PCD:SF:AS:LBE:F:\PLAN\SHARE\COUNCIL\STRPT\2004\Auto Dealerships Study Session.doc

Council Mtg:  September 28, 2004                                                      Santa Monica, California

                                  

TO:              Mayor and Councilmembers

 

FROM:        City Staff

 

SUBJECT:  Discussion and Public Hearing Regarding Proposed Policy Revisions Related to Auto Dealership Development Standards in Commercial, Industrial, Residential and Parking Overlay Zones and Discussion of Implementation Options.

 

 

INTRODUCTION

 

This report recommends that the Council review Planning Commission and staff recommendations regarding changes to the Municipal Code regulations pertaining to auto dealerships in commercial and industrial zones in the City, as well as residential parcels and parcels with Parking Overlay (“A”) designations at existing dealerships. The report recommends that the Council hold a public hearing and direct staff to draft an interim ordinance for implementation of revised standards that would apply to auto dealership development pending the overall revision of the Zoning Ordinance.  Following Council discussion and direction, environmental review on the proposed amendments will be conducted and the proposed interim ordinance and associated environmental document will be presented for Council adoption.

 

BACKGROUND

Auto dealerships have a long history in the City of Santa Monica, going back as early as the 1920s, with the establishment of Claude Short Dodge and W.I. Simonson Mercedes.  By the 1950s and 1960s, a number of other brands were being sold with dealerships concentrated along a stretch of Santa Monica Boulevard between 9th Street and the City’s east boundary.  Several used car dealerships and other automotive uses are located in the City, primarily along Lincoln Boulevard, where such uses also extend into the City of Los Angeles. Some Santa Monica auto dealerships pre-date the residential development that now surrounds them, while others pre-date the intensity of that development.  The combination of higher density residential development and increasing pressure on dealerships with relatively small land areas has fueled conflict over the years between auto dealerships and the surrounding residents. 

 

In February 2001, a group of auto dealers, dissatisfied with the development potential for expansion in their existing locations or in the nearby vicinity, presented the City with a study prepared by the consulting firm Hamilton, Rabinovitz & Alschuler, Inc. (HR&A), (Attachment E).  The study outlined the auto dealers’ concerns with the Zoning regulations and made specific recommendations for amending the current standards.  These recommendations also included proposals for imposing operational requirements that would apply to existing dealerships. Recognizing the economic importance for the City of retaining these businesses, the Council directed the Planning Division to study the auto dealers’ concerns as well as to analyze conflicts with neighboring residential uses.  The consultant team of Cotton/Bridges/Associates, Moore Iacofano Goltsman, Inc. (for community participation facilitation) and Economics Research Associates (for economic background and analysis), were hired to review the HR&A study, independently evaluate the issues involved and recommend proposals for amending the City’s policies regarding automobile dealership uses. 

 

The twin goals in this process have been to find workable, meaningful solutions that provide sufficient incentive for dealers to invest in improved facilities, while increasing protection of neighboring residential uses by requiring development and operational standards that mitigate the adverse neighborhood impacts. 

 

ANALYSIS

Defining the Issues

The report and recommendations prepared by Cotton/Bridges/Associates (Attachment C) expand on the information gathered over the last six months from auto dealers and neighboring residents through a series of meetings and surveys.  The consultant team met individually with owners of new auto dealerships in May 2003 in order to understand automobile dealership operations more fully.  Community meetings were conducted on June 3, 2003, and on October 21, 2003.  The first meeting was to obtain an understanding of neighboring residents’ concerns and the second meeting was to discuss and obtain comments regarding potential Zoning Ordinance amendments. 

 

The issues defined through this community outreach process are summarized in the April 21, 2004 Planning Commission report (Attachment B).

 

Economic Analysis

While the HR&A report included a comprehensive analysis of the demands placed on auto dealers due to the economic situation of their industry, staff commissioned an independent study (Attachment C), conducted by Economic Research Associates (ERA) to examine the trends in auto dealerships, in order to make certain that the City’s policy development would be based on an unbiased source (Attachment D).  ERA confirmed much of HR&A’s data regarding the contribution of auto dealerships to the City budget and found that while Santa Monica dealerships have increased revenue over the last few years, it has not increased at the rate experienced in larger auto mall dealerships.  The report points to a pressing need for the City to revise its policies in some way in order to retain these businesses and their tax contributions in the coming years.

 

Policy Recommendations

The Planning Commission held two hearings (April 21 and June 2) at which they received staff reports and public input.  Speakers at the meetings included both auto dealer representatives and City residents.  The discussion was completed on June 16, 2004,with recommendations that are summarized below, presenting both the Commission’s and staff’s recommendations for the Council’s consideration.  Additional background on each issue is included in the April 21, 2004 Planning Commission report.

