A. 
The purpose of this Chapter is to implement the goals, objectives and policies of the City of Santa Monica's Land Use and Circulation Element ("LUCE") and, particularly, the City's goal of no net new automobile p.m. peak hour trips occurring when new development is constructed within the City limits. Imposing a fee that is reasonably related to the burdens created by new development on the City's surface transportation system will enable the City to construct the required capital improvements that will contribute to fulfilling this goal.
B. 
The City has prepared a Transportation Impact Fee Nexus Study. It shows, and the City Council finds, that there is a reasonable relationship between the purpose for which the fees established by this Chapter are to be used and the type of development projects on which the fees are imposed, and between the amount of the fees and the cost of the transportation facilities or portion of the facilities attributable to the development on which the fees are imposed.
C. 
It is the intent of the City Council that the fee required by this Chapter shall be supplementary to any conditions imposed upon a development project pursuant to other provisions of the Municipal Code, the City Charter, the Subdivision Map Act, the California Environmental Quality Act, other State and local laws, which may authorize the imposition of project specific conditions on development.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
A. 
The regulations, requirements and provisions of this Chapter and Council resolutions adopted pursuant hereto shall apply to all new projects for which a development application was deemed complete or an application for changes in existing uses was made on or after the effective date of the ordinance codified in this Chapter.
B. 
Notwithstanding subsection (A), the following projects, square footage and affordable residential units shall not be subject to the requirements of this Chapter:
1. 
Places of worship;
2. 
City projects;
3. 
Day care centers;
4. 
Private K-12 schools;
5. 
Multi-family rental housing projects developed by a nonprofit housing provider if the developer is receiving financial assistance through a public agency, so long as the multi-family rental housing project is an affordable housing project meeting the definition of affordable housing in Santa Monica Municipal Code Section 9.52.020 and the project's affordable housing obligations will be secured by a regulatory agreement, memorandum of agreement, or recorded covenant with a public agency for a minimum period of 55 years;
6. 
Re-occupancy of square footage in an existing building or structure if there is no change of use;
7. 
Square footage used for outdoor dining in the public right-of-way; and
8. 
Affordable housing units deed restricted to very-low income and low income households.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
For the purpose of this Chapter, the following terms shall be defined as follows:
"Area 1"
means the area bounded in the west by California Avenue from 7th Street to Ocean Avenue, in the north by 7th Street from California Avenue to Highway 10 and 4th Street from Highway 10 to Olympic Drive, in the east by Highway 10 from 7th Street to 4th Street and Olympic Drive from 4th Street to Ocean Avenue, and in the south by Ocean Avenue from California Avenue to Olympic Drive and, the area bounded in the west by Broadway from 20th Street to 26th Street and Colorado Avenue from 26th Street to Stewart Street, in the north by 26th Street from Broadway to Colorado Avenue and by Stewart Street from Colorado Avenue to Exposition Boulevard, in the east by Exposition Boulevard and Michigan Avenue from Stewart Street to Cloverfield Boulevard and Olympic Boulevard from Cloverfield Boulevard to 20th Street, and in the south by 20th Street from Broadway to Olympic Boulevard and Cloverfield Boulevard from Olympic Boulevard to Michigan Avenue.
"Area 2"
means any remaining area within the City boundary that is not included in Area 1.
"Area 3 overlay"
means a one-half mile walk-shed from a transit station within the City boundary. Only housing development projects as defined in Section 9.66.040(A)(6) may qualify for a transportation impact fee based on their location within the Area 3 overlay.
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"City projects"
means City public works projects and City community facilities (e.g., libraries, public parking structures, recycling centers, and community centers), not including public/private partnerships.
"Housing development project"
means a development project with common ownership and financing consisting of residential use or mixed use where not less than 50% of the floorspace is for residential use as provided in Government Code Section 66005.1(c) and its successor statutes.
"Nexus Study"
means the Transportation Impact Fee Nexus Study prepared by Nelson/Nygaard Consulting Associates Inc, dated April 2012.
"Project"
means any development having new or additional floor area of one thousand square feet or more or that changes an existing use to a different use that increases the demand for transportation infrastructure, or residential development of improved or unimproved land which adds dwelling units. Floor area for the purposes of this definition shall be the same as Section 9.04.080, or any successor legislation, but shall exclude parking area. Where the requirements of this Chapter have been adjusted or waived for a project pursuant to Section 9.66.050 hereof, subsequent changes in use, project remodels or tenant improvements that increase trip generation shall constitute a project as defined herein.
