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HomeMy WebLinkAbout20 - Request of Newport Restaurant Partnership, d.b.a. Hooters Restaurant, to Modify and Remove Conditions on its Alcoholic Beverage LicenseEWPoR, CITY OF NEWPORT BEACH Hearing Date: March 8, 1999 COMMUNITY AND ECONOMIC DEVELOPMENT Agenda Item No.: 20 PLANNING DEPARTMENT Staff Person: Patricia L. Temple 3300 NEWPORT BOULEVARD (949) 644 -3200 NEWPORT BEACH, CA 92658 (949) 644 -3200; FAX (949) 644 -3250 REPORT TO THE MAYOR AND CITY COUNCIL SUBJECT: Request of Newport Restaurant Partnership, d.b.a. Hooters Restaurant, to Modify and Remove Conditions on its Alcoholic Beverage License ACTION: Authorize the Mayor to forward a letter to the Department of Alcoholic Beverage Control objecting to the requested modification and removal of conditions. Backizround Effective January 1, 1998, Section 23803 of the Business and Professions Code was amended to require the Department of Alcohol Beverage Control (ABC) to notify the local governing body of any petition to remove or modify conditions on an alcohol beverage license. The local goveming body, the City Council in this case, has 30 days to object to the modification or removal of ABC license conditions. An objection by the local governing body will then require the ABC to hold a hearing if the department recommends approval of the petition. On February 22, 1999, the City Council received correspondence from the ABC, informing it of the request of Newport Restaurant Partners, d.b.a. Hooters Restaurant, for modification and removal of conditions on its alcohol beverage license. Discussion Request of Hooters Restaurant Hooters has requested the following changes to the conditions of its alcohol beverage license: • Delete Condition 6, which prohibits live entertainment and dancing. • Modify Condition 7, to allow live entertainment, patron dancing, recorded music, television and other forms of entertainment. • Delete Condition 8, which prohibits exterior advertising which promotes or indicates the availability of alcoholic beverages. • Delete Condition 9, which requires all doors and windows to be closed after the hour of 7:00 PM. • Modify Condition No. 14, to allow up to four (4) coin operated games. • Delete Condition No. 15, which limits the service of alcoholic beverages to containers less than 12 ounces. • Delete Condition No. 16, which prohibits reduced price drink specials. • Delete Condition No. 18, which prohibits any portion of the premises to be "private" for the purpose of dispensing alcoholic beverages, such as recognizing membership cards, keys, or passes which entitle the holder entry or preferential admittance, service or exclusive use of any portion of the mentioned premises. In regards to these requests, two of the proposed changes to license conditions would require an amendment to the Use Permit of the restaurant. Specifically, an amendment to the restaurant's Use Permit allowing dancing was approved in 1989, but this activity has not been conducted at least since 1994, which is the date of the existing ABC license with a condition prohibiting this activity. Section 20.91.050 D of the Newport Beach Municipal Code provides that a Use Permit shall lapse if the exercise of rights granted by it is discontinued for 180 consecutive days. Therefore, the Use Permit for dancing has lapsed, and approval of a new Use Permit for dancing is required. Further, the existing Use Permit requires all doors and windows to be closed at any time live entertainment and/or dancing is provided. Since these types of activities are typically offered in restaurants after the hour of 7:00 PM, the request to allow doors and windows to be open after that hour would not be consistent with the existing Use Permit condition in this regard. Additionally, the Newport Beach Municipal Code defines a Commercial Recreation establishment as having three or more coin operated game machines. The proposal to add four such games will place the business into this land use classification, which also requires the approval of a Use Permit. Therefore, that aspect of the request would not be allowed, unless the Planning Commission first approves a Use Permit. In light of the desired changes to the operational characteristics of the restaurant, staff of the Police Department does not recommend that the conditions regarding external advertising, container size, reduced drink price promotions, or private parties be deleted until the project is reconsidered through the Use Permit process. (See attached memorandum from the Police Department.) Staff has prepared a letter to the ABC, objecting to the petition to revise and delete alcohol beverage license conditions, for the consideration of the City Council. Procedures for City Review of ABC License Modifications A similar request for Speedway Restaurant was considered by the City Council last year. The report prepared for that request included a discussion of the possibility that the City Council could be allowed to delegate the responsibility for such determinations to the Police Department. However, the Department of Alcoholic Beverage Control has not yet established the procedures for delegation of this activity. Therefore, City Council action is still required at this