City Council Meeting: August 13, 2013

Agenda Item: 8-A

To: Mayor and City Council

From: David Martin, Director of Planning and Community Development

Subject: Downtown Specific Plan CEQA Analysis Parameters

Recommended Action

Staff recommends that the City Council review and discuss development concepts and strategies for the Downtown Specific Plan (DSP) described herein, and

1. Review and select the height and density parameters to be studied as part of the Program Environmental Impact Report (PEIR) as follows:

o For the majority of the downtown: Study minimal changes from existing standards with maximum Tier Two heights of 50 to 60 feet and maximum Tier Three heights of 76 to 84 feet and FARs from 2.5 to 4.0 as presented to the Planning Commission on January 23, 2013

o For the eight opportunity sites: Study maximum FAR of 2.5 to 4.0 and several height scenarios that would analyze a range of heights for the opportunity sites including:

· Up to a maximum of 84 feet as permitted under current regulations

· Maximum heights consistent with the majority of the downtown as presented to the Planning Commission on January 23, 2013

· Maximum heights of 120 to 135 feet specific to location

2. Direct staff to proceed with preparation of the PEIR based on Council input using the height and density options proposed in this report, or as revised by Council, as the basis for the project description required to commence CEQA analysis.

Executive Summary

This report recommends definition of the height and FAR parameters for the CEQA project description of the Downtown Specific Plan (DSP). The DSP intends to preserve the existing character where it succeeds, identify areas where change would be beneficial, and propose options for enhancement and integration of light rail. For the majority of the downtown, the proposed DSP would make limited changes to the existing maximum downtown height and FAR standards set by the 1984 General Plan and the 1996 Bayside District Plan, maintaining the current permitted profile for 90% of the district. The DSP would also define parameters for the LUCE identified development focus areas (Attachment A, LUCE Goal D1.5), that could allow an expanded development envelope with the provision of exceptional community benefits. The DSP refines these focus areas to eight specific sites, titled “Opportunity Sites”, because of their unique ability to provide opportunities for the City to accomplish important policy objectives towards affordable housing, creation of additional open space, cultural facilities, preservation of historic resources, congestion mitigation, and sustainability measures for ongoing reduction in greenhouse gas emissions.

Staff recommends that a range of height and density scenarios for the eight opportunity sites be analyzed to provide decision makers with the necessary information for understanding the tradeoffs of different height scenarios in relation to possible community benefits. This report requests that Council consider the height and FAR presented to the Planning Commission on January 23, 2013 and the range of options for maximum height and FAR on eight opportunity sites as discussed herein.

Staff recommends that that the PEIR include the following analysis:

o For the majority of the downtown: Study minimal changes from existing standards with maximum Tier Two heights of 50 to 60 feet and maximum Tier Three heights of 76 to 84 feet and FARs from 2.5 to 4.0 as presented to the Planning Commission on January 23, 2013

o For the eight opportunity sites: Study maximum FAR of 2.5 to 4.0 and several height scenarios that would analyze a range of heights for the opportunity sites including:

· Up to a maximum of 84 feet as permitted under current regulations

· Maximum heights consistent with the majority of the downtown as presented to the Planning Commission on January 23, 2013

· Maximum heights of 120 to 135 feet specific to location

In addition the PEIR would include analysis of a no change to existing regulations scenario, (1984 General Plan, 1996 Bayside District Specific Plan and 2010 LUCE for Mixed-Use Boulevard) required under CEQA as the “no project” alternative.

CEQA regulations require a stable project description to commence environmental review. Major components of the DSP have been defined through hearings before the Planning Commission and City Council, including Tier 1-3 development standards identifying the height and FAR parameters for over 90% of the project area (excluding opportunity sites), as well as uses, open space and circulation elements. By making recommendations on height and FAR for the opportunity sites, the Council will complete the DSP project description in a manner sufficient to proceed with CEQA analysis.

This approach allows for a rigorous and district-wide comparison of different proposed opportunity sites height and density scenarios within the context of the whole downtown. The CEQA document would address any potential impacts through a comprehensive mitigation program, and consideration of project alternatives. Following Council direction, the DSP team will proceed with CEQA review including the formal scoping process to be followed by the circulation of a draft PEIR for public comment and agency response.

In addition, this report updates the Council on the ongoing DSP process, including numerous stakeholder interviews, public discussions with boards and commissions, four community workshops, and Planning Commission, Landmarks Commission and City Council meetings.

