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HomeMy WebLinkAbout03 - Newport Beach WineryCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 3 September 28, 2010 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Planning Department Fern Nueno, Assistant Planner 949 -644 -3227, fnueno @newportbeachca.gov SUBJECT: Code Amendment and Interim Study Overlay for the Newport Beach Winery proposed at 869 West 16th Street Conduct second reading and adopt Ordinance No. 2010 -17 relating to Zoning Code Amendment No. CA2010 -005 to apply the Interim Study Overlay District by revising Districting Map Nos. 22 and 25, which will allow for Food Processing uses, including the proposed winery, at a light industrial property located at 869 West 16th Street. DISCUSSION Ordinance No. 2010 -17 was considered and introduced at the September 14, 2010, meeting. If it is the Council's desire, it will be appropriate to adopt the ordinance at the September 28 Council meeting. Environmental Review The project is categorically exempt under Section 15301, of the California Environmental Quality Act (CEQA) Guidelines — Class 1 (Existing Facilities) which exempts minor alterations to existing facilities. Prepared by: a F ueno A sistant Planner by: W. Campdell Planning Director CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 25 September 14, 2010 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Planning Department Fern Nueno, Assistant Planner 949 - 644 -3227, fnueno @newportbeachca.gov SUBJECT: Code Amendment and Interim Study Overlay for the Newport Beach Winery proposed at 869 West 16th Street ISSUE Newport Beach Wine Company and Winery seeks a Zoning Code Amendment and related Study Plan that would allow a Food Processing use, including the proposed winery, at a light industrial property located at 869 West 16th Street. RECOMMENDATION 1) Conduct a public hearing; and 2) Introduce Ordinance No. 2010- (Attachment No. CC 1) approving Code Amendment No. CA2010 -005 with the associated Study Plan and pass to second reading for adoption on September 28, 2010. S ge .� P. a Code Amendment and Interim Study Overlay for the Newport Beach Winery September 14, 2010 Page 3 DISCUSSION The applicant proposes a winery, including wine production with accessory retail sales and accessory wine tasting. The subject property is located in the industrial portion of the West Newport Mesa area, and the adjacent properties are developed with industrial uses. The winery would be located within a 2,500- square -foot suite located within a 20,000- square -foot industrial building. The applicant is applying for a Type 2 (Winegrower) Alcoholic Beverage Control (ABC) License from the State Department of ABC, which authorizes the sale of wine and brandy to any person holding a license to sell wine and brandy (i.e., wholesaling), and to consumers for consumption off the premises where sold (i.e., retail sales). The applicant is proposing a Zoning Code Amendment to apply the Interim Study (IS) Overlay District designation to 869 West 16th Street to allow food processing, which is not an allowed use in the current Controlled Manufacturing (M -1 -A) Zoning District. The IS Overlay District designation is used to implement the 2006 General Plan when a project or use is inconsistent with the current Zoning Code but it is consistent with the 2006 General Plan update. The IS Overlay requires a Study Plan to be approved consistent with Chapter 20.53 of the Zoning Code (Interim Study Overlay District). The draft Study Plan (Exhibit A of the Draft Ordinance) includes a project description and justification, General Plan and Zoning Code analysis, permitted uses, and development standards. When the proposed Zoning Code update is adopted, the Study Plan will no longer be relevant, provided the Draft Code remains unchanged regarding the proposed IG (General Industrial) Zoning District that will replace the M -1 -A District. The proposed Zoning Code update would allow for food processing uses by right in the IG Zoning District and does not have any specific requirements for a Type 2 ABC License. Districting Map Nos. 22 and 25 will be amended if the application is approved to reflect the IS Overlay District application to the subject property. Further application details are available within the Planning Commission staff report (Attachment No. CC4) Planning Commission Action: On August 5, 2010, the Planning Commission adopted Resolution No. 1817 recommending City Council approval of Code Amendment CA2010 -05 with the associated Study Plan. The Commission found that the proposed use is consistent with the General Plan and that it would not be detrimental to the light industrial area. Environmental Review: The project is categorically exempt under Section 15301, of the California Environmental Quality Act (CEQA) Guidelines — Class 1 (Existing Facilities) which exempts minor alterations to existing facilities. The proposed project includes a change in use and interior alterations to a suite inside of an existing industrial building. Code Amendment and Interim Study Overlay for the Newport Beach Winery September 14, 2010 Page 4 Public Notice: This agenda item has been noticed according to the Ralph M. Brown Act; 72 hours in advance of the public meeting at which the City Council considers the item. The agenda item was posted at the church site, City Hall, and on the City's website. Alternatives: The City Council may also approve a modified Study Plan with restrictions; however, the Study Plan will only be effective until the new Zoning Code is adopted. The City Council may also deny the application if any of the Study Plan findings cannot be made. Prepared by: F4tYNbeno Assistant Planner Z Sub itted by: mes W. Ca bell Acting Planning Director Attachments: CC 1 — Draft City Council Ordinance CC 2 — Project Plans CC 3 — Planning Commission Minutes from August 5, 2010 CC 4 — Planning Commission Staff Report 3a Attachment No. CC 1 Draft City Council Ordinance ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING CODE AMENDMENT NO. CA2010 -005 TO APPLY THE INTERIM STUDY (IS) OVERLAY DISTRICT BY REVISING DISTRICTING MAP NOS. 22 AND 25 APPLICABLE TO PROPERTY LOCATED AT 869 WEST 16th STREET AND APPROVING A STUDY PLAN TO ALLOW FOOD PROCESSING USES (PA 2010 -078) WHEREAS, an application was filed by the Newport Beach Wine Company and Winery, Inc. with respect to property located at 869 West 16" Street, and legally described as First Addition to Newport Mesa Tract, Lot 913, Westerly 396 feet, requesting approval of a code amendment to apply the interim study overlay district designation and approval of a Study Plan to allow Food Processing