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HomeMy WebLinkAbout03_Restoration Hardware Minor Use Permit_PA2024-0058CITY OF NEWPORT BEACH ZONING ADMINISTRATOR STAFF REPORT October 10, 2024 Agenda Item No. 3 SUBJECT: Restoration Hardware Type 47 License (PA2024-0058) Minor Use Permit SITE LOCATION: 1101 Newport Center Drive APPLICANT: Stuart Wagner OWNER: Irvine Company PLANNER: Laura Rodriguez, Planning Technician 949-644-3216, lrodriguez@newportbeachca.gov LAND USE AND ZONING •General Plan Land Use Plan Category: Regional Commercial (CR) •Zoning District: North Newport Center Planned Community (PC56) PROJECT SUMMARY A request to allow a Type 47 (On-Sale General – Eating Place) Alcohol Beverage Control (ABC) License for a new restaurant and design gallery within a retail store. Proposed hours of operation are 10:00 a.m. to 10:00 p.m., Monday through Saturday, and 10:00 am to 9:00 p.m. on Sunday. No late hours (after 11:00 p.m.), live entertainment, or dancing, are proposed as part of this application. RECOMMENDATION 1) Conduct a public hearing; 2) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential to have a significant effect on the environment; and 3) Adopt Draft Zoning Administrator Resolution No. _ approving a Minor Use Permit (Attachment No. ZA 1). 1 Restoration Hardware Alcohol License (PA2024-0058) Zoning Administrator, October 10, 2024 Page 2 DISCUSSION •The Land Use Element of the General Plan categorizes the property as Regional Commercial (CR). The CR designation allows various land uses outlined in the PC56 text to provide retail, dining, and commercial entertainment uses within the Fashion Island Sub-Area. •The project is located in the North Newport Center Planned Community (PC56) within the Fashion Island Sub-Area. A retail establishment (Restoration Hardware), which includes a restaurant and design gallery, was authorized on February 6, 2023 through Building Permit No. XC2022-1892 and issued on February 6, 2023. While eating and drinking establishments are a permitted use, the sale of alcohol requires the approval of a minor use permit. •The applicant requests a minor use permit to allow a Type 47 (On-Sale General – Eating Place) Alcohol Beverage Control (ABC) License for a new restaurant and design gallery within a retail store. The proposed hours of operation are 10:00 a.m. to 10:00 p.m., Monday through Saturday, and 10:00 am to 9:00 p.m. on Sunday. No late hours (after 11:00 p.m.), live entertainment, or dancing are requested. •The project is located along West Newport Center Drive in Fashion Island, which is accessible from Newport Center Drive, Santa Barbara Drive, Anacapa Drive, and San Miguel Drive. Commercial uses, including eating and drinking establishments, within the Fashion Island Sub-Area of PC56 and is intended to serve visitors and residents. The addition of a Type 47 ABC License with no late hours has been reviewed and conditioned to ensure that potential conflicts with the surrounding land uses are minimized to the greatest extent possible to maintain an environment compatible with both residents and businesses. The permitted restaurant and design gallery, with the proposed alcohol service, are not expected to result in an increase of vehicular and pedestrian activity. •The Newport Beach Police Department (NBPD) has reviewed the proposed application. The project site is in a high crime area and undue concentration. However, the NBPD has reviewed the project and has no objection to the request for a Type 47 ABC License subject to appropriate conditions of approval. While the project site has undue concentration, NBPD determined that the area is a planned entertainment district with few residences, which makes the project appropriate for the area. The NBPD’s memorandum, crime and alcohol- related statistics, and reporting district map are included in Attachment No. ZA 4. 2 Restoration Hardware Alcohol License (PA2024-0058) Zoning Administrator, October 10, 2024 Page 3 ENVIRONMENTAL REVIEW This project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential to have a significant effect on the environment. PUBLIC NOTICE Notice of this application was published in the Daily Pilot, mailed to all owners of property within 300 feet of the boundaries of the site (excluding intervening rights-of-way and waterways), including the applicant, and posted on the subject property at least 10 days before the scheduled hearing, consistent with the provisions of the Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the City website. APPEAL PERIOD: An appeal or call for review may be filed with the Director of Community Development within 14 days following the date of the action. For additional information on filing an appeal, contact the Planning Division at 949-644-3200. An appeal may be filed with the Director of Community Development within 10 days following the date of the action. For additional information on filing an appeal, contact the Planning Division at (949) 644-3200. ____________________________ Laura Rodriguez, Planning Technician Prepared by: DL/lr Attachments: ZA 1 Draft Resolution ZA 2 Vicinity Map ZA 3 Project Description ZA 4 Police Department Memorandum ZA 5 Project Plans 3 Attachment No. ZA 1 Draft Resolution 4 RESOLUTION NO. PA2024-### A RESOLUTION OF THE ZONING ADMINISTRATOR OF THE CITY OF NEWPORT BEACH, APPROVING A MINOR USE PERMIT TO ALLOW A TYPE 47 (ON-SALE GENERAL – EATING PLACE) ALCOHOL BEVERAGE CONTROL (ABC) LICENSE FOR A RESTAURANT AND RETAIL STORE LOCATED AT 1101 NEWPORT CENTER DRIVE (PA2024-0058). THE ZONING ADMINISTRATOR OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. An application was filed by Stuart Wagner (Applicant), on behalf of Irvine Company (Property Owner), concerning property located at 1101 Newport Center Drive, legally described as Parcel 1 of Lot Line Adjustment No. PA2023-0002 (Property), requesting approval of a minor use permit. 2. The applicant requests a minor use permit to allow a Type 47 (On-Sale General – Eating Place) Alcohol Beverage Control (ABC) License for a new restaurant and design gallery within a retail store. The proposed hours of operation are 10:00 a.m. to 10:00 p.m., Monday through Saturday, and 10:00am to 9:00 p.m. on Sunday. No late hours (after 11:00 p.m.), live entertainment, or dancing are requested (Project). 