AUGUST 4, 2016 PLANNING COMMISSION PUBLIC HEARING

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1 PLANNING COMMISSION PUBLIC HEARING AUGUST 4, 2016 SUBJECT: INITIATED BY: REQUEST TO REMOVE AN EXISTING ROOF-MOUNTED SIGN AND INSTALL A DOUBLE-SIDED, VERTICAL BILLBOARD ATOP A DISTINCTIVE POLE AND AMEND THE ZONING MAP TO INCLUDE PROJECT SITE IN A DEVELOPMENT AGREEMENT OVERLAY ZONE LOCATED AT 9015 SUNSET BOULEVARD. DEPARTMENT OF COMMUNITY DEVELOPMENT (David J. DeGrazia, Planning Manager, CHPP) (Rachel Dimond, AICP, Senior Planner) (Adrian Gallo, Associate Planner) STATEMENT ON THE SUBJECT The proposal is a request to remove an existing legal non-conforming double-sided roof-mounted sign (and other illegal signage) and install a freestanding double-sided, 14 ft. x 48 ft. vertical billboard atop a new distintive pole. The proposed billboard is 83 feet in height, as measured from the sidewalk to the top of the billboard. The proposed project is located at 9015 Sunset Boulevard. The Planning Commission recommended approval of this project in October A City Council public hearing was held on November 3, 2014 and after public testimony and Council discussion, the City Council continued the item to a date uncertain in order for the applicant to address some noted issues with the proposal (discussed below). The applicant submitted a revised proposal in response to Council concerns which included a lower height of the billboard, a new shape and location for the support structure, integrating the signage of the restaurant, and incorporates visors into the sign lighting as a project design feature. Because the current proposal includes an updated design that the Planning Commission has not considered the Planning Commission is being asked to provide a new recommendation to the Council. RECOMMENDATION Staff recommends that the Commission hold the public hearing, consider all pertinent testimony, and recommend that the City Council adopt the Mitigated Negative Declaration, and approve Zone Map Amendment, Development Agreement and Billboard Permit, subject to the conditions in Draft Resolutions PC , PC , and PC : Page 1of13 ITEM 11.8.

2 1) Draft Resolution No. PC : "A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF WEST HOLLYWOOD, RECOMMENDING TO THE CITY COUNCIL ADOPTION OF A ZONE MAP AMENDMENT IN CONJUNCTION WITH THE PROPOSED DEVELOPMENT AGREEMENT, FOR THE PROPERTY LOCATED AT 9015 SUNSET BOULEVARD, WEST HOLLYWOOD, CALIFORNIA." (EXHIBIT A) 2) Draft Resolution No. PC : "A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF WEST HOLLYWOOD, RECOMMENDING TO THE CITY COUNCIL APPROVAL OF A DEVELOPMENT AGREEMENT ASSOCIATED WITH A DOUBLE-SIDED 14 FT. WIDE x 48 FT. HIGH BILLBOARD ATOP A DISTINCTIVE POLE, LOCATED AT 9015 SUNSET BOULEVARD, WEST HOLLYWOOD, CALIFORNIA." (EXHIBIT B) 3) Draft Resolution No. PC : "A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF WEST HOLLYWOOD, RECOMMENDING TO THE CITY COUNCIL APPROVAL OF A BILLOARD PERMIT TO REMOVE A LEGAL NON-CONFORMING ROOF-MOUNTED SIGN AND INSTALL A FREESTANDING, DOUBLE-SIDED, 14 FT. WIDE x 48 FT. HIGH VERTICAL BILLBOARD ATOP A DISTINCTIVE POLE, AND RECOMMENDING ADOPTION OF A MITIGATED NEGATIVE DECLARATION, LOCATED AT 9015 SUNSET BOULEVARD, WEST HOLLYWOOD, CALIFORNIA." (EXHIBIT C) BACKGROUND Application Information A. Date of Application: B. Applicant: C. Property Owner: D. Location: E. Zoning I General Plan: F. Environmental Status: G. Public Notices: June 6, 2011 Andrew Bilanzich of Ace Outdoor Advertising Mikeal Maglieri 9015 Sunset Boulevard SSP (Sunset Specific Plan)/ SSP Mitigated Negative Declaration (CEQA 15070) The public hearing was noticed in accordance with WHMC Section Page 2of13

