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O2198 f: \atty\muni\laws\bar\baysidedistrictretail-7 -25-06 City Council Meeting 7-25-06 Santa Monica, California ORDINANCE NUMBER 2198 (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTIONS 9.04.08.15.020, 9.04.08.15.040 AND 9.04.08.15.085 TO REVISE THE REVIEW PROCESS REGULATING THE CONVERSION OF ANY PORTION OF A FOOD USE TO ANY OTHER NEW OR EXPANDED USE LOCATED ON THE GROUND FLOOR LEVEL ADJACENT TO THE THIRD STREET PROMENADE WHEREAS, 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; and WHEREAS, 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; and WHEREAS, 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; and WHEREAS, 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; and 1 WHEREAS, 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; and WHEREAS, 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 and the area was also renamed the Third Street Promenade; and WHEREAS, 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; and WHEREAS, 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; and WHEREAS, 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; and WHEREAS, 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; and 2 WHEREAS, as such, it became, and still is, an engine which drives Santa Monica's economy; however, this success has had its costs; and WHEREAS, the influx of visitors to the Third Street Promenade has brought significant traffic and parking problems; and WHEREAS, 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; and WHEREAS, 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; and WHEREAS, 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; and WHEREAS, in 1996, the City revised the Third Street Mall Specific Plan through the adoption of the Bayside District Specific Plan, a critical objective of which remained to attract and accommodate a mix of uses serving residents, visitors and tourists during both daytime and evening hours; and WHEREAS, 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; and 3 WHEREAS, the actual growth of retail far outstripped the planned growth to the point that the ten year projection was already met just five years into the planning period; and WHEREAS, 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; and WHEREAS, the massive influx of retail establishments displaced restaurants and sidewalk dining; and WHEREAS, five restaurants were lost in the two years prior to the adoption of the initial interim ordinance and four more were near or at the end of their leases; frontage devoted to sidewalk dining shrunk; and WHEREAS, 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; and WHEREAS, if left unchecked, this trend will deprive the Third Street Promenade of its unique character and vitality by rend ering it simply a standard shopping mall; and WHEREAS, the influx of retail not only impacted the mix of establishment located on the Third Street Promenade, it also exacerbated parking and traffic problems; and WHEREAS, residents and visitors come to the Third Street Promenade for dining and entertainment, typically for many hours; in contrast, persons who are simply shopping, stay for shorter periods of time, resulting in more people making more trips and thereby placing ever-increasing demands on the downtown's already overtaxed traffic and parking capacities; and 4 WHEREAS, these increased demands degrade the quality of residents' lives and the desirability of the Third Street Promenade and the City as destinations and thereby threaten the City's welfare; and WHEREAS, 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; and WHEREAS, 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; and WHEREAS, similarly, the City must preserve the outdoor dining opportunities which have become one of the hallmarks of the Promenade; and WHEREAS, exactly how best to accomplish this end is a complex question which required detailed study, including a review of the specific plan; and WHEREAS, 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, adopted Ordinance Number 2082 (CCS) which extended Ordinance Number 2030 (CCS) until 5 September 9, 2005, and adopted Ordinance Number 2162 (CCS) which extended Ordinance Number 2030 (CCS) until March 26, 2006; and WHEREAS, 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; and WHEREAS, the Task Force met regularly between May 2002 and March 2003, considering goals and objectives for the Promenade and the Downtown, reviewing relevant City policies and regulations, and conducting community workshops; and WHEREAS, the Task Force subsequently prepared a series of recommendations for review by the City Council; and WHEREAS, in March, 2005, the City Council adopted an ordinance implementing the legislative changes for restaurants recommended by the Task Force; and WHEREAS, at the time of the ordinance's adoption, it was not clear how these legislative changes and other implementation measures would affect the viability of restaurants on the Promenade; and