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HomeMy WebLinkAbout31B - CUP - 201 E 4TH STREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 16, 2014 TITLE: CONDITIONAL USE PERMIT NO. 2013 -32 TO ALLOW A TYPE 47 ALCOHOL BEVERAGE CONTROL LICENSE, CONDITIONAL USE PERMIT NO, 2013-33 TO ALLOW AFTER -HOURS OPERATION, AND CONDITIONAL USE PERMIT NO. 2013 -34 TO ALLOW A BANQUET USE AT THE FOURTH STREET MARKET LOCATED AT 201 EAST FOURTH STREET - ROBERT QUINN, APPLICANT CITY MAN ER CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading 11 Ordinance on 2n° Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER RECOMMENDED ACTION Receive and file the staff report approving Conditional Use Permit No. 2013 -32, Conditional Use Permit No. 2013 -33 as conditioned, and Conditional Use Permit No. 2013 -34 as conditioned. PLANNING COMMISSION ACTION On August 25, 2014, the Planning Commission adopted a resolution approving Conditional Use Permit No. 2013 -32 for a Type 47 Alcoholic Beverage Control license in order to sell beer, wine and distilled spirits for on- premise consumption; Conditional Use Permit No. 2013 -33 as conditioned to allow after -hour operations until 2:00 a.m.; and Conditional Use Permit No. 2013- 34 as conditioned to allow a banquet use by a vote of 7:0 at the Fourth Street Market located at 201 East Fourth Street in the Transit Zoning- Downtown (SO84) zoning district. The Planning Commission made no changes to the recommended conditions of approval outlined in the attached staff report (Exhibit A). DISCUSSION The Fourth Street Market is a "food hall" concept that will feature individual food stalls, or mini - restaurants, in an open floor plan with shared seating throughout the space. The building will also include an incubator kitchen for use by those who may be starting out in the restaurant business or who are transitioning from home or mobile food production to "brick- and - mortar" production. The incubator kitchen will also be used for demonstrations and classes. The market will also feature a store where customers can purchase items such as gourmet cheese, fresh meat and produce, spices, fish and artisan coffee. Full -sized plans are available for public viewing in the Clerk of the Council Office. 31 B -1 CUP Nos. 2013 -32, 2013 -33 & 2013 -34 September 16, 2014 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal No. 3 Objective No. 2 (create new opportunities for business /job growth development through new General Plan and Zoning Ordinance policies). FISCAL IMPACT There is no fiscal impact associated with this action. �.lh,t,�il� Q✓ Karen Haluza Interim Executive Director Planning & Building Agency HS:rb ha: /FOUM Street— MarketrCUP13.32,33,34.= Exhibit: A. Planning Commission Staff Report 31 B -2 Economic Development, and encourage private R!"'E II R F�lai nnfing C mnml'us 'ion Action l,'LANNIING CIOMN SS110U1 MIElEtTIN II)AiE AUGUST 25, 2014 rllTLE PUBLIC HEARING — FILED BY ROBERT QUINN FOR CONDITIONAL USE PERMIT NO. 2013 -32 TO ALLOW A TYPE 47 ALCOHOL BEVERAGE CONTROL LICENSE, CONDITIONAL USE PERMIT NO. 2013 -33 TO ALLOW AFTER -HOURS OPERATION, AND CONDITIONAL USE PERMIT NO. 2013 -34 TO ALLOW A BANQUET USE AT THE FOURTH STREET MARKET LOCATED AT 201 EAST FOURTH STREET Prep are,d b,y Hally Soboleske Nnter4n i_;rs,cufive. Dire Dr RECOMMENDED ACT MN 11: :111..ANNIIING C011N AISS110N No C u :al ":T "ARY AE''PRrrvIT) [I As Rec,omin ended 1 As A iendesd I E)edt P9.i1bhc He� , -.mng Fot DE ITED I:_7 Applicant's Request C::I Staff lxecamme lotion CON I NIIE:C:c 10 a � a'w,r Ac ing Planning i'Vanag -' 1. Adopt a resolution approving Conditional Use Permit No. 2013 -32 to allow a Type 47 ABC license. 2. Adopt a resolution approving Conditional Use Permit No. 2013 -33 as conditioned to allow after hours operations until 2:00 a.m. 3. Adopt a resolution approving Conditional Use Permit No. 2013 -34 as conditioned to allow a banquet use. DISCUSSION Request of Applicant Robert Quinn, representing East Market Restaurants, Inc., is requesting approval of a conditional use permit (CUP) to allow a Type 47 Alcoholic Beverage Control (ABC) license for the on- premise sale and consumption of beer, wine and distilled spirits at a new restaurant/marketplace. Establishments that sell alcoholic beverages require a conditional use permit pursuant to Section 41 -196 of the Santa Ana Municipal Code (SAMC). The applicant is also requesting approval of a CUP to allow business operations until 2:00 a.m. per Section 41 -2007 of the SAMC and to allow a banquet use pursuant to Section 41 -2008 of the SAMC. Project Location and Site Description The Fourth Street Market is proposed to be located within an existing building on Fourth Street between Bush and Spurgeon Streets. The lot is approximately 26,116 square feet in size, and is developed with a two -story 50,000 square foot commercial building. The Fourth Street Market EXHIBITA 31 B -3 CUP Nos. 2013 -32, 2013 -33 & 2013 -34 August 25, 2014 Page 2 proposes to occupy 16,000 square feet on the ground floor as well as the 8,000 square foot basement that will be used for storage. Surrounding land uses include the Career College of California on the upper floors, and commercial /retail to the north, south, east and west (Exhibits 1, 2 and 3). Although overconcentration criteria are not applicable to on -sale ABC licenses, a review of the project vicinity indicates there are currently nine ABC licenses located within 500 feet of the project site in addition to the proposed license. These nine ABC licenses include two Type 41 licenses, (on -sale beer and wine), six Type 47 ABC licenses (on -sale beer, wine and distilled spirits), and one Type 21 license (off -sale beer and wine). However, this information does not affect the analysis or recommendation contained in this report. Proiect Description The Fourth Street Market proposes to be located within an existing building on Fourth Street between Bush and Spurgeon Streets. The building has traditionally contained a mixture of individual commercial uses, including retail, office, restaurant, and service uses. The previous tenants were retail and included Dolex Dollar Express and Fiesta Camera and Photo. With suite consolidation, the new space will be approximately 16,000 square feet in size. Additionally, the Fourth Street Market will utilize the 8,000 square foot basement for storage, and a private alley to the rear (north) of the building as a 2,893 square foot outdoor patio area. The Fourth Street Market is a "food hall' concept that will feature individual food stalls, or mini - restaurants, in an open floor plan with shared seating throughout the space. The building will also include an incubator kitchen for use by those who may be starting out in the restaurant