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Santa Monica City Council Approves Two Controversial Zoning Corrections Amid Economic Pressures

Santa Monica City Council Approves Two Controversial Zoning Corrections Amid Economic Pressures
By separate votes of 5-2, the City Council has authorized zoning amendments for two commercial sites. (Photo Credit: Courtesy))
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The Santa Monica City Council has approved zoning changes for two commercial properties in separate 5-2 votes, correcting what city staff called inadvertent mapping errors while overriding neighborhood opposition concerned about future high-rise development.

The council's decisions for properties at 2644 30th Street and 1331 Wilshire Boulevard reflect the city's struggle to balance economic recovery with neighborhood preservation as Santa Monica grapples with commercial vacancy rates at or above 30%.

Both properties faced similar predicaments stemming from mapping errors during comprehensive  zoning updates between 2010 and 2015, creating legal non-conforming situations that severely limited the owners' ability to lease their buildings.

30th Street Office Building

In the more contentious decision, the council voted early Wednesday morning to change zoning for an existing 35,000-square-foot office building from single-family residential (R1) to neighborhood commercial (NC). The property, which has housed commercial offices since 1956, was historically zoned commercial but was mistakenly changed to residential during digitization of city maps.

"We have 30% vacancy. Our rent is one half of what it was in 2019 and things aren't great," said Jeffrey Palmer, one of the property owners. "We are just trying to survive."

The current residential zoning creates restrictions that could render the commercial building unusable if tenants leave and space remains vacant for more than a year. Property owners face immediate challenges with one tenant's lease expiring in January 2026.

Sunset Park residents strongly opposed the change, arguing it could allow future development up to 85 feet tall through state density bonus laws—a dramatic change for a street lined with one- and two-story homes.

"This is spot zoning and it's not legal in this situation," said Tracy Halm, a 30-year resident living across from the property. "The biggest problem here is that it's not part of the [Land Use and Circulation Element]. The LUCE was very, very careful to keep everything on the Boulevard and not in the neighborhood."

Wilshire Boulevard Former Rite Aid

The second decision involved a vacant commercial building at 1331 Wilshire Boulevard that formerly housed a Rite Aid pharmacy. The building sits under split zoning—Commercial Mixed-Use Boulevard in front and Residential (R2) in the rear—creating similar leasing obstacles.

Lauren Chang, a land use attorney representing the property owner, warned the council that without the zoning correction, they would lose a prospective tenant described as a nationally recognized specialty grocery store.

"The Rite Aid use was considered illegal non-conforming use, and now the clock on our grandfathered rights is ticking," Chang said. "We have less than a year before the legal non-conforming use is considered abandoned."

Council Opposition and Concerns

Both decisions faced identical opposition from Council Members Ellis Raskin and Mayor Lana Negrete, who cited concerns about process and transparency.

Raskin maintained his preference for addressing such issues through a comprehensive, city-wide approach rather than individual map amendments. "I would rather us move forward on a programmatic basis," he said, referencing council direction from July 29 to develop comprehensive solutions for legal non-conforming properties.

Mayor Negrete expressed concerns about community trust. "There isn't trust and or a lot of transparency. And so this is why we're having the reaction," she said regarding the 30th Street decision.

Economic vs. Neighborhood Priorities

Council Member Jesse Zwick, who supported both measures, argued the changes simply correct technical errors. "It's typically not our practice to take commercial buildings and zone them residential as a matter of policy," he said.

Mayor Pro Tem Caroline Terrosas framed the Wilshire Boulevard issue as essential for economic recovery, stating that allowing buildings to remain legally non-conforming and difficult to lease is "highly problematic."

Protections and Limitations

To address redevelopment concerns, both property owners offered voluntary restrictions. The 30th Street owner provided a 10-year covenant prohibiting housing redevelopment, while the  Wilshire Boulevard owner mentioned similar protections though these weren't part of formal council action.

City planning staff noted that neighborhood commercial zoning for non-housing projects limits development to two stories and 32 feet, making large-scale redevelopment unlikely even after voluntary covenants expire.

Broader Policy Questions

The decisions highlight Santa Monica's broader challenge of addressing hundreds of similar properties citywide. Staff explored alternatives to individual map amendments but recommended against broader policy changes, citing potentially huge and unknown city-wide impacts.

Both approved motions include provisions to exclude adjacent parking areas from future city initiatives that could rezone surface lots for housing development, addressing some community concerns about neighborhood character preservation.

The votes reflect the council's prioritization of economic recovery over procedural concerns as the city continues navigating post-pandemic commercial real estate challenges.

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