3. The Property is categorized as Regional Commercial (CR) by the General Plan Land Use Element and is located within North Newport Center Planned Community (PC56), in the Fashion Island sub-area. 4. The Property is not located within the coastal zone. 5. A public hearing was held on October 10, 2024, online via Zoom. A notice of the time, place, and purpose of the hearing was given in accordance with the Newport Beach Municipal Code (NBMC). Evidence, both written and oral, was presented to and considered by, the Zoning Administrator at this hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1. This Project is exempt from the California Environmental Quality Act (CEQA) under Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3 because it has no potential to have a significant effect on the environment. 2. The Class 1 exemption authorizes the operation or licensing to an existing private structure involving no expansion of use. The Property, which is being developed as a retail store with a restaurant and design gallery, was authorized on February 6, 2023 through Building Permit No. XC2022-1892 and is currently under construction. The Applicant’s request is for the use of a Type 47 ABC License in the approved restaurant and design gallery portion of the store. 5 Zoning Administrator Resolution No. ZA2024-### Page 2 of 13 SECTION 3. REQUIRED FINDINGS. Alcohol Sales In accordance with Section 20.48.030 (Alcohol Sales) of the NBMC, the Zoning Administrator shall consider the following findings prior to the approval of a new or amended alcohol sales establishment: Finding: A. The use is consistent with the purpose and intent of Section 20.48.030 (Alcohol Sales) of the Zoning Code. Facts in Support of Finding: In finding that the Project is consistent with Section 20.48.030 (Alcohol Sales) of the NBMC, the following criteria must be considered: i. The crime rate in the reporting district and adjacent reporting districts as compared to other areas in the City. 1. The Property is in an area the Newport Beach Police Department (NBPD) has designated as Reporting District (RD) 39 which encompasses the Fashion Island Mall and surrounding areas. The NBPD is required to report offenses of Part One Crimes (criminal homicide, forcible rape, robbery, aggravated assault, burglary, larceny, theft, and motor vehicle theft), combined with all arrests for other crimes, both felonies and misdemeanors (except traffic citations) to the Department of Alcoholic Beverage Control (ABC). RD 39 is reported as a high crime area as compared to adjacent reporting districts in the City, including RD 38, RD 43, and RD 47. The subject RD’s crime count is 430, which is 264% over the City-wide crime count average of 118. The highest volume of crime in this area is theft and the highest volume of arrests in the area are narcotics related offenses. 2. Since RD 39 has a crime count that is 264% over the City-wide crime count average as determined from all crime reporting districts within the City, the area is found to have undue concentration. In comparison, the neighboring RD 38 is 65% below the City-wide average, RD 43 is 66% below the City-wide average, and RD 47 is 45% below the City-wide average. Of the 38 RDs in Newport Beach, 13 are reported to ABC as high crime areas. 3. The NBPD has reviewed the project and has no objection to the request for a Type 47 ABC License or Type 41 License subject to appropriate conditions of approval. The subject site is in a high crime area and there are no late hours requested. The project will be subject to appropriate conditions of approval and all NBPD recommended conditions of approval have been included in Exhibit “A” of this Resolution. ii. The number of alcohol-related calls for service, crimes, or arrests in the reporting district 6 Zoning Administrator Resolution No. ZA2024-### Page 3 of 13 and in adjacent reporting districts. Reporting District Alcohol Related Arrests1 Total Arrests RD 39 (Project) 16 243 RD 38 7 20 RD 43 3 17 RD 47 5 33 Newport Beach 291 2,732 1. In RD 39, DUI, public intoxication, and liquor law violations make up roughly 16% of arrests. In comparison, the figure for neighboring RD 38 is roughly 40%, RD 43 is roughly 18%, and RD 47 is roughly 21%. These statistics reflect the City of Newport Beach’s data for 2022, which is the latest available data. 2. The NBPD has reviewed the application and has provided operational conditions of approval to help minimize any potential detrimental impacts. The NBPD has no concerns with the Applicant’s request, and while the project site has undue concentration, the area is a planned entertainment district with few residences, which makes the Project appropriate for the area. Additionally, the Property Owner provides an additional crime deterrent by employing uniformed security for the area. iii. The proximity of the establishment to residential zoning districts, day care centers, hospitals, park and recreation facilities, place of worship, schools, other similar uses, and any uses that attract minors. 1. The nearest residential zoning district to the Property is the multi-residential neighborhood located on Granville Drive, located approximately 540 feet west of the Property. Although there are residential properties within proximity to the Property, the new restaurant and design gallery are oriented towards West Newport Center Drive which is within North Newport Center Planned Community (PC56) at Fashion Island. This Planned Community is typically developed with commercial uses such as retail, administrative offices, and restaurants. The operational characteristics of the restaurant and design gallery are similar to the existing restaurants at Fashion Island Mall, and the 10:00 p.m. closing hour will ensure patrons will not linger in the area into the late hours of the night. 2. The nearest place of worship is Saint Michael and All Angels Episcopal Church located approximately 5,250 feet to the east of the property at 3233 Pacific View Drive in Corona Del Mar. The Saint John Vianney Chapel typically is open in the morning on Monday and Wednesday from 9:00 a.m. to 3:00 p.m., 7:30 a.m. to 12:00 p.m. on Tuesday and Thursday, and on Sunday from 8:00 a.m. to 12:00 p.m. 1 Alcohol Related Arrests includes DUI (alcohol), public intoxication, and liquor law related arrests. 