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HomeMy WebLinkAboutZA2025-056 - APPROVING A MINOR USE PERMIT FOR A FOR A NEW TAKE-OUTSERVICE FAST CASUAL RESTAURANT LOCATED AT 408 31st STREET (PA2025-0115)RESOLUTION NO. ZA2025-056 A RESOLUTION OF THE ZONING ADMINISTRATOR OF THE CITY OF NEWPORT BEACH, APPROVING A MINOR USE PERMIT FOR A FOR A NEW TAKE-OUTSERVICE FAST CASUAL RESTAURANT LOCATED AT 408 31st STREET (PA2025-0115) THE ZONING ADMINISTRATOR OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. An application was filed by Joshua Stephanoff (Applicant), with respect to property located at 408 31st Street, and legally described as Lot 27, Block 331, Section 4, of the Lancasters Addition to Newport Beach (Property), requesting approval of a minor use permit. 2. The Applicant proposes to operate a new take-out service, fast casual eating and drinking establishment (Sundays Coffee & Co.) within an existing, approximately 1,200-square- foot, two-story commercial building. The Applicant proposes minor tenant improvements to convert the space from a retail clothing store into a coffee shop with a patio, coffee bar area, customer seating area, and bathroom on the upper floor and a lounge area on the ground floor. The coffee shop will have a maximum of 20 seats, inclusive of all seating areas. The proposed hours of operation are from 7 a.m. to 2 p.m. and from 5 p.m. to 10 p.m. daily, with no alcohol service proposed (Project). 3. The Property is located within the Mixed-Use Cannery Village and 15th Street (MU-CV/15TH ST) Zoning District and the General Plan Land Use Element category is Mixed-Use Horizontal (MU-H4). 4. The Property is located within the coastal zone. The Coastal Land Use Plan category is Mixed-Use Water Horizontal (MU-H) and it is located within the Mixed-Use Cannery Village and 15th Street (MU-CV/15TH ST) Coastal Zone District. The Project does not increase the parking requirement and therefore is not considered an intensification of use that would require a coastal development permit. 5. A public hearing was held on September 11, 2025, online via Zoom. A notice of 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) 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. The exceptions to this categorical exemption under Section 15300.2 are not applicable. Zoning Administrator Resolution No. ZA2025-056 Page 2 of 9 2. The Class 1 exemption authorizes minor alterations to existing structures involving negligible or no expansion of use. The Project involves alterations to the interior floor plan of an existing commercial space with no expansion in floor area and no increase in parking demand. Therefore, the Project is a negligible intensification of use and the Class 1 exemption is applicable. SECTION 3. REQUIRED FINDINGS. In accordance with Section 20.52.020 (Conditional Use Permits and Minor Use Permits) of the NBMC, the following findings and facts in support of such findings are set forth: Finding: A. The use is consistent with the General Plan and any applicable specific plan. Facts in Support of Finding: 1. The Land Use Element of the General Plan categorizes this Property as MU-H4 (Mixed- Use Horizontal). Table LU 1 (Land Use Plan Categories) of the Land Use Element specifies that the MU-H4 category is intended to establish the character of a distinct and cohesively developed district or neighborhood containing multi-family residential with clusters of mixed-use and/or commercial buildings in such locations as the interior parcels of Cannery Village and 15th Street on the Balboa Peninsula. The Project is for a coffee shop, which is a commercial use, and will serve nearby residents and complement the land uses of the surrounding community. Therefore, the Project is consistent with the MU-H4 designation. 2. The Property is not part of a specific plan area. Finding: B. 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 Property is located in the Mixed-Use Cannery Village and 15th Street (MU-CV/15th ST) Zoning District. The Property is abutted to the rear by an approximately 14-foot-wide alley with mixed-use properties beyond. Table 2-8 (Allowed Uses and Permit Requirements) of Section 20.22.020 (Mixed-Use Zoning Districts Land Uses and Permit Requirements) of the NBMC allows for a take-out service, fast casual eating and drinking establishment within 100 feet of residential uses, subject to the approval of a minor use permit (MUP). 2. There are three uncovered parking spaces on-site, accessed from the rear alley. The spaces are proposed to be restriped and reconfigured without a change in the number of spaces, to meet the current code requirements listed in Section 20.40.070 Zoning Administrator Resolution No. ZA2025-056 Page 3 of 9 (Development Standards for Parking Areas) of the NBMC. The Property was developed prior to current zoning code requirements and is considered legal nonconforming for parking. 3. Section 20.38.060 (Nonconforming Parking) of the NBMC allows a change of use on sites with nonconforming parking. Section 20.38.060 specifies that an existing use may be changed to a new use allowed in that zoning district without providing additional parking, provided no intensification or enlargement (e.g., increase in floor area, or lot area) occurs and the new use requires a parking rate of no more than one space per 250 square feet of gross building area. 4. Pursuant to Table 3-10 (Off-Street Parking Requirements) of Section 20.40.040 (Off- Street Parking Spaces Required) of the NBMC, the parking requirement for a take-out service fast casual, eating, and drinking establishment is one space required per every 250 square feet of gross floor area. As the Project does not constitute an intensification in parking demand nor does it propose any enlargement, no additional parking is required. 5. The Project will comply with zoning code standards for eating and drinking establishments, specific to the take-out service fast casual land use classification as provided in 20.48.090 (Eating and Drinking Establishments) of the NBMC. This includes a maximum of 20 seats, no alcohol service, and no late hours. Conditions of Approval No. 4, 5 and 6 regulate hours of operation, alcohol service, and number of seats. These conditions help ensure that the restaurant operates per the aforementioned characteristics. Finding: C. 