Background

Downtown was included in the 4% of the City identified in the LUCE as appropriate for new housing, cultural, commercial and jobs uses because it is well served by transit and new projects could be less reliant on automobile trips for success. The particulars under consideration as part of the DSP address:

Integrating the expanded downtown boundaries,



Optimizing access to the Expo station, and



Refining and shaping the eight areas that the LUCE identified as places to focus new development and achieve exceptional community benefits.

Downtown development is currently governed by an Interim Ordinance, the 2010 adopted General Plan, and the current Zoning Ordinance ("Current Zoning"). The City Council adopted an Interim Ordinance to establish interim development procedures until the LUCE could be fully implemented with the adoption of the Downtown Specific Plan and Zoning Ordinance Update. The interim ordinance requires that all projects in the Downtown over 32 feet be processed through a development agreement. Development agreement projects are governed by the 2010 LUCE, and on issues which the LUCE deferred, the existing Bayside District Plan and applicable land use designations of the 1984 Land Use Element. The existing Zoning Ordinance continues to establish the development standards for projects fewer than 32 feet that do not require a development agreement.

Community Outreach: The DSP process to date has included numerous stakeholder interviews, public hearings and discussions with various boards and commissions and the City Council to develop a vision for the future of the downtown, (all materials are located at DowntownSMplan.org), in chronological order:

January 11, 2012 – Introduction of Team and Strategy: Introduction of the project team, approach and schedule, and implementation of the LUCE strategies. (Planning Commission)

January 26, 2012 – Initial concepts, Emerging Themes: Community meeting on initial themes for early input and an update on 4th/5th and Arizona site and the community priorities identified in the visioning process (Community Meeting)

February 28, 2012 – DSP Emerging Themes and Existing Conditions Analysis: Council discussion of emerging themes from community outreach and analysis of existing conditions, including the focus on walkability as critical to the success of the downtown, and the necessity of multi-modal circulation improvements to address existing conditions and support the integration of light rail. (City Council)

March 28, 2012 – Development Standards (Setbacks Frontages and the Public realm): Discussion of preliminary design guidelines related to building frontages, including introduction of frontages and public realm strategies to support a lively pedestrian environment with a focus on specific strategies for Lincoln Boulevard. (Planning Commission)

· July 11, 2012 – Community Benefits : Prioritization of community benefits for the downtown, refining broad LUCE categories to more specific downtown elements, introduction of frontages and public realm strategies to the community, and opportunity site criteria. (Community Meeting/Planning Commission hosted)

December 5, 2012 – Introduction to Urban Form, Gateways and Points of Interest: Urban design s trategy, enhancing and preserving downtown Santa Monica’s character, light and air, initial concepts for location of open spaces, cultural resources, “gateways” and points of interest to identify a specific urban form defined by points of interest and enhancing the lesser-used entrances into the downtown. (Community Meeting/Planning Commission hosted)

January 23, 2013 – Tier 1, 2 & 3 Height and Density: Initial concepts for urban form including detailed FAR and height analysis for all subareas in the downtown), implementing the LUCE tiering system in the downtown, simplifying FAR calculations to include previous housing bonus discounts, and including open space and cultural infrastructure networks to enhance the pedestrian experience. (Planning Commission)

March 6, 2013 – Circulation Concepts (Planning Commission) : Discussion of the circulation projects underway in the downtown, and the multi-modal network improvement options under consideration in the DSP, including specific concepts for opportunity site circulation to integrate into existing network as well as options for additional streets located on opportunity sites.(Planning Commission)

March 11, 2013 – Historic Resources: Discussion of Historic Resources and potential downtown strategies for incentivizing preservation of historic character and buildings listed on the inventory but not landmarked. ( Landmarks Commission)

May 6, 2013 – Open Discussion on Urban Form: Town Hall discussion on urban form and opportunity site considerations. (Community Meeting/Planning Commission hosted)

In addition to these meetings, the City Council has had a number of discussions about critical efforts in the downtown which have informed the DSP concepts under consideration, including: Expo betterments including the downtown station on January 24, 2012, discussion of The Colorado Esplanade on Feb 14, 2012 and May 14, 2013, the Interim Parking Plan on July 10, 2012, Study Session on the Downtown In-lieu Parking Fee on September 11, 2012, and LUCE Circulation Implementation Update on February 12, 2013.

Downtown Santa Monica Inc. has hosted a number of publicly noticed meetings to educate the DTSM Board on the objectives, requirements and process of a specific plan, so they could make informed recommendations on the DSP. Staff has also met with a group of representatives from the City’s neighborhood organizations and has offered to meet individually with each neighborhood group.

The community outreach, Commission and Council discussions have generated the following themes:

1) Walkability is a priority; pedestrian comfort and well-being is primary to downtown’s character and competitive advantage.

