Loading...
HomeMy WebLinkAboutMosun of Newport Beach (PA2002-193)CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT Agenda Item No. 4 May 8, 2003 TO: PLANNING COMMISSION FROM: Gregg B. Ramirez, Associate Planner (949) 644 -3219, gramirez _citynewport- beach.ca.us SUBJECT: Mosun of Newport Beach, 4647 MacArthur Boulevard Use Permit No. 2002.040 (PA2002 -193) Request for a Use Permit to allow two (2) full service restaurants and a nightclub /multiple use venue with dancing and live entertainment and to authorize the on -site sale of alcoholic beverages pursuant to the Alcoholic Beverage Ordinance (ABO). The application also includes a request to waive a portion of the required off - street parking. APPLICANT: Bret Carman for Mosun of Newport Beach RECOMMENDATION: Staff recommends the Planning Commission approve Use Permit No. 2002 -193 with a modification of the applicant's request subject to the findings and conditions of approval included within the attached draft resolution. DISCUSSION: Site Overview: The proposed project is located in an existing retail /business center on the westerly side of MacAruthur Boulevard between Birch Street and Campus Drive. The total project site is approximately 3.2 acres with the proposed project occupying an existing 17,650 square foot, two -story restaurant building. Other structures on the subject property consist of a two -story 11,142 square foot general commercial building and a single story 6,464 square foot commercial /retail building. A total of 193 parking spaces are provided on site. The proposed project will occupy tenant space formerly occupied by a Coco's restaurant (including product development facility), which has recently closed, and Tibbie's Music Hall, which closed several years ago. Mosun of Newport Beach May 8, 2003 Page 2 MUbUN OF NEWPORT BEACH 4647 MacArthur Boulevard To the north: 1` ls;l To the east: General office To the south: Radisson Hot( I , Ii ,Ill¢il ql �]ry�I,1, 7�iJl r I+ I I �i IlJ SUBJECT PROPERTY j II I 7 ,I 1I I{ li III ii ^� ,' IIiI� 111 Ili. ,I ' ���, 'u II { I {I�� Ilhi 7111 +Iaip1 , I,I I . II 11' VII . i I I ,,uIII I , 91 i 4 a1 S LL fli II t, 1111 I �� II 1j� iii ri i,,'I7 X71 it II {111 MUbUN OF NEWPORT BEACH 4647 MacArthur Boulevard To the north: General office To the east: General office To the south: Radisson Hot( To the west: General office M 100 Feet Project Overview: The proposed project consists of two restaurants and a nightclub /multi- purpose venue with shared kitchen and storage facilities. The applicant is proposing to eliminate approximately 1,800 square feet of the existing 2,400 square foot second floor to open the structure up with vaulted ceilings. The remaining 600 square feet of the second floor will be used for storage. The resulting combined area for the entire project is approximately 15,850 square feet. Additional construction includes four new outdoor dining /patio areas and exterior architectural improvements. The applicant intends to Mosun of Newport Beach May 8, 2003 Page 3 purchase the existing ABC license (Type 47, On -Sale General) from Coco's although a Type 48 license may be required for the nightclub. The California Department of Alcoholic Beverage Control will make this determination after the applicant submits an application to them and they have the opportunity to review the floor plans. Although each of the three establishments will be interconnected and operated by the same ownership, the proposed operational characteristics for each differ. Panini Mediterranean Cafe Panini Mediterranean Cafe occupies the easterly portion of the structure formerly occupied by Coco's Restaurant and consists of approximately 1,400 square feet of interior net public area. The interior consists of traditional dining room seating (40 portable /15 fixed seats) and bar (10 seats). Additionally, Panini has two separate outdoor patios totaling approximately 1,013 square feet (476 square feet and 537 square feet, respectively) with a total of 52 seats. Panini is proposed to be open for breakfast, lunch and dinner with business hours of 7 A.M. to 1 A.M. daily. Full meal service will be available during all hours of operation and alcoholic beverage service (Type 47 ABC license) is requested. Mosun Sushi Mosun Sushi occupies the middle portion of the structure and is comprised of approximately 3,000 square feet of net public area divided between a main dining room and a separate cocktail lounge. The main dining room is approximately 2,400 square feet of net public area and includes a sushi bar. Proposed dining room seating is in the form of 45 portable seats and 24 fixed seats with an additional 24 portable seats at the sushi bar. The remaining 600 square feet of net public area is comprised of a small cocktail lounge. Seating for this area consists of 14 portable seats, 6 fixed seats at tables and 10 portable seats at the bar. Additionally, a 527 square foot outdoor patio with 32 portable seats and a 371 square foot exterior waiting and cocktail area is proposed. Mosun Sushi is proposed to be open for lunch and dinner daily from 11 A.M. until 1 A.M. Full meal service will be available during all hours of operation and alcoholic beverage service (Type 47 ABC license) is requested. Club M /Multi Purpose Venue Club M is a proposed nightclub and multi - purpose assembly facility. The requested hours for the nightclub are 9:00 PM to 2:00 AM daily, although the applicant has indicated that the nightclub would typically be open Friday and Saturday nights with occasional or seasonal hours Sunday through Thursday. Club M is comprised of approximately 3,586 square feet of net public area that includes a 650 square foot dance floor. The only proposed seating for Club M is 17 portable bar seats. Additionally, the applicant proposes a 1,200 square foot exterior patio in space currently occupied by a loading dock adjacent to Club M with 36 portable patio seats. The California Mosun of Newport Beach May 8, 2003 Page 4 Department of Alcoholic Beverage Control will determine the type of ABC license required when the applicant formally applies. The applicant also proposes to use the area occupied by Club M as a venue for special events (banquets, weddings, concerts, fashion shows, holiday parties, etc.). The applicant has requested that the events be permitted at any time between the hours of 6:00 AM and 2:00 AM daily. This multi - purpose venue setup could accommodate 118 portable seats and the use of moveable partitions is proposed to create three separate banquet rooms. The table below provides a summary of basic operational characteristics. PROJECT CHARACTERISTICS (Table 1) * Outdoor dining area in excess of 25% of interior net public area is not considered accessory and must be added to the interior net public area and used in required parking calculations. ** Total does not include Multi -Use Venue Analysis: The proposed eating and drinking establishments and nightclub require approval of a use permit for the use, alcoholic beverage service (ABO) and a waiver of a portion of the required off - street parking space requirements. General Plan The Land Use Element of the General Plan designates the project site as Administrative, Professional and Financial Commercial. Restaurant and nightclub uses with on -site alcoholic beverage service and consumption are permitted uses in the Administrative, Professional and Financial Commercial land use designation. Hours Net Public Patio Net Public Seating Occupancy (Daily) Area Area Area Interior /Exterior (Estimated) Interior (Total)* Panini 7:00 AM — 1,401 sq ft. 1,013 sq. 2,064 65152 160 1:00 AM ft. Mosun 11:00 AM — 2,982 sq. ft. 898 3,353 125/32 258 1:00 AM Club M 9:00 PM — 3,586 sq. ft. 1,200 sq. 4,786 17/36 367 2:00 AM ft. Multi- Varies 3,586 sq. ft. 1,200 sq. 4,786 118/36 308 Use (6:00am — ft. Venue 2:00am Total ** 7:00 AM — 7,969 sq. ft. 3,111 10,203 2071120 785 2:00 AM * Outdoor dining area in excess of 25% of interior net public area is not considered accessory and must be added to the interior net public area and used in required parking calculations. ** Total does not include Multi -Use Venue Analysis: The proposed eating and drinking establishments and nightclub require approval of a use permit for the use, alcoholic beverage service (ABO) and a waiver of a portion of the required off - street parking space requirements. General Plan The Land Use Element of the General Plan designates the project site as Administrative, Professional and Financial Commercial. Restaurant and nightclub uses with on -site alcoholic beverage service and consumption are permitted uses in the Administrative, Professional and Financial Commercial land use designation. Mosun of Newport Beach May 8, 2003 Page 5 Zoning Code The subject property is located within the Administrative, Professional and Financial Commercial zoning district. Restaurant and nightclub uses are allowed in this district with the approval of a use permit. Hours of Operation The proposed hours of operation are: Venue Hours Dail Panini 7:00 AM — 1:00 AM Mosun 11:00 AM — 1:00 AM Club M 9:00 PM - 2:00 AM Multi Purpose 6:00 AM — 9:00 PM The proposed hours of operation are typical for restaurant/bars and nightclubs. Given that the proposed project is located in a commercial area with no nearby residential uses, staff believes they are acceptable. Live Entertainment and Dancing The applicant requests approval for live entertainment and dancing at Club M. Although the applicant has requested approval to operate the nightclub daily, they have indicated that the club will typically be open on Friday and Saturday nights and possibly occasional Thursdays. The request for daily operations is requested to give them flexibility to operate occasionally during the week or other days, seasonally. Pursuant to Municipal Code requirements, the applicant is required to obtain a Live Entertainment Permit, which includes a requirement to provide an acoustical study, which is issued by the City Manager prior to these activities occurring at the facility. The applicant has indicated that a cover charge will be assessed to patrons of the nightclub; therefore, a Cafe Dance permit is not required to be obtained pursuant to Chapter 5.32 of the Municipal Code. Noise The applicant proposes live entertainment and pre- recorded music in the nightclub, and background music within the restaurants and on the outdoor patio areas. Staff is concerned that the proposed live and recorded music and patrons on the patios may generate enough noise to impact surrounding businesses and potentially guests at the Radisson Hotel, which is located approximately 550 feet away and has windows that open. In addition to complying with all applicable Municipal Code sections pertaining to the control of noise, staff recommends the following conditions of approval to mitigate against potential noise related problems: Mosun of Newport Beach May 8, 2003 Page 6 ■ Require that all doors and windows be closed at all times to prevent noise from emanating. ■ Restrict the use of live or pre- recorded music or amplification to the interior of the establishment. ■ No audible outdoor paging system be permitted. Based on these conditions, the proximity to the Radisson, the high ambient noise levels of the area and the lack of other sensitive land uses in the area, staff believes that the noise generated by the proposed project will not be a significant issue. Waiver of Required Parking With this type of use, sufficient parking is always a concern. As indicated on the site plan, the shopping center currently has a total of 193 on -site parking spaces (includes 6 disabled spaces) that is shared between the tenants on the site. When determining the amount of parking required by the Zoning Code, the square footage of each individual tenant and type of business must be determined to apply the applicable parking ratio. The applicant has provided a list of existing tenants, the square footage occupied and the hours of operation (Table 2). EXISTING TENANT PARKING REQUIREMENT (Table 2) Tenant Use Business Hours Square Footage Required Parking* Social Security U.S. Government Office 9:00am — 4:00pm 6,142 24.57 Saunders Properties Business Offices 10:00am — 6:00 m 5,000 20 London Coin Retail 10 :00am — 5:00 pm 3,191 12.76 Fax & Mail Retail 9:00am — 6:00 m 1,093 4.37 Gentil Pennewaert Martial Arts Studio 11:00am —9:00 m 12,180 8.72 TOTALS 1 117,606 71 *Required Parking based on 1 space per 250 square feet (gross) Required Parking for Project The parking standard for restaurants and nightclubs specified by the Municipal Code is one parking space for each 30 to 50 square feet of net public area. The specific ratio applied is based on the operational characteristics of the establishment. Typically, a parking ratio of 1 space per each 40 square feet of net public area is used for full service, low turnover restaurants similar to the proposed restaurants. Required parking for the proposed outdoor dining areas is required to be provided for the portion of outdoor dining areas that exceeds 25% of the interior net public area. Using this calculation the required number of parking spaces required for the restaurants is 136. Mosun of Newport Beach May 8, 2003 Page 7 Staff recommends that the required parking for the nightclub /multi -use venue be based upon a 1 space for each 30 square feet of net public area due to the expected occupancy of the nightclub. The net public area for the nightclub includes 3,586 square feet of interior net public area and the 1,200 square foot exterior patio area for a total net public area of 4,786 square feet. Using this calculation, the number of parking spaces required for the nightclub is 160. As shown on Tables 3 and 4 below, when the proposed project operate simultaneously with the other uses of the site and when it operates independently (after 9:00 PM) the site is deficient parking at all times, seven days a week. PROPOSED PROJECT PARKING REQUIREMENT MONDAY THRU FRIDAY (Table 3) SATURDAY AND SUNDAY (Table 4) Breakfast Hrs. 7:00am — 11:00am Lunch Hrs. 11:00am — 3:00 m Dinner Hrs. 5:00 m — 9:00 m Evening Hours After 9:00 m Panini 1/40 52 52 52 52 Mosun 1140 Closed 84 84 84 M 1/30 Closed Closed Closed 160 Multi-Purpose 160 160 160 N/A Other Tenants 71 71 34 0 Total Required 283 367 330 1 296 Total Provided 193 1 193 193 1 193 Parkin Deficit L174 137 103 SATURDAY AND SUNDAY (Table 4) Off -Site Parking The property owner has indicated that parking on properties under his ownership located at 4500, 4540 and 4630 Campus would be available for use by the proposed business. Exhibit No. 7 is an aerial photograph showing the subject property and those at 4500, 4540 and 4630 Campus. According to information received, the majority of businesses on these adjoining properties keep 9 -5 hours and several hundred parking spaces would be available during the evening hours when Club M and both restaurants are operating. These off -site spaces are not available during the day due to heavy use Breakfast Hrs. 7 :00am — 11:00am Lunch Hrs. 11:00am — 3:00 pm Dinner Hrs. 5:00 m — 9:00 m Evening Hours After 9:00 m Panini 52 52 52 52 Mosun Closed 84 84 84 M Closed Closed Closed 160 Multi-Purpose 160 160 160 N/A Other Tenants 27 27 14 0 Total Re uired 239 323 310 296 Total Provided 193 193 193 193 Parklng Deficit 46 130 1 117 103 Off -Site Parking The property owner has indicated that parking on properties under his ownership located at 4500, 4540 and 4630 Campus would be available for use by the proposed business. Exhibit No. 7 is an aerial photograph showing the subject property and those at 4500, 4540 and 4630 Campus. According to information received, the majority of businesses on these adjoining properties keep 9 -5 hours and several hundred parking spaces would be available during the evening hours when Club M and both restaurants are operating. These off -site spaces are not available during the day due to heavy use Mosun of Newport Beach May 8, 2003 Page 8 by employees and patrons of the businesses they serve. Of the three sites, only 4630 Campus (45 spaces) has direct vehicular and pedestrian access to the project site. If patrons were to use the parking at 4500 and 4540 Campus (310 parking spaces total) they would have to cross properties not under the same ownership to access the proposed restaurants and nightclub. Staff is concerned about restaurant and nightclub patrons crossing private property, which may not be adequately lit or patrolled, to access vehicles. However, the potential of using the 45 spaces provided at 4630 Campus during the evening hours does bring the project closer to compliance, leaving it 58 spaces short of the required 296. Should the other lots be considered for use, staff believes a comprehensive parking plan should be prepared which would include requiring a valet parking plan. Additionally, the only way to secure the off -site parking is through an off -site parking agreement as opposed to the suggested shared use of the parking lots which could be eliminated with a change of ownership. Parking Waiver In order to grant a parking waiver, Section 20.66.100 requires that one or more of the following conditions be met: "A municipal parking facility is so located as to be useful in connection with the proposed use or uses on the site or sites." A municipal parking lot is not located within proximity of the site and there is no on- street. 2. "The site is subject to two or more uses and the maximum parking requirements for such uses do not occur simultaneously," As shown on Tables 3 and 4, the site is deficient parking at all times during the week and weekends. The deficiency is lower on the weekends as some of the existing office and retail uses are closed. Peak hours for restaurants of this type are typically during the lunch and dinner meal periods. Although the nightclub is proposed to open at 9:00 PM, peak hours for a nightclub use are typically later in evening (after 10 PM). The proposed multi -use venue will have variable peak hours but peak hours will likely be between 9:00 AM and 4:00 PM, as the location of the establishment in a commercial area will cater to business clients. It can also be expected that the multi -use venue will also experience high use during weekend afternoons and early evenings for private parties and other special events. Because of the magnitude of the deficiency in parking, staff considered a reduced project. If the multi -use venue is not authorized, and the nightclub is, there will be no deficiency of parking in the AM, a deficiency of 14 parking spaces after 11:00 AM during lunch, no deficiency during the dinner hours after 6:00 PM due to other businesses on site closing. A deficiency of 103 parking spaces after 9:00 PM occurs when the nightclub and both restaurants are operating simultaneously. Mosun of Newport Beach May 8, 2003 Page 9 Staff believes the fourteen space deficiency during lunch hours is acceptable due to the potential for walk -in trade from surrounding business offices and some internal capture of parking demand with other uses on -site will take place as patrons of other business in the center dine at the proposed restaurants. The on -site deficiency of 103 parking spaces after, 9:00 PM, when the nightclub opens is partially mitigated due to the expected reduction in restaurant demand as people typically dine between the hours of 6:00 PM and 10:00 PM, and the fact that nightclubs generally do not experience 100% percent occupancy until after 10:00 PM. Another factor to consider is that the applicant has stated that the nightclub will typically operate Thursday through Sunday (or less), with occasional other nights seasonally nights thereby reducing the number of days during the week that parking could potentially be impacted. Therefore, staff believes that this finding can be made for approval of the parking waiver for the two restaurants with the business hours as proposed by the applicant and the use of the nightclub /multi use venue after 9:00 PM only, based on the staggered hours of operation of the existing uses on the site and the proposed uses. 3. A parking management plan for the site has been approved by the Planning Commission..." A parking management plan has not been prepared for the site and surrounding properties. However, the project has been conditioned to require that a parking management plan be prepared, reviewed and approved by the City Traffic Engineer and Planning Department prior to the issuance of building permits. Staff believes that this parking management plan will assist in ensuring the available on -site parking is used in the most efficient and effective manner possible. Additionally, the parking management plan will assist regulating off -site parking pledged by the property owner and the potential for the use of valet parking to other off -site locations under the same ownership during evenings and on weekends should parking shortages occur. 4. `The Planning Commission makes the following findings: a) The parking demand will be less than the requirement in Section 20, 66.030. b) The probable long -term occupancy of the building or structure, based on its design, will not generate additional parking demand." Staff has no reason to believe that the parking demand will be less than required; however, some walk -in trade and some internal trip capture should occur. It is not likely that these factors will reduce parking demands to meet provided parking without taking into consideration the staggered hours of operation of the various uses. Additionally, findings in support of "b" cannot be made. Alcoholic Beverage Outlet Ordinance On June 8, 1998, the City Council adopted the Alcoholic Beverage Outlets (ABO) Ordinance (Chapter 20.89 of the Municipal Code). The purpose of the ABO Ordinance is to preserve a healthy environment for residents and businesses by establishing a set Mosun of Newport Beach May 8, 2003 Page 10 of consistent standards for the safe operation of alcoholic beverage outlets, while preventing alcohol - related problems. The ABO requires the Planning Commission to consider the following factors: 1. Whether the use serves public convenience or necessity. 2. The crime rate in the reporting district and adjacent reporting districts as compared to other areas in the City. 3. The number of alcohol licenses per capita in the reporting district and in adjacent reporting districts as compared to the county -wide average. 4. The numbers of alcohol - related calls for service, crimes or arrests in the reporting district and in adjacent reporting districts. 5. The proximity of the alcoholic beverage outlet to residential districts, day care centers, park and recreation facilities, places of religious assembly, and schools. In accordance with the foregoing, and in order to provide the Planning Commission with the necessary data and analysis to make the required findings, each of the factors is discussed as follows: 1. Public Convenience or Necessity. City Council Policy K -7 states that the public convenience or necessity will not be served with the approval of a new, upgraded or transferred license for a bar or nightclub within an area where the number of crimes exceeds the Citywide average by 75% or more. The project includes bar areas within two proposed restaurants and a nightclub. The number of reported crimes within Police Reporting District No. 34 (RD map attached as Exhibit No. 4) exceeds the citywide average by 35% and therefore Council Policy K -7 does not preclude the City from making the determination that the proposed nightclub would serve the public convenience or necessity. The sale of alcohol within a full - service restaurant and a nightclub environment is expected by the public. Therefore, approval will serve the public's convenience as opposed to the necessity. 2. Crime Rate. Citywide, there were 6,955 crimes reported during calendar year 2001, of which 2,852 were Part One Crimes (serious offenses). The remaining 4,103 were Part Two Crimes that include alcohol related arrests. The project site is located within Police Reporting District (RD) No. 34. The part one crime rate for RD 34, two adjacent RD's, City, California and National averages are shown in the following table for comparison. RD No. 34: 981250.00 City Average: 3770.24 RD No. 35: 2925.53 California: 3739.70 RD No. 36: 1761.40 National: 4124.00 It must be noted that the crime rate is based on crimes per 100,000 people and since RD 34 encompasses the airport area, which is 100% commercial and has a zero population, the crime rate figure is drastically skewed. Considering the significant Mosun of Newport Beach May 8, 2003 Page 11 daytime population of the area, the Police Department doesn't believe the area to have a high crime rate. During 2001, the number of Part One Crimes in RD No. 34 was 157 and the number of Part Two Crimes was 129. Adjacent Reporting Districts are Nos. 35 and 36. RD No. 35 had 88 Part One and 57 Part Two Crimes; and RD No. 36 had 77 Part One and 124 Part Two Crimes. During this period, this reporting district experienced 35.70% more crimes than the City average. It should be noted that RD 34 is primarily commercial and RD's 35 and 36 are primarily residential. 3. Over Concentration. The approval of the proposed project may result in an increase of one ABC license if the Type 47 license the applicant intends to purchase form the Coco's restaurant is not adequate to cover the nightclub portion of the project and ABC requires the operator to obtain a Type 48 license for Club M. There are a total of 26 active ABC licenses within RD No. 34. Due to the non - existent residential population in RD No. 34 any comparison to other areas based upon population would be misleading. Using a license per RD or license per acre comparison would also be misleading given that RD's vary in area and land use. However, considering the daytime population, 26 ABC licenses does not appear to be high. Finally, the Police Department has not indicated that they believe the area to be over concentrated. 