WHEREAS, due to this uncertainty, the City Council retained the interim standards; and WHEREAS, on February 14, 2006, the City Council amended the City's Zoning Ordinance by adopting Ordinance Number 2175 (CCS) to require a conditional use permit for the conversion of any portion of a restaurant use or any associated recreational or entertainment use to a new or expanded retail use located on the ground 6 floor level adjacent to the Third Street Promenade in the BSC-1 portion of the BSC District subject to new standards and findings; and WHEREAS, when the City Council adopted Ordinance Number 2175 (CCS), the Council also directed staff to return with proposed modifications which address the continuing concerns expressed by members of the community including the Bayside District Corporation; and WHEREAS, the proposed ordinance would make several modifications to the Zoning Ordinance in response to these concerns including imposing the conditional use permit requirement only on food uses that were in existence on January 24, 2006, broadening the scope of the ordinance to include all food uses, and establishing a hardship finding as part of the conditional use permit process; and WHEREAS, for the reasons described above, the City's Comprehensive Land Use and Zoning Ordinance should be revised to adjust the restrictions on the expansion or establishment of new ground floor retail uses on the Third Street Promenade to ensure and maintain the district's unique mix of uses; to improve the effectiveness of the regulation; and to clarify terms; and WHEREAS, on April 5, 2006, the Planning Commission held a public hearing to adopt a Resolution of Intention which stated the Commission's intention to recommend modification to the City's Zoning Ordinance to the City Council; and WHEREAS, the Planning Commission conducted public hearings and considered the proposed amendment on May 3, 2006; and WHEREAS, the City Council held a public hearing on the proposed text amendment on July 11, 2006; and 7 WHEREAS, the proposed Zoning Ordinance text amendment is consistent in principle with the goals, objectives, policies, land uses, and programs specified in the adopted General Plan, specifically, Land Use Element Objective 1.3, which states that the City's land use policies should seek to "reinforce Downtown as the focus of the City, supporting the greatest concentration of activity; and WHEREAS, the proposed amendment would continue to limit the amount of retail uses on the Third Street Promenade and allow for the preservation of dining opportunities to ensure the unique mix of restaurants, retail, and entertainment, maintaining focus and concentration of activity on the Promenade and Downtown area; and WHEREAS, the proposed Zoning Ordinance text amendment is also consistent with Land Use Element Objective 1.4, which states that the City's land use policies should seek to "encourage revitalization of the Third Street Mall, recognizing the important role the Third Street Mall can play in making Downtown the activity focus of the City;" and WHEREAS, the proposed amendment would continue to limit the expansion of retail uses at the expense of restaurant uses and would encourage and maintain the viability of the Promenade and Downtown area by preserving the character and unique mixture of uses, a key element to the success of the Promenade; and WHEREAS, the proposed amendment is also consistent with the Bayside District Specific Plan Objective 3.28 which seeks to attract and accommodate a mix of uses that serve the daytime and evening Bayside District residents, City-wide residents, as well as the many visitors to the Santa Monica area; and 8 WHEREAS, the public health, safety, and general welfare the adoption of the proposed amendment in that the amendment would help preserve the City's economic and social welfare, protect the unique qualities and vitality of the Third Street Promenade by ensuring the best possible mix of restaurants, retail, and entertainment, and maintain the quality of residents' lives and the desirability of the Promenade and the City as a destination, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 9.04.08.15.020 is hereby amended to read as follows: 9.04.08.15.020 Permitted uses. (1 ) The following uses shall be permitted in the BSC-1 portion of the BSC District, provided that any such use shall obtain a use permit pursuant to Section 9.04.13.060 if its Third Street Promenade first-floor frontage exceeds fifty feet, and that the conversion of any portion of a food use in existence as of January 24, 2006 to any other new or expanded use located on the ground floor level adjacent to the Third Street Promenade shall obtain a conditional use permit pursu ant to Section 9.04.08.15.085. All uses shall be conducted within an enclosed building, except where otherwise specified: 9 (a) Art galleries. (b) Artist studios above the first floor and at the rear seventy-five feet of a parcel. (c) Bakeries. (d) Barber or beauty shops. (e) Business