ITEM 8-A

Council Mtg:  July 24, 1990

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Recommendation  to  Introduce  for  First  Reading   an
          Ordinance  to  Adopt  a Development Agreement to Permit
          the Construction of a Four Story Office  Building  with
          Ground   Floor   Retail   and   Restaurant  Uses.   The
          Development Agreement  Permits  a  Maximum  Floor  Area
          Ratio  of  2.4  on a 34,200 Square Foot Site Located at
          1733 Ocean Avenue.  Applicant: Maguire Thomas Partners

INTRODUCTION

This report recommends that the City Council introduce for  first
reading  an  ordinance  adopting  a  Development Agreement for an
office building with ground floor retail and restaurant  uses  to
be  located  at 1733 Ocean Avenue.  The ordinance is contained in
Attachment F.   As proposed, the Development Agreement permits  a
four  story structure with a Floor Area Ratio (FAR) not to exceed
2.4.  The Planning Commission certified the  Final  Environmental
Impact  Report  (EIR) prepared for this project, as well as for a
175 room hotel proposed by the same applicant  for  the  site  at
1746  Ocean  Avenue,  in  June,  1989.   The  City  Council  also
certified the EIR when the hotel project was heard on  appeal  in
August, 1989.

BACKGROUND

In November, 1987 the applicant submitted  a  Development  Review
application  for  the  construction of a six story, 88,500 square
foot office project  on  the  subject  property.   Following  the
preparation  and completion of the EIR for this project, the City
initiated the preparation of a Civic Center Specific Plan for the
area  bounded  by  Pico Boulevard, Ocean Avenue, the Santa Monica
Freeway, and Fourth Street.  In order to  permit  Maguire  Thomas
Partners  to proceed with a project which was "grandfathered" for
processing  purposes  under  Ordinance  1441  (CCS)  due  to  its
submittal prior to April 28, 1988 and, therefore, governed by the
development standards set forth in the Land Use Element  and  the
former  zoning  ordinance,  the  City  entered  into  Development
Agreement negotiations in Spring, 1989.

In June 1989  the  Planning  Commission  reviewed  a  Development
Agreement   that  presented  four  potential  scenarios  for  the
proposed retail/restaurant/office project.  One option  permitted
the  construction of a five story structure not to exceed 70 feet
in height with a maximum FAR of 2.4 if an approved or draft Civic
Center  Specific Plan released by July, 1990 allowed this density
of development.  A second option permitted a five story  70  foot
structure  with  a  2.4 FAR by right if the Specific Plan was not
prepared by July 1990.  A third option permitted the construction
of  a  six story structure not to exceed 84 feet in height with a
maximum FAR of 2.6 if an approved or draft Civic Center  Specific
Plan  released  by July, 1990 allowed this amount of development.
The fourth option involved provisions for negotiating to relocate
the  project site within the Civic Center Specific Plan Area.  If
the City and the applicant agreed to a relocation site,  the  six
story  option  would  be  permitted.   However,  if the applicant
rejected the relocation site without just cause, the  development
would  be limited to a four story structure with a maximum FAR of
2.0.

Following the Planning Commission's  review  of  the  Development
Agreement,  it was determined that a General Plan Amendment would
be required to allow the construction of a project greater than 4
stories/56   feet  in  the  Oceanfront/Rand  Land  Use  District.
Therefore, the Planning Commission recommended that,  until  such
an   amendment   were  approved,  the  City  Council  consider  a
Development Agreement that permits the construction  of  building
not to exceed 4 stories/56 feet in height.

The applicant has elected not to  proceed  with  a  General  Plan
Amendment  and,  instead,  is  seeking  approval of a Development
Agreement that permits the construction of a  4  story,  56  foot
high  building  with  a  2.4 FAR.  As explained in greater detail
below,  the  Agreement  does  provide  the  applicant  with   the
opportunity  to  request  that  the  Planning  Commission approve
modifications to the building height only if a Draft Civic Center
Specific  Plan  is released that permits structures taller than 4
stories or if the General Plan  is  amended  to  allow  buildings
taller than 4 stories in the Civic Center area.