4. Alcohol Related Crimes. The Police Department has provided statistics for driving under the influence and plain drunk arrests. There were 9 driving under the influence arrests and 6 plain drunk arrests within RD No. 34 in 2001. The percentage of alcohol related arrests within RD No. 34 are .85 %. By comparison, RD's 35 and 36 had 15 and 14 alcohol related arrests respectively. The sale of alcohol in the restaurants is ancillary to the restaurant use and although both have an actual bar, and a cocktail lounge in the case of Mosun Sushi, the establishments are not intended to operate primarily as a bar, and food service will be offered during all hours of operation. The sale of alcohol in conjunction with the nightclub supports its primary use as a bar /nightclub and the Police Department has expressed concerns regarding the probable increase in alcohol related crimes associated with that use. 5. Adjacent Uses. The site is located within a commercial area near the John Wayne Airport. Surrounding uses are dominated by retail commercial and general office. The only potential sensitive land use is the Radisson Hotel, which has approximately 339 rooms. There are no residences, day care centers, schools, or park and recreation facilities in the vicinity of the project site. Newport Beach Police Department Concerns The Newport Beach Police Department provided staff with a comprehensive report, which is attached to this staff report as Exhibit No. 3. In their report, the Police Mosun of Newport Beach May 8, 2003 Page 12 Department cited several concerns with the proposed project that focused on the nightclub use. These concerns included noise, occupancy, the use of private "VIP" rooms or lounges and alcohol related crimes and disturbances. The applicant provided a draft security plan (Exhibit No. 6), which also has been reviewed by the Police Department. Although the Police Department believes that the proposed use may create an increased demand for law enforcement services, a list of recommend conditions was provided. These conditions, or slight variations thereof, have been included in the draft Planning Commission resolution. Additionally, staff has included a condition of approval (No. 27) requiring the applicant to obtain approval of a final comprehensive security plan from the Police Department and implement said plan for the life of the use permit. Restaurant Deslan and Development Standards Chapter 20.82.040 of the Municipal Code contains development standards for restaurants, as outlined below, to ensure that any proposed development will be compatible with adjoining properties and streets. The development standards include specific requirements for site requirements, building setbacks, parking and traffic circulation, walls surrounding the restaurant site, landscaping, exterior illumination, underground utilities, and supply and refuse storage. Section 20.82.040 D of the Municipal Code states that any of the above mentioned development standards for restaurants may be modified or waived if strict compliance is not necessary to achieve the purpose or intent of the standard. Development Standards REQUIREMENT - PROPOSED Site. Site shall be of sufficient size and configuration to Partially Complies. The site is an existing development satisfy all requirements for off -street parking, setbacks, that generally meets the restaurant development curb cuts, walls, landscaping and refuse storage as standards except that during some hours of operation the provided by Becton 20.82.040 of the Municipal Code. minimum number of parking spaces is not provided. Setbacks: The City may establish more restrictive setbacks if It is Complies. The proposed uses are to be located in an determined that it is necessary or desirable for the existing structure that meets the required setbacks. protection of the public health, safety or welfare or to insure the compatibility of uses on contiguous properties. Oft -Street Off- street parking in accordance with the provisions of Modification Sought. The site provides 193 parking Parking. Chapter 20.66 of the Municipal Code spaces for all uses, which is below the number of spaces required by the Zoning Code. The applicant has requested a waiver for a portion of the required off - street parking. Circulation: Parking areas and driveways to facilitate traffic and Complies. The project was reviewed by the Public circulation of vehicles on and around the facility and to Works Department who conditioned the project to not provide adequate sight clearances. change the current parking lot layout. Wefts.• A solid masonry wall 6 feet high shall be erected on all Complies. The approval of Use Permits 1588(A) and interior property lines of the subject property. Walls 3 1804(A) in 1988 included a determination the site to be in feet in height shall be erected between the on -site substantial compliance with this development standard. parking areas and the public right-of-way. Landscaping' 10% of entire site, 3 -foot wide landscape area shall be Complies. The approval of Use Permits 1588(A) and provided to screen the parking area from the public 1804(A) in 1988 included a determination the site to be in right -of -way. A 3 -foot wide landscape area adjacent to substantial compliance with this development standard the interior property lines shall be provided. Mosun of Newport Beach May 8, 2003 Page 13 Environmental Review: This project has been reviewed and it has been determined that it is categorically exempt from the requirements of the California Environmental Quality Act under Class 1 (Existing Facilities). Public Notice: Notice of this hearing was published in the Daily Pilot, mailed to property owners within 300 feet of the property (excluding roads and waterways) and posted at the site a minimum of 10 days in advance of this hearing consistent with the Municipal Code. Additionally, the item appeared upon the agenda for this meeting, which was posted at City Hall and on the city website. Summary: Staff believes the location of the site in the airport area and the lack of residential uses in the vicinity makes this a good location for the proposed project. Staff believes the findings for the Use Permit for the two restaurants and nightclub, all with alcoholic beverage service and the waiver of a portion of the required off - street parking can be made. However, due to the shortage of the parking during the day staff does not support the operation of the multi -use venue when the other businesses on site are open. Staff cannot support the use of the nightclub area for other assembly uses outside the proposed operating hours of 9:00 pm — 2:00 am without more evidence supporting the availability and practical usefulness of parking. Alternatives: Since the project involves four separate potential operations, the Commission has several options. 1. The Commission may accept staffs recommendation and approve the two restaurants and nightclub based on the findings and conditions of approval included in the draft Planning Commission Resolution (Exhibit 1). This option does not include approval of the multi -use venue during the day. REQUIREMENT PROPOSED Lighting, Parking lot and site illumination height and intensity. to Complies. The existing lighting on the subject property minimize the reflection of lights to the streets and does not appear to pose a problem to adjacent neighboring properties, properties. New lighting associated with the proposed use is required to adhere to this requirement. Utilities All utilities required to be under grounded. Complies. The project site is served by underground utilities. Su Storage Supply storage to be contained within a building. Complies. No outdoor storage of supplies is Permitted. Refuse Storage Refuse storage outside of a building shall be hidden Complies. A condition of approval has been included to from view by a solid masonry wall 6 feet in height with require the existing trash storage area to comply with this self-locXing gates. requirement. Environmental Review: This project has been reviewed and it has been determined that it is categorically exempt from the requirements of the California Environmental Quality Act under Class 1 (Existing Facilities). Public Notice: Notice of this hearing was published in the Daily Pilot, mailed to property owners within 300 feet of the property (excluding roads and waterways) and posted at the site a minimum of 10 days in advance of this hearing consistent with the Municipal Code. Additionally, the item appeared upon the agenda for this meeting, which was posted at City Hall and on the city website. Summary: Staff believes the location of the site in the airport area and the lack of residential uses in the vicinity makes this a good location for the proposed project. Staff believes the findings for the Use Permit for the two restaurants and nightclub, all with alcoholic beverage service and the waiver of a portion of the required off - street parking can be made. However, due to the shortage of the parking during the day staff does not support the operation of the multi -use venue when the other businesses on site are open. Staff cannot support the use of the nightclub area for other assembly uses outside the proposed operating hours of 9:00 pm — 2:00 am without more evidence supporting the availability and practical usefulness of parking. Alternatives: Since the project involves four separate potential operations, the Commission has several options. 1. The Commission may accept staffs recommendation and approve the two restaurants and nightclub based on the findings and conditions of approval included in the draft Planning Commission Resolution (Exhibit 1). This option does not include approval of the multi -use venue during the day. Mosun of Newport Beach May 8, 2003 Page 14 2. The Commission may conclude that the nightclub in conjunction with the proposed restaurants could create parking and circulation problems. In that case, a reduced intensity alternative should be considered. Options include: limiting hours of operation or denying the nightclub use or denying one of the two restaurants because the off - street parking requirements cannot be met. 1 The Commission may conclude that the entire project, including the multiple use venue, as proposed, meets the intent of the Code and approve the entire application. 4. The Commission may continue the item and require additional parking demand analysis to be prepared by a qualified traffic engineer and a parking management plan be prepared and reviewed prior to taking action on the application. 5. The Commission may determine that the site is not suitable for this type or intensity of use as proposed and deny the application. Prepared by: Gregg amirez, Associate anner Exhibits: Submitted by: Patricia L. Temple, Planning Director Resolution No. 2003 -_; findings and conditions of approval 2. Findings for denial 3. Police Department report 4. Police Department RD Map 5. Applicant correspondence 6. Draft Security Plan 7. Air Photo of subject and surrounding properties 8. Project Plans EXHIBIT NO. 1 DRAFT PLANNING COMMISSION RESOLUTION NO. 2003- 1`� RESOLUTION NO. _ A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH APPROVING USE PERMIT NO. 2002 -040 FOR PROPERTY LOCATED AT 4647 MACARTHUR BOULEVARD. (PA2002 -193) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS, RESOLVES AND ORDERS AS FOLLOWS: Section 1. An application was filed by Mosun of Newport Beach, with respect to property located at 4647 MacArthur Boulevard, and legally described as Lot 13 Tract 5169, requesting approval of Use Permit No. 2002 -040 to allow two Full - Servioe, Low Turnover Eating and Drinking Establishments, a Nightclub and Multi- Purpose Venue, the sale of alcoholic beverages for on -site consumption pursuant to the Alcoholic Beverage Outlet Ordinance (ABO) and approval of a modification to the required off - street parking requirements. The site is designated Administrative, Professional and Financial by the General Plan Land Use Element and Administrative, Professional and Financial (APF) by the Zoning Code. Section 2. A public hearing was held on May 8, 2003 in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California. A notice of time, place and purpose of the aforesaid meeting was given. Evidence, both written and oral, was presented to and considered by the Planning Commission at this meeting. Section 3. The Planning Commission finds as follows: The location for the proposed Eating and Drinking Establishments and Nightclub requiring this requiring this Use Permit, and the proposed conditions under which it would be operated or maintained, is consistent with the General Plan and the purpose of the Administrative, Professional and Financial (APF) Zoning District in which the site is located; will not be detrimental to the public health, safety, peace, morals, comfort, or welfare of persons residing or working in or adjacent to the neighborhood of such use; and will not be detrimental to the properties or improvements in the vicinity or to the general welfare of the City for the following reasons: a. The location of the restaurants and nightclub is in the airport commercial area. Surrounding land uses are dominated by retail commercial, professional office and visitor serving uses. Restaurant and nightclub uses can be expected to be found in this and similar locations and are complimentary to the surrounding commercial uses. b. The project site is not located in close proximity to residential districts, day care centers, schools, park and recreation facilities or places of religious assembly. c. The project has been conditioned in such a manner to require strict adherence to safety and noise regulations. The project design and operational characteristics, as conditioned, meets the intent of the Zoning Code. 1A City of Newport Beach Planning Commission Resolution No. _ Paae 2 of 9 2. The on -site alcoholic beverage service requiring this requiring this Use Permit, and the proposed conditions under which it would be operated or maintained, will not be detrimental to the public health, safety, peace, morals, comfort, or welfare of persons residing or working in or adjacent to the neighborhood of such use; and will not be detrimental to the properties or improvements in the vicinity or to the general welfare of the City for the following reasons: a. The convenience of the public can be served by the sale of desired beverages in conjunction with a full- service, sit -down restaurants and a nightclub, which are complementary to surrounding uses in the airport area. Alcoholic beverage service is typical and expected by the public in full- service restaurant and nightclub settings; b. The number of alcohol licenses within the reporting district and adjacent reporting districts is not significantly high given the nature of the land uses in the district and when compared with County -wide data. The percentage of alcohol- related arrests in the police- reporting district in which the project is proposed is lower than the percentage citywide. c. The project site is not located in close proximity to residential districts, day care centers, schools, park and recreation facilities or places of religious assembly. d. The sale of alcoholic beverages for on -site consumption to be operated in a building that is designated and zoned for commercial activity. The use has been conditioned in such a manner to minimize the impacts associated with the on -site sale of alcoholic beverages. The plans, as conditioned, meet the design and development standards for alcoholic sales. 