7 Zoning Administrator Resolution No. ZA2024-### Page 4 of 13 3. Although the project site is within proximity of a recreational facility, such as The Tennis and Pickleball Club along Newport Center Drive, and other similar uses within Fashion Island Mall that may attract minors, the Applicant’s request is similar to other existing restaurants within the vicinity that hold active ABC Licenses, such as Red O and Cucina Enoteca. iv. The proximity to other establishments selling alcoholic beverages for either off-site or on-site consumption. 1. There are several other restaurants located along West Newport Coast Drive in Fashion Island with active ABC Licenses, most of which are bona fide eating and drinking establishments and are not defined as bars, lounges, or night clubs by the NBMC. The closest restaurant selling alcoholic beverages is Cucina Enoteca located approximately 370 feet north of the Property. 2. The nearest establishment selling alcoholic beverages for off-site consumption is the Whole Foods Market at 415 Newport Center Drive, which is approximately 520 feet east of the Property. v. Whether or not the proposed amendment will resolve any current objectionable conditions. 1. No objectionable conditions are presently occurring at the site. Minor Use Permit In accordance with Section 20.52.020(F) (Conditional Use Permits and Minor Use Permits – Findings and Decision) of the NBMC, the following findings and facts in support of such findings are set forth: Finding: B. The use is consistent with the General Plan and any applicable specific plan; Fact in Support of Finding: 1. The Land Use Element of the General Plan categorizes the Property as Regional Commercial (CR). The CR designation is intended to provide retail, entertainment, service, and supporting uses that serve local and regional residents. The Project is compliant with the CR designation since it will serve as a restaurant and design gallery. 8 Zoning Administrator Resolution No. ZA2024-### Page 5 of 13 Finding: C. The use is allowed within the applicable zoning district and complies with all other applicable provisions of this Zoning Code and the Municipal Code; Facts in Support of Finding: 1. The Project is located in the North Newport Center Planned Community (PC56) within the Fashion Island Sub-Area. While eating and drinking establishments are a permitted use, the sale of alcohol requires the approval of a minor use permit. 2. As conditioned, the Applicant will comply with all recommendations from the NBPD to ensure the restaurant does not operate as a bar, tavern, cocktail lounge, or nightclub as defined by the NBMC. 3. The retail establishment, including the restaurant and design gallery, was authorized on February 6, 2023, through Building Permit No. XC2022-1892 and is currently under construction. Finding: D. The design, location, size, and operating characteristics of the use are compatible with the allowed uses in the vicinity; Facts in Support of Finding: 1. The Project is located along West Newport Center Drive in Fashion Island, which is accessible from Newport Center Drive, Santa Barbara Drive, Anacapa Drive, and San Miguel Drive. Commercial uses, including eating and drinking establishments, within the Fashion Island Sub-Area of PC56 and is intended to serve visitors and residents. The addition of a Type 47 ABC License with no late hours has been reviewed and conditioned to ensure that potential conflicts with the surrounding land uses are minimized to the greatest extent possible to maintain an environment compatible with both residents and businesses. 2. The permitted restaurant is proposing hours of operation are 10:00 a.m. to 10:00 p.m., Monday through Saturday, and 10:00 a.m. to 9:00 p.m. on Sunday. No late hours (after 11:00 p.m.), live entertainment, or dancing are requested. The 10:00 p.m. closing time is compatible with the existing restaurants located within Fashion Island. 3. The NBPD has reviewed the project and has no objections. The operational conditions of approval recommended by the NBPD related to the sale of alcoholic beverages will help ensure compatibility with the surrounding uses and minimize alcohol-related impacts. The Project has been conditioned to ensure the welfare of the surrounding community. 9 Zoning Administrator Resolution No. ZA2024-### Page 6 of 13 Finding: E. The site is physically suitable in terms of design, location, shape, size, operating characteristics, and the provisions of public and emergency vehicle (e.g., fire and medical) access and public services and utilities; and Facts in Support of Finding: 1. The Property is within Fashion Island, which is located at the entrance of Newport Center Drive which has heavy vehicular and pedestrian activity. The area allows for commercial entertainment uses such as retail and dining. The permitted restaurant and design gallery, with the proposed alcohol service, are not expected to result in an increase of vehicular and pedestrian activity. 2. The Property is accessible from the front of the property along Newport Center Drive and from pedestrian walkways within Fashion Island. 3. The restaurant and design gallery were reviewed by the City’s Public Works Department and Fire Division prior to issuance of the building permit to ensure adequate public and emergency vehicle access, public services, and utilities are provided on the property. Finding: F. Operation of the use at the location proposed would not be detrimental to the harmonious and orderly growth of the City, nor endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed use. Facts in Support of Finding: 1. The Project has been reviewed and includes conditions of approvals to ensure that potential conflicts with the surrounding land uses are minimized to the greatest extent possible. The NBPD has reviewed the Project and Condition of Approval No. 25 is included to ensure the premise does not operate as a bar, tavern, cocktail lounge, or nightclub as defined by the NBMC. 2. The restaurant and design gallery will serve the surrounding community in the Fashion Island Sub-Area of PC56 which is designed for such uses. The operator is required to take reasonable steps to discourage and correct objectionable conditions that constitute a nuisance within the facility, adjacent properties, or surrounding public areas, sidewalks, or parking lots of the restaurant, during business hours, if directly related to the patrons of the establishment. 