Planning Commission Report

Planning Commission Meeting: October 19, 2011 Agenda Item: 9-B To: Planning Commission From: David Martin, Director, Planning & Community Development Department Subject: Text Amendment 11-002 - Recommendation to amend SMMC Section 9.04.08.15.030 to permit all-electric vehicle dealership showrooms in the BSC-1 with approval of a Performance Standards Permit and adding Section 9.04.12.180 to establish performance standards for the electric vehicle dealerships.

Address: BSC1 - Bayside Commercial District Applicant: City of Santa Monica

Recommended Action

It is recommended that the Planning Commission recommend to the City Council adoption of the proposed Zoning Text Amendment.

Executive Summary

On August 9, 2011, the City Council directed staff to prepare an ordinance to permit alternative fuel vehicle showrooms in the BSC-1 district (Third Street Promenade). Intended as a use that could attract pedestrians and shoppers to the north end of the Promenade, the Council also directed that the ordinance establish limitations on the showroom size, and prohibit potentially disruptive activities such as service or inventory storage.

Background

On July 28, 2011, the Downtown Santa Monica, Inc. Board of Directors received a proposal to expand the permitted uses in the Downtown to include “unique auto showrooms”. In a letter dated August 5, 2011(Attachment A), the Downtown Santa Monica, Inc. Board made a recommendation to the City to allow such vehicle sales with the following limitations:

Allow only environmentally friendly vehicles, Limit showrooms to 25-feet of linear Promenade frontage; Limit showrooms to 3,500 square feet in size; Limit the number of on-site display vehicles; and Prohibit on-site vehicle service.

As noted above, on August 9, 2011, the City Council discussed the proposal and directed staff to prepare an ordinance to permit alternative fuel vehicle showrooms within the BSC-1 district.

The Planning Commission adopted a Resolution of Intention to initiate this Zoning Ordinance amendment on September 21, 2011.

Discussion

Staff is recommending that the alternative fuel vehicle showrooms be limited to all- electric vehicle sales. Electric vehicle showrooms have recently been locating in unconventional locations, including high pedestrian traffic areas, such as shopping centers. Tesla Motors, for example, has opened stores in the Park Meadows shopping center in Lone Tree, Colorado and at Santana Row in San Jose. CODA Automotive has located its first store within a shopping center, Westfield Century City Mall. There were no special permits required by the cities where these stores are located as the sale of these vehicles was considered analogous to computer and other electronic sales and the store sizes are similar to other retail operations and significantly smaller than traditional auto dealer showrooms.

Tesla Showroom – Park Meadows, Lone Tree, CO

Tesla Showroom – Santana Row, San Jose

The Tesla showrooms demonstrate the technology of their vehicles and provide a design studio for customers who are able to configure their vehicle (color, accents,

3 interior, top, wheels, electronics, options, etc.). Customers can also hear stories from Tesla owners through an interactive touchscreen. Only a few vehicles are located within the showrooms. Most of the stores also feature retail items such as car chargers, hats, t-shirts, and items for children.

Test driving is by appointment-only with the test driving vehicles stored within the adjacent parking garage. Service is offered at an off-site service center or through “house calls”.

CODA Automotive’s first store is within Westfield Century City Mall and is intended to take advantage of the high pedestrian traffic. The CODA store features an EV Bar, an interactive learning area highlighting the benefits of electric cars where customers can speak to CODA employees, each other and guest speakers in person and over the Web. The store has a Technology Display with a full-scale replica of the CODA’s battery system and electric propulsion system and demonstrates the technical components and features of the car. Customers can schedule an appointment at the store for a test drive from the Test Drive Center which is located within the mall’s parking garage. Vehicle accessories and vehicle service are available off-site at dealerships locations.

Rendering of CODA Westfield Century City store exterior

Rendering of CODA Westfield Century City store interior

CODA’s marketing strategy is to provide a convenient, inviting environment for customers to learn about their electric vehicles and consider buying a car purchase.