3. The required findings for granting a waiver of a portion of the required off - street parking can be made for the following reasons: a. The hours of operation of the proposed restaurants, and nightclub uses are such as to allow shared use of the on -site and off -site parking lots. When shared usage occurs between a mixture of uses, parking demand is typically lower than is required. The site and the proposed use will operate in a manner to afford a sharing of parking with other uses (with different hours) located on the site; b. Some walk -in trade is expected during midday when parking demand for the two restaurants will compete with the other tenants in the shopping center. c. The proposed use will not compete with other tenants for available parking when both restaurants and the nightclub are open for business. d. A parking management plan is required to be prepared and approved by the City Traffic Engineer and Planning Department prior to the issuance of building permits. The applicant is required to implement the recommendations included in the plan and those required by the Traffic Engineer and Planning Department. City of Newport Beach Planning Commission Resolution No. _ Paoe 3 of 9 4. The required findings for granting a waiver of a portion of the required off - street parking for the use of the multi - purpose venue outside the normal operating hours of 9:00 pm thru 2:00 am cannot be made for the following reasons: a. Parking availability is anticipated to be insufficient when the restaurants and other businesses on -site are operating simultaneously, especially during the morning, afternoon and early evening hours. b. The use of this facility causes the site to be deficient of the required off - street parking at all hours, seven days a week. c. Patrons attending events at the multi - purpose venue will typically be there only for that event and will not contribute to walk -in trade. 5. The project has been reviewed, and it qualifies for a categorical exemption pursuant to the California Environmental Quality Act under Class 1 (Existing Facilities). This categorical exemption allows for the repair, maintenance and minor alternation of an existing building. This exemption includes interior and exterior alterations. Section 4. Based on the aforementioned findings, the Planning Commission hereby approves Use Permit No. 2002 -040 subject to the Conditions of Approval set forth in Exhibit "A ". Section 5. This action shall become final and effective fourteen days after the adoption of this Resolution unless within such time an appeal is filed with the City Clerk or this action is called for review by the City Council in accordance with the provisions of Title 20, Planning and Zoning, of the Newport Beach Municipal Code. PASSED, APPROVED AND ADOPTED THIS 81" DAY OF MAY 2003 MN M Steven Kiser, Chairman Shant Agajanian, Secretary 0 EXCUSED: �9 City of Newport Beach Planning Commission Resolution No. _ Page4of9 EXHIBIT "A" CONDITIONS OF APPROVAL USE PERMIT NO. 2002-040 1. The development shall be in substantial conformance with the site plan and elevations dated September 20, 2002 and the floor plan dated April 18, 2003 (revised). 2. Use Permit Nos. 2002 -040 shall expire unless exercised within 24 months from the date of approval as specified in Section 20.91.050 of the Newport Beach Municipal Code, unless an extension is otherwise granted. 1 This Use Permit may be modified or revoked by the City Council or Planning Commission should they determine that the proposed uses or conditions under which it is being operated or maintained is 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. 4. The applicant is required to obtain all applicable permits from the City Building and Fire Departments. The construction plans must comply with the most recent, City- adopted version of the California Building Code. 5. Any change in operational characteristics, hours of operation, expansion in area, or operation characteristics, or other modification to the floor plan, shall require an amendment to this Use Permit or the processing of a new Use Permit. 6. 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 Use Permit. 7. 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. 8. All proposed signs shall be in conformance with the provision of Chapter 20.67 of the Newport Beach Municipal Code and shall be approved by the City Traffic Engineer if located adjacent to the vehicular ingress and egress. 9. The operator of the facility shall be responsible for the control of noise generated by the subject facility. The noise generated by the proposed use shall comply with the provisions of Chapter 10.26 of the Newport Beach Municipal Code. The maximum noise shall be limited to no more than depicted below for the specified time periods unless the ambient noise level is higher: City of Newport Beach Planning Commission Resolution No. _ Page5of9 10. The Use Permit for the two restaurant uses, as depicted on the approved set of plans is for an Eating and Drinking Establishment or restaurant and does not authorize the use or operation of a bar, tavern, cocktail lounge, nightclub or commercial recreational entertainment venue. 11. The Use Permit for the nightclub use, as depicted on the approved set of plans is for a nightclub or event assembly use. 12. Hours of operation for the restaurant outdoor patio area occupied by Panini, as depicted on the approved set of plans, shall be 7:00 am to 1:00 am daily. 13. Hours of operation for the restaurant and outdoor patio area occupied by Mosun, as depicted on the approved set of plans, shall be from 11:00 am to 1:00 am daily. 14. Hours of operation for the nightclub area occupied by Club M /Multi- Purpose Venue, as depicted on the approved set of plans, shall be from 9:00 pm to 2:00 am daily. 15. Live entertainment is permitted in the nightclub (Club M) portion of the facility only, as depicted on the approved set of plans, upon receipt of a Live Entertainment Permit issued by the City Manager. 16. Dancing is permitted in the nightclub (Club M) portion of the facility only. 17. Dancing is not permitted in the two restaurant areas, as depicted on the approved set of plans, unless authorized by a special events permit or an amendment to the Use Permit. 18. Background music shall be limited to indoor areas only 19. 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 Newport Beach Municipal Code to require such permits. 4` Between the hours of Between the hours of TOOAM and 10:OOPM and 10:00PM 7:OOAM Location Interior Exterior Interior I Exterior Residential Property 45dBA 55dBA 40dBA 5OdBA Residential Property located within 100 feet of a commercial 45dBA 60dBA 45dBA 50dBA property Mixed Use Property 45dBA 60dBA 45dBA 5OdBA Commercial Property N/A 65dBA N/A 6OdBA 10. The Use Permit for the two restaurant uses, as depicted on the approved set of plans is for an Eating and Drinking Establishment or restaurant and does not authorize the use or operation of a bar, tavern, cocktail lounge, nightclub or commercial recreational entertainment venue. 11. The Use Permit for the nightclub use, as depicted on the approved set of plans is for a nightclub or event assembly use. 12. Hours of operation for the restaurant outdoor patio area occupied by Panini, as depicted on the approved set of plans, shall be 7:00 am to 1:00 am daily. 13. Hours of operation for the restaurant and outdoor patio area occupied by Mosun, as depicted on the approved set of plans, shall be from 11:00 am to 1:00 am daily. 14. Hours of operation for the nightclub area occupied by Club M /Multi- Purpose Venue, as depicted on the approved set of plans, shall be from 9:00 pm to 2:00 am daily. 15. Live entertainment is permitted in the nightclub (Club M) portion of the facility only, as depicted on the approved set of plans, upon receipt of a Live Entertainment Permit issued by the City Manager. 16. Dancing is permitted in the nightclub (Club M) portion of the facility only. 17. Dancing is not permitted in the two restaurant areas, as depicted on the approved set of plans, unless authorized by a special events permit or an amendment to the Use Permit. 18. Background music shall be limited to indoor areas only 19. 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 Newport Beach Municipal Code to require such permits. 4` City of Newport Beach Planning Commission Resolution No. _ Pape 6 of 9 20. 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, including minimum drink orders or sale of drinks is prohibited. 21. Full meal service shall be provided during all hours of operation for both restaurants. 22. Strict adherence to maximum occupancy limits is required. 23. The use of private (enclosed) "VIP" rooms or any other temporary or permanent enclosures separate from public areas are prohibited. 24. The rear doors of the facility shall remain closed at all times. The use of the rear door shall be limited to deliveries and employee use only. Ingress and egress by patrons is prohibited in unless there is an emergency. 25. All doors and windows of the entire facility shall remain closed at all times except for the ingress and egress of patrons and employees. 26. All exits shall remain free of obstructions and available for ingress and egress at all times. 27. Prior to the final inspection of building permits and the issuance of the certificate of occupancy, the applicant shall submit a comprehensive security plan for the permitted uses for review and approval by the Newport Beach Police Department. The procedures included in the plan and any recommendations made by the Police Department shall be implemented and adhered to for the life of the use permit. 28. 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. The certified program must meet the standards of the California Coordinating Council on Responsible Beverage Service or other certifying /licensing body, which the State may designate. The establishment shall comply with the requirements of this section within 180 days of the issuance of the certificate of occupancy. 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. 29. The type of alcoholic beverage license issued by the California Board of Alcoholic Beverage Control for the restaurant uses shall be a Type 47 for full alcohol service for on -site consumption only, and only in conjunction with the service of food as the principal use of the facility. The consumption of alcoholic beverages shall be limited to the interior of the restaurants and the outdoor dining areas only. The sale for off -site consumption of alcoholic beverages is prohibited. Any upgrade in the alcoholic �a City of Newport Beach Planning Commission Resolution No. _ Paoe 7 of 9 beverage license shall be subject to the approval of an amendment to this application and may require the approval of the Planning Commission. 30. The type of alcoholic beverage license issued by the California Board of Alcoholic Beverage Control for the nightclub use shall be a Type 48 (full alcohol service for on- site consumption only), and only in conjunction with the service of food as the principal use of the facility. The consumption of alcoholic beverages shall be limited to the interior of the restaurants and the outdoor dining areas only. The sale for off -site consumption of alcoholic beverages is prohibited. Any upgrade in the alcoholic beverage license shall be subject to the approval of an amendment to this application and may require the approval of the Planning Commission. 