PROJECT DESCRIPTION

The subject property is a 34,200 square foot  parcel  located  on
the east side of Ocean Avenue between Pico Boulevard and Colorado
Avenue having a frontage of 228  feet.   The  site  is  currently
occupied  by  the Flamingo Hotel and is surrounded by a two story
commercial building to the north, a surface parking lot and the 8
story Pacific Shores Hotel at Pico and Ocean Avenue to the south,
a surface parking lot to the east, and the five story Loews Hotel
as  well  as  the  construction site of the applicant's six story
hotel to the west.

The proposed project consists of  a  four  story,  56  foot  high
structure  as  measured  from  the  average grade along the Ocean
Avenue frontage.  The ground floor is  composed  of  8040  square
feet  of  retail  space,  5983  square  feet  of restaurant space
including both seating and support area, and 3872 square feet  of
office  space.  Under the Development Agreement, the ground floor
office space is not permitted along the  Ocean  Avenue  frontage.
The  remainder  of the building consists of 20,881 square feet of
office space on the second floor, 19,279 square  feet  of  office
space  on the third floor, and 14,298 square feet of office space
on the fourth floor.

Parking for the project must be provided at a ratio of one  space
per  300  square  feet  of  office space and retail space and one
space per each five seats of restaurant seating capacity.   Based
on  these standards, the project provides 280 parking spaces.  As
permitted by the Development Agreement, the applicant may include
up  to  20%  of the total space as tandem stalls and up to 40% of
the total spaces as compact size stalls.  This is consistent with
the  current Zoning Ordinance which allows, by right, that 40% of
the total stalls provided be compact.   With  a  Reduced  Parking
Permit,  developments that require 250 parking spaces or more may
have 20% of the total parking as tandem spaces provided  that  an
attendant   is  on  duty  during  all  hours  of  the  building's
operation.

The proposed project is consistent with the  Municipal  Code  and
the  General  Plan  as  shown  in  Attachment  A.   Further, as a
Development  Agreement,  specific   development   standards   are
established  that  go  beyond  those  required  of other, similar
projects.

ENVIRONMENTAL IMPACT REPORT CERTIFICATION

An Environmental Impact Report was prepared for both the  subject
project  and  for  the  hotel  development  proposed  by the same
applicant for the  site  at  1746  Ocean  Avenue.   The  Planning
Commission  approved  the hotel development and certified the EIR
that analyzed both development  projects  in  June,  1989.   This
approval and certification were subsequently appealed to the City
Council.  The City Council upheld the certification of the EIR by
a  4-1  vote  and  sustained the approval of the project by a 3-2
vote.  The Council minutes are contained in  Attachment  B.   The
Resolution  certifying the EIR is contained in Attachment C.  The
Notice of Determination on the EIR is contained in Attachment D.

The EIR analyzed a number of areas of  potential  project-related
impacts   including:    land   use,  light  and  glare,  shadows,
aesthetics, utilities,  traffic  and  circulation,  parking,  and
neighborhood  effects.   In  addition, the EIR was based on a six
story, 88,500 square foot office project, providing ground  floor
retail  and  restaurant  uses,  with  a  2.6  FAR.   The document
concluded that the project would  not  generate  any  significant
adverse  environmental  impacts that could not be mitigated.  The
recommended mitigation measures have been incorporated  into  the
Development  Agreement.   In  that  the  project  now  before the
Council has been reduced to a  four  story,  72,353  square  foot
structure  with a 2.12 FAR, that the Development Agreement limits
the project to a maximum FAR of 2.4,  and  that  the  retail  and
restaurant   square  footage  and  restaurant  seating  have  not
increased,  Planning  staff  believes  that  the  EIR  adequately
assesses   potential   project   related  impacts  and  that  the
recommended mitigation measures are still appropriate.

