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HomeMy WebLinkAbout12/03/2009CITY OF NEWPORT BEACH Planning Commission Minutes December 3, 2009 Regular Meeting - 6:30 p.m. ROLL CALL Commissioners Eaton, Unsworth, Peotter, Hawkins, McDaniel, Toerge, and Hillgren - all present. STAFF PRESENT: David Lepo, Planning Director Kyle Rowen, Deputy City Attorney Tony Brine, City Traffic Engineer Erin Steffen, Planning Technician Jim Campbell, Senior Planner Melinda Whelan, Assistant Planner Ruby Garciamay, Department Assistant PUBLIC COMMENTS: PUBLIC COMMENTS None POSTING OF THE AGENDA: POSTING OF THE AGENDA The Planning Commission Agenda was posted on November 25, 2009. HEARING ITEMS ITEM NO. 1 SUBJECT: MINUTES of the regular meeting of November 19, 2009. Approved Motion was made by Commissioner McDaniel and seconded by Commissioner Peotter to approve the minutes as written. Ayes: Eaton, Unsworth, Peotter, Hawkins, McDaniel, Toerge, and Hillgren Noes: None I Abstain: None .a= SUBJECT: Ong Parking Waiver (PA2009 -059) {TEM NO. 2 333 Old Newport Boulevard PA2009-059 A use permit application to waive 3 additional off - street parking spaces required for the conversion of 3,061 square -feet of retail space to medical office in an existing multi- tenant building. Jim Campbell, Senior Planner, gave a brief overview of the staff report and diariicced the followina issues: NEWPORT BEACH PLANNING COMMISSION MINUTES 12/03/2009 • The building does not provide parking. • All of the parking that abuts the building site is located within the public right -of -way. • There are a total of 45 public parking spaces as shown in Exhibit 1 of the staff report. • The change in use increases the parking requirement to three parking spaces. • Application necessitates a parking waiver; however staff is recommending against waiver. • There is one condition of four that needs to be met as outlined in detail in staff report. • Condition 1, the presence of a municipal parking lot, is one factor that could support project approval; however staff wanted to look more closely at the availability of parking in the parking lot in order to make sure the parking lot could be considered "useful ". • Staff is concerned about unavailable parking spaces due to uncertain parking demand based on future operator characteristics, uses of the building and the surrounding buildings. • The applicant has indicated his willingness to abandon the existing use permit for a small restaurant if this is an important consideration for the Planning Commission to approve his application. • The restaurant use requires eight parking spaces and per the Zoning Code this would free up one parking space. • If the unit were converted to retail or office, which is the lowest parking generator that might go in there, seven parking spaces would be required. • The change in the use could have a diminished parking demand, especially during meal time. Commissioner Unsworth asked Mr. Campbell if the total number of parking spaces available for the building included the 29 public spaces, plus the 12 spaces on Old Newport Boulevard and what would the Zoning Code require. Mr. Campbell stated that the parking does not satisfy the off - street parking requirement of the Zoning Code. The Zoning Code would require 42 spaces and there are 45 spaces currently available. Commissioner Unsworth asked if the 45 spaces are available to the general public. Mr. Campbell confirmed that the 45 spaces are public and stated the following • An additional disabled parking space in front of the building would result in a loss of one space. • The four "unmarked" spaces would be striped but their orientation is not optimal and would require people to back straight onto the street at an angle and the Public Works department is not in support of this. • Whether the application goes forward or not, maybe the City would consider future restriping of those four spaces; however, they would be Page 2 of 18 NEWPORT BEACH PLANNING COMMISSION MINUTES restriped for parallel parking, creating only 3 spaces. . Two parking spaces would be lost if they proceed forward leaving 43 spaces available. Commissioner Unsworth asked if there was a chance that the City will ever want to take advantage of its right -of -way where the 12 spaces are located. Tony Brine, Traffic Engineer, stated that there are no plans right now for widening Old Newport Boulevard including intersections and turn lanes. Commissioner Hillgren asked the following to get a sense of the general parking demand for the area: • Does the lot serve multiple buildings. • Do the other buildings located in the area have similar programs where they do not have their own parking and are reliant upon a municipal lot or are they all self contained. • He questioned the vacancy factor in the area and how the occupancy affects the parking demands of the lot. Mr. Campbell stated the following: • The lot serves the public, principally to the benefit of the applicant's building given the