 

 

1.                  Relocation to Industrial Conservation District (M1) & Light Manufacturing Studio District (LMSD)

Planning Commission Recommendation

The Commission noted strong opposition to the concept of developing an auto mall in Santa Monica, and did not believe that the option of dealership relocation would have great impact.  However, they could foresee circumstances in which it would be acceptable to allow automobile sales, in addition to the repair already permitted, in these industrial zones and favored allowing but not strongly encouraging the use.  Therefore, they recommended maintaining the CUP requirement in the LMSD zone and adding the same entitlement in the M1 Zone.

 

Staff Recommendation

Staff recommends allowing the automobile sales use in the M1 District through a Performance Standards Permit (PSP) for projects less than 7,500 square feet, and requiring a CUP for developments above this threshold.  Staff believes that the M1 zone is at least as appropriate for auto sales as the commercial zones, and should have the same incentives as the commercial zones for auto dealers interested in this possibility. Staff favors this approach as providing more predictability for applicants based on requiring clear performance standards to ensure compatible development.

 

Due to the uncertainty regarding the direction of the LMSD Zone and recent discussions that have taken place on the zone’s character, staff agrees with the Planning Commission that the CUP requirement should remain in an Interim Ordinance. 

 

Staff agrees with the Commission’s concerns regarding auto mall development, which is not compatible with Santa Monica’s character.  Staff does not believe that allowing some staff-level (PSP) threshold for approval of auto sales development in the M1 Zone will result in the formation of an auto mall due to high land costs and lack of available and suitable property in this zone.

 

2.                  Floor Area Ratio (FAR) and Height Limit Adjustments

Planning Commission and Staff Recommendation

The Commission agreed with staff’s recommendation to remove subterranean uses from the FAR calculation as an incentive to develop more subterranean space for auto storage and other dealership activities and to provide flexibility to dealers in utilizing their space. The Commission also agreed that an FAR of 1.5 was sufficient for auto uses.  Although their discussion was not specific, staff understands that this recommendation was to apply in the C4, C6, LMSD and M1 zones.  Staff recommends allowing a 1.5 FAR for automobile dealerships in all four zones.

 

Staff also recommends allowing a height bonus to permit one additional story for projects that include at least one substantial subterranean level. Height should be stepped up toward the main commercial street and away from residential uses to minimize impacts on residential neighbors.  The Commission did not express concern in their discussion regarding this proposal. 

 

3.                  Rooftop and Stacked Vehicle Parking/Storage Systems

Planning Commission and Staff Recommendation

Both staff and the Planning Commission recommend allowing rooftop parking at all dealerships, exempting this use from prohibitions against rooftop parking adjacent to residential uses in the C4 and C6 zones, provided that the rooftop level is screened with a parapet of at least eight feet in height to reduce noise impacts and protect residents’ privacy.  The height of any rooftop screening should comply with the prevailing Code sections limiting projections above the height limit.

 

In regard to stacked parking systems with mechanical lifts, it is recommended that language be adopted that specifically permits use of these systems for storage, encouraging them in subterranean garages and permitting them with screening and a minimum distance from residential uses if located above ground.

 

4.         Use of parcels in existing dealerships with Off-Street Parking “A” Overlay District designations (“A-Lots”)

Planning Commission Recommendation

Staff and Commission agreed that development of parking structures on Parking Overlay “A” lots that are used in conjunction with existing dealerships should be permitted.  It should be noted that this represents a policy shift in relation to “A” lot use specifically to encourage retention of the City’s auto dealerships.  While staff recommends allowing these structures based on the height of the underlying zoning, as described below, the Commission recommended allowing a maximum of 23 feet regardless of underlying zoning, including screening if rooftop parking is included.

 

The Commission also recommended setbacks for parking structures adjacent to residential uses of 10 feet from the side property line and 20 feet from the rear property line, consistent with the Auto Dealers Task Force recommendation.  The Commission specified that substantial landscaping should be provided along the side setback on the residentially abutting side, with security fencing to prevent access to the area.

 

The Commission agreed with staff’s recommendation to permit flexibility to use the parking structures permitted through these regulations for any vehicle storage or parking use.  At the same time, the Commission expressed support for prioritizing provision of employee parking.