as an allowed use at the subject property in advance of the proposed Zoning Code update; and WHEREAS, as part of the General Plan Implementation Program, the City Council adopted Resolution No. 2007 -3 establishing an interim development review process to provide a mechanism for projects that are consistent with the General Plan but inconsistent with the current zoning regulations. This process requires project proponents to request approval of a Code Amendment to apply the Interim Study (IS) Overlay District zoning designation on the property. A development Study Plan is required to establish development regulations to implement the General Plan; and WHEREAS, the subject property is located within the Controlled Manufacturing (M- 1 -A) Zoning District. The proposed winery is designated as "Food Processing" by Section 20.05.060 (Industrial Use Classifications) of the Zoning Code. Per Section 20.20.020 (Industrial Districts: Land Use Regulations) of the Zoning Code, Food Processing is not an allowed use in the M-1 -A District; and WHEREAS, the General Plan Land Use Element category for this property is Industrial (IG), which provides for a wide range of moderate to low intensity industrial uses, such as light manufacturing and research and development, and limited ancillary commercial and office uses; and WHEREAS, the proposed Study plan provided establishes development regulations to create Zoning Code consistency with the General Plan and is consistent with the provisions of Resolution No. 2007 -003 and Chapter 20.53 (Interim Study (IS) Overlay District) of the Newport Beach Municipal Code; and WHEREAS, this project is categorically exempt under the requirements of the California Environmental Quality Act under Section 15301, of the California Environmental Quality Act (CEQA) Guidelines — Class 1 (Existing Facilities), which exempts minor alterations to existing facilities. The proposed project includes a change in use and interior alterations within an existing industrial building; and N WHEREAS, on August 5, 2010, the Planning Commission conducted a public hearing in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California. A notice of time, place and purpose of the meeting was given in accordance with the Newport Beach Municipal Code. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this meeting. At the conclusion of the public hearing the Planning Commission voted (6 ayes, 1 absent) to recommend City Council approval of the proposed Code Amendment by adopting Resolution No. 1817; and WHEREAS, the City Council conducted a public hearing on September 14, 2010, in the City Hall Councils Chambers, 3300 Newport Boulevard, Newport Beach, California. A notice of time, place and purpose of the meeting was given in accordance with the Municipal Code. Evidence, both written and oral, was presented to, and considered by, the City Council at this meeting; and WHEREAS, In accordance with City Council Resolution No. 2007 -3 establishing the Interim Study process, the following findings and facts in support of such findings are set forth: Finding: A. The proposed plan implements and is in compliance with all applicable policies of the General Plan. Facts in Support of Finding: A -1. The project site is designated as Industrial (IG) by the Land Use Element of the General Plan. The proposed project is consistent with the IG Land Use Category, which is intended to provide for a wide range of moderate to low intensity industrial uses, such as light manufacturing and research and development, and limited ancillary commercial and office uses. Wine production is a moderate to low intensity industrial use that is consistent with the IG General Plan Land Use Category. A -2. The proposed project is consistent with Goal LU 5.5 because the immediately adjacent properties are industrial. The use will not involve new exterior equipment or storage that would detract from the existing aesthetic of the building. A -3. The proposed project is consistent with Goal LU 6.7 because this food production use is contained within an existing building and would not noticeably change the makeup of the district. Approval of the project to allow the proposed use is consistent with Goal LU 6.7 and Policy LU 6.7.1 because it provides an opportunity for entrepreneurship for a food processing use in an established light industrial area. I B. The proposed plan conforms to all applicable design guidelines, such as those included in the Mariner's Mile Design Framework, and any existing Specific Plan design guidelines. Facts in Support of Finding: B -1. There are no design guidelines for this area and the area is not subject to a Specific Plan. C. Any changes from existing zoning regulations that otherwise would apply are justified by compensating benefits of the proposed plan. Facts in Support of Finding: C -1. Changing the permitted uses to allow for "Food Processing" in this IS Overlay District is justified by the benefits of having a new small business in the City. D. The proposed development and /or use and its development and operation as proposed in the Study Plan will not be detrimental to the public health, safety and welfare of the persons residing in or working in the proposed structures or in developments adjacent to the proposed project, properties or improvements in the vicinity or to the general welfare of the City. Facts in Support of Finding: D -1. The properties immediately adjacent to the subject site are being used for industrial uses. D -2. The sale of alcoholic beverages is licensed and controlled by the State Department of Alcoholic Beverage Control (ABC). The wine tasting will be accessory to the wine production use. D -3. There is adequate parking on site to support the existing uses on site and the proposed use. D -4. There will be no outside storage of equipment and the trash receptacle will have a cover, which will prevent any potential negative odor impacts; and WHEREAS, the City Council finds that judicial challenges to the City's CEQA determinations and approvals of land use projects are costly and time consuming. In addition, project opponents often seek an award of attorneys' fees in such challenges. As project applicants are the primary beneficiaries of such approvals, it is appropriate that such applicants should bear the expense of defending against any such judicial challenge, and bear the responsibility for any costs, attorneys' fees, and damages which may be awarded to a successful challenger. THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1: The Study Plan is approved as provided in Exhibit A, which is incorporated by reference herein. SECTION 2: Districting Map Nos. 