time. Hooters Restaurant March 8, 1999 Page 2 Subrnitted by: SHARON Z. WOOD Assistant City Manager Attachments: 1. Memorandum from Police Department 2. Draft letter to ABC 3. February 22, 1999 letter from ABC with attachments Prepared by: PATRICIA L. TEMPLE Planning Director Hooters Restaurant March 8, 1999 Page 3 City of Newport Beach Police Department Memorandum February 26, 1999 To: Patricia L. Temple, Planning Director From: Kimberly Wymer Subject: Modification of Hooters ABC Conditions Per your request we have completed a review of the modification of conditions requested by Bemard and Associates representing "Hooters," located at 4206 Newport Boulevard. Location History: Hooters began operation in 1994. Prior to Hooters, the building housed The Red Onion. The Red Onion had a history of noise related calls that disturbed an area resident in the trailer park across from the location. Due to the operational similarities, the conditions for Hooters were recommended to minimize potential negative impacts to the surrounding area. Furthermore, other restaurants along the waterfront are similarly conditioned. Due to the high concentration of restaurants and bars, these conditions are recommended to reduce the potential for noise complaints and to preserve the health, safety, morals, comfort and general welfare of persons residing and working in the neighborhood. The Newport Beach Police Department is required to spend a substantial amount of time and resources policing this area. The majority of the problems we tend to encounter include public drunkenness, noise complaints, DUI enforcement, assaults, narcotic related offenses, and public nuisance offenses such as urinating in public. The area also experiences heavy vehicular and pedestrian congestion on weekends, holidays and during the summer months. For police activities and service information, refer to the attached report by Crime Analyst Paul Salenko. Applicant's request for modification/deletion of conditions - 1. Condition 6 specifies "There shall be no live entertainment or dancing Permitted on the Premises at any time." The applicant has asked to delete this condition in order to allow live entertainment and dancing. We believe the addition of live entertainment and dancing would change the operational characteristics of the business from a restaurant to a nightclub. This in tum would generate increased noise, congestion, parking and police calls for service to the area. We do not recommend any changes to the existing condition. 2. Condition 7 states "Pre- recorded music shall be the only entertainment Provided Further, any noise that is generated from within the licensed Premises, including but not 41 limited to customers, prerecorded music or television, shall not be audible beyond the area under the control of the licensee, nor shall such noise disturb the neighborhood. " The applicant is requesting a modification to allow live entertainment, patron dancing, recorded music, television and other forms of entertainment. As stated above, we believe the addition of live entertainment and dancing would change the operational characteristics of the business from a restaurant to a nightclub. This in turn would generate increased noise, congestion, parking and police calls for service. This business has violated their existing conditions three times. In 1448, the Police Department responded to the location 43 times for a variety of service - related calls. We do not recommend any changes to the existing condition. 3. Condition 8 specifies "There shall be no exterior advertising 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, which are clearly visible to the exterior, shall constitute a violation of this condition." The applicant has requested the deletion of this condition. Regardless of any specific advertising needs of this establishment, we are not aware of any other restaurants in the area that are allowed to have exterior advertising for alcoholic beverages. This area has a high concentration of alcoholic beverage outlets with nearby residential units. Such promotional displays and exterior signs could negatively impact the area by encouraging alcohol - related offenses and calls for police services. We do not recommend any changes to the existing condition. 4. Condition 4 requires that "All Exterior doors and windows shall be kept closed after 7:00 P.M. except to allow entry, during any emergencies and to permit deliveries. Said door(s) shall not consist solely of a screen door or a ventilated security door. " The applicant would like to delete this condition. We are concerned that noise generated from within the establishment would disturb nearby residential areas. It has been our experience with establishments located in similar bay front properties that loud talking and music will carry across the bay and disturb nearby residents. This will result in increased disturbance - related calls for service to the police department. We do not recommend any changes to the existing condition. 