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City Council Meeting 7-26-05 Santa Monica, California
ORDINANCE NUMBER 2162 (CCS)
(City Council Series)
AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA EXTENDING A MORATORIUM ON NEW OR EXPANDED
RETAIL USES ON THE GROUND FLOOR OF THE THIRD STREET
PROMENADE WITH LIMITED EXCEPTIONS
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS:
SECTION 1. Findinos and Purpose. The City Council finds and declares:
(a) In 1965, the City Council sought to revitalize its declining downtown business
district by closing three blocks of Third Street to vehicular traffic in order to create a
pedestrian shopping mall pursuant to the Pedestrian Mall Act.
(b )The Third Street Mall did not attract shoppers; and, as a result, retail businesses
on the mall failed, and the downtown business district continued to decline.
(c) In 1986, the City Council again acted to save its downtown by adopting the Third
Street Mall Specific Plan to provide a framework for reviving the Third Street Mall and
surrounding areas.
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(d) The Specific Plan made diversity the foundation of the mall's future, mandating a
mixture of uses and activities sufficient to ensure that the mall would attract a diverse group
of residents and visitors.
(e) Thereafter, the City embarked upon a substantial effort to transform the moribund
Third Street Mall into a new kind of public space which would serve as a community gathering
place, attract visitors from near and far and define the City's municipal character. The
redesign included numerous improvements to the pedestrian street: retail pavilions,
landscaping, water elements, public benches, street lamps, and topiary dinosaur sculptures
in the central landscaped area of each block. The area was also renamed the Third Street
Promenade.
(f) This space was, from the time of its conception, distinguished from other shopping
areas, by the carefully planned and unusual mix of opportunities it afforded, including street
performers, sidewalk dining, cinema, bookstores, special events, clothing stores, specialty
shops, and night clubs.
(g) As conceived, the Third Street Promenade was not simply a shopping mall; it was
a place to go for entertainment, company, relaxation, strolling; a place where one could watch
jugglers and dancers, dine outdoors, argue politics,listen to music, browse a bookshop, take
in a movie and more.
(h) Moreover, the Third Street Promenade was planned as a gathering place for all
segments of society: children, the elderly, and people from all cultural and economic groups.
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(i) The plan succeeded, and the Third Street Promenade became a resounding
success as a favored destination for local residents, Southern Californians and international
travelers alike.
U) As such, it became, and still is, an engine which drives Santa Monica's economy.
However, this success has had i.ts costs.
(k) The influx of visitors to the Third Street Promenade has brought significant traffic
and parking problems.
(I) At present, these problems are being addressed by a downtown parking strategy;
however, the problem is significant and the options are limited because the area is very small,
has been built out for decades and features a mixture of uses, including residential, which is
inconsistent with simply building larger and larger parking structures.
(m) Also, maintaining the delicate balance of entertainment, restaurants and retail
which is the foundation of the Third Street Promenade's success has been an ongoing
challenge.
(n) Over the years, market forces have threatened the mix many times; and the City
has responded to preserve the Third Street Promenade's unique character through the
adoption of laws and polices which promote the general welfare by maintaining the
Promenade's eclectic character.
(0) In 1996, the City revised the Third Street Mall Specific Plan through the adoption
ofthe Bayside District Specific Plan. A critical objective ofthis plan remained to U[a]ttract and
accommodate a mix of uses" serving residents, visitors and tourists during both daytime and
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evening hours. To this end, the specific plan established a ten-year projection and plan for
the controlled growth of retail outlets on the Third Street Promenade.
(p) However, the actual growth of retail far outstripped the planned growth to the point
that the ten year projection is already met, just five years into the planning period.
(q) As of 2001. there was already approximately 530,000 square feet of retail on the
three block Third Street Promenade and the pressure to create more retail spaces continued
unabated.
(r) The massive influx of retail establishments displaced restaurants and sidewalk
dining.
(s) Five restaurants were lost in the two years priorto the adoption of the initial interim
ordinance and four more were near or at the end of their leases; frontage devoted to sidewalk
dining has shrunk.
(t) As reflected by these changes, the balance of uses on the Third Street Promenade
was once again threatened; this time by a loss of restaurants and influx of additional retail.
If left unchecked, this trend will deprive the Third Street Promenade of its unique character and
vitality by rendering it simply a standard shopping mall.
(u) The influx of retail not only impacted the mix of establishment located on the Third
Street Promenade, it also exacerbated parking and traffic problems.
(v) Residents and visitors come to the Third Street Promenade for dining and
entertainment, typically for many hours. In contrast, persons who are simply shopping, stayfor
shorter periods of time. The result is more people making more trips and thereby placing
ever-increasing demands on the downtown's already overtaxed traffic and parking capacities.
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(w) These increased demands degrade the quality of residents' lives and the
desirabilityofthe Third Street Promenade and the City as destinations and thereby threaten
the City's welfare.
(x) Accordingly, in order to preserve the City's economic and social welfare, the City
Council must act in order to protect the unique qualities and vitality of the Third Street
Promenade by ensuring the best possible mix of restaurants, retail and entertainment.
(y) In general, the City must ensure the best possible mix of restaurants, retail and
entertainment so that the Promenade remains unusual and attractive and does not become
simply an average shopping mall through the continued expansion of retail at the expense of
other uses.
(z) Similarly, the City must preserve the outdoor dining opportunities which have
become one of the hallmarks of the Promenade.
(aa) Exactly how best to accomplish this end is a complex question which required
detailed study, including a review of the specific plan.