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 Property can be accessed by pedestrians and cyclists from 31st Street. Direct vehicle access to the Property is provided from the alley. Street parking is also available near the main entrance fronting 31st Street. 2. 31st Street is developed with a mix of uses including residential, retail, office, and eating and drinking establishments. The Project is compatible with the mix of existing and allowed uses in the immediate area due to its similar hours of operation and being of a convenience nature located in a high-turnover, pedestrian-focused area. 3. The proposed hours of operation are from 7a.m. to 2p.m. and from 5p.m. to 10p.m., daily. Condition of Approval No. 4 limits the allowed hours of operation from 7a.m. to 10p.m., daily, which allows for flexibility and minimizes the potential for disturbances to surrounding land uses. Zoning Administrator Resolution No. ZA2025-056 Page 4 of 9 4. A trash enclosure is not currently provided on-site. Conditions of Approval No. 23 and 24 require the operator construct and maintain a new trash enclosure such that odors are controlled appropriately and that all waste and dumpsters are screened. Finding: D. 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. Facts in Support of Finding: 1. The Property is located on the western end of 31st Street, near the corner of Newport Boulevard and 31st Street. There is heavy vehicular traffic and pedestrian activity on Newport Boulevard. The proposed coffee shop is not anticipated to result in increased vehicular or pedestrian activity, as the restaurant is a take-out operation of a convenience nature. Many of the restaurant patrons will likely be residents, employees of nearby businesses, or visitors already parked in one of the several parking lots within this area of the Balboa Peninsula. In support of this, the Applicant provided observational counts of a similar operation, Alta Coffee, to show how many patrons arrived and which mode of travel they used. The observational counts showed that on a Monday morning from 7:30 a.m. to 11:30 a.m., 68 percent of 93 total patrons walked to the location. 2. The Newport Beach Fire Department (NBFD) has reviewed the Project to ensure adequate public and emergency vehicle access is provided. NBFD accepted the Project as proposed and provided two recommended Conditions of Approval; No. 37 regarding exit signage and No. 38 requiring that the lounge door remain unlocked while the business is operating. 3. The tenant improvement required to convert the space from a retail business to a take- out restaurant shall require a building permit and shall comply with all Building, Public Works, and Fire Codes. 4. The site is physically suitable for the proposed coffee shop, given its location, shape, and size, which previously accommodated retail use which has comparable operating characteristics such as access, parking, and circulation. Finding: E. 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. Zoning Administrator Resolution No. ZA2025-056 Page 5 of 9 Facts in Support of Finding: 1. The Project will add additional food and beverage options to the neighborhood and provide an economic opportunity for the property owner to update the tenant space. The Project includes conditions of approval to help ensure that potential conflicts with the surrounding land uses are minimized to the greatest extent possible. Condition of Approval No. 22 requires the business operator take reasonable steps to discourage and correct objectionable conditions that constitute a nuisance in parking areas, sidewalks and areas surrounding the Property and adjacent properties during business hours, if directly related to the patrons of the establishment. 2. The Applicant is required to obtain Health Department approval prior to opening for business and comply with the California Building Code (CBC) to ensure the safety and welfare of customers and employees. 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 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. 2. The Zoning Administrator of the City of Newport Beach hereby approves the minor use permit filed as PA2025-0115 subject to the conditions set forth 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 call for review is filed with the Community Development Director in accordance with the provisions of Title 20 (Planning and Zoning) of the NBMC. PASSED, APPROVED, AND ADOPTED THIS 11TH DAY OF SEPTEMBER, 2025. Zoning Administrator Resolution No. ZA2025-056 Page 6 of 9 EXHIBIT “A” CONDITIONS OF APPROVAL (Project-specific conditions are in italics) Planning Division 1. The development shall be in substantial conformance with the approved site plan and floor plans stamped and dated with the date of this approval (except as modified by applicable conditions of approval). 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. Material violation of any of those laws in connection with the use may be cause for revocation of this Minor Use Permit. 4. The hours of operation for the establishment shall be limited to 7 a.m. through 10 p.m., daily. 5. The sale, service, or consumption of alcohol shall not be permitted unless a new use permit is approved. 6. The maximum number of seats allowed shall be twenty (20). 7. No outdoor seating beyond the designated patio area shown on the approved plans is permitted without an amendment to this minor use permit or the approval of a limited term permit. 8. All signs shall be in conformance with the provisions of Chapter 20.42 (Sign Standards) of the NBMC. 9. Employees of the restaurant shall not use the alley as a break area or smoking area. 10. Drop-off and pick-up of employes shall be prohibited within the alley. 