5. Condition 14 states "There shall be no pool tables or coin- operated games maintained upon the premises at any time. " The applicant has asked for a modification to allow up to four coin- operated games. We believe that allowing coin operated games within the location could create an environment that encourages the presence of minors (patrons under the age of 21 years). We believe it is important to attempt to deny underage persons an opportunity to access alcoholic beverages. This business has been cited in the recent past for sales of alcoholic beverages to a minor. We do not recommend changes to the existing condition. 6. Condition 15 provides that "No beer or distilled spirits shall be sold in glass bottles or containers larger than 12 ounces. " The applicant's request is to delete this condition. Larger containers can have the potential to contribute to excessive drinking that can lead to alcohol - related problems in the area. We also believe that larger drink containers can be used as dangerous weapons during fights. We do not recommend changes to the existing condition. 7. Condition 16 states "There shall be no reduced price drink specials. " The applicant has requested a modification to allow special drink pricing and promotional specials. Since the business opened, the operator has been advised on seven occasions that promotions and drink specials are not permitted under the existing ABC license. The last violation occurred on January 14, 1444, and resulted in an administrative action by ABC. Because of the high concentration of restaurants and bars in the area, we believe drink specials would contribute to a higher number of alcohol - related arrests. This can be demonstrated by the already high percentage of alcohol related arrests (64.67 %). Refer to the attached report by Crime Analyst Paul Salenko. We do not recommend any changes to the existing condition. 8. Condition 18 specifies "No portion of the premises shall be deemed to be "private" for the purpose of dispensing alcoholic beverages to selected patrons. In no case, shall the licensee recognize any form of membership cards, keys or passes which would entitle the holder entry or preferential admittance, service or exclusive use of any portion of the mentioned premises. " The applicant is seeking to delete the condition. We believe the removal of this condition, when combined with the request for live entertainment and dancing, will significantly change the operational characteristics of the business from a restaurant to a nightclub. We believe a nightclub type of operation would increase noise - related disturbances, traffic congestion, and parking problems in the area, which would then result in an increase in police calls for service. We do not recommend any changes to the existing condition. Comments: It is the opinion of the Police Department that any of the proposed modifications would have a negative impact on the health, safety, morals, comfort and general welfare of persons residing and working in the neighborhood. Such changes would likely result in increased alcohol - related offenses and police calls for service in the area. We do not recommend changes or modifications to the existing conditions to the ABC license. Prepared by: CSO Kim Wymer Vice and Intelligence Unit Approved by: Captain Tim Newman Detective Division C. March 8, 1999 VIA CERTIFIED MAIL M.C. Alvarez- Spencer, District Administrator Department of Alcoholic Beverage Control Santa Ana District Office 28 Civic Center Plaza, Room 369 Santa Ana, CA 92701 SUBJECT: Newport Restaurant Partnership, d.b.a. Hooters Restaurant Dear Ms. Alvarez- Spencer, This is to inform you that the Newport Beach City Council objects to the request of Newport Restaurant Partnership, d.b.a. Hooters Restaurant, for the removal and modification of certain conditions on its alcoholic beverage license. Specifically, the removal of the conditions related to live entertainment and dancing, the opening of doors and windows after 7:00 PM and the addition of four coin operated games are not currently allowed by the Use Permit approved by the City for this establishment. An amendment to the Use Permit, approved by the Planning Commission, is required before these activities can be allowed on -site. Until all necessary permit amendments are considered and approved by the City, we also object to the removal of conditions related to external advertising, container size, reduced drink price promotions, and private parties. This is because the effect of removal of these conditions should only be considered in relation to the overall operational characteristics of the restaurant. 7 If you have any questions or need additional information in regards to this matter, please call Patricia Temple, Planning Director, at (949) 644 -3200. Very truly yours, Dennis D. O'Neil MAYOR xc: Investigator Susan Szklany, Dept. of Alcoholic Beverage Control Bob McDonnel, Police Chief File: Use Permit No. 1581 (A) F GRAY DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL Santa Ana District Office 28 Civic Center Plaza Room 369 Santa Arta CA 92701 (714) 558-4101 OFFICE OF THE CITY COUNCIL CITY OF NEWPORT BEACH 3300 Newport BI Newport Beach, _'42-663 Dear Council Members: CERTEF ED MAIL July 22, 1998 RE: NEWPORT RESTAURANT PARTNERSHIP d.b.a. Hooters Restaurant 2406 Newport Blvd. Newport Beach, CA 92663 File: 47- 301212 This is to inform you that pursuant to an amendment to Section 23803 of the Business and Professions Code which became effective January 1, 1998, the Department is required to notify local governing bodies of any petition to remove or modify conditions on an alcoholic beverage license. Please be advised that the above - referenced licensee, whose currently licensed premises is within your jurisdiction, has petitioned the Department to remove or modify certain conditions on their alcoholic beverage license. I have enclosed the following items for your information and consideration: 1. A copy of Section 23803 of the Business and Professions Code. 2. A copy of the existing Petition for Conditional License, which contains the license conditions, and the grounds for their original imposition. 