 

Staff Recommendation

Staff recommends allowing parking structures on “A” lots to be utilized for either employee and customer parking or auto storage.  In order to encourage subterranean development and more efficient “A”-lot use, staff continues to propose allowing auto storage/parking structures subject to the underlying zoning district height limit, in conjunction with development of at least one subterranean floor.  The underlying zoning for these lots is either R-2 or R-3, which limit height for flat-roofed structures to two stories and 23 feet, and three stories and 35 feet, respectively.  Staff agrees with the Commission’s recommendation to allow rooftop parking on these structures within the height limit, screened with an eight-foot parapet that provides privacy to neighbors on all sides of the building. 

 

Staff recommends requiring that “A” lot parking structures comply with the setbacks of the underlying zoning district, with a maximum side setback of 7 feet and landscaping in the areas adjacent to residential uses.  As the A-lots are generally 50 feet wide, staff believes that a 10-foot side setback and 20-foot rear setback would impede provision of required vehicle maneuvering area, while providing minimal incremental benefit vis-à-vis the relationship between the structure and the adjacent residential building. In addition, staff is concerned about the security of the wider, open spaces that extended setbacks would create. Staff proposes exempting parking dealership structures from additional multi-family stepback provisions that would present a hardship for parking structure design.  Sides of the property abutting commercially zoned properties would not require any setback.

 

5.                  Residentially-zoned “R” lots with existing automobile dealership uses

Planning Commission Recommendation

Citing a long-term historic use of residentially-zoned lots within auto dealerships, the Planning Commission recommended that these residential lots should be allowed to be further developed for use as parking structures, in the same manner as recommended for “A” lots.  The intention would be that these parking structures could only be used for the adjacent dealership and would need to be demolished if the dealership use ceased.  One suggestion was that dealers post a bond at the time of construction to be used to finance the demolition.  The maximum height to be allowed would be 23 feet, for either two stories or one story with a rooftop level and screening as described above for “A” lots.

 

Staff Recommendation

Although staff recognizes that some individual dealers would benefit from more liberal use of their residential lots, staff continues to believe that such entitlement is an undesirable long-term policy, which will permanently erode potential for neighborhood improvement.  Furthermore, development of auto sales uses on residential properties is contradictory to the Land Use Element’s goals and policies for multi-family areas.  In the context of an Interim Ordinance, the Council would need to identify a threat to the public welfare that would justify allowing this inconsistency with the General Plan.  

 

Staff, therefore, recommends requiring dealerships with both “A” lots and “R” lots to release the “R” lot in exchange for receiving more development rights on the “A” lot.  However, if there are specific circumstances in which development of a dealership’s “R” lot(s) would benefit the surrounding neighborhood, the parcels involved could be considered through the Zoning Map Amendment process for Parking Overlay “A” designation.  If a parcel is not found to be appropriate for an “A” overlay, it is likewise not appropriate for long-term development of an auto dealership facility.

 

Staff also recommends that when any development is proposed involving a dealership with a residential lot(s) not proposed for removal, then screening, landscaping and other aesthetic improvements on the residentially zoned lot should be required as an approval condition to alleviate some of the noise, light, glare and aesthetic impacts on the neighboring residential uses. 

 

6.                  Approval Processes

Planning Commission Recommendation

The Commission embraced the concept of requiring more specific design standards and allowing development up to 7,500 square feet based on a Performance Standards Permit in the C4 and C6 zones. Thereafter, they recommend requiring a Development Review (DR). However, they recommend that all parking structures on “A” and “R” lots be subject to a DR. 

 

Staff Recommendation

Staff also recommends allowing staff-level approval through a Performance Standards Permit up to the current DR threshold of 7,500 square feet for the C4, C6 and M1 zones.  As explained above, staff does not recommend allowing construction of parking structures in R zones, but in cases in which an “A” overlay-zoned parcel is included within a larger project involving commercially zoned structures, staff recommends the same threshold of 7,500 square feet for staff-level approval.

 

All projects would continue to require Architectural Review Board approval.  The City’s Urban Designer would review projects at all levels to achieve higher quality design and improve each project’s compatibility with the neighborhood.

 

7.                  Temporary Use Permits

Planning Commission and Staff Recommendation

The Commission agreed with staff’s recommendation to adopt a process for issuing Temporary Use Permits (TUPs) for auto dealerships in conjunction with issuance of a building permit for redevelopment of an existing auto dealership.  Temporary relocation of repair functions would be allowed only in the LMSD and M1 zones, not adjacent to residences, and the TUP would be valid for long enough to reasonably allow completion of construction, with an opportunity for one 6-month extension.  This proposed term of validity is longer than the current Code’s allowance for other temporary uses in order to address the unique situation of auto dealerships, which can be temporarily accommodated on a vacant lot with minimal structure and no additional construction.  It is recommended to include operational conditions similar to the performance standards established in the Code, and to require temporary sound barriers if the site is within 100 feet of a residential use. 