3. Per Condition of Approval No. 24, all owners, managers, and employees selling alcohol are required to undergo and successful complete a certified training program in responsible methods and skills for selling alcoholic beverages within 60 days of hire. The certified program must meet the standards of the certifying/licensing body designated by the State of California and records of successful completion shall be 10 Zoning Administrator Resolution No. ZA2024-### Page 7 of 13 maintained on the premises. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Zoning Administrator of the City of Newport Beach hereby finds this project is categorically exempt from the California Environmental Quality Act under Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3 because it has no potential to have a significant effect on the environment. 2. The Zoning Administrator of the City of Newport Beach hereby approves the Minor Use Permit (PA2024-0058), subject to the conditions outlined in Exhibit A, which is attached hereto and incorporated by reference. 3. This action shall become final and effective 14 days following the date this Resolution was adopted unless within such time an appeal or a call for review is filed with the Community Development Director by the provisions of Title 20 Planning and Zoning, of the Newport Beach Municipal Code. PASSED, APPROVED, AND ADOPTED THIS 10TH DAY OF OCTOBER 2024. __________________________________________ Benjamin M. Zdeba, AICP, Zoning Administrator 11 Zoning Administrator Resolution No. ZA2024-### Page 8 of 13 EXHIBIT “A” CONDITIONS OF APPROVAL (project specific conditions are italicized) Planning Division 1. The Project shall be in substantial conformance with the approved project plans. 2. The Project is subject to all applicable City ordinances, policies, and standards unless specifically waived or modified by the conditions of approval. 3. The applicant shall comply with all federal, state, and local laws. A material violation of any of those laws in connection with the use may be caused the revocation of this Use Permit. 4. The hours of operation are limited to 10:00 a.m. to 10:00 p.m. (last seating at 9:00 p.m.) Monday to Saturday, and 10:00 a.m. to 9:00 p.m. (last seating at 8:00 p.m.) on Sunday. No late hours (after 11 p.m.) are permitted. 5. Live Entertainment and dancing shall be prohibited. 6. Any change in operational characteristics, expansion in the area, or other modification to the approved plans, shall require an amendment to this Use Permit or the processing of a new Use Permit. 7. Should the property be sold or otherwise come under different ownership, any future owners or assignees shall be notified of the conditions of this approval by either the current business owner, property owner or leasing agent. 8. No outside paging system shall be utilized in conjunction with this establishment. 9. All trash shall be stored within the building or within dumpsters stored in the trash enclosure (three walls and a self-latching gate) or otherwise screened from view of neighboring properties, except when placed for pick-up by refuse collection agencies. The trash enclosure shall have a decorative solid roof for aesthetic and screening purposes. 10. All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 (Community Noise Control), under Sections 10.26.025 (Exterior Noise Standards) and 10.26.030 (Interior Noise Standards), and other applicable noise control requirements of the Newport Beach Municipal Code (NBMC). 11. Trash receptacles for patrons shall be conveniently located both inside and outside of the establishment, however, not located on or within any public property or right-of-way. 12. The Applicant shall ensure that the trash dumpsters and/or receptacles are maintained 12 Zoning Administrator Resolution No. ZA2024-### Page 9 of 13 to control odors. This may include the provision of either fully self-contained dumpsters or periodic steam cleaning of the dumpsters if deemed necessary by the Planning Division. Cleaning and maintenance of trash dumpsters shall be done in compliance with the provisions of Title 14, including all future amendments (including Water Quality related requirements). 13. Construction activities shall comply with Section 10.28.040 of the Newport Beach Municipal Code, which restricts hours of noise-generating construction activities that produce noise to between the hours of 7:00 a.m. and 6:30 p.m., Monday through Friday. Noise-generating construction activities are not allowed on Saturdays, Sundays, or Holidays. 14. A Special Events Permit is required for any event or promotional activity outside the normal operating characteristics of the approved use, as conditioned, or that would attract large crowds, involve the sale of alcoholic beverages, include any form of on- site media broadcast, or any other activities as specified in the Newport Beach Municipal Code to require such permits. 15. Deliveries and refuse collection for the facility shall be prohibited between the hours of 10:00 p.m. and 7:00 a.m. on weekdays and Saturdays, and between the hours of 10:00 p.m. and 9:00 a.m. on Sundays and Federal holidays unless otherwise approved by the Director of Community Development and may require an amendment to this Use Permit. 16. Storage outside of the building in the front or at the rear of the property shall be prohibited, except for the required trash container enclosure. 17. Lighting shall be in compliance with applicable standards of the Zoning Code. Exterior on- site lighting shall be shielded and confined within site boundaries. No direct rays or glare are permitted to shine onto public streets or adjacent sites or create a public nuisance. “Walpak” type fixtures are not permitted. Parking area lighting shall have zero cut-off fixtures. 18. The Property shall not be excessively illuminated based on the luminance recommendations of the Illuminating Engineering Society of North America, or, if in the opinion of the Planning Director, the illumination creates an unacceptable negative impact on surrounding land uses or environmental resources. The Planning Director may order the dimming of light sources or other remediation upon finding that the site is excessively illuminated. 