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HomeMy WebLinkAboutTaste of Napa (PA2002-074)app Pger� CITY OF NEWPORT BEACH Hearing Date: August 22, 2002 PLANNING DEPARTMENT Agenda Item: 1 3300 NEWPORT BOULEVARD Staff Person: Todd M. Weber NEWPORT BEACH, CA 92658 949 - 6443209 (949) 644 -3200; FAX (949) 644 -3229 Appeal Period: 14 days after final action REPORT TO THE PLANNING COMMISSION PROJECT: Taste of Napa (PA2002 -074) 611 E. Balboa Blvd. SUMMARY: Request for Use Permit No. 2002 -013 to establish an Alcoholic Beverage Outlet (ABO) with Type 20 and Type 42 licenses to permit both retail wine sales and limited, ancillary on -site consumption and wine tasting. The project also includes a request for a waiver of the off street parking requirements. ACTION: Adopt, modify, or deny the applicant's request. APPLICANT: Andra Sachs, Newport Beach LOCATION: Southwest corner of the Washington Street and Balboa Boulevard intersection Introduction and Protect Overview This item was continued from the previous meeting where the Commission directed staff to research a number of specific points related to the applicant's request. Additionally, the applicant was directed to prepare a more detailed and accurate floor plan. Discussion During the review for Use Permit No. 2002 -013, the Commission raised a number of questions concerning the operations of the proposed use, since it differs from other similar requests for alcoholic beverage outlets which involved retail wine sales and wine tasting. The main focus of the questions involved the proposed project plans that were submitted. It was the consensus of the Comrission that the plans presented at that meeting depicted a bar as a major aspect of the proposed use. Questions were raised as to whether or not retail sales would be the primary use. The previous floor plan submitted shows a wine bar counter in excess of 25 feet with space for 12 bar stools (seats). The plans also show 2 interior tables that could accommodate another 10 seats, for a total of 22 seats. It should be noted that all the sales taking place in Taste of Napa would be classified as retail sales, whether they were consumend on -site or not. The information submitted along with the application indicated that Taste of Napa would charge the same price for the wine whether it is consumed on- site or not. The only difference would be the corkage fee associated with on -site consumption. The first question had to do with the reporting of sales: is there a difference between the retail aspects of the business versus the on -site consumption? In discussions with the City's Revenue Department and the State Department of Alcoholic Beverage Control (ABC), this is not something that is typically tracked. The City receives a report that would be based upon the total taxable retail sales for the entire establishment. Discussions with ABC indicated that they only enforce conditions regulating percentage of sales (i.e., alcohol vs. food) for restaurants with bar areas, in order to ensure that the business maintains the restaurant as the primary and principal use. As the applicant suggested, it would be possible to require the reporting of the corkage fees collected within a given time frame. However, any reporting mechanism that is incorporated into the conditions of approval requires a reliance on the applicant for accurate information. The Commission indicated a lack of confidence in the enforceability of such a condition, but it is a monitoring technique available to the Commission. The next question had to do with restricting the retail sales and on -site consuption to strictly wine only. The Assistant City Attorney has indicated, yes, the City can go beyond the ABC license and limit the retail sales to wine only through conditions of approval attached to the use permit. Furthermore, staff's dicussions with ABC resulted with an investigator confirming that if the City requests this limitation, ABC will apply the same wine -only limitation to the ABC license. The applicant indicated after the previous meeting that they would prepare the plans as requested. To date, the plans have not been submitted. Staff has contacted the applicant to remind them of this requirement and they indicated more time was needed. Staff should have the plans prior to the meeting with enough time to conduct a review and gauge whether or not the Commission's concerns were addressed or not. The Commission must determine whether the request is appropriate for the retail use given the operational characteristics and the manner in which it can be regulated by conditions of approval. Staff feels that a greater parking demand is likely due to the proposed seating, which will be reviewed again upon receipt of the revised floor plan prior to the meeting. Staff has received 2 letters in opposition to the request from property owners along Balboa Boulevard since the previous meeting (Attachment 3). The applicant made a statement that it took 6 months to get the request to the Commission hearing. The application was submitted on April 23`d of this year, became complete for processing on May 22nd, and the Commission hearing was on August 8. There were two factors affecting the length of time it has taken to bring this application to hearing. The first