"Transit station"
means a rail or light-rail station, ferry terminal, bus hub, or bus transfer station, and includes planned transit stations otherwise meeting this definition whose construction is programmed to be completed prior to the scheduled completion and occupancy of the housing development.
"Transportation impact fee"
means a fee paid to the City by an applicant pursuant to Section 9.66.040 of this Chapter in connection with approval of a project, to contribute to the creation of transportation improvements to offset additional vehicle trips generated by new development to achieve no net new trips consistent with the goals, objectives and policies of the City's Land Use and Circulation Element ("LUCE").
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; Amended by Ord. No. 2520CCS § 64, adopted June 14, 2016)
Except as provided in Section 9.66.050, the developer of a project shall pay a transportation impact fee in accordance with the following:
A. 
Transportation Impact Fee. Fees shall be computed as follows:
1. 
For single-unit residential development projects that result in the addition of a dwelling unit:
a. 
$7,600 per multi-unit dwelling unit in Area 1.
b. 
$7,800 per multi-unit dwelling unit in Area 2.
2. 
For multi-unit residential development projects that result in the addition of a dwelling unit:
a. 
$2,600 per multi-unit dwelling unit in Area 1.
b. 
$3,300 per multi-unit dwelling unit in Area 2.
c. 
$2,600 per multi-unit dwelling unit in Area 3 overlay for housing development projects that satisfy the requirements of subsection (A)(6)(a), (b), and (c) of this Section.
3. 
All nonresidential projects shall pay the following based on the square footage of the proposed project:
a. 
Retail.
i. 
$21 per square foot in Area 1.
ii. 
$30.10 per square foot in Area 2.
b. 
Office.
i. 
$9.70 per square foot in Area 1.
ii. 
$10.80 per square foot in Area 2.
c. 
Medical Office.
i. 
$28.10 per square foot in Area 1.
ii. 
$29.80 per square foot in Area 2.
d. 
Hospital.
i. 
Not applicable.
ii. 
$14.70 per square foot in Area 2.
e. 
Lodging.
i. 
$3.60 per square foot in Area 1.
ii. 
$3.60 per square foot in Area 2.
f. 
Industrial.
i. 
$1.20 per square foot in Area 1.
ii. 
$1.30 per square foot in Area 2.
g. 
Auto Sales and Display Areas.
i. 
$1.20 per square foot in Area 1.
ii. 
$1.30 per square foot in Area 2.
4. 
The land use categories identified in subsections (3)(a) through (g) shall have the following meanings:
a. 
Single-unit residential shall include single-unit dwelling.
b. 
Multi-unit residential shall include congregate care—nonsenior, congregate care—seniors, and multiple-unit dwelling.
c. 
Retail shall include: animal kennels and veterinary hospitals, auto repair, car wash, community meeting facilities, community centers and nonresidential adult care facilities, retail and wholesale construction- related materials, nurseries and garden centers, entertainment and recreational facilities, gas station, library, museums, aquariums and art galleries, nightclubs and bars, personal services, post-secondary educational facility, pre-school/child day care, private studio, restaurants—fast food and cafés, restaurants—sit down, retail durable goods, retail food and markets, retail mixed, and retail nonfood.
d. 
Office shall include: creative office, financial institutions and office, and general office.
e. 
Medical office shall include: medical office, including medical clinics, and offices for medical professionals.
f. 
Hospital shall include: full service hospitals.
g. 
Lodging shall include: hotels, motels and other overnight accommodations.
h. 
Industrial shall include: surface or structured auto inventory storage, City maintenance facilities and bus yards, heavy industrial and manufacturing, light industrial, utilities, warehouse and self-storage, and wholesale distribution and shipping.
5. 
For mixed residential/nonresidential development, the sum of the fee required for each component as set forth in subsections (A)(2) and (A)(3) of this Section.
6. 
Housing development projects within the Area 3 overlay that meet the following characteristics shall pay a transportation impact fee of $2,600 per multi-unit dwelling unit:
a. 
The housing development is located within one-half mile of a transit station and there is direct access between the housing development and the transit station along a barrier-free walkable pathway not exceeding one-half mile in length; and
b. 
Convenience retail uses, including a store that sells food, are located within one-half mile of the housing development; and
c. 
The housing development provides either the minimum number of parking spaces required by the municipal code, or no more than one on-site parking space for zero- to two-bedroom units, and two on-site parking spaces for three or more bedroom units, whichever is less.
7. 