22 and 25 shall be amended as provided in Exhibit B, which is incorporated by reference herein. SECTION 3: This action shall become null and void and the M- 1 -A -IS District designation for the subject property will be eliminated upon the adoption of the comprehensive Zoning Code update. SECTION 4: If any section, subsection, sentence, clause or phrase of this ordinance is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. SECTION 5: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published once in the official newspaper of the City, and it shall be effective thirty (30) days after its adoption. SECTION 6: This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach, held on the 14th day of September 2010, and adopted on the 28th day of September 2010, by the following vote, to wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS MA ATTEST: CITY CLERK 0 APPROVED AS TO FORM: David R. Hunt, City Attorney For the City of Newport Beach CODE AMENDMENT NO. CA2010 -005 STUDY PLAN FOR 869 WEST 16TH STREET EXHIBIT - A Study Plan For Newport Beach Wine Company & Winery Inc. 869 West 16th Street Newport Beach, CA. Project Description and Justification Proposed Project Newport Beach Wine Company and Winery Inc. (NB Wine Company) has leased and proposed to use property located at 869 West 16th Street, Newport Beach, CA (Premises) to manufacture, bottle, and sell wine. The leased space is part of a large industrial building divided into eight (8) similarly sized units. The subject space is approximately 2,500 SF which includes a small office and employee area (approx. 700 SF) in the front of the building, and the remaining space to be used for wine production, barrel, tanks, case storage, and wine tasting (1800 SF) in the rear. The current space has access to five (5) unreserved vehicle parking spaces. Retail sales will be restricted to weekends only. NB Wine Company will act as a typical winery; bringing in fresh or frozen grapes for pressing or chilled or frozen grape juice, fermenting, producing, barrel fermentation, bottling, and blending wine, allowing tasting, and will sell some wine to consumers from the premises. Wine Making Equipment The facility will have all the necessary winemaking equipment required for the production, bottling and storage of fine wine. Delivery of Grapes and Production of Wine NB Wine Company will purchase both fresh and frozen grapes from growers in Central and Northern California. The grapes will be delivered by commercial carrier /trucking company. The grapes will be crushed and processed into juice to be stored in fermentation tanks located in the production warehouse area. The wine will be monitored and later pumped into barrels for aging. Once aged appropriately, the wine will be bottled, labeled, boxed, and stored for sale. Recycling and Waste Management The production of wine will be as "green" as possible given the size of the production facility. Grape stems, seeds, skins and other natural by- products (e.g., yeast residue and corks) will be removed and composted off site. All other production waste consisting of cardboard, paper and glass will be recycled. Office related waste will be disposed by standard trash disposal. Study Plan CA2010 -005 1 Retail Wine Sales and Tasting Wine will be available for sale to consumers on weekends only or by mail- order. No consumption of purchased wine will be permitted on the premises. Wines will be sold for off -site consumption by the bottle or case. It is anticipated that most wine will be purchased then shipped via common carrier (UPS or Fed Ex) to consumers and retailers. A small tasting bar comparable to Napa Valley will be available for tastings. Tastings to the trade (retailers, restaurants and distributors) will be by appointment during the week and weekends from 11:00 am to 9:30 pm. Retail tasting for consumers will be held on weekends only from 11:00 am to 9:30 pm. Retail tasting will be $10.00 and include a logo wine glass. Retail tastes will be limited to one & one half ounce (1 1/2 oz.) pours with a limit of six (6) total tastes. Wine will be poured by one & one half ounce tastes, not by the glass. Tastings will be supervised by an employee who will also provide information about each wine that is tasted. Justification The current and proposed zoning permits low to moderate intensity industrial uses. The manufacturing of wine is a compatible use as no heavy machinery, loud noises or intense fumes, waste or byproducts are produced. Wine making is similar to food production in that raw natural food /consumable products are processed and packaged for sale. Like food production, winemaking is heavily regulated and inspected as the ultimate product is for human consumption. While not specifically permitted or mentioned in the current Zoning Code, permitting production of wine will not negatively impact the general health, safety or welfare of the public and is consistent with the General Plan. As you are aware, we are a tenant in an existing Industrially Zoned building. Additionally, it will not impact the other users in the building that will continue to operate various manufacturing operations. General Plan Consistency The project site is designated as Industrial (IG) by the Land Use Element of the General Plan. The IG land use category is intended to provide for a wide range of moderate to low intensity industrial uses, such as light manufacturing and research and development, and limited ancillary commercial and office uses. The applicant's proposed use is a moderate to low intensity industrial -type use that would appear to be consistent with the IG General Plan Land Use Category. Zoning The current zoning for the project is M -1 -A (Controlled Manufacturing). The intent of this Study Plan is to set permitted uses and development standards for the Interim Study Overlay District. Study Plan CA2010 -005 2 Permitted Uses The current Zoning Code permits controlled low to moderate intensity industrial uses, but does not specifically permit food processing, however proposed Draft Zoning Code does permit food processing. This Interim Study Overlay District shall allow "Food Processing" as a permitted use. All other permitted uses allowed in the current Zoning Code Section 20.20.020 (Industrial Districts: Land Use Regulations) shall be permitted in this IS Overlay District. Development Standards All development standards addressed in the current Zoning Code Section 20.20.030 (Industrial Districts: Property Development Regulations) and other relevant sections of the Municipal Code shall be applicable in this IS Overlay District, unless otherwise specified below. Lot Dimensions FAR Lot Area: 10,000 square feet Lot Width: 0 feet Industrial FAR: 0.75 Setbacks Front: 15 feet Sides: 0 feet Rear: 0 feet Parking Food Processing: 1 space for eagh 2,000 square feet of gross floor area All other uses: pursuant to Chapter 20.66 of the Zoning Code Landscaping Per Chapter 20.36 (Landscaping Standards) of the draft Zoning Code Per Water Efficient Landscape Ordinance, Chapter 14.17 of the Municipal Code Study Plan CA2010 -005 3 CODE AMENDMENT NO. 