19. A Special Events Permit is required for any event or promotional activity outside the normal operating characteristics of the approved use, as conditioned, or that would attract large crowds, involve the sale of alcoholic beverages, include any form of on-site media broadcast, or any other activities as specified in the Newport Beach Municipal Code to require such permits. 20. This approval shall expire and become void unless exercised within 24 months from the actual date of review authority approval, except where an extension of time is approved in compliance with the provisions of Title 20 Planning and Zoning of the Newport Beach Municipal Code. 13 Zoning Administrator Resolution No. ZA2024-### Page 10 of 13 21. To the fullest extent permitted by law, the applicant shall indemnify, defend and hold harmless the City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs, and expenses (including without limitation, attorney’s fees, disbursements, and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to City’s approval of Restoration Hardware Alcohol License Minor Use Permit (PA2024-0058). This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorney’s fees, and other expenses incurred in connection with such claim, action, causes of action, suit, or proceeding whether incurred by the applicant, City, and/or the parties initiating or bringing such proceeding. The applicant shall indemnify the City for all the City's costs, attorneys' fees, and damages that which City incurs in enforcing the indemnification provisions outlined in this condition. The applicant shall pay to the City upon demand any amount owed to the City under the indemnification requirements prescribed in this condition. Police Department 22. The Alcoholic Beverage Control License shall be limited to a Type 47 (On-Sale General) or a Type 41 (On-Sale Beer and Wine). Any substantial change in the ABC license type shall require subsequent review and potential amendment of the Use Permit. 23. The Applicant shall comply with all federal, state, and local laws, and all conditions of the Alcoholic Beverage License. Material violation of any of those laws or conditions in connection with the use is a violation and may be cause for revocation of the use permit. 24. All owners, managers and employees selling alcoholic beverages shall undergo and successfully complete a certified training program in responsible methods and skills for selling alcoholic beverages within 60 days of hire. The certified program must meet the standards of the certifying/licensing body designated by the State of California. The establishment shall comply with the requirements of this section within 60 days of approval. Records of each owner’s manager’s and employee’s successful completion of the required certified training program shall be maintained on the premises and shall be presented upon request by a representative of the City of Newport Beach. 25. Approval does not permit the premises to operate as a bar, tavern, cocktail lounge or nightclub as defined by the Newport Beach Municipal Code. 26. No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the licensee. 27. Alcohol service and alcohol consumption must occur in the ABC licensed areas only. 28. Food service shall be made available to patrons during alcohol service. 14 Zoning Administrator Resolution No. ZA2024-### Page 11 of 13 29. Petitioner shall not share any profits or pay any percentage or commission to a promoter, or any other person based upon monies collected as a door charge, cover charge, or any other form of admission charge, including minimum drink orders or the sale of drinks. 30. Any event or activity staged by an outside promoter or entity, where the applicant, operator, owner or his employees or representatives share in any profits, or pay any percentage or commission to a promoter or any other person based upon money collected as a door charge, cover charge or any other form of admission charge is prohibited. 31. “VIP” passes or other passes to enter the establishment, as well as door charges, cover charges, or any other form of admission charge, including minimum drink order of the sale of drinks is prohibited (excluding charges for prix fixe meals). 32. Strict adherence to maximum occupancy limits is required. 33. There shall be no reduced-price beverage promotions or “happy hour” pricing after 9:00 p.m. 34. The applicant shall maintain a security recording system with a 30-day retention and make those recording available to police upon request. 35. The exterior of the business shall be maintained free of litter and graffiti at all times. The owner or operator shall provide for daily removal of trash, litter, and debris from the premises and on all abutting sidewalks within 20 feet of the premises. Graffiti shall be removed within 48 hours of written notice from the City. 36. Strict adherence to maximum occupancy limit shall be required. 37. The operator of the restaurant facility shall be responsible for the control of noise generated by the subject facility. All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 and other applicable noise control requirements of the Newport Beach Municipal Code. Building Division 38. The approved Plan Check No. PC2022-1953 shall be revised if there are any changes from the approve plans. Fire Division 39. A Fire Department operation permit shall be obtained for assembly occupancy. 40. Conditions of the assembly operation permit shall be followed at all times. 