business or who are transitioning from home or mobile food production to "brick- and - mortar" production. The incubator kitchen will also be used for demonstrations and classes. The market will also feature a store where customers can purchase items such as gourmet cheese, fresh meat and produce, spices, fish and artisan coffee. The "food hall' concept, while having a long history in other parts of the country, is relatively new to this area. Some examples include the long- standing Grand Central Market (27,000 sq. ft.) in Los Angeles and the new Anaheim Packing House (42,000 sq. ft.) in Anaheim. In conjunction with the new restaurants, the applicant is requesting approval of a Type 47 Alcoholic Beverage Control (ABC) license to allow the on- premise sale and consumption of beer, wine, and distilled spirits. Alcohol sales will occur at a fixed bar service area, similar to what one might find in a traditional restaurant. This is in contrast to the Anaheim Packing House, which has multiple liquor licenses including a Type 48, which allows liquor sales with no food service. The primary use of the Fourth Street Market will be restaurant related, with some retail sales of food products. Alcohol sales and service will be ancillary to the food related uses. The alcohol storage and display areas total approximately 85 square feet, which is less than five percent of the floor area and is consistent with the SAMC requirement that alcohol storage and display not exceed five percent of the gross floor area of the restaurant (Exhibits 4 and 5). 31 B -4 CUP Nos. 2013 -32, 2013 -33 & 2013 -34 August 25, 2014 Page 3 The proposed hours of operation for the Fourth Street Market are seven days a week from 6:00 a.m. to 2:00 a.m. Operations past 12:00 midnight in the Transit Zoning Code (SD -84) require approval of a separate CUP. The applicant also is requesting a CUP for banquet use to allow for special events and private functions, though it is not the applicant's intention to operate as a dedicated banquet facility. Project Background The Fourth Street Market building is not a historic structure and is not located within the Downtown National Register Historic District, but is within the Downtown District of the Transit Zoning Code (SD84). The building has been occupied by a variety of retail, service, and restaurant businesses and office uses on the upper floors. The Fourth Street Market will house independently owned restaurants specializing in restaurant start-ups and gourmet retail food selections. The proprietors of the Fourth Street Market are the owners /operators of the Playground restaurant, which is located nearby. General Plan and Zoning Consistency The General Plan land use designation for the site is District Center (DC). District Center areas are designed to serve as anchors for the City's commercial corridors, and to accommodate major development activity. District Centers are to be developed with an urban character including a mix of office, commercial and residential land uses including other restaurants with ABC licenses. The project site is consistent with this General Plan land use designation. The zoning for the site is the Transit Zoning Code /Specific District 84 (SD -84). The SD -84 zoning district allows for retail and service uses such as restaurants, making the proposed use consistent with the zoning code. Proiect Analysis Conditional use permit requests are governed by Section 41 -638 of the SAMC. Conditional use permit requests may be granted when it can be shown that the following can be established: + That the proposed use will provide a service or facility which will contribute to the general well being of the neighborhood or community. • That the proposed use will not, under the circumstances of the particular case, be detrimental to the health, safety, or general welfare of persons residing or working in the vicinity. + That the proposed use will not adversely affect the present economic stability or future economic development of properties surrounding the area. That the proposed use will comply with the regulations and conditions specified in Chapter 41 for such use. 31 B -5 CUP Nos. 2013 -32, 2013 -33 & 2013 -34 August 25, 2014 Page 4 • That the proposed use will not adversely affect the General Plan of the City or any specific plan applicable to the area of the proposed use. If these findings can be made, then it is appropriate to grant the conditional use permit. Conversely, the inability to make these findings would result in a denial. Using this information staff has prepared the following analysis, which, in turn forms the basis for the recommendation contained in this report. In analyzing the conditional use permit requests, staff believes that the following findings of fact warrant approval of the conditional use permits. Conditional Use Permit No. 2013 -32 — Type 47 ABC license: The Fourth Street Market is requesting approval of a Type 47 Alcoholic Beverage Control (ABC) license to allow the on- premise consumption of beer, wine, and distilled spirits. The applicant intends to sell alcoholic beverages as an ancillary service to the primary restaurant and retail uses. Staff has reviewed the applicant's request and has determined that the proposed establishment is in compliance with the standards for establishments selling alcoholic beverages. • The proposed alcohol beverage license will provide an ancillary service to the restaurant's customers by allowing them the ability to purchase beer, wine, and distilled spirits with their food. This will thereby benefit the community by providing restaurants with an additional and complementary food - related amenity. Standards have been placed on the alcoholic beverage control license which will mitigate any potential impacts created by the use and ensure that the use will not negatively affect the surrounding community. • The proposed license for the on -sale consumption of alcohol at this location will not be detrimental to persons residing or working in the vicinity because the applicable standards for an on -sale alcoholic beverage control license will mitigate any potential negative or adverse impacts created by the use. In addition, the use will primarily occur within the premises and is incidental to an established bona fide eating establishment. • The proposed use will not adversely affect the economic stability of the area, but will instead allow the restaurants to compete with other restaurants in the area that also offer full alcoholic beverages for sale to their guests and other visitors. Additionally, the ABC license will allow the restaurants to be economically viable and contribute to the success of the entire area. • The proposed project will be in compliance with all applicable