proximity. • He did not know what private arrangements the surrounding buildings had nor was he aware of any contractual arrangements that the City has granted for the use of the spaces. • There are some non - conforming buildings across the street that do not provide all the required parking and this may be why people are parking in this lot and walking across the street. • A good survey or any hard data of the vacancy in the area is not available. • Staff requested a vacancy survey be included in the last survey that was prepared by the applicant's traffic engineer; however, this information was not provided. • Staff may have supported the application and not recommended denial if the survey information was provided. Commissioner Hillgren asked Mr. Campbell if staff were presented with the survey information by the applicant would the recommendation have change to approval from denial. Mr. Campbell stated that it was possible but not guaranteed. Commissioner Peotter asked the following: • If the Curves health club was operating as a physical therapy facility. • What is the parking ratio required by code. • If the conditional use permit for Curves allows a health club or more of a amount of 12/03/2009 Page 3 of 18 NEWPORT BEACH PLANNING COMMISSION MINUTES 12/03/2009 so the parking requirements are not based on the parking code for health clubs. If staff is assuming that everyone is driving their own car even though the parking code does not assume this for a typical office. Erin Steffen, Planning Technician, answered: • The facility is limited to a maximum number of eight employees and patrons before 4:00 pm. • They can increase their occupancy up to 12 after 4:00 pm. • The parking requirement is not based on the parking code for a health club. • The eight parking spaces would be sufficient based on the maximum number allowed before 4:00 pm. Commissioner Unsworth made reference to the property adjacent to the immediate north that was subject to development, but was stopped, and in anticipation of the development the property became substantially vacated and is currently under parked. Assuming the project does not go through he asked if the property were to fill up again with tenants would the 29 spaces be used by those tenants. Mr. Campbell stated that it is possible and the building is not entirely vacant. Commissioner Eaton asked why the parking code only requires one additional space for the restaurant when a restaurant could have a higher occupancy. Mr. Campbell stated that the required parking for the restaurant is based on the number of seats (1 space for every 3 seats). There are 24 seats which necessitates 8 spaces. Seven parking spaces are required for the existing retail space based on gross floor area of the suite at 1 space for each 250 square feet. Commissioner Peotter asked how the sum total of spaces is determined in a mufti- tenant commercial building. There was a general discussion of how parking spaces are tabulated and the Zoning Code has a rule that a fraction of a space is rounded up. Commissioner Peotter indicated that the total shortfall is only one space if you only round the sum total rather than rounding the individual tenant spaces before adding them to determine the total parking requirement. Mr. Campbell answered that this method of calculation could be done, but that it has not been the Department's past practice. Chairman Hawkins asked staff to look into those calculations and see what they come back with. Public comment was opened. Dr. Hung Ong, applicant and owner, presented a slide show to discuss why the medical use should be permitted. Hard copies of the presentation were distributed to the Planning Commission and the following was discussed: Page 4 of 18 NEWPORT BEACH PLANNING COMMISSION MINUTES 12/03/2009 • A brief overview of the surrounding buildings was given. • A reference to the building adjacent to the north was made: o The building was going to be demolished and a new building constructed; however, project is presently on hold. c Per the leasing agent the building is currently leased at 14,000 square feet out of 16,000 square feet. • He discussed how each condition of Section 20.66.100, referenced in the staff report, satisfies and supports application approval. • It was confirmed that one or more conditions must be met. • Condition one was satisfied by municipal parking lot being adjacent to the project site. • Based on two surveys condition two was satisfied: • The availability of maximum parking demand for medical use was met. • The highest number of parked vehicles of all the lots was 35 around noon and the second survey indicated 34 around 11:30 to noon. • Eight spaces were available during peak hours. • Three spaces are needed for medical use conversion. • Condition three was not applicable. • Condition 4a was met based on 12 parking spaces necessary for both patients and staff where code requirement is 16 spaces. • Condition 4b was met based on the maximum parking demand for