ITEM 8-C

Council Meeting:  May 24, 1994           Santa Monica, California


TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Recommendation to Introduce for First Reading an
          Ordinance Modifying the Prohibition on the
          Establishment of Game Arcades and the Limitation on the
          number of Alcohol and Food Serving Establishments in
          Specified Portions of the C3 and C3C Districts.

INTRODUCTION

This report recommends that the City Council conduct a public
hearing and introduce for first reading an ordinance which
modifies the existing interim ordinance establishing limitations
on the creation of game arcades and the number of alcohol and
food serving establishments in the Bayside District Specific Plan
area.  The proposed changes to the interim ordinance are
necessary in order to address issues that have resulted from the
January 17, 1994 earthquake.

BACKGROUND

In August 1992, the City Council directed staff to prepare an
interim ordinance which would prohibit the creation of game
arcades and impose limitations on the total number of alcohol
outlets and eating establishments in the Bayside District.  At
the September 15, 1992 City Council meeting, the Council
conceptually approved the Draft Bayside District Specific Plan,
directed staff to proceed with an environmental impact report on
the draft Specific Plan, and adopted an ordinance to prohibit
game arcades and limit the number of alcohol and food serving
establishments per block.  In June 1993, the City Council adopted
Ordinance 1691 (CCS), which extended the limitations contained in
the original interim ordinance to December 1994.

As a result of the January 17, 1994 earthquake, some businesses
located in the Bayside District were forced to vacate their
buildings.  Staff is recommending changes to the existing
ordinance in order to accommodate displaced businesses and to
address the status of restaurant and alcohol outlets no longer in
operation because they were located in buildings currently "red-
tagged" or being demolished.

ANALYSIS

The provisions of the proposed ordinance are similar to the
existing ordinance in terms of the number of establishments
permitted per block, with the exception of block nine.  Following
the earthquake, Upfront Comedy, previously located at 1446 Third
Street Promenade (Block 6), was forced to vacate their place of
business.  The owners of Upfront Comedy have submitted an
application for a Conditional Use Permit to allow the comedy club
to open at 123 Broadway (Block 9) with a Type 42 alcohol license.

However, due to the limitation on the number of restaurants and
alcohol outlets for Block 9 contained in the current interim
ordinance, the Planning Commission does not have the ability to
approve the Conditional Use Permit.  While there are currently
two Type 41 or Type 47 alcohol outlets available in block nine,
since Upfront Comedy is not considered an eating establishment,
they require a Type 42 alcohol license.  Staff is recommending
that the City Council modify the ordinance by reducing the number
of Type 41 and Type 47 alcohol outlets permitted in the block
from eight to seven, and adding one outlet in the "other on-sale
alcohol license type" category.  This action will allow Upfront
to relocate their business and have a Type 42 alcohol license,
but it will not increase the total number of alcohol outlets on
the block or in the Bayside District Specific Plan area.  In
order to accommodate this change, staff is recommending that the
ordinance language be modified as follows:

     (i)  Block Nine.  Food Serving Establishments:  8,
          76 of which may have a Type 41 (On-Sale Beer
          and Wine) or Type 47 (On-Sale General)
          Alcohol License.  Type 48 (On-Sale General
          for Public Premise) Alcohol License:  0. 
          Other On-Sale Alcohol License Types:  01.

If Upfront Comedy were able to reoccupy their former location,
they would have up to six months from the time the business
closed to re-open.

Another issue resulting from the earthquake is the status of
eating establishments and alcohol outlets located in buildings
that have been demolished.  For example, the "Ethical Drugs"
building, located on the southwest corner of Santa Monica
Boulevard and Third Street Promenade, and the building to the
west, contained two establishments (Neal's Sweets and Eats and
Sydney's), one of which had a Type-41 alcohol license.

Under the current interim Ordinance, (Ordinance 1691 (CCS)) once
a food serving establishment or alcohol outlet is out of
operation for six months, the establishment is no longer counted
in determining whether the allocation for that block is full. 
Staff does not recommend any changes to this policy.  Thus the
demolition of the two buildings mentioned will result in two
available food outlets for block six, one of which may have a
Type 41 or Type 47 alcohol license.  There is currently an
application pending for a Type 41 alcohol license in block six,
for the Truffelia Bakery at 1435 Third Street Promenade.