3 Site and Area Conditions The project site is located at 9015 Sunset Boulevard ("Rainbow Bar & Grill") on the north side of Sunset Boulevard, east of Wetherly Drive and west of San Vicente Boulevard. The adjacent properties on Sunset Boulevard contain a mixture of retail, restaurants, bars and entertainment venues. The project's surrounding zoning and land uses include: North South East West To the north of the subject site are hillside residences in the City of Los Angeles. To the south of the subject site is the Sunset Boulevard right-of-way and commercial uses in the Sunset Specific Plan (SSP) zoning district along the north side of the street. Directly across Sunset Boulevard is the 9000 Sunset building, which, at 194 feet tall, blocks any potential views from the hills to the north, toward the Los Angeles Basin. To the east of the subject site are properties within the SSP Zoning District, which include restaurants, entertainment venues, and a mix of varied office, retail, and commercial uses. To the west of the subject site are properties within the SSP Zoning District, which include restaurants, entertainment venues, and a mix of varied office, retail, and commercial uses. Aerial View of Subject Site Page 3 of13

4 History The Planning Commission considered this item at a public hearing on October 2, After hearing all pertinent testimony, including three members of the public speaking in support of the project and two with some design concerns, the Commission voted to recommend approval of the billboard to the City Council on a 5-1 vote (Yeber opposed, Altschul absent). On November 4, 2014, the City Council reviewed a proposal for a double-sided 14 ft. x 48 ft. billboard atop a 3.5 ft. cruciform-shape pole set back 14 feet from the street (with the top of the billboard face rising to a height of 110 ft.) See Exhibit D for the November 3, 2014 minutes. The City Council continued the hearing with direction for the applicant to work with staff on an appropriate height for the billboard, as well as a signage plan for better integration into the site. In response, minor changes were made to the design of the proposed billboard. The changes are as follows: The proposed height was reduced from 110 ft. to 83 ft., as measured from the sidewalk to the top of the billboard. The shape of the pole structure for the billboard has been changed from a cruciform to a hexagon. The existing Rainbow Bar and Grill sign was proposed to remain in place with the previous project design. However, in the revised project plans, the existing Rainbow Bar and Grill sign would be removed. A new sign for the Rainbow Bar and Grill, consisting of vertically oriented, individual "RAINBOW" lettering and a separate circular "Bar and Grill" sign on the opposite side of the distinctive pole from the letters would be mounted just beneath the proposed billboard. The previously proposed pole structure was set back several feet from the property line and did not extend into the public right-of-way. The currently proposed pole structure would be located at the property line and extend approximately 9 feet over the property line into the public right-of-way. The sign now includes visors to shield the lighting on the sign as a project design feature and a condition of approval to verify that the lighting is. adequately shielded. Table 1: Project Comparison Billboard Previous Project Current Proposal ' Size 48 feet tall x 14 feet wide 48 feet tall x 14 feet wide Height 1 Location ' 1 Support Structure Existing Business Signs 110 ft. All on private property Cruciform shape pole Remain in place 83 ft. Extends 9 ft. over the property line into the PROW Hexagon shape column Integrated into the design of the billboard Page 4of13

5 Previous Proposal Current Proposal Environmental Assessment An IS/MND and a Notice of Intent to Adopt an MND (NOi) were released for public review for the proposed project in September 2014 by the City of West Hollywood. Subsequent to the release of the September 2014 IS/MND and NOi, minor changes were made to the design of the proposed billboard. Although these changes did not result in any potentially significant effects that were not already identified in the September 2014 IS/MND and in fact reduced its effects as compared to the project originally proposed, the City updated the IS/MND and NOi to reflect this new information and re-released the document for public review and comment on October 8, A public comment period began on October 8, 2015, and concluded on October 29, Three comment letters were received during the public review. Two of the letters are from local agencies and the third from the law firm of Manatt, Phelps, and Phillips LLP. Issues raised in the letter from Manatt consist of concerns regarding deficiencies in the analysis that requires the preparation of an EIR to adequately analyze the project. The City's written responses to the environmental issues identified are included in Chapter 7.0 of the Final MND. The Final MND is attached to this report as EXHIBIT E. Page 5of 13