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SM._ f ,qty "swc9uxsns•s /ate QFAP4'4`°N� '_e�w - °$ em. NP SOaa nEZO Ea c s N - OPO Na. 91- 4$/(F{ONfi 91811,, PROPBFTx3 ft5C•APF -e7(, /y.941 SCALE or FEET R -2 DUPLEX RESIDENTIAL GENERAL COMMERCIAL FR MULTIPLE FAMILY RESIDENTIAL MANUFACTURING aaAM �" >FAC)veen Wn(F Mu - Q zoo soo coo aoQ 00 OH COMBINING DISTRICTS © UNCLASSIFIED °O't°SA'3Y vn.a°o; , �aA�„ 1aX«iS Sad ro'K3h'N' i a 25 FRONTYARD DEPTH IN FEET SHOWN THUS: -10- Ova. 9a -1 s.N. EVMCR O<e,.aNa ex I exu Nvc. FmN Cam a -z Esl -Fo !i! Attachment No. CC 2 Project Plans 2 eDR' NJPidmweY W IYY•N�yi"!_tl x { r .w.�,noww�.wa.x«we4wn OO •,�*••..,> 1I L- LI, g •pW�14VA6l.YVNM mY44(M I A I I I eaa+oxrru yy i PA2 19-678 f., fA2010 0J HOB � � ]IM1 SI'EP.i 9eacF'flin? "am, :an" ; �,t Attachment No. CC 3 Planning Commission Minutes from August 5, 2010 NEWPORT BEACH PLANNING COMMISSION MINUTES commercial business plaza. The following approvals are requested in order to implement the project: 1. A General Plan amendment to increase the maximum allowabl d\Anendment lent limit for Anomaly Location #6 in Statistical Area L. rea) of the General Plan Land Use Element by 11,54 are feet. to the Koll Center Newport (PC -15) Planner y text to allow an increase to the Allowable Building Are. sional & Business Office Site F by 18,346 net square feet. 3. A tentative P rcel map for commercial condominium purposes, al to combine t existing two parcels (Parcel 1 at 4699 Jambon Road, and Par 12 at 5190 Campus Drive) into a single buildii site. Janet Brown, Associate Planner, ve a brief overview of the staff report with PowerPoint presentation. Meg Shockley corporate council for Raabe, Ware Malcomb Architects, rer Public comment was opened. No Comments were made: Public comment was closed. Premier Investments, and Evan g applicant made comments. Motion made by Commissioner Eaton, seconded by Com ssioner Unsworth, to adopt a resolution, after debate, as follows: Recommen he City Council adopt the Mitigated Negative Declaration, including the Mitig 'on Monitoring and Reporting Program; Approve General Plan Amendment 2008 -007; Approve Planned Community Development Plan Amendment No. 2009 -001; Approve Tentative Parcel Map No. 2010 -006 based upon additional ondition that tentative map be based upon conceptual plan, dated 3-15 -2010. Motion carried with the followina vote: Ayes: I Eaton, Unsworth, Hawkins, McDaniel, Ameri, and Toerge O Noes: None Newport Beach Wine 869 West 16th Street 08/05/2010 ITEM NO. 6 PA2010 -078 The application is for a Zoning Code Amendment to apply the Interim Approved Study (IS) Overlay District designation to 869 West 16"' Street to allow food processing, which is not an allowed use in the Controlled Manufacturing (M -1 -A) Zoning District. The IS Overlay District designation is used to implement the 2006 General Plan when a project or use is inconsistent with the current Zoning Code, while the Code is being updated to reflect the new General Plan. The Page 6 of 8 9 NEWPORT BEACH PLANNING COMMISSION MINUTES 08/05/2010 applicant proposes a winery (wine production with accessory retail sales and accessory wine tasting). Fern Nueno, Assistant Planner, gave a brief overview of the staff report, including a minor change to the project description in the Study Plan. Cora Newman of Government Solutions, representing the applicant and Gus Defalco, applicant made comments and answered questions posed by the Commission. Detective Bryan Moore, Newport Beach Police Department made further comments and was available for questions. Public comment was opened. No comments were made. Public comment was closed. Motion made by Commissioner Toerge, seconded by Commissioner Unsworth, to adopt resolution, as follows; recommend City Council approval of Code Amendment No. CA2010 -005. vote: McDaniel, Ameri, and Toerge None China Palace Use Permit - 2800 West Coast Highway The application is for a use permit to allow live entertainment and cing within an existing full -service eating and drinking est ishment with on -sale alcohol service. Required off - street parkin ' or the project will be provided at an off -site parking lot located a 750 West Coast Highway. Makana Nova, Assistant Pieprier, gave a brief overview of the staff report with a PowerPoint presentation. Scott Peotter, representing the ap 'cant, presented an aerial map depicting restaurants surrounding China Palace o the Planning Commission and staff and made comments. Detective Bry Moore, Newport Beach Police Department made comments. Public comment was opened. Comments were given by the following: Michael Pells, 308 Avenida Carlos Howard Larsen, 407 Kings Place Craig Hudson, Newport Beach resident Dr. Cassidy, Cliff Drive resident Kathy Seymour, Kings Road resident ITEM NO. 7 PA2010 -082 Approved Page 6 of 8 Attachment No. CC 4 Planning Commission Staff Report I CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT August 5, 2010 Agenda Item 6 SUBJECT: Newport Beach Winery - (PA2010 -078) 869 West 16th Street ■ Code Amendment No. CA2010 -005 APPLICANT: Newport Beach Wine Company & Winery; Inc. PLANNER: Fern Nueno, Assistant Planner (949) 644 -3227, fnueno @newportbeachca.gov PROJECT SUMMARY The applicant is proposing a Zoning Code Amendment to apply the Interim Study (IS) Overlay District designation to 869 West 16'" Street to allow food processing, which is not an allowed use in the Controlled Manufacturing (M -1 -A) Zoning District, The IS Overlay District designation is used to implement the 2006 General Plan when a project or use is inconsistent with the current Zoning Code, while the Code is being updated to reflect the new General Plan. The applicant proposes a winery (wine production with accessory retail sales and accessory wine tasting). RECOMMENDATION 1) Conduct a public hearing; and 2) Adopt Resolution No, _ recommending City Council approval of Code Amendment No. CA201,0 -005 (Attachment No. PC 1). INTRODUCTION The subject property is located in the West Newport Mesa area, which contains light industrial, office, retail, multiple -unit residential, and public institutional uses. The subject property is located in the industrial portion of this area, and the adjacent properties are