DEVELOPMENT AGREEMENT

Civic Center Specific Plan

It is currently anticipated that the Civic Center  Specific  Plan
will  be  sufficiently  complete by January 2, 1990 to enable the
City to review the subject project and determine its  consistency
with  the  Specific  Plan.   If  the  Plan is released for public
review by this "Target Date" then the  developer  will  have  the
opportunity  to  request  certain  modifications  to the project,
provided such modifications are consistent with the  Draft  Civic
Center  Specific  Plan.   The  Planning  Commission will have the
jurisdiction to review  and  approve  these  modifications.   For
example,  if  the  Specific  Plan  permits,  the  developer could
request approval of a fifth story  and  the  Planning  Commission
would  determine  if this change is appropriate.  If the Specific
Plan is not  released  by  the  Target  Date,  the  developer  is
permitted  to proceed to obtain permits for the four story office
building.

Project Design

As set forth in the  Development  Agreement,  the  project  shall
incorporate  a minimum 20 foot front yard setback along the Ocean
Avenue frontage.  However, if certain requirements are  met,  the
developer  shall  provide  a 35 foot setback.  These requirements
stipulate that the City must vacate the 20 foot wide First  Court
Alley by the Target Date.  The vacation will enable the developer
to utilize 15 feet of the alley to construct the  project.   This
will  result  in  a  wider  Ocean Avenue setback which, through a
recorded Agreement, will become a public access  easement.    The
developer   will  remain  owner  of  the  easement  and  will  be
responsible for its maintenance.

The project design is consistent with  Land  Use  Element  policy
3.5.1  which  encourages the use of balconies and terraces in the
Oceanfront area  in  that  the  project  includes  balconies  and
terraces  at  each  level  and along all building elevations.  An
open arcade is located across the ground floor of both  the  west
(Ocean  Avenue)  and east facing elevations.  The building design
is dominated by four, irregularly placed, tower elements  located
at  each  building  corner.   Balconies  are  provided at various
points at the second and third floors.  The fourth floor  is  the
smallest  level,  with  the most substantial use of set backs and
large terraces.  The use of balconies, terraces,  and  set  backs
enhances    the   overall   design,   increases   the   project's
articulation, and balances the building's massing.

East/West Street Dedication

The City has been considering the construction  of  an  east/west
street  through  a  portion  of  the  developer's  property.  The
developer, therefore, may be required to dedicate to the City  an
area  not to exceed 28 feet in width along either the northern or
southern property lines.  The City must notify  the  developer  a
minimum  of  six  weeks prior to the Target Date whether a street
dedication will be  required  and  along  which  portion  of  the
property.   If  the  City  fails to notify the developer then the
developer shall automatically place the street dedication area as
well  as  the  parking garage access, along the southern property
line.

Project Modifications

The Development Agreement establishes  procedures  by  which  the
developer  may  modify  certain  aspects  of  the  project.  Upon
approval of the Planning Commission, the  developer  may  request
additional  building  height  if,  prior  to  receipt of building
permits,  either  the  Land  Use  Element  is  amended  to  allow
buildings  taller  than four stories in the Civic Center area, or
if the final Civic Center  Specific  Plan  adopted  by  the  City
Council  allows  structures  taller than four stories in the plan
area.

The Development  Agreement  does  not  permit  the  developer  to
increase the project FAR to over 2.4 or change the permitted uses
and square footage allocations.  In  addition,  the  City  cannot
require  the  developer to reduce the project FAR to below 2.4 or
reduce the project height to below 56 feet.  However, issues such
as building set backs, massing, or parking access may be modified
by the Planning Commission within certain parameters.

BUDGET/FINANCIAL IMPACT

The recommendation presented in  this  report  has  a  beneficial
budget  impact  in  that  a  $250,000 fee is required to pay this
development's  share  of  beachfront  and   Civic   Center   area
improvements.   The  purpose  of  this new fund is to enhance the
beach area and provide social services in the Civic Center  area.
These improvements will benefit the community at large as well as
the developer.

