File #: REPORT 24-0153    Version: 1 Name:
Type: Action Item Status: Municipal Matter
File created: 3/16/2024 In control: City Council
On agenda: 4/9/2024 Final action:
Title: DISCUSSION AND CONSIDERATION OF INTERIM ORDINANCE TO PROHIBIT OFFICES AND OTHER NON-PEDESTRIAN-ORIENTED USES ON THE GROUND-FLOOR IN THE DOWNTOWN COMMERCIAL ZONE (C-2) (Community Development Director Carrie Tai)
Attachments: 1. Draft Urgency Ordinance, 2. City Zoning Map, 3. Link to Downtown Core Revitalization Strategy (2015), 4. Link to Economic and Market Study, 5. Link to Economic Development Strategy, 6. Link to PLAN Hermosa, 7. Link to April 20, 2010 Planning Commission Staff Report, 8. Link to August 22, 2017 City Council Staff Report, 9. Link to April 9, 2022 Planning Commission Staff Report, 10. Link to February 15, 2024 City Council Minutes, 11. SUPPLEMENTAL ecomments for item 14 c.pdf, 12. SUPPLEMENTAL email for item 14c from Laura Pena.pdf, 13. SUPPLEMENTAL PowerPoint

Honorable Mayor and Members of the Hermosa Beach City Council                                                                        

Regular Meeting of April 9, 2024

 

Title

DISCUSSION AND CONSIDERATION OF INTERIM ORDINANCE TO PROHIBIT OFFICES AND OTHER NON-PEDESTRIAN-ORIENTED USES ON THE GROUND-FLOOR IN THE DOWNTOWN COMMERCIAL ZONE (C-2)

(Community Development Director Carrie Tai)

 

Body

Recommended Action:

Recommendation

Staff recommends City Council:

1.                     Conduct a discussion regarding the potential prohibition of offices and other non-pedestrian uses on the ground floor in commercial areas; and

2.                     Consider an interim ordinance to protect ground-floor pedestrian-oriented uses in the City’s Downtown Commercial Zone (C-2).

 

Body

Executive Summary:

At its February 15, 2024 meeting, Councilmember Jackson requested, and Councilmembers Detoy and Saemann supported, a future agenda item to discuss an interim ordinance regarding any new ground floor office space in the City. The following report presents a background on this topic of discussion, along with a draft urgency interim ordinance requiring pedestrian-oriented uses on ground floor commercial spaces and applying building design features to achieve pedestrian orientation.

 

Background:

Definition of Office

Section 17.04.050 of the Hermosa Beach Municipal Code (HBMC) defines offices as:

 

“"General office" means facilities where, as a primary use, the administrative activities of a business are performed, such as management, personnel and financial functions, preparation of reports, business communications, personal contact with clients, and similar activities; or professional, executive, management, administrative or similar services are provided to consumers within a commercial office environment. General office includes, but is not limited to:

 

A.                     Administrative and business offices providing consumer services, including but not limited to insurance, real estate, and travel services. It may include business offices of construction and similar contractors; provided, that equipment or materials storage or vehicle fleets are not maintained onsite.

B.                     Government and public utility administrative offices. Excludes public service use or facility.

C.                     Professional services offices, including but not limited to accounting, legal, advertising or public relations, management and similar consulting services, computer and Internet technology services, design services, land development services, and offices for educational, scientific and research organizations.

D.                     Personal improvement services offices, including but not limited to counseling, tutoring and similar services. Excludes gymnasium/health and fitness center, educational institutions, medical office, beauty shops, massage therapy businesses, and similar uses.

E.                     Media production offices, including but not limited to offices for businesses specializing in computer aided video or audio media production and similar services, including the occasional use of unamplified live subjects integral to media production. Excludes communication facilities, live entertainment, and businesses utilizing live audiences.”

 

Ground-Floor Uses

The City has focused on ground-floor commercial uses since 2010, with the adoption of Specific Plan Area (SPA) 11 representing the Upper Pier Area. This focus broadened into the work for PLAN Hermosa, adopted in 2017. Staff research on this item revealed existing policy and prior discussions regarding the importance of pedestrian-oriented uses on the ground floor, as follows:

 

                     In May 2009, City Council adopted SPA-11, creating a set of regulations and standards for the Upper Pier Area. One primary goal was to retain a pedestrian-oriented village center of small-scale commercial establishments.