developed with industrial uses. The proposed 2,500 -sq. ft. winery will be located in a 20,000- square -foot building that is located on a 4.34 -acre site that is developed with 6 light industrial buildings. � 4 Newport Beach Winery August 5, 2010 Page 2 m Newport Beach Winery August 5, 2010 Page 3 The applicant is applying for a TYpe 2 (Winegrower) Alcoholic Beverage Control (ABC) License from the State Department of ABC, which authorizes the sale of wine and brandy to any person holding a license to sell wine and brandy (i.e. wholesaling), and to consumers for consumption off the premises where sold (i.e. retail sales). This ABC license allows for wine tastings and all alcohol sales are limited to the product produced on -site. The proposed hours of operation are 10:00 a.m. to 9:30 p.m., daily. Wholesale activities would typically occur during the week (Monday through Friday) and would be by appointment only. The applicant plans to open the facility to the general public on weekends (Saturdays and Sundays) for retail sales. The production process includes fermenting grape juice to make wine. A portion of the juice will come from grapes that will be pressed on -site. After fermentation of the juice to make wine, it will be aged, bottled, labeled, boxed, and stored for distribution and sale. All activities will be within the building and no exterior equipment will be required. The delivery and loading area will be on -site. DISCUSSION Chapter 20.05 of the Zoning Code (Use Classifications) classifies the proposed use as "Food Processing," which is defined as, "establishments primarily engaged in the manufacturing or processing of food or beverages for human consumption and wholesale distribution." The subject property is located within the Controlled Manufacturing (M -1 -A) Zoning District, which "provides areas for a wide range of moderate to low intensity industrial uses and limited accessory and ancillary commercial and office uses," but does not allow Food Processing. As indicated previously, the applicant is requesting the Interim Study Overlay District designation to allow the use at the site in advance of the Zoning Code Update based on the premise that the food processing (including the proposed winery) would be allowed in the Industrial (IG) land use designation of the 2006 General Plan. The IG land use category is intended, "to provide for a wide range of 'moderate to low intensity industrial uses, such as light manufacturing and research and development, and limited ancillary commercial and office uses." The applicant's proposed use is a moderate to low intensity industrial -type use that would appear to be consistent with the IG General Plan land use category and with the following General Plan Goals and Policies applicable to the Industrial Districts: Goal LU 5.5. Districts that provide for the manufacturing of goods and research, and development that are attractive, compatible with adjoining nonindustrial uses, and well maintained. Goal LU 6.7. A general industrial district that transitions between the Hoag Hospital medical and residential community and industrial uses in the City of Costa Mesa, providing opportunities for needed uses that cannot be accommodated elsewhere in Newport Beach. Is Newport Beach Winery August 5, 2010 Page 4 LU 6.7.1. Encourage the development of small - scale incubator industries The proposed project does not contradict Goal LU 5.5 because the immediately adjacent properties are industrial. The use will not involve new exterior equipment or storage that would detract from the existing aesthetic of the building or site. The proposed project is consistent with Goal LU 6.7 because this food production use is contained within an existing building and would not noticeably change the makeup of the district. Approval of the project to allow the proposed use is consistent with Goal LU 6.7 and Policy LU 6.7.1 because it provides an opportunity for entrepreneurship for a food processing use in an established light industrial area. Draft Zoning Code The Draft Zoning Code would designate the project site as Industrial (IG), which is intended, "to provide for areas appropriate for a wide range of moderate to low intensity industrial uses (e.g., light manufacturing and research and development) and limited accessory commercial and office uses." The Draft Zoning Code also classifies the proposed use as "Food Processing," and it would be permitted by-right in the proposed IG Zoning District. Consequently, when the Draft Code is adopted, the proposed use would be allowed without any discretionary review, provided the Draft Code provisions are not changed, The General Plan /Local Coastal Program Impiementation Committee has endorsed these use provisions with their recommendation to adopt the Draft Zoning Code. Alcoholic Beverage Sales and Tasting The current Zoning Code does not have any specific requirements for a Type 2 License and a Type 2 License is not regulated by Chapter 20.89 (Alcoholic Beverage Outlets). The Draft Zoning Code also does not provide any specific requirements for this type of ABC license. The Type 2 ABC License only allows the tasting or sale of wine that is produced on -site and does not limit the size or number of pours. The inherent restrictions of this license type would not allow the use to be operated as a restaurant or bar. This application has been reviewed by the Police Department and they have no objections to the operation. Parking The fight industrial complex that would house the proposed use is developed with six (6) light industrial buildings and a surface parking lot that provides 130 shared parking spaces. Table 1 below provides a summary of parking. M Newport Beach Winery August 5, 2010 Page 5 Table 1 Use Square footage Parking requirement Number of it space required Food Processing 2;470 sf 1 space/2,000 sf 2 Industrial 61,750 sf 1 space/750 sf 83 Storage 20,250 sf 1 space/2,000 sf' 11 Total 84,470 sf 96 * Draft code standard Based upon current and proposed uses, the site contains adequate parking in the shared parking pool to serve existing and proposed uses. Study Plan The Interim Study Overlay requires a Study Plan to be approved consistent with Chapter 20.53 of the Zoning Code (interim Study Overlay District). The plan must at minimum include proposed land uses and development regulations including, but not limited to; permitted uses, setbacks, parking space requirements, and floor area ratio. The draft Study Plan (Attachment PC 2) includes a project description and justification, General Plan and Zoning Code analysis, permitted uses, and development standards. When the new Zoning Code is adopted, the Study