6 Since that time, the MND has been revised as follows. The 2014 IS/MND and the 2015 IS/MND did not account for the existing billboard footing and pole casing that was installed on the project site in 2010 for a previously approved billboard project. This apparatus underwent separate CEQA review and City approvals as part of a 2010 approval for a billboard in the same location (Billboard Permit and Development Agreement ). Thus, the footing and pole casing are part of the existing baseline conditions of the project site and have been part of the existing site conditions since the inception of this project. The baseline condition of the footing and pole casing was inadvertently omitted from the 2014 IS/MND and the 2015 IS/MND. This Final IS/MND has been updated to incorporate the existing foundation and pole casting into the project design and to reflect the reduced scope of the proposed construction activities. In addition to these changes, the document has also been revised in response to comments received on the draft and for clarity. Namely, five new visual simulations were produced, showing the proposed billboard at nighttime and from two new viewpoints that were not previously shown in the 2015 IS/MND. The new simulations that were not in the 2015 IS/MND can be found in F.igures 8, 9, 10, 11, and 12 of this Final IS/MND. The 2014 IS/MND and the 2015 IS/MND set forth mitigation measure VIS-1 to reduce potentially significant aesthetic impacts to below a level of significance. Subsequent to the release of the 2015 IS/MND, the project applicant decided to incorporate mitigation measure VIS-1 into the project design. This means that the four light fixtures installed at the bottom of the double-sided billboard are now designed to be shielded with visors so as to minimize light trespass onto adjacent properties and to minimize glare. Accordingly, the lighting visors have been incorporated into the billboard design as a project design feature and the Mitigation Monitoring and Reporting Program has been revised to include a condition of approval to ensure that light levels are verified prior to operation of the billboard. The Lighting Impact Report completed by Francis Krahe & Associates, Inc. was updated in July of The report found that the proposed new light fixtures along the bottom of the east and west sides of the double-sided billboard would not result in lighting levels beyond the threshold and the lighting impact would be less than significant. Furthermore, with shielding installed on the lights, the adjacent properties would not have direct views of the light sources and glare impacts would be less than significant. Based on CEQA Guidelines Section , recirculation of the 2015 IS/MND prior to adoption is not required. This conclusion is based on the fact that no new, avoidable significant effects have been identified since the start of public review, no new mitigation measures were added, and the text of the document has not been substantially revised in a manner requiring recirculation. As characterized in the Final MND, revisions consist Page 6 of 13

7 of the following: (1) a reduced construction duration and fewer construction activities, (2) a mitigation measure that was previously identified has been incorporated into the design of the project, (3) clarifications and corrections were made throughout the document, and ( 4) additional simulations were added to better explain the conclusions in the document. Some of these revisions were drafted in response to public comments. None of these revisions meets the definition of a "substantial revision" as defined in the CEQA Guidelines Section , since no new avoidable significant effects were identified and no new mitigation measures or revisions are required. Neighborhood Meeting The Zoning Ordinance does not require a neighborhood meeting for this type of request. Public Comment At the time the staff report was published, staff had not received any correspondence from the public regarding the proposed project. ANALYSIS Project Description It has been almost two years since the last time this item was considered by the Planning Commission. The changes proposed to the billboard based on City Council direction has revised the project description Sunset is a one-and-a-half story commercial building that contains an existing restaurant (Rainbow Bar & Grill). The applicant would like to remove the existing legal non-conforming double-sided 16-foot by 9-foot roof-mounted sign and construct a double-sided, pole-mounted, 14 ft. x 48 ft. vertical billboard. The billboard would be mounted on a freestanding uniquely designed pole on the existing billboard footing and pole casing that is located at the southeastern portion of the project site, adjacent to the southern property line along Sunset Boulevard. As such, the billboard sign would extend approximately nine feet over the property line into the public right-of-way. The billboard faces would be visible from either direction on Sunset Boulevard. The billboard rises above the building and above the recommended height limit of 60 ft. The building, as shown on the plans, is approximately 28 ft. high and the top of the billboard face rises to a max height of 83 ft. (EXHIBIT F). The existing vertical freestanding on-site Rainbow sign, as well as the second smaller on-site Bar and Grill sign would be removed. As part of the request, the applicant will remove other illegal signage on the property. A new Rainbow Bar and Grill sign would be mounted to the proposed pole structure. The new Rainbow Bar and Grill sign would consist of individually mounted, internally illuminated letters attached directly to the proposed pole structure to vertically spell "RAINBOW" just below the base of the proposed billboard. The letters would overhang the public right-of-way by approximately three feet. A new, circular "Bar and Grill" sign would be attached directly to the proposed pole structure opposite the RAINBOW letters and would remain on private property. Page 7 of 13

