the City has experienced an unprecedented economic
prosperity.
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U) As a result of these two factors, and others, construction in the downtown has
boomed, far exceeding expectations. Indeed, as of the date of the initial interim ordinance,
800 new housing units were in various stages of completion in the downtown area, having
obtained either a certificate of occupancy, a building permit, or all necessary City
approvals but a building permit.
(k) Some of the housing developers have taken advantage of the opportunity to
build multiple, large, identical or nearly identical projects on adjacent lots or on lots in close
proximity pursuant to administrative approvals.
(I) These projects helped the City achieve its goal of promoting housing: and, today,
the downtown is home to many Santa Monica residents,
(m) However, the impact upon residents and businesses of the building boom in
general and the building of multiple identical or similar large projects on the same block has
been substantial and dire.
(n) Because such projects have, individually, been beneath the downtown review
threshold of 60,000 square feet, they have been subject to only administrative review.
(0) The Zoning Ordinance's development review thresholds in the downtown area
of the City are too high since these thresholds have resulted in the administrative approval
of projects that create significant adverse impacts on adjacent uses. Yet, given the
ministerial nature of the approval process, the City was not able to mitigate or address
these impacts.
(p) More specifically, these larger scale developments have created adverse noise,
traffic, parking, aesthetic, privacy, light and air, shade and shadow impacts on these
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residential areas and adverse impacts upon pedestrian orientation, which are incompatible
with the existing scale and character of these neighborhoods.
(q) During the period of May 1997 through May 2002, thirty-three (33) administrative
approvals were issued both for new buildings and additions in the C3, C3C, and BSC
Districts of the City.
(r) The median new building project size equaled over twenty-eight thousand feet
with fourteen projects exceeding forty-eight thousand feet.
(s) Because of the high threshold for discretionary review, residential neighbors and
members of the business community have not had the opportunity to express particular
concerns relating to such issues as the location of loading docks, trash collection sites,
driveway access, and impacts upon light and shade - an opportunity they have in the
discretionary review process.
(t) Consequently, because the downtown has become much more dense in recent
years and because it has become home to a large number of City residents, it is necessary
to lower the development review threshold to ensure that the quality of the area is
preserved for the benefit of residents, workers, and visitors alike. Reducing the
development review threshold to 7,500 square feet would allow thorough review of the
impacts of large projects and enable the public to participate in this review. Reducing the
development review threshold would also ensure that administrative approval is only
available to smaller scale developments which produce far fewer adverse impacts on
nearby residential neighborhoods. However, adoption of this ordinance would not prohibit
any uses currently authorized in the downtown.
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(u) Indeed, reducing the development review threshold would not alter the City's
substantial commitment to promoting residential uses in non-residential zoning districts
which is manifest in City policy and law.
(v) Residential development in all of the City's commercial districts would still be
authorized. Thus, residential development could still occur in over 80% of the City's
acreage.
(w) Moreover, City policy provides substantial development incentives for residential
housing. For instance, in the SSC, C3, and C3C districts, any floor area devoted to
residential use is eligible to receive a FAR (Floor Area Ratio) discount of 50%. For
instance, a residential development located on two adjoining lots in portions of the C3C
district would be eligible to develop a 60,000 square foot project in contrast to a 30,000
square foot commercial project.
(x) Additionally, the City has eliminated the restriction on the number of stories that
can be built if the structure contains at least one floor of residential use and has increased
the maximum height of projects with a designated number of floors of residential use.
(y) The City's Affordable Housing Production Program housing fees are also
discounted for residential development in commercial areas.
(z) Additionally, in determining whether a development review permit is required for
new development, floor area devoted to residential uses is discounted by fifty percent
(50%). Thus, even with the proposed changes, residential development of up to 15,000
square feet could be approved administratively.
(aa) Further, this ordinance exempts projects that are one hundred percent
affordable to households with incomes of eighty percent of median income or less or
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projects that contain a minimum of eighty percent of the floor area is devoted to multi-
family housing with twenty percent of the housing units affordable to households with
incomes of sixty percent of median income or ten percent of the housing units devoted to
households with incomes of fifty percent of median income or less. Such projects could
be administratively approved if the projects were less than 60,000 square feet. This
ordinance would also establish affordable rental housing projects with no more than 50
units as a permitted use in all districts in the City which already authorizes this use and
would eliminate the development review permit requirement for these projects.
(bb) The ordinance's exemptions for affordable housing projects and projects with
a significant percentage of their units affordable to low income tenants advances several
goals and policies of the City's Housing Element including, but not limited to, Housing
Element Policy 2.8 (Continue to provide development incentives and reduced planning fees
for development of affordable housing).
