ITEM 7-B

Council Mtg:  November 17, 1992

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Appeal of Planning Commission Interpretation of Section
          9044.3(e) Regarding Parking Requirements for Changes of
          Use

          Appellant:  Mayor Ken Genser

Introduction

This report sets forth  an  interpretation  of  Zoning  Ordinance
Section  9044.3(e)  regarding parking requirements for changes of
use.  Essentially, the interpretation relates  to  the  following
question:   In  situations  where an existing building which does
not have adequate parking  under  the  present  Zoning  Ordinance
undergoes  a change of use, when must the property owner increase
the amount of parking to meet the standards of the present Zoning
Ordinance for the entire property?

The  interpretation  has  broad  application  to  a  variety   of
situations,  but  was  specifically  generated  in relation to an
Administrative Approval and Occupancy Permit for  1620  Broadway.
The  interpretation  affects  numerous  changes  in land use, and
adoption of a  contrary  interpretation  would  have  significant
effects on numerous land uses, including residential uses.

The Zoning Administrator and the City Attorney's  Office  do  not
concur  in  how  Section  9044.3(e)  of  the  ordinance should be
interpreted; action on this interpretation is intended to provide
resolution  of  the matter.  The Attorney's Office provided their
own interpretation of the  section  to  the  Planning  Commission
which is attached to this report.

The  Planning  Commission   concurred   with   Planning   staff's
interpretation  of  the  section  by  a four to two vote with one
Commissioner absent; the Commission's action has been appealed to
the Council.

Appeal Issues

In making the appeal, the appellant indicated  that  he  believed
that  "The interpretation of the Zoning Administrator is contrary
to the applicable provisions of the Municipal Code."  A  detailed
explanation  of  this  contention  was not provided on the appeal
form.  However, at the Planning Commission hearing on the matter,
the  appellant  indicated  that he supported the reasoning of the
City Attorney as set forth in an August 12, 1992 memorandum  (see
attached).  These issues are addressed below.

Background

Section 9044.3(e) is part of the introductory provisions of  that
section   of  the  Zoning  Ordinance  which  sets  forth  parking
requirements.   The  section   establishes   when   the   parking
requirements of the ordinance apply to buildings if the buildings
were developed under different parking standards and  when  there
is a change of use.  The section states as follows:

       (e) For any new use of an existing building  or  structure
       such that the new use will require parking spaces, parking
       spaces in the number specified in Section 9044.4 shall  be
       provided for the entire parcel.

A copy of the Section is included as Exhibit A.

Zoning  Administration  staff  believes  that  there  is  wording
missing  from  this  section.   Specifically,  staff believes the
section was intended to read  "...such  that  the  new  use  will
require  more  parking  spaces,  parking  spaces  in  the  number
specified in Section 9044.4 shall  be  provided  for  the  entire
parcel."  [wording  in  bold  added], and that the section is not
logical unless it is interpreted that such a policy was intended.

This interpretation has long standing in the Planning and  Zoning
Division.   In  December 1988, shortly after the Zoning Ordinance
became effective, the  Principal  Planner  for  current  planning
issued  a  written statement to the current planning staff of how
this section  should  be  interpreted  (see  Exhibit  B).    This
interpretation  has  been  employed  since  that time in numerous
situations.  Although this interpretation does not have the  same
legal  status  as  one filed with the Planning Commission, it has
been consistently applied  by  the  Planning  staff  in  numerous
situations,  and is also consistent with prior practice under the
previous Zoning Ordinance, and  with  common  practice  in  other
jurisdictions.   Staff  believes  that the consistent practice in
interpreting this section should be given weight by the Council.

The 1988 interpretation was based on the premise that the section
was  intended  to apply to cases where the change in use resulted
in a higher parking requirement (such as a  change  in  use  from
retail  to  restaurant).  A copy of the memorandum containing the
interpretation was provided to the City Attorney's Office in 1988
for their information, at which time no response was given.

Zoning Administration staff believes  that  the  section  is  not
complete  unless  it applies in situations when there is a change
of use which results in a higher parking  requirement.   If  read
without this intent, the section language is redundant.  All uses
require parking spaces  under  the  Zoning  Ordinance,  thus  the
phrase  "...such that the new use will require parking spaces..."
is unnecessary if the intent was to require a parking upgrade for
any  change  of  use  where existing parking is inadequate.  This
language would not be redundant if the intent  is  understood  as
recommended  in  this  interpretation.   The appellant has argued
that since the Zoning Ordinance does not require parking  in  the
Downtown Parking Assessment District, there are uses which do not
require parking, and  therefore  staff's  reasoning  is  invalid.
This  arguement  is  flawed  for two reasons:  first, there is no
parking exemption for the Downtown  Assessment  District  in  the
Zoning Ordinance (the provisions of the District are expressed in
a separate ordinance), and second, parking  is  required  in  the
Assessment  District--but  the Parking Authority, rather than the
property owner, is required to provide adequate parking.