colleges. (f) Child day care centers. (g) Cleaners. (h) Congregate housing. (i) Cultural facilities. U) Dance studios. (k) Domestic violence shelters. (I) Exercise facilities. (m) General offices above the first floor and in the rear seventy-five feet of a parcel. (n) General retail. (0) Homeless shelters with less than fifty-five beds. 10 (p) Medical, dental and optometrist clinics and laboratories above the first floor and in the rear seventy-five feet of a parcel. (q) Multi-family dwelling units. (r) Museums. (s) Outdoor newsstands. (t) Pawnbrokers. (u) Photocopy shops. (v) Places of worship. (w) Restaurants, subject to the limitations contained in Section 9.04.08.15.080. (x) Senior group housing. (y) Senior housing. (z) Sidewalk cafes, subject to the provisions of the Outdoor Dining Standards for the Third Street Promenade, approved by resolution of the City Council, and subject to the limitations contained in Section 9.04.08.15.080. (aa) Single-room occupancy housing. 11 (bb) Tailors. (cc) Trade schools. (dd) Transitional housing. (ee) Accessory uses which are determined by the Zoning Administrator to be necessary and customarily associated with and appropriate, incidental, and subordinate to, the principal permitted uses and which are consistent and not more disturbing or disruptive than permitted uses. (ff) Other uses determined by the Zoning Administrator to be similar to those listed above and which are consistent and not more disturbing or disruptive than permitted uses. (2) The following uses shall be permitted in the BSC-2, BSC-3 and BSC-4 portions of the BSC District. All uses shall be conducted within an enclosed building, except where otherwise specified: (a) Art galleries. (b) Artist studios above the first floor. (c) Appliance repa ir shops. (d) Bakeries. 12 (e) Banks and savings and loan institutions. (f) Barber or beauty shops. (g) Business colleges. (h) Child day care centers. (i) Cleaners. U) Congregate housing. (k) Cultural facilities. (I) Dance studios. (m) Domestic violence shelters. (n) Exercise facilities. (0) General offices above the first floor and in the rear seventy-five feet of a parcel. (p) General retail. (q) Homeless shelters with less than fifty-five beds. (r) Laundromats. 13 (s) Medical, dental and optometrist clinics and laboratories above the first floor and in the rear fifty feet of a parcel. (t) Multi-family dwelling units. (u) Museums. (v) Outdoor newsstands. (w) Pawnbrokers. (x) Party equipment rentals. (y) Photocopy shops. (z) Places of worship. (a a) Restaurants, subject to the limitations contained in Section 9.04.08.15.080. (bb) Senior group housing. (cc) Senior housing. (dd) Single-room occupancy housing. (ee) Tailors. (ff) Theaters. 14 (gg) Trade schools. (hh) Transitional housing. (ii) Accessory uses which are determined by the Zoning Administrator to be necessary and customarily associated with and appropriate, incidental, and subordinate to, the principal permitted uses and which are consistent and not more disturbing or disruptive than permitted uses. Uj) Other uses determined by the Zoning Administrator to be similar to those listed above and which are consistent and not more disturbing or disruptive than permitted uses. 9.04.08.15.020 SECTION 2. Santa Monica Municipal Code Section 9.04.08.15.040 is hereby amended to read as follows: 9.04.08.15.040 Conditionally permitted uses. (1) The following uses may be permitted in the BSC-1 portion of the BSC District subject to the approval of a conditional use permit. Additionally, any use for which the Third Street Promenade first-floor frontage exceeds fifty feet shall obtain a use permit pursuant to Section 9.04.13.060, and the conversion of any portion of a food use in existence as of January 24, 2006 to any other new or expanded use 15 located on the ground floor level adjacent to the Third Street Promenade shall obtain a conditional use permit pursuant to Section 9.04.08.15.085: (A) Bars, subject to the limitations contained in Section 9.04.08.15.080; (B) Billiard parlors; (C) Bowling alleys; (D) Cinemas; (E) Clubs and lodges; (F) Convention and conference facilities; (G) Fast-food food courts, subject to the limitations contained in Section 9.04.08.15.080; (H) Homeless shelters with fifty-five beds or more; (I) Hotels and motels; (J) Nightclubs, subject to the limitations contained in Section 9.04.08.15.080; (K) Open-air farmers markets; (L) Skating rinks; 16 (M) Theaters. (2) The following uses may be permitted in the BSC-2, BSC-3 and BSC-4 portions of the BSC District, subject to the approval of a conditional use permit: (A) Automobile parking lots and structures; (B) Bars, subjectto the limitations contained in Section 9.04.08.15.080; (C) Billiard parlors; (D) Bowling alleys; (E) Cinemas; (F) Clubs and lodges; (G) Convention and conference facilities; (H) General offices uses on the ground floor in that portion of a parcel between twenty-five feet and seventy-five feet from the front parcel line; (I) Homeless shelters with fifty-five