2) Light rail will broaden transportation choices, presenting new opportunities. Creating the appropriate station access is critical to the future success of the downtown.

3) Cultural and creative opportunities belong in the downtown. Increasing creative and cultural opportunities was a consistent goal for enhancing the downtown and diversifying resources and attractions.

4) It will be important for the DSP to anticipate future economic trends and address demand for creative office and daily needs of the growing residential and visitor sector.

5) A few sites in downtown are capable of accommodating significant community benefits such as affordable housing, open space, additional public parking, cultural resources, and reuse or preservation of historic resources.

6) There are differing opinions regarding the right balance for the development focus sites identified in the LUCE. Community input indicates that there is less concern about tall buildings near the freeway and east of the historic core, and that there is significant concern that large buildings along Ocean Avenue could alter the character of the City.

Discussion

Overarching Downtown Urban Form: Preservation and Enhancement: Santa Monica has a successful downtown which is a regional draw for retail and beach patrons and an international, national and statewide destination for tourists. The LUCE envisioned the continued success of Santa Monica’s downtown to include a vibrant transit rich district with full integration of the light rail and improved linkages to the Civic Center and the beachfront. The DSP intends to preserve the successful existing character, identify areas where change would be beneficial, and propose options for enhancement that incorpoate optimal light rail access.

The LUCE expanded the downtown to include the east side of Lincoln Boulevard to Ocean Avenue and the north side of Wilshire Boulevard to the I-10 Freeway. The strategies presented to the Planning Commission at the January 23, 2013 meeting are based on an in-depth analysis of the existing street characters and sub-areas in the downtown, and designed to support a range of architectural modulation. The graphic below illustrates the DSP considerations for enhancements to the urban form:

· As the downtown expands eastward, developments on Lincoln Boulevard require improved walkability. New public parking opportunities must be strategically located and connect to the downtown core though improved pedestrian connections.

· On the southern edge, sites adjacent to the light rail station and the freeway have not been previously included in downtown zoning, but are now key transit-oriented development sites where additional height has minimal impact, and improved connectivity can reduce vehicle trips.

· Ocean Avenue and Second Street are zoned at a lower height than most of downtown to preserve access to ocean light and air. The pedestrian orientation should be improved by enabling a limited additional FAR to activate existing pedestrian level plazas, and an overall height increase of two feet to allow for a greater floor to floor height for pedestrian oriented ground floor uses. Opportunity sites on Ocean need to be carefully considered in terms of building width, floor plate and design standards to maintain connections to ocean light and air.

· There has been some discussion about preserving the height and scale of the Third Street Promenade. Preservation of this area at its current predominant scale is effectively a down zone.

Program Environmental Impact Report for the Downtown Specific Plan: A Program EIR will evaluate area-wide impacts and propose comprehensive mitigations as needed for projects that comply with the Specific Plan. The Program EIR (PEIR) allows analysis of a reasonable projected build-out of the DSP Area over the life of the plan, and identifies potential mitigation measures that address the entire district, to be implemented over time as necessary. Careful analyses of different development scenarios result in area wide mitigations, and a phasing plan which identifies triggers such as level of service. The PEIR analysis would also provide potential recommendations for project conditions and a monitoring plan to ensure that mitigations are implemented. This staff report provides a framework for the City Council to discuss and identify the outside parameters of the DSP project description, which are necessary to proceed with PEIR evaluation.

This report provides analysis recommendations for maximum heights and FAR for all tiers as presented to the Planning Commission on January 23, and the range of options for the development focus areas identified in the LUCE with maximum heights of 120 -135 feet and maximum FAR of 2.5 to 4.0. Additional information is available on the project website DowntownSMplan.org and in the attachments to this report which include pertinent LUCE sections, height and FAR tables for Tiers 1 - 3, and the subarea map.

Height and FAR Limits for Over 90% of the Downtown

In order to understand the DSP proposal it is important to recognize the current complexities of the existing zoning in the downtown, which include a bonus FAR system for housing (applied as an FAR discount), multiple subareas of differing heights, and governance by several different regulating documents.

· Current maximum heights:

The current zoning focuses maximum height of 84 feet (7-8 stories) in a central core defined by the Bayside District, the blocks on either side of the Third Street Promenade. Preserving access to light and air, permitted height steps down significantly towards the ocean to 45 feet along Ocean Avenue. To the east the height maximums step down to 76 feet east of the downtown core and 60 feet in what is currently the residential heart of the area, 50 feet on either side of 7th street and, as defined by the LUCE, 60 feet on the portions of Lincoln Boulevard located in the downtown. Santa Monica Place is consistent with commercial zones elsewhere in the City at 56 feet, and the freeway adjacent sites are limited to 45 feet. In the BSCD height is limited, but the number of stories is not specific if the use includes one floor of residential, a hotel or a parking structure. The existing Zoning Code has a series of incentives that promote housing as a priority use in the downtown. Over the past twenty years, the number of residential units more than doubled in the District with 2,500 – 2,800 units now housing approximately 5,000 residents.