The fact that parking spaces are required for any given use would
not  seem  to  be  critical  in determining when an entire parcel
should be brought up to present-day parking  standards.   Such  a
requirement  would  be  substantial  in  the case of the numerous
(probably hundreds) of properties which do not  provide  as  many
parking spaces as would be required for new development under the
present Zoning Ordinance.   If  one  suite  in  a  building  with
inadequate  parking  changed  tenants to a different use, parking
for the entire site would have to be upgraded, regardless if  the
parking  intensity  as  measured  by  the Zoning Ordinance is not
changing.

Zoning Administration staff  believes  that  the  intent  of  the
section  was  that  parking  requirements  should change when the
intensity of the use (as measured by parking  standards  for  the
old  use versus the new use) increases, and that the objective of
the  requirement  was  to  discourage  changes   of   use   which
exacerbated  parking  problems  (such  as  conversion of a retail
space to a restaurant).  At the time  the  section  was  written,
this was of particular concern on Montana Avenue and Main Street.
The penalty for such a change of use (which  intensifies  parking
demand)  is  that parking for the entire site must be upgraded to
current  standards,  which  in  the  case   of   numerous   older
properties, would effectively preclude such a change of use since
land for added parking spaces would not be available.

Supporting the interpretation that the  section  is  intended  to
apply  to  situations where the change of use results in a higher
parking requirement is the wording of Section 9044.2.,  which  is
the   "Applicability"   section   of   the   Off-Street   Parking
requirements, preceding Section 9044.3(e).  This section states:

       Every use or change of use resulting in a  higher  parking
       requirement...shall    provide    permanently   maintained
       off-street parking areas pursuant  to  the  provisions  of
       this Subchapter. [Emphasis added]

This section, which immediately precedes the section in question,
clearly  establishes  the  principle  that  changes  of use which
result in a higher parking requirement must meet current  parking
requirements,  and  not  that any change of use results in such a
requirement.

Adding further weight to the interpretation is the non-conforming
use  Section  9080.4(d)(3),  relating  to when commercial parking
lots on residential land may remain.  This section states in part
as follows:

       ...For purposes of this requirement, a change of use shall
       be  defined  as  any  new  use which requires more intense
       parking standards than exists on  the  effective  date  of
       this Chapter.

This  section  again  sets  forth  the  concept  of  requirements
applying  when  the  change  of use involves more intense parking
standards, as recommended  in  this  memorandum.   City  Attorney
staff  have  correctly stated that this section is independent of
Section 9044.3(e), but Planning staff believes that  the  concept
of  this  section  is  directly  pertinent  to the interpretation
before the Council.

Staff  reviewed  various  drafts  of  the  Zoning  Ordinance   as
background  to  this  interpretation.  In the Second Draft of the
ordinance, the section read as follows:

       For any new  business  that  intensifies  the  use  of  an
       existing  building  or  structure,  parking  spaces in the
       number specified in Section 9044.4 shall be  provided  for
       the entire parcel.

It is unclear what the word "intensifies" in this version means.

In the Third Draft of the ordinance issued in January  1987,  the
Applicability  section  wording  is  identical to that ultimately
adopted.  However, the wording of subsection (e) is as follows:

       For any new  business  that  intensifies  the  use  of  an
       existing  building or structure such that the new use will
       require additional parking  under  this  section.  parking
       spaces  in the number specified in Section 9044.4 shall be
       provided for the entire parcel.

Without the language which was lined  out,  the  wording  of  the
section is incomplete, and clearly the section did not make sense
and needed revision.

In the Fourth Draft of the ordinance, the section read:

       For any new use of an existing building or structure  such
       that the new use will require parking spaces in the number
       specified in Section 9044.4  shall  be  provided  for  the
       entire parcel.

This section also is  incomplete  and  does  not  make  sense  as
written.

