Item 8-C

City Council Meeting: 02-23-99 Santa Monica, California





TO: Mayor and City Council

FROM: City Staff

SUBJECT: Recommendation to Introduce for First Reading an Ordinance adding various sections to the Santa Monica Municipal Code to allow Incidental Arts and Entertainment Uses subject to Use Permits and Conditional Use Permits in the Main Street Commercial District.

INTRODUCTION

This report recommends that the City Council introduce for first reading an ordinance amending the Zoning Ordinance to allow "Incidental Arts and Entertainment Uses" with the approval of a Use Permit or Conditional Use Permit (CUP) in the Main Street Commercial District (CM). Additionally, the Ordinance would add the definition of incidental arts and entertainment uses to the Zoning Ordinance. The proposed ordinance is included in Attachment A.

BACKGROUND

Prior Actions

On April 10, 1996, the Planning Commission first discussed the trend of Main Street retail operators using Temporary Use Permits to provide occasional live entertainment. The Commission directed staff to develop a Zoning Ordinance text amendment to regulate this use. At the July 17, 1996 Planning Commission meeting, staff recommended a two-tiered discretionary procedure to allow incidental arts and entertainment uses on Main Street. The discretionary process would allow either a Use Permit, approved by the Zoning Administrator, or a CUP for more intense uses, approved by the Planning Commission. Both processes would include a public hearing. On September 25, 1996, the Main Street Merchants and Ocean Park Community Organization co-sponsored a community meeting to discuss the proposed incidental arts and entertainment use. In general, there was support for this type of use, although concerns about potential noise impacts and operating hours were expressed. The ordinance that was presented to the Planning Commission on October 16, 1996 included specific conditions and performance standards to address the concerns related to noise and operating hours. The Planning Commission, on October 16, 1996, voted 5-0 to recommend that the City Council adopt the Zoning Ordinance Text Amendment.

On July 8, 1997, the City Council considered an ordinance to amend Article IX of the Santa Monica Municipal Code to permit "incidental arts and entertainment uses" within the CM Main Street Commercial District. However, the Council postponed adoption of the ordinance and directed staff to examine other permit options for incidental arts and entertainment operations that linked the permit to the operator. In addition, the Council asked staff to examine the appropriateness of expanding the ordinance to other commercial districts in the City. Subsequently, the Council requested a report on the growth of incidental food uses on Main Street, as well as an update on the incidental arts and entertainment permit. In response to the request, the City Council received an information item on August 18, 1998 which outlined several options for addressing the Council's concerns. This information item further recommended that the proposed zone text amendment include limited term permits for the two tiered process as originally outlined in the Planning Commission's recommendation to the Council. This information item is included as Attachment B.

ANALYSIS

Three Options

In response to the Council directive, City staff analyzed three options:

1. A police permit similar to those issued for nightclubs

2. A Business License allowing incidental arts and entertainment uses as permitted uses subject to specific design and development standards

3. The originally proposed two-tiered use permit and CUP process with the added condition that the permits be limited term, with permit renewal contingent on proven compliance with all the conditions of approval.

Staff analysis of the different options determined that the police permit, which would focus on activities related to public safety, would be inappropriate for incidental arts and entertainment uses. The business license option does not provide an incentive for the operator to comply with zoning regulations as the issuance of a business license is not discretionary and does not require renewal similar to option number three. Non-compliance would most likely be discovered only where a complaint is filed. The remaining option, as noted in the August 18, 1998, information item, is to employ a limited term two-tiered Use Permit and CUP approach.

Staff noted in the information item that the proposed Use Permit and CUP process with a limited term would be an effective means to regulate this limited type of entertainment. On further analysis, however, staff has concluded that the original two-tiered approach with a standard Use Permit or CUP would be equally effective as a the limited term approach. The advantages of a limited term permit, such as incentive for compliance and applying discretionary conditions via public hearing will apply to the two-tiered approach. Non-complying businesses would be subject to enforcement proceedings and the revocation of the Use Permit or CUP if they do not bring their business into compliance. Further, the original two-tiered approach and would not require the creation of an additional process and tracking system. It is staff's belief, therefore, that the original two-tiered approach of employing the Use Permits, and CUPs for more intense uses, is the most appropriate process to address Incidental Arts and Entertainment Uses in the City.

Although the Zoning Ordinance currently provides a definition for nightclub, restaurant, and incidental food service, there is no definition for an incidental arts and entertainment use. Nightclubs are establishments that provide music, dancing and other entertainment which may also serve food and alcohol, but are not a restaurant or bar. Restaurants, by definition, offer food for on-site consumption and may provide entertainment during the hours and in the areas that food is served, provided there is no cover charge, minimum drink purchase requirement or dancing. Incidental food service allows limited on-site sale and consumption of food or beverages in a retail establishment but does not allow entertainment. The proposed arts and entertainment use combines components of the nightclub, restaurant, and incidental food service uses. The following definition is proposed:

Section 9.04.02.030.437

"Incidental arts and entertainment use" -- the use of a building, room or other indoor space for entertainment such as musical and dramatic performances or other forms of personal expression where the use is incidental to a primary permitted retail use (not including a restaurant use).