If a food serving establishment is not in operation for more than
six months due solely to earthquake damage, however, it may be
inequitable to preclude that business from returning, should the
business act diligently to reopen.  Staff thus recommends that
language be added to the ordinance which will clarify that
restaurants or alcohol outlets are allowed to return in their
previous location if the total time they are out of business,
except as necessitated for earthquake repairs or reconstruction,
does not exceed six months.  Although theoretically, the
combination of these two provisions could result in the number of
outlets on a particular block temporarily exceeding the limits of
the interim ordinance, staff is currently aware of only one site
for which this may occur; the Ethical Drugs building on Block 6. 
Additionally, it is not certain that the use would in fact return
within the required time period after repair or reconstruction of
the buildings.

Even if there were a temporary exceedance of the limit on Block
6, in the long term such overage would be eliminated once any
other restaurant or alcohol outlet on that block ceased doing
business for six months.  Staff thus recommends that the
following language be added to the Ordinance:

     "Any establishment which has ceased operation for a
     continuous period of six months or longer shall not be
     counted when determining the number of alcohol or food
     serving establishment on a block pursuant to Section 5
     of this Ordinance.  Notwithstanding the above, and
     notwithstanding the limits established in Section 5 of
     this Ordinance, any alcohol or food serving
     establishment which has ceased operation for building
     repair or reconstruction as a result of the Northridge
     earthquake or its aftershocks may resume operations
     under the following circumstances:
     1.  The cessation of operation was necessary for
     building repair or reconstruction.
     2.  Repair or reconstruction of the building is
     commended within one year of the date the damage occurs
     and is diligently completed.
     3.   The total amount of time the business is not in
     operation, excluding the time period of involuntary
     closure, does not exceed six months.  Involuntary
     closure shall be that period commencing with
     involuntary displacement or cessation of operations due
     to earthquake damage, and ending with the time at which
     the business may lawfully and safely resume operations.
  
CONCLUSION

The proposed changes to the interim ordinance outlined above are
necessary as a result of the January 17, 1994 earthquake.  The
provisions of the ordinance will allow business that were
displaced to relocate within the Bayside District Specific Plan
area, and establish a policy for the allocation of eating
establishments and alcohol outlets which have become available as
a result of the earthquake.  Therefore, staff is recommending the
adoption of the attached ordinance.

BUDGET/FISCAL IMPACT

The recommendation in this report does not have any budget or
fiscal impact.
1
RECOMMENDATION

It is recommended that the City Council introduce for first
reading the attached ordinance revising the prohibition on game
arcades and the limitations on the number of food and alcohol
serving establishments in the Bayside District.

Prepared by:   Suzanne Frick, Director of LUTM
               Paul Casey, Acting Senior Planner
               David Martin, Associate Planner
               Land Use and Transportation Management Department
               Program and Policy Development Division

Attachments:   A.   Proposed Ordinance


                ORDINANCE NUMBER ____ (CCS)
                   (City Council Series)

           AN ORDINANCE OF THE CITY COUNCIL OF THE
        CITY OF SANTA MONICA PROHIBITING GAME ARCADES
    AND ESTABLISHING LIMITATIONS ON THE NUMBER OF ALCOHOL
    AND FOOD SERVING ESTABLISHMENTS IN SPECIFIED PORTIONS
       OF THE C3 AND C3C DISTRICTS ON AN INTERIM BASIS