(cc) I n preparing its 2000-2005 Housing Element, the City contracted with the policy,
financial, and management consulting firm of Hamilton, Rabinovitz & Alschuler ("HR&A"),
HR&A undertook an extensive review and analysis of numerous governmental programs,
policies, and regulations to assess whether they operated as a constraint on housing
development. One ofthe regulations analyzed was Ordinance No. 1999 (CCS). However,
the C3, C3C, and SSC Districts contain different development standards and development
patterns than those districts covered by Ordinance No. 1999 (CCS) and previously
analyzed. Thus, although not generally required in conjunction with the adoption of an
ordinance, the City subsequently retained HR&A and voluntarily undertook a constraint
analysis on the proposed ordinance because of the City's strong municipal commitment
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to fostering affordable housing. HR&A prepared an analysis of the impact that this
proposed ordinance would have on the financial return of multifamily project applicants for
the purpose of assessing whether this ordinance would constitute a "governmental
constraint" within the meaning of State Housing Element Law ("Constraint Analysis").
HR&A concluded that this ordinance would not constitute a constraint. More specifically,
HR&A concluded that this regulatory change would not operate as a constraint within the
meaning of State Housing Element law because it will not add costs to a project that are
so substantial that it would render an otherwise feasible project to become infeasible,
(dd) However, for the reasons detailed above, it is not appropriate that all housing
projects above 15,000 square feet continue to be approved without discretionary review
unless these projects constitute affordable housing projects or contain a significant portion
of affordable housing.
(ee) Given the circumstances described above, the Zoning Ordinance requires
review and revision as it pertains to the development review permit threshold in the C3,
C3C, and BSC districts.
(ff) Pending the study and possible amendment of the Zoning Ordinance, it is
necessary, on an interim basis, to extend the modifications to the existing project design
and development standards in these districts establishing a 7,500 square foot threshold
for requiring a development review permit.
(gg) In light of these concerns, the City Council adopted Ordinance Number 2058
(CCS) on November 12,2002 which modified the development review thresholds for the
BSC, C3, and C3C districts until December 27, 2002. The City Council subsequently
adopted Ordinance Number 2060 (CCS) on November 26, 2002 which extended the
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provisions of Ordinance Number 2058 (CCS) up to and including June 26, 2004. The
Council directed staff to return with specific design standards for the downtown, study the
appropriate level of review and propose a new review process for development review
permits in the downtown.
(hh) The Planning Commission and the Architectural Review Board conducted a
joint meeting to discuss the proposed amendments on September 10, 2003,
(ii) The City Council conducted a public hearing to preliminarily review the proposals
on October 28, 2003.
Uj) On March 3, 2004, the Planning Commission held a public hearing to adopt a
Resolution of Intention which stated the Commission's intention to recommend
modifications to the City's Zoning Ordinance to the City Council
(kk) On March 7, 2004 and March 24, 2004, the Planning Commission held a
public hearing on the proposed ordinance and recommended that the City Council approve
the proposed ordinances with certain specified modifications, The proposed ordinance
would modify development standards, design standards, and review procedures in the
downtown zoning districts.
(II) On April 13, 2004, the City Council was scheduled to review and consider this
proposed ordinance. However, the Council continued this hearing to May 11, 2004, which
may leave insufficient time for the enactment of new standards prior to the expiration of
Ordinance No. 2058 (CCS) and Ordinance No. 2060 (CCS),
(mm) As described above, there exists a current and immediate threat to the public
health, safety, or welfare should the interim ordinance not be adopted and should
development inconsistent with the contemplated revisions to the developments standards
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be allowed to occur. Approval of additional development inconsistent with the proposed
interim standards would result in a threat to the public health, safety, or welfare.
Therefore, the City Council finds that the public health, safety and general welfare require
that the modifications to the development review thresholds be continued on an interim
basis. Consequently, this ordinance extends the provisions of Ordinance No. 2058 (CCS)
and Ordinance No. 2060 (CCS) up to and including March 11,2007. During this interim
period, the following standards for the SSC, C3, and C3C districts on an interim basis.
(nn) This interim ordinance is consistent with the City's General Plan, including its
Housing Element. It does not constitute and is not intended to be an amendment to the
City's Housing Element.
SECTION 2. Interim Zoning.
Except as provided in Sections 3 and 4 of this Ordinance:
(a) No development or permit shall be approved pursuant to Chapter 1 of Article IX
of the Santa Monica Municipal Code for land in the C3 District, unless the following findings
are made: The project complies with existing C3 District property development
standards except, a development review permit is required for any development of more
than seven thousand five hundred square feet of floor area. Square footage devoted to
residential use shall be reduced by fifty percent when calculating whether a development
review permit is required.
(b) No development or permit shall be approved pursuant to Chapter 1 of Article IX
of the Santa Monica Municipal Code for land in the C3C District unless the following
findings are made: The project complies with existing C3C District property development
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standards except, a development review permit is required for any development of more
than seven thousand five hundred square feet of floor area. Square footage devoted to
residential use shall be reduced by fifty percent when calculating whether a development
review permit is required
(c) No development or permit shall be approved pursuant to Chapter 1 of Article IX
of the Santa Monica Municipal Code for land in the BSC District unless the following
findings are made: The project complies with existing BSC District property development
standards except, a development review permit is required for any development of more
than seven thousand five hundred square feet of floor area. Square footage devoted to
residential use shall be reduced by fifty percent when calculating whether a development
review permit is required.
