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2022 PC 26-22 ORANGE CIRCLE LOUNGE INC MARIO MAROVICCONDITIONAL USE PERMIT NO.3186-22 RESOLUTION NO. PC 26-22 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ORANGE APPROVING CONDITIONAL USE PERMIT NO.3186-22 FOR A MODIFICATION TO A STATE OF CALIFORNIA DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL, TYPE 48 LICENSE (ON -SALE GENERAL - PUBLIC PREMISES) TO ALLOW FOR THE CONSUMPTION OF ALCOHOLIC BEVERAGES IN AN OUTDOOR AREA AT THE REAR OF THE DISTRICT LOUNGE LOCATED AT 223 W CHAPMAN AVENUE APPLICANT: ORANGE CIRCLE LOUNGE, INC.; MARIO MAROVIC Moved on September 19, 2022, by Commissioner Trapesonian and seconded by Commissioner Simpson to approve the request and that staff return with a resolution to approve the request with required conditional use permit findings and public convenience or necessity finding: Moved on October 17, 2022, by Commissioner Glasgow and seconded by Commissioner Vazquez that the following resolution with modified conditions of approval be adopted: WHEREAS, the Planning Commission has authority per Orange Municipal Code (OMC) Table 17.08.020, and Sections 17.10.030.0 and 17.30.030 to take action on Conditional Use Permit No. 3186-22 for a modification to an existing Alcoholic Beverage Control (ABC) Type 48 License (On -Sale — Public Premises), to allow for the consumption of alcoholic beverages in an outdoor area located at the rear of an existing establishment; and WHEREAS, Conditional Use Permit No. 3186-22 was filed by the applicant in accordance with the provisions of the OMC; and WHEREAS, Conditional Use Permit No. 3186-22 was processed in the time and manner prescribed by state and local law; and WHEREAS, Conditional Use Permit No. 3186-22 is Categorically Exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15301 (Class 1 — Existing Facilities); and WHEREAS, the Planning Commission conducted a duly advertised public hearing on September 19, 2022, at which time interested persons had an opportunity to testify either in support of or opposition to Conditional Use Permit No. 3186-22 upon property described in Exhibit A, attached hereto and incorporated herein; and Resolution PC No. 26-22 Page 2 of 8 WHEREAS, the Planning Commission on October 17, 2022, approved the resolution with modification to conditions of approval numbers 29, 30, and 31 incorporated into this resolution. NOW, THEREFORE, BE IT RESOLVED that the Planning Commission approves Conditional Use Permit No. 3186-22 for a modification to an existing Alcoholic Beverage Control (ABC) Type 48 License (On -Sale — Public Premises), to allow for the consumption of alcoholic beverages in an outdoor area located at the rear of an existing establishment, based on the following findings: SECTION I — FINDINGS General Plan Finding: 1. The project must be consistent with the goals and policies stated within the City's General Plan. The project is consistent with the goals and policies stated in the City's General Plan Land Use and Economic Development Elements in that service of alcoholic beverages for on -site consumption in the historic downtown commercial district promotes an active and vibrant business environment, supports a revenue -generating business, and encourages the creation of a sustainable commercial district. Permitting the establishment to allow the consumption of alcoholic beverages in an outdoor area allows the establishment to be competitive with other similar establishments in the vicinity that are already permitted to sell alcoholic beverages outdoors, thereby maintaining competitive economic activity and economic viability in the Old Towne Plaza area. Conditional Use Permit Findings: 1. A Conditional Use Permit shall be granted upon sound principles of land use and in response to services required by the community. The granting of this Conditional Use Permit is based upon sound principles of land use ,and in response to services required by the community. Consideration has been given as to whether the proposed use will detrimentally affect adjacent land uses. The patio use will occur on a site that has been zoned for commercial uses that serves City residents as well as visitors and been the location of a bar for decades. The use provides an opportunity to those members of the community desiring to purchase alcoholic beverages to consume their drinks in an open-air environment. Strong consideration was given to the manner in which the business will operate under the provisions of this Conditional Use Permit. With implementation of conditions of approval, the patio use should not create a nuisance to the community or a burden on police services. Hours of activity, staff monitoring and limitations on TV's and outdoor music are intended to address potential nuisances. Consideration was given to the over -concentration of on -sale and off -sale licenses and crime rate in the Reporting District, and conditions have been placed on the project to compensate for potential detrimental effects that could be caused by alcohol consumption. As conditioned, alcohol service should not increase or contribute to the crime rate in the Reporting District. Resolution PC No. 26-22 Page 3 of S 2. A Conditional Use Permit shall not be granted if it will cause deterioration of bordering land uses or create special problems for the area in which it is located. The request to allow for the consumption of alcoholic beverages in an outdoor area is not anticipated to have adverse impacts on surrounding land uses or create a special problem, because the site is located in the Old Towne Mixed Use (OTMU-15) zone, which is intended to function as a mixed use residential and commercial area. While there are sensitive land uses within 600 feet of the site, these properties do not have direct access to the subject property. 3. A Conditional Use Permit must be considered in relationship to its effect on the community or neighborhood plan for the area in which it is located. The establishment is located within the Old Towne Plaza commercial area and the Santa Fe Specific Plan area. The area around the site is the historic downtown core of the city, where shopping and dining establishments are expected to be concentrated. The use is not anticipated to have an adverse impact on neighboring land uses and the community, because conditions that establish parameters for responsible operating practices are being applied to address potential land use incompatibility associated with consumption of alcohol in the outdoor area. 4. A Conditional Use Permit, if granted, shall be made subject to those conditions necessary to preserve the general welfare, not the individual welfare of any particular applicant. The conditions for the Conditional Use Permit are put forth with the purpose of preserving the general welfare of the city and community. The Police Department conditions include a review of the operation and police records for excessive calls one year after the beginning of the sale of alcoholic beverages. If the Police Department finds that the restaurant is not operating as required, or if there is a history of criminal or nuisance behavior, the Police Department will recommend that the Planning Commission reconsider this application. SECTION 2 — FINDING OF CONVENIENCE OR NECESSITY The ABC establishes an over -concentration of alcohol licenses based on the average number of alcohol licenses for the population in a given census tract. However, the ABC and the City recognize that licenses should be reviewed on a case -by -case basis to ensure that such sales will not adversely affect surrounding residents, businesses, and institutions and to ensure that any such use operates in a manner compatible with existing and future adjacent uses. This site is located within a major commercial corridor in the City, which is expected to have an over -concentration of alcohol licenses. The Planning Commission finds that the sale of alcoholic beverages for on - site consumption within the proposed establishment is an appropriate use and is a service typically expected by the public. As such, the finding for public convenience or necessity can be made for this use. SECTION 3 — ENVIRONMENTAL REVIEW The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15301 (Class 1 — Existing Facilities) because the request consists of the modification of an existing license for the sale of alcoholic beverages in an outdoor area located at the rear of the establishment and results in no physical Resolution PC No. 26-22 Page 4 of 8 expansion of the use beyond that existing at the time of the City's determination. No public review ` is required for a categorical exemption. SECTION 4— CONDITIONS OF APPROVAL BE IT FURTHER RESOLVED that the following conditions are imposed with approval: 1. That all existing conditions of approval as approved by Conditional Use Permit No. 2760- 09, Planning Commission Resolution No. PC 30-10 shall remain in effect. 2. The proposed use shall conform in substance and be maintained in general conformance with the floor plan submitted (dated October 3, 2022), and as approved by the Planning Commission. 3. Any future change in the nature and operation of the use approved by Conditional Use Permit No. 3186-22 shall require an application for a new or amended Conditional Use Permit. 4. The permittee agrees to indemnify, hold harmless, and defend the City, its officers, agents and employees from any and all liability or claims that may be brought against the City arising out of its approval of this permit, save and except that caused by the City's active negligence. 5. The applicant shall comply with all federal, state, municipal laws and/or ordinances. Any violations of these laws in connection with this use may be a cause for revocation of this permit. 6. These conditions shall be reprinted on the first page of the construction documents, if submitting to the Building Department for the plan check process. 7. The project shall comply with the requirements of OMC Chapter 15.52 (Building Security Standards), which relates to hardware, doors, windows, lighting, etc. Approved structural drawings, if any, shall include sections of the security code that apply. Specifications, details, or security notes may be used to convey the compliance. 8. If not utilized, this project approval expires two years from the approval date. An extension of time may be permitted upon a written request, if received before the expiration deadline. 9. In conjunction with the ongoing operation of the business, the premises shall comply with all requirements placed upon it by the State Alcoholic Beverage Control Board. 10. This Conditional Use Permit shall be reviewed one year from the date of approval and may be reviewed each year thereafter. The review shall be conducted jointly by the Community Development Director and Police Chief or designees. The purpose of this review shall be to identify uniquely adverse issues such as curfew, loitering, vandalism, criminal activity, noise, or nuisance resulting from approval of the Conditional Use Permit. If such issues are identified, the Conditional Use Permit shall be presented to the Planning Commission for its consideration of conditions, modifications, or revocation. 11. The activity level of the business shall be monitored by the Police Department to establish the level of police services used for the business. Should the level of police services demonstrate that the permittee has not controlled excessive or unnecessary activity Resolution PC No. 26-22 Page 5 of 8 resulting in high use of police services then this Conditional Use Permit shall be reviewed for consideration of further conditions, modifications, or revocation. 12. No person in the establishment shall appear in such a manner that the genitals, pubic hair, pubic hair region, buttocks, anus, natal cleft, anal region, nipple, or areola is exposed to public view or is not covered by an opaque covering. 13. The sale of alcoholic beverages for consumption off the premises shall be prohibited. 14. No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the license. 15. All alcohol shall be consumed on the subject site, within the licensed areas. Signs shall be posted on all exits of the premises, which prohibit alcoholic beverages from leaving the confines of the premises. 16. The outdoor area of the business will operate: Sunday -Saturday 8:OOam-1:OOam. 17. The allowed occupancy of the business shall not increase as a result of the allowed alcohol consumption in the outdoor area. 18. At no time shall a fee be charged for entrance/admittance inside the premises. However, the District Lounge may charge a door fee during the Orange International Street Fair. 19. Employees and/or contract security personnel shall not consume any alcoholic beverages prior to or during their work shift. Any and all security officers provided shall comply with all state and local ordinances regulating their services, including, without limitation, Chapter 11.5 of Division 3 of the California Business and Profession Code. 20. Alcoholic beverages shall be sold and served in containers, which are distinguishable from other non-alcoholic beverages sold at the premises. 21. There shall be no "Happy Hours" allowed on the premises. There shall be no advertising of alcoholic beverages or drink specials on the exterior of the business at any time. There shall be no generic drink specials, such as: "half off drinks, two for one drinks, buy one get one free, etc." No alcoholic beverages will be discounted more than 30% off its regular price. The District Lounge will be allowed to advertise on the interior of the business "Featured Drink" specials. This would include wine specials on certain nights, featured cocktails, and featured beers. 22. There shall be no time when alcoholic beverages are sold at a ratio of two for one; no "stacking" of beverages, which means the serving of two alcoholic beverages at one time to the same customer; and no sales to an "empty chair", which means that each customer must be physically present at the time of the order of any alcoholic beverage. 23. There shall be no promotions encouraging intoxication or drinking contests. 24. There shall be no requirement to purchase a minimum number of drinks. 25. No alcoholic beverages shall be sold from any temporary locations on the premises such as ice tubs, barrels, or any other such containers. 26. The petitioner shall not employ or permit any persons to solicit or encourage others, directly or indirectly, to buy them drinks in the licensed premises under any commission percentage salary or other profit. Resolution PC No. 26-22 Page 6 of 8 27. No wine shall be sold with an alcoholic content greater than 15% by volume. 28. No sale of alcoholic beverage shall be made from a drive -up window. 29. The patio shall be enclosed and any gates located on the patio shall remain closed during business hours and used as an emergency exit only, with the exception of American Disability Act (ADA) use in conformance with state and federal regulation. Sign(s) shall be posted on all patio gate(s) indicating "Emergency Exit Only". 30. The use of any amplifying systems, outdoor sound system, and paging system or any such device is prohibited on the licensed patio area with the exception of televisions until 10:00pm every night. Sound from the televisions shall not be audible in such a manner as to disturb the peace, quiet, and comfort of neighboring occupants, or any reasonable person residing or working in the area. 31. Whenever alcohol is present, an employee shall be stationed on the patio Thursday through Saturday from 8:OOpm through closure of the patio, at any peak times, or special events. 32. No portion of the premises shall be deemed to be "private" for the purposes of dispensing alcoholic beverages to selected patrons, where the licensee recognizes any form of membership cards, keys or passes which would entitle the holder entry or preferential admittance or exclusive use of any portion of the mentioned premises. 33. The use of a promoter (such as a night-club operator) or sub -leasing premises to be used in conjunction with dancing and/or live entertainment is prohibited. 34. The doors and windows of the business shall be closed when there is live entertainment and/or music to prevent noise from being heard by nearby residents or neighbors. 35. There shall be no special promotional events held on the property, unless a written request for such is received and approved by the City of Orange Community Development Director and the Police Department's Vice Unit at least four weeks in advance of the event. 36. There shall be no more than five pool/billiard tables maintained upon the premises at any time. 37. The parking lot of the premises shall be equipped with lighting of sufficient power to illuminate and make easily discernible the appearance and conduct of all persons on or about the parking lot. 38. Lighting in the parking area of the premises shall be directed, positioned, and shielded in such a manner so as not to unreasonably illuminate the window area of nearby residences. 39. The owner shall install and maintain a closed circuit television system capable of readily identifying facial features, and stature of all patrons entering the establishment during hours of operation and monitoring the rear of the premises. The camera system shall keep a minimum 30 day library of events, which shall be available for downloading and inspection by the Orange Police Department. 40. Any music or amplified sound on the premises shall not be audible in such a manner as to disturb the peace, quiet, and comfort of neighboring occupants, or any reasonable person residing or working in the area. Resolution PC No. 26-22 Page 7 of 8 41. The petitioner(s) shall be responsible for maintaining free of litter the area adjacent to the premises over which he/she has control. 42. There shall be no exterior advertising of any kind or type, including advertising directed to the exterior from within, promoting or indicating the availability of alcoholic beverages. Interior displays of alcoholic beverages, which are clearly visible to the exterior shall constitute a violation of this condition. 43. Exterior doors and windows, as well as the interior of the business, shall be protected by an approved alarm system, which shall detect an attempted entry or presence of people within the business during closing hours. 44. Uniformed security will be provided by the applicant on days/nights when special event broadcast(s) are being promoted. Two security guards per 100 customers shall"be present during these broadcasts/events. Security will be responsible for managing the front entrance line by keeping the public sidewalk open to pedestrian travel and patrons out of the street. . . . a 45. Provide an interior night light to illuminate the interior and maintain an unobstructed view through storefront windows to provide police patrol officers the ability to observe unlawful activity within the business. 46. The owner or manager of the licensed premises shall maintain on the premises a written security policy and procedures manual addressing at a minimum the following items: Handling obviously intoxicated persons; establishing a reasonable ratio of employees to patrons, based upon activity level, in order to monitor beverage sales and patron behavior; handling patrons involved in fighting or arguing; handling loitering about the building and in the immediate adjacent area that is owned, leased, rented or used under agreement by the Licensee(s); verifying age/checking identification of patrons; warning patrons of reaching their drinking limit/potential intoxication and refusing to serve; calling the police regarding observed or reported criminal activity. 47. All employees of petitioner who sell or serve alcoholic beverage products shall be required to complete a training program in alcoholic beverage compliance, crime prevention techniques and the handling of violence. For new employees of petitioner, such training program must be completed within 60 days of the date of hire. The employees must provide the City of Orange Police Department, Investigative Services Division a copy of the completed Alcohol Management Program (AMP) certificate. 48. Graffiti shall be removed from the exterior walls and windows of the premises within 72 hours of discovery. I hereby certify that the application for modification to the existing Conditional Use Permit was approved on September 19, 2022, by the Planning Commission of the City of Orange by the following vote: AYES: Vazquez, Simpson, Trapesonian NOES: Glasgow, Martinez ABSTAIN: None ABSENT: None Resolution PC No. 26-22 Page 8 of 8 I hereby certify that the foregoing Resolution was adopted on October 17, 2022, by the Planning Commission of the City of Orange by the following vote: AYES: Vazquez, Glasgow, Trapesonian NOES: None ABSTAIN: None ABSENT: Simpson, Martinez David Akazquez, anning Commission Chair 11- 7- 7s2-2- Date EXHIBIT A LEGAL DESCRIPTION Parcel 1: THE EAST 40 FEET OF LOT 19, BLOCK D OF TOWN OF ORANGE, AS PER MAP RECORDED IN BOOK 2, PAGE 630 OF MISCELLEANOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA Parcel 2: LOT 18, BLOCK D OF TOWN OF ORANGE, AS PER MAP RECORDED IN BOOK 29 PAGE 630 OF MISCELLEANOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA APA No. 039-173-11