15 Attachment No. ZA 2 Vicinity Map 16 VICINITY MAP Minor Use Permit (PA2024-0058) 1101 Newport Center Drive Subject Property 17 Attachment No. ZA 3 Project Description 18 PROJECT DESCRIPTION Revised 4/30/24 Intro RH respectfully submits this application for a Minor Use Permit in order to sell beer, wine and distilled spirits for on-premises consumption at RH Newport Beach, a design gallery and restaurant located at 1101 Newport Center Drive (the “Premises”). Concept The Premises will consist of four (4) floors. The first, second, and third floors will contain galleries displaying furniture, lighting, décor, and hardware for both indoor and outdoor spaces. The fourth floor will contain the Rooftop Restaurant. There will be two (2) fixed bars adjacent to the Rooftop Restaurant. RH desires to sell and serve beer, wine and distilled spirits for consumption throughout the Premises. Where a patron can consume alcohol is labeled as “Accessible Floor Area” on the floor plans included with this application. Seating and Hours of Operation The Rooftop Restaurant will contain 260 seats: 164 indoor seats and 96 outdoor seats. Proposed operating hours will be from 10:00am to 10:00pm (last seating at 9:00p), Monday to Saturday and 10:00am to 9:00pm (last seating at 8:00pm) on Sunday. Note: these hours are subject to change. ABC License RH intends to apply for an On-Sale General – Eating Place License (Type 47) from the ABC. RH may apply for a Type 41 beer and wine license in lieu of a Type 47. Minor Use Permit While eating and drinking establishments are “permitted by right” use within the PC56 zoning designation, the on-site sale and consumption of alcohol requires the approval of a Minor Use Permit. In 2023 a building 19 NEWPOR T BEACH THE GALLERY AT FASHI ON IS LAND permit for RH Newport Beach was issued and with construction now underway, there is a need to obtain this use permit. Included below, after each required finding, is our justification for the Minor Use Permit. 20.52.020 Conditional Use Permits and Minor Use Permits. F. Findings: 1. The use is consistent with the General Plan and any applicable specific plan; The General Plan designates the subject property as Regional Commercial (CR). The CR designation is intended to provide retail, entertainment, service, and supporting uses that serve local and regional residents. RH Newport Beach will serve local and regional residents with a unique experience – the opportunity to explore a furniture and décor showroom with interior design services, together with a restaurant and wine bar on the rooftop. The ability to enjoy an alcoholic beverage while shopping or dining will provide an integrated hospitality experience, all consistent with the General Plan designation. 2. The use is allowed within the applicable zoning district and complies with all other applicable provisions of this Zoning Code and the Municipal Code; The City of Newport Beach Zoning Map designates the property as PC 56 or North Newport Center Planning Community with the sub-area being “Fashion Island”. In this zoning district, eating and drinking establishments are permitted uses with the sale of alcohol requiring a minor use permit. The proposed use will comply with all other applicable provisions of the zoning and municipal code. 3. The design, location, size, and operating characteristics of the use are compatible with the allowed uses in the vicinity; The proposed use is located within a commercial area with a high concentration of higher-end fast casual and full-service restaurants. The proposed use is in line with the character of development in the area and therefore compatible with the surrounding uses. RH is an experienced operator, so the addition of alcoholic beverages at this location is not anticipated to pose any safety or security risks. Employees will undergo responsible beverage service training. 4. The site is physically suitable in terms of design, location, shape, size, operating characteristics, and the provision of public and emergency vehicle (e.g., fire and medical) access and public services and utilities; and The proposed use will occupy an area of the Fashion Island shopping mall that has existed for more than 30 years. Original site plan approvals for the tenant space included a review to ensure adequate public and emergency vehicle access, and that public services, and utilities are provided. Any tenant improvement plans will be reviewed for compliance with applicable building and fire codes. Traffic generated by the proposed use would not impose an undue burden on streets and highways in the area. 5. Operation of the use at the location proposed would not be detrimental to the harmonious and orderly growth of the City, nor endanger, jeopardize, or otherwise constitute a hazard to the public 20 convenience, health, interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed use. The sale of alcoholic beverages at the Premises will not be detrimental to the harmonious and orderly growth of the City nor constitute a hazard to the public convenience, health, interest, safety or general welfare of persons residing or working in the neighborhood of the proposed use because the Premises are located within interior portions of the Fashion Island shopping mall and surrounded by retail establishments and restaurants. This request will have no noise impact beyond what normally occurs for a restaurant with outdoor terrace seating. 21 Attachment No. ZA 4 Police Department Memorandum 22 NEWPORT BEACH POLICE DEPARTMENT DETECTIVE DIVISION MEMORANDUM TO: Laura Rodriguez, Planning Technician FROM: Wendy Joe, Police Civilian Investigator DATE: August 29, 2024 SUBJECT: RH Newport Beach 1101 Newport Center Dr. PA2024-0058 At your request, the Police Department has reviewed the project application for RH Newport at 1101 Newport Center Drive, Newport Beach. The applicant has requested a minor use permit to for a new restaurant with alcohol within a retail store and design gallery. Statistical Data and Public Convenience or Necessity Attached is a summary report which provides detailed statistical information related to alcohol establishments in and around the applicant’s place of business at 1101 Newport Center Drive. Business and Professions Code §23958.4 finds “undue concentration” for an applicant premises in two ways: 20% higher crime (with an alcohol nexus) in a Reporting District as compared to the City-wide average, or an over saturation of alcohol licenses in a census tract compared to the county. Crime Statistics: The Police Department divides the City into areas referred to as Reporting Districts. This allows the Police Department to compile statistical data, as well as better communicate officer locations while policing. The proposed applicant location is within Reporting District (RD) 39 which mainly encompasses the Fashion Island Mall and surrounding areas. Per