                     PLAN Hermosa (Page 76) provides guidance for the Community Commercial (CC) land use designation, indicating that “Uses on the ground floor are reserved for retail, restaurant, and other sales-tax revenue generating uses, while office and personal service uses are encouraged on upper floors.”

                     PLAN Hermosa (Page 76) provides guidance for Gateway/Commercial (GC) indicates that “… the ground floor should include community and regionally-oriented retail uses with upper floor high visitor office uses.”

                     PLAN Hermosa (Page 98) provides guidance for Pacific Coast highway corridor, indicating, “High-quality signage or materials and maximum transparency of ground floor uses should be provided to attract shoppers and provide visual interest to pedestrians.”

                     The Downtown Core Revitalization Strategy (2015), prepared by Roma Design Group, identified the need to promote ground-floor retail.

                     Economic Development Strategy (2020) identified the need to develop incentives for active uses on the ground floor in Downtown, as part of the Zoning Code Update.

 

Zoning Code Update

To implement the provisions of PLAN Hermosa, the City launched the Comprehensive Subdivision and Zoning Ordinance Update in 2021. The draft Zoning Code Update was presented to the Planning Commission at its April 9, 2022 meeting, during which protection of ground-floor retail uses was discussed. Planning Commission expressed support for regulations to implement this goal. The draft Zoning Code Update proposes to provide parking reduction and development standard incentives when retail and restaurant uses are proposed for the ground-floor, and to require a Minor Conditional Use Permit for non-retail/restaurant uses on the ground floor.

 

. Past Board, Commission, and Council Actions

Meeting Date

Description

April 20, 2010

Planning Commission conducts discussion on pedestrian environment on Upper Pier Avenue

August 22, 2017

City Council adopted PLAN Hermosa.

April 9, 2022

Planning Commission conducts discussion on the Zoning Code Update, including commercial uses.

February 15, 2024

City Council requests future agenda item to discuss an urgency ordinance to put a moratorium on any new ground-floor office space in the City.

 

At its February 15, 2024 meeting, City Council requested a future agenda item to discuss a possible moratorium on ground-floor office uses in the City. Moratoria are usually accomplished through an “urgency” or “interim” ordinance, which is a short-term measure adopted to address an immediate need while the City develops a longer-term solution (California Government Code Section 65858). State law authorizes an urgency measure as an interim ordinance prohibiting any uses that may conflict with a contemplated general plan, specific plan, or zoning proposal that the Council is or intends to study within a reasonable time. An interim ordinance under section 65858 requires a 4/5 vote for adoption and legislative findings that there is a current and immediate threat to the public health, safety, or welfare. Planning Commission review is not required for an interim ordinance under this section and the standard two readings before becoming effective is also not required. These interim measures are effective for up to 45 days and may be extended for just over 22 months.

 

Discussion:

There are at least 20 ground-floor spaces in the City either listed for sale or lease, including those in the downtown and other commercial corridors. Many ground-floor vacant spaces were formerly occupied by restaurants or retail uses. The following tables include known vacancies in commercial areas as of April 2024.

 

Current Vacancies

Type of Space

Address

Area

Previous Use/Tenant

Building

90 Pier Avenue

Downtown

Bank of America

Retail Space

136 Pier Avenue

Downtown

Cultured Slice

Retail Space

138 Pier Avenue

Downtown

Maison Luxe

Retail/Office Space

205 Pier Avenue

Downtown

Art Gallery

Retail/Office Space

239 Pier Avenue

Downtown

Caskey Real Estate

Retail Space

301 Pier Avenue

Downtown

Becker’s Surfboards

Retail Space

1048 Hermosa Avenue

Downtown

Dry Cleaners

Restaurant Space

1200 Hermosa Avenue

Downtown

ROK Sushi

Retail/Café Space

1309 Hermosa Avenue

Downtown

Soo Good Snack Shop

Retail Space

1401 Hermosa Avenue

Downtown

Mobi Scooter

Retail/Office Space

58 11th Street

Downtown

Nolan Capital

Retail Space

1250-1272 The Strand

Downtown

Rare Earth Coffee

Commercial Space

210 Pacific Coast Highway

PCH Corridor

Auto Repair

Retail Space

524 Pacific Coast Highway

PCH Corridor

T-Mobile

Commercial Space

700 Pacific Coast Highway

PCH Corridor

JAMA Auto

Retail Space

1200 Pacific Coast Highway

PCH Corridor

E-bike Shop

Retail Space

1600 Pacific Coast Highway

PCH Corridor

Real Estate Office

 

