RES-11428 ABC LICENSE FOR DISTRICT LOUNGE OUTDOOR AREA AT 223 W CHAPMAN AVERESOLUTION NO. 11428
A RESOLUTION OF THE CITY COUNCIL 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 WEST CHAPMAN AVENUE
APPLICANT: ORANGE CIRCLE LOUNGE,INC.; MARIO MAROVIC
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
WHEREAS, on October 17, 2022 the Planning Commission approved a resolution
approving Conditional Use Permit No. 3186-22, with conditions; and
WHERAS, Appeal No. 0558-22 was filed appealing the Planning Commission approval
of Conditional Use Permit No. 3186-22 to the City Council; and
WHEREAS, on November 15, 2022, the City Council denied Appeal No. 0558-22, and
affirmed Planning Commission approval of Conditional Use Permit No. 3186-22 with
modifications to conditions of approval numbers 1, 21 and 29, and removal of condition number
18 included in Planning Commission Resolution No. 26-22.
NOW, THEREFORE, BE IT RESOLVED that the City Council 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 1 —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.
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
Resolution No. 11428 2
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, ifgranted, 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—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
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 3—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. To the extent
there are any conflicts between the conditions of approval as approved by Conditional Use
Permit No. 2760-09, and the conditions of approval in this Conditional Use Permit No.
3186-22,the conditions of approval in Conditional Use Permit No. 3186-22 shall prevail.
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.
Resolution No. 11428 3
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
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 8:00am-1:00am.
17. The allowed occupancy of the business shall not increase as a result of the allowed alcohol
consumption in the outdoor area.
18. 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.
19. Alcoholic beverages shall be sold and served in containers,which are distinguishable from
other non-alcoholic beverages sold at the premises.
Resolution No. 11428 4
20. 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.
21. 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.
22. There shall be no promotions encouraging intoxication or drinking contests.
23. There shall be no requirement to purchase a minimum number of drinks.
24. No alcoholic beverages shall be sold from any temporary locations on the premises such
as ice tubs, barrels, or any other such containers.
25. 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.
26. No wine shall be sold with an alcoholic content greater than 15%by volume.
27. No sale of alcoholic beverage shall be made from a drive-up window.
28. The patio shall be enclosed, and any gates located on the patio shall be restricted to
emergency exit use Thursday—Saturday after 10:00 p.m. or during special events. Sign(s)
shall be posted on all patio gate(s) indicating "Emergency Exit Only on Thursday to
Saturday after 10:00 p.m." Nothing herein shall prohibit staff from allowing or otherwise
assisting any customer with a disability to use the patio gate to enter or exit the premises
at any time to comply with ADA requirements.
29. 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.
30. Whenever alcohol is present, an employee shall be stationed on the patio Thursday
through Saturday from 8:00pm through closure of the patio, at any peak times, or special
events.
31. 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.
32. 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.
33. 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.
Resolution No. 11428 5
34. 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.
35. There shall be no more than five pool/billiard tables maintained upon the premises at any
time.
36. 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.
37. 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.
38. 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.
39. 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.
40. The petitioner(s) shall be responsible for maintaining free of litter the area adjacent to the
premises over which he/she has control.
41. 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.
42. 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.
43. 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.
44. 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.
45. 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
Resolution No. 11428 6
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.
46. 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.
47. Graffiti shall be removed from the exterior walls and windows of the premises within 72
hours of discovery.
ADOPTED this 15th day of November 2022.
44 et 44 R"
Mark . Murphy, Mayor, Ci' o • ge
ATTEST:
C
Pamela Coleman, City Clerk,City of Orange
Attachment: Exhibit A
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
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 an adjourned regular meeting thereof held on the 15th day of November 2022, by the
following vote:
AYES: COUNCILMEMBERS: Nichols, Monaco, Dumitru, Tavoularis, and Murphy
NOES: COUNCILMEMBERS: Gutierrez
ABSENT: COUNCILMEMBERS: None
ABSTAIN: COUNCILMEMBERS: Barrios
Pamela Coleman, City Clerk, City of Orange
Resolution No. 11428 7
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 2,
PAGE 630 OF MISCELLEANOUS RECORDS OF LOS ANGELES COUNTY,
CALIFORNIA
APA No. 039-173-11