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Home My WebLink AboutSR - APP-543-15 - WATSONS ALCOHOLIC BEVERAGE CONTROL LICENSE 116-120 EAST CHAPMAN AVENUE� pF 01ta . C �UIVTY CPy AGENDA ITEM December 8, 2015 TO: Honorable Mayor and Members of the City Council THRU: Rick Otto City Manager FROM: William Crouch, AICP, NCARB, LEED (AP) Community Development Director ReviewedNerified B City Manager Finance Director To Be Presented By: Marissa Moshier, Associate Planner — Historic Preservation Cons Calendar City Mgr Rpts Council Reports _ Legal Affairs Boards /Cmtes X Public Hrgs Admin Reports Plan /Environ 1. SUBJECT 77= APPEAL HEARING: Appeal No. 543 -15 - An appeal of the Planning Commission decision to approve Conditional Use Permit No. 2985 -15 for an Alcoholic Beverage Control (ABC) Type 47 license for a restaurant at 116 -120 E. Chapman Avenue. 2. SUMMARY An appeal by Mayor Teresa Smith of a decision by the Planning Commission (PC) to approve Conditional Use Permit (CUP) No. 2985 -15 for a State of California, Department of Alcoholic Beverage Control, Type 47 License (On -Sale General — Eating Place) for a restaurant with an outdoor dining area located at 116 -120 E. Chapman Avenue. 3. RECOMMENDED ACTION Motion on Appeal No. 543 -15 4. FISCAL IMPACT Potential minor sales tax gains from alcoholic beverage and restaurant sales. 5. STRATEGIC PLAN GO 1(d). Provide for a safe community; assure the development of the City occurs in a fashion that maximizes public safety. 6. GENERAL PLAN IMPLEMENTATION Public Safety Element Goal 7.0 Improve community safety and reduce opportunities for criminal activity. ITEM _UZ 12/8/2015 Policy 7.5 Maximize security of public spaces, recreation facilities, and new development by encouraging complementary uses that support a safe environment. Land Use Element Goal 5.0 Maintain and enhance the vibrant, transit - accessible, pedestrian - friendly, and livable character of Old Towne's neighborhoods and commercial core. 7. DISCUSSION and BACKGROUND Our Family Restaurant Group, LLC submitted a Land Use Project Application requesting a Conditional Use Permit (CUP) for modification of an existing ABC Type 41 License (On -Sale Beer and Wine — Eating Place) to a Type 47 License (On -Sale General — Eating Place) at a restaurant (Watson's) in the Plaza Historic District. The request also included expansion of the service area to include the adjoining tenant space (120 E. Chapman Avenue, former travel agency) and an outdoor dining area. The existing Type 41 License for the 116 E. Chapman Avenue space was approved in 2010. . The following issues were discussed in the October 5, 2015 Planning Commission staff report (Attachment 5): 1. Existing Licenses within 600 feet of the Site 2. Sensitive Receptors 3. Census Tract Alcohol and Crime Statistics Information 4. Type 47 License (Distilled Spirits) 5. Type 41 License ( Beer and Wine) Planninz Commission Action On October 5, 2015, the Planning Commission held a public hearing to consider CUP No. 2985- 15. The Planning Commission considered the entire record, including all testimony and additional information offered at the public hearing. The Commission voted 3 -1, with one Commissioner absent, to direct Planning Division staff to return to the Commission with a resolution with findings and conditions for approval of the Type 47 License, based on the Commission's discussion. On October 19, 2015, the Planning Commission voted 3 -1, with one abstention, to approve PC Resolution No. 32 -15 based on the findings and conditions included in the resolution (Attachment 2). The Planning Commission added the following two conditions to the approval resolution: 1) The hours of operation shall be Sunday - Thursday 6:00 a.m. until 12 a.m. (midnight) and Friday - Saturday 6:00 a.m. until 1:00 a.m. These hours do not restrict employees from ITEM 12/8/2015 being on the premises before opening for preparation and deliveries or after close for clean -up. Clean -up may not be conducted by patrons. 2) The restaurant shall not operate for 24 hours without closing without prior approval of a special event permit as described in Condition 36. Public Comments There were four public speakers at the October 5, 2015 hearing, all in favor of the application. There were no public speakers at the October 19, 2015 hearing. 8. APPELLANT'S STATEMENT On November 2, 2015, Mayor Teresa Smith appealed the Planning Commission decision based on the following statement provided in the appeal application (Attachment 2): The approval by Planning Commission of a Type 47 alcohol license for this location changes the character of the establishment. Additionally, there is an over - concentration of alcohol licenses in this reporting district and the upgrading of the permit from beer and wine to hard liquor further exacerbates this problem. The applicant's business model makes the addition of a Type 47 even more concerning. Applicant's desire to have the ability to be open 24 hours, for special events, causes concern for the Plaza area and the changing of its character. 9. POTENTIAL ACTIONS ON APPEAL A Conditional Use Permit for an ABC License runs with the land and authorizes both current and future operators to serve alcohol under the regulations for the specific license type set by the State Department of Alcoholic Beverage Control. Under OMC 17.08.050.F, the City Council may affirm, reverse or modify, in whole or in part, the Planning Commission action to approve the CUP for the Type 47 License that is under appeal. Deny Appeal /Affirm Planning Commission Action Should the City Council deny the appeal and affirm the Planning Commission action, the applicant would be able to obtain an ABC Type 47 License. The restaurant would operate as follows: • Service of beer, wine and distilled spirits with a full menu • Service of alcohol at 116 E. Chapman (original Watson's space), 120 E. Chapman (former travel agency), and in the outdoor dining area • Hours of operation: Sunday - Thursday 6:00 a.m. until 12 a.m. (midnight) and Friday - Saturday 6:00 a.m. until 1:00 a.m. • Potential to request a special event permit allowing operation of the restaurant for a 24 hour period, subject to approval by the Community Development Director ITEM 12/8/2015 Uphold Appeal/Reverse Planninz Commission Action Should the City Council uphold the appeal and reverse the Planning Commission action, PC Resolution 32 -15 would not take effect and the applicant would not be able to obtain a Type 47 License. However, the previously approved CUP for a Type 41 License remains in effect (Attachment 4). The restaurant could operate under the existing Type 41 License as follows: • Service of beer and wine with a full menu at 116 E. Chapman only (original Watson's space) • No alcohol service in 120 E. Chapman (former travel agency) or outdoor dining area • Hours of operation: Monday - Saturday 6:30 a.m. until 9:00 p.m. and Sunday 8:00 a.m. until 6:00 p.m. Uphold Appeal/Modify Planning Commission Action Should the City Council uphold the appeal and deny the Type 47 license, the Council may choose to adopt a resolution modifying the conditions of the existing Type 41 License. These modifications may include: • Allowing service of beer and wine in 116 E. Chapman (former travel agency) and /or the outdoor dining area • Changes to hours of operation 10. ATTACHMENTS 77�1 Attachments to Report 1. Vicinity Map 2. Appeal No. 543 -15 3. Planning Commission Resolution No. PC 32 -15 (Type 47 License, under appeal) 4. Planning Commission Resolution No. PC 28 -10 (Type 41 License) 5. Planning Commission Staff Reports dated October 5 and 19, 2015 6. Planning Commission Minutes from Meeting of October 5 and October 19, 2015 7. Plan approved by Planning Commission as Exhibit A, dated March 20, 2015 8. Map of ABC Licenses in Vicinity of the Plaza 9. Applicant's Supplemental Information ITEM 12/8/2015 CC: Mayor Teresa Smith 300 E. Chapman Avenue Orange, CA 92866 Our Family Restaurant Group, LLC Attn: William Skeffington 2200 S. Yale Avenue Santa Ana, CA 92704 Shucri Yaghi 112 E. Chapman Avenue, Suite D Orange, CA 92866 ITEM 12/8/2015