By  the  time  the  Fifth  Draft  of  the  Zoning  Ordinance  was
developed,  the wording of the section had evolved to the adopted
language.  Zoning  Administration  staff  believes  that  in  the
process  of  refining  the  language  of  the  section, the final
wording did not adequately express  the  City  Council's  intent,
which  was  to  apply the requirement when the new use had higher
parking requirements.

An  alternate  interpretation   would   be   that   the   Council
deliberately  adopted  the  language  in  question,  and that the
legislative history illustrates their  intent.   However,  Zoning
Administration  staff believes that this section needs to be read
in conjunction with the other sections  of  code  cited  in  this
memorandum (the "Applicability" section, and the "Non-conforming"
section), as well  as  with  an  understanding  of  the  planning
principles  which  motivate  the  section,  and when this kind of
broad  view  of  the  section  is   taken,   the   most   logical
interpretation is that the section applies when the change of use
involves a new use with higher parking requirements.

A contrary interpretation of this section to that offered by  the
Zoning  Administration staff would have significant implications.
As applied currently, changes of  use  involving  permitted  uses
which  have  identical  parking  requirements  as compared to the
former use do not trigger the requirement that the entire  parcel
be  brought  up  to  current  parking  requirements.   This seems
appropriate, since the  parking  intensity  of  activity  on  the
parcel would not change, as measured by code requirements.

For example, under Zoning Administration staff's  interpretation,
a  change  of  use  in  one  suite  of  a  building  from  office
(requirement of 1 space/300 sq. ft.  of  floor  area)  to  retail
(also  1/300  requirement) would not trigger upgrading of parking
for the entire parcel.  Likewise, a change of use from industrial
to  art  gallery  space  would not trigger the requirement, since
both uses have the same 1/300 parking standard.

Under the Zoning Administrator interpretation, a change of use to
a  business  with  a  higher  parking  standard (for example from
retail at 1/300 to restaurant at 1/75) would trigger the upgrade.
The  City Attorney would apply the parking upgrade requirement to
any change of use at a site where there  is  inadequate  parking.
This  would penalize changes of use which actually reduce parking
demand, for example, a change of use from bar use  (at  1/50)  to
restaurant  use  (at  1/75),  requiring upgrade of parking on the
entire parcel when parking demand is decreasing,  and  in  effect
discouraging  such  a  de-intensification  of  use.   This  seems
contrary to general planning principles and the objectives of the
Zoning  Ordinance.   If  adopted as an interpretation, this would
likely  force  the  maintenance  of  higher-intensity  uses,  the
redevelopment of the property and the removal of older buildings,
or the need to apply for a parking variance.

The interpretation of this section  likely  affects  hundreds  of
properties  in  Santa  Monica, since most existing buildings were
not  developed  under  current  parking  standards,  and  in  the
non-residential zones, a multiplicity of uses are permitted.  The
range of situations affected would depend upon the meaning  given
to  "change  of  use."   If the "change of use" term is no longer
interpreted on the basis of parking intensity, an  interpretation
would  be  needed  as  to  what types of changes were "changes of
use."  For example, changes  of  use  could  include  such  broad
categories  as  "commercial", "residential", and "industrial", or
there could  be  finer-grained  distinctions  such  as  "retail",
"office",      "restaurant",     "single-family     residential",
"multi-family residential", etc.

If a broad interpretation of "change of use"  were  adopted,  the
section would fail to apply to a change of use involving a change
from retail to restaurant, since both are "commercial" uses.   In
that  particular  example,  this would facilitate the change to a
more  parking-intense  use,  which  Zoning  Administration  staff
believes is contrary to the section's intent.  If a finer-grained
approach to defining "change of use" is employed, and if one 1000
sq.  ft.  suite  in a 50,000 sq. ft. building not meeting current
parking standards changed from an office to a store, parking  for
the entire parcel would have to be upgraded to current standards,
even though the change of use would not change parking demand, as
established  by  the  Zoning  Ordinance.   This  would seem to be
contrary to the general principle of "grandparenting"  since  the
parking  demand  of  the  new  use is the same as the former use,
resulting in no change in the parking needs at the site.

Related  to  the  issue  is  how  Subchapter  9,   "Nonconforming
Buildings  and  Uses" of the Zoning Ordinance interacts with this
interpretation.  Section 9080.3 of the Ordinance defines  "legal,
nonconforming" uses, and subsection (b) of that section indicates
that:

       If a legal,  nonconforming  use  ceases  operation  for  a
       continuous  period  of  six months or more, that use shall
       lose its legal, nonconforming status, and the premises  on
       which  the conforming use took place shall from then on be
       used for conforming uses only...