Due to the innovative aspects of electric vehicles as well as the educational component of the showrooms, staff believes this use is more appropriate in a pedestrian intensive environment than auto dealerships selling hybrids or alternative fuel vehicles. These showrooms are anticipated to draw pedestrian activity from a broader base - not only potential customers, but also from people interested in learning about the technology. Consequently, electric vehicle showrooms provide an opportunity to diversify the Promenade’s retail mix and further enhance the pedestrian environment.

Proposed Text Amendment

Staff recommends modifying SMMC Section 9.04.08.15.030 to add all-electric vehicle dealership showrooms as uses allowed by Performance Standards Permit in the BSC-1 district along the Third Street Promenade (Attachment B). Staff is recommending a Performance Standards Permit (PSP) so that specific standards and requirements may be imposed on the dealership showrooms in order to mitigate any negative impacts on adjacent businesses. As such, staff recommends the following standards and requirements:

Vehicle Type: Vehicles shall be exclusively electrically-powered vehicles. Maximum Street Frontage. 25-feet. Maximum Dealership Showroom Square Footage. 3,750 square feet. Maximum Number of Dealership Showrooms. Four (4). Maximum Number of Vehicles On-site. Five (5.) Additional vehicles may be provided on or off-site for test driving purposes. Loading and Unloading of Vehicles. Loading and unloading of vehicles is limited to the hours of eight a.m. to eleven a.m. Monday through Saturday, excluding legal holidays and subject to the approval of the City Parking and Traffic Engineer.

5 Vehicle Service and Repair. No vehicles shall be serviced or repaired on the premises. Test Driving. Test driving shall be permitted by appointment only. Employees of the dealership shall deliver the vehicles for test driving to a designated nearby location on a permitted test driving route. All test driving routes and their operation shall be reviewed and approved by the City Parking and Traffic Engineer.

Staff recommends a maximum showroom size slightly larger than the 3,500 square foot maximum recommended by Downtown Santa Monica, Inc. The standard depth of the parcels along the Promenade is 150-feet and, with a maximum 25-foot frontage. Therefore, the showroom could be 3,750 square feet if the building occupies the entire parcel. Further, staff has clarified that this provision applies only to all-electric vehicles and would not authorize hybrid vehicle sales on the Promenade.

Environmental Analysis

The proposed ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) in that it can been seen with certainty that the proposed ordinance does not have the potential to significantly impact the environment, since the proposed ordinance amendment merely allows the sales of electric vehicles in the Downtown area of the City with approval of a Performance Standards Permit. There are no reasonably foreseeable impacts such as a direct or indirect physical change in the environment that would result from the adoption of the proposed ordinance. In addition, the text amendment is exempt under CEQA Section 15303, Class 3 which exempts the new construction or conversion of small structures.

Consistency with the General Plan

In order to recommend the proposed text amendment to the City Council, the Planning Commission must find that the amendment is consistent with the City’s General Plan and that it promotes public health, safety and general welfare.

The proposed amendment is consistent in principle with several of the goals, objectives and policies of the General Plan, including:

Policy D1.1 of the LUCE which calls for a diversity of retail opportunities including local and regional serving retail in the downtown;

Policy D1.3 of the LUCE which identifies the Third Street Promenade as an important asset that should be maintained and supported as it serves the needs of the community, is a regional destination and is an important local and southern California center of activity; Goal S1 of the LUCE which directs the City to reduce greenhouse gas emissions and supporting Policy S1.1 states that the City shall cooperate

6 with the State of California in implementing the provisions of AB 32 to reduce greenhouse gas emissions;

Goal S2 of the LUCE which establishes that the City shall reduce greenhouse gas emissions through land use decisions; and

Goal S10 of the LUCE which supports creation of a sustainable local economy that focuses on green jobs, while Policy S10.3 envisions Santa Monica as a green tourist destination by encouraging green retail uses, and Policy S10.4 encourages the City to form partnerships with businesses, nonprofits and stakeholders to address the needs for emerging green businesses with the community;

Alternative Actions:

In addition to the recommended action, the Planning Commission could consider the following with respect to the project:

A1. Revise and recommend adoption to City Council A2. Recommend that the City Council not adopt the subject ordinance.

