> ## Content Index > Fetch the complete content index at: https://www.smdp.com/llms.txt > Use this file to discover other available public pages before exploring further. # City kickstarts efforts to alleve parking woes - URL: https://www.smdp.com/city-kickstarts-efforts-to-alleve-parking-woes/ - Published: 2004-10-01T15:00:00.000Z - Updated: 2026-10-23T05:14:37.000Z - Author: Guest Author - Tags: Government & Politics, Santa Monica, #archive-import *Car dealerships remain largest tax generators* *By GENEVA WHITMARSH Daily Press Staff Writer* CITY HALL — Officials here jump-started efforts this week to allow local car dealers to expand their businesses into nearby residential parking lots. City Council members are considering a new law which would allow local car dealers to use residentially zoned lots near and within their dealerships. The council unanimously took steps to approve an interim ordinance, a related environmental analysis and a public hearing on the subject, the date of which has yet to be set. Auto dealers, which accounted for a fifth of the city’s nearly $28 million in projected sales tax revenue this year, have long argued that they can’t expand, have little room to operate and have no parking for their employees, customers or inventory. Residents, on the other hand, complain about such things as general noise, lighting, lack of parking, the unloading of new cars, test-drives through their respective neighborhoods and the noise of repair work. “It was imperative we did this because it helps the car dealers,” said City Councilman Herb Katz. “Even though some of the residents came out and said they don’t want anything done, they don’t seem to understand that it’s for them. It’s going to help reduce the noise, traffic and parking problem.” The average size of a dealership in Santa Monica is 1.4 acres. However, the standard for the industry in other areas is between five and 10 acres, according to dealership owners. Not having enough space to store the dealership’s inventory creates a burden for the community as a whole, owners say, because they are forced to store cars in garages and parking lots throughout the city. As a result, dealers must routinely haul cars back and forth. “There just isn’t the room for us to operate our businesses,” a local dealer told the City Council Tuesday. “Something needs to be done.” Officials on Tuesday were asked to look at several proposals resulting from more than three years of study. Among those they elected to consider: ■ Develop more underground parking for auto storage and other dealership activities. ■ Build one additional story for projects that include at least one substantial underground level, with taller building facing the main commercial streets to minimize impacts on residential neighbors. ■ Develop parking structures for employees and customer parking, or auto storage on nearby lots in the neighborhood, which are often used by dealerships. The Planning Commission, whose ideas were adopted by the City Council, wants to allow the residential lots to be further developed for use as parking structures that would provide adequate parking for commercial areas without affecting nearby residents. “The intention would be that these parking structures could only be used for the adjacent dealerships and would need to be demolished if the dealership use ceased,” staff wrote in its report. Staff, however, disagrees with the commission’s proposal, arguing that it’s an undesirable long-term policy, which will permanently erode potential for neighborhood improvement. “In a lot of ways, this is (in the beginning stages),” said Amanda Schachter of the city’s planning and community development department. “We did a lot of study and outreach with the dealers and community, and we presented council (Tuesday) with what we found.” The council directed staff to draft an interim ordinance, a process that requires an environmental review. Officials were hesitant to say how long such a process would take, but Schachter said it could take up to two years. What to do with the automotive industry in Santa Monica has been on the minds of elected officials and dealership owners for years. In 2001, a group of dealers hired a consultant to outline their issues and present a plan to city leaders that would give them more freedom to operate their businesses. City Hall then hired two consultants — at a cost of $119,000 — to evaluate the feasibility of the dealerships’ study. Based on numerous meetings with community groups, city staff and dealership owners, City Hall’s consultants determined much of the complaints of the auto industry and the public were valid. They also determined that while Santa Monica dealerships have increased revenue over the last few years, it has not increased at the rate experienced by larg-er auto mall dealerships. “The report points to the 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,” city staff wrote in a memo to the Planning Commission. “The dealers are pressured by the manufacturers,” Katz said. “If they can’t increase their business and secure sales, they could go out of business.” New car sales generated about $5 million in sales taxes for Santa Monica in 2003\. Auto leases accounted for another $1.2 million, according to Dave Carr, assistant city treasurer. Auto dealerships are the largest tax generator in the city, he added. Santa Monica dealerships are up against the consolidation of dealerships into large chains, who sell several brands of cars in one place, creating what is known as “auto rows.” They can be found in Van Nuys and Glendale, and are used by dealerships to pool their advertising together and make it more convenient for consumers. *Originally published in the Santa Monica Daily Press print edition on October 1, 2004.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/100104.pdf?ref=smdp.com)