was the problem with the original ABC license type the applicant requested: it was for a restaurant and the use permit application proposed no food preparation facilities. This inconsistency led to confusion and delay and resulted in a major change in the project. The second was the fact the Commission hearing that fell on July 4, 2002 was cancelled due to the holiday, postponing cases that preceded this application and necessitated postponing this item. Taste of Napa (PA2002 -074) August 22, 2002 Page 2 of 3 2 Conclusion Staff believes that the findings for approval of the Use Permit can be made, subject to a review of the revised floor plan. Even with a Type 42 license to establish the project as a public premise for alcohol consumption, the Police Department feels that if the project is conditioned properly to limit the overall amount of on -site consumption through limiting the percentage of sales for on- site consumption, it will act more as a retail use. Staff has suggested a condition to monitor this aspect of the business' activity in an attempt to ensure the use doesn't "evolve" into another (beer & wine) bar, but it should be noted that it is a new and unproven method of monitoring. Based upon all of the factors covered in both reports, staff believes that the required findings of the ABO can be met. While the site is not served by ample parking, especially during the busier summer months, the maximum number of parking spaces waived would be 5. Staff feels that the proposed new use, as conditioned, does not change the former retail use in a manner to increase parking demand that cannot be accommodated by the nearby municipal parking facilities and street parking. Additionally, the waiver request can be supported based upon the conditions of approval attached to the Use Permit limiting the operational characteristics of the proposed use. The parking waiver is also largely dependent on the final design of the impending floor plan. Recommendation The Commission has the option to approve, modify or deny the request as proposed. Should the Commission wish to approve or modify the request, Resolution No. 2002 -_ has been prepared for adoption and is included as Exhibit No.L The conditions of approval have been revised to reflect the wine only limitation as well the limitation for percentage of on -site consumption. Submitted by: Prepared by: PATRICIA L. TEMPLE TODD M. WEBER Planning Director /f Associate Planne RfAAU,1 Exhibits Resolution including findings and revised conditions of approval 2. Findings for denial 3. Letters in opposition to the request 4. August 8'h Planning Commission staff report (recycled) Taste of Napa (PA2002 -074) August 22, 2002 Page 3 of 3 5 RESOLUTION NO. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH APPROVING USE PERMIT NO. 2002 -013 (PA2002 -074) FOR PROPERTY LOCATED AT 611 E. BALBOA BOULEVARD THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS, RESOLVES AND ORDERS AS FOLLOWS: Section 1. An application was filed by Ms. Andra Sachs, with respect to property located at 611 E. Balboa Boulevard and legally described as Parcel 6 of PM 221 -30, requesting approval of Use Permit No. 2002 -013 to authorize the sale of alcoholic beverages for off and on -site consumption at a retail wine establishment pursuant to the Alcoholic Beverage Outlet Ordinance (ABO). Section 2. Public hearings were held on August 8 and August 22, 2002 in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California. A notice of time, place and purpose of the meetings was duly given. Evidence, both written and oral, was presented to and considered by the Planning Commission at these meeting. Section 3. The Planning Commission finds as follows: 1. The proposed location of the retail wine establishment with on -site consumption needing 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 of the Specific Plan 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. The use permit pertains to the on -site sales and consumption of alcoholic beverages in conjunction with a retail wine establishment to be opened in an existing building that is designated and zoned for this activity. The use has been conditioned in such a manner to minimize the impacts associated with the on -site consumption of wine, only, as an. ancillary element. The plans, as conditioned, are limited to a maximum number of _ seats and meet the design and development standards for alcoholic sales. 2. The operational characteristics of the proposed use, including the hours of operation, are consistent with other businesses in the Central Balboa commercial district where the project is located. Any change in the operational characteristics, including a change in the hours of operation, the wine tasting or consumption characteristics, the addition of food preparation facilities and meal service, recurring live entertainment activities, etc., would require an amendment to the Use Permit, reviewed by the Planning Commission. Exhibit No. 1 M City of Newport Beach Planning Commission Resolution No. Page 2 of 6 3. The proposed project is consistent with the purpose and intent of Chapter 20.89 of the Municipal Code (Alcoholic Beverage Outlets Ordinance) for the following reasons: a. The convenience of the public can be served by the sale of desired