31. The alcoholic beverage outlet operator shall take reasonable steps to discourage and correct objectionable conditions that constitute a nuisance in parking areas, sidewalks and areas surrounding the alcoholic beverage outlet and adjacent properties during business hours, if directly related to the patrons of the subject alcoholic beverage outlet. 32. No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under control of the ABC license. 33. Should this business or alcohol license be sold. or otherwise come under different ownership or control, any future owners, operators or assignees shall be notified of the conditions of this approval by either the current owner /operator. Future owners, operators or assignees shall submit, within 30 days of transfer or sale of the business or alcohol license, a letter to the Planning Department acknowledging their receipt and acceptance of the limitations, restrictions and conditions of approval of this Use Permit. 34. The quarterly gross sales of alcoholic beverages in the approved restaurants shall not exceed the gross sales of food during the same period. The licensee shall maintain records that reflect separately the gross sale of food and the gross sales of alcoholic beverages of the licensed business. Said records shall be kept no less frequently than on a quarterly basis and shall be made available to the Department on demand. 35. No "happy hour' type of reduced price alcoholic beverage promotion is permitted except when served in conjunction with food ordered from the full service menu. 36. There shall be no exterior advertising or signs of any kind or type, including advertising directed to the exterior from within, promoting or indicating the availability of alcoholic beverages. Interior displays of alcoholic beverages or signs that are clearly visible to the exterior shall constitute a violation of this condition. 37. The number of plumbing fixtures in the public restrooms shall comply with the Uniform Building Code (Appendix 29A). 38. A grease interceptor of adequate size may be required in association with food preparation activities pursuant to the Building Code. %5 City of Newport Beach Planning Commission Resolution No. _ Paqe 8 of 9 39. Prior to the issuance of building permits, approval from the Orange County Health Department is required 40. Prior to issuance of a Building Permit, plans for the outdoor dining /patio areas shall be reviewed and approved by the Planning Department. The outdoor dining /patio areas shall be required to drain into adjacent landscaping and shall not drain into the storm drain system. The perimeter of the outdoor dining areas shall be secured by a railing designed to meet ABC requirements; final material, height, and location of the fence shall be subject to approval by the Building and Planning Department staff. The material and color of any awning or umbrella located on the outdoor dining /patio areas shall be subject to review and approval by the Planning Department. No form of advertisement shall be placed on an awning, umbrella or elsewhere in the outdoor patio dining areas. The outdoor patio dining areas, including any awning or umbrella, shall be maintained in a clean orderly condition at all times. 41. Prior to the final of building permits, the location of maximum occupancy postings in section of the building /patios shall be inspected and approved by the Newport Beach Building Department to ensure the location is readily visible to employees, patrons and public safety personnel. 42. Prior to the final of building permits, the refuse storage facilities should be upgraded to meet the requirements specified by Title 20 by providing self - locking gates. 43. Alterations to the interior of the existing structure may require alteration to the existing fire sprinkler system. Plans and permit application must be submitted fro the alteration of the automatic sprinkler system prior to the issuance if building permits. 44. All commercial cooking equipment that produces grease -laden vapors must be provided with fire protection. Hood and exhaust ducts must also be protected. Separate plans and permits approved by the Newport Beach Fire Department are required for the kitchen fire suppression system. 45. A manual fire alarm system is required. If the occupant load exceeds 1,000 persons, an approved pre - recorded message announcement using an approved voice communications system shall also be required. 46. Prior to the issuance of building permits, plans for the installation of the fire alarm system must be submitted to the Newport Beach Fire Department for review and approval. 47. Prior to issuance of a Building Permit, the proposed use shall comply with all federal, state, and local laws regulating accessibility requirements for handicapped persons, including handicapped parking spaces, to the satisfaction of the City's Traffic Engineer and Building Department. These stalls shall be properly labeled and dimensioned on the site plan. The number of handicapped parking spaces shall equal those required under California State handicapped provisions or other applicable laws or regulations. �A City of Newport Beach Planning Commission Resolution No. _ Page 9 of 9 48. Prior to issuance of a Building Permit, the applicant shall prepare a final parking management plan subject to review and approval by the City Traffic Engineer. The parking management plan shall include a parking lot signage plan if reserved spaces are proposed for any tenants. The parking management plan shall also include a statement that no recreational vehicles, boats, or similar vehicles shall be stored any time at the subject site. The applicant shall comply with all of the City's property maintenance laws and ordinances. The parking management plan shall be implemented at all times. 49. All parking in conjunction with this use shall be confined to the parking lots over which the applicant has rights to park. If, in the opinion of the Planning Director, the proposed use creates parking congestion at the site the applicant shall immediately resolve the congestion problem by reducing attendance until the parking congestion is eliminated and parking is properly managed. The Planning Director has the discretion to require the preparation of a revised parking management plan and/or require valet parking on an off -site location. 15 EXHIBIT NO. 2 FINDINGS FOR DENIAL Al Findings for Denial Use Permit No. 2002 -040 (PA2002 -193) The granting of a use permit to waive a portion of the required off - street parking will be detrimental to the health, safety, peace, comfort and general welfare of persons residing or working in the neighborhood for the following reasons: a) A municipal parking facility is not located as to be useful in connection with the proposed use. b) The site is subject to two or more uses that occur simultaneously and exceed the parking requirements which will lead to a parking space shortage and cause circulation problems within the parking lot and possibly on adjacent properties and public rights of way c) A parking management plan has not been prepared to support the reduction in the number of required off - street parking. EXHIBIT NO. 3 POLICE DEPARTMENT REPORT City of Newport Beach Police Department Memorandum January 6, 2003 TO: Gregg Ramirez, Staff Planner FROM: Captain Tim Newman, Detective Division SUBJECT: Project Review Request ( Mosun of Newport Beach, Use Permit 2002 -040) At your request, our office has reviewed this application for use permit, which seeks to allow two restaurants and a multiple use venue /nightclub with alcoholic beverage service and live entertainment. The project site is located 4647 MacArthur Boulevard, Newport Beach. The applicant's proposed hours of operation are as follows: Panini Mediterranean Cafe (restaurant): 6:00 am to 2:00 am Mosun Sushi (restaurant): 11:00 am to 3:00 pm and 5:00 pm to 2:00 am M ( "multi -use venue ") 8:00 am to 6:00 am The principles that are the most familiar with the operational characteristics of this proposal did not meet with city staff during the Development Review Committee. We did have some interaction with an architect representing the applicant but she was unable to provide specific information about how the business would operate and informed us that the applicant would not be meeting with us. Therefore, we are assuming, based on these limited conversations with the architect and the written submissions to the Planning Department, that the applicant intends to develop this project using a similar restaurant and nightclub format as the Mosun & Club M operation presently located in Laguna Beach. It is also our understanding that the same operators will be involved in the proposed business. The applicant is proposing a large restaurant and nightclub operation (15,250 S.F. interior space and 2,400 S.F. exterior patio). By comparison, the Warehouse/Buzz restaurant/nightclub was 14,730 S.F. building and Aysia 101 was 17,080 S.F. In order to conduct our review of this application, we utilized the following occupancy projections for the Mosun of Newport Beach site'. Inside- 550 people Patio- 250 people APPLICANT HISTORY As part of our analysis, we contacted the Laguna Beach Police Department and interviewed some of their employees regarding their experiences with that business operation. We also reviewed Laguna 'At our request, Deputy Building Official Faisal Jurdi calculated these estimates. N Page 2 of 9 Beach Police calls for service records and data, which, we believe, can provide us with an indication of how a similar business model might affect our community and our police - related service levels. From all indications, the Laguna Beach business does not have adequate parking. Assuming adequate parking will be provided at the proposed Newport Beach site, the parking availability problems as experienced in Laguna Beach should not be an issue here. Our analysis of the Laguna Beach police related activities has accounted for this parking condition and police activities directly related to parking (or the lack thereof) have been factored out of our review. Therefore data provided in this report does not include parking related events. As it is with other operations in our city, the conduct of patrons in parking lots during and after business hours can be an issue and will be addressed elsewhere in this report. Understandably, any proposed business operation of this type and size will have some predictable impact on police related activity levels. We are projecting such impacts from this project will be negative and will likely result in an increase in police - related activities and calls for service. The resources required to address these events would detract from our ability to provided police services to other areas of the community. While theoretically it is possible that businesses with this type and scope of nightclub venue can operate without creating unacceptable impacts, we cannot confidently say that is the case here. Our assumptions were developed after reviewing the project information submitted by the applicant, and from an analysis of police calls for service and activities records for the applicant's operation in Laguna Beach. If the current business in Laguna Beach is any indication of what is likely to occur here, the facts seem to speak for themselves. Our analysis revealed several areas of potential concern. From what we were able to determine, the Laguna Beach business has an occupancy load of 370. Below is an exact copy of text from the club's website. Note the capacity is listed as "800" people (emphasis added). - Special Events Full Service Design Co- ordination Production Entertainment for all occasions... ...From simp is to elegant to outrageous events... Mosun & Clu offer endless opportunities Combining culinary ez ence, sleek upbeat ambiance with a varie f live musical & Theatrical entertain t under one roofl Reserve your private or corporate- dWAbrations early! Guest Accommodations up ttf Soo Free Onsite, or Offsite ConsultatiorkAvai Source: http:// www. mosunclubmcom /speciatevents.html Page 3 of 9 On December 5, 2002, Vice Investigators from the Newport Beach Police Department placed a call to Mosun's (Laguna Beach) and inquired about the possibility of scheduling a "corporate function for 620 or more guests." The person taking the call stated the Mosun facility could accommodate a maximum of 620 people, not including Mosun's employees. That number is 59% over the occupancy load. On Saturday, November 23, 2002, undercover investigators from A.B.C. and the Newport Beach Police Department visited the Laguna Beach club between 8:30 pm and 12:30 am. By 10:45 pm, Investigators reported the upstairs bar appeared to be grossly overcrowded (estimated 70 -100 over the 250 maximum). Two of the three bartenders were observed drinking beer or shots while working behind the bar. One of the second floor bouncers was seen walking around drinking beer while working the floor. At one point, the investigators monitored the doorman, who was taking fees to enter the club. One male patron was charged $15 while another was charged S20. At the top of the stairs, another bouncer was apparently responsible for monitoring the people-count/controlling people entering the bar. He had a manual counter on his belt but did