the proposed medical use and the determination of future parking requirements is based on previous experience of all types of medical use. • The owner offered to give up the restaurant use based on the Planning Department's concern that the restaurant use may utilize more parking when busy. Commissioner Hillgren asked how occupied was the building when the study was done. Dr. Ong stated that all five units of the building were fully occupied and referenced a table, provided by Ms. Steffen, of Section 20.66.030 of the parking code that gave a break down of the existing proposed parking requirement. Commissioner McDaniel asked Dr. Ong if his future plans are to make the entire building medical office. Dr. Ong stated that he only currently needs the two available spaces Commissioner Toerge asked Dr. Ong the following: • In reference to the plans does he plan to occupy this as one office. • Why are there two reception areas and two wading rooms separated by the restroom and corridor. • Will entire upstairs be converted to medical office. if he gives up the restaurant use which is not part of the plans that were presented to the Commission. Dr. Ong answered: Page 5 of 18 NEWPORT BEACH PLANNING COMMISSION MINUTES 12/03/2009 • Yes, that he plans to only occupy one office_ • Spaces are separated for patients who just had a procedure done and the other area is for patients who do not have any wounds on their face. • He asked for the upstairs portion because he was concerned about getting future funding for the project at a later time and the time that it would take to go through the process again. Commissioner Eaton asked Dr. Ong how much additional square footage was required if he were able to let go of the restaurant on the third floor. Dr. Ong answered 871 square feet. Commissioner Eaton asked what the .difference was between conventional parking and medical use for the 871 square feet. Dr. Ong answered that four spaces are required for retail use and five spaces are required when you convert it to medical use. Commissioner Eaton asked staff if this matter was advertised very specifically as to what the applicant originally requested. Ms. Steffen answered the additional square footage was not addressed. Mr. Lepo added that the notice was very specific and the request was to convert 3,061 square feet and it did not include any additional square feet. Commissioner Unsworth asked staff to address his concern on the 29 public parking spaces allocate to this particular project: • What if someone else across the street wants to utilize these same public spaces because they are adjacent and are useful to their project. • It seems like a de facto dedication of parking spaces to private property is being made. • Can somebody from across the street say that the 29 spaces are part of the 43 parking spaces required for their project. • Would those parking spaces be considered "useful ". • How many times can 100% of those parking spaces be used to support a use permit. Mr. Campbell answered with the following: • The spaces are not being dedicated to the building. • Staff does not know what the long term occupancy for these spaces would be, which is why staff is hesitant to recommend approval. • If there is an increased demand for those spaces it would potentially deprive the other properties. • The spaces could be considered useful because they are close. • An applicant from across the street can ask for a parking waiver and their project would be presented to the Commission for the same Page 6 of 18 NEWPORT BEACH PLANNING COMMISSION MINUTES 12/03/2009 Staff would look at all these factors again in relation to the change in intensity and use. Commissioner Unsworth stated that if an application were denied there would be a de facto dedication to the current project. Mr. Campbell answered this is definitely a consideration. Mr. McDaniel expressed the following concerns: How did we get a building that has no parking spaces and does staff recall how this happened. The building has free parking where everybody else is paying for their parking. Mr. Campbell stated he did not have the full history of the building, which is a very old building. Commissioner Toerge had the following comments to Commissioner Unsworth's statements pertaining to the public parking: • If the circumstances suggested by Commissioner Unsworth were to come about, it is presumed that a potential applicant would be asked to do the same kind of parking study and evaluation. • If adequate parking is not provided then the application would not be granted. • To suggest that we dedicated the parking is a little unfair. • A potential applicant would make the assumption that it has already been dedicated to some other building and the Commission would deny this application based on the same assumption. • A similar evaluation would have to take place and a decision could be made at that time based upon its merits just like we are asked to do now. Dr. Ong responded: The parking spaces are