regulations imposed on a restaurant selling alcohol pursuant to Chapter 41 of the Santa Ana Municipal Code (Exhibit 6). The facilities have the kitchen facilities necessary to be considered bona fide restaurant uses and are eligible to obtain a restaurant related alcoholic beverage control license. Additionally, the restaurants will utilize less than five percent of the gross floor area for the storage of alcoholic beverages, which is below the maximum threshold established by the Municipal Code. RIDW CUP Nos. 2013 -32, 2013 -33 & 2013 -34 August 25, 2014 Page 5 • The proposed use will not adversely affect the General Plan. Policy 1.8 of the Land Use Element encourages a balance of land uses to address basic community needs through encouraging commercial services. Approval of the Fourth Street Market will provide additional dining and retail uses within the Downtown, which is a primary commercial area of the city. Policy 2.2 of the Land Use Element encourages land uses that accommodate the City's needs for various goods and services, and this facility proposes a variety of retail and food establishments. Policy 2.9 of the Land Use Element supports developments that create a business environment that is safe and attractive, and the Fourth Street Market proposes to offer a family friendly environment. Operation standards for the proposed Type 47 ABC license are intended to maintain a safe and attractive environment in Santa Ana. Policy 5.5 of the Land Use Element encourages development that is compatible with and supporting of surrounding land uses. The proposed Fourth Street Market will be located in a commercial corridor and is compatible with surrounding land uses. Restaurants with an ancillary alcohol license provide a dining service to the residents of Santa Ana. Conditional Use Permit No. 2013 -33 — After Hours Operation: Santa Ana Municipal Code (SAMC) Section 41 -2007 (Table 2A) requires a conditional use permit for any eating establishment with hours of operation that is between midnight and 7:00 a.m. The Fourth Street Market proposes to operate from 6:00 a.m. to 2:00 a.m. seven days a week, which is consistent with the operating hours of the other downtown restaurants. The Fourth Street Market proposes to be open for breakfast, lunch, and dinner. • The proposed after -hours operation will provide an ancillary service to the restaurant customers by allowing them the ability to offer meals after 12:00 midnight, thereby providing an additional dining option within the downtown area. This will benefit the community by providing restaurants with an additional and complementary food - related amenity. The after -hours operation is consistent with that of other restaurants in the downtown and offers customers another late night dining and food related retail alternative. Conditions have been placed on the after -hours permit that will mitigate any potential impacts created by the use and ensure that the use will not negatively affect the surrounding community. • The proposed after -hours operation is consistent with other restaurants operating in the downtown, and provides additional food choices for local residents and visitors. The after -hours operation will not be detrimental to persons residing or working in the vicinity because conditions have been placed on the permit that will mitigate any potential negative or adverse impacts created by the use. In addition, the after -hours dining will occur within the premises and will not create adverse impacts. • The proposed use will not adversely affect the economic stability of the area, but will instead allow the restaurants to compete with other nearby restaurants that also offer after -hours meals to their patrons. Moreover, the late night hours allows the restaurants and food related retail to remain economically viable and contributes to the overall success of the City, helping to decrease the 31 B -7 CUP Nos. 2013 -32, 2013 -33 & 2013 -34 August 25, 2014 Page 6 number of vacant tenant spaces that may affect the economic viability of the site. The after -hours operation will contribute to the success of Santa Ana by widening the time frame that food service and food related retail is available thereby encouraging customers to visit and stay longer in the area. As conditioned, the proposed project will be in compliance with all applicable regulations and conditions imposed on restaurants open after 12:00 midnight pursuant to Chapter 41 of the Santa Ana Municipal Code. • The proposed use will not adversely affect the General Plan. Policy 2.2 of the Land Use Element encourages land uses that accommodate the City's needs for goods and services. Restaurants that operate after hours will provide a dining service to the residents of Santa Ana. Policy 2.9 of the Land Use Element supports developments that create a business environment that is safe and attractive. Conditions of approval, in conjunction with the operation standards for the proposed Type 47 ABC license, will help maintain a safe and attractive environment in Santa Ana. Policy 5.5 of the Land Use Element encourages development that is compatible with and supporting of surrounding land uses. The proposed Fourth Street Market will be located in a commercial corridor and is compatible with surrounding land uses. Restaurants with an ancillary alcohol license provide a dining service to the residents of Santa Ana. Conditional Use Permit No. 2013 -34 — Banquet facility: The Fourth Street Market also proposes to operate an ancillary banquet facility, which would allow a portion of the market to be closed to the general public for private events. The intent is to operate restaurants and retail; however, private events may be allowed on certain occasions. Per the SAMC, banquet facilities must have a kitchen facility, sanitation facilities, and a licensed security guard for every 100 persons in attendance per event. As proposed, the project meets or exceeds the standards for a banquet use. The allowance of a banquet facility in the Fourth Street Market will be consistent with other restaurants and will result in a facility that maintains a stronger economic viability due to the ability to host private events. The proposed banquet facility will provide an ancillary service to the restaurants and their customers by providing a viable space to host special functions. This will benefit the community by providing the Fourth Street Market with an additional and complementary food - related amenity within the City. Conditions have been placed on the CUP that will mitigate any potential impacts created by the use and ensure that the use will not negatively affect the surrounding community. The proposed banquet facility at this location will not be detrimental to persons residing