not appear to be using it. Our investigator monitored him for 30 -45 minutes and the counter was never touched. The bouncer was seen to be frequently looking into the bar area, but continued to allow people to enter. During that same time frame the bar was described as very overcrowded with a "wall of people" standing at the bar waiting for drinks- perhaps, according our investigators, should have been obvious indication that the upstairs club area was overcrowded. Another investigator monitoring activities outside the club observed that the waiting line was well managed and controlled by club employees. However, at one point a male subject exited the club and entered the adjacent private property. The subject, who appeared to be intoxicated, stopped and urinated on the ground. Investigators noted that some of the windows to the front of the club were open while the music was playing (our understanding is that the open windows contribute to the ongoing loud music complaints from the neighbors). One investigator stood outside the club on the public sidewalk and could hear music 50 -100 feet from the club entrance (a violation of an A.B.C. license condition). Police Activities and Calls for Service Data At our request, Laguna Beach Police provided us with copies of police dispatch records and other reports of activities at the applicant's Laguna Beach location. '- Source: police calls for services data as provided by the Laguna Beach Police Department. Our staff reviewed records for the specified time periods with the results as noted. We also reviewed officer's daily logs/reports describing events and calls at the location. b5 Page 4 of 9 Laguna Beach Police Calls for Service Data 680 S. Coast Highway, Laguna Beach (August through December 2000) TYPE CALLS NOTES Noise 14 Four of these events were attributed to patrons outside the location Fights 1 Involved parties who left prior to police arrival Alcohol - related offenses* I Subject was arrested for drunk in public. Medical Aid 1 Intoxicated person in front of location Thefts 0 None reported Miscellaneous Calls 1 Report of club having a private party without an ABC License (no official action taken) Total Calls 18 *Laguna Beach Police Department does not routinely investigate drunk in public or driving under the influence arrests to determine where the person had been drinking prior to contact with the police. Additional events: 1. October 30, 2000: A.B.C. Type 47 Conditional License was issued to Serrano Investments Inc. (dba: MOSUN) Laguna Beach Police Calls for Service Data 680 S. Coast Highway, Laguna Beach (January through December 2001) TYPE CALLS NOTES Noise 26 Five were attributed to patrons outside the location Fights 10 One case a participant was hospitalized; in another a subject was arrested for batter Alcohol - related offenses* 1 One arrest Medical Aid 2 One drug overdose transported to hospital, one battery victim. Thefts 6 Stolen wallets and purses Miscellaneous Calls 4 Includes one reported rape (allegedly the victims drink was tampered while at the club) Total Calls 49 *Laguna Beach Police Department does not routinely investigate drunk in public or driving under the influence arrests to determine where the person had been drinking prior to contact with the police. Additional events: L January 1, 2001: A.B.C. investigators purchase an alcoholic beverage inside the location after hours. 2. August 13, 2002: A.B.C. sends a letter to the business officially warning them of complaints and violations. 3. August 22, 2001: A.B.C. notified club management of all current A.B.C. conditions. 4. August 22, 2001: A notice of non - compliance from the Laguna Beach Fire Dept. and Building Dept, closing the second floor to occupancy until re- inspection and conformity. y# Page 5 of 9 5. September 9, 2001: A.B.C. investigators purchase an alcoholic beverage in the location after hours. 6. October 10, 2001: Laguna Beach Police Officers entered the location at 12:24 am and witness the sales and consumption of alcoholic beverages after permitted hours. They also document observing intoxicated patrons inside the business. 7. October 18, 2001: In response to citizen complaints, the Laguna Beach Police Department and investigators from A.B.C. performed an undercover operation inside the location. Three violations of the conditional license were documented (sales, service, and consumption, of alcoholic beverage beyond the restricted time confines; entertainment was audible outside the area of control; and rear and side doors were open during the hours of operation). 8. October 20, 2001: A.B.C. undercover investigators entered Mosun's and observed a violation of the sound restriction. 9. October 27, 2001: No violations observed. 10. November 1, 2001: A.B.C. investigators documented a violation of the sound restriction approximately 75 feet from the location. 11. November 8, 2001: A.B.C. investigators documented a violation of the sound restriction approximately 100 feet from the location. 12. November 30, 2001: Laguna Beach Police officers arrest a pedestrian, who was entering Club M, for drug sales (Ecstasy). Laguna Beach Police Calls for Service Data 680 S. Coast Highway, Laguna Beach (January through November 2, 2002) TYPE CALLS NOTES Noise 18 Three events were attributed to patrons outside the location. The manager of the club was arrested for the disturbance (private party arrest) Fights 4 On one occasion the participants had just exited the club when the fight began Alcohol - related 3 Arrests at the location for drunk in public offenses* Medical aid 1 Subject hospitalized for an Ecstasy overdose Thefts 2 Jackets and contents Total Calls 28 "Laguna Beach Police Department does not routinely investigate drunk in public or driving under the influence arrests to determine where the person had been drinking prior to contact with the police. Additional events: 1. January 6, 2002: Manager issued citation for disturbing the peace (citizen complaint). 2. April 6, 2002: Manager issued citation for disturbing the peace (citizen complaint). 3. April 14, 2002: A patron inside the business calls police to report a large fight, officers note chairs had been thrown around and observe minor damage, no combatants located. 4. May 5, 2002: At 2:30 am, there is a medical aid call reporting a drug overdose, the manager tells officers he is unaware a problem but they find the victim on the floor reportedly just five feet away. 5. May 19, 2002: Call of six males fighting with the bouncers in the street in front of Club M, two arrests. Page 6 of 9 6. June 28, 2002: Club Mosun receives a 25 -day A.B.C. License suspension (10 day stay), which, we understand, is under currently appeal. 7. August 19, 2002: At 11:35 pm, police and fire personnel respond to a possible overcrowding. The Fire Dept. determines the business appears overcrowded and unsafe. They contacted club management and instructed them to stop all patron entry and to evacuate the lower floor. Club management agreed to stop allowing people in but according to Laguna Beach Police reports, refused to clear the ground floor. A count was made at closing and the total was 414 (not including employees). Newport Beach Police Services Information For Newport Beach police services information, refer to the attached report by Crime Analyst Paul Salenko. Based on our local history with similar large night club -type business models, and with the recent experiences at the Laguna Beach operation, we are projecting the applicant's proposal will result in an increase in police - related activities and calls for police services. The resources required to address these events would detract from our ability to provided police services to other areas of the community. Even if we had no concerns regarding the proposed operation, we believe there is a greater policy /land use issue involved in the approval process for intensifying the alcohol usage in this area of the community. As a result, it is difficult for the Police Department to endorse the proposed intensified Use Permit. Accordingly, we believe the decision more appropriately should be left to the Planning Commission and/or City Council based on the said impacts. Should a Use Permit be granted, we recommend the following conditions: Signs and Displays There shall be no exterior advertising or signs of any kind or type, including advertising directed to the exterior from within, promoting or indicating the availability of alcoholic beverages. Interior displays of alcoholic beverages or signs that are clearly visible to the exterior shall constitute a violation of this condition. Hours of Operation The recommended hours of operation are 6:00 am to 2:00 am. Preventive Design If an outdoor patio is approved, conditions should be developed to mitigate any potential noise generated by patrons, music, loud speakers /paging systems, etc. that could disturb residents in nearby hotels or businesses in the area. The Radison Hotel, for example, is located across the street with some rooms that face the subject property. These rooms are 544 feet from the applicant's building and 382 feet from the nearest portion of the parking lot (see the photograph below). Additionally, ABC will require some type of fence and signage to delineate any patio areas approved for the consumption of alcoholic beverages. If such consumption is approved, staffing should be required to ensure compliance with state and local laws, and the conditions of ABC licenses and local permits. 5� Page 7 of 9 Consider appropriate conditions and design requirements that will ensure the parking areas for customers are adequately lit during hours of darkness. Likewise, measures should be developed that would address potential nuisance violations by customers in the parking lots (loitering, littering, drinking in public, etc.) Parking lot areas utilized by customers should be readily visible to nightclub staff and/or by police patrol cars passing on adjacent streets. Security Require the applicant to develop an approved security plan designed to ensure compliance with applicable state and local laws, and the conditions of the ABC license, the use permit, and other such permits issued by the City. Employee Training Require all owners, managers and employees serving, delivering and/or selling alcoholic beverages to undergo and successfully complete a certified training program in responsible methods and skills for serving and selling alcoholic beverages. Special Events �a. Page 8 of 9 For the purposes of this application, staff may also want to consider establishing conditions that would require a Special Event Permit. A Special Event Permit may be required for any event or promotional activity outside the normal operational characteristics of the proposed operation. For example, events likely to attract large crowds, or events for which an admission fee is charged, those that include any form of party or contract promoters, any form of on -site media broadcast (live or taped for future broadcast, any event produced by third -party or contract promoters or any other activities as specified in the Newport Beach Municipal Code to require such permits. Other Recommended Conditions In addition the Police Department has determined the following condition would be appropriate for the Conditional Use Permit for the business: No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the license. 2. No "happy hour" type of reduced price alcoholic beverage promotion shall be allowed. 3. The applicant shall not share any profits, or pay any percentage or commission to a promoter or any other person, based upon moneys collected as a door charge, cover charge, or any other form of admission charge, including minimum drink orders or the sale of drinks. A. The quarterly gross sales of alcoholic beverages shall not exceed the gross sales of food during the same period. The applicant shall at all time maintain records, which reflect separately the gross sale of food and the gross sales of alcoholic beverages of the licensed business. Said records shall be kept no less frequently than on a quarterly basis and shall be made available on demand. 5. There shall be no on -site radio, television, video, film or other electronic media broadcasts, including recordings for the broadcast at a later time, which include the service of alcoholic beverages, without first obtaining an approved Special Event Permit as issued by the City of Newport Beach. 6. At all times when the premises is open for business, the sale of alcoholic beverages shall be made only in conjunction with the sales of food, available from a full- service menu, to the person ordering the beverage. 7. There shall be no dancing allowed on the premises without first obtaining a permit from the City. 8. There shall be no live entertainment of any type on the premises at any time without first obtaining a permit from the City. 9. The rear door of the restaurant at the alley shall remain closed at all times the restaurant is operating. The use of the rear door shall be limited to deliveries and employee use only. Ingress by customers shall be prohibited. 12 Page 9 of 9 10. Require occupancy posting that would ensure employees, patrons and/or public safety personnel have the ability to readily determine the occupancy load in each section of the building and patio area(s). 