beverages in conjunction with a retail sales establishment that is complementary to surrounding uses in Central Balboa. b. The crime rate in the police reporting district and adjacent reporting districts is not likely to increase as a result of the proposed use. C. The number of alcohol licenses within the report districts 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. d. The percentage of alcohol- related arrests in the police reporting district in which the project is proposed is lower than the percentage citywide. Retail sales and limited ancillary on -site consumption and tasting are not expected to increase alcoholic related crime.. e. There are no day care centers or schools in the vicinity of the project site. Residences exist to the south of the site across an alley. Even though the available on -site parking is accessed from the alley, there is no expected adverse impact on the residential uses in that the on -site consumption and tasting has been conditioned to be limited in such a manner to assure that it remains ancillary to the primary and principal retail nature of the business in selling wine for off -site consumption. 4. The use's proposed location is the particular reason for granting the parking waiver. The project site is approximately 1 block from the Balboa Pier public parking area and has a municipal parking lot located across Balboa Boulevard. Any change in the operational characteristics, particularly a change in the addition of food preparation facilities and meal service, recurring live entertainment activities, etc., would require an amendment to the Use Permit, reviewed by the Planning Commission with any additional waiver considered. The operational characteristics and location of the proposed use are such that a substantial amount of business could be generated by walk up traffic. The peak operational times are anticipated to be during the evening hours when a number of the surrounding businesses are closed. Two municipal parking lots are located in close proximity to be useful in conjunction with the proposed project. These factors are anticipated to reduce the project's trip generation and reduce negative effects of the limited on -site parking available. 6. The project has been reviewed, and it qualifies for a categorical exemption pursuant to the California Environmental Quality Act under Class 1 (Existing Structures). Section 4. Based on the aforementioned findings, the Planning Commission hereby approves Use Permit No. 2002 -013 (PA2002 -074), subject to the Conditions set forth in Exhibit "A." R City of Newport Beach Planning Commission Resolution No. Page 3 of 6 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 22nd DAY OF AUGUST, 2002. AYES: NOES: 11 Steven Kiser, Chairman BY: Shant Agajanian, Secretary City of Newport Beach Planning Commission Resolution No. _ Page 4 of 6 EXHIBIT "A" CONDITIONS OF APPROVAL USE PERMIT NO. 2002 -013 (PA2002 -074) 1. The development shall be in substantial conformance with the approved plot plan, floor plan, and elevations dated Au ¢ust 22, 2002. 2. Use Permit No. 2002 -013 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. 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. The construction plans must meet all applicable State Disabilities Access requirements. Adequate access and exiting must be cleared through the Building Department. Specifically, approval from the State Department of Alcoholic Beverage Control (ABC) is required prior to permit issuance for tenant improvements. 4. Hours of operation shall be from 12:00 PM (noon) to 10:00 PM, Sunday through Thursday; and from 12:00 PM (noon) to 11:00 PM on Friday and Saturday. The alcoholic beverage outlet for which this Use Permit is granted shall be defined as a retail wine establishment selling wine for off -site consumption as the primary and principal use of the project site. On -site consumption of wine, including wine tasting, shall be accessory and subordinate to the principal retail use. The gross receipts for the on -site consumption of alcoholic beverages, including wine tasting, shall not exceed 20% of the quarterly gross sales of the business. The applicant or operator shall maintain adequate records to determine compliance with this condition and shall provide the City with said records by the lst business anniversary date and annually for two additional years. 6. 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. The design for the retail wine establishment and the location and design of the wine tasting area shall comply with the policies and regulations of the State Department of Alcoholic Beverage Control (ABC). 9 City of Newport Beach Planning Commission Resolution No. _ Page 5 of 6 8. The wine tasting areas shall have adequate barriers as required by the California State Department of Alcoholic Beverage Control (ABC). Alcohol consumption shall be limited to wine only; the tasting of hard spirits or beers is prohibited. Loitering, open container, and other signs shall be posted as required by the ABC. 9. No live entertainment or dancing shall be perrriitted in conjunction with the permitted use. Use of exterior speakers for any purpose is prohibited at all times. Upon evidence that noise generated by the project exceeds the noise standards established by Chapter 20.26 (Community Noise Control) of the Municipal Code, the Planning Director may require that the applicant or successor retain a qualified engineer specializing in noise /acoustics to monitor the sound generated by the restaurant facility to develop a set of corrective measures necessary in order to insure compliance. 