or working in the vicinity because conditions have been placed on the permit that will mitigate any potential negative or adverse impacts created by the use. In addition, a banquet facility at this location will provide an ancillary service to the community, and will occur within the premises and is incidental to the primary restaurant use. RITWOO CUP Nos. 2013 -32, 2013 -33 & 2013 -34 August 25, 2014 Page 7 • The proposed use will not adversely affect the economic stability of the area, but will instead allow the restaurants to compete with other nearby restaurants that also offer banquet facility for special events and private parties. Moreover, the banquet use will allow the restaurants to remain economically viable and contribute to the overall success of the downtown area in which it is located, helping to decrease the number of vacant tenant spaces that may affect the economic viability of the site. • As conditioned, the proposed project will be in compliance with all applicable regulations and conditions imposed on restaurants operating a banquet use pursuant to Chapter 41 of the Santa Ana Municipal Code. • The proposed use will not adversely affect the General Plan. Policy 2.2 of the Land Use Element encourages land uses that accommodate the City's needs for goods and services. A restaurant with a banquet facility will provide an additional dining service to the residents of Santa Ana. Policy 2.9 of the Land Use Element supports developments that create a business environment that is safe and attractive. Operation standards for the proposed Type 47 ABC license will maintain a safe and attractive environment in Santa Ana. Policy 5.5 of the Land Use Element encourages development that is compatible with and supporting of surrounding land uses. The proposed Fourth Street Market will be located in a commercial corridor and is compatible with surrounding land uses. Restaurants with an ancillary alcohol license provide a dining service to the residents of Santa Ana. Police Department Analysis The Police Department reviews conditional use permit applications for the sale and service of alcoholic beverages and after -hours operation in order to ensure that the potential crime and nuisance behaviors associated with alcohol consumption are mitigated to the greatest extent possible. For on -sale licenses the Police Department analyzes the crime rate in the area using the standards and definitions contained in the Business and Professions Code Section 23948.4(c)(2), which also are utilized by the State Department of Alcoholic Beverage Control (ABC). This section defines `reported crimes" as criminal homicide, forcible rape, robbery, aggravated assault, burglary, larceny theft, and motor vehicle theft, combined with all arrests for other crimes, both felonies and misdemeanors, except traffic citations. The Police Department then compares the number of such crimes in the reporting district as compared to the number of crimes in other reporting districts. In keeping with the standard used by State ABC and Business and Professions Code, should the Police Department determine that the reporting district has a 20 percent greater number of reported crimes than the average number found in all reporting districts, the Police Department will consider this information in making its recommendation. 31 B -9 CUP Nos. 2013 -32, 2013 -33 & 2013 -34 August 25, 2014 Page 8 The project at 201 East Fourth Street is located in Reporting District No. 165. This reporting district is 20 percent higher than the average number of reported crimes in all reporting districts. Although the crime rate is 20 percent higher, the Police Department contends that the operational standards and proposed conditions of approval will mitigate any potential negative impacts to the surrounding community. As a result, conditions of approval are included as required by the SAMC that will address any concerns. Public Notification The project site is located within the boundaries of the Downtown Business Association and the Lacy Neighborhood Association. Staff contacted the presidents of the Downtown and Lacy Neighborhood Associations to insure they were notified of this project and to identify any areas of concern. No issues were raised by the Association Presidents regarding the project. The project site itself was posted with a notice advertising this public hearing, a notice was published in the Orange County Reporter and mailed notices were sent to all property owners and tenants within 500 feet of the project site. At the time of this printing, no correspondence, either written or electronic, had been received from any members of the public. CEQA Compliance In accordance with the California Environmental Quality Act the recommended action is exempt from further review per Section 15301. The Class 1 exemption allows the licensing of existing private structures and facilities when there is no expansion of the existing use, but allows the operation, repair, maintenance, permitting, or leasing of existing structures. Categorical Exemption Environmental Review No. 2013 -64 will be filed for this project. Conclusion Based on the analysis provided within this report, staff recommends that the Planning Commission approve Conditional Use Permit No. 2013 -32, Conditional Use Permit No. 2013 -33 as conditioned and Conditional Use Permit No. 2013 -34 as conditioned. Hally Soboleske Associate Planner HS:jm hs: /Fou rth_Street_MarkeUC UP 1332, 33,34. pc 31 B -10 CUP Nos. 2013 -32, 2013 -33 & 2013 -34 August 25, 2014 Page 9 Attachments: Exhibit 1 Vicinity Map Exhibit 2 — Location Map Exhibit 3 — Site Photo Exhibit 4 — Floor Plan Exhibit 5 — Site Plan Exhibit 6 — Operational Standards for On -Sale Establishments 31 B -11 SEVENTEENTH ST. 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ANNM�MMUNIWDEVE IE NT S' �RCP N CA F4ANN®S10PPNGGBNi6i P13D NANNEDFdSIDAVlALDEVEOLMNNT C5 AR ALOJMME AL CUP 2013-32,33 & 34 1 THE FOURTH STREET MARKET 201 EAST FOURTH STREET — — = 500 FEET 1" = 1000 FEET P L A N N I N G A N D B U I L D I N G A G E N C Y EEXHHBIT 1 31842 5TH 4TH C 0 m M C 14 C O M M E R C I A L 3RD F- w w m F- Ln 2 m C 0 M MERClIAL C O M M E R C I A L STREET z C O M M E R C I A L O w l7 m a C O M M E R C I A L STREET STREET C O M M E R C I A L CUP 2013 -32, 33 & 34 THE FOURTH STREET MARKET r 201 EAST FOURTH STREET �V P L A N N I N G A N 0 B U I L D I N G A G E N C Y LAND USE MAP EXHIBIT Z 31 B -13 CONDITIONAL USE PERMIT NOS. 2013 -32, 2013 -33, & 2013 -34 FOURTH STREET MARKET 201 EAST FOURTH STREET SITE PHOTO EXHIBIT 3 31B-14 ARGSV6 01 SS300V A83AI130 10 Mdd•�'.�.