Plan will no longer be relevant, provided the Draft Code remains unchanged regarding the proposed IG zone. Districting Map Districting Map No. 22 will be amended if the application is approved to reflect the IS Overlay District application to the subject property. Required Findings Approval of the Code Amendment and Study Plan requires the City Council to 'make mandatory findings for the purpose of implementing the General Plan. The required findings and facts in support of the findings are in the attached draft resolution (Attachment PC 1). Summary Approval of the application would allow the proposed winery in advance of the implementation of the new Zoning Code without any special conditions, which would be consistent with the Draft Zoning Code. The proposed use appears to be consistent with the General Plan and should not prove detrimental to the West Newport Mesa area if operated as a wine production facility consistent with a Type 2 ABC license. Newport Beach Winery August 5, 2010 Page 6 Alternatives The Planning Commission may also recommend approval of a modified Study Plan with restrictions; however, they would only be effective until the new Zoning Code is adopted. The Planning Commission could also deny the application if any of the findings cannot be made. Environmental Review The project is categorically exempt under Section 15301, of the California Environmental Quality Act (CEQA) Guidelines - Class 1 (Existing Facilities) which exempts minor alterations to existing facilities. The proposed project includes a change in use and interior alterations to a suite inside of an existing industrial building. Public Notice Notice of this hearing was published in the Daily Pilot, mailed to property owners within 300 feet of the property, and posted at the site a minimum of ten 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. Prepared by: Fern Nueno, Assistant. Planner ATTACHMENTS PC 1 Draft Resolutions PC 2 Study Plan Provided, by the Applicant PC 3 Applicant's Project Description PC 4 Project plans Submitted by: e. 050 s Tmplt:: 11/23109 FAUserslPLN\SharedCPXs1PAs - 20101PA2010- 078TMCA2010 -005. perptaoex. Attachment No. PC 1 Draft Resolution M A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH RECOMMENDING CITY COUNCIL APPROVAL OF CODE AMENDMENT NO. CA2010 -005 FOR A WINERY LOCATED AT 869 WEST 16TH STREET (PA 2010 -078) THE: PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. An application was filed by Newport Beach Wine Company and Winery, Inc., with respect to property located at 869 West 16th Street, and legally described as First Addition to Newport Mesa Tract, Lot 913, Westerly 396 feet, requesting approval of a node amendment to apply the interim study overlay district. 2. The applicant proposes to operate a winery, which will include wine production with accessory wine tasting and wine sales. 3. The subject property is located within the Controlled Manufacturing (M -1 -A) Zoning District. The proposed winery is designated as "Food Processing" by Section 20.05.060 (industrial Use Classifications) of the Zoning Code. Per Section 20.20.020 (Industrial Districts: Land Use Regulations) of Zoning Code Food Processing is not an allowed use in the M-1 -A District. 4.. The General Plan Land Use Element category for this property is Industrial (IG), which provides for a wide range of moderate to low intensity industrial uses, such as light manufacturing and research and development, and limited ancillary commercial and office uses. 5. As part of the General Plan Implementation Program, the City Council adopted Resolution No. 2007 -3 establishing an interim development review process to provide a mechanism for projects that are consistent with the General Plan but inconsistent with the current zoning regulations. This process requires project proponents to request approval of a Code Amendment to apply the Interim Study (IS) Overlay District zoning designation on the property. A development Study Plan is required that establishes all development regulations for the subject property and provides for implementation of General Plan policies. 6. The subject property is not located within the coastal zone. 7. A public hearing was held on August 5, 2010, in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California. A notice of time, place, and purpose of the meeting was given in accordance with the Newport Beach Municipal Code. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this meeting. 11 Planning Commission Resolution No. Paoe 2 SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. This project is categorically exempt under the requirements of the California Environmental Quality Act under Class 1 (Existing Facilities), which exempts minor alterations to existing facilities. 2. The proposed project includes a'change in use and interior alterations to a suite inside of an existing industrial; building. SECTION 3. REQUIRED FINDINGS. In accordance with City Council Resolution No. 2007 -3 establishing the Interim Study process, the following findings and facts in support of such findings are set forth: Findin A. The proposed plan implements and is in compliance with all applicable policies of the General Plan. Facts in Support of Finding; A -1. The project site is designated as Industrial (IG) by the Land Use Element of the General Plan, The proposed project is consistent with the IG Land Use Category, which is intended to provide for a wide range of moderate to low intensity industrial uses, such as light manufacturing and research and development, and limited ancillary commercial and office uses. Wine production is a moderate to low intensity industrial use that is consistent with the IG General Plan Land Use Category: A -2. The proposed project is consistent with Goal LU 5.5 because the immediately adjacent properties are industrial. The use will not involve new exterior equipment or storage that would detract from the existing aesthetic of the building. A -3. The proposed project is consistent with Goal LU 6.7 because this food production use is contained within an existing building and would not noticeably change the makeup of the district. Approval of the project to allow the proposed use is consistent with Goal LU 6.7 and Policy LU 6.7.1 because it provides an opportunity for entrepreneurship for a food processing use in an established light industrial area. B. The proposed plan conforms to ail applicable design guidelines, such as those included in the Matinees Mile Design' Framework, and any existing Specific Plan design guidelines. Facts in Support - of'Finding: B -1. There are no design guidelines for this area and the area is not subject to a