Conclusion

The proposed text amendment will allow the sales of electric vehicles in an area of the City which features high pedestrian traffic and visibility. The requirement for a Performance Standards Permit will ensure that there are requirements in place that will mitigate adverse impacts on adjacent businesses that might result from the dealership operations. The new locations along the Third Street Promenade will enhance the profile of electric vehicles, allow for more educational opportunities for the public related to the viability and importance of electric vehicles and provide for a more diverse mix of retail opportunities on the Promenade.

Prepared by: Paul Foley, Principal Planner

Attachments

A. Letter from Downtown Santa Monica, Inc. B. Proposed Text Amendment

7 ATTACHMENT A

Letter from Downtown Santa Monica, Inc.

ATTACHMENT B Proposed Text Amendment

9 Deleted text in Strike-out Added text in Italics

9.04.08.15.030 Uses subject to performance standards permit.

(1) The following uses may be permitted in the BSC-1 portion of the BSC District subject to the approval of a performance standards permit:

(a) None. All-electric vehicle dealership showrooms

(2) The following uses may be permitted in the BSC-2, BSC-3 and BSC-4 portions of the BSC District subject to the approval of a performance standards permit:

(a) Sidewalk cafés that exceed two hundred square feet in area, subject to the limitations contained in Section 9.04.08.15.080.

9.04.12.180 All-Electric Vehicle Automobile dealership showrooms.

The purpose of this Section is to ensure that automobile dealership showrooms for all- electric vehicles are compatible with uses within the BSC1 Bayside Commercial District and do not create an adverse impact on adjacent properties by reason of traffic generation, including road testing of vehicles. The following special conditions shall apply to all-electric vehicle automobile dealership showrooms:

(a) Applicability. All new all-electric vehicle automobile dealership showrooms shall comply with the development standards for the BSC1 district and with this Section.

(b) Maximum Street Frontage. The showrooms of the all-electric vehicle automobile dealerships shall be limited to a maximum linear street frontage of 25-feet.

(c) Maximum Dealership Showroom Square Footage. The showrooms of the all- electric vehicle automobile dealerships shall be limited to a maximum of 3,750 square feet.

(d) Maximum Number of Dealership Showrooms. The maximum number of all- electric vehicle dealership showrooms permitted in the BSC1 district shall be limited to four (4).

(e) Maximum Number of Vehicles On-site. The showroom of the all-electric vehicle automobile dealerships shall be limited to a maximum of 5 vehicles. Additional vehicles may be provided on or off-site for test driving purposes.

(f) Loading and Unloading of Vehicles. Loading and unloading of vehicles is permitted only in accordance with this subsection. The dealership operator shall be responsible and liable for any activities of a common carrier, operator, or other person controlling such

10 loading or unloading activities to the extent any such activities violate the provisions of this subsection.

(1) Loading and unloading of vehicles is limited to the hours of eight a.m. to eleven a.m. Monday through Saturday, excluding legal holidays.

(2) Loading and Off-loading shall be subject to the approval of the City Parking and Traffic Engineer. Loading and unloading shall not block the ingress or egress of any property.

(g) Vehicle Service and Repair. No vehicles shall be serviced or repaired on the premises.

(h) Test Driving. Test driving shall be permitted by appointment only. Test driving shall not be done on residential streets or alleys. For the purposes of this subsection, streets which are designated by the City as major collector streets shall be permissible areas for test driving. Each dealership operator shall have an affirmative obligation to inform all its personnel of this requirement and to ensure compliance with it. Employees of the dealership shall deliver the vehicles for test driving to a designated nearby location on a permitted test driving route. All test driving routes and their operation shall be reviewed and approved by the City Parking and Traffic Engineer.