SECTION 3. The following projects shall be exempt from this ordinance
(a) Projects that contain a minimum of eighty percent (80%) of floor area devoted
to multi-family residential use provided that at least twenty percent (20%) of the housing
units are deed-restricted or restricted by an agreement approved by the City for occupancy
by households with incomes of sixty percent (60%) of median income or less orat least ten
percent (10%) of the housing units are deed-restricted or restricted by an agreement
approved by the City for occupancy by households with incomes of fifty percent (50%) of
median income or less. The required percentage of affordable housing units shall not
apply to the 25% State density bonus units if so provided in the project.
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(b) Affordable housing projects in which one hundred percent (100%) of the housing
u nits are deed-restricted or restricted by an agreement approved by the City for occupancy
by households with incomes of eighty percent (80%) of median income or less,
(c) Notwithstanding subsection (a) of this Section, projects in the C3C and SSC
Districts which are required by the City's Zoning Ordinance to devote more than twenty
percent (20%) of floor area to pedestrian oriented uses shall also be exempt if these
projects contain the maximum percentage of multi-family residential use authorized by the
Zoning Ordinance.
(d) The requirements of subsection (a) of this Section may also be met through the
provision of off-site affordable housing units subject to the following provisions:
'1) The number of off-site affordable housing units provided by the project shall be
at least twenty-five percent (25%) greater than the number of on-site units that would have
been provided by the project to meet the requirements of subdivision (a) of this Section.
(2) The off-site affordable housing units shall be developed in accordance with the
requirements of subsections (b) through (g) of Santa Monica Municipal Code Section
9.56.060,
(3) The off-site affordable housing units shall be located in an affordable housing
project in which 100% of the housing units are deed-restricted or restricted by an
agreement approved by the City in accordance with the following affordability levels:
(a) At least fifty percent (50%) of the housing units in the affordable housing project
shall be affordable to low (60% of median income) or very low (50% of median income)
income households, and
(b) The remaining housing units in the affordable housing project shall be affordable
to moderate (100% of median income), low, or very low income households,
(4) The affordable housing project shall be developed to the maximum allowable
floor area for the zone in which the project is developed consistent with the City's
architectural design standards,
SECTION 4. Affordable Rental Housing Projects with no more than fifty units shall
be considered a permitted use, shall not require a development review permit, and shall
not be subject to Santa Monica Municipal Code Section 9.04.08.28.040 (v) and (w). All
other property development standards and architectural review requirements ofthe Zoning
Ordinance in the district in which the parcel is located shall apply. For purposes of this
Section, an affordable rental housing project shall be defined as rental housing in which
100% of the dwelling units are deed-restricted or restricted by an agreement approved by
the City for occupancy by households with incomes of eighty percent (80%) of median
income or less. An affordable rental housing project may also include non-residential
uses, as long as such uses constitute neighborhood-serving goods, services, or retail uses
that do not exceed fifteen percent of the floor area of the total project and these
neighborhood-serving goods, services or retail uses are designated as permitted uses in
the Zoning Ordinance in the district in which the parcel is located. This Section 4 shall not
apply in the LMSD, the DP, the BP, and the R-MH districts.
SECTION 5. This ordinance shall be of no further force and effect after March 11
2007, unless prior to that date, after a public hearing, noticed pursuant to Santa Monica
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Municipal Code Section 9.04.20.22.050, or any successor ordinance thereto, the City
Council, by majority vote, extends this interim ordinance.
SECTION 6 Any provision of the Santa Monica Municipal Code, appendices
thereto, or any interim ordinance inconsistentwith 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 7. 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.
SECTION 8. This Ordinance shall be applicable to applications for development
projects deemed complete on or after May 21,2002.
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SECTION 9. 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:
IJ)f~J~{A(Jk~
M RSHAJ S MOU IE
City Attorney .
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App"oved and adopted this 2$th day of May, 2004. ~
/~ .~.,-
Richard Bloom, Mayor
State of California )
County of Los Angeles) ss.
City of Santa Monica )
I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby certify that the
foregoing Ordinance No. 2124 (CCS) had its introduction on May 11,2004, and was
adopted at the Santa Monica City Council meeting held on May 25, 2004, by the
following vote:
Ayes: Council members: Mayor Bloom, Mayor Pro Tern McKeown, Genser,
Feinstein
Noes: Council members: Katz
Abstain: Council members: Holbrook
Absent: Council members: O'Connor
ATTEST:
c...--.
~~.~~
Maria M. Stewart, . y Clerk
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