RECOMMENDATION

It is respectfully recommended that  the  Council  introduce  for
first reading an ordinance adopting the Development Agreement.

FINDINGS

1.     The  Development  Agreement   is   consistent   with   the
       objectives,  policies,  general  land  uses  and  programs
       specified in the General Plan and any applicable  specific
       plan  in  that  Land  Use  Element  Policy  1.5.6  permits
       projects of 4 stories/56 feet with a Floor Area  Ratio  of
       up  to  3.0 in the Oceanfront/Rand Land Use District while
       the proposed project is 4 stories/56  feet  with  a  Floor
       Area  Ratio  not  to exceed 2.4, and that increases in the
       project height will be permitted only  if  a  Draft  Civic
       Center  Specific  Plan,  currently  in  preparation, or an
       amended Land Use Element  permits  buildings  taller  than
       four  stories.   In addition, the design of the project is
       consistent with Land Use Element policies 3.5.1 and  3.5.2
       which  encourage  the  inclusion  of  terraces  for  ocean
       viewing and encourage the extension of  east-west  streets
       to  improve  coastal  access  in that the project includes
       numerous balconies and terraces at each  level  and  along
       all   building   elevations  and  that  the  project  will
       facilitate the addition of an east-west right-of-way along
       one  side  of  the  project site.  Further, the project is
       consistent with Circulation  Element  policy  4.3.7  which
       requires that new driveways and mid block access points be
       limited in that the  primary ingress  and  egress  to  the
       project's  subterranean  garage  will  be  from either the
       east-west street or from the alley.

2.     The Development Agreement  is  compatible  with  the  uses
       authorized  in  the district in which the real property is
       located in that  the  Oceanfront/Rand  Land  Use  District
       permits   visitor   serving   uses,  such  as  retail  and
       restaurants, as well as office development, encourages the
       inclusion   of  uses  that  will  promote  day  and  night
       pedestrian activity, and encourages  development  projects
       that  incorporate  terraces and balconies into the project
       design.  In addition, the Development Agreement allows the
       project  to  be  integrated into the Civic Center Specific
       Plan currently in preparation in that it provides the City
       with opportunity to review modifications to the project as
       currently proposed and approve those changes only if  they
       are found to be consistent with the Specific Plan.

3.     The Development Agreement is in conformity with the public
       necessity,  public  convenience, general welfare, and good
       land use practices in that it insures that the project  is
       consistent with the Land Use and Circulation Element, that
       any modifications will be consistent with the Civic Center
       Specific  Plan,  currently  in  preparation  and  that the
       proposed project will be required to mitigate all  traffic
       and  circulation  impacts  that have been identified to be
       significant  in  the  Environmental  Impact  Report.   All
       recommended  mitigation  measures  have  been incorporated
       into the Development Agreement.

4.     The Development Agreement will not be detrimental  to  the
       health,  safety and general welfare in that the project is
       proposed to be an in-fill of  an  already  developed  area
       with    all    necessary   services   and   infrastructure
       preestablished.

5.     The Development Agreement will not  adversely  affect  the
       orderly  development  of  the property in that it has been
       prepared with consideration  to  the  integration  of  the
       project  in the overall plan for the area and that changes
       to the project, which is already consistent with the  Land
       Use  Element,  may  be  permitted  only  if  found  to  be
       consistent with the Civic Center Specific Plan.

6.     The Development Agreement  will  have  a  positive  fiscal
       impact on the City in that, according to the Environmental
       Impact Report prepared for the  project,  the  development
       will  generate  a  yearly  net  revenue  of  approximately
       $35,000,  and  that,  as  stipulated  in  the  Development
       Agreement,  the  developer  will  contribute $250,000 to a
       special Civic Center and Ocean front improvement fund.