     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)  At its August 11, 1992 City Council meeting, the City
Council held its first public hearing regarding the establishment
of a Bayside District zoning district ("District") which will
encompass portions of the current C3 and C3C zoning districts.
     (b)  At the same meeting, the City Council considered the
adoption of the Bayside District Specific Plan which, among other
things, proposes limits on the number of alcohol and food serving
establishments which will be allowed in the District, and would
prohibit entirely the establishment of new game arcades.
     (c)  Further action is needed by the City Council to
establish the Bayside District zoning district and to adopt the
Bayside District Specific Plan, including completion of
environmental review under the California Environmental Quality
Act ("CEQA"). Further, the City Council will consider at a later
meeting the adoption of specific zoning ordinances regulating
permitted uses and property development standards in the District
consistent with the Specific Plan.
     (d)  If current development activity is allowed to continue
in the District pending such final approval, uses incompatible
with the proposed Bayside District Specific Plan and zoning
ordinance implementation will occur.
     (e)  Pending the establishment of the Bayside District and
adoption of changes to the zoning ordinance implementing the
provisions of the Bayside District Specific Plan, to protect the
public health, safety, and welfare, it is necessary to limit the
number of alcohol and food serving establishments in the District
and to prohibit uses incompatible with the proposed Specific Plan
and implementing ordinances on an interim basis.
     (f)  The City wishes to limit the number of alcohol and food
serving establishments as a way in order to control the recent
proliferation of such establishments in the area and also to
encourage other types of uses so that a mixture of uses will
exist in the area.  Because of the proliferation of alcohol and
food serving establishments, there exists a current and immediate
threat to the public health, safety, or welfare, and the approval
of additional administrative approvals, development review
permits, conditional use permits, or any other applicable
entitlement for use in the District incompatible with the
standards of this interim ordinance would result in a threat to
public health, safety, or welfare.
     (g)  At the September 15, 1992 City Council meeting, the
City Council conceptually approved the Draft Bayside District
Specific Plan, directed staff to proceed with an Environmental
Impact Report on the Draft Specific Plan, and adopted Ordinance
1644 (CCS) on an emergency basis to prohibit game arcades and
establish limitations on the number of alcohol and food serving
establishments in a portion of the C3 and C3C districts on an
interim basis.
     (h)  Following the adoption of Ordinance 1644(CCS) creating
a 45 day moratorium, at the October 27, 1992 City Council meeting
the City Council adopted Ordinance 1655(CCS), which extended the
interim ordinance creating limitations on food serving
establishments and alcohol outlets.  On July 13, 1993 the Council
adopted Ordinance Number 1691, extending the interim ordinance
eighteen (18) months, in order to complete an Environmental
Impact Report.
     (i)  On January 17, 1994 an earthquake caused substantial
damage to numerous buildings in the City, including buildings
located in the proposed Bayside District.  As a result, some
alcohol and food serving establishments subject to the
requirements of Ordinance 1691 have been involuntarily displaced
from the buildings in which they are located, and have
temporarily ceased operations.  Should these uses not be allowed
to resume their operations due to the earthquake and the existing
provisions of Ordinance 1691 limiting the number of alcohol and
food serving establishments per block, substantial hardship and
injustice could result.   It is therefore necessary to amend
Ordinance 1691 to accommodate the needs of displaced businesses
suffering hardship due to the earthquake.  An amendment of this
Ordinance is necessary because of the current and immediate
threat to the public health, safety, or welfare described above.

     SECTION 2.  Definitions.  The following words or phrases as
uses in this Ordinance shall have the following meanings:
     Block One: That area bounded by Wilshire Boulevard on the
north, Arizona Avenue on the south, Fourth Court Alley on the
east, and Mall Court East on the west.
     Block Two: That area bounded by Arizona Avenue on the north,
Santa Monica Boulevard on the south, Fourth Court Alley on the
east, and Mall Court East on the west.
     Block Three: That area bounded by Santa Monica Boulevard on
the north, Broadway on the south, Fourth Court Alley on the east,
and Mall Court East on the west.
     Block Four: That area bounded by Wilshire Boulevard on the
north, Arizona Avenue on the south, Mall Court East on the east,
and Mall Court West on the west.
     Block Five: That area bounded by Arizona Avenue on the
north, Santa Monica Boulevard on the south, Mall Court East on
the east, and Mall Court West on the west.
     Block Six: That area bounded by Santa Monica Boulevard on
the north, Broadway on the south, Mall Court East on the east,
and Mall Court West on the west.
     Block Seven: That area bounded by Wilshire Boulevard on the
north, Arizona Avenue on the south, Mall Court West on the east,
and First Court Alley on the west.
     Block Eight: That area bounded by Arizona Avenue on the
north, Santa Monica Boulevard on the south, Mall Court West on
the east, and First Court Alley on the west.
     Block Nine: That area bounded by Santa Monica Boulevard on
the north, Broadway on the south, Mall Court West on the east,
and First Court Alley on the west.
     Food Serving Establishment: Any restaurant, including,
without limitation, any drive through or drive-in restaurant,
fast-food or take-out restaurant, or sidewalk cafe, and any use
which includes incidental food service.  For purposes of this
Ordinance, a bar shall not be considered a food serving
establishment.
     Proposed Bayside District: That area bounded by Wilshire
Boulevard on the north, Broadway on the south, Fourth Court Alley
on the east, and First Court Alley on the west.