8 Existing roof top sign and building identification sign Required Land Use Permits Proposed Billboard Zone Map Amendment to place the subject site within a Development Agreement Overlay Zone; Development Agreement to alter the development standards for the subject site and allow the height of the billboard to be increased above the height allowed in the SSP zoning district, allow a billboard on a site that is not undergoing new construction nor listed in one of the geographic areas in the SSP approved for a new billboard; Billboard Permit to exchange the existing roof-mounted sign with a two-sided billboard on a unique pole. Revocable Encroachment Permit and coven~nt for the placement and maintenance of the above-ground billboard and signage within the public right-of-way. Development Standards for New Billboards This section of the staff report has expanded on the alternative proposal provision contained within the Sunset Specific Plan. Billboards on Sunset Boulevard are regulated by the Sunset Specific Plan (SSP) and the West Hollywood Municipal Code. New billboards are subject to the standards of Section F.3 of the West Hollywood Municipal Code, which requires that new billboards meet the following requirements: Page 8 of 13

9 a. The Billboard shall be located, designed, constructed and maintained in compliance with the provisions of the Sunset Specific Plan; b. Billboards shall be restricted to one billboard per site, or parcel and restricted in location to sites specifically identified in the Sunset Specific Plan; and c. Permitted only in conjunction with new construction of at least 10,000 square feet or a substantial remodel pursuant to Section E of this code. The billboard exceeds the applicable development standards pertaining to height, new construction, and locational standards. The proposed billboard sign deviates from Section F.3 of the West Hollywood Zoning Ordinance in that it would introduce two billboard faces (back to back) to a site that is not undergoing new construction and/or a substantial remodel as defined by the Zoning Ordinance and is not listed in the SSP as an approved location for a new billboard. Furthermore, the sign, as proposed, would be inconsistent with the height limitations for the proposed site as set forth in the SSP for the subject site (Site 7 A). The height limit allowed for this site by the SSP is 60 feet. The proposed billboard would reach a total height of 83 feet above the sidewalk level. The proposed billboard is a standard size billboard with a vertical orientation, rather than a horizontal orientation. Thus, the sign would be more than 14 feet in height. The SSP has a clause at the end of Chapter II, Section 1, Policies-8 that states the following: "All projects are subject to the applicable design and development requirements, guidelines, and standards listed in this plan; however, the City retains discretion to approve an alternative proposal upon showing that the alternative proposal furthers the goals stated by this plan and is consistent with the purpose and intent of the design and development requirements, guidelines, and standards that would otherwise apply to the project." This is commonly referred to as the alternative proposals provision. The existing roof-mounted sign is not eligible for by-right replacement under the SSP or Zoning Ordinance. However, the existence of nonconforming and illegal signage on the site must be taken into account when assessing whether this project is consistent with the SSP and Zoning Ordinance. The removal of the existing nonconforming and illegal signs and exchange for a distinctive billboard in a different location on the property is not directly addressed in the SSP or the Zoning Ordinance. Therefore, reliance on the alternative proposals provision in the SSP is appropriate for this situation. The proposed project meets the requirements for approval under the alternative proposals provision because it exchanges a nonconforming roof-mounted sign discouraged under the SSP (and other illegal signage) with a distinctive billboard that adds to the visual appeal, diversity and vibrancy of this area of Sunset Boulevard, as encouraged in the SSP. The vertical orientation of what would otherwise be a standard size billboard makes the sign more interesting and creates diversity along the Sunset Strip. The City's urban designer characterized the project with seating as providing a clever way to provide interest to a billboard support. Page 9of 13