 

Also recommended is a short-term TUP process which would allow quick administrative approval for auto storage in the LMSD and M1 Zones for periods up to three months annually per dealer per location to provide a legal means for the dealers to facilitate the cyclical needs for inventory stock associated with auto dealerships.

 

8.                  Enforcement

Planning Commission Recommendation

While enforcement is a separate issue and not necessarily to be included in the Interim Ordinance, the Planning Commission recommended that the City consider appointing an ombudsperson to investigate complaints regarding auto-related uses (dealerships and repair facilities) that neighbors feel are not properly handled.  In response to staff’s explanation of the current organization of the Code Compliance Division, the Commission recommended that the City increase publicity regarding how to contact officers specifically assigned to Zoning Ordinance violations, in order to more effectively address violations that impact the surrounding residents’ quality of life.

 

IMPLEMENTATION THROUGH AN INTERIM ORDINANCE

Automobile dealership standards have been under discussion for well over a year and both auto dealers and their neighbors have developed expectations that these issues would be addressed in the immediate future.  The Council’s request that staff study the needs of auto dealerships and neighborhood concerns associated with these uses predates the City’s plan for a comprehensive review of land use and zoning policies.  The General Plan Land Use Element and Zoning Ordinance update process is now underway, and is anticipated to be a two-year project.  In light of this situation, both staff and the Planning Commission are recommending that the Council adopt an interim ordinance to immediately revise some regulations, addressing current Code language that has been discouraging long-term investment in this important sector of the local economy for too long and thereby delaying enclosure of operations that would protect surrounding residents.  Interim policy would then be reevaluated and refined through the zoning ordinance revision process.

 

BUDGET/FINANCIAL IMPACT

The recommendation presented in this report does not have any budget or financial impact.

 

RECOMMENDATION

It is recommended that the Council hold a public hearing and direct staff to conduct environmental analysis in compliance with the California Environmental Quality Act (CEQA) and prepare an interim ordinance to implement revised policy regarding automobile dealerships. 

 

Prepared by:              Suzanne Frick, Director

                                    Amanda Schachter, Planning Manager                                                    

                                    Elizabeth Bar-El, AICP, Associate Planner

                                    City Planning Division                                                                                                                                                        Planning and Community Development Department


 

Attachments:

 

A.     Notice of Public Hearing

B.     April 21, 2004 & June 2, 2004 Planning Commission staff reports

C.    Policy Recommendation Report, prepared by Cotton Bridges Associates

D.    Economic Background Report, prepared by Economic Research Associates

E.     HR & A Report, 2001


ATTACHMENT A

 

NOTICE OF PUBLIC HEARING


NOTICE OF A PUBLIC HEARING

BEFORE THE SANTA MONICA CITY COUNCIL

 

SUBJECT:        Public Hearing of Proposed Revised Auto Dealership Standards

 

 

The City Council will hold a Public Hearing on Proposed Policy Revisions Related to Auto Dealership Development Standards in Commercial, Industrial, Residential and Parking Overlay Zones and Discussion of Implementation Options.

 

DATE/TIME:      TUESDAY, September 28, 2004, AT 6:45 p.m.

 

LOCATION:       City Council Chambers, Second Floor, Santa Monica City Hall

                        1685 Main Street, Santa Monica, California

 

HOW TO COMMENT

The City of Santa Monica encourages public comment. You may comment at the City Council public hearing, or by writing a letter. Written information will be given to the City Council at the meeting.

 

Address your letters to:              City Clerk

                                                Re: Auto Dealership Standards

                                                1685 Main Street, Room 102

                                                Santa Monica, CA 90401

 

MORE INFORMATION

If you want more information about this project or wish to review the project file, please contact Elizabeth Bar-El, AICP, at (310) 458-8341, or by e-mail at elizabeth-bar-el@santa-monica.org. The Zoning Ordinance is available at the Planning Counter during business hours and on the City’s web site at www.santa-monica.org.

 

The meeting facility is wheelchair accessible. For disability-related accommodations, please contact (310) 458-8341 or (310) 458-8696 TTY at least 72 hours in advance. All written materials are available in alternate format upon request. Santa Monica Big Blue Bus Lines numbered 1, 2, 3, 5, 7, 8, 9, and 10 serve City Hall.

 

Pursuant to California Government Code Section 65009(b), if this matter is subsequently challenged in Court, the challenge may be limited to only those issues raised at the public hearing described in this notice, or in written correspondence delivered to the City of Santa Monica at, or prior to, the public hearing.