�dd. 11'.bddY ji.ildS�., '� �IlO,lisl�rll ail � 11 101 w o p w w2 0 N '" 0 rvin 1 w N V w I 0< u ui E Q� ui ui iDD?JiS Hsno LL w. LL of ui R-Xjf@lT 5 o \\ � a r[J" -k� iAAaUS N0302indS OA If LL �jr 'VIT 'iii U) HIM ON z o LU 0 R I w U) 0- z w Z uj < �---Z--< < UJ U) z cn oN Wr 0< u ui E Q� ui ui iDD?JiS Hsno LL w. LL of ui R-Xjf@lT 5 o \\ � a w U) 0- z w Z uj < �---Z--< < UJ U) z cn oN Wr ui Q� 0 0 ui iDD?JiS Hsno LL w. LL of ui R-Xjf@lT 5 o \\ � a r[J" -k� iAAaUS N0302indS OA If LL �jr 'VIT 'iii ON z o LU 0 INX w LU 0 0 iDD?JiS Hsno w. LL of R-Xjf@lT 5 o \\ � a r[J" -k� iDD?JiS Hsno w. LL R-Xjf@lT 5 Sec. 41 -196. Establishments selling alcoholic beverages. Operational standards for on -sale establishments. The following operational standards shall be included in the conditions of approval for the conditional use permit required pursuant to Section 41 -196 1. The premises shall at all times be maintained as a bona -fide eating establishment as defined in Section 23038 of the California Business and Professions code and shall provide a menu containing an assortment of foods normally offered. The premises must have suitable kitchen facilities and supply an assortment of foods commonly ordered at various hours of the day. Full and complete meals must be served whenever the privileges of the on -sale license are being exercised. 2. There shall be no fixed bar or lounge area upon the premises maintained for the sole purpose of sales, service or consumption of alcoholic beverages directly to patrons. A fixed bar or lounge may be permitted if patrons may order food being offered to the general patrons of the eating establishment. 3. The sales, service, and consumption of alcoholic beverages shall be permitted only between the hours of 8:00 a.m. and 12:00 a.m. unless otherwise amended by the granting of a conditional use permit for after -hours operations pursuant to Santa Ana Municipal Code Chapter 41. 4. It shall be the applicant's responsibility to ensure that no alcoholic beverages are consumed on any property adjacent to the licensed premises under the control of the applicant, with the exception of any enclosed patio areas. 5. The applicant or an employee of the licensee must be present to monitor all areas of the establishment, including outdoor patios, during all times that alcoholic beverages are being served or consumed. 6. All employees serving alcoholic beverages must complete Responsible Beverage Service Training, or an equivalent approved by the State Department of Alcoholic Beverage Control, prior to being able to serve alcoholic beverages to patrons. Evidence of the completion of such training must be maintained on the premises and available for inspection upon request by the City. 7. During those times when patrons are restricted to 21 years of age or older, the applicant shall at all times utilize an age verification means or device for all purchases of alcoholic beverages. Such verification of age is not intended to discriminate against patrons based on race, ethnicity or legal status, but only to comply with state law restricting the sale of alcohol to those 21 and older. 8. Queuing lines shall be managed in an orderly manner and all disruptive and /or intoxicated patrons shall be denied entry. The business owner, or his designee, shall be responsible for monitoring the queuing lines at all times. EXHIBIT 6 31BA7 9. The outdoor queuing line shall not block public walkways or obstruct the entry or exit doors of adjacent businesses. Stanchions or barriers must be used to maintain order at all times the queue exceeds 25 patrons. All stanchions or barriers located on public property must be approved by the Public Works Agency. 10. Employees and contract security personnel shall not consume any alcoholic beverages during their work shift, except for product sampling for purposes of employee education about new products. Under no circumstances may contract security personnel consume alcoholic beverages during their work shift. 11. There shall be no exterior advertising of any kind or type, including window signs or other signs visible from outside, that promote or indicate the availability of alcoholic beverages on the premises. Interior displays of alcoholic beverages or signs, which are clearly visible to the exterior, shall constitute a violation of this condition. Permissible window displays must be kept to a minimum for maximum visibility and shall not exceed 25 percent of window coverage. Floor displays shall not exceed three feet in height. 12. There shall be no promotions encouraging intoxication or drinking contests or advertisements indicating "buy one drink, get one free', "two for the price of one ", or "all you can drink for..." or similar language. 13. Any pool tables, amusement machines or video games maintained on the premises at any time must be reviewed and approved in a security plan submitted to the Chief of Police. 14. Live Entertainment, including but not limited to, amplified music, karaoke, performers and dancing, shall be subject to the issuance of an entertainment permit pursuant to Santa Ana Municipal Code ( "SAMC ") Chapter 11 — Entertainment, and shall comply with all of the standards contained therein. Notwithstanding this requirement, music /noise shall not be audible beyond 20 feet from the exterior of the premises in any direction. 15. Neither the applicant, nor any person or entity operating the premises with the permission of the applicant, shall violate the City's adult entertainment ordinance contained in SAMC Section 12 -1 and 12 -2. 16. The premises shall not be operated as an adult entertainment business as such term is defined in SAMC Section 41- 1701.6. 17. The applicant(s) shall be responsible for maintaining free of litter the area adjacent to the premises under the control of the licensee. 18. There shall be no public telephones located on the exterior of the premises. All interior pay phones must be designed to allow outgoing calls only. i OO 19. Any graffiti painted or marked upon the premises or on any adjacent area under the control of the licensee(s) shall be removed or painted within 24 hours of being applied. 20. Existing bona fide eating establishment and required parking must conform to the provisions of Chapter 8, Article II, Division 3 of the Santa Ana Municipal Code (Building Security Ordinance). These code conditions will require that the existing project lighting, door /window locking devices and addressing be upgraded to current code standards. Lighting standards cannot be located in required landscape planters. Prior to issuance of Letter of Approval to the Alcohol Beverage Control Board, this condition must be complied with. 21. A timed - access cash controller or drop safe must be installed. 22. Install a silent armed robbery alarm. 23. The owner or manager of the licensed premises shall maintain on the premises a written security policy and procedures manual that has been approved by the Police Department, addressing at a minimum the following items: a. Procedures for handling obviously intoxicated persons. b. The method for establishing a reasonable ratio of employees to patrons, based upon activity level, in order to ensure adequate staffing levels to monitor beverage sales and patron behavior. C. Procedures for handling patrons involved in fighting, arguing or loitering about the building, and /or in the immediate adjacent area that is owned, leased, rented or used under agreement by the Licensee(s). d. Procedures for verifying the age of patrons for purposes of alcohol sales. e. Procedures for ensuring that servers monitor patrons to ensure that their drinking limit/potential intoxication is not exceeded. This procedure should include a description of the procedure the server would use to warn, or refuse to serve, the patron. f. Procedures for calling the police regarding observed or reported criminal activity. g. Procedures for management of queuing lines. h. The location and description of any video games proposed to be on the premises. 31BA9 24. The operator shall be responsible for submitting a detailed outdoor fencing and dining plan where outdoor dining is proposed as part of the business operation. If the proposed dining area or fencing is in the public right of way, the applicant must obtain all required permits and approvals from the Public Works Agency, 25. Combined alcohol storage and display areas shall not exceed five percent (5 %) of the gross floor area of the licensed establishment. 31 S=20 ROH - 08/25/14 RESOLUTION NO. 2014 -31 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SANTA ANA APPROVING: CONDITIONAL USE PERMIT NO. 2013 -32 TO ALLOW A TYPE 47 ALCOHOLIC BEVERAGE CONTROL LICENSE, CONDITIONAL USE PERMIT NO. 2013-33 AS CONDITIONED TO ALLOW AFTER -HOURS OPERATION, AND CONDITIONAL USE PERMIT NO. 2013 -34 AS CONDITIONED TO ALLOW A BANQUET USE, FOR THE PROPERTY LOCATED AT 201 EAST FOURTH STREET BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Planning Commission of the City of Santa Ana hereby finds, determines and declares as follows: A. Applicant is requesting approval of: Conditional Use Permit No. 2013 -32 to allow a Type 47 Alcoholic Beverage Control (ABC) license, Conditional Use Permit No. 2013 -33 to allow after -hours operations until 2:00 a.m., and Conditional Use Permit No. 2013 -34 to allow a banquet use, for the property located at 201 East Fourth Street. B. Santa Ana Municipal Code Section 41 -2007 requires a conditional use permit for: the sale of alcoholic beverages for on -site consumption, businesses operating between the hours of 12:00 a.m. and 7:00 a.m., and the operation of a banquet facility. C. On August 25, 2014, the Planning Commission held a duly noticed public hearing on Conditional Use Permit No. 2013 -32, Conditional Use Permit No. 2013 -33, and Conditional Use Permit No. 2013 -34. D. The Planning Commission determines that the following findings, which must be established in order to grant this Conditional Use Permit pursuant to Santa Ana Municipal Code Section 41 -638, have been established for Conditional Use Permit No. 2013 -32 to allow for a Type 47 ABC license: Will the proposed use provide a service or facility which will contribute to the general well being of the neighborhood or the community? The proposed alcohol beverage license will provide an ancillary service to the restaurant's customers by allowing them the ability to purchase beer, wine, and distilled spirits Resolution No. 2014 -31 31 B -21 Page 1 of with their food. This will thereby benefit the community by providing restaurants with an additional and complementary food - related amenity. Standards have been placed on the alcoholic beverage control license which will mitigate any potential impacts created by the use and ensure that the use will not negatively affect the surrounding community. 2. Will the proposed use under the circumstances of the particular case be detrimental to the health, safety, or general welfare of persons residing or working in the vicinity? The proposed license for the on -sale consumption of alcohol at this location will not be detrimental to persons residing or working in the vicinity because the applicable standards for an on -sale alcoholic beverage control license will mitigate any potential negative or adverse impacts created by the use. In addition, the use will primarily occur within the premises and is incidental to an established bona fide eating establishment. 3. Will the proposed use adversely affect the present economic stability or future economic development of properties surrounding the area? The proposed use will not adversely affect the economic stability of the area, but will instead allow the restaurants to compete with other restaurants in the area that also offer full alcoholic beverages for sale to their guests and other visitors. Additionally, the ABC license will allow the restaurant to be economically viable and contribute to the success of the entire area. 4. Will the proposed use comply with the regulations and conditions specified in Chapter 41 for such use? The proposed project will be in compliance with all applicable regulations imposed on a restaurant selling alcohol pursuant to Chapter 41 of the Santa Ana Municipal Code (Exhibit 6). The facilities have the kitchen facilities necessary to be considered bona fide restaurant uses and are eligible to obtain a restaurant related alcoholic beverage control license. Additionally, the restaurants will utilize less than five percent of the gross floor area for the storage of alcoholic beverages, which is below the maximum threshold established by the Municipal Code. 5. Will the proposed use adversely affect the General Plan or any specific plan of the City? The proposed use will not adversely affect the General Plan. Policy 1.8 of the Land Use Element encourages a balance of Resolution No. 2014 -31 31 B-22 Page 2 of 9 land uses to address basic community needs through encouraging commercial services. Policy 2.2 of the Land Use Element encourages land uses that accommodate the City's needs for various goods and services, and this facility proposes a variety of retail and food establishments. Policy 2.9 of the Land Use Element supports developments that create a business environment that is safe and attractive, and the Fourth Street Market proposes to offer a family friendly environment. Operation standards for the proposed Type 47 ABC license are intended to maintain a safe and attractive environment in Santa Ana. Policy 5.5 of the Land Use Element encourages development that is compatible with and supporting of surrounding land uses. The proposed Fourth Street Market will be located in a commercial corridor and is compatible with surrounding land uses. Restaurants with an ancillary alcohol license provide a dining service to the residents of Santa Ana. E. The Planning Commission determines that the following findings, which must be established in order to grant this Conditional Use Permit pursuant to Santa Ana Municipal Code Section 41 -638, have been established for Conditional Use Permit No. 2013 -33 to allow for after hours operation: Will the proposed use provide a service or facility which will contribute to the general well being of the neighborhood or the community? The proposed after -hours operation will provide an ancillary service to the restaurant customers by allowing them the ability to offer meals after 12:00 midnight, thereby providing an additional dining option within the downtown area. This will benefit the community by providing a restaurant with an additional and complementary food - related amenity. The after -hours operation is consistent with that of other restaurants in the downtown and offers customers another late night dining and food related retail alternative. Conditions have been placed on the after -hours permit that will mitigate any potential impacts created by the use and ensure that the use will not negatively affect the surrounding community. 2. Will the proposed use under the circumstances of the particular case be detrimental to the health, safety, or general welfare of persons residing or working in the vicinity? The proposed after -hours operation is consistent with other restaurants operating in the downtown, and provides Resolution No. 2014 -31 31 B -23 Page 3 of 9 additional food choices for local residents and visitors. The after -hours operation will not be detrimental to persons residing or working in the vicinity because conditions have been placed on the permit that will mitigate any potential negative or adverse impacts created by the use. In addition, the after -hours dining will occur within the premises and will not create adverse impacts. 3. Will the proposed use adversely affect the present economic stability or future economic development of properties surrounding the area? The proposed use will not adversely affect the economic stability of the area, but will instead allow the restaurant to compete with other nearby restaurants that also offer after - hours meals to their patrons. Moreover, the late night hours allows the restaurants and food related retail to remain economically viable and contributes to the overall success of the City, helping decrease the number of vacant tenant spaces that may affect the economic viability of the site. The after -hours operation will contribute to the success of Santa Ana by widening the time frame that food service and food related retail is available thereby encouraging customers to visit and stay longer in the area. 4. Will the proposed use comply with the regulations and conditions specified in Chapter 41 for such use? As conditioned, the proposed project will be in compliance with all applicable regulations and conditions imposed on restaurants open after 12:00 midnight pursuant to Chapter 41 of the Santa Ana Municipal Code. 5. Will the proposed use adversely affect the General Plan or any specific plan of the City? The proposed use will not adversely affect the General Plan. Policy 2.2 of the Land Use Element encourages land uses that accommodate the City's needs for goods and services. A restaurant that is open past midnight contributes to the economic success of the city as a shopping and dining destination. Policy 2.9 of the Land Use Element supports developments that create a business environment that is safe and attractive. Policy 5.5 of the Land Use Element encourages development that is compatible with and supporting of surrounding land uses. The proposed Fourth Street Market will be located in a commercial corridor and is compatible with surrounding land uses. Restaurants with an ancillary alcohol license provide a dining service to the residents of Santa Ana. Resolution No. 2014 -31 31 B -24 Page 4 of 9 F. The Planning Commission determines that the following findings, which must be established in order to grant this Conditional Use Permit pursuant to Santa Ana Municipal Code Section 41 -638, have been established for Conditional Use Permit No. 2013 -23 to allow a banquet use: Will the proposed use provide a service or facility which will contribute to the general well being of the neighborhood or the community? The proposed banquet facility will provide an ancillary service to the restaurants and their customers by providing a viable space to host special functions. This will benefit the community by providing the Fourth Street Market with an additional and complementary food - related amenity within the City. Conditions have been placed on the CUP that will mitigate any potential impacts created by the use and ensure that the use will not negatively affect the surrounding community. 2. Will the proposed use under the circumstances of the particular case be detrimental to the health, safety, or general welfare of persons residing or working in the vicinity? The proposed banquet facility at this location will not be detrimental to persons residing or working in the vicinity because conditions have been placed on the permit that will mitigate any potential negative or adverse impacts created by the use. In addition, a banquet facility at this location will provide an ancillary service to the community, and will occur within the premises and is incidental to the primary restaurant use. 3. Will the proposed use adversely affect the present economic stability or future economic development of properties surrounding the area? The proposed use will not adversely affect the economic stability of the area, but will instead allow the restaurants to compete with other nearby restaurants that also offer banquet facility for special events and private parties. Moreover, the banquet use will allow the restaurants to remain economically viable and contribute to the overall success of the downtown area in which it is located, helping to decrease the number of vacant tenant spaces that may affect the economic viability of the site. 4. Will the proposed use comply with the regulations and conditions specified in Chapter 41 for such use? Resolution No. 2014 -31 31 B -25 Page 5 of 9 As conditioned, the proposed project will be in compliance with all applicable regulations and conditions imposed on a banquet hall. 5. Will the proposed use adversely affect the General Plan or any specific plan of the City? The proposed use will not adversely affect the General Plan. Policy 2.2 of the Land Use Element encourages land uses that accommodate the City's varied