Prepared by:  Paul Berlant, Director of Planning
              Suzanne Frick, Principal Planner
              Amanda Schachter, Associate Planner
              Planning Division
              Community and Economic Development Department

Attachments:  A.  Municipal Code and General Plan Conformance
              B.  City Council Minutes, 8-22-90
              C.  Resolution Certifying the EIR
              D.  Notice of Determination on the EIR
              E.  Development Agreement
              F.  Ordinance Adopting the Development Agreement
              G.  Project Plans

NOTE:  Attachments B and D through G are not  available  on  PEN,
but may be obtained from the City Clerk's office.


                          ATTACHMENT A

           MUNICIPAL CODE AND GENERAL PLAN CONFORMANCE

Category           Municipal Code    Land Use    Project
                                     Element

Permitted Use      CA:  Permits      Oceanfront  Office/Retail
                   Office, Retail    Rand:       Restaurant
                   & Restaurant      Permits     Development
                   Uses              Office Uses
                                     Visitor
                                     Serving
                                     Uses

Height             6 Stories/90'     4 Stories/  4 Stories/56'
                                     56'

Setbacks

  Frontyard        20'               N/A         35'

  Sideyard         None Required     N/A         North Side:
                                                   5'
                                                 South Side
                                                      28"    from
                                                 existing
                                                 property line to
                                                 accommodate
                                                 proposed     new
                                                 right of way

  Rearyard         None Required     N/A         5'

F.A.R.             3.3               3.0         2.12
                                                 Not to exceed
                                                 2.4

Parking            Office: 58,330 sq.ft.         Conventional:
                   1/300 sq.ft.=                   179 Spaces
                     195 spaces                  Tandem:
                   Retail: 8040 sq.ft.             107 Spaces
                   1/300 sq.ft.=
                     27 spaces
                   Restaurant: 250 seats
                   1/5 seats=
                     50 spaces
                   Support: 2266 sq.ft.
                   1/300 sq.ft.=
                     8 spaces
                   Total = 280 spaces

Loading Spaces     2 Spaces


                          ATTACHMENT C

                         RESOLUTION NO.

                      (City Council Series)

                A RESOLUTION OF THE CITY COUNCIL
                   OF THE CITY OF SANTA MONICA
        CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT
            ON THE 1733 OCEAN AVENUE OFFICE BUILDING
                 AND THE 1746 OCEAN AVENUE HOTEL

     WHEREAS, a Notice of Preparation of an Environmental  Impact
Report was issued in February, 1988; and

     WHEREAS, a Notice of Completion  of  a  Draft  Environmental
Impact  Report  was published in August, 1988, in compliance with
the California Environmental Quality Act and the  City  of  Santa
Monica CEQA Guidelines; and

     WHEREAS, in February, 1989, the Final  Environmental  Impact
Report was published; and

     WHEREAS, on August 22, 1989 the City Council, as  Lead  City
Agency, reviewed the Final Environmental Impact Report,

     NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY RESOLVE AS FOLLOWS:

     SECTION 1.  The City Council has reviewed and considered the
Final Environmental Impact Report on the 1733 Ocean Avenue Office
Building and the 1746 Ocean Avenue Hotel prior to acting  on  the
project.

     SECTION  2.    The   City   Council   certifies   that   the
environmental  review  for  the  project  was  conducted  in full
compliance with State and City CEQA Guidelines,  that  there  was
adequate  public review of the Draft Environmental Impact Report,
that it has considered all comments on  the  Draft  Environmental
Impact   Report   and  responses  to  comments,  that  the  Final
Environmental Impact Report adequately discusses all  significant
environmental  issues,  and that the  City Council has considered
the contents of the Final  Environmental  Impact  Report  in  its
decision-making process.

     SECTION 3.  The City Clerk shall certify to the adoption  of
this Resolution, and thenceforth and thereafter the same shall be
in full force and effect.

APPROVED AS TO FORM:

________________________
ROBERT M. MYERS
City Attorney