 

ESPAÑOL

Esto es una noticia de una audiencia pública para revisar applicaciónes proponiendo desarrollo en Santa Monica.  Si deseas más información, favor de llamar a Carmen Gutierrez en la División de Planificación al número (310) 458-8341.

 

 

APPROVED AS TO FORM:

 

___________________________

AMANDA SCHACHTER        

Planning Manager

 

F:\PLAN\SHARE\COUNCIL\NOTICES\2004\Auto Dealers Study Session.doc


 ATTACHMENT B

 

APRIL 21, 2004 & JUNE 2, 2004

PLANNING COMMISSION STAFF REPORTS


CP:AS:LBE:F:\PLAN\SHARE\PC\STRPT\04\Auto Dealer Standards Study Session. doc

Planning Commission Mtg:  April 21, 2004                                        Santa Monica, California

 

TO:              The Honorable Planning Commission

 

FROM:        Planning Staff

 

SUBJECT:  Study Session to Review and Comment on Proposed Policy and Zoning Ordinance Revisions Related to Auto Dealership Development Standards in Commercial, Industrial, Residential and Parking Overlay Zones.

 

 

INTRODUCTION

 

This report recommends that the Planning Commission conduct a study session to review and comment on recommendations regarding changes to the Municipal Code regulations pertaining to auto dealerships in commercial and industrial zones in the City, as well as residential zones with Parking Overlay (“A”) designations. The report recommends that the Commission review staff’s recommended policy changes and provide comments for City Council consideration.  Following Council discussion and direction, environmental review on the proposed text amendments will be conducted.  The proposed ordinance and associated environmental document will then be presented for Commission consideration and Council adoption.

 

BACKGROUND

 

Auto dealerships have a long history in the City of Santa Monica, going back as early as the 1920s, with the establishment of Claude Short Dodge and W.I. Simonson Mercedes.  By the 1950s and 1960s, a number of other brands were being sold with dealerships concentrated along a stretch of Santa Monica Boulevard between 9th Street and the City’s east boundary.  Several used car dealerships and other automotive uses are located in the City, primarily along Lincoln Boulevard, where such uses also extend into the City of Los Angeles. Some Santa Monica auto dealerships pre-date the residential development that now surrounds them, while others pre-date the intensity of that development. 

 

The higher density residential development and increasing pressure on dealerships with relatively small land areas has intensified the points of conflict between surrounding residents and the auto dealerships.  Over the years, the City has received regular complaints regarding dealership operations specifically with regard to the use of alleys, noise, lighting, glare, off-loading inventory, test-driving, repair work and customer and employees parking on residential streets.  The overall parking shortage in the vicinity of the auto dealerships has given rise to conflicts over use of street parking, resulting in the creation of many permit-parking zones in the residential streets adjacent to Santa Monica Boulevard.  City staff has also heard on many occasions that neighbors are dissatisfied with the responses to their complaints from City Police and Code Compliance.  Often, complaints are hard to document because the source of the disturbance is no longer present when officers arrive.

 

The auto dealers have similarly been dissatisfied with the development potential for expansion in their existing locations or in the nearby vicinity.  In February 2001, a group of auto dealers presented the City with a study prepared by the consulting firm Hamilton, Rabinovitz & Alschuler, Inc. (HR&A).  The study outlined the auto dealers’ concerns with the Zoning regulations and made specific recommendations for amending the current standards.  These recommendations also included proposals for imposing operational requirements that would apply to existing dealerships. Recognizing the economic importance for the City of retaining these businesses, the Council directed the Planning Division to study the auto dealers’ concerns as well as to analyze conflicts with neighboring residential uses.  The consultant team of Cotton/Bridges/Associates, Moore Iacofano Goltsman, Inc. (for community participation facilitation) and Economics Research Associates (for economic background and analysis), were hired to review the HR&A study, independently evaluate the issues involved and recommend proposals for amending the City’s policies regarding automobile dealership uses. 

 

The twin goals in this process have been to find workable, meaningful solutions that provide sufficient incentive for dealers to invest in improved facilities, while increasing protection of neighboring residential uses by requiring development and operational standards that mitigate the adverse neighborhood impacts. 

