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HomeMy WebLinkAboutPC2022-006 - APPROVING MINOR USE PERMIT NO. UP2021-033 TO ADD A TYPE 41 (ON-SALE BEER & WINE – EATING PLACE) ALCOHOL BEVERAGE CONTROL LICENSE TO AN EXISTING TENNIS CLUBHOUSE BUILDING LOCATED AT 1602 EAST COAST HIGHWAY, AND 5 AND 11 CLUBHOUSE DRIVE (PA202RESOLUTION NO. PC2022-006 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING MINOR USE PERMIT NO. UP2021-033 TO ADD A TYPE 41 (ON-SALE BEER & WINE – EATING PLACE) ALCOHOL BEVERAGE CONTROL LICENSE TO AN EXISTING TENNIS CLUBHOUSE BUILDING LOCATED AT 1602 EAST COAST HIGHWAY, AND 5 AND 11 CLUBHOUSE DRIVE (PA2021-210) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. An application was filed by Clubhouse ATP LLC (“Applicant”), with respect to property located at 1602 East Coast Highway, 5 and 11 Clubhouse Drive, and legally described as Parcels C and D of Parcel Map No. 2016-151 (“Property”) requesting approval of a minor use permit. 2. The Applicant seeks Minor Use Permit UP2021-033 (“Minor Use Permit”) to operate the existing lounge area in the Property’s tennis clubhouse building in conjunction with a Type 41 (On-Sale Beer & Wine – Eating Place) Alcoholic Beverage Control (“ABC”) License. The business will offer packaged food, light meals, and snacks. No construction, late hours (after 11:00 p.m.), live entertainment, or dancing are proposed. The concession space would primarily serve members and guests of the Tennis Club (“Project”). 3. The Property is designated MU-H3/PR (Mixed-Use Horizontal 3/ Parks and Recreation) by the General Plan Land Use Element and is located within the PC47 (Newport Beach Country Club) Zoning District. 4. The Property is located within the coastal zone. The Coastal Land Use Plan category is MU-H/PR (Mixed-Use Horizontal / Parks and Recreation) and it is located within PC47 (Newport Beach Country Club) Coastal Zone District. The Project includes the establishment of a new Type 41 ABC License, with no construction or operational changes that would result in an intensification of the existing use. Therefore, the Project is exempt from coastal development permitting requirements. 5. A virtual public hearing was held via Zoom on December 16, 2021, at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with the California Government Code Section 54950 et seq. (“Ralph M. Brown Act”) and Chapter 20.62 (Public Hearings) of the Newport Beach Municipal Code (“NBMC”). Evidence, both written and oral, was presented to, and considered by, the Zoning Administrator at this hearing. The Zoning Administrator approved Resolution No. ZA2021-086. 6. On January 3, 2022, Fainburg III LLC/Mesa Shopping Center-East LLC, and Mira-Mesa Shopping Center-East LLC filed an appeal of the Project with the City Clerk’s Office. Planning Commission Resolution No. PC2022-006 Page 2 of 12 10-18-21 Newport Beach City Hall was closed to the public during a portion of the appeal period, and therefore extended to January 3, 2022. Thus, the appeal is considered timely. 7. A de novo public hearing was held on April 21, 2022 in the City Council Chambers at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with the Ralph M. Brown Act and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1. This Project is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential to have a significant effect on the environment. 2. The Class 1 exemption includes the ongoing use of existing buildings where there is negligible or no expansion of use. The Project involves the addition of the Type 41 ABC License to the Property’s existing tennis clubhouse with no other alterations or changes. SECTION 3. REQUIRED FINDINGS. In accordance with Sections 20.48.030 (Alcohol Sales) and Section 20.52.020(F) (Conditional Use Permits and Minor Use Permits) of the NBMC, the following findings and facts in support of such findings are set forth: Finding: A. The use is consistent with the purpose and intent of Section 20.48.030 (Alcohol Sales of the Zoning Code. Facts in Support of Finding: In finding that the Project is consistent with Section 20.48.030 of the NBMC, the following criteria must be considered: i. The crime rate in the reporting district and adjacent reporting districts as compared to other areas in the City. a. The Property is located in an area the Newport Beach Police Department (“NBPD”) has designated as Reporting District 39 (RD 39), which includes Fashion Island shopping and entertainment district. b. The Part One Crimes (the eight [8] most serious crimes defined by the FBI Uniform Crime Report – homicide, rape, robbery, aggravated assault, burglary, larceny-theft, auto theft, and arson) crime rate in RD 39 is higher than adjacent Reporting Districts RD 43, 38, and 44 and the City overall. Planning Commission Resolution No. PC2022-006 Page 3 of 12 10-18-21 c. The highest volume crime in this area is shoplifting. The highest volume arrests in the area are drug related offenses. DUI, Public Intoxication, and liquor law violations make up 16 percent of arrests in this reporting district. In comparison, the figure for neighboring RD 43 is 17 percent, RD 38 is 23 percent and RD 44 is 18 percent. d. The NBPD has reviewed the Project, provided operating conditions of approval, and has no objection to the addition of the alcoholic beverage license. The operation of the establishment includes the approved floor plan and a closing hour of 11:00 p.m. ii. The number of alcohol-related calls