TO:
Honorable Mayor Powell and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Richard Thompson, Community Development Director
Laurie Jester, Planning Manager
Quinn Barrow, City Attorney
SUBJECT:Title
Interim Urgency Ordinance No. 14-0019 Requiring a Use Permit Prior to the Establishment of Formula Uses in the Downtown Area (Community Development Director Thompson).
ADOPT INTERIM URGENCY ORDINANCE NO. 14-0019
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council consider adopting an interim ordinance requiring a use permit prior to establishing any formula use in the downtown during the pendency of the City's study of the area.
FISCAL IMPLICATIONS:
None.
BACKGROUND:
Downtown Manhattan Beach is the heart of the community and the City has focused significant attention and resources in the area to ensure its on-going viability. The City Council has made it a priority to study the downtown area, which will include a review of the zoning and development regulations for the area, design guidelines, parking supply and management, and appropriate mix of uses based on market conditions and an economic assessment of the trade-area.
At a study session held on September 30, 2014, the Urban Land Institute (ULI) made a presentation to the City Council regarding the services they provide. After the presentation the City Council requested staff to negotiate a contract with ULI, and return to Council with an agreement for their consideration on October 21, 2014.
The City Council previously adopted, and extended, an interim ordinance prohibiting the conversion of any commercial use to a different commercial use classification in the downtown area of the City. Subsequently, the City Council directed staff to draft an interim ordinance regulating "formula uses."
DISCUSSION:
The City is currently undertaking a thorough study of the downtown area, which may result in the development of new zoning regulations for the area, a "Downtown Plan" or a Specific Plan. The Council will be considering hiring a consultant for such work on October 21, 2014. The City's study is intended to achieve the following goals:
• Create a strong sense of community identity and sense of place for the Downtown;
• Enhance the vibrancy and economic vitality of the district through an emphasis on unique and independent retailers and businesses;
• Set the stage for and contribute to business success;
• Reinforce retail, entertainment, dining and active street fronts in the Downtown to provide an attractive pedestrian oriented environment;
• Provide for the best mix of retail, commercial and service businesses;
• Boost the attractiveness of the Downtown for local residents and visitors alike;
• Strengthen the City's tax base.
The City anticipates considerable public, property owner, and business interest in its effort to determine how best to amend the regulations applicable to businesses and property in the downtown area.
In the interim, while the City studies the appropriate mix of uses for the downtown area, the City would like to maintain the status quo and prevent a proliferation of land uses that might frustrate possible future planning objectives. The City already adopted an interim ordinance prohibiting the conversion of any commercial use to a different commercial use classification in the downtown area.
The draft Ordinance attached to this staff report would further maintain the status quo and preserve, at least on a temporary basis, the downtown area's unique hometown feel by requiring a use permit for any "formula use." The draft ordinance, Attachment 1, Section 3, defines "formula" use as:
Any use that has 11 or more other establishments located in the United States, and which maintains two or more of the following features: (1) a standardized array of merchandise, (2) a standardized facade, (3) a standardized decor and color scheme, (4) standardized employee uniforms/apparel, (5) standardized signage, or (6) a trademark or a service mark.
The following is a list of the commercial uses that would be regulated by the Ordinance, if adopted, as defined by Section 10.16.020 of the MBMC.
1) Eating and Drinking Establishments including those with fast-food or take-out- (Restaurants)
2) Food and Beverage Sales- (Grocery stores)
3) Personal Improvement Services-(Instructional services such as dance and music studios, business and trade schools and fitness studios)
4) Personal Services-(Recurrent personal services such as barber and beauty salon, tailor, shoe repair, and dry cleaners)
5) Retail-(Retail sales of general merchandise)
Such list is attached as Exhibit B to the draft Ordinance. Exhibit A defines the area as the Downtown Commercial, CD Zone.
In addition to the criteria for a use permit that are found in the Zoning Ordinance (Section 10.84.060), the Planning Commission (and the City Council, if the decision on the use permit application is appealed) shall consider the following criteria in determining whether to approve an application for a use permit for a formula use:
(A) The existing concentrations of formula uses within the Downtown Area.
(B) The availability of other similar uses within the Downtown Area.
(C) The compatibility of the proposed formula use with the existing architectural and aesthetic character of the Downtown Area.
(D) The existing vacancy rates within the Downtown Area.
(E) The existing mix of uses within the Downtown Area.
Pipeline and Hardship Exemption
The draft Ordinance would not apply to any use: (1) where the property owner or business owner has made substantial expenditures in reliance on a valid building permit as of October 7, 2014; or (2) where the property already has a use permit for a particular use. For instance, if the property where Vons is located was leased or sold to Ralphs, as a formula use, Ralphs would not need a use permit solely because of this Ordinance because Von's already has a use permit for a supermarket. (Ralph's might need a use permit because of the City's existing Zoning Ordinance if it intended to expand or change the use, but, once again, not because of this Ordinance.) By contrast, Manhattan Grocery/Meats does not have a use permit and if Fresh and Easy, another formula use, wanted to occupy the space, a use permit would be required under the Ordinance.
The draft Ordinance also contains a process that provides an opportunity for any formula use to seek a hardship exemption from the use permit requirement. The City Council shall grant a hardship exemption upon making a finding that denial of the exemption and requiring a use permit would result in the applicant being deprived of all economically viable use of the property. The Council may consider other factors in order to determine hardship.
A 4/5 vote is required to adopt the proposed Ordinance on an urgency basis. If adopted, the Ordinance will expire on November 21, 2014, unless extended by the City Council at a duly noticed public hearing on or before that date. If the Council adopts this Ordinance, staff will schedule a public hearing for November 18, 2014 to consider the possible extension of the Ordinance.
CONCLUSION:
Staff recommends that the City consider and adopt the Draft Ordinance.
Attachment:
1. Draft Ordinance No. ORD U 14-0019