11. Require physical control points or other appropriate measures that would enable employees to regulate patrons in order to comply with occupancy limits. 12. Consider addressing requirements for activities requiring special event permits as issued by the City and establishing a cap for the number of such permits issued during a calendar year. 13. Prohibit the applicant from maintaining or constructing any type of enclosed room intended for private use by patrons or customers for any purpose. Our concern is not with banquet facilities used for contracted events such as a wedding receptions or company holiday parties. Private rooms (i.e. "VIP lounges" with private access) make it difficult for public safety personnel to inspect for compliance with state and local laws, and the conditions of ABC licenses and local permits. Alcoholic Beverage Control License Upon approval of the CUP, will condition the ABC license as necessary to maintain the health, safety and welfare of the community. If you may have any questions, please do not hesitate to contact Community Service Officer Susan Sevianne, Vice and Intelligence Unit, at (949) 644 -3705. Aim ewman, Captain Detective Division Commander Wt City of Newport Beach Police Department Memorandum November 11, 2002 TO: Gregg Ramirez, Staff Planner FROM: Paul Salenko, Crime Analyst SUBJECT: Alcohol Related Statistics At your request, our office has reviewed police services data for the Mosun of Newport Beach at 4647 MacArthur Blvd. This area encompasses our reporting district (RD) number 34 as well as part of Census Tract 626.1. This report reflects City of Newport Beach data for calendar year 2001, which is the most current data available. Calls for Service Information City wide there were 55,291 calls for police services during this time, of which 2,780 were in RD 34. A "call for service" is, any contact of the police department by a citizen which results in the dispatching of a unit or causes the contacted employee to take some sort of action, such as criminal investigations, alarm responses, traffic accidents, parking problems, and animal control calls, etc. Crime Information There were 6,955 crimes reported to the Newport Beach Police Department during this period. Of this total, 2,852 were Part One Crimes. Part One crimes are the eight most serious crimes (Homicide, forcible Rape, Robbery, Aggravated Assault, Burglary, Larceny - theft, Auto Theft and Arson) as defined by the FBI in the Uniform Crime Reports. The remaining 4,103 were Part Two crimes. The Part One crime rate for the entire city during this same period was 3,770.24 per 100,000 people. The national Part One crime rate was 4,124.0 per 100,000 people. Crimes RD 34 Newport Beach California* National* Part 1 157 2,852 1,266,714 11,605,751 Part 2 129 4,103 N/A NIA Part 1Crime Rate 981,250.00 3,770.24 3,739.7 4,124.0 The number of active ABC licenses in this RD is 26 ** This reporting district had a total of 286 reported crimes as compared to a City wide reporting district average of 211 reported crimes. This reporting district is 75 crimes or 35.70% above the City wide reporting district average. This location is not within an area where the number of crimes is at least 75% higher than the average of all reporting districts in the City as outlined in the City Council "K -7" policy. a/ Arrest Information There were 9 DUI arrests and 6 Plain Drunk arrests in this area during this same period as compared to 1,769 for the entire city. This RD amounts to .85 % of the DUI /Drunk arrests made in the entire City. According to a recent national study by the Department of Justice, more than 36% of adult offenders convicted of crimes in 1996 had been drinking at the time of their arrest. Arrests RD 34 Newport Beach (DUI/Drunk) 15 1,769 All Arrests 52 3,629 California* National* N/A N/A 1,408,904 9,123,428 Additional Information The Alcoholic Beverage Outlets ordnance states that the Planning Commission shall consider the crime rate in the adjacent reporting districts. The two adjacent reporting districts you requested are RD 35 and RD 36. As you know, RD 35 and RD 36 are primarily residential in nature and RD 34 is primarily commercial. Crimes RD 35 RD 36 Part 1 88 77 Part 2 57 124 Crime Rate 2,925.53 1,761.40 Arrests (DUI/Drunk) 15 14 All Arrests 28 29 Calls For Service 1,356 2,270 Number of active ABC licenses 4 ** 5 ** Note: It is important to remember that when dealing with small numbers any change greatly affects any percentage changes. The population figure used for the Crime Rate was 75,645. *These numbers are from the 2000 Uniform Crime Reports, which is the most recent edition. * *The number of active ABC licenses is the total of all types of licenses known to the police department as of the date of this document. If you are in need of any further assistance, please contact me at (949) 644 -3791. Paul Salenko Crime Analysis Unit �,3 EXHIBIT NO.4 POLICE DEPARTMENT REPORTING DISTRICT MAP 1, EXHIBIT NO. 5 APPLICANT CORRESPONDENCE NIL Project Description & justification Mosun — Panini — M Newport Beach September 2002 Project Description The proposed project is the renovation of an existing two story structure that currently houses two restaurants (one recently closed) and a separate commercial kitchen that is used for menu development. The ground floor is approximately 15,250 s.f. and the second floor 2,400 s.f. Both restaurants, when operating concurrently, possessed liquor licenses and one had a permit for live entertainment. The proposed project would incorporate two new restaurant operations, Mosun Sushi and Panini Mediteranean Cafe, and a multiple use venue, ' M', which would provide facilities for live entertainment, corporate meetings, luncheons and private parties. One operation will cover all three venues with one liquor license covering the entire premises. Proposed Improvements The existing building shell would remain intact with no expansion to the footprint. The building square footage would decrease by the removal of approximately two - thirds (1,800 s.f.) of the second floor which, in the past, was used as a dining area. The portion to be retained would be used for storage only. Small, separate patios would be incorporated to take advantage of the local climate. included would be the creation of a patio at the northwest corner of the building in what is now a loading dock. The Panini Cafe would be located in easterly portion of the building facing MacArthur Blvd. in what is now a Coco's restaurant. The entry on the east side would be retained. Mosun Sushi, which would partially share a kitchen with Panini, would be located in the mid section of the building with the entry being located on the south side of the building as with the previous restaurant. The westerly or rear portion of the building would house 'M' with the entry just to the west of Mosun Sushi. The proposed exterior improvements would be limited to cosmetic building, patio, landscape and site improvements. Cosmetic building improvements would include entry features / facades that help to define the feel of each of the three venues. Patios, paving, water elements, trellises, site improvements and landscaping with theme specific elements will be incorporated to help reinforce each operation's focus. {b 4525A MacArthur Blvd. Newport Beach, CA 92660 Tel: (949) 251 -0444 Fax: (949) 251-0888 February 10, 2003 Mr. Jim Campbell Planning Department City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92658 RE: Mosun lease at 4647 MacArthur Blvd. Dear Mr. Campbell: John R. Saunders President RECEIVED BY PLANNING DEPARTMENT CITY (7 n Ftnronn MEACH AM FAO 18 2003 PM 71819110111112111213141616 I am writing this letter to follow up our conversation regarding parking for Mosun's proposed operation at 4647 MacArthur Boulevard. I am enclosing a plot plan of the site showing 184 parking spaces. We have done some restriping since the time this plan was prepared and we currently have at least 6 additional spaces. Please note that the other two buildings on this property are positioned so as to largely block the Radisson Hotel from any sounds or lights. In addition to the onsite parking, Mosun's will have access to the parking at three adjacent properties that I own: 4500 Campus (58,000 square feet with more than 275 spaces), 4540 Campus (9,000 square feet with 35+ spaces) and 4630 Campus (15,000 square feet with 45+ spaces). Please see the enclosed plan. These three properties consist of 6 multitenant office buildings with a preponderance of small tenants. There are over 130 tenants. Almost all of the tenants have typical office hours; some variation of 8:00 AM to 6:00 PM. While parking will be in common with other tenants, there is virtually no demand for parking on these properties after business hours when Mosun's demand is highest. During the business day, the lowest demand for office parking is generally during the lunch hour. I feel certain that the available parking will be more than adequate for Mosun's needs and that this site will provide some of the best parking for any such venues in Newport Beach. I have spoken with a number of my existing tenants and they are looking forward to the opening of Mosun's operation. Thank you for your help in this matter. Sincerely, John Saunders cc: Gregg Ramirez Massy Farzine Sandy Harrington 7` EXHIBIT NO. 6 DRAFT SECURITY PLAN 6� I. I I I I I Mosun Security Manual Sa _01 Security Plan Mosun Newport Beach The key to our security plan at Mosun of Newport Beach is to educate all Ifmembers of the staff and not only security personnel. All potential staff will be subjected to a rigorous screening process and required to pass a drug test before becoming a part of the Mosun family. It is important that all members of the Mosun team, from busboys to bartenders, are trained with a very strong alcohol and drug awareness as well as problem solving techniques. All staff will be required to undergo CPR training and attend educational ABC classes. Often time's service staff has the ability to reduce and/or eliminate potential security problems before they happen. The proper training and management of the staff will provide them with not only awareness, but also the empowerment to act on their awareness. We expect a properly trained employee will be able to see a potential problem coming, and if our staff at all levels is able to identify a potential problem they will be able to prevent or defuse a potential situation early on. This way, things can be kept calm until security arrives with no escalation of violence. We believe that this is essential to the long- term success of our business and safety of the customers and staff. I -Securit-Trained Approach Mosun will train all security personnel in critical awareness and effective problem solving. An infrastructure will be established to resolve problem without having the situation escalate to a need for law enforcement. The challenge is to retain respect for the guest, deal with the problem and stay in control of the situation. The trained approach will be to: I• Empathize with guest and their situation. • Consider the problem from their point of view • Treat them the way you would like to bttreated. Other key points security personnel will be trained to follow are: Keep out trouble. It is everyone's best interest to keep problem guests from entering the establishment. This rule is the most important part of the security plan. Managers and security personnel will be posted at the doors at all times and trained to spot a problem guests. Listen and maintain eye contact with guests to demonstrate you are paying attention; nod accordingly while making agreeable comments. Do not interrupt the guest. This approach will eliminate more than 80% of all potential problems. If their story is particularly outrageous politely repeat the argument back to them. This approach will eliminate another 10% of potential problems as a guest may realize the absurdity of their argument and back down. �4 10 Security Trained Approach Continued • In the initial phase of contact avoid the use of words such as: no, can't and won't whenever possible. The use of these words will evoke a negative response from the guest. Replace "no" with carefully worded explanations as to why the guest cannot get their way. Use negative words only when absolutely necessary. • Make requests and give options in the interest of being fair and diplomatic. • Always be in control of the situation. There will be cases when the guest will not let you work with them. In this case the situation can escalate if you do not maintain control. • Emphasize policy. Either Mopan operating policy or state law covers most potential problems. Matching the problem with house rules or state law provides security personnel with credibility. • Never get personal. It is natural for a guest to get angry with an employee and for the employee to feel attacked. Avoid using self describing words like "I" or "me ", when "we" or "the bar" or the establishment" is more appropriate. Practice self - control when the desire is to comment negatively. The closest you should ever get to a personal debate is to show empathy, this will show the employee's willingness to help. • Always be firm. As a guest's negative position escalates prepare to subdue the situation with an increaser in tone. In a non - threatening tone • Tell the guest that their behavior is not appreciated. Always keep the interest of safety and professionalism in mind. • In extreme instances drastic measures may be called for. Stay calm, keep it impersonal and call for a manager. If the incident requires immediate attention to suppress the situation, radio other security personnel for back up. • Always remember we always have the right to refuse service to anyone. The right to refuse service is an option, provided refusal is not based on racial, age, or gender preferences. The right to refuse service should not be invoked to provoke an already or win an argument. This policy should only be used to keep out potentially problematic customers or resolve a problem in an appropriate manner. 