for service, crimes, or arrests in the reporting district and in adjacent reporting districts. a. The total number of alcohol-related calls for service, crimes, or arrests in RD 39 is lower than neighboring reporting districts. The NBPD has reviewed the Project and has no objection. b. There has been one (1) Part One crime reported at the Property in the last reporting cycle and no Part One crime arrests. iii. The proximity of the establishment to residential zoning districts, day care centers, hospitals, park and recreation facilities, places of worship, schools, other similar uses, and any uses that attract minors. a. The eating and drinking establishment is located within the Tennis Club site of PC47, which was intended for recreational uses such as a tennis clubhouse. The Property is not located within close proximity to any day care centers, hospitals, places of worship, schools, or similar uses that attract minors. The Property’s tennis clubhouse building is located within the Tennis Club complex, which is a recreational use open to members and guests of the tennis club. The Property’s tennis club is not open to the public and the tennis clubhouse is anticipated to serve mainly members and guests. The nearest residential uses are behind the tennis courts in the Granville community. Eating and drinking establishments with incidental alcohol service are common in country clubs and tennis clubs, and the proposed change in ABC license type is not anticipated to alter the operational characteristics of the use such that it becomes detrimental to the area. iv. The proximity to other establishments selling alcoholic beverages for either off-site or on- site consumption. a. Currently there are no other establishments that sell alcohol within the tennis club complex. The closest establishment with an alcohol license is the Newport Beach County Club located at 100 Clubhouse Drive. There is no evidence suggesting this use has been detrimental to surrounding properties or the neighborhood. Planning Commission Resolution No. PC2022-006 Page 4 of 12 10-18-21 v. Whether or not the proposed amendment will resolve any current objectionable conditions. a. An eating and drinking establishment with intermittent alcohol service has operated at the Property since 1970 with no operating issues or complaints. b. The Project has been reviewed and conditioned to ensure that the purpose and intent of Section 20.48.030 (Alcohol Sales) of the NBMC is maintained and that a healthy environment for residents and businesses is preserved. The service of alcohol is intended for the convenience of members and guests recreating at the tennis club. Operational conditions of approval recommended by the NBPD relative to the sale of alcoholic beverages will ensure compatibility with the surrounding uses and minimize alcohol related impacts. c. The existing hours of operation of the establishment will minimize the potential effects on land use. The establishment closes by 11:00 p.m., daily, which will ensure the use does not become a late night bar, tavern, or nightclub. d. The establishment is located within the existing tennis club which is developed with recreational uses. Adding the alcohol beverage control license will not alter the existing operation of the tennis club complex but will complement the food service in the Clubhouse and provide a convenience to members and guests. In accordance with Section 20.52.020 (Conditional Use Permits and Minor Use Permits) of the NBMC, the following findings and facts in support of such findings are set forth: Finding: B. The use is consistent with the General Plan and any applicable specific plan. Facts in Support of Finding: 1. The General Plan designates the site as MU-H3/PR (Mixed-Use Horizontal and Parks and Recreation). The MU-H3 designation applies to properties located in Newport Center. It provides for the horizontal intermixing of regional commercial office, hotel, multi-family residential and ancillary commercial uses. Within the Tennis Club, residential uses may be developed as single-family units. The PR designation applies to land used or proposed for active public or private recreational use. Permitted uses include parks (both active and passive), golf courses, marina support facilities, aquatic facilities, tennis clubs and courts, private recreation, and similar facilities. The proposed Type 41 ABC License would support the existing tennis club complex, an allowed use within the General Plan Land Use Designations. 2. The existing tennis clubhouse establishment is located within the Newport Beach Tennis Club complex along East Coast Highway which provides recreational opportunities to members and guests, consistent with the MU-H3/PR land use designation. 3. The Property is not a part of a specific plan area. Planning Commission Resolution No. PC2022-006 Page 5 of 12 10-18-21 Finding: C. The use is allowed within the applicable zoning district and complies with all other applicable provisions of this Zoning Code and the Municipal Code; Facts in Support of Finding: 1. The Property is located in Planned Community PC47 (Newport Beach Country Club) Zoning District, which includes the Golf Club, Tennis Club, Bungalows and Villas facilities totaling approximately 140 acres. The subject building (tennis clubhouse) is located within the Tennis Club site of PC47, which was intended to provide for recreational uses such as a tennis clubhouse, tennis shop, restroom and locker facilities, spectator seating areas, etc. Concession uses are allowed by right as an ancillary use to the Tennis Club, and the sale and service of alcohol (until 11:00 p.m.) is allowed subject to the approval of a Minor Use Permit. 