11. Three parking spaces shall be maintained on site. Parking spaces in a tandem configuration shall be prioritized for use by employees. In the event that the spaces are not occupied by employees, they may be made available for customer or public use. The Applicant shall implement appropriate signage and/or management practices to communicate and enforce this prioritization and to ensure efficient use of on-site parking. 12. This Minor Use Permit shall expire unless exercised within 24 months from the date of approval as specified in Section 20.54.060 (Time Limits and Extensions) of the NBMC, unless an extension is otherwise granted. Zoning Administrator Resolution No. ZA2025-056 Page 7 of 9 13. This Minor Use Permit may be modified or revoked by the Zoning Administrator if determined that the proposed uses or conditions under which it is being operated or maintained are detrimental to the public health, welfare or materially injurious to property or improvements in the vicinity or if the Property is operated or maintained so as to constitute a public nuisance. 14. Any change in operational characteristics, expansion in area, or other modification to the approved plans, shall require subsequent review by the Planning Division and may require an amendment to this minor use permit or the processing of a new minor use permit. 15. Prior to the issuance of a building permit, a copy of the Resolution, including conditions of approval Exhibit “A” shall be incorporated into the Building Division and field sets of plans. 16. The site 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 Director of Community Development, the illumination creates an unacceptable negative impact on surrounding land uses or environmental resources. The Director may order the dimming of light sources or other remediation upon finding that the site is excessively illuminated. 17. Prior to the issuance of a building permit, the Applicant shall pay any unpaid administrative costs associated with the processing of this application to the Planning Division. 18. All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 (Community Noise Control) and other applicable noise control requirements of the NBMC. 19. Construction activities shall comply with Section 10.28.040 (Construction Activity— Noise Regulations) of the NBMC, which restricts hours of noise-generating construction activities that produce noise to between the hours of 7a.m. and 6:30 p.m., Monday through Friday. Noise-generating construction activities are not allowed on Saturdays, Sundays, or Holidays. 20. No outside paging system shall be utilized in conjunction with this establishment. 21. 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. 22. 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 debris and graffiti from the premises and on all abutting sidewalks within 20 feet of the premises. Zoning Administrator Resolution No. ZA2025-056 Page 8 of 9 23. All trash shall be stored within a commercial trash bin with a solid lid kept closed at all times. The commercial trash bin(s) shall be stored within a dedicated trash enclosure on a concrete pad with three walls and a self-latching gate. The trash enclosure shall have a decorative solid roof for aesthetic and screening purposes. 24. The Applicant shall further ensure that the trash dumpsters and/or receptacles are maintained 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). If necessary, the frequency of refuse collection shall be increased to prevent an overflow of trash and/or recycling on-site. 25. Deliveries and refuse collection for the facility shall be prohibited between the hours of 10p.m. and 7a.m. on weekdays and Saturdays and between the hours of 10p.m. and 9a.m. on Sundays and Federal holidays, unless otherwise approved by the Director of Community Development. Delivery vehicles shall not park or idle in the alley adjacent to the site. 26. Storage outside of the building shall be prohibited, with the exception of the required commercial trash enclosure. 27. A Special Events Permit is required for any event or promotional activity outside the normal operational 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 NBMC to require such permits. 28. 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 the leasing agent. 29. To the fullest extent permitted by law, Applicant shall indemnify, defend and hold harmless City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any and all 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 Sundays Coffee & Co. including, but not limited to, the Minor Use Permit filed as PA2025-0115. This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys' fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by Applicant, City, and/or the parties initiating or bringing such proceeding. The Applicant shall indemnify the City for all of City's costs, attorneys' fees, and damages which City incurs in enforcing the indemnification provisions set forth in this condition. The Applicant shall pay to the City upon demand any amount owed to the City pursuant to the indemnification requirements prescribed in this condition. Zoning Administrator Resolution No. ZA2025-056 Page 9 of 9 Public Works 30. The Applicant is required to install a new sewer cleanout on the existing sewer lateral, per City Standard 406. 31. No outdoor dining shall be permitted within the public right-of-way. Building Division 32. The Applicant is required to obtain all applicable permits from the City’s Building Division and Fire Department. The construction plans must comply with the most recent, City- adopted version of the CBC. The construction plans must meet all applicable State Disabilities Access requirements. 33. Approval from the Orange County Health Department is required prior to the issuance of a building permit. 34. Hall widths shall comply with 11B-403.5. of the CBC. 35. An accessible path of travel from public right of way to the tenant space shall be required. 36. Interior spaces with one exit or exit access doorway shall comply with table 1006.2.1 of the CBC. Fire Department 37. The Applicant is required to provide illuminated exit signage at all doors. 38. The lounge door shall be arranged to have no means of locking while the restaurant is open for business.