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HomeMy WebLinkAboutPA2020-356_20210505_UPDATED PLANSPlanning Permit Application ATTACHMENTS 3) Project Description and Justification: This project continues the improvement and rehabilitation efforts currently underway at the 2110 W. Oceanfront building in McFadden Square. This property is one of several properties in the area owned by Mario Marovic. Over the past several years, Mr. Marovic and his business partner Andrew Gabriel have invested millions of dollars in an effort to help revitalize the properties in McFadden Square. In addition to the vast financial investments they have made, Mr. Marovic and Mr. Gabriel have also sacrificed their personal time and resources to improve the area by founding Newport Beach’s “Bar and Tavern Association.” The Bar and Tavern Association was founded to work with city staff, residents and bar owners on areas that impact the Balboa Peninsula. This particular project removes the existing Henry’s Liquor Store and upgrades and transforms the restaurant space formerly occupied by Spaccio Italiano and replaces it with a new “gourmet casual dining” Mexican restaurant, which will focus on quality food and authentic tacos. The new restaurant will be called Super Panga. The former restaurant owner experienced financial difficulty during the recent Covid-19 global pandemic. As the owner of the building, Mr. Marovic and Mr. Gabriel were asked by the former owner to purchase his restaurant so that he would not suffer a complete financial loss. After careful and studied review, Mr. Marovic and Mr. Gabriel found the existing Italian restaurant business model to be unsustainable due to: cost of employees, low margins, and limited storage/kitchen space. The proposed components of the project are to expand the existing restaurant space (by approximately 466 sq. ft. of net public area) into the adjacent Henry’s Liquor Store and convert the existing ABC license type from an ABC Type 41 License into an ABC Type 47 License. This project maintains the small 36” by 104” outdoor dining area that was approved in 2007 by Accessory Outdoor Permit No. OD2007-002. Alcoholic beverage service is prohibited in the outdoor dining area. Although the total net public area for the restaurant would only increase a very small amount by 114 sq. ft. because the majority of the net public area that existed at Spaccio Italiano is being converted to back of house/kitchen uses. Additionally, this project would eliminate the existing Henry’s Liquor Store in its entirety and remove an ABC licensed premise from the Peninsula. Currently, the owners have limited space that is confined to the area behind the existing service counter. The expansion into the adjacent liquor store will be utilized for much needed storage space and a countertop/bar area with seating for customers who wish to dine at their establishment. Specially, the expanded area will allow for new customer dining areas. In addition, the new area will allow more space for their employees to better serve Super Panga’s customers and avoid the cramped confines the existing establishment offers. Below is a partial list of benefits that the City will gain by an approval of this project: Elimination of Henry’s Liquor Store: The owners of Super Panga are purchasing Henry’s Liquor Store, at considerable expense, and putting it out of business. This eliminates an existing eye sore and removes a liquor store and ABC license from the community. Conditional Use Permit: An approval of this project will require a Conditional Use Permit which results in additional conditions placed upon the property in a manner that satisfies the City. Gourmet Casual Dining: Currently, there is a lack of gourmet casual dining establishments in the area and we believe it will be a major benefit to the residents and visitors. Super Panga will include the following: • Serve breakfast, lunch and dinner. • Provide table service during peak hours. • Provide an expanded menu from what it currently offers to promote food sales. Existing Operators: Mr. Marovic and Mr. Gabriel have a proven track record of being good operators in the City. By approving this project, they will be able to revitalize an existing vacant space and transform it into a new asset for the community. Residential Impact (noise): Due to the location of this project, residents will not be impacted by the project. Outdoor Dining: This project maintains the small outdoor dining area that was approved in 2007 by Accessory Outdoor Permit No. OD2007-002. The area is 36” by 104”. Alcoholic beverage service is prohibited in this outdoor dining area. Support of Neighboring Business: The neighboring businesses are in favor of this project and all that Mr. Marovic and Mr. Gabriel have done to invest in McFadden Square. No Increase in Hours: The existing Director’s Use Permit limits the daily hours of operation to between 6:00 a.m. and 1:00 a.m. daily. The owners are not seeking to expand upon these hours.