(bb) In light of these concerns, the City Council adopted Ordinance Number 2030
(CCS) on November 27, 2001, a forty-five day ordinance which established a moratorium on
new or expanded ground floor retail use on the Third Street Promenade, adopted Ordinance
Number 2032 (CCS) which extended Ordinance Number 2030 (CCS) until January 9,2003,
adopted Ordinance Number 2062 (CCS) which extended Ordinance Number 2030 (CCS)
until September 9, 2003, and adopted Ordinance Number 2082 (CCS) which extended
Ordinance Number 2030 (CCS) until September 9, 2005.
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(cc) After adoption of Ordinance Number 2030 (CCS), the City Council established a
Promenade Uses Task Force to study the Promenade issues described herein, to seek
feedback and input from the community, and to make recommendations to the City Council
regarding the appropriate mix of uses on the Promenade.
(dd) The Task Force met regularly since May 2002 and completed its work in March
2003. It considered goals and objectives for the Promenade and the Downtown, reviewed
relevant City policies and regulations, and conducted community workshops.
(ee) The Task Force subsequently prepared a series of recommendations for review
by the City Council. In March, 2005, the City Council adopted an ordinance implementing the
legislative changes for restaurants recommended by the Task Force.
(ff) At this time, it is not clear how these legislative changes and other implementation
measures will affect the viability of restaurants on the Promenade.
(gg) Forthe reasons described above, the City Council finds that there is a current and
immediate threat to the public health, safety or welfare and that a continued moratorium on
new or expanded ground floor retail use on the Third Street Promenade is necessary to
ensure that the character of the Promenade is preserved during the review period and that the
City remains able to ensure that the best possible mix of restaurants, retail and entertainment
is achieved. The approval of additional permits related to such retail use on the Third Street
Promenade pending the City's completion of its review of its land use policies and regulations
and their implementation would result in a threat to the public health, safety, or welfare since
these changes threaten the quality of residents' lives and the desirability of the Third Street
Promenade and the City as a destination. The extension of Ordinance Number 2030 (CCS),
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Ordinance Number 2032 (CCS), Ordinance Number 2062 (CCS), and Ordinance Number
2082 (CCS) for a period up to and including March 26, 2006, will provide the City with the
necessary time to further evaluate and undertake appropriate actions to address these
impacts.
SECTION 2. Moratorium.
(a) Subject to Section 3 of this Ordinance, a moratorium is hereby placed on the
acceptance for processing of applications for approval oftentative tract maps, tentative parcel
maps, administrative approvals, development review permits, conditional use permits, zoning
conformance determinations, business licenses, and building permits related to a new or
expanded retail use ifthat retail use would increase either the total linear footage orthe total
square footage of retail uses on the ground floor of any given block of the Promenade by more
than five percent (5%) beyond the total linear retail footage and total retail square footage that
existed on that block of the Promenade as of the effective date of Ordinance Number 2030
(CCS) which was extended by Ordinance Number 2032 (CCS), Ordinance Number 2062
(CCS), and Ordinance Number 2082 (CCS). A block is defined as both sides of the Third
Street Promenade to the alley and the adjacent sides of adjoining side streets. Portions of
the Third Street Promenade to be designated as a block for purposes ofthis Ordinance are:
Block 1: 1200 Block of Third Street Promenade
Block 2: 1300 Block of Third Street Promenade
Block 3: 1400 Block of Third Street Promenade
(b) Subject to Section 3 of this Ordinance, all applications which have not been
deemed complete as of November 27,2001, for approval ottentative tract maps, tentative
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parcel maps, administrative approvals, development review permits, conditional use permits,
zoning conformance determinations, business licenses, and building permits related to a new
or expanded retail use ifthat retail use would increase either the total linear footage orthe total
square footage of retail uses on the ground floor of any given block of the Promenade by more
than five percent (5%) beyond the total linear retail footage and total retail square footage that
existed on that block of the Promenade as otthe effective date of Ordinance Number 2030
(CCS) as set forth in Subsection (c) of this Section shall be disapproved.
(c) The total linear footage and square footage of retail uses on the ground floor of each
block ofthe Promenade as of the effective date of Ordinance Number 2030 (CCS) is hereby
established as follows:
Block 1 961 totallinearfeet/137 ,980 total square feet
Block 2 654 total linear feet/91 ,220 total square feet
Block 3 820 total linear feet/114,193 total square feet
(d) Priority for a business to be allocated any portion of the five percent (5%) retail
Iinearorsquare footage expansion authorized by subsections (a) or(b)ofthis Section shall
be established based on the issuance of a building permit for tenant improvements or the
receipt of a business license for the retail use. This priority shall be lost if the building permit
expires or the business fails to open within one year after the original business license is
issued.
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SECTION 3. Vested Riahts. This Ordinance shall not be applicable if an owner can
establish a vested right to develop or operate commercial property otherwise prohibited by
Section 2 of this Ordinance.
SECTION 4. This Ordinance shall be of no further force and effect after March 26,
2006.
SECTION 5. Any proVision of the Santa Monica Municipal Code, appendices thereto,
or prior interim ordinance 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 6. If any section, subsection, sentence, clause, or phrase otthis 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. 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
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newspaper within 15 days after its adoption. This Ordinance shall become effective thirty
days after its adoption.
APPROVED AS TO FORM:
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Approved and adopted this 26th day of July, 2005.
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Pam O'Connor, 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. 2162 (CCS) had its introduction on July 12, 2005, and was
adopted at the Santa Monica City Council meeting held on July 26, 2005, by the
following vote:
Ayes: Council members: Mayor O'Connor, Mayor Pro Tem Katz, Bloom,
Genser, Holbrook, Shriver
Noes: Council members: None
Abstain: Council members: None
Absent: Council members: McKeown
ATTEST:
\,;~,~ 00d<a4-
Maria M. Stewart, City Clerk
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