Incidental arts and entertainment uses on Main Street would be subject to either a Use Permit or a Conditional Use Permit. Projects meeting the following performance standards would be allowed subject to the approval of a Use Permit.

a) There is no alcohol allowed on the premises.

b) No outdoor arts and entertainment activities are permitted.

c) No dancing is allowed except by scheduled performers.

d) The premises may have food and beverage service only if such service is otherwise permitted through the issuance of an Administrative Approval for incidental food service. The incidental arts and entertainment use must occur within the same space as the incidental food service.

e) This permit may be issued only for premises considered retail businesses, and not for premises classified as restaurants or bars under the Santa Monica Zoning Code.

f) The establishment must comply with the City's Noise Ordinance (Chapter 4.12 of the Santa Monica Municipal Code.) and all applicable Building, Zoning and Fire Code requirements including occupancy requirements.

g) All wall openings abutting residentially-zoned properties, except for emergency exits must be soundproofed. If the use includes amplified music or voice, all entrances and non-emergency exits must consist of two door vestibules.

h) The premises shall be kept in a neat and orderly condition at all times.

i) The retail use shall be open and operating during all times that the incidental arts and entertainment use is occurring.

j) Incidental arts and entertainment uses may not continue after 10:00 p.m. Sunday through Thursday, and may not continue later than 11:00 p.m. on Friday and Saturday.

k) Any area dedicated to incidental arts or entertainment use, including seating, shall not exceed 250 square feet.

Incidental arts and entertainment uses requiring a CUP would be subject to the same performance standards as cited above for Use Permits, however, there would be no limitation on operating hours or area dedicated to the entertainment activity. These issues would be evaluated individually, based upon the applicant's request and site location.

Planning Commission Recommendations

In general, the Planning Commission concurred with the proposed amendments. The Planning Commission recommended that incidental food uses should provide the entertainment within the same space as the food service to ensure that these establishments do not become strictly entertainment venues, that the performance standards reference compliance with the Noise Ordinance, and that performance dance be permitted. These have been incorporated in the proposed ordinance.

In addition, the Commission recommended that only incidental food uses, and not restaurants, be eligible for an arts and entertainment permit. This limitation would prevent restaurants from misusing the permit to become a dinner theater or nightclub. In order to clearly distinguish the two food service categories, the Commission suggested that staff review the California Health and Safety Code for any applicable regulations. In researching this State law, staff found that the Health Code considers any establishment that sells food for on-site consumption a restaurant, while the Santa Monica Zoning Ordinance identifies incidental food service as a retail establishment. Staff concurs with the Planning Commission's concerns and therefore addressed the Commission's concern by allowing the entertainment use to occur only within an approved retail establishment that is not considered a restaurant as defined by the Zoning Ordinance.

The Planning Commission also recommended allowing daytime activities, such as art openings with music or bookstore readings to occur prior to 8:00 p.m. without approval of a Use Permit or CUP. Staff is concerned that this would enable incidental arts and entertainment uses to occur on Main Street before 8:00 p.m. by-right, thereby eliminating the ability to impose any operating conditions on the use. Additionally this would eliminate the ability to determine through a discretionary process if the use is compatible with on-site and surrounding land uses; if there is an over concentration of similar uses in the area; and if the site is appropriate for the use. Therefore, staff has not included this language in the proposed ordinance.

In addition, the Planning Commission discussed permitting the use of amplified voice without two door vestibules at entrances and exits for the Use Permit only. Staff was concerned that amplified voice could create an impact equal to amplified music, and has not included this change in the proposed ordinance.

Applicability to other Zoning Districts

On July 8, 1997, the City Council asked staff to evaluate extending the standards to all other commercial districts. At this time, staff is recommending this activity only for Main Street. Before the use is expanded to other commercial districts, residents and businesses should be consulted to determine if there is support. Should the Council wish to expand the opportunities for incidental arts and entertainment, staff will embark on a process similar to that which occurred for Main Street.

GENERAL PLAN CONFORMANCE

The proposed text amendment is consistent with the General Plan in that Land Use Objective 1.6 and Policy 1.67 call for City action to accommodate commercial uses that serve the Santa Monica community and beyond, while respecting adjacent neighborhoods. In addition, the Land Use Element identifies the Main Street Commercial District as an area where leisure time opportunities for residents and visitors to the area are provided. Permitting an incidental arts and entertainment use will allow the type of small scale, neighborhood oriented, performing arts activity that adds to the quality of life for residents and visitors by contributing to the character of Main Street.

CEQA STATUS

The proposed ordinance is categorically exempt from the provision of CEQA pursuant to Section 15305 of the State Guidelines, Class 5, in that the proposed ordinance to allow incidental arts and entertainment uses in the Main Street Commercial (CM) District constitutes a minor alteration to land use limitations in an area with an average slope of less than 20% which does not result in any change to land use or density.

PUBLIC NOTIFICATION

Pursuant to Government Code Sections 65090 and 65091 notice of the public hearing was published in the Argonaut, the local paper of greatest circulation, 10 days in advance of the public hearing. A copy of the notice is contained in Attachment C.

BUDGET/FINANCIAL IMPACT

The recommendation presented in this report may have a budget impact. The monitoring and enforcement of the performance measures will impact current code enforcement resources. If a permit were required, the current fees are $1060.26 for a Use Permit, $1,388.95 for a Conditional Use Permit (building/use area 500 square feet or less), $2,094.03 for a Conditional Use Permit (building/use area 501 -5000 square feet), and $ 2,788.5 for a Conditional Use Permit (building/use area 5,001 square feet or more).

CONCLUSION

By requiring a discretionary permit process the proposed ordinance insures that incidental arts and entertainment uses will undergo a review process to determine whether they are appropriate for a particular location. The proposed two-tiered use permit process allows for an appropriate consideration of uses of varying intensity, thus enabling a range of uses that contribute to the character of Santa Monica's cultural opportunities.

RECOMMENDATION

It is recommended that the City Council conduct a public hearing and introduce for first reading the attached ordinance.

Prepared by:

Suzanne Frick, Director

Jay Trevino, AICP, Planning Manager

David Martin, Senior Planner

Sarah Lejeune, Associate Planner, Planning and Community Development Department



Attachment

A: Proposed Ordinance

B: City Council Information Item, August 18, 1998

C: Public Notice