3. A copy of the licensee's letter describing the conditions the licensee is seeking to remove or modify. According to the provisions of Section 23803 BPC, you have thirty (30) days to file a written objection to the modification/removal of these conditions. If you have any questions or need any additional assistance in this matter, please do not hesitate to contact Investigator Susan Szklany at the ahove numher C) MCAS: ss Enclosures Date a a a Copies Sent To: ayor Muncie Member Manager ❑ Attorney i6iy N -P Sin ly,� —7, / M.C. Alvarez- Spencer _= W N N District Administrator N Section 23803 - Business and Professions Code Effective January 1, 1998 Section 23803: Statutes of 1997, Chapter 454: SB 609 (Karnette) Section 2380' ) has been amended to require the department to notify the local governing body of any petition to remove or modify conditions. The local governing body has 30 days in which to object to the modification or removal. A hearing shall be held on the objection if the department recommends approval of the petition. Section 23803 will read as follows: 23803. The department, upon its own motion or upon the petition of a licensee or a transferee who has filed an application for the transfer of the license, if it is satisfied that the grounds which caused the imposition of the conditions no longer exist, shall order their removal or modification, provided written notice is given to the local governing body of the area in which the premises are located. The local governing body has 30 days to file written objections to the removal or modification of any condition. The department may not remove or modify any condition to which an objection has been filed without holding a hearing as provided in Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. Any petition for the removal or modification of a condition pursuant to this section shall be accompanied by a fee of one hundred doIlais ($100). t N BEFORE THE DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL OF THE STATE OF CALIFORNIA IN THE MATTER OF THE APPLICATION OF: NEWPORT RESTAURANT PARTNERSHIP. A Califomia Ltd. Partnership consisting of NEWPORT WINGS. INC /GP. KAPLAN. Larry /LP and 10 Additional Partners None Of Whom Hold 10% Or More Interest DBA: Hooter's Restaurant 2406 Newport Blvd Newport Beach. Ca 92663 for the issuance of On -Sale General (Pub. Eat. Pl.) License under the Alcoholic Beverage Control Act FILE PETITION FOR CONDITIONAL LICENSE WHEREAS. petitioner(s) has /have tiled an application for the issuance of the above - referred to license for the, above - mentioned premises: and, WHEREAS. the local policing agency has objected to the issuance of the applied -for license with the below - listed condition(s); and. WHEREAS. the aforementioned policing agency objection is based on police problems which exist at the applicant premises: and. WHEREAS, the undersigned applicants) is /are desirous to allay the policing agency concern: and. NOW. THEREFORE. the undersigned. applicant(s) do /does hereby petition for a conditional license as follows, to -wit: 1. Sales. service and consumption of alcoholic beverages shall be permitted only between the hours of 9:00 a.m. to 1:00 a.m. 2. The premises shall be maintained as a bona fide restaurant and shall provide a menu containing an assortment of foods normally offered in such restaurants. The items on the menu shall be available up until 1/2 hour before closing. 3. The subject alcoholic beverage license shall not be exchanged for a public premises type license. nor operated as a public premises. Date -Z Z �zs6q Oplicant/Petitioner Witness NEWPORT RESTAURA PARTNERSHIP, A California Ltd. Partnership consi....ng of NEWPORT WINGS, IN,; /GP KAPLAN, Larry /LP and 10 Additional Partners None Of Whom 10% Or More Interest Page Two 4. The sale of beer and /or wine for consumption off the premises is prohibited. 5. The quarterly gross sales of alcoholic beverages shall not exceed the gross sales of food and meals during the same time period. The licensee shall at all times maintain records which reflect separately the gross sales 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. on any property adjacent to the 6. There shall be no live entertainment or dancing permitted on the premises at any time. 7. Pre - recorded music shall be the only entertainment provided. Further. any noise that is generated from within the licensed premises, including but not limited to customers, pre. recorded music or television. shall not be audible beyond the area under . the control of the licensee, nor shall such noise disturb the neighborhood. 