10 Since the project is removing nonconforming and illegal signage and adding a distinctive billboard, it is also consistent with the SSP objective for the area, i.e., to improve the appearance of existing buildings by encouraging distinctive facade, roofscape, and signage improvements. Moreover, the proposed project is being located on a property that has long had nonconforming and illegal signage that the City discourages or prohibits. The nonconforming sign is too small to meet the dimensions of a billboard and sits atop a roof. Under the nonconforming ordinance, the rooftop sign could stay in its place indefinitely. With this proposal, the illegal and nonconforming signs will be removed. Also, a unique and distinctive billboard will be placed on the property, which adds to the visual diversity and vibrancy of Sunset Boulevard. Therefore as a distinctive signage improvement, it is not exactly the type of categorically "new" sign that the SSP discusses. For these reasons, the proposed project is consistent with the SSP's Geographic Area 7 objective 3 encouraging signage improvements and the alternative proposals provision. The proposed project enhances the Sunset Strip with a new, distinctively oriented and designed billboard without detracting from the existing visual aesthetics of the Sunset Strip, which is characterized by extensive signage and advertising. Any potential impacts from the sign will be controlled by orienting the sign faces along Sunset Strip and by design features and conditions that ensure the lighting is shielded. The proposed project is also consistent with the overall purpose and intent of the requirements for billboards, which is as follows: "Billboards are one of the signature features of the Sunset Strip. These requirements are designed to allow the Sunset Strip's billboards to continue to represent the Boulevard's unique character, as well as to encourage possibilities for creative and innovative billboards." Sunset Boulevard is a highly urbanized area within the City and is an internationally known corridor, historically recognized for its entertainment uses, restaurants, and nightlife. Billboards and tall wall signs are dominant elements of the visual environment, and unique and creative billboards and tall wall signs are key elements of the iconic image of the Sunset Strip. Notably, the new sign will also include the business identification sign for the iconic Rainbow Bar and Grill. The proposed project is consistent with the vibrant character of the Sunset Strip and furthers the Sunset Strip's unique character by introducing a billboard with a distinctively designed pole structure. The distinctive pole structure and unique orientation of the billboard (i.e., a vertically mounted billboard) are features that support the intent of encouraging creative and innovative billboards. Furthermore, the proposed project would enhance the visual mixture on Sunset Boulevard, creating a more vibrant environment. For the reasons described above, the proposed project would be consistent with the purpose and intent of the design and development requirements, guidelines, and standards that apply to the project. As such, the proposed project is allowable under the Sunset Specific Plan through reliance on the alternative proposal provision. Page 10 of 13

11 Additionally, the sign is allowed under the Zoning Ordinance, through adoption of a Development Agreement and a Zoning Map Amendment to place the site within a Development Agreement Overlay Zone. The City Council's approval of the Development Agreement and Zone Map Amendment would place the property in a Development Agreement Overlay Zone that would allow alternative development standards specific to the subject property rather than development standards otherwise identified in the Zoning Ordinance. With approval of the Billboard Permit, Development Agreement, and Zoning Map Amendment, and findings as required under the alternative proposal provision of the SSP, the proposed project meets the requirements of the WHMC and SSP. Staff also recommends the removal of the unpermitted signage on the south and east elevations of the building used to display small poster size advertisements. The existing doubled-sided, roof-mounted sign from atop the Rainbow Bar and Grill must be removed as part of the exchange for erecting the billboard on the property. Removal of the signage shall be conditioned to take place before final inspection of the new billboard. Urban Design Analysis The description of the billboard has been updated to reflect the current proposal. The revised design is composed of several hexagonal tubes surrounding the existing structural support. The hexagonal forms step down in a cluster to become public seating. The previous proposal was set back 14 feet and bent toward the street. The current proposal is a vertical billboard located near the sidewalk. The billboard is considerably lower than the previous proposal, as requested by Council. Additionally, the sign for the Rainbow Bar.and Grill is incorporated at the back of the vertical support, better integrating it with the overall sign. The combination of hexagonal forms that step down to become seating is a very clever way to provide some interest to the billboard support. The height of the sign is more appropriate and the integration of the Rainbow Bar and Grill sign is an improvement. A design recommendation would be to paint the steel plates that form the hexagon around the support structure a darker color, similar to the color of the frame wrapping the billboard. A condition has been added to provide additional design attention to the color scheme of the support structure. (Condition 6.3) Development Agreement Analysis The proposed project includes a Development Agreement. A Development Agreement is a legal mechanism that allows a project applicant the ability to propose a project with standards that may deviate from those allowed in the Zoning Ordinance or SSP if the property is placed in a Development Agreement Overlay Zone. As set forth in W.H.M.C. Section E, the development and land use standards within the Development Agreement Overlay District are specified in the Development Agreement and the Zoning Ordinance. If there is a conflict between the Development Agreement and the Zoning Page 11 of 13