 

ANALYSIS

 

Defining the Issues

 

The report and recommendations prepared by Cotton/Bridges/Associates (Attachment B) expand on the information gathered over the last six months from auto dealers and neighboring residents through a series of meetings and surveys.  The consultant team met individually with owners of new auto dealerships in May 2003 in order to understand automobile dealership operations more fully.  Community meetings were conducted on June 3, 2003, and on October 21, 2003.  The first meeting was to obtain an understanding of neighboring residents’ concerns and the second meeting was to discuss and obtain comments regarding potential Zoning Ordinance amendments.  Additionally, auto dealer focus group meetings were conducted on October 9, 2003 to discuss preliminary concepts for Zoning Ordinance amendments.  Economic Research Associates (ERA) has prepared an economic analysis (Attachment C) that examines the trends in auto dealerships, comparing Santa Monica’s situation with other jurisdictions in which dealerships are located.  This input has focused and refined the issues that staff’s policy recommendations aim to address.

 

Neighborhood issues that were widely cited at the two community meetings and in surveys and letters include:

 

o                                                                Misuse of Alleys: Test-driving, deliveries, unkempt trash, car repair and double-parking, and speeding.

 

o                                                                Parking Conflicts: Inadequate on-site customer and employee parking leading to use of residential street parking by employees and customers.  Some of this has been alleviated through permit parking districts, but some districts have not been approved and there are reports of employees obtaining guest parking passes.

                                                                                              

o                                                                Noise Impacts: Car alarms, music, loud speakers, mechanical equipment (particularly compressor-driven tools); lack of adequate noise barriers between dealerships and residential areas; noise from idling delivery trucks.

 

o                                                                Impacts during vehicle deliveries: Delivery trucks left running while offloading vehicles; side streets blocked/impeded by delivery trucks; unconcerned delivery staff; deliveries during evenings and weekends.

 

o                                                                Rude employee behavior: Employees undertaking disruptive activities, speeding in alleys and exhibiting disrespect to protesting neighbors; lack of follow-up from dealership management when informed. 

 

o                                                                Visual impacts/lighting: Nighttime glare into residential units; some lighting impacts have been abated through removal of lights, but conflicts remain, especially where residential windows are oriented toward open vehicle storage lots.

 

o                                                                Problems in enforcement of regulations: City not responsive in enforcing rules; many incidents happen at night; police do not respond and say that it is not a priority.

 

Santa Monica auto dealership owners’ concerns were generally centered on the challenges they face in adapting to the dynamic business climate surrounding auto sales.

                                                                                                                                

o                                                                Facility-related concerns: Santa Monica facilities are smaller than those of newer dealerships in other parts of LA County, which are preferred by manufacturers; dealers cannot fit all of their sales stock on-site and must patch together a network of off-site locations for auto storage; dealers are concerned about their ability to maintain long-term business viability within present facilities; dealers need to increase repair capabilities because new car sales are a large part of dealership volume, but profits are in repair; redevelopment of a dealership places a temporary burden on the business during construction and the Zoning Code does not allow for issuance of temporary use permits to keep the business going during construction.

 

o                                                                Trends to follow: Consolidation of dealerships into large chains selling several brands of cars; district branding to create identifiable “auto rows,” such as in Van Nuys and Glendale, allowing dealerships to advertise together and offer shopping convenience; the unknown impact of internet sales potential; local competition anticipated from Culver City, Hawthorne, Carson, and for some brands, Glendale and the San Gabriel Valley; incorporation of rental agencies within dealerships; growing product lines and “spin-off” brands; manufacturers requirements for updated signage and improved building appearance to improve the brand’s image.

 

Within this shifting environment, the dealers have viewed the Zoning Code and the City’s planning and building processes as too restrictive, confusing, time-consuming, and lacking incentive to encourage them to invest in site improvements.

 

Economic Analysis

 

While the HR&A report included a comprehensive analysis of the demands placed on auto dealers due to the economic situation of their industry, staff commissioned an independent study (Attachment C), conducted by Economic Research Associates (ERA) in order to make certain that the City’s policy development would be based on an unbiased source.  ERA confirmed much of HR&A’s data regarding the contribution of auto dealerships to the City budget and found that while Santa Monica dealerships have increased revenue over the last few years, it has not increased at the rate experienced in larger auto mall dealerships.  The report points to a pressing need for the City to revise its policies in some way in order to retain these businesses and their tax contributions in the coming years.

 

Parking Requirements

 

The Zoning Code requires automobile sales uses to provide parking as follows:

 

1 space per 400 sq. ft. of floor area for showroom and office, plus 1 space per 2,000 sq. ft. of exterior display area and requirements for automobile repair where applicable (2 spaces per service bay), plus 1 space per 300 sq. ft. for the parts department.

 

There is no parking requirement associated with interior automobile storage areas that are off-limits to customers. 