beds or more; (J) Hotels and motels; 17 (K) Nightclubs, subject to the limitations contained in Section 9.04.08.15.080; (L) Open-air farmers markets; (M) Skating rinks. (3) In addition to those uses specified in subsection (2) of this Section, the following uses may be permitted in the BSC-3 portion of the BSe District subject to the approval of a conditional use permit: Expansion or intensification of automobile repair facilities existing as of July 8, 1997 provided such property is physically improved to comply with the Bayside District special project design and development standards set forth in Section 9.04.08.15.070 and the special conditions for auto repair facilities set forth in Section 9.04.14.050. SECTION 3. Santa Monica Municipal Code Section 9.04.08.15.085 is hereby amended to read as follows: Section 9.04.08.15.085. Conversion of any portion of a food use to any other new or expanded use located on the ground floor level adjacent to the Third Street Promenade. 18 (a) Except as provided in subsection (b) of this Section, in the BSC-1 portion of the BSC District, the conversion of any portion of a food use in existence as of January 24,2006 to any other new or expanded use located on the ground floor level adjacent to the Third Street Promenade shall require a conditional use permit pursuant to Santa Monica Municipal Code Section Part 9.04.20.12 and one of the following additional findings being be made in the affirmative: (1) The proposed use would preserve the unique mixture of restaurants, retail and entertainment on the Third Street Promenade and maintain the vitality and diversity of the Promenade and the Bayside District; or, (2) The strict application of the provisions of this Section would, due to unique site conditions or special circumstances, result in practical difficulties or unnecessary hardships, not including economic hardships or economic difficulties, for the business or property owner. (b) Except as provided in subsection (c) of this Section, a conditional use permit shall not be required if a portion of the food use is retained in accordance with the following criteria: 19 (1) The minimum width of the retained food use shall be at least 1/2 of the existing restaurant frontage and 2/3 of existing outdoor dining frontage, but no less than sixteen feet, and the minimum depth of the retained food use shall be no less than 75 feet at any point as measured from the front property line. (2) Any outdoor dining area associated with the food use shall be retained or reconfigured with the same or greater square footage. (3) If the outdoor dining area is reconfigured, it may be recessed into a portion of the building which shall remain open to the Promenade during the establishment's hours of operation provided the recessed depth does not exceed 20 feet, subject to review and approval of the Architectural Review Board. In its review, the Architectural Review Board must find that the proposal is compatible with improvements on the subject and immediately adjacent properties and that the design has the appearance and function of an easily accessible outdoor dining area that reinforces the Promenade's pedestrian oriented environment, encourages public interaction between the outdoor dining area and the street, and provides visibility to the outdoor dining area. The Architectural Review Board may restrict the recessed depth 20 of the outdoor dining area into the building and require fagade modifications in order to make these finding determinations. (4) On corner lots, the retained food use must also be located adjacent to the public right of way intersecting the Third Street Promenade. (c) The conversion of any portion of a fast-food court in existence as of January 24, 2006 to a new or expanded retail use, or other non-food use, shall require, without exception, a Conditional Use Permit pursuant to subsection (a) of this Section. (d) Reconfiguration of a food use in accordance with subsection (b) of this Section shall be considered a minor modification to any existing conditional use permit governing a food use operation on the Third Street Promenade provided the primary activity of the establishment remains a restaurant with sit down dining. SECTION 4. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of $uch inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. 21 SECTION 5. 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 6. 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. 22 Approved and adopted this 25th day of July, 2006. ~i Ii' 4 " h " . <,. < , ...."..- ,/ ,. ~,~,~ /~~ . Robert T. Holbrook, 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. 2198 (CCS) had its introduction on July 11, 2006, and was adopted at the Santa Monica City Council meeting held on July 25, 2006, by the following vote: Ayes: Council members: Bloom, Katz, McKeown, O'Connor, Mayor Pro Tem Shriver, Mayor Holbrook Noes: Council members: None Abstain: Council members: None Absent: Council members: Genser ATTEST: \~~~~