Non-Vacant, but Ongoing Transition Activity

Notes

Restaurant (Vista)

11 Pier Avenue

Downtown

Listed for Sale

Bank Building  (CitiBank)

81 Pier Avenue

Downtown

Listed for Sale

Retail/Office 

555 Pier Avenue

Downtown

Listed for Lease; Former Kinecta Credit Union (Pop-Up Use: Two Guns Coffee)

Retail Space (Seymour Jewelers)

1212 Hermosa Ave

Downtown

Listed for Lease

Restaurant (Pedone’s Pizza)

1332 Hermosa Ave

Downtown

Business for Sale

Restaurant  (Chef Melba’s)

1403 Hermosa Ave

Downtown

Melba’s Announced Closure

 

Allowable Uses in Commercial Zones

The City has six commercial zones, all of which allow a variety of retail, restaurant, service, office, and other commercial uses. The City Zoning Map is included as Attachment 2. Three of the commercial zones (Neighborhood Commercial (C-1), Downtown Commercial (C-2), and Upper Pier Avenue (SPA-11)) are in downtown, which is small-scale and pedestrian-oriented. The other three commercial zones (General Commercial (C-3), Pacific Coast Highway south of Pier Avenue (SPA-7), and Pacific Coast Highway north of Pier Avenue (SPA-8) are located along the Aviation Boulevard and Pacific Coast Highway Corridors, which are automobile-oriented.

 

The following table generally summarizes select common categories of commercial uses in various commercial zones.

 

 

Commercial Zoning Districts

 

Pedestrian-Oriented

Automobile-Oriented

Use Category

C-1

C-2

SPA-11

C-3

SPA-7

SPA-8

Retail

n

n

n

n

n

n

Restaurants (no alcohol)

n

n

n

n

n

n

 With alcohol

¨

¨

¨

¨

¨

¨

Offices

n

n

n

n

n

n

Personal Services

n

n

n

n

n

n

Assembly Uses

¨

¨

¨

¨

¨

¨

Automobile-Uses

---

---

---

¨

¨

¨

Manufacturing/Utility

---

---

---

¨

¨

¨

n  Generally Permitted  ¨  Extra Review Required   --- Not Permitted

 

The Zoning Ordinance currently includes provisions for pedestrian-oriented uses on a very limited basis. In the Specific Plan Area (SPA) 11, which covers “Upper Pier Avenue,” there is extensive guidance and direction to ensure pedestrian orientation, both in use and design. The existing definition in SPA-11 indicates, “"pedestrian-oriented" means uses and activities that attract, accommodate and are highly visible to people who are walking. Most prominent on the ground floor are retail uses, restaurants or snack bars <http://online.encodeplus.com/regs/hermosabeach-ca/doc-view.aspx?pn=0&ajax=0&secid=2165>, and places for people to congregate, with offices, services, and business services on second stories.”

 

The City’s C-2 zoning district does not include any provisions pertaining to ground floor uses or pedestrian orientation. This zoning district generally extends from 16th Court and Hermosa Avenue to the north, Manhattan Avenue and Palm Drive to the east, 8th Street to the south, and The Strand to the west. The C-2 zoning district extends westward from Upper Pier Avenue, which is zoned SPA-11. The continuation of the pedestrian orientation provisions existing in SPA-11 to the C-2 zoning district presents a possible temporary measure to ensure that new ground floor uses in the C-2 zoning district remain pedestrian-oriented. Given the number of vacancies, staff does not recommend a moratorium on any particular use, as this may hinder properties from being re-tenanted in an expeditious manner.

 

Urgency and/or Interim Ordinance

To ensure that all ground-floor uses in the City’s downtown include street-front activation to create visual interest for pedestrians passing by on the sidewalk, staff recommends City Council consider adoption of an interim ordinance pursuant to Government Code Section 65858 until such time that staff completes the relevant portions of the Zoning Code Update addressing ground-floor uses.

 

To prevent spaces currently or previously occupied by retail and restaurant uses from compromising pedestrian orientation by converting to other uses, staff recommends City Council consider the attached draft interim ordinance, which includes the following provisions:

 

1.                     The proposed interim ordinance would apply the definition of “Pedestrian-oriented” currently existing in the SPA-11 to the C-2 Zone.

2.                     Require pedestrian-oriented uses (retail and restaurants) in the Downtown commercial zone to have pedestrian-oriented features.