10. The operator of the retail wine establishment and bar 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: 11. That any change in operational characteristics, hours of operation, expansion in area or other modification to the floor plan, the addition of food preparation facilities or meal service, recurring live entertainment activities, etc., shall require amendment to this Use Permit or the processing of a new Use Permit. 12. Should this business be sold or otherwise come under different ownership, any future owners or assignees shall be notified of the conditions of this approval by either the current business owner, property owner or the leasing agent. 13. The Planning Commission may add to or modify conditions of approval to this Use Permit or recommend to the City Council the revocation of this Use Permit upon a determination that the operation which is the subject of this Use Permit causes injury, or is detrimental to the health, safety, peace, morals, comfort, or general welfare of the community. 14. This Use Permit shall be terminated if the operation is no longer maintained primarily and principally as a retail wine establishment with accessory on -site consumption and tasting. E Between the hours of 7:OOAM and 10:00PM Between the hours of 7:OOAM and 10:00PM Location Interior Exterior Interior Exterior Residential Property 45dBA 55dBA 4OdBA 50dBA Residential Property located within 100 feet of a commercial ro ert 45dBA 60dBA 45dBA 50dBA Mixed Use Property 45dBA 60dBA 45dBA 50dBA Commercial Property N/A 65dBA N/A 6OdBA 11. That any change in operational characteristics, hours of operation, expansion in area or other modification to the floor plan, the addition of food preparation facilities or meal service, recurring live entertainment activities, etc., shall require amendment to this Use Permit or the processing of a new Use Permit. 12. Should this business be sold or otherwise come under different ownership, any future owners or assignees shall be notified of the conditions of this approval by either the current business owner, property owner or the leasing agent. 13. The Planning Commission may add to or modify conditions of approval to this Use Permit or recommend to the City Council the revocation of this Use Permit upon a determination that the operation which is the subject of this Use Permit causes injury, or is detrimental to the health, safety, peace, morals, comfort, or general welfare of the community. 14. This Use Permit shall be terminated if the operation is no longer maintained primarily and principally as a retail wine establishment with accessory on -site consumption and tasting. E City of Newport Beach Planning Commission Resolution No. Page 6 of 6 15. A Special Events Permit (SEP) is required for any event or promotional activity outside the normal operational characteristics of this retail business that would attract large crowds, include any form of on -site media broadcast, or any other activities as specified in the Newport Beach Municipal Code to require such permits. 16. The exterior of the retail wine establishment 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. 17. The alcoholic beverage outlet operator shall take reasonable steps to discourage and correct objectionable conditions that constitute a nuisance in alleys, 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. If the operator fails to discourage or correct nuisances, the Planning Commission may review, modify or revoke this Use Permit in accordance with Chapter 20.96 of the Zoning Code. 18. The type of alcoholic beverage license issued by the California Board of Alcoholic Beverage Control shall be a public premise for limited, ancillary on -site consumption of wine only in conjunction with the principal use of the facility as a retail wine establishment. Any change (including a change in business ownership), modification, or 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. 19. The applicant shall comply with all federal, state, and local laws. Material violation of any of those laws in connection with the use will be cause for revocation of this Use Permit. 20. 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. 21. Any event or activity staged by an outside promoter or entity, where the restaurant 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. 22. The interior area authorized for on -site consumption of wine only in conjunction with a Type 42 license shall be limited as delineated by the approved floor plans. Substantial changes to the floor plans shall require prior approval by the Planning Commission. 