Specific Plan. Tmplt: 04114/10 Planning Commission Resolution No. — Page 3 of 4 C. Any changes from existing zoning regulations that otherwise would apply are justified by compensating benefits of the proposed plan. Facts in Support of Finding: C -1. Changing the permitted uses to allow for "Food Processing" in this IS Overlay District is justified by the benefits of having a new small business in the City. D. The proposed development and /or use and its development and operation as proposed in the Study Plan will not be detrimental to the public health, safety and welfare of the persons residing in or working in the proposed structures or in developments adjacent to the proposed project, properties or improvements in the vicinity or to the general welfare of the City. Facts in Support of Finding: D -1. The properties immediately adjacent to the subject site are being used for industrial uses. 0-2. The sale of alcoholic beverages is licensed and controlled by the State Department of Alcoholic Beverage Control (ABC). The wine tasting will be accessory to the wine production use. D -3. There is adequate parking on site to support the existing uses on site and the proposed use. D4. There will be no outside storage of equipment and the trash receptacle will have a cover; which will prevent any potential negative odor impacts. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: The Planning Commission of the City of Newport Beach hereby recommends City Council approval of Code Amendment No. CA2010 -005 to apply the Interim Study Overlay District amending Districting Map 22 and establishing a Study Plan, subject to the conditions set forth in the Study Plan, which is attached hereto and incorporated by reference. Tmpit: 04/14/10 Planning Commission Resolution No. _ Page 4 of 4 PASSED, APPROVED, AND ADOPTED THIS S'h DAY OF AUGUST, 2010. AYES: NOES: ABSTAIN: ABSENT: BY: Earl McDaniel, Chairman AN Michael Toerge, Secretary Tmpltj 04114119 a 0 Attachment No. PC 2 Study Plan Study Plan For Newport Beach Wine Company & Winery Inc. 889 W. 161h Street Newport Beach, CA. Project Description and Justification Proposed Project Newport Beach Wine Company and Winery Inc. (NB Wine Company) has leased and proposed to use property located at 896 W. 16th Street, Newport Beach, CA (Premises) To manufacture, bottle and sell wine. The leased space is part of a large industrial building divided into eight (8) similarly sized units. The subject space is approximately 2,500 SF which includes a small office and wine tasting area (approx. 700 SF) in the front of the building, and the remaining space to be used for wine production, barrel, tanks and case storage (1800 SF) in the rear. The current space has access to five (5) unreserved vehicle parking spaces. Retail sales will be restricted to weekends only. NB Wine Company will act as a typical winery; bringing in fresh or frozen grapes' for pressing or chilled or frozen grape juice, fermenting, producing, barrel fermentation, bottling, and blending wine, allowing tasting, and will sell some wine to consumers from the premises. Wine Making Equipment The facility will have all the necessary winemaking equipment required for the production, bottling and storage of fine wine. Delivery of Grapes and Production of Wine NB Wine Company will purchase both fresh and frozen grapes from growers in Central and Northern California. The grapes will be delivered by commercial carrier /trucking company. The grapes will be crushed and processed into juice to be stored in fermentation tanks located in the production warehouse area. The wine will be monitored and later pumped into barrels for aging. Once aged appropriately, the wine will be bottled, labeled, boxed, and stored for sale. Recycling and Waste Management The production of wine will be as "green" as possible given the size of the production facility. Grape stems, seeds, skins and other natural by- products (eg. yeast residue and corks) will be removed and composted off site. All other production waste consisting of cardboard, paper and glass will be recycled. Office related waste will be disposed by standard trash disposal. Retail tine Sales and Tasting Wine will be available for sale to consumers on weekends only or by mail - order. No consumption of purchased wine will be permitted on the premises. Wines will be sold for off -site consumption by the bottle or case. It is anticipated that most wine will be purchased then shipped via common carrier (UPS or FedEx) to consumers and retailers. A small tasting bar comparable to Napa Valley will be available for tastings. Tastings to the trade (retailers, restaurants and distributors) will be by appointment during the week and weekends from 11:30 am to 9 :30 pm. Retail tasting for consumers will be held on weekends only from 11 :00 am to 9:30 pm. Retail tasting will be $10.00 and include a logo wine glass. Retail tastes will be limited to one & one half ounce (1 1/2 oz.) pours with a limit of six (6) total tastes. Wine will be poured by one -& one half ounce tastes, not by the glass. Tastings will be supervised by an employee who will also provide information about each wine that is tasted. Justification The current and proposed zoning permits low to moderate intensity industrial uses. The manufacturing of wine is a compatible use as no heavy machinery, loud noises or intense fumes, waste or byproducts are produced. Wine making is similar to food production in that raw natural foodiconsumable products are processed and packaged for sale. Like food production, winemaking is heavily regulated and inspected as the ultimate product is for human consumption. While not specifically permitted or mentioned in the current Zoning Code, permitting production of wine will not negatively impact the general health, safety or welfare of the public and is consistent with the General Plan. As you are aware, we are a tenant in an existing Industrially Zoned building. Additionally, it will not impact the other users in the building that will continue to operate various manufacturing operations. General Plan Consistency The project site is designated as Industrial (IG) by the Land Use Element of the General Plan. The IG land use category is intended to provide for a wide range of moderate to low intensity industrial uses, such as light manufacturing and research and development, and limited ancillary commercial and office uses. The applicant's proposed use is a moderate to low intensity industrial -type use that would appear to be consistent with the IG General Plan Land Use Category. Zoning The current zoning for the project is M -1 -A (Controlled Manufacturing). The intent of this Study Plan is to set permitted uses and development standards for the Interim Study Overlay District. 