14, n --General. Duties As a member of Mosun's security staff you will be well trained and execute your duties as professionals. General duties of security persons are to safeguard life and property on business property through a constant and visible presence, and to render aid and assistance to guests and employees in a courteous and diplomatic manner. In addition to specified duties mentioned herein, the following will be expected of all security personal: • Conduct continuous walking patrol of your assigned work station • Prevent any loitering of persons without legitimate business associated with Mosun activities • Immediately report crimes in progress or fires in the general vicinity I• Remain in public view at all times • Keep complete and accurate records of activity and incidents occurring at the establishment and submit them to a manager • Be on time when reporting for shifts and report to management fully t prepared to present a positive and professional image. 4 � I. LJ Dress Code For Security Personnel • Security staff is to wear black cargo pants. Black Security T -shirts with Company logo and "Security" sign. • Black Shoes (no tennis shoes) • Door Hosts are to wear jackets and no baseball caps. • Each security shall be equipped with a Motorola Spirit MU21 CV radio and ear peace for effective communication. • It is mandatory to carry a black MAG -LITE flashlight. • Exterior security persons will be required to wear yellow jackets with the company logo so they are more visible and identifiable from the crowd. 5 n s1wif - Duties Each member of the security team will have very specific duties and work stations. All security personnel will be expected to know the duties they are to perform as it varies between the different workstations. The effectiveness of the security team rests heavily on each individual's knowledge of the duties as they apply to the area they are working. The head of security will oversee all security on a nightly basis. The head security will answer directly to the general manager or manager on duty and all major decisions are to primarily be run through the general manager. Upper management should be the last line of defense in all situations. The chain of command in all security matters is as follows: General Mana,evManager on Duty Head of Security 2. V I a Head of Securitv The head of security will be responsible for handling any and all incidents in an effective and diplomatic manor, and expected to be able to control any potentially negative situations before escalation. The head of securities duties are as follows: • Serves as bridge of communication between all security and.upper management. • Responsible for hiring and training all security staff. They will also be responsible for overseeing security for the duration of their shift. • Responsible for scheduling of security personnel and assigning their stations for their shift. • Act as a "floater" throughout the interior and exterior of the building during operating hours. 7 I I (7d Door Host The door host is the first person the patron sees and sets the tone for the style and attitude of the club. The true function of the door host at Mosun Newport Beach • Be responsible for "in and out" counters to monitor the number of people in the facility at any given time so as not to exceed the maximum capacity. \IV is to provide access control and screen those who enter. The door host is the first line of defense against potential problems inside the restaurant and club. Door host duties are as follows: • Stand at the door and check ID's using a Driver's License Verifier (ViAge Verifier Ver 3.03) to assure each patron is of legal age and have valid picture identification to enter the establishment and is dressed appropriately. • Any person with no proper identification or under age of 21 will not be allowed into the Club. NO EXEPTIONS. Not complying with this law will result in disciplinary action, including termination and prosecution. • If there is a question in regards to validity of identification, first ask for a second form of identification, if one is not available, please get Head Security or MOD and he/she will make the appropriate decision. • Prevent admittance of those who are obviously intoxicated or who have previously caused trouble inside the club. • Enforce the "86" policy in regards to objectionable patrons who have been barred from entering the establishment for a designated period of time. • Monitor patron conduct on the sidewalk immediately outside the establishment. • Monitor the queue area for noise, crowd and line control and ensure no e alcohol is being consumed. • Be responsible for "in and out" counters to monitor the number of people in the facility at any given time so as not to exceed the maximum capacity. \IV [1 - Exterior..Security Personnel assigned to exterior functions shall be responsible for general duties specified herein as well as: • The safety of patrons while on the sidewalk or any area on the exterior of the establishment including adjacent public areas • Guests entering and leaving the establishment and guest within the parking lot • Security of patron vehicles while parked in the parking lot under Mosun control • Monitor the queue area for noise, crowd and line control and ensure no alcohol is being consumed. • Removal of unruly or intoxicated persons from the exterior of the establishment and/or parking area or detention of persons for responding police personnel at the direction of authorized management representatives. f 9 n 0 Floor Person and Patio Securitv A nightclub is about providing hospitality where people can relax and have a good time. The goal of the floor person is to see that everybody has a good time within the establishment limits. The best floor person is personable, friendly and can talk to people without appearing threatening or intimidating. The goal should be to not have to "bounce" anyone, but to talk to people. The mere presence of a well trained floor person will remind patrons their conduct is being scrutinized. A good floor person will have the ability to use eye contact and body language to let troublesome patrons know there conduct is reaching the threshold for unacceptable behavior before a problem escalates. Specific duties that make this possible are as follows: • Monitor the crowd continually to ensure everyone is exercising proper behavior. • "Manage" the patrons inside the establishment. See to it that no one becomes overly aggressive and spoils the mood. • Circulate throughout the establishment and be easily identifiable as a club employee and be constantly visible to all patrons. • Continually be evaluating the conduct and attitude of the patrons and watch for changes in behavior; recognize negative behavior and begin to manage the patron • Monitor the dance floor for glass bottles or drinking glasses, and remove immediately. Glassware is prohibited on the dance floor. • Coats are not allowed on the dance floor for security reasons. Floor persons and bouncers are to direct all patrons with purses and or coats to the coat check. • If a patron is smoking inside it is the floor person's job to give a verbal warning. If the verbal warning is ignored the floor person or bouncer is to call the head of security or manager on duty. 10 bk L I I -- - -- Assigned Work Stations Each Security Guard will be assigned to a specific numbered station (See attached floor plan with station numbers). You must not leave that area unless it is absolutely necessary or if you have manager or supervisor approval. The stations are as follows: Two security persons will be assigned to the exterior of the building. One security person to oversee the main sidewalk, valet area and parking lot (X -1) and one posted for the queue area and the additional parking lot (X -2). • There will be three security persons assigned to the main entries of the restaurant and club (D1, D2 and D3). • The outdoor cigar and smoking lounge will have one security person posted at the entrance (P -1) and one security person posted at the emergency exit (P -2). Three floor persons will be posted throughout the nightclub (F -2, F -3, F -4) for the purposes of overseeing the dance floor, keeping the aisles clears for safety purposes and cocktail waitress maneuverability and crowd control. One additional security person will be posted in the dining room (F -1) for any crowd control and overall safety of the patrons. • Two security persons will be hosted in the VIP area. One will act as a VIP Host and VIP area bouncer (V -2) and one will be posted at the VIP entrance as a door host (V -1). 12 k46 nn r� Should security personnel observe a fire in the facility they shall be responsible for the following: • Notify the Fire Department of the nature and location of the fire • Notify patrons, employees and building management verbally and/or through the use of on -site fire alarm equipment • Assist in the orderly evacuation of patrons and employees • After evacuation, prevent injury to persons by providing crowd control at the fire scene until relieved by emergency personnel • Render required medical first aid pending arrival of responding emergency personnel • Assisting in completion of required investigations as requested by responding fire and police personnel • Complete a report of incident form for Mopan corporate purposes 13 \�k is n Crimes in Progress Should security personnel observe what appears to be, or what they perceive as a crime in progress the following protocol shall be observed: 8 • Notify authorized manager and the police 1 • Radio head of security for assistance • If it may be possible to accomplish safely, without the possibility of harm to the security personnel or those around them, interrupt the criminal activity to prevent completion of the act where a crime against a patron or employee is involved. • Obtain physical descriptions and/or license numbers of involved persons and/or vehicles to assist in the later identification of the perpetrators • Observe criminal activity closely so as to be able to provide a complete witness statement of events for police reporting purposes. • Assist in completion of required investigations as requested by responding police personnel • Complete a report incident form for management and corporate purposes. 14 �1 Medical Emergencies Emergency and safety preparedness is an essential part of your job training. The safety training will teach you how to do your job safely on a day -to -day basis. Mosun will provide the safest possible environment for both employees and patrons, but there are always unforeseen emergencies that can occur. It is essential that all employees be properly trained in emergency situations. All Mosun employees will be required to learn CPR (cardiopulmonary resuscitation), as well as basic first aid. All employees must also be able to recognize those rare times when something goes seriously wrong and know how to respond. All employees must know the companies Emergency Response Plan and will be tested on the materials provided therein. Through proper training be able to spot symptoms of emergency situations such as drug overdose, food poisoning, and health related problems. If an employee or patron is experiencing one of the following, call 911 immediately: • Loss of consciousness • Intolerable and uncontrollable pain • Severe shortness of breath • Chest pain • Uncontrollable bleeding ■ Poisoning (Please note: if possible, call your poison control center first and ask for immediate home - treatment advice, then bring poisoning agent with you to the doctor) • A major injury, such as a head injury • Stupor, drowsiness, or disorientation that cannot be explained Emergency Exits Knowledge of emergency exits is essential to know, always direct patrons to main and emergency exits, especially in the following situations: Fires, either inside the building or in the surrounding area. • Explosions caused by gas leaks or chemical reactions. Power outages caused by natural disasters or internal electrical problems. • Building collapse or major structural failure. 16 EXHIBIT NO. 7 AIR PHOTO OF SUBJECT AND SURROUNDING PROPERTIES V �L ! i �1, fe i r tIN+ I 1 711 l y i W t �n AY 11 A r" k p � \ • r A _ 6 r .. ,Nk- Wll s y \ EXHIBIT NO. 8 PROJECT PLANS 15 5 c F'- _Z U Za jig � axe $gao. � ��ge ?5�pny CS g b It g m o � 2 p� a r Z Q CL w V) a YI„ O 91 ; 0 A 5 z� J L Y+ J J" m q clu 0 �a e