     SECTION 3.  Applicability.
     (a)  The provisions of this Ordinance apply only to
applications for projects to be located in the Proposed Bayside
District, and only to projects the applications for which were
filed after August 11, 1992.  Any project which has received a
conditional use permit, administrative approval, or alcohol
exemption determination on or before September 15, 1993 shall be
exempt from the provisions of this Ordinance.
     (b)  For purposes of this Ordinance, an establishment shall
be considered a new alcohol or food serving establishment if the
prior alcohol or food serving establishment at that site has
ceased operation for a continuous period of six months or longer.

     (c)  Any establishment which has ceased operation for a
continuous period of six months or longer shall not be counted
when determining the number of alcohol or food serving
establishments on a block pursuant to Section 5 of this
Ordinance.  Notwithstanding the above, and notwithstanding the
limits established in Section 5 of this Ordinance, any alcohol or
food serving establishment which has ceased operation for
building repair or reconstruction as a result of the Northridge
earthquake or its aftershocks may resume operations under the
following circumstances:
          1.  The cessation of operation was necessary for
building repair or reconstruction.
          2.  Repair or reconstruction of the building is
commenced within one year of the date the damage occurs and is
diligently completed.
          3.  The total amount of time the business is not in
operation, excluding the time period of involuntary closure, does
not exceed six months.  Involuntary closure shall be that period
commencing with involuntary displacement or cessation of
operations due to earthquake damage, and ending with the time at
which the business may lawfully and safely resume operations.

     SECTION 4.  Administrative Approvals.  Approval of all new
alcohol or food serving establishments to be located in the
Proposed Bayside District which do not otherwise require the
issuance of a conditional use permit, alcohol exemption
determination, or development review permit, shall require the
issuance of an administrative approval.  For purposes of this
Ordinance, an establishment shall be considered a new alcohol or
food serving establishment if the prior alcohol or food serving
establishment at that site has ceased operation of a continuous
period of six months or longer.