2 Permitted Uses The current Zoning Code permits controlled low to moderate intensity industrial uses, but does not specifically permit food processing, however proposed Draft Zoning Code does permit food processing. This Interim Study Overlay District shall allow "Food Processing" as a permitted use. All other permitted uses allowed in the current Zoning Code Section 20.20.020 (industrial Districts: Land Use Regulations) shall be permitted in this IS Overlay District. Development Standards All development standards addressed in the current Zoning Code Section 2020.030 (Industrial Districts: Property Development Regulations) and other relevant sections of the Municipal Code shall be applicable in this IS Overlay District, unless otherwise specified below. Lot Dimensions FAR Lot Area: 10,000 square feet Lot Width: 0 feet Industrial FAR: 0.75 Setbacks Front: 15 feet Sides: 0 feet Rear` '0 feet Parking Food Processing: 1 space for each 2,000 square feet of gross floor area All other uses: pursuant to Chapter 20.66 of the Zoning Code Landscaping Per Chapter 20.36 (Landscaping Standards) of the draft Zoning Code Per Water Efficient Landscape Ordinance, Chapter 14.17 of the Municipal Code 3 Attachment No. PC 3 Applicant's Project Description /r '. Applicant: Newport Beach Wine Company & Winery Inc. (N$ Wine Company) 869 W. 160x Street Newport Beach, CA. Detailed Description of, and Justification for, the Project Proposed Project NeKPort Beach Wine Company and Winery Inc. (NB Wine Company) has leased and proposed to use property located at 896 W. 16th Street, Newport Beach, CA (Premises) to manufacture, bottle and sell wine. The leased space is part of large industrial building divided into eight (8) similarly sized units. The subject space is approximately 2,500 SF which includes a small office and wine tasting area (approx. goo SF) in the front of the building, and the remaining space to be used for wine production, barrel, tanks and case storage (1800 SF) in the rear. The current space has access to five (5) unreserved vehicle parking spaces. Retail sales will be restricted to weekends only. NB Wine Company will act as a typical winery; bringing in fresh or frozen grapes for pressing or chilled or frozen grape juice, fermenting, producing, barrel fermentation, bottling, and blending wine, allowing tasting, and will sell some wine to consumers from the premises. NB Wine Company will also purchase wine for resale at wholesale. Wine Making Equipment The facility will have all the necessary winemalang equipment required for the production, bottling and storage of fine wine. (See attached photos) Delivery pf Grapes and Production of line NB Wine Company will purchase both fresh and frozen ,grapes rfrom growers in Central and Northern California. The grapes will be delivered by commercial carrier /trucking company. The grapes will be crushed and processed into juice to be stored in fermentation tanks located in the production warehouse area. The wine will be monitored and later pumped into barrels for aging. Once aged appropriately, the Brine will be bottled, labeled, boxed and stored for sale. Recycling and Waste Management The production of wine will be as `green" as possible given the size of the production facility. Grape stems, seeds, skins and other natural by- products (eg yeast residue and corks) will be removed and composted off site. All other production waste consisting of cardboard, paper and glass will be recycled. Office related waste will be disposed by standard trash disposal. 0 Retail Wine Sales and Tasting Wine will be available for sale to consumers on weekends only or by mail - order. No consumption of purchased ovine will be permitted on the premises. Wines will be sold for off - site consumption by the bottle or case. It is anticipated that most wine will be purchased then shipped via common carrier (UPS or FedEx) to consumers and retailers. A small tasting bar comparable to Napa Valley will be available for tastings. Tastings to the trade (retailers, restaurants and distributors) will be by appointment during the week and weekends from woo am t09:30 pm. Retail tasting for consumers will be held on weekends only from ri:oo am to 9:3o pm. Retail tasting will be $zo.00 and include a logo wine glass. Retail tastes will be limited to one & one half ounce (11/2 oz.) pours with a limit of six (6) total tastes. Wine will be poured by one & one half ounce tastes; not by the glass. Tastings will be supervised by an employee who will also provide information about each wine that is tasted. Hour$ of Operation: The proposed hours of operation are io:oo am to 9:30 pm, seven (7) days a week. As noted above tastings to the trade (retailers, restaurants and distributors) will be by appointment during the week and weekends from it:oo am to 9:3o pm. Retail tasting for consumers will be held on weekends only from ttcoo am to 9:30 pm. The actual hours may vary within the requested hours depending of market demand. Impact to Area; The approval of the proposed winery will not adversely impact the surrounding community. This request is not contrary to zoning or general plan for the property, nor will approval create any negative impacts to the community's health, safety and welfare. POSSIBLE BENEFITS: a. Employment: In order to staff the business during the hours of operation, the applicant intends to employ up to 4 local residents in addition to the owner. b. Taxes Generated: Unknown at this time but the applicant hopes to achieve general taxable gross revenues in excess of $5oo,000.00 annually. C. Unique Goods and Services: The applicant proposes a winery open to the public on weekends. d. Upgrade to Area: The proposed winery will utilize an otherwise vacant industrial space. e. Long Term Economic Contribution: It is hoped the success of the proposed business will grow. f. Cultural /Entertainment Benefit: It is hoped that wine education and appreciation will develop and attract persons that also enjoy art, music and literature. 2 POSSIBLE DETRIMENTS: The sale of alcoholic beverage may impact the surrounding community and create additional law enforcement needs. However, properly managed /operated, maintained and subject to appropriate conditions from the City and ABC as a winery with limited tasting, any impacts should be mitigated or eliminated. Based on the proposed operational characteristics, and size, no negative impacts are anticipated. OPERATIONAL CHARACTERISTICS: See project description above. `h Pik 7 I'M Mrs r. Nam T TF-- ME Fv� -7 7- - 7t 1 .1 MTT, a. J PA2(�-'.147 Mu" 13;P-