12 Ordinance, the Development Agreement controls. The development agreement provides the owner vested rights to the sign for 20 years. In return, the project applicant agrees to provide a public benefit to the City. The decision to approve or deny a Development Agreement is made by the City Council on a case-by-case basis. The Council must first adopt a Zone Map Amendment to place the subject parcel in the DA Overlay Zone. Then, the Council may adopt the Development Agreement by ordinance. A Development Agreement is different from a Variance, for which findings of hardship must be made. As such, approval of this particular Development Agreement would not set precedent for future approvals. The Development Agreement created for this project is attached as Attachment A in Resolution No. PC The City has recognized that certain public benefits would accrue to the City in permitting the project, and may grant a development agreement in exchange for that benefit. For example, the financial benefits derived from the agreement would support City services and programs. The terms of the Development Agreement have not changed other than the amount of the financial public benefit. The amount was lowered based on the decrease in height and reduced visibility of the billboard. The proposed Development Agreement between Roxy Theater Corporation II and the City of West Hollywood contains conditions and terms as well as a financial component, all of which bind future City Councils and owners of the subject property to the terms and obligations specified in the agreement. These include: Section identifies a financial public benefit provided to the City in the amount of $12,450 every four weeks. Section includes a statement that "this agreement does not confer upon Owner a right to an unobstructed view of the Permitted Sign." Section states that adjustments to the financial benefit are based on the Consumer Price Index. Section 3.6 provides an occupancy requirement provision th.at would prohibit the continued use and maintenance of the billboard if more than 50% of the usable commercial floor area is vacant for more than six consecutive months. Section 3.2 contains language that allows a creative billboard to be approved by the Director for a maximum period of up to six months. Section 6.1 contains language specifying that the billboard would not convey any permanent or vested right to be maintained after the term of the DA. For example- after the initial term, the City can agree to extend the DA for another 20 years. If agreement expires and it is not extended, the billboard must be removed. Page 12of13

13 If the Development Agreement is approved by City Council, the Zoning Map will be amended to reflect that the site is included in a Development Agreement Overlay District, as required in the Zoning Ordinance. WEST HOLLYWOOD STATUTES AND FINDINGS OF FACT The application for the proposed project requires the review and recommendation of the Zoning Map Amendment, Development Agreement, and Billboard Permit by the Planning Commission and final approval by the City Council. The specific findings are described in the attached draft Resolutions numbered PC (Exhibit A), PC (Exhibit B), and PC (Exhibit C). SUMMARY The revised design of the billboard addresses the concerns raised by the City Council. In addition, the proposed Development Agreement will provide a substantial and ongoing public benefit to the City. The Development Agreement also furthers the goals of the Sunset Specific Plan by encouraging the construction and operation of billboards as a major urban design feature of the Sunset Strip, by contributing to the unique character and vibrancy of the Sunset Strip consistent with the purposes and intent of the Specific Plan, and by generating revenue for the City. The proposed project's light and glare impacts are less than significant and a condition of approval has been included to verify the effectiveness of the proposed lighting design. Consequently, staff concludes that the proposed project is consistent with the goals, objectives and policies of the General Plan and Sunset Specific Plan. EXHIBITS A. Draft Resolution No. PC (Zoning Map Amendment) B. Draft Resolution No. PC (Development Agreement) C. Draft Resolution No. PC (Billboard Permit) D. City Council meeting minutes dated November 3, 2014 E. Initial Study and a Mitigated Negative Declaration F. Project Plans Page 13 of13

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