Business and Professions Code §23958.4, the Police Department is required to report offenses of criminal homicide, forcible rape, robbery, aggravated assault, burglary, larceny, theft, and motor vehicle theft, combined with all arrests for other crimes, both felonies and misdemeanors (except traffic citations) to the Department of Alcoholic Beverage Control (ABC). These figures make up the “Crime Count” which is indicated on the attached statistical data form. This reporting district is reported to ABC as a high crime area as compared to other Reporting Districts in the City. The RD’s Crime Count is 430, 264% over the City-wide crime count average of 118. Since this area has a 20% greater number of reported crimes than the average number of reported crimes as determined from all crime reporting districts within the City, the area is found to have undue concentration. In comparison, neighboring RD 38 is 65% below the City- 23 RH Newport Beach PA2024-0058 2 wide average, RD 43 is 66% below the City-wide average, and RD 47 is 45% below the average. Of 38 reporting districts in Newport Beach, we reported 13 to ABC as high crime areas. The highest volume crime in this area is theft. The highest volume arrests in the area are narcotics related offenses. DUI, Public Intoxication, and liquor law violations make up 16% of arrests in this reporting district. In comparison, the figure for neighboring RD 38 is 40%, RD 43 is 18% and RD 47 is 21%. This location meets the legal criteria for undue concentration pertaining to crime (B&P §23958.4). Alcohol License Statistics: The applicant premise is located within census tract 0630.08. This census tract has an approximate population of 2,408 residents with 32 active on-sale alcohol licenses. That is a per capita ratio of 1 on sale license for every 75 residents. Per the Business and Professions code, we compare this per capita ratio to Orange County’s on-sale per capita ratio of 1 license for every 822 residents and we find census tract 630.08 is over saturated with alcohol licenses per the specified criteria. This location meets the legal criteria for undue concentration pertaining to alcohol licenses (B&P §23958.4). Discussion and Recommendations The Police Department has no concerns with the application provided the conditions below (or similar conditions) are imposed. Although the applicant location has undue concentration, the area is a planned entertainment district with few residences, making this application appropriate for the area. The crime in the neighborhood is largely due to thefts in and around the mall area. The property owner, The Irvine Company, employs uniformed security for the area which serves as an additional crime deterrent. 1. The Alcoholic Beverage Control License shall be limited to a Type 47 (On-Sale General) or a Type 41 (On-Sale Beer and Wine). Any substantial change in the ABC license type shall require subsequent review and potential amendment of the Use Permit. 2. The applicant shall comply with all federal, state, and local laws, and all conditions of the Alcoholic Beverage License. Material violation of any of those laws or conditions in connection with the use is a violation and may be cause for revocation of the use permit. 3. All owners, managers and employees selling alcoholic beverages shall undergo and successfully complete a certified training program in responsible methods and skills for selling alcoholic beverages within 60 days of hire. The certified program must meet the standards of the certifying/licensing body designated by the State of California. The establishment shall comply with the requirements of this section within 60 days of approval. Records of each owner’s manager’s and employee’s successful completion of the required certified training program shall be maintained on the premises and shall be presented upon request by a representative of the City of Newport Beach. 24 RH Newport Beach PA2024-0058 3 4. Approval does not permit the premises to operate as a bar, tavern, cocktail lounge or nightclub as defined by the Newport Beach Municipal Code. 5. No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the licensee. 6. Alcohol service and alcohol consumption must occur in the ABC licensed areas only. 7. Food service shall be made available to patrons during alcohol service. 8. Petitioner shall not share any profits or pay any percentage or commission to a promoter or any other person based upon monies collected as a door charge, cover charge, or any other form of admission charge, including minimum drink orders or the sale of drinks. 9. Any event or activity staged by an outside promoter or entity, where the applicant, operator, owner or his employees or representatives share in any profits, or pay any percentage or commission to a promoter or any other person based upon money collected as a door charge, cover charge or any other form of admission charge is prohibited. 10. “VIP” passes or other passes to enter the establishment, as well as door charges, cover charges, or any other form of admission charge, including minimum drink order of the sale of drinks is prohibited (excluding charges for prix fixe meals). 11. Strict adherence to maximum occupancy limits is required. 12. There shall be no reduced price beverage promotions or “happy hour” pricing after 9:00 p.m. 13. The applicant shall maintain a security recording system with a 30-day retention and make those recording available to police upon request. 14. The exterior of the business shall be maintained free of litter and graffiti at all times. The owner or operator shall provide for daily removal of trash, litter, and debris from the premises and on all abutting sidewalks within 20 feet of the premises. Graffiti shall be removed within 48 hours of written notice from the City. 15. Strict adherence to maximum occupancy limit is required. 