 

Policy Recommendations

 

Staff’s objective in this review of auto dealership standards has been to find policy solutions that offer more predictability and incentive for Santa Monica auto dealerships to redevelop or relocate their sites within the City.  The policy recommendations are intended to balance the needs of auto dealers and residents by allowing the dealers to maintain competitive, viable businesses while reducing or eliminating adverse impacts that nearby residents experience, including parking, traffic, noise, light and glare. The HR&A report concluded that the Zoning Ordinance must be revised to allow a significant increase in FAR and height limits, as already permitted in the General Plan, in order to meet the spatial needs of auto dealerships.  CBA provides a spatial analysis based on developing a hypothetical 30,000 square foot auto dealership that provides inventory storage area to meet industry standards.  Also examined is the need for increased FAR in combination with a policy shift encouraging subterranean development.  While CBA has reached similar conclusions to HR&A regarding the need for more floor area on dealership parcels, their study shows that dealership needs can be met through encouraging subterranean development along with a smaller increase in allowable FAR and height limits.

 

The recommendations would result in revisions to the City’s zoning policies to provide incentive for investment in new facilities that will improve the City’s commercial corridors where these uses are clustered, while providing benefit to adjacent residential neighborhoods.  Staff requests that the Planning Commission review the policy recommendations and forward comments to City Council regarding the following issues:

 

·               Relocation to Industrial Conservation District (M1) & Light Manufacturing Studio District (LMSD)

·               Floor Area Ratio (FAR) and Height Limit Adjustments

·                    Rooftop/Stacked Vehicle Inventory Storage

·               Use of parcels in existing dealerships with Off-Street Parking “A” Overlay District designations (“A-Lots”)

·               Residentially-zoned “R” lots with existing automobile dealership uses

·               Approval Processes

·               Temporary Use Permits

 

9.                  Relocation to Industrial Conservation District (M1) & Light Manufacturing Studio District (LMSD)

 

Currently, auto sales are not permitted in the M1 District and require a CUP in the LMSD.  Staff proposes to allow auto dealerships in both of these zones and to raise the threshold for permitting them through a Performance Standards Permit (PSP) to streamline the process.  Staff proposes to allow height levels and floor area ratios (FAR) in these two zones that would exceed the FAR to be permitted in the C4 and C6 zones as an incentive to relocate to the LMSD and M1 Districts.   To the extent that existing dealerships are able to relocate from the C4 district along Santa Monica Boulevard, the Santa Monica Boulevard parcels will then become available to allow higher quality dealership redevelopment or new development for other uses.  The benefits for residents would thus be experienced both in relationship to the M1/LMSD development, located sufficiently distant from residential uses, and in the commercial zones, where a new development would be required to meet contemporary standards to mitigate impacts on surrounding uses.  Some of the impacts to the residential neighborhood that would be eliminated or substantially reduced include noise, light, glare, aesthetics, and use of residential on-street parking for auto dealership customers and employees.

 

There are already examples of dealerships that have moved their repair functions to locations in the M1 Zone, and other potential relocations that auto dealers have discussed with Planning staff.  As this alleviates the impacts on residential neighbors of commercially zoned dealerships, staff recommends Code changes that will further facilitate these requests.

 

10.             Floor Area Ratio (FAR) and Height Limit Adjustments

 

Under the current Code, subterranean parking areas are not included as floor area, but other subterranean uses, such as repair, storage and preparation/detailing, are counted fully in determining the project’s FAR. In order to encourage more development of subterranean levels for all uses, staff recommends excluding all subterranean areas from FAR calculations.  The dealership could utilize subterranean areas for any function, including employee/customer parking, vehicle storage, vehicle preparation and auto repair.  

In conjunction with this policy, some increase in FAR in the C-4 Zoning District is still required as an incentive to develop an auto dealership facility that will meet all needs on-site. Table 3 in the CBA report identifies spatial needs for sales activities, repair, parking and storage for a prototypical dealership under different scenarios.  Significantly less above grade FAR was needed when activities are encouraged to be underground; however, some increase in allowable FAR for above-ground development is still required.  Based on this information, staff believes that a 1.5 FAR in both the C4 and C6 Zones is justified.  Staff believes that an FAR increase of this scale will provide the opportunities for expansion needed without impacting on neighboring properties because it is still relatively low density.

 

In regard to height, staff recommends allowing a height bonus for projects that include at least one substantial subterranean level. Height should be stepped up toward the main commercial street and away from residential uses to minimize impacts on residential neighbors. 