23. Approval does not permit the premises to operate as an eating and drinking establishment, restaurant, bar, tavern, cocktail lounge or nightclub as defined by the Municipal Code, unless the Planning Commission first approves a Use Permit. io Findings for Denial Use Permit No. 2002 -013 (PA2002 -074) The approval of Use Permit No. 2002 -013 will, under the circum §tances of the case, be detrimental to the health, safety, peace, morals, comfort and general welfare of persons living and working in the neighborhood, will be detrimental to the general welfare of the City and is not consistent with the legislative intent of Title 20 of the Newport Beach Municipal Code for the following reasons: a) The original floor plan submitted for the project depicted a bar counter in excess of 25 ft. in length, 2 free - standing tables, and included total of 22 seats in an existing building suite of less than 1,000 total interior space. The design lends itself to be operated as a bar use than a retail use as the primary function of the business. The number of existing alcoholic beverage outlets (ABO) within the Balboa Village area is sufficient to serve the on -site consumption needs and convenience of the public. The addition of another ABO with on -site consumption will not enhance the public convenience and would contribute to a condition of over - concentration of liquor licenses. The over - concentration would result in a situation that is 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 be detrimental to the properties or improvements in the vicinity or to the general welfare of the city. b) The proposed design for the tenant space where Use Permit No. 2002 -013 will be located lends itself to be operated or utilized as a bar more than the intended retail use. The applicant has applied for a Type 42 license with the State Department of Alcoholic Beverage Control (ABC) that would authorize the tenant space to be classified as a public premise for the on- site consumption of beer and wine. This license allows activities beyond the Type 20 license that would authorize retail sales for off -site consumption. The Police Department has expressed concern that if the use is operated as bar, the alcohol related calls and arrests will be increased, further straining the limited resources available to the City and potentially impacting surrounding property owners and residents in a negative manner. c) The amount of required parking associated with the project has not been provided, negatively impacting the scarce parking currently available in the surrounding neighborhood. Sufficient parking spaces do not exist on -site nor within close proximity of the site to accommodate the increased intensity associated with the project. The extent of the off - street parking requirement waiver requested is too severe given the existing circumstances surrounding the project site and the community. Exhibit No. 2 August 12, 2002 Newport Beach City Council 3300 Newport Blvd. Newport Beach, CA 92663 Attn: City CounceL Members, Reference: Proposed Wine Bar Location: 611 E. Balboa Blvd., Balboa CA RE C E I V E D '02 AUG 15 A 9 :03 OFF CE ;: - • T'YCLER6 CIi t OF i!E1VP0-RC BEACH Date Copi ent To: Mayor 1 Member Manager Q A rney ❑ Cl r u This Letter is protest a a� inst the applicant for a Wine Bar, located at 611 East Balboa Blvd., Balboa, CA. There are 14 businesses already within four square blocks that all sell wine. They are: CHI -CHI'S NEWPORT LANDING BALBOA VILLAGE MARKET Bi Bi ANNA STUDIO CAFE BALBOA HOTEL BALBOA LIQUOR SHORE HOUSE OPASA THAILAND CLASS OF "'47" PAVILLION'S B. J. PIZZA BALBOA SALOON JAPANESE RESTAUANT The Balboa Village Market has had new ownership in the Last 3 months. They have a Large selection of wines in varied price ranges. The market has Wine Gift Baskets with a large selection of wines, also, which adequately meets the needs of the area. The parking variance could harm other businesses in the area. The market and liquor store already have their own parking which they have to pay for. The addition of a Wine Bar will not enhance the area at all, and wilt just further impact negatively. an area already saturated with 14 wine - related businesses. Thank you for taking the time to consider. s matter. �nt a Id03f. ���d -- Exhibit No. 3 -�¢bo� g2(cb 1 I August 12, 2002 Newport Beach City Council 3300 Newport Blvd. Newport Beach, CA 92663 Attn: City Councel Members, Reference: Proposed Wine Bar Location: 611 E. Balboa Blvd.. Balboa CA RECEIVED 402 Alai 12 P2 :41 OFFICE OF THE C) TY CLERri CITY OF `-iVPORT BEACH Date a\ 4 Copies Sent To: C1OL C 1?cii Member anager ❑ Attorney This letter is protest against the applicant for a'Nine Bar, located at 611 East Balboa Blvd., Balboa, CA. There are 14 businesses already within four square blocks that all sell wine. They are: CHI-CHI's NEWPORT LANDING BALBOA VILLAGE MARKET Bi Bi ANNA STUDIO CAFe BALBOA HOTEL BALBOA LIQUOR SHORE HOUSE OPASA THAILAND CLASS OF `47" PAVILLION'S B. J. PIZZA BALBOA SALOON JAPANESE RESTAUANT The Balboa Village Market has had new ownership in the last 3 months. They have a Large selection of wines in varied price ranges. The market has Wine Gift Baskets with a large selection of wines, also, which adequately meets the needs of the area. The parking variance could harm other businesses in the area. The market and liquor store already have their own parking which they have to pay for. The addition of a Wine Bar will not enhance the area at aL, and will just further impact negatively, an area already saturated with 14 wine - related businesses. Thank you for taking the time to consider this matter. to Iq