already somewhat dedicated and are allowed through the existing use permit for the restaurant and for Curves He is somewhat trading the uses that have already been established. Keven Quick, real estate agent, stated the following: • The adjacent building to the north is occupied and there are a couple of upstairs offices where parking is not offered. • The leases have a restriction where tenants are only allowed to have one parking spot. Commissioner McDaniel asked why parking was not provided for the applicant's building. Mr. Quick answered, based on his research: Page 7 of 18 NEWPORT BEACH PLANNING COMMISSION MINUTES 12/03/2009 • When Hospital Road came in the lots got shifted and the parcels were moved. • If you look at the original parcel it was a diamond shape and it was very big at one time. • It went from a 9,000 square foot building on a 5,000 square foot lot. • He didn't know if those buildings were built before the parcels were moved. • The medical condos constructed up street have a 4 to 1 parking ratio. The building sold out and the parking lot is wide open everyday. • They are so land locked over there the 5 to 1 parking ratio is tough. Commissioner Hillgren asked if he is leasing some buildings across the way and giving them one space per tenant and where were they located. Mr. Quick confirmed that he was leasing at one space per tenant and the buildings were located at 349 through 373 Newport Boulevard and added the following: • There is about 9,000 square feet of retail of space. • There are 9 units that run from 900 to 1200 square feet. • Because of his parking requirements he cannot place tenants that are going to have a high parking ratio. • He thought that most of the tenants are not going to make it if the city tries to put a high parking ratio in there. Commissioner Hillgren asked Mr. Quick the following: • Why does he only allow one space for someone who has 900 square feet. • What does the tenant do with visiting clients. • Would he change the buildings in the area to medical use if he was able to. • Parking demand would increase if retail and office uses were converted to medical office use. Mr. Quick answered: • He has a 17,000 square foot building with 17 parking spaces in front of his building which is why the parking restriction is placed on each lease. • There is a lot of street parking in the area. • Customers will usually park across the street. • Some parking is located on site. • Medical office use is limited in the area right now. • The existing buildings would not be converted to medical, but built from the ground up for a 5 to 1 ratio and parking would have to be located on site. Public comment was closed. Commissioner Unsworth commented that Page 8 of 18 NEWPORT BEACH PLANNING COMMISSION MINUTES 12/03/2009 Planning Department's process when determining if public parking located close by is useful and expressed his concern again with 100% of the available public parking spaces being used to satisfy the need of a building that has no parking. Chairman Hawkins stated that Commissioner Unsworth may have addressed a shortcoming of the current code that may need to be remedied. Commissioner Toerge asked staff if there are any widely known public uses around the area that would compel people to park on the lot other than people that are going to the buildings. The municipal parking lot is for public parking and thought it was an appropriate use for the buildings in the area. Also, if these buildings were not allowed to use this parking lot it might as well be vacant all day. Commissioner Peotter asked staff if a motion was made to approve the application with the condition of the restaurant being converted to retail /office use would a resolution be prepared by staff and presented to the Commission at the next meeting. Mr. Lepo stated, subject to the Deputy City Attorney's approval, the condition for the applicant to give up all rights to the use permit for restaurant use could be added to the resolution. Kyle Rowen, Deputy City Attorney, stated this would have to be renoticed and stated that the condition would require the applicant to give up the restaurant use and then convert the 871 square feet to medical /office use. Commissioner Peotter stated that he was not asking to convert the 871 square feet to medical /office use. He was proposing to convert the 3,061 to medical and convert the restaurant to retail /office. He also indicated that a resolution for approval was not included in their packet. Mr. Rowen stated that the Commission could direct staff to come back with a resolution that would reflect the approved motion of the additional conditions and the resolution could be approved at the next Planning Commission meeting. Commissioner Peotter stated if the Commission was in agreement with the additional conditions he was prepared to make a motion. Motion was made by Commissioner Peotter and seconded by Commissioner Hillgren directing staff to return with a recommendation of approval, conditioned