To: MAYOR AND CITY COUNCIL
From: MARC WIENER, COMMUNITY DEVELOPMENT DIRECTOR
TITLE
title
DISCUSSION AND POSSIBLE ACTION REGARDING POSSIBLE UPDATES TO THE REDONDO BEACH MUNICIPAL CODE TO STREAMLINE BUSINESS PERMITTING REQUIREMENTS AND ASSOCIATED LAND USE REGULATIONS
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EXECUTIVE SUMMARY
Consistent with the City’s goal of attracting new businesses and reducing regulatory barriers, the Community Development Department is considering streamlining the City’s various permitting processes to make it easier for new businesses to open in Redondo Beach. This item provides an overview of the City’s current business permitting requirements and an opportunity for the City Council to give policy direction on possible Redondo Beach Municipal Code (RBMC) modifications.
BACKGROUND
The RBMC establishes the permitting requirements for opening a new business in the City of Redondo Beach, which includes the three permitting processes described below.
1. Permit-by-Right: A business may be approved and issued a business license as permit-by-right through a streamlined, administrative process. Under this process, if the proposed business meets the definition for the type of use and is permitted, then the City administratively issues a business license, allowing the business owner to either open and/or submit a building permit application for tenant improvements. Most retail stores within the City are permitted in this manner.
2. Conditional Use Permit (CUP): Under current regulations the majority of business types in the City require a CUP. Under the CUP process, the decision to allow, conditionally allow, or deny a proposed business is rendered at a public hearing by the Planning Commission (or Harbor Commission). The Commissions must make the required findings for approval, or denial, and may apply special conditions to regulate business operations. CUP decisions made by the commissions can be appealed to the City Council for final determination.
RBMC Section 10-2.2506 states that “the purpose of a Conditional Use Permit shall be to review certain uses possessing unique characteristics…to ensure that the establishment or significant alteration of those uses will not adversely affect surrounding uses and properties nor disrupt the orderly development of the community. The review shall be for the further purpose of stipulating such conditions regulating those uses to assure that the criteria of this section shall be met.”
3. Administrative Use Permit (AUP): An AUP is similar in nature to the CUP in that it requires noticing, is discretionary, and allows the City to apply special conditions to the business operation; however, the decision is made by staff and is more administrative and streamlined than the CUP process.
RBMC Section 10-2.2507 of the RBMC states that “the purpose of an Administrative Use Permit is to enable the Community Development Department to review projects, that otherwise meet the zoning regulations, with regard to the appropriateness of the specific land use at the proposed location.” The decisions made by the Community Development Department are appealable to the Planning Commission and City Council, if needed.
CUPs are commonly required for businesses that have the potential to impact the surrounding neighborhood, such as entertainment venues, bars, gas stations, liquor stores, drive-through restaurants, etc. Other uses such as retail, restaurants, and service businesses are commonly approved through a simple permit-by-right or AUP process.
Redondo Beach has established a CUP process for many types of businesses, particularly in the Coastal Zone, which adds time, cost, and uncertainty to the process of opening a new business. The business permitting table for the C-2 Commercial Zones is included as an attachment. Uses that are permitted-by-right are indicated by the letter “P” and those that require a CUP are indicated by the letter “C”. It is worth noting that in the C-2 Commercial Zones, 70% of the uses require a CUP, while 30% are permit-by-right.
|
Use Classifications |
C-2 |
C-2A |
C-2B |
C-2-PD |
Additional Regulations See Section: |
|
Commercial Uses |
|
|
|
|
|
|
Ambulance services |
C |
C |
C |
- |
|
|
Animal sales and services: |
|
|
|
|
|
|
Animal feed and supplies |
P |
P |
P |
P |
|
|
Animal grooming |
C |
C |
C |
C |
|
|
Animal hospitals |
C |
C |
C |
- |
|
|
Animal sales |
C |
C |
C |
C |
|
|
Artist's studios |
P |
P |
P |
P |
|
|
Banks and savings and loans |
P |
P |
P |
P |
|
|
with drive-up service |
C |
C |
C |
C |
|
|
Bars and cocktail lounges |
C |
C |
C |
C |
10-2.1600 |
|
Body art studios |
C |
C |
C |
C |
10-2.1630 |
|
Building material sales |
C |
C |
C |
- |
|
|
Business and trade schools |
C |
C |
C |
C |
|
|
Check-cashing businesses |
C |
C |
C |
C |
10-2.1600 |
The business permitting table for the Coastal Commercial (CC) Zones is also included as an attachment. Within the CC Zones 84% of the uses require a CUP while 16% are permitted-by-right.
While the CUP process provides the City with greater discretion over business applications and the ability to impose special conditions on the operation, it also comes with significant added cost ($3,737) and uncertainty, which can act as a barrier when considering opening a business. The majority of business types require a CUP and, in staff’s opinion, several could be downgraded to require either an AUP or be evaluated as permitted-by-right. Examples of businesses that could have a more streamlined process include restaurants, certain assembly uses, such as clubs and lodges, and personal improvement services, which consist of personal training, dance studios, music lessons, etc. Staff notes that the AUP process, as an alternative to the CUP, would still provide the City with discretion over the application and the ability to impose special conditions, but is a more streamlined and less expensive process for prospective applicants.
While staff recommends generally relaxing the business permitting requirements, a special focus should be placed on Artesia and Aviation Boulevards, with the intent of being more selective about which business types best support the City’s goals of revitalization and placemaking along the corridor. Staff proposes to create a separate land use table that is specific to the Artesia and Aviation Corridors Area Plan (AACAP). The City Council may also consider placing a special focus on business permitting within the Harbor/Waterfront area, in which CUPs go before the Harbor Commission.
While the CUP process gives the City more discretion and ability to condition business operations, it can act as a barrier to prospective new businesses. In staff’s opinion, the business permitting requirements can be refined in a way that maintains critical City control, while also helping stimulate new business investment and activity. This item provides the City Council with an opportunity to discuss and give direction on the possible process improvements. The Council may also want to consider utilizing the Economic Development Subcommittee to further review the suggested modifications.
COORDINATION
This administrative report was prepared in coordination with the City Manager’s Office.
FISCAL IMPACT
Funding for the preparation of this report and zoning amendments is available in the Community Development Department’s annual operating budget.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• Land Use Regulations - Inland Commercial Zones
• Land Use Regulations - Coastal Commercial Zone