The amount of legally permitted square footage to be demolished in an existing building or structure, or to be removed from an outdoor area used as part of a service station or for auto dealer sales, display and inventory storage, as a part of a project shall be a credit in the calculation of the transportation impact fee. Outdoor area used as part of a gas station shall not include setbacks, landscaping, parking and other paved areas used solely for access and circulation.
B. 
Timing of Fee Payment.
1. 
The project applicant shall pay fees according to the schedule of fees in place on the date the fees are paid, except that the project applicant for a project that has vested rights under State or local law shall pay the applicable fees in accordance with those vested rights.
2. 
The Transportation Impact Fee shall be paid in full upon issuance of a certificate of occupancy or final inspection, whichever occurs last.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; amended by Ord. No. 2520CCS § 65, adopted June 14, 2016; Ord. No. 2792CCS, 10/8/2024)
A. 
A developer of any project subject to the fee described in Section 9.66.040(A) may request that the requirements of this Chapter be adjusted or waived for the conversion of nonconforming ground floor uses in commercial zones to conforming pedestrian-oriented uses.
B. 
To receive an adjustment or waiver, the developer must submit an application to the Director of Planning and Community Development, or designee, at the time the developer files a discretionary project application or, if no discretionary application is required, a building permit application. The developer shall bear the burden of presenting a preponderance of the evidence to support the request and set forth in detail the factual and legal basis for the claim, including all supporting technical documentation.
C. 
The Director of Planning and Community Development or designee shall render a written decision within ninety days after a complete application is filed. The Director's decision may be appealed to the Planning Commission by the project applicant if such appeal is filed within fourteen consecutive calendar days from the date that the decision is made in the manner provided in Chapter 9.37 Common Procedures of this Code. The decision of the Planning Commission shall be final.
D. 
If an adjustment or waiver is granted, any change in use from the approved project shall invalidate the adjustment or waiver.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
Pursuant to Government Code Section 66006, the transportation impact fee reserve account is hereby established. The fees paid to the City pursuant to the provisions of this Chapter shall be deposited into the transportation impact fee reserve account and used solely for the purpose described in this Chapter. All monies deposited into the reserve account shall be held separate and apart from other City funds. All interest or other earnings on the unexpended balance in the reserve account shall be credited to the reserve account.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
All monies and interest earnings in the transportation impact fee reserve account shall be expended on the construction and related design and administration costs of constructing transportation improvements identified in the Nexus Study, or such other report as may be prepared from time to time to document the reasonable fair share of the costs to mitigate the transportation impacts of new development. Such expenditures may include, but are not necessarily limited to the following:
A. 
Reimbursement for all direct and indirect costs incurred by the City to construct transportation improvements pursuant to this Chapter, including, but not limited to, the cost of land and right-of-way acquisition, planning, legal advice, engineering, design, construction, construction management, materials and equipment.
B. 
Costs of issuance or debt service associated with bonds, notes or other security instruments issued to fund transportation improvements identified.
C. 
Reimbursement for administrative costs incurred by the City in establishing or maintaining the transportation impact fee reserve account required by this Chapter, including, but not limited to, the cost of studies to establish the requisite nexus between the fee amount and the use of fee proceeds and yearly accounting and reports.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
To account for inflation in transportation infrastructure construction costs, the fee imposed by this Chapter shall be adjusted automatically on July 1st of each fiscal year, beginning on July 1, 2013, by a percentage equal to the appropriate Construction Cost Index as published by Engineering News Record, or its successor publication, for the preceding twelve months.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
A. 
If a transportation impact fee is collected on a project and the permit for that project later expires, is vacated or voided before commencement of construction, the developer shall, upon request, be entitled to a refund of the unexpended transportation impact fee paid, less a portion of the fee sufficient to cover costs of collection, accounting for and administration of the fee paid. Any request for a refund shall be submitted in writing to the Director of Planning and Community Development within one year of the date that the permit expires or is vacated or voided. Failure to timely submit a request for refund shall constitute a waiver of any right to a refund.
B. 
Fees collected pursuant to this Chapter which remain unexpended or uncommitted for 5 or more fiscal years after deposit into the transportation impact fee reserve account may be refunded as provided by State law.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
The amount of the transportation impact fees and the formula for the automatic annual adjustment established by this Chapter may be reviewed and revised periodically by resolution of the City Council. This Chapter shall be considered enabling and directive in this regard.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
The Director of Planning and Community Development, or designee, is authorized to adopt written administrative regulations or guidelines that are consistent with and that further the terms and requirements set forth within this Chapter.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)