appropriately, including the added condition that the restaurant.be converted back to retailloffice. Commissioner McDaniel stated he was having a problem with the free parking and other issues and he would not support the motion. Commissioner Unsworth stated that it would be very hard to vote for this motion and asked for clarification of square footaae for the restaurant. Page 9 of 18 NEWPORT BEACH PLANNING COMMISSION MINUTES 12/03/2009 Mr. Campbell stated the restaurant was1,564 square feet. Commissioner Unsworth stated the following: • If he were to try and approve this motion he would want a portion of the 1,564 square feet to be cut down because it seems like a lot of square footage for the amount of parking required. • The parking lot would be used a lot more by the public if they knew it was a public parking lot. • He was concerned that the building was using public property exclusively for one piece of property. Chairman Hawkins noted that Commissioner Unsworth was about to make a substitute motion if a portion of the restaurant space were converted to storage for the office uses and asked staff if this would effectively take out the parking demand. Mr. Campbell stated that this might diminish parking demand if the square footage were reduced, however the Zoning Code does not calculate storage space for office use and does not require parking. Chairman Hawkins further noted in reference to Commissioner Unsworth's suggestions: • The proposal is to convert restaurant use to retail /office. • Applicant is proposing to release the restaurant use. • If the applicant releases the retail us, that square footage will be part of the office use; however this would still increase the parking demand. • Commissioner Unsworth was not in agreement with these conditions. Mr. Campbell stated that the parking requirements would be the same by code though retail and office have different parking demands and it might be less. Commissioner Eaton stated he was in agreement with the motion made by Commissioner Peotter and confirmed that the motion did not include converting the 871 square feet to medical /office use but did include a condition that the restaurant be converted back to retail /office. Ayes: Eaton, Peotter, Hawkins, Toerge and Hillgren Noes: Unsworth and McDaniel Absent: OBJECT: Panini Garden Bistro, Ten Asian Bistro, and Red Night Club - PA200 ITEM N6.3 115 PA2008 -207 4647 MacArthur Boulevard A request for an amendment (Amendment No. 2) to existing Use Permit No. UP2002 -040 to extend the hours of food service for two full -service restaurants, Panini Garden Bistro and Ten Asian Bistro, until 4:00 a.m. Additionally, the Page 10 of 18 NEWPORT BEACH PLANNING COMMISSION MINUTES amendment includes the request for the addition of as -built male and female restroom facilities (403 square feet) within the Red Night Club area. Melinda Whelan, Assistant Planner, gave a brief overview of the staff report and noted the following: • The applicant proposes extended food service hours for both Panini Garden Bistro and Ten Asian Bistro from 1:00 am to 4:00 am. • Approve revised floor plan for the Red Night Club to accommodate restaurant facilities addition. • Panini Garden Bistro has exercised a temporary use of extended food service hours from September 4, 2009 through December 2, 2009 with no reported problems by the Police Department. • Staff believes that the facts are present to support the findings for approval for the extended food service hours for Panini and inclusion of the restroom facilities addition into the floor plan for the Red Night club. • Staff believes that the facts are present to support the findings for denial for the extended food service hours for Ten Asian Bistro Commissioner Hillgren asked the following: • Why didn't the applicant exercise the extended food service hours to 4:00 am when initially granted by the Planning Director. • Was this a temporary accommodation to get a chance to see how the extended hours would work. • Why were the restrooms built without a proper permit. • Who is being accommodated by the extended hours from 1:00 am and 4:00 am. . The primary uses in the area are the airport and surrounding office buildings. Chairman Hawkins suggested the question about the restroom facilities be answered by the applicant when it was their time to speak. Ms. Whelan answered: • There was a change in ownership and the new owner was not aware of the opportunity to extend the food service hours and therefore lt expired. • The temporary accommodation was granted both times to see how the extended hours would work. • People from the dub could be accommodated by Panini and maybe visitors who are staying within the hotels in the surrounding areas. Commissioner Unsworth asked the following: • The club currently operates on Thursday, Friday and Saturday. Is it the owner's choice to operate for only three days. Per condition 15 the facility can operate daily. • Are statistics available on the percentage of alcohol sales to the percentage of food sales and does this apply to all three establishments. 