8. There shall be no exterior advertising 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 which are clearly visible to the exterior shall constitute a violation of this condition. 4. All exterior doors and windows shall be kept closed after 7:00 p.m. except to allow entry. during any emergencies and to permit deliveries. Said door(s) shall not consist solely of a screen door or a ventilated security door. 10. No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control I of the licensee. 11. The parking lot of the premises shall be equipped with lighting of sufficient power to illuminate and make easily discernible the appearance and conduct of all persons on or about the parking lot. 12. Lighting in the parking area of the premises shall be directed. positioned and shielded in such a manner so as not to unreasonably illuminate the window area of nearby residences. 13. The petitioner(s) shall be responsible for maintaining free of litter the area adjacent to the premises over which he has control. 14. There shall be no pool tables or coin - operated games maintained upon the premises at any time. 15. No beer or distilled spirits shall be sold in glass bottles or containers larger than 12 ounces. 16. There shall be no reduced price drink specials 17. At no time shall there be a minimum drink requirement. Date AK]icant/Petidoner/ -wii'es.s �a NEWPORT RESTAURA PARTNERSHIP, A California. Ltd. Partnership consisting of NEWPORT WINGS, INC /GP, KAPLAN, Larry /LP and 10 Additional Partners None Of Whom 10% Or More Interest Page Three 18. No portion of the premises shall be deemed to be "private" for the purpose of dispensing alcoholic beverages to selected patrons. In no case, shall the licensee recognize any form of membership cards, keys or passes which would entitle the holder entry or preferential admittance, service or exclusive use of any portion of the mentioned premises. This petition for conditional license is made pursuant to the provisions of Sections 23800 throueh 23805 of the Business and Professions Code and will be carried forward in any transfer at the applicant premises. Petitioner(s) agrees) to retain a copy of this petition on the premises at all times and will be prepared to produce it immediately upon the request of any peace officer. The petitioner(s) understand(s) that any violation of the foregoing condition(s) shall be grounds for suspension or revocation of the license. Date1 V e I Witness Ur A licant /Petition,%4/— J'$ BERNARD & ASSOCIATES A PROFESSIONAL ASSOCIATION OF INDEPENDENT ATTORNEYS ATTORNEYS AT LAW 3991 MKARTHUR BOULEVARD. SUITE 350 NEWPORT BEACH. CALIFORNIA 9 2660 TELEPHONE (949)263 -1511 FACSIMILE (949) 263.0229 January 27, 1999 Inv. Robin Crabb Dept. of Alcoholic Beverage Control 28 Civic Center Plaza, Room 369 Santa Ana, CA 92701 Re: Newport Restaurant Partnership dba Hooter's Restaurant 2406 Newport Blvd., Newport Beach, CA 92663 Request for Change of Conditions Dear Inv. Crabb: On behalf of my client, Newport Restaurant Partnership, doing business as Hooter's Restaurant, I respectfully request a change of conditions for the above referenced premise location. The current conditions were placed on the premise due to concerns and problems arising out of the former tenant, the Red Onion. The current operations, as evidenced over the last four (4) years, establishes a proven record that the operators of the Hooter's Restaurant are professional and committed to remaining a good neighbor and citizen of Newport Beach. As such, the conditions previously placed on the license are unnecessary and overly burdensome and should therefore be modified or removed. My client respectfully requests the following changes: Condition 6. be deleted to allow live entertainment and dancing pursuant to a modified Condition 7. Condition 7. be modified to allow live entertainment, patron dancing, recorded music, television and other forms of entertainment as long as noise generated by the premise is not audible beyond the area of control and is not a disturbance to the neighborhood. Properly controlled entertainment and regulation of noise will not impact the neighbors nor tend to create a law enforcement problem. Condition 8. be deleted. The Hooter's franchise requires certain advertising of special events and general advertising that includes exterior media. Condition 9. be deleted because as a waterfront restaurant open doors and windows a common practice and adds to the ambiance of the restaurant operation. Such operation can be utilized as long as noise concerns are properly mitigated. �4 Letter to Inv. Crabb January 27, 1999 Page 2 of 2 Condition 14. be modified to allow up to four (4) coin operated games. Condition 15. be deleted to allow service of alcoholic beverages in containers customarily used in restaurants. Condition 16. be deleted to allow special pricing and promotional specials. Condition 18. be deleted as unnecessary. Enclosed please find a check in the amount of $100.00 made payable to the Dept. of Alcoholic Beverage Control as payment of the condition modification request processing fee. Thanks for all your help and cooperation. If you have any questions, please contact me at your earliest convenience. Enclosure Respectfully submitted, ICHAEL C. CHO 16