· Current FAR:

To encourage housing dev-elopment in the downtown, a provision was added to the Zoning Code in the 1990’s to allow residential floor area to be discounted at 50% for the following subareas BSC1-4, C3 and C3C. The maximum FAR map shows the actual maximum FAR achievable with the frequently used housing discount provision. Currently, effective FAR, which includes the housing bonus, is highest in the downtown core at approximately 6.5 and steps down to the east and west with the next highest FAR at 4.5 in the mixed neighborhood commercial zone, 3.5 along Ocean Avenue and the freeway, and the lowest being the LUCE identified Mixed Use Boulevard (MUB) FAR of 2.75 along Wilshire and Lincoln Boulevards.

Implementing the LUCE through the DSP: Tiering and the Permit Process : The LUCE tiering system set a base height (32-39 feet) throughout the City and required larger projects (Tiers 2 and 3) to provide community benefits. The tiering system allowed applicants to request increased height of new development based on conformity with community identified priorities that included vehicle trip reduction and traffic management, affordable and workforce housing, community physical improvements, social and cultural facilities and historic preservation. These categories support the community commitment to sustainability and reduction of greenhouse gas emissions by including land use policy and programs that minimize current and future reliance on the automobile. Prior to the LUCE adoption, the concept of community benefits had been largely realized through negotiated development agreement projects. The DSP expands the tiering and community benefit concepts identified in the LUCE to the downtown. The DSP implements the LUCE tiering principal to enable projects over Tier 1 to contribute to the betterment of downtown through the provision of community benefits. The DSP would simplify the FAR calculation used in the prior Zoning Code by replacing FAR discounting with a system that clearly defines the actual allowable floor area. The standards being considered continue to encourage residential projects while defining transparent maximum allowable floor area calculations that clearly indicate the methods for achieving a housing bonus. The graphics below outline standards for each subarea, which are based on recognition of the existing downtown subareas and evaluation of downtown’s existing character. Attachment B includes proposed numerical charts of height and FAR and examples of projects constructed under the current regulations.

DSP Height and FAR Regulations under Consideration: The DSP strategy proposes the LUCE tiering approach with minor modifications to address the traditionally higher heights in the downtown.

Using the existing 1984 regulations as a basis, the DSP is considering only minimal change to the regulations that are in place now for the majority of the downtown. The approach considered in the DSP meshes the LUCE tiering concept with the existing bonus system, combining the maximum existing permitted heights, including bonuses, with the current requirements for community benefits. The only significant change is continuing the 84’ height limit (permitted in the downtown core area since the adoption of the 1984 General Plan) to the south to encompass Santa Monica Place and the freeway adjacent sites and allow for improved connectivity to the Civic Center.

The LUCE did establish specific development standards for the Mixed Use Boulevard designations in the downtown: Wilshire Boulevard and Lincoln Boulevard, including maximum height, and floor area, and the DSP proposes that Wilshire Boulevard be slightly modified but Lincoln Boulevard remain per the LUCE standards as described below.

Based on the analysis and community input, the DSP is proposing consideration of the following approach to underlying urban form and street character:

· Lincoln Boulevard is designated as a Mixed-Use Boulevard (MUB) in the LUCE. The current maximum height allowed in the MUB is 60’ with a requirement for community benefits above a 32-39’ base. The DSP does not propose modifying the standards set forth by the LUCE for Lincoln Boulevard.

· The north side of Wilshire Boulevard between the west side of 7th Street and 2nd Court is currently designated MUB and has the same 60’ height limit as Lincoln Boulevard. Due to the absence of an alley as a buffer to the neighborhood, and to support preserving the context for the historic structures in this area, the proposed DSP would reduce this height to 50 feet.

· 6th and 7th Streets along with the BBB yards are considered for a maximum height of 60’ which is consistent with the current standard with residential for 6th Street. This allows a 10’ height increase to 7th Street and allows this transitional area to be consistent with adjacent streets.

· 5th Street is currently allowed to develop up to 76’ by Zoning Code standards. The DSP maintains this height standard as it transitions between the adjacent areas.