2. The existing establishment operates pursuant to Use Permit No. UP1492C which allows the existing clubhouse lounge to operate with hours from 9:00 a.m. to 11:00 p.m. daily. 3. The use will remain an ancillary eating and drinking establishment for the tennis club complex and the addition of the ABC Type 41 license will not alter or intensify the existing use. Further, there will be no change to the floor area or the hours of operation. Finding: D. The design, location, size, and operating characteristics of the use are compatible with the allowed uses in the vicinity; Facts in Support of Finding: 1. The addition of the alcohol license does not change the operating characteristics of the existing eating and drinking establishment. 2. The eating and drinking establishment will remain complimentary to the other uses and buildings within the tennis club site. The tennis clubhouse will continue to be an ancillary, related use and contribute to the existing operations of the Property’s Tennis Club. 3. The Project will continue to provide a convenience for tennis club members and guests, and the proposed ABC License will not result in increased demand for parking in the existing surface parking lots. Finding: E. The site is physically suitable in terms of design, location, shape, size, operating characteristics, and the provision of public and emergency vehicle (e.g., fire and medical) access and public services and utilities. Planning Commission Resolution No. PC2022-006 Page 6 of 12 10-18-21 Facts in Support of Finding: 1. The Project’s existing eating and drinking establishment within the Newport Beach Tennis Club has proven to be physically suitable in terms of design, location, shape, and size to support the use. The physical characteristics of the site are not changing with the addition of the alcohol license. Alcohol service has existed on the site in the past and would be reinstated as part of this use permit as a convenience to members and their guests. Based on the location of the business and limited operational scale of the concession area, large numbers of patrons from the public (who are not members or guests) are not anticipated. 2. Adequate public and emergency vehicle access, public services, and utilities are provided for on-site. Finding: F. Operation of the use at the location proposed would not be detrimental to the harmonious and orderly growth of the City, nor endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed use. Facts in Support of Finding: 1. The Project has been reviewed and includes conditions of approval to ensure that potential conflicts with the surrounding land uses are minimized to the greatest extent possible. The operator is required to take reasonable steps to discourage and correct objectionable conditions that constitute a nuisance in parking areas, sidewalks and areas surrounding the subject property and adjacent properties during business hours, if directly related to the patrons of the establishment. 2. The Project’s eating and drinking establishment will continue to service the Newport Beach Tennis Club as a convenience to the tennis club members and guests recreating at the facility. The proposed closing hour of 11:00 p.m. and limited nature of the concession, will limit the potential impacts to the surrounding neighborhood. Further, the Tennis Clubhouse is located in the center of the Tennis Club and away from any residential or sensitive uses. 3. The service of alcohol will continue to complement the principal use of the facility and provide an economic opportunity for the property owner to maintain a successful business in a way which best serves the community. In accordance with Section 20.50.040(C) (Eligibility for Filing) of the NBMC, the following findings and facts in support of such findings are set forth: Planning Commission Resolution No. PC2022-006 Page 7 of 12 10-18-21 Finding: G. An application may only be filed by the owner of the subject property or authorized agent of the owner with the written consent of the property owner. The application shall be signed by the owner of record or by an authorized agent, if written authorization from the owner of record is filed concurrently with the application. Facts in Support of Finding: 1. An affidavit, by the managing owner, authorizing submittal of the application for the Project was included with the application. The managing owner has received land use entitlements for larger scale projects (PA2005-140) than the Project as proposed. The Project complies with the General Plan and applicable provisions of Title 20 (Planning and Zoning) as supported by the findings above. 2. The issues discussed in the appeal letter and during the Zoning Administrator proceedings by the appellant are a civil matter and should be handled outside of the entitlement process. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Planning Commission of the City of Newport Beach hereby finds the Project is categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential to have a significant effect on the environment. 2. The Planning Commission of the City of Newport Beach hereby approves Minor Use Permit No. UP2021-033, subject to the conditions set forth in Exