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HomeMy WebLinkAboutRES-11603 DENYING APPEAL NO. 25-0009 AND AFFIRMING APPROVAL CONDITIONAL USE PERMIT NO. 3225 FOR CDO ORANGE, LLC DBA CULINARY DROPOUT AT 191 N. ORANGE STREETRESOLUTION NO. 11603 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE DENYING APPEAL NO. 25-0009 AND AFFIRMING THE APPROVAL CONDITIONAL USE PERMIT NO. 3225, A REQUEST BY CDO ORANGE, LLC, DBA CULINARY DROPOUT FOR A TYPE 47 ABC LICENSE (ON-SALE GENERAL) AT A PROPOSED RESTAURANT LOCATED AT 191 N. ORANGE STREET. APPLICANT: CDO ORANGE,LLC (LEEZIE IIM) WHEREAS,CDO Orange,LLC,submitted an application for Conditional Use Permit No. 3225, a request by CDO Orange, LLC, dba Culinary Dropout for a Type 47 ABC License (On- Sale General) at a proposed restaurant located at 191 N. Orange Street; and WHEREAS,Conditional Use Permit No. 3225 was processed in the manner prescribed by state and local law; and WHEREAS, on February 20, 2025, the Planning Commission reviewed and approved Conditional Use Permit No. 3225 subject to conditions and findings; and WHEREAS, on March 3, 2025, Appeal No. 25-0009 was filed by CDO Orange, LLC, appealing the Planning Commission's approval; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Orange hereby approves Conditional Use Permit No. 3225 allowing the sale of alcoholic beverages for on- site consumption in conjunction with a State of California Department of Alcoholic Beverage Control(ABC)Type 47 License(On-Sale General-Eating Place)at a proposed restaurant,located at 191 N. Orange Street,based on the following findings: SECTION 1 —FINDINGS 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. Consideration has been given as to whether the proposed use will detrimentally affect adjacent land uses. The proposed use provides an opportunity to those customers desiring to purchase alcohol with food at a restaurant. It will occur on a site that has been zoned for a mix of uses, and the subject property is adjacent to similar uses in the Old Towne downtown core, a commercial destination that serves City residents as well as visitors. The sale of alcohol is an accessory to the proposed restaurant and will occur only when a complete restaurant menu is available. This is a service typically expected by the public in association with a restaurant. Strong consideration was given to the manner in which the business will operate under the provisions of this Conditional Use Permit. As conditioned, its operation should not create a nuisance to the community or a burden on police services.Consideration was given to the over- concentration of on-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 contribute to the crime rate in the Reporting District. Furthermore,the interface of the outdoor patio,with proposed amplified sound, and the single- family homes on the north side of E. Maple Avenue has been considered. Conditions of approval have been placed upon this Conditional Use Permit to mitigate any potential noise pollution in association with the proposed restaurant operations. 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 serve alcohol with food at the proposed restaurant is not anticipated to have adverse impacts on surrounding land uses or create a special problem, as conditioned. The site is located in the Old Towne downtown core, which is intended to function as a commercial and mixed-use center. Conditions of approval include limiting the hours of the outdoor dining area, prohibiting amplified music on the outdoor patio, prohibiting live entertainment, and other specific project features compensate for potential detrimental effects on immediately adjacent single-family residences that could be caused by the project. 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 location is in an interface area between single-family neighborhoods and the Old Towne downtown core, where shopping and dining establishments are expected to be concentrated. The City's General Plan for Old Towne encourage the development of mixed use,pedestrian- oriented projects. The proposed accessory alcohol service at a restaurant will support the success of the restaurant and the continuation of a vibrant mixed-use district. The use is not anticipated to have an adverse impact on sensitive land uses in the immediate area because granting an additional on-sale license with appropriate conditions of approval,would mitigate potential impacts related to alcohol service and consumption, and noise pollution. 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 of approval for this Conditional Use Permit are included with the purpose of preserving the general welfare of the community.The conditions of approval include a review of the proposed restaurant operation one year after the beginning of the sale of alcoholic beverages. If the restaurant is not operating as required, or if there is a history of criminal or nuisance behavior, this Conditional Use Permit may be revoked by the Planning Commission. Other conditions have been placed on the project to reduce crime-inducing activities by always requiring food service availability with alcohol service,addressing graffiti and litter removal, and requiring employee training. 2 SECTION 2—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 project consists of licensing the sale of alcoholic beverages at a proposed restaurant in an existing building that results in negligible or no expansion of use beyond that existing at the time of the City's determination. SECTION 3—APPROVAL AND CONDITIONS OF APPROVAL The City Council hereby approves Conditional Use Permit No. 3225, with the following conditions: General Conditions: 1. Any future change in the nature and operation of the use approved by Conditional Use Permit(CUP)No. 3225 shall require an application for a new or amended CUP. 2. The applicant agrees,as a condition of City's approval of CUP No. 3225,to indemnify, defend, and hold harmless, at applicant's expense, the City, its officers, agents, and employees(City)from and against any claim, action,or proceeding brought against the City, including,but not limited to, any claim, action or proceeding commenced within the time period provided in Government Code Section 66499.37 to attack,review, set aside, void or annul the City's approval, to challenge the determination made by the City under the California Environmental Quality Act (CEQA) or to challenge the reasonableness, legality or validity of any condition attached hereto. City shall promptly notify applicant of any such claim, action or proceeding to which the City receives notice and to cooperate fully with the applicant in the defense thereof. Applicant shall reimburse the City for any and all costs and expenses, including, but not limited to, court costs and attorney's fees that the City may be required to pay, including any expenses ordered by a court or expenses incurred through the Office of the City Attorney in connection with said claim, action or proceeding. City may, in its sole discretion, participate in the defense of any claim, action or proceeding but such participation shall not relieve applicant of the obligations of this condition. In the event the applicant is required to defend City in connection with such claim, action or proceeding, City shall have the right to approve counsel to so defend the City, approve all significant decisions concerning the manner in which the defense is conducted and approve any all settlements,which approval(s)shall not be unreasonably withheld.The obligations set forth herein remain in full force and effect throughout all stages of litigation including any and all appeals of any lower court judgment rendered in the proceeding. Further, applicant agrees to indemnify, defend and hold harmless the City for all costs and expenses incurred in enforcing this provision. 3. The applicant shall comply with all federal, state, and local municipal laws, including local City ordinances and regulations. Any violations of these laws in conjunction with this use may be a cause for revocation of this permit. 3 4. Prior to the operation of the business,the applicant shall file for,or if applicable,amend a business license with the Business License Division. Failure to obtain the required business license may be cause for revocation of this approval. Operational Conditions: 5. In conjunction with the ongoing operation of the business, the licensed premises shall comply with all requirements placed upon it by the State Alcoholic Beverage Control ABC) Board. 6. This CUP shall be reviewed at three months, six months,and one year from the date of the opening of the restaurant 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 CUP. If such issues are identified, the CUP shall be presented to the Planning Commission for its consideration of conditions,modifications,or revocation. 7. The quarterly gross sales of alcoholic beverages shall not exceed the gross sales of merchant items that include food (including non-alcoholic beverages) within the restaurant during the same period. The licensee shall at all times maintain records which reflect separately the gross sales of food and the gross sales of alcoholic beverages of the licensed business. Said records shall be kept no less frequently than on a quarterly basis and shall be made available upon request. 8. The use of the business is considered a restaurant. Interior construction shall remain consistent with the plans submitted for review by the Planning Commission. No new interior construction resulting in a change to the floor plan will occur unless a revised floor plan is approved by the Community Development Department.None of the floor area will be designated for dancing or live entertainment unless a subsequent CUP is approved by the Planning Commission. 9. The subject ABC license shall not be exchanged for a public premise Type 48 (On- Sale General—Public Premises) license nor operated as a public premise. 10. The sale of beer and/or wine for consumption off the premises shall be prohibited. 11. All alcohol shall be consumed on the subject site,within the defined licensed premises. Signs shall be posted on all unmonitored public exits of the licensed premises e.g. the patio exits), which prohibit alcoholic beverages from leaving the confines of the premises. 12. The premises shall be maintained as a bona fide restaurant and shall provide a menu containing an assortment of foods normally offered in such restaurants. 4 13. The business shall operate Sunday through Thursday, from 7:00 a.m. to 10:00 p.m. and Fridays and Saturdays from 7:00 a.m. to 11:00 p.m. These hours do not restrict employees from being on the premises before opening for preparations and deliveries or after close for clean-up. Clean-up may not be conducted by patrons. 14. At no time shall there be a fee for entrance/admittance into the premises. 15. 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. 16. The restaurant shall provide a phone number that is a direct line to the manager of the restaurant to the neighboring properties on E. Maple Avenue. Alcohol and Food Service Conditions: 17. Food service, with an available menu, shall be made available until closing time on each day of operation. 18. Alcoholic beverages shall be served by restaurant employees permitted by law to serve alcohol. 19. Alcoholic beverages shall be sold and served in containers, which are distinguishable from other non-alcoholic beverages sold at the premise. 20. The business may offer alcoholic beverages in combination with non-alcoholic beverages and food items at a reduced price Monday to Friday from 3:00 p.m. to 6:00 p.m. 21. There shall be no promotions encouraging intoxication or drinking contests. 22. There shall be no requirement to purchase a minimum number of drinks. 23. No alcoholic beverages shall be sold from any self-service locations on the premises such as ice tubs,barrels, or any other such containers. 24. 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. Outdoor Dining Area Conditions: 25. The use of any outdoor sound system, outdoor amplifying systems, paging system or any other such device is allowed on all exterior patios but cannot be audible past the property lines. Outdoor amplified sound on the north patio shall be turned off at 10 p.m. 5 26. The operating hours for the west patio are 7 a.m. to 10 p.m. Sunday through Thursday and 7:00 a.m. to 11:00 p.m. Friday and Saturday. 27. The operating hours for the north patio are 7 a.m.to 10 p.m. daily. 28. The north patio shall have a clearly visible sign informing patrons that the north patio closes at 10 p.m. 29. Daily from 6:30 p.m. to close seating on the north patio shall be individual tables seating no more than four patrons at each table. 30. No pressure washing or mechanical cleaning methods shall occur in the outdoor dining area after 10:00 p.m. or before 6:00 a.m. on any day. 31. The outdoor dining area shall be enclosed by a fence and any gates located on the patio shall remain closed during business hours and used as an emergency exit only. Sign(s) shall be posted on all patio gates indicating"Emergency Exit Only". 32. Consistent with approved building shell entitlements (MNSP No. 1066-22, DRC No. 5056-22 and APP No. 0557-22; Resolution No. PC 05-22), the door on the north elevation connecting the restaurant interior to the outdoor dining area shall be designed and used as "exit only". This shall be verified by the Planning Division on the construction documents prior to the issuance of Building Permits for tenant improvements. 33. The hedge along the north patio shall be solid and maintained at the height of the railing. Special Events: 34. No portion of the premises shall be deemed to be "private" for the purposes of dispensing alcoholic beverages to selected patrons,where the permittee 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, provided, however, the restaurant may hold social and corporate private dining events where a corporate or social host has reserved all or a portion of the restaurant (e.g. rehearsal dinners, corporate holiday parties, etc.). 35. The use of a promoter(such as a night-club operator)or sub-leasing the premises to be used in conjunction with dancing and/or live entertainment is prohibited. 36. There shall be no live entertainment (including karaoke), disc jockey, or dancing permitted on the premises at any time. Interior amplified music of any kind, including over a built-in system designated for background music, shall be permitted so long as the music is not audible outside when the doors are open or beyond the premises in such a manner as to unreasonably disturb the peace, quiet, and comfort of neighboring occupants, given the time of day and other conditions. 6 Coin Operated Machines: 37. There shall be no pool tables or coin-operated games or machines maintained on the premises at any time. Security and Exterior: 38. 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. 39. 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. 40. The permittee 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 Orange Police Department. 41. The permittee shall be responsible for maintaining free of litter the area adjacent to the premises over which they have control. 42. There shall be no exterior advertising signage of alcohol. This includes advertising signage placed directly to the exterior from within, promoting or indicating the availability of alcoholic beverages. Interior advertising signage of alcohol that are clearly visible to the exterior shall constitute a violation of this condition. 43. The restaurant shall be protected by a monitored alarm system, which shall detect an attempted entry or presence of people within the business during closing hours. 44. The premises shall be provided with an interior night light to illuminate the interior and an unobstructed view shall be maintained through storefront windows to provide police patrol officers the ability to observe unlawful activity within the business. 45. The licensee 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 alcoholic beverage sales and patron behavior;handing patrons involved in fighting or arguing; handling loitering about the licensed premises; 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. 7 Training: 46. All employees of the permittee who sell or serve alcoholic beverage products shall be required to complete the Responsible Beverage Service (RBS) training program provided by the California State Department of Alcoholic Beverage Control (ABC). For new employees, such training program must be completed within 30 days of the date of hire. The permittee shall maintain an active list of the employees who have completed the training.The list shall be furnished,upon request,to any sworn police office or member of the Community Development Department.The employees must provide the Orange Police Department a copy of the completed RBS certificate,upon request. Miscellaneous: 47. Graffiti shall be removed from the exterior walls, doors, windows, and any additional part of the property (including signage, etc.) within 72 hours of the time the City of Orange Notice of Violation is received by the business operator. ADOPTED this 8th day of April 2025. el R. S ater, Mayor, City of Orange ATTEST: C/t9e-,e111-a Pamela Coleman, City Clerk, City of Orange APPROVED AS TO FORM: Wayne . Winthers, Interim City Attorney, City of Orange 8 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF ORANGE I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the 8th day of April, 2025 by the following vote: AYES: COUNCILMEMBERS:Bilodeau, Dumitru,Tavoularis, Gutierrez, Gyllenhammer, Slater NOES: COUNCILMEMBERS: None RECUSE: COUNCILMEMBERS: Barrie Pamela Coleman, City Clerk, City of Orange 9