12/03/2009 Page 11 of 18 NEWPORT BEACH PLANNING COMMISSION MINUTES 12/03/2009 • Does the Club have a different license that doesn't require a majority of their receipts to be generated from the sale of food. • Did the reports show that more than 50% of income was derived from food. Ms. Whelan answered: • The Club can operate daily per the original use permit. • Condition No. 33 requires both restaurants to have a greater percentage of food than alcohol sales. • The Club is not required to have a higher percentage in food sales. • A November report on food and alcohol sales is available and the applicant had also provided a quarterly report which indicates that more than 50% of the income was derived from food. Chairman Hawkins asked the Police Department the following questions based on a Police Department staff report reporting several calls for service: • There were two calls for service on a hookah lounge and would this be problematic if the hours were extended from 2:00 am with alcohol and to 4:00 am without alcohol. • Were any illegal substances being smoked. Sergeant John Freeman, Newport Beach Police Department answered: • The hookah lounge operated without a use permit to permit the hookah smoking inside the restaurant. • No illegal substances were being smoked inside the restaurant; however the marijuana drug use was located in the parking lot. Commissioner Unsworth asked the following: • The Police and staff report reads that if patrons had to exit the two facilities and walk around the parking lot and go through a dedicated entrance of Panini the Police Department would have better control of the situation. Sgt. Freeman answered that this was an important issue to the Police Department. Commissioner Peotter noted the concerns of the Police Department regarding the sushi bar becoming part of the club before 2:00 am. Sgt. Freeman answered yes and stated the Police Department had additional concerns: • In his experience an increase of people in one place may increase police response and it is magnified at night when the people have been drinking. • This is the why the Police Department is not opposed to Panini that is separate from the night club. • Panini is smaller and located on the end so people have to leave the night club and walk around_ Page 12 of 18 NEWPORT BEACH PLANNING COMMISSION MINUTES 12/03/2009 • The club and sushi restaurant are only separated by a folding door. • The Police Department is concemed that the area is going to turn into an after hours night club without a separation between the restaurant and the club. • Several other clubs are located in the area and there could be an increase in use once people become familiar that these facilities are open. Commissioner Peotter noted that Ten restaurant is open until 1:00 am and serves alcohol until that time and asked if the following were additional concerns of the Police Department: • Based on the floor plan, whether the sliding door is kept closed or not, the restaurant will be able operate one more hour with the Club by extending the restaurant hours from 1:00 am to 4:00 am. • Would the extended food service reduce the number of service calls and minimize DUI's if people stayed from 2:00 am to 4:00 am without any drinking and allowing people to dry out. Sgt. Freeman answered: • With responsible service drying out would not be an issue. • There were 83 calls for service received for a period of 9 1/2 months in the area alone and could see how continuing the hours of the restaurant for two hours could increase the number of service calls. Commissioner Peotter asked if the number of service calls was considered high or low for a facility like this. Chairman Hawkins added because of this being a new use, is this an extraordinary number of calls for a nine month period of time. Sgt. Freeman answered he believed so, but was not in a position to give an accurate answer because he didn't have statistics from other facilities. Mr. Lepo stated the following: • From his understanding it was the critical mass of people on one site that the Police Department was concerned about. • There would be too many people who have been partying too long for the police to try and control. • Panini was ok because there would be a limited number of additional people till 4:00 am. • The Police Department could end up being severely strapped where the Irvine Police Department would have to provide back up to that area. Commissioner McDaniel stated the following: Isn't it more of a concern on what goes on outside in the parking lot. His concern was the people who have already been drinking and congregating at the lot. There could be fist fights and all sorts of things could haooen. Page 13 of 18 NEWPORT BEACH PLANNING COMMISSION MINUTES 12/03/2009 • Allowing this extension would put a bulls eye on one part the City telling everyone to come down and party until 4:00 am because it's