     SECTION 5:  Limit on Food Serving Establishments and On-Sale
Alcohol Outlets.  The Planning Commission and City staff are
directed to disapprove all requests for the issuance of
administrative approvals, development review permits, conditional
use permits, alcohol exemption determinations, or any other City
approvals for food serving establishments or on-sale alcohol
outlets, if the granting of such approval would cause the number
of food serving establishments or on-sale alcohol outlets on the
block on which the project is located to exceed the following
limitations:
     (a) Block One.  Food Serving Establishments:  1, 0 of which
may have a Type 41 (On-Sale Beer and Wine) or Type 47 (On-Sale
General) Alcohol License. Type 48 (On-Sale General for Public
Premise) Alcohol License: 0. Other On-Sale Alcohol License Types:
0.
     (b)  Block Two.  Food Serving Establishments:  2, 2 of which
may have a Type 41 (On-Sale Beer and Wine) or Type 47 (On-Sale
General) Alcohol License. Type 48 (On-Sale General for Public
Premise) Alcohol License: 0. Other On-Sale Alcohol License Types:
0.
     (c)  Block Three.  Food Serving Establishments: 7, 7 of
which may have a Type 41 (On-Sale Beer and Wine) or Type 47
(On-Sale General) Alcohol License. Type 48 (On-Sale General for
Public Premise) Alcohol License: 0. Other On-Sale Alcohol License
Types: 0.
     (d)  Block Four.  Food Serving Establishments: 18, 10 of
which may have a Type 41 (On-Sale Beer and Wine) or Type 47
(On-Sale General) Alcohol License. Type 48 (On-Sale General for
Public Premise) Alcohol License: 0. Other On-Sale Alcohol License
Types: 0.
     (e) Block Five. Food Serving Establishments: 16, 10 of which
may have a Type 41 (On-Sale Beer and Wine) or Type 47 (On-Sale
General) Alcohol License. Type 48 (On-Sale General for Public
Premise) Alcohol License: 0. Other On-Sale Alcohol License Types:
0.
     (f)  Block Six.  Food Serving Establishments: 18, 11 of
which may have a Type 41 (On-Sale Beer and Wine) or Type 47
(On-Sale General) Alcohol License. Type 48 (On-Sale General for
Public Premise) Alcohol License: 0. Other On-Sale Alcohol License
Types: 0.
     (g)  Block Seven.  Food Serving Establishments: 3, 2 of
which may have a Type 41 (On-Sale Beer and Wine) or Type 47
(On-Sale General) Alcohol License.  Type 48 (On-Sale General for
Public Premise) Alcohol License: 0. Other On-Sale Alcohol License
Types: 0.
     (h)  Block Eight.  Food Serving Establishments: 3, 2 of
which may have a Type 41 (On-Sale Beer and Wine) or Type 47
(On-Sale General) Alcohol License. Type 48 (On-Sale General for
Public Premise) Alcohol License: 0.  Other On-Sale Alcohol
License Types: 0.
     (i)  Block Nine. Food Serving Establishments: 8, 7 6 of
which may have a Type 41 (On-Sale Beer and Wine) or Type 47
(On-Sale General) Alcohol License. Type 48 (On-Sale General for
Public Premise) Alcohol License:  0. Other On-Sale Alcohol
License Types:  0 1.

     SECTION 6.  Game Arcades.  The Planning Commission and City
staff are directed to disapprove all requests for the issuance of
building permits, administrative approvals, development review
permits, conditional use permits, or any other City approvals for
billiard parlors, game arcades, other electronic amusements
including dynamic motion simulators and virtual reality
simulators and other uses which, in the judgement of the Planning
Director, are similar, in the Proposed Bayside District, except
as exempted under Section 3.

     SECTION 7.  Exemptions.  Notwithstanding the limitations on
food serving establishments and alcohol outlets set forth in
Section 5, one food serving establishment operated by a
non-profit organization shall be permitted on the west side of
the 1300 block of Second Street (Block 8).  This establishment
shall be open to the public, shall not have alcohol service, and
shall operate as a job training center for persons seeking future
employment in food-serving establishments.
     Notwithstanding the limitations on food serving
establishments and alcohol outlets set forth in Section 5, the
approved 360 seat restaurant located at 1201 Third Street
Promenade shall be permitted to be divided into a maximum of four
separate food service establishments with up to four on-sale
alcohol licenses, provided the establishments are contained in
the buildings located at 1201-1211 Third Street Promenade, none
of the four restaurants contain more than 200 seats, and the
total number of seats does not exceed 360. This exemption does
not affect the requirement to obtain any other City permits,
including, without limitation, Conditional Use Permits or alcohol
exemptions for the sale of alcohol at the individual food service
establishments.

     SECTION 8. This Ordinance shall be of no further force or
effect 18 months from its adoption, unless extended in the manner
required by law.

     SECTION 9.  Any provision of the Santa Monica Municipal Code
or appendices thereto inconsistent with the provisions of this
Ordinance, to the extent of such inconsistencies and no further,
are hereby repealed or modified to that extent necessary to
affect the provisions of this Ordinance.

     SECTION 10.  Ordinance Number 1691(CCS) is hereby repealed.

     SECTION 11.  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 any 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 12. 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 after its adoption.

APPROVED AS TO FORM:

_______________________
MARSHA MOUTRIE
City Attorney