 

11.             Rooftop/Stacked Vehicle Inventory Storage

 

The current auto dealer standards permit rooftop vehicle storage, discounted by 50% in FAR calculations.  However, specific C4 and C6 Zone provisions prohibit rooftop parking adjacent to a residential parcel or to an alley that separates residential from commercial uses.  As a result, many dealerships are unable to apply this development standard.

 

Rooftop parking that is close to a residential property line and not properly screened may impact adjacent residential uses.  However, rooftop parking also offers an opportunity to provide more parking that is relatively inexpensive for a new development.  Further, screening that blocks rooftop views and ensures residential privacy combined with setbacks can mitigate its impacts.  Since it appears that even dealerships that provide Code-compliant parking often need additional parking for their employees, staff recommends allowing rooftop parking at all dealerships.  Such parking would be designated for customer and employee parking that exceeds the minimum Code parking requirement. 

 

The regulations prohibiting rooftop parking have been interpreted to include stacked parking systems with mechanical lifts because the Code does not include specific reference to these systems.  As they are becoming more widespread in use for vehicle inventory storage, staff recommends adopting language that specifically refers to use of these systems for storage, encouraging them in subterranean garages and permitting them with screening and a minimum distance from residential uses if located above ground.

 

12.    Use of parcels in existing dealerships with Off-Street Parking “A” Overlay District designations (“A-Lots”)

                                                                                                      

“A-lots” are parcels that are zoned for residential use, but are permitted to be used for off-street parking in connection with an adjacent commercial business.  “A” lots have served to widen the commercial corridors along Santa Monica and Wilshire Boulevards and to a lesser extent along Montana Avenue and Lincoln Boulevard to satisfy the increasing demand for parking.  Very limited development is allowed on these lots, which has discouraged any investment or improvement.  However, this additional parcel area has become an integral part of the auto dealerships that have A-lots, particularly since the dealerships generally do not have alternatives for expansion in commercially zoned land.

 

While commercially zoned parcels are often separated from residential uses by alleys, A-lots always abut residential properties, resulting in the potential for direct impact on an adjacent residential use.  Recommendations to expand development opportunities on these lots focus on providing incentives for dealers balanced with standards to reduce impacts and improve the quality of life in the neighboring residential area.

 

Staff recommends allowing both parking and auto storage in parking structures on “A” lots, in conjunction with dealership redevelopment.  In order to encourage subterranean development and more efficient “A”-lot use, staff proposes to allow auto storage/parking structures, subject to the underlying zoning district height limit, in conjunction with at least one subterranean floor on the A-lot.  The underlying zoning for these lots is either R-2 or R-3, which limit height for flat-roofed structures to two stories and 23 feet, and three stories and 35 feet, respectively. Since “A” lots are typically 50 feet wide, it is likely that an “A”-lot subterranean level would be developed together with a subterranean level on the adjacent commercial lot.  Staff suggests allowing both enclosed upper levels and a rooftop level for parking structures, provided that rooftop levels are screened with a parapet that provides privacy to neighbors on all sides of the building.  Development on  “A” lots would require setbacks equal to the required front setback of the underlying residential zone, with a design that is compatible as a transition to the neighborhood.  Further, substantial landscaping would be provided along the side setback on the residentially abutting side, with landscaping and screening to provide a greater buffer between the uses. The commercial side would not require a setback.

 

13.             Residentially-zoned “R” lots with existing automobile dealership uses

 

In addition to A-lots, some dealerships have residentially-zoned parcels within their site areas that are not Parking Overlay Zones and extend deeper into the adjacent residential neighborhood. Section 9.04.18.040, which calls for termination of non-conforming uses, provides an exception for these lots associated with auto dealerships, allowing them to remain provided that they are not expanded or enlarged and continue to serve an on-going commercial use.  Any policy change allowing further development of these residential parcels would contradict the City’s General Plan, including the recently adopted Housing Element, which seeks to preserve and expand opportunities for housing in the City. 

 

Past policies have not succeeded in removing non-conforming auto uses from residential land.  Staff believes that allowing dealerships with both “A” lots and “R” lots to release the “R” lot in exchange for receiving more development rights on the “A” lot would benefit both dealerships and the community.  Dealership activities would be concentrated on commercial land and “A”-lot parcels while the “R” lot would lose its non-conforming status and revert to residential use.  New residential structures should be designed to function compatibly with adjacent auto dealerships, including providing extra insulation to protect residents from noise. 

 

For development proposals involving a dealership with a residential lot that does not take advantage of the A-zone incentives and remove the dealership from the residential zone, staff recommends requiring screening, landscaping and other aesthetic improvements on the residentially zoned lot to alleviate some of the noise, light, glare and aesthetic impacts on the neighboring residential uses.