legal to be there until 4:00 am. Sgt. Freeman answered that those were the same concerns of the Police Department. Detective Dave Stark, Newport Police Department, wanted to clarify the following concerning the questions on the door and the after hours club: • The plans state that they will actually want to keep the door open to have people fie right through but where does it say they are going to close them. This is where the department has concerns about the after hours. • The doors could be left open and extending their overall use of basically everything given the opportunity. • The after hours club would be a contiguous large space where you have a kind of aftermath bleeding right through into one problem. • The biggest thing that clears out the bars is the hammer of ABC and believes they would stop serving alcohol in fear of losing their alcohol license. • The amount of people was a separate issue. Chairman Hawkins asked if the Panini option did not allow that bleed through affect. Detective Stark answered absolutely. Toufie Sarwan, General Manager for Ten Restaurant Group, noted the following: • The idea to have an after hours facility was strictly for financial reasons due to the severe decrease in business. A decrease of about 63% over the last couple of years. • Generally most people want to go somewhere to eat after they have been drinking and the applicant realized they could capitalize on the two restaurants. • The owner follows the strict rules on the closing hours for the club. • They are over the quota that is required by the Police Department of how many security personnel are required on the premises. • The parking lots are constantly scanned to make sure there is as little congregation as possible throughout the night especially after midnight. • When the after hours for Panini was granted, they followed the strict rules of how many security personnel should be on the premises. • The increase in revenue has helped pay for expenses such as labor and other expenses. • The combined square feet of Ten and Panini is smaller in square footage than the night club by about 4,700 square feet. • Patrons don't have to come through the sliding door that the Police Department is concerned about. if they need to bring people through the front like they do for Panini right now they are totally fine with that. • If somebodv is intoxicated thev are walked over to Panini and are offered Page 14 of 18 NEWPORT BEACH PLANNING COMMISSION MINUTES 12/03/2009 food and a drink. In regards to the question about the percentages of food versus alcohol, they are in the ratio where more food is served than alcohol sales. A quarterly report to show the exact numbers is available. Chairman Hawkins asked what those numbers were in terms of percentages. Mr. Sarwan answered Ten restaurant's percentage of food versus alcohol right now is 37% of alcohol versus food. Panini is 7.45% alcohol versus food and the club is 87.5% in alcohol. Commissioner McDaniel asked: • What were the operating hours of Panini. • When did the facilities open. • Did the 63% decrease in business begin in 2006. Mr. Sarwan answered: • Panini operates Monday through Wednesday from 7:00 am to 4:00 pm and reopens for business at 5:00 pm until 10:00 pm. • Panini operates until 4:00 am, Thursday through Saturday. • Mr. Sarwan confirmed that the dub hours were from 9:00 pm till 2:00 am, Thursday through Saturday. • The facilities opened in 2005 and the operation did very good the first couple of years and since late 2006, early 2007 they started suffering financially. Chairman Hawkins asked Mr. Sarwan to confirm what time Panini and Ten currently close when the dub is operating. Mr. Sarwan answered: • On dub nights, Panini closes at 4:00 am based on the temporary use permit and sometimes they close earlier. • Ten closes at 11:00 pm on Thursday, Friday and Saturday. Commissioner Unsworth asked if any statistics or projections were available to show how much of an increase in revenue there would be if Ten were to be kept open during the same hours of Panini. Mr. Sarwan answered Panini is around $14.00 a person and the average ticket for Ten is about $35.00 a person, not counting alcohol. They were hoping to increase their sales by $80,000 to 90,000 dollars a month just from those three nights of operating based on Ten alone. Commissioner Unsworth asked if they were to close the sliding door people could . still walk outside and access Ten from a separate dedicated entrance. Mr. Sarwan answered that the entrances are right next to each other and Ten is much easier to access than Panini. Page 15 of 18 NEWPORT BEACH PLANNING COMMISSION MINUTES 12/03/2009 Commissioner Unsworth noted that at the appropriate time he would like the Police Department to comment on the separate entrance. Public comment was open. Robert Leck, General Manager of the Radisson Newport Beach and Vice President of Pacific Hotel Management Company, stated the following concerns: • After hour parties are the hottest