16. The operator of the restaurant facility shall be responsible for the control of noise generated by the subject facility. All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 and other applicable noise control requirements of the Newport Beach Municipal Code. If you have any questions as to the content of this memorandum, please contact Investigator Wendy Joe at (949)644-3705 or wjoe@nbpd.org. Wendy Joe Police Civilian Investigator, Special Investigations Unit 25 CITATIONS GROUP A OFFENSES GROUP B OFFENSES CRIME RATE HIGHEST VOLUME ALL ARRESTS DUI ALCOHOL PUBLIC INTOXICATION LIQUOR LAW HIGHEST VOLUME ALCOHOL RELATED 1101 Newport Center Drive 100N/AN/A 0000N/A 0 Subject RD: RD39 3,834 506 96 18,123.21 THEFT/LARCENY 243 16 22 0 NARCOTICS 6 Adjacent RD: RD38 333 45 15 2,728.93 BURGLARY 20710DUI 2 Adjacent RD: RD43 400 47 10 1,986.48 BURGLARY 17300DUI 0 Adjacent RD: RD47 524 64 21 2,278.39 BURGLARY & THEFT/LARCENY 33520NARCOTICS 0 Newport Beach 40,526 5,102 1,439 5,885.07 THEFT/LARCENY 2,732 291 339 7 NARCOTICS 67 Subject:Population ON-SALE Licenses ON-SALE License Per Capita OFF-SALE Licenses OFF-SALE License Per Capita TOTAL RETAIL LICENSES TOTAL RETAIL LICENSES PER CAPITA Subject: CRIME COUNT DIFF FROM AVG %DIFF FROM AVG 1101 Newport Center Drive N/A 1 N/A 0 N/A 1 N/A 1101 Newport Center Drive 0N/AN/A Subject Census Tract: 630.08 2,408 32 75 4 602 36 67 Subject RD: RD39 430 +312 +264% Adjacent Census Tract: 630.07 6,699 1 6,699 0 0 1 6,699 Adjacent RD: RD38 41 -77 -65% Adjacent Census Tract: 627.01 2,667 11 242 2 1,334 13 205 Adjacent RD: RD43 40 -78 -66% Adjacent Census Tract: 626.42 2,849 1 2,849 2 1,425 3 950 Adjacent RD: RD47 65 -53 -45% Newport Beach 86,694 279 311 66 1,314 345 251 Newport Beach 4,502 Orange County 3,186,989 3,876 822 1,842 1,730 5,718 557 All Population figurs taken from 2020 US Census. Per BP 23958.4, the "ABC Crime Count" includes offenses of criminal homicide, forcible rape, robbery, aggravated assault, burglary, larceny, theft, and motor vehicle theft, combined with all arrests for other crimes, both felonies and misdemeanors (except traffic citations). Summary for RH Newport Beach at 1101 Newport Center Drive (RD39) Subject: DISPATCH EVENTS ACTIVE RETAIL ABC LICENSES ARRESTS This report reflects City of Newport Beach data for 2022. The NIBRS Group A Offense category is made up of 49 offenses used to report crimes committed within a law enforcement agency's jurisdiction. NIBRS Group B Offenses are less serious offenses that require an arrest to be reportable. Crime Rate refers to the number of Group A Crimes per 100,000 people. RD Average = 118 ABC CRIME COUNT REPORTED CRIMES Su fo RH N rt B ch t 1101 N rt C te Driv (RD39) CHIEF JOSEPH L. CARTWRIGHT NNEWPORTT BEACHH POLICEE DEPARTMENT 20233 CRIMEE ANDD ALCOHOL-RELATED STATISTICS as of 07/18/2023 26 Attachment No. ZA 5 Project Plans 27 28 SUPPLY STORAG I 112 I ELEVATOR 2 I 146 I SHIPPING/ RECEIVIN...------! 109 I JANITOR CLOSET--! 155 I STAIR 2 142 PASSAGE ~ I 111 I " ~ CLOSET ,!_ RECEIVING I 149 I GALLERY I 105 I ~<r~ ."' G'AlLERY I 100 I HOSP. LOUNGE GALLERY GALLERY GALLERY I 110 I 116 117 H H H H H 29'-0" X 20'-0" UNOCCUPI SHELL SP 27'-8" X 41'-0" 32'-0" X 41'-0" 54'-0" X 41'-0" 23'-6" X 12'-0" ELECTRICAL ROOM 1 124 I MDF 150 STAIR 1 141 PASSAGE 1 125 I GSS 147 56'-0" X 20'-0" 56'-0" X 20'-0" l_::1-::::---+~~b-L~GALLERY I 120 I GALLERY I 102 I GREAT ROOM I 101 I Gross SF= 11,617 GALLERY I 132 I D -Accessible Floor Area (10,687 SF) ~W~~-~~)PUMPROOM 1 140 I SES 154 0 T""" I a.. ::J ~ .c (.) ro (I) cc t 0 a. s (I) z I ~ z u, ~ Ww U,z ..J I- w ~ ct a. 0:: 0 0 _J LL I-(j) 0:: LL V, p,: t.lJ z z < ...J a.. ciS V, I-u t.lJ I--r u er: < 0 z I-w w I f!-2 0 z 0 z ~ 0:: 0 ..... N 0 N N 29 GALLERY I 212 I GALLERY I 215 I GALLERY I 21 o I ELEVATOR 2 I 246 I CUSTOMER SERVICE I 209 I STAIR 2 242 GALLERY I 214 I JANITOR CLOSET-""""",:-tH1-----, I 248 I PASSAGE I 211 I GALLERY I 203 I GALLERY I 204 I GALLERY I 208 I GALLERY I 205 I GALLERY I 206 I GALLERY GALLERY 213 GALLERY I 202 1 216 50'-0" X 20'-0" 61 '-0" GALLERY 217 47'-9" X 41'-0" 74'-0" X ft GREAT ROOM I 201 1 X 20'-0" 61'-0" X 20'-0" GALLERY GALLERY I 232 I Gross SF= 21,291 GALLERY I 219 I D -Accessible Floor Area (25,805 SF) -0 ~A~.:~~-D FLOOR PLAN GALLERY I 220 I GALLERY I 222 I GALLERY I 221 I GALLERY I 223 I SWATCH ROOM I 224 I STAIR 1 241 GSS 247 PASSAGE I 225 I GALLERY I 227 I GALLERY I 228 I GALLERY I 226 I GALLERY I 229 I T""" T""" I a.. ::J ~ .c (.) ro (I) cc t 0 a. s (I) z I ~ z u, ~ Ww U,z ..J I- w ~ ct a. V, p,: t.lJ z z < ...J a.. ciS V, I-u t.lJ I--r u er: < ..... N 0 N N 30 GALLERY I 314 I GALLERY I 312 I _ GALLERY I 310 I ELEVATOR 2 I 346 I HOSPITALITY OFFICE I 309 I GSS 348 STAIR 2 342 PASSAGE I 311 I GALLERY I 303 I GALLERY I 304 I GALLERY I 308 I GALLERY I 305 I PRESENTATION PRESENTATION RM GALLERY DESIGN OFFICE GALLERY GALLERY RM GALLERY GALLERY 313 316 352 317 310 319 320 I 322 I 54'-8" 306 70'-0" X tt GREAT ROOM I 301 I Gross SF= 21,221 54'-8" GALLERY I 330 I D -Accessible Floor Area (19,740 SF) STAIR 1 341 RR 349 GALLERY I 323 I PASSAGE I 325 I N T""" I a.. ::J ~ .c (.) ro (I) cc t 0 a. s (I) z I ~ 0:: 0 0 _J LL 0 0:: I I- 0 z 1-w w I f!-2 0 z 0 z ~ 0:: 0 ..... N 0 N N 31 GALLERY HOSPITALITY KITCHEN TRASH/ LEADER GALLERY OUTDOOR BREAK LOUNGE LOCKER ROOM STORAGE DRY STORAGE KITCHEN OFFICE LOCKER ROOM TERRACE I 452 I OUTDOOR BREAK TERRACE GALLERY LOUNGE ~~;;;;~~~~~;;:;::::=::;::::=k;:;=iJ~~~r===~=#=~~==/1 410 I I 451 I ELEVATOR 2 I 446 I STAIR 2 442 ELEVATOR CONTROL RI\/L...-~ RESTAURANT I 460 I FIXED BAR AREA I 492 I ~ E:~.~'.I.~.~.~::::.:·:::.:~.~.~: Chairs .................................. 88 Banquetbi!s ........................ 100 Number of Seats ................ 1118 Tell'lllll! Net Public Area .......... 3,316 SF Tables .................................. 36 Chairs .................................. 88 Banq uetbi!s .......................... 72 Number of Seats ................ 160 Total Net Public Area .......... 7,379 SF Tables. ................................. 72 Chalrs ................................. 176 Banquet1l!s. ....................... 172 Number of SealS ................ 420 CAFE I 401 I PASSAGE I 402 I IDFROOM I 476 I ADA ESTROOM I 454 I ADA ESTROOM I 453 I ELEVATOR 1 -..---I 145 I RR 465 RR 07119/2024 0::: 0 z M 0 I- 0 w w T""" _J I I LL ~ a.. I 0 z :::J I-0 0::: z ~ ::J ~ 0 0:: LL 0 ..... .c N 0 (.) N N (0 ~o .. (I) ·c: IB o m ON;'= ._O) u t: Q) • w .... <( -, 5i (.) ~ 0 (.) ..c: 0. a. t:: 0 $ 0 (1l ~~ (I) Q) t:: zO z C. ..... ~ <") 0 Q) C:! I ~z I'- ~ !a2 N ..... w I-4: 0 0 0 i~ u •('I -o.,, -= a: co :~ ~ g 5 QI .. E -~o ~ C "0 t E g<C~ t "' 0 ~ Q): e: 0. .}l c -zt0vr.1 40 0-,-0. 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