· The regulations have historically allowed taller buildings in the downtown from the east side of 4th Street to the east side of 2nd Street. The DSP considers continuing the same 84’ height limit adopted of the 1984 General Plan. A conservation district is being considered for the 3rd Street Promenade to maintain the current character that includes many one, two and three-story buildings.

· The west sides of 2nd Street and Ocean Avenue have a height limit of 45’ imposed by the 1984 General Plan. To encourage an 18’ ground floor height the DSP considers raising the height allowed in this area by 5’ to allow a 50’ maximum.

The maximum FAR envelope under consideration is designed in concert with the maximum heights, and reflects the true potential effective FAR achievable within the design guidelines for setbacks and stepbacks, and does not exceed effective FARs currently permitted. (Attachment B provides detailed tables for each subarea).

The following graphics and descriptions represent the maximum Tier One, Two and Three heights under discussion.

Tier 1 standards are based on typical Tier 1 criteria from the LUCE. The base height will be 32 feet (approximately 2 stories) and a project may go up to 39’ (3 stories) if providing 100% housing above the first floor.

Tier 2 projects are proposed up to 60 feet in height (approximately 5 stories.) This would allow a typical downtown project (60-foot mixed-use) to be entitled through a Development Review Permit process – a process that requires discretionary review by the Planning Commission, thereby giving the public a chance to review and comment.

Tier 3 projects would range from 76 to 84 (approximately six to seven stories) is proposed for a limited area located between the east side of 2nd Street, to the east side of 5th Street. Tier Three projects would be entitled through a Development Review Permit process unless they exceed a certain square footage threshold. This threshold will be determined by analysis of building types and achievable building area. Larger projects which exceed the threshold would be entitled through a development agreement to ensure significant community benefits and site appropriate features.

Integrating Opportunity Sites Into the Downtown The LUCE identified areas to focus new investment that are accessible to transit, accommodate mixed uses, contribute to the pedestrian oriented environment and support substantial community benefits. The Downtown has a small number of well-placed areas which can accommodate more significant on-site community benefits, along with access and circulation improvements to integrate with a multimodal network that includes light rail. The City of Santa Monica has historically negotiated with landowners and developers to provide community facilities and services by means of the state approved development agreement process. Some of the most visible benefits derived from these agreements have been public parks, the Santa Monica Swim Center, child care facilities, and affordable housing. Less apparent are contributions for numerous community-oriented endeavors such as local hiring programs and critical public infrastructure improvements. With the loss of the Redevelopment Agency funding source in 2011, developer contributions to support traditional community priorities for sustainability, open space, humanitarian and cultural goals are likely to become an even more important method to support community ideals.

The DSP process has refined the areas identified in the LUCE, including multiple sites proximate to the new light rail station, to eight possible sites that could provide exceptional community benefits such as a cultural institution, the contribution of public art that enhances the City’s cultural identity, enhanced preservation and access to a significant historic resource, significant open space that can function as a public park, public parking of over 100 spaces to be operated in the public parking network, exceptional architecture that has the potential to become a future landmark, and circulation investments that expand access in and around the downtown for all modes of transportation.





The following describes each site and the potential benefits it could provide.

Note: Each site has multiple options for community benefits to be established through DA negotiations.

Expo Light Rail Station site: This City-owned property is a critical transportation hub and could produce significant public parking spaces to intercept cars off the I-10 and minimize traffic impact to the downtown if developed with circulation improvements as a priority. Requiring an additional through site road as part of new development is under consideration. The site also has subterranean tunnel access to Sears which could provide valuable access to additional public parking allowing visitors to park immediately and avoid the intersection of 4th and Colorado.

Sears Site: This site includes the landmark Sears building and is adjacent to the future Esplanade and Expo Station. The site is connected through a tunnel to the station site, allowing for potential automobile and pedestrian enhancements. It is one of the largest sites in the downtown, allowing for the opportunity for key transit oriented development that would not impact residences as it is adjacent to the freeway. The site can accommodate ocean views, preservation of the historic resource and potential for additional circulation improvements by expanding the roadway grid with a new street or a bridge across the freeway.

Ocean and Wilshire: A proposal has been made for the renovation of the Miramar Hotel including affordable housing, pubic art, open space and improved access to the historic Moreton Bay fig tree. Careful consideration of the Ocean Avenue and Wilshire edges could improve the pedestrian experience and provide a key link between Ocean Avenue and the Third Street Promenade enlivening the Ocean Avenue experience.

Ocean/2nd and Santa Monica Blvd: This large ocean-view site houses two landmark structures. A proposal has been submitted on this site including a hotel, affordable housing, a museum, preservation and reuse of two landmarked buildings and featuring a design by the architect Frank Gehry. As in the Miramar site, consideration of the pedestrian interface and improved linkages would enliven the Ocean Avenue experience as well as link to the downtown core.