3.                     Prohibit proposed non-pedestrian-oriented uses, such as office, personal service, medical use, gyms/spas, etc., on the ground floor in the C-2 Zone, unless a Conditional Use Permit (CUP) is obtained. The scope of the CUP would be to ensure that the ground-floor use retains pedestrian orientation through building and window configurations and storefronts.

4.                     Require a physical storefront standard of 70 percent transparency in windows between three and eight feet from the ground.

5.                     Clarify that the ordinance does not affect the ability to change from one pedestrian-oriented use to another (e.g. from retail to restaurant), and that the ordinance does not affect existing entitlements on the site or adopted conditions of approval.

 

If the interim ordinance is passed, the above-mentioned requirements would apply to properties for which no application involving a change of use has been submitted to the City by April 9, 2024. The interim ordinance would be effective for an initial 45 days, with an option to extend for an additional 10 months and 15 days if the urgency continues, with the potential for another year extension if a permanent ordinance(s) has not been adopted by the end of the first year.

 

Per Government Code Section 65858, the City must submit a written report 10 days prior to the expiration of the urgency ordinance or any extension, describing ongoing measures to alleviate the causes of the urgency ordinance. The City Council must also conduct a public hearing on extending the interim ordinance. If City Council adopts the interim ordinance, staff would present a public hearing of the extension of the interim ordinance on at its May 14, 2024 meeting.

 

If City Council adopts an interim ordinance under this section, the Council would need to include findings that there is a current and immediate threat to the public health, safety, or welfare and that the approval of additional retail conversions would result in that threat to public health, safety, or welfare. The attached ordinance (Attachment 1) includes the required findings.

 

General Plan Consistency:

This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below:

 

Land Use Element

 

Goal 6. A pedestrian-focused urban form that creates visual interest and a comfortable outdoor environment.

Policies:

                     6.1 Outdoor Amenities. Require all new multi-family and commercial development to be designed and constructed with pedestrian friendly features such as sidewalks, tree-shaded streets, buildings that define the public realm, and, in the case of non-residential uses, have transparent ground floor building facades that activate the street.

                     6.6 Human-scale buildings. Encourage buildings and design to include human-scale details such as windows on the street, awnings and architectural features that create a visually interesting pedestrian environment.

                     6.7 Pedestrian oriented design. Eliminate urban form conditions that reduce walkability by discouraging surface parking and parking structures along walkways, long blank walls along walkways, and garage-dominated building facades.

 

Environmental Review

Pursuant to Section 15060(c)(3) of the State California Environmental Quality Act (CEQA) Guidelines, the City has reviewed and determined that the proposed activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines, as the proposed changes do not permit any development; therefore, pursuant to the activity is not subject to CEQA. Thus, no environmental review is necessary.

 

Further, the imposition of this interim measure does not meet the definition of a project under CEQA Guidelines section 15061, subdivision (b)(3) and section 15378, subdivision (a) and subdivision (b)(5). The interim measure has no potential for resulting in physical changes in the environment, directly or indirectly, because it consists of a limitation on a specific use on the ground floor in certain areas in the City. The adoption of this interim ordinance is therefore exempt from CEQA review pursuant to CEQA Guidelines sections15301 and 15308.

 

Public Notification

In accordance with Brown Act requirements, this item was included on an agenda for a public meeting. While public hearing notification is not required for an urgency ordinance, any extension of the interim zoning ordinance would require public notification and a public hearing.

 

Fiscal Impact:

There is no fiscal impact associated with the recommended action. Any administrative permit application received would be commensurate with staff time to review and process applications.

 

Attachments:

1.                     Draft Urgency Ordinance

2.                     City Zoning Map

3.                     Link to Downtown Core Revitalization Strategy

4.                     Link to Economic and Market Study

5.                     Link to Economic Development Strategy

6.                     PLAN Hermosa

7.                     Link to April 20, 2010 Planning Commission Staff Report

8.                     Link to August 22, 2017 City Council Staff Report

9.                     Link to April 9, 2022 Planning Commission Staff Report

10.                     Link to February 15, 2024 City Council Meeting Minutes

 

Respectfully Submitted by: Carrie Tai, AICP, Community Development Director

Noted for Fiscal Impact: Viki Copeland, Finance Director

Legal Review: Patrick Donegan, City Attorney

Approved: Suja Lowenthal, City Manager