Item 7-C

 

City Council Meeting 11-12-02                                                    Santa Monica, California

 

 

 

TO:                  Mayor and City Council

 

FROM:            City Staff

 

SUBJECT:     Introduction and First Reading of an Interim Ordinance Extending the Interim Ordinance Modifying the Development Review Thresholds in the C3, C3C, and BSC Districts to 7,500 Square Feet, and Exempting Affordable Housing Projects With No More Than 50 Units from Development Review Permit and Conditional Use Permit Requirements in All Zoning Districts Except in the LMSD, DP, BP, and R-MH Districts.

 

 

INTRODUCTION

 

This report recommends that the City Council introduce for first reading an interim ordinance extending for 18 months the interim ordinance that lowered the development review thresholds in the Downtown to 7,500 square feet, established exemptions from the interim ordinance if specified percentages of the housing units are affordable, and added a broader City-wide exemption from development review and conditional use permit requirements for 100% affordable housing projects containing fifty units or less.  The initial 45-day interim ordinance will expire on December 27, 2002 unless extended prior to that date.  The proposed ordinance will extend the interim standards until June 26, 2004.  The proposed ordinance is contained in Attachment A.

 

BACKGROUND

 

On September 24, 2002, the City Council introduced the initial ordinance for first reading. Following second reading and adoption, this ordinance will be effective for forty-five days and will expire on December 27, 2002.  The proposed ordinance would extend the initial interim ordinance for an additional 18 months. 

 

DISCUSSION

At the September 24, 2002 City Council meeting, Council directed staff to: 1) consider excluding the Bayside Commercial (BSC) District from the lowered development review thresholds; 2) consider incentives for mixed use development in the Downtown; and 3) consider exempting residential projects that are required to devote more than 20% floor area to non-residential pedestrian orientated uses. 

 

1)  The recommended term of the proposed interim ordinance extension is eighteen months.  During this time, staff in consultation with the community, will  develop downtown design standards. These standards will establish the community’s vision for development in the downtown and provide greater predictability for applicants.  In conjunction with development of the downtown design standards, it is envisioned that an alternate development review process will be established to implement the new standards.  Due to preparation of the downtown design standards, establishment of a new development review process, and short term of the interim ordinance extension, staff recommends that the BSC District and both sides of Wilshire Boulevard be included in the proposed interim ordinance. Interim standards that apply to the BSC, C3 and C3C Districts, including both sides of Wilshire Boulevard, will ensure consistency throughout the Downtown while new standards are being developed.  

 

2)  With regard to incentives for mixed-use development, the current incentives appear to be effective in producing the desired amount of residential development within the Downtown.  In the Downtown, 24 mixed-use projects containing 925 units have been built and/or filed over the past 4-˝ years.  The zoning ordinance currently provides substantial incentives for the production of residential development.  In the BSC, C3 and C3C Districts, any floor area devoted to residential uses is eligible to receive a FAR (Floor Area Ratio) discount of 50%; the City eliminates the restriction on the number of stories that can be built if the structure contains at least one floor of residential use and offers increased maximum height to projects with a designated number of floors of residential use.  In addition, the floor area devoted to residential use is discounted 50% when determining the threshold for a Development Review permit.  Given the substantial incentives that the City already provides to facilitate housing development and the success of these incentives, staff believes that additional incentives are not warranted or appropriate at this time.

 

3)  The forty-five day interim ordinance currently provides an exemption if a project contains a minimum of eighty percent of floor area devoted to multi-family residential use provided a certain percentage of affordable housing units are provided.  A section has been added to the interim ordinance to ensure that residential projects in commercial districts which are required to devote more than twenty percent of floor area to pedestrian oriented uses shall also be exempt if these projects contain the maximum percentage of multi-family residential use authorized by the Zoning Ordinance.  This provision was included in Ordinance No. 1999 (CCS) which lowered the development review threshold in the City’s other non-residential districts.

 
CEQA Status

As prepared, the proposed Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) in that it can be seen with certainty that the proposed ordinance does not have the potential to significantly impact the environment.  Indeed, the proposed Ordinance serves to further protect the environment by ensuring that development projects are designed to be compatible with the surrounding neighborhood and incorporate pedestrian design features.  Providing an exemption for affordable housing projects consisting of not more than 50 units is consistent with the exemptions for affordable housing provided in CEQA.

 

Public Notice

A legal advertisement was published in the “California” section of the Los Angeles Times at least ten consecutive calendar days prior to the hearing.  A copy of the notice is contained in Attachment C.

 

Financial Impact

If the Council lowers the review threshold, workload will increase and no funds are available to increase staffing.  Although the requirement of preparing an Environmental Impact Report (EIR) will increase costs for development applications, city revenues will not be impacted since applicants reimburse environmental costs.  Additionally, on October 22, 2002, the City Council reordered the City Planning Division priorities and associated consultant costs in order to accommodate this work effort. 

 

Conclusion

The recommended term of the extension is 18 months, or until June 26, 2004.  This length of extension is necessary to complete the community process required for implementing a permanent ordinance, which will involve preparation of design guidelines for the Downtown and the creation of a new permit process.  Staff estimates that drafting standards, conducting the associated public process, and preparing the Zoning Ordinance modifications will take approximately one year.   The 18-month extension will ensure that the interim ordinance remains in effect until the new standards have been implemented.

 

Recommendation

Staff recommends that the Council introduce the attached interim ordinance for first reading.

 

PREPARED BY:       Suzanne Frick, Director of Planning and Community Development

Jay Trevino, Planning Manager

 

 

ATTACHMENTS:      A:    Proposed Ordinance

                        B:   September 24, 2002 Staff Report

                        C:   Public Notice