new craze in night clubs. • The Police Department has been called a few times for noise disturbance such as music from the club when the doors are left open, the clientele and the music vibrating the entire building from car stereo speakers. • The hotel is located across the street with 335 units and during Friday and Saturday, specifically, eight to nine months out of the year the hotel has about 95% to 100% occupancy. Commissioner Unsworth asked if the sliding door between the club and Ten were to remain closed and people were required to walk out of the club to reenter through the outside entrance would this be acceptable or was it the critical mass of people that could build up that concerns the Police Department. Sgt. Freeman stated the concern was the ability to open the doors and because of the strict rules of ABC he didn't see this happening; however he did see the opportunity for ft. These places often change hands. Mr. Sarwan added that he met Mr. Robert Leck about two weeks ago for the first time who informed him that some of his hotel patrons complained about loud noise or music during the weekend. He asked Mr. Leck to contact him anytime and that they would take care of the situation right away. This was the first and only time he heard from Mr. Leck. In regards to Detective Stark's comment about their alcohol license they do not let the patrons drink a minute past the closing time. They are very concerned about losing their livelihood which is their liquor license and without it they could not operate. Public comment was closed Chairman Hawkins and Commissioner Unsworth asked the Planning staff if there was a condition requiring a two year review by the Planning Commission. Mrs. Whelan answered that there was not. Commissioner McDaniel stated he didn't think this was a good idea and he would not be able to support the approval of this request. Commissioner Hillgren shared Commissioner McDaniel's concerns, particularly when looking at the General Plan requirements. The uses are to support the John Wayne Airport and the surrounding airport area and the Commission heard from one of the major users that the extension of hours is a challenge. Page 16 of 18 NEWPORT BEACH PLANNING COMMISSION MINUTES 12103/2009 Commissioner Peotter asked Commissioner Hillgren and Commissioner McDaniel to clarify if they were not in support of keeping Panini open from 1:00 am to 4:00 am or were they not supporting Ten being open from 1.00 am to 4:00 am. Or were they not in support for both facilities. Commissioner McDaniel didn't think any of the facilities needed to be open until 4:00 am and it wouldn't support anything positive. Commissioner Hillgren stated that it might be acceptable if Panini was the only restaurant open where patrons would have to exit the club and walk around to access the main. entrance of Panini; however, he was concerned that people would start milling in the parking lot as opposed to moving towards Panini. He didn't see what the ultimate benefit would be. Commissioner Eaton stated that he was prepared to support the extension of hours for Panini but not Ten. The temporary permit has been in effect for a couple of months and the Police Department was prepared to support the extension. Motion was made by Commissioner Eaton and seconded by Commissioner Toerge to adopt a resolution approving Amendment No. 2 to Use Permit No. UP2002 -040 for the extended hours of food service for Panini Garden Bistro and the inclusion of a restroom facilities addition into the approved floor plan for the Red Night Club; and, deny extended hours of food service for Ten Asian Bistro. Substitute motion was made by Commissioner Unsworth to add a condition to require a two -year review by the Planning Director. Commissioner Eaton and Commissioner Toerge accepted the amendment. Chairman Hawkins stated the motion has been amended to include a two -year review. Mr. Rowan noted the applicant's business plan proposed to offer a reduced menu service or an appetizer based meal from 1:00 am to 4:00 am for the facility that is going to be open during that time; however, Condition No. 22 specifies that the facility shall offer a full menu service. The condition would have to be amended to allow the reduced meal service. Chairman Hawkins asked if the maker of the motion wants add another amendment to the motion. Commissioner Eaton felt that condition was appropriate Chairman Hawkins stated that full meal service would be required from 1:00 am to 4:00 am. Ayes: Eaton, Unsworth, Peotter, Hawkins and Toerge Noes: McDaniel and Hillgren Excused:1 None Page 17 of 18 NEWPORT BEACH PLANNING COMMISSION MINUTES 12/03/2009 NEW City Council Follow -up — None Planning Commission reports — None Announcements on matters that Commission members would like placed on a future agenda for discussion, action, or report — None Requests for excused absences — None ADJOURNMENT: 8:39 p.m. CHARLES UNSWORTH, SECRETARY CITY OF NEWPORT BEACH PLANNING COMMISSION Page 18 of 18