needs for goods and services. Restaurants that offer the potential for private parties and banquets provide an essential service for local patrons and regional visitors including the business community. Policy 2.9 of the Land Use Element supports developments that create a business environment that is safe and attractive. Policy 5.5 of the Land Use Element encourages development that is compatible with and supporting of surrounding land uses. The proposed Fourth Street Market will be located in a commercial corridor and is compatible with surrounding land uses. Restaurants with an ancillary alcohol license provide a dining service to the residents of Santa Ana. G. In accordance with the California Environmental Quality Act the recommended action is exempt from further review per Section 15301. The Class 1 exemption allows the licensing of existing private structures and facilities when there is no expansion of the existing use, but allows the operation, repair, maintenance, permitting, or leasing of existing structures. Categorical Exemption Environmental Review No. 2013 -64 will be filed for this project. Section 2. The Planning Commission of the City of Santa Ana after conducting the public hearing hereby approves Conditional Use Permit No. 2013 -32, Conditional Use Permit No. 2013 -33 as conditioned in Exhibit A attached hereto and incorporated as though fully set forth herein, and Conditional Use Permit No. 2013 -34 as conditioned in Exhibit B attached hereto and incorporated as though fully set forth herein. These decisions are based upon the evidence submitted at the abovesaid hearing, which includes, but is not limited to: the Request for Planning Commission Action dated August 25, 2014, and exhibits attached thereto; and the public testimony, all of which are incorporated herein by this reference. Resolution No. 2014 -31 31 B -26 Page 6 of 9 ADOPTED this 25th day of August 2014 by the following vote: AYES: Commissioners: Alderete, Bacerra, Bauer, Gartner, Mill, Nalle, Yrarrazaval (7) NOES: Commissioners: None (0) ABSENT: Commissioners: None (0) ABSTENTIONS: Commissioners: None (0) Eric Alderete Chairman APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Ryan O. Hodge Assistant City Attorney CERTIFICATE OF ATTESTATION AND ORIGINALITY I, KAREN GERARDO, Planning Commission Secretary, do hereby attest to and certify the attached Resolution No. 2014 -31 to be the original resolution adopted by the Planning Commission of the City of Santa Ana on August 25, 2014. Date: Planning Commission Secretary City of Santa Ana Resolution No. 2014 -31 31 B-27 Page 7 of 9 EXHIBIT A Conditions for Approval of Conditional Use Permit No. 2013 -33 (After -Hours Operation) Conditional Use Permit No. 2013 -33 is approved subject to compliance, to the reasonable satisfaction of the Planning Manager, with all applicable sections of the Santa Ana Municipal Code, the California Administrative Code, the California Building Standards Code and all other applicable regulations. The applicant must remain in compliance with all conditions listed below throughout the life of the conditional use permit. Failure to comply with each and every condition may result in the revocation of the conditional use permit. The premises shall at all times be maintained as a bona -fide eating establishment as defined in Section 23038 of the California Business and Professions code and shall provide a menu containing an assortment of foods normally offered. The premises must have suitable kitchen facilities and supply an assortment of foods commonly ordered at various hours of the day. Full and complete meals must be served whenever the privileges of the on -sale license are being exercised. 2. Live Entertainment, including but not limited to, amplified music, karaoke, performers and dancing, is subject to compliance with Santa Ana Municipal Code ( "SAMC ") Chapter 11 and shall comply with all of the standards contained therein. Notwithstanding this requirement, music /noise shall not be audible beyond 20 feet from the exterior of the premises in any direction. 3. The applicant(s) shall be responsible for maintaining free of litter the area adjacent to the premises under the control of the licensee. 4. There shall be no amplified sound used outside the building. 5. Trash program and submittal of a notarized and recorded Reciprocal Trash Agreement shall be provided prior to issuance of a Certificate of Occupancy. 6. Sign permits (both permanent and temporary) are under separate submittal. 7. Special events are subject to a Land Use Certificate where such activities will take place outside of the restaurant building. Resolution No. 2014 -31 31 B -28 Page 8 of 9 Conditions for Approval of Conditional Use Permit No. 2013 -34 (Banquet Use) Conditional Use Permit No. 2013 -34 is approved subject to compliance, to the reasonable satisfaction of the Planning Manager, with all applicable sections of the Santa Ana Municipal Code, the California Administrative Code, the California Building Standards Code and all other applicable regulations. The applicant must remain in compliance with all conditions listed below throughout the life of the conditional use permit. Failure to comply with each and every condition may result in the revocation of the conditional use permit. The premises shall at all times be maintained as a bona -fide eating establishment as defined in Section 23038 of the California Business and Professions code and shall provide a menu containing an assortment of foods normally offered. The premises must have suitable kitchen facilities and supply an assortment of foods commonly ordered at various hours of the day. Full and complete meals must be served whenever the privileges of the on -sale license are being exercised. 2. Live Entertainment, including but not limited to, amplified music, karaoke, performers and dancing, is subject to compliance with Santa Ana Municipal Code ( "SAMC ") Chapter 11 and shall comply with all of the standards contained therein. Notwithstanding this requirement, music /noise shall not be audible beyond 20 feet from the exterior of the premises in any direction. 3. The applicant(s) shall be responsible for maintaining free of litter the area adjacent to the premises under the control of the licensee. 4. There shall be no amplified sound used outside the building. 5. Trash program and submittal of a notarized and recorded Reciprocal Trash Agreement shall be provided prior to issuance of a Certificate of Occupancy. 6. Sign permits (both permanent and temporary) are under separate submittal. 7. Special events are subject to a Land Use Certificate where such activities will take place outside of the restaurant building. Resolution No. 2014 -31 31 B -29 Page 9 of 9 31 B -30 12