The appellant and City Attorney staff have  indicated  that  they
believe this section requires a parking upgrade if a use within a
building with inadequate parking spaces is ceased for six  months
or  more.  Planning staff does not concur, and believes that this
section governs uses, and not the physical elements of buildings,
such  as  parking,  floor  area, or setbacks.  There are separate
sections, in  some  cases  with  timelines  for  compliance  with
current   standards,  governing  nonconforming  buildings.   This
section has never been interpreted by Planning staff  to  require
buildings  which  have  been empty for six months or more to meet
current  physical  development  standards  (i.e.,  a  residential
building  with  sideyards  one foot short of current requirements
having to be demolished or remodeled to  meet  current  standards
where such building has been unoccupied for six months or more).

Following  through  with  the  appellant's  and  City  Attorney's
interpretation    would   result   in   potentially   devastating
consequences to all types of land uses  in  the  City,  including
housing.   For  example,  a single family home with less than two
parking spaces which was unoccupied for six months or more  could
not be reoccupied without current code parking being provided, or
an apartment in a residential building  with  inadequate  parking
which  was  empty  for  six  months or more could not be occupied
unless code parking was provided for the building.  Similarly, if
a  retail space in a building lacking full code parking was empty
for six months or more, the space could  not  be  leased  to  any
business  unless  code parking were provided.   Particularly in a
difficult economy, it is not unusual  for  residential  or  other
types of properties to be unoccupied for six months or more while
an appropriate  buyer  or  tenant  is  sought.   The  results  of
following  the  City Attorney's and appellant's interpretation on
this issue would likely reduce the  availability  of  housing  as
well  as places where business could be conducted, in addition to
having  significant  adverse  impacts  on  property  owners,  and
potentially  the  City itself through reductions in revenues from
utility taxes, business license  fees,  sales  taxes,  and  other
sources.   Planning  staff  believes that these outcomes would be
undesirable, are not consistent with the overall  intent  of  the
Zoning Ordinance, and that the interpretation which would lead to
these consequences is inconsistent with the  specific  provisions
of the ordinance.

In discussion of this  issue  at  the  Planning  Commission,  the
appellant  indicated  that  someone in this situation could apply
for a variance from having to provide full code parking in  these
types  of  situations.   However,  the variance process typically
takes two to three months to complete (assuming no appeal,  which
would add two to three additional months to the process), and can
entail not insignificant expense (for the filing fee, preparation
of  notification lists, and in some cases legal and architectural
services).  Finally, employing the interpretation adopted by  the
Planning  Commission  would  eliminate  the  need  for  any  such
variance.

Council Authority

Under  Section  9100.3  of  the  Zoning  Ordinance,  the   Zoning
Administrator may file a written interpretation with the Planning
Commission.  The interpretation becomes effective  14  days  from
the  date  the  item  appears  on  the Commission's agenda unless
changed by the Commission by its own action or  on  appeal.   Any
person  may,  within the 14 day period, appeal the interpretation
to the Commission.  If such appeal is filed, it is required to be
heard   within   60  days.   Any  action  of  the  Commission  on
interpretations may be appealed to the  City  Council.   In  this
case,  an  appeal has been filed and a final determination on the
interpretation may be made by the City Council.

Budget/Financial Impact

The recommendation of  this  report  would  not  have  budget  or
financial  impacts.   A contrary conclusion could have an unknown
financial impact on the  City  by  making  unuseable,  except  at
considerable expense, buildings which do not meet current parking
standards.

Recommendation

It is respectfully recommended that the City Council  reject  the
appeal,  and  adopt the Planning Commission's interpretation that
Section 9044.3(e) applies when the change of use involves  a  new
use with a higher parking requirement than the former use.

Prepared by:  Paul V. Berlant, LUTM Director

              D. Kenyon Webster, Acting Zoning Administrator

Exhibit A:  Municipal Code Section 9044.3(e)
Exhibit B:  December 29, 1998 Principal Planner Memorandum
Exhibit C:  Municipal Code Section 9080.4(d)(3)
Exhibit D:  August 12, 1992 City Attorney Opinion
Exhibit E:  August 26, 1992 Appeal
Exhibit F:  August 19, 1992 Letter from Donald Nelson
Exhibit G:  August 17, 1992 Letter from Christopher Harding
Exhibit H:  Planning Commission Minutes, August 19, 1992