Ocean/Colorado: A proposal for the current Wyndham Hotel (formerly the Holiday Inn) was recently submitted, including a rebuilt hotel, improvements to the Esplanade, affordable housing and a bicycle sharing pad. Community benefit opportunities for this site could also include bridging/decking to the new park, contributions to the Esplanade and other connectivity improvements at this pedestrian and bicycle hub.

4th/5th and Arizona: The community visioning for this City-owned site resulted in community benefits priorities that focused on providing benefits for residents including a programmable open space for events and the seasonal ice rink, 339 public parking spaces, and exemplary architecture. The community input discussed the desire for iconic architecture that creates a contemporary identity for Santa Monica.

5th/Broadway: The eastern Fred Segal site could provide the type of community oriented open space that has been identified as a need in the downtown, as well to encourage connections to Lincoln Boulevard. Located in close proximity to the station, the site is an opportunity for neighborhood retail uses that serve the growing residential neighborhood nearby as well as providing an opportunity for transit oriented development.

Big Blue Bus Yards : Adjacent to the station site, this site is currently occupied with the vital City bus function. Change on this site would need to include enhancements to the Big Blue Bus service and operations. Considerable analysis about facilities to operate the BBB is required. The site is uniquely located to provide circulation improvement for vehicle and buses and reduce traffic at the 4th/5th Street intersection. To date, the DSP only proposes redevelopment of a portion, or portions, of the site, and the remainder continues to provide bus operations.

Each site has unique characteristics, but must contribute to the downtown as a whole. The DSP will provide specific guidelines for each site. All opportunity sites which are developed to an expanded zoning envelope with significant community benefits would be processed as development agreements. The discussion to date has not determined the appropriate expanded zoning envelope limits for the eight opportunity sites.

CEQA Review of Opportunity Sites: The development parameters of DSP opportunity sites must be defined and studied in the PEIR. An essential requirement of an adequate EIR is a stable, finite project description. The DSP must identify the outside parameters for opportunity site development in order to comply with this basic principle. If the opportunity sites were not specified in the DSP, the EIR could not predict and adequately study the physical environmental impacts of the projected DSP area land use proposal. Second, state land use law and the City's Municipal Code provide that specific plans must identify the goals, policies, and development standards applicable to the land within a specific plan area. (See Gov. Code § 65451(a) and SMMC § 9.04.20.18.140 which provide "a specific plan shall include....(3) Standards and criteria by which development will proceed....") Third, the LUCE itself requires consistency with this requirement of state and local law on p. 2.1-48, where it states: “The height and FAR along with other development standards such as setbacks and step backs for the Downtown designation will be determined through a Specific Plan process.” This is further reflected in LUCE Policy D14.1, which provides: “Implement a new Downtown Specific Plan to determine the appropriate range of building heights in the district...“ (p. 2.6-17). Finally, in order to approve the development of opportunity sites through development agreements, the Council is required to make general and specific plan consistency findings. The DSP will provide the goals, policies and standards for opportunity sites necessary to make the required findings to approve a development agreement.

To assist decision makers and the community, this report recommends that a range of scenarios for the opportunity sites be identified and studied through CEQA analysis, so that rigorous technical and impact analyses can inform the discussion about the appropriate final maximum height and FAR for these eight sites. In the context of programmatic general and specific plans, CEQA regulations provide for the analysis of the reasonable potential future changes in order to have an adequate discussion of significant cumulative impacts (the "summary of projections" methodology). In some cases, a revised or reduced project can be approved based on the findings of the CEQA analysis. After evaluating scenarios to determine potential impacts and mitigations, This staff report outlines a recommended range of options to be studied. This is not an approval of a plan, but rather identification of the initial DSP project description, the analysis of which will include the maximum development potential and several options of lower intensity. Studying the range of scenarios allows decision makers to compare alternatives and impacts in their review.

Maximum Height: The city has engaged in a long-standing urban design dialogue that discusses the benefits of providing maximum access to light and air with ground floor open space, upper level setbacks and step-backs in exchange for additional height. The dialogue stems from the understanding that blocky low buildings, when experienced from the pedestrian level, can have greater impacts to light and air, than taller more slender buildings, which are set back at the upper levels. The downtown provides a good example of this on the Third Street Promenade where the taller buildings are designed to feel low-scale at the pedestrian level but achieve heights to 84 feet at the upper levels, which are significantly set back from the street to ensure sunlight on the Promenade for most of the day. The 4th and 5th and Arizona discussions from 2011 also represent an example where community members were interested in accepting greater height with more slender structures in order to provide additional community open space at the ground level and a permanent home for the ice rink.

In Santa Monica additional height can also translate into increased revenue on upper floors with ocean views, also providing the flexibility to shape FAR into buildings that provide the modulation to minimize shade and shadow impacts. Preliminary sample pro- forma evaluation shows that a building with the same floor area, but an ocean view, can provide additional revenue to the developer. This allows for the possibility of negotiating Development Agreements that can, in turn, provide additional community benefits for the City. This report requests consideration of a CEQA analysis that includes as a DSP option a scenario that evaluates opportunity sites at heights greater than 84 feet, capturing ocean views and allowing for building modulations, setbacks and stepbacks, so the impacts may be analyzed in comparison to a scenario for buildings with a maximum height of 84 feet.

Design for Taller Buildings: The DSP team developed a methodology that uses the podium height of the historic Bay Cities Guaranty Building (clock tower) as a datum to calculate potential heights for the opportunity sites. This approach respects the building as a recognizable and revered downtown landmark that should not be obscured by the new tall buildings. The podium of the building – the portion that extends from the street

to the base of the clock tower – is approximately 140’ in height. From this point 5’ feet was subtracted, allowing the Clock Tower building to dominate the others in height, and a horizontal line was drawn to provide a datum that will guide the establishment of building heights for the opportunity sites. The topography of the predominant viewshed slopes downward from east to west, dropping approximately 25’ between the eastern and western edge of the downtown district. This sloping topography allows for a range of heights that increase moderately from east to west while respecting the datum height and the view of the clock tower as depicted above. For example, a building near 6th Street with an Ocean view would be approximately 120’ high. Based on this premise, staff is considering maximum heights for the opportunity sites ranging between 120’ on the most eastern opportunity site to 135’ on the most western sites.

Opportunity Site Density (FAR): The DSP is not proposing additional density for opportunity sites. The intent is that each site would be subject to the maximum FAR of its subarea. Based on analysis for the 4th/5th and Arizona project site, scenarios with improved open space performed better if slightly taller, but it was not critical for an increase in density to accompany an increase in height in order for the scenarios under consideration to be economically feasible.

The DSP team suggests that the Council consider the following scenarios for the opportunity sites for the purpose of proceeding with CEQA analysis that will determine potential impacts.

Five Sites Proximate to the Expo Station and Freeway Access: Sears, TOD, 4th/5th & Arizona, Fred Segal, BBB

In the chart below, staff has identified three maximum height and FAR scenarios that could be studied in the PEIR for the five opportunity sites that are closest to the Expo Station and freeway access. The height limits in each scenario are as follows:

Scenario 1. No change to current zoning standards

Scenario 2. The maximum standards as proposed at the January 23, 2013 Planning Commission meeting (Attachment B). Scenario 2 would treat opportunity sites the same as the rest of downtown by applying the same development standards as the subarea in which they are located.

Scenario 3. This scenario evaluates opportunity sites at heights greater than 84 feet by allowing:

130 feet maximum on 4th St.

125 feet maximum on 5th St.

125 feet maximum on 6th St.

CEQA ANALYSIS SCENARIOS FOR OPPORTUNITY SITES Site(s) Scenario 1 Current Zoning Scenario 2 DSP Tier 3 Scenario 3 Opp. Site Standards SEARS & TOD Height – 45’ FAR – 3.5 Height – 84’ FAR – 4.0 Height – 130’ FAR – 4.0 Fred Segal Height – 76’ FAR – 4.5 Height – 76’ FAR – 3.5 Height – 125’ FAR – 3.5 4th/5th & Arizona (split zoned) Height – 76’ FAR – 4.5 Height – 76’ FAR – 3.5 Height – 130’ FAR – 3.75 Height – 84’ FAR – 6.5 Height – 84’ FAR – 4.0 Big Blue Bus Height – 45’ FAR – 1.5 Height – 60’ FAR – 3.5 Height – 125’ FAR – 3.5

Ocean Avenue Sites: Miramar, Ocean Hotel, Wyndham

For each of the three Ocean Avenue opportunity sites, the maximum height limits in the three identified scenarios are as follows:

1. No change to current zoning

2. The maximum standards as proposed at the January 23, 2013 Planning Commission meeting (see Attachment B). Scenario 2 would treat opportunity sites the same as the rest of downtown by applying the same development standards as the subarea in which they are located.

3. This scenario evaluates the Ocean Avenue opportunity sites at 135 feet maximum.

CEQA ANALYSIS SCENARIOS FOR OPPORTUNITY SITES Site(s) Scenario 1 Current Zoning Scenario 2 DSP Tier 3 Scenario 3 Opp Site Standards Miramar Height – 45’ FAR – 2.5 Height – 50’ FAR – 2.5 Height – 135’ FAR – 2.5 Ocean Hotel Height – 45’ FAR – 2.5 Height – 50’ FAR – 2.5 Height – 135’ FAR – 2.5 Wyndham Height – 45’ FAR – 2.5 Height -84 FAR-4.0 Height 135 FAR 4.0

If the Council chooses, Alternative Action #1 below includes the option for additional minor FAR bonus for opportunity sites with uses that generate a lesser amount of traffic, such as affordable housing and hotels.

Site Specific Design Guidelines : Each of the eight opportunity sites under consideration reflect very different conditions, location, and site specific opportunities and concerns. Each site would be expected to meet the overarching standards and guidelines such as, but not limited to, contributing to the public realm, pedestrian orientation, walkability and multimodal circulation. The Specific Plan would also set out guidelines for building massing, access to light and air, upper level floor plate limitations, and maximum building widths and separation between massing elements over a certain height. A combination of standards and flexible performance criteria would provide opportunity for creativity and exemplary architecture. The March 6, 2013 Planning Commission staff report includes a discussion of an open space network to be considered, which identifies potential open space options for the downtown as a whole including the opportunity sites. The report also included site specific recommended circulation diagrams for each opportunity site.

Inclusion of Current Applications in DSP Approach: Three project proposals for hotels along Ocean Avenue are not consistent with the 1984 General Plan or the Zoning Code. These applications have not yet been analyzed as part of the DSP, and were submitted by property owners separate from the ongoing formal process for the DSP. Typically, applications that request project approvals which are inconsistent with the maximum development standards allowed in the General Plan must be accompanied by a General Plan Text Amendment for Council consideration. To provide a fair and consistent process during the period prior to the adoption of the DSP, while new development is subject to a temporary Interim Zoning Ordinance, current practice is to accept all development agreement applications submitted with the appropriate fees. Acceptance of applications does not pre-suppose or imply approval, as these development agreement projects are required to undergo a multi-step community process, including Council authorization to proceed to negotiations and Planning Commission and City Council hearings.

If the heights and FAR parameters included in the DSP program description and studied in the PEIR are less than those proposed by these project applicants, and the adopted DSP authorizes a smaller development envelope for these sites, then the additional impacts of these proposed projects will require their own separate environmental analysis and project applicants will be required to seek concurrent amendment of the DSP, a process authorized by state law. Alternative Action #2 below allows for inclusion of these applications in the EIR analysis, which would result in an analysis which compares the proposed height for the pipeline Ocean Avenue hotel projects with the recommended DSP heights.

Next Steps

Following Council direction, staff will direct the environmental consultant team to proceed with review for the DSP in accordance with the requirements of the California Environmental Quality Act (CEQA). Staff anticipates the following community outreach:

· Notice of Preparation (NOP) scoping meeting where staff and consultants will outline the project to be studied in the EIR

· Updates to neighborhood groups, boards, commissions as invited and agendized

· Return to PC and City Council with a draft Specific Plan

· Community meetings on the draft DSP

Alternative Actions Council may wish to consider the following alternatives in addition to the staff recommendation, or as modified by Council:

Direct staff to proceed with the PEIR using height and density options that do not exceed those proposed for Tier 3 projects (76-84 feet maximum) as the basis for the required project description to commence CEQA analysis.

Responds to some community requests but could reduce the opportunity for exceptional community benefits and provides less flexibility for building modulation to ensure access to light and air.

Direct staff to proceed with the PEIR using the height and density options proposed in this report, and, in addition, analyze the maximum heights and densities proposed in current opportunity site pipeline projects as an additional alternative to be analyzed to a project level of detail in the CEQA analysis.

Allows for a full project level analysis of the Ocean Avenue sites as proposed but does not respond to the community request to consider lower maximum heights.

Consider additional density bonus for opportunity sites with uses that generate minimal trips such as affordable housing and hotels.

Incentivizes uses with lowest trip production but could increase bulkiness of buildings.

Circulate a draft framework plan and return to Planning Commission and City Council for additional public review in advance of preparing the CEQA Document

Allows for public circulation of a document that combines all the information presented date, but would delay project completion by a minimum of four months.

Financial Impacts & Budget Actions

There is no immediate financial impact or budget action necessary as a result of the recommended action. Prepared by: Sarah Lejeune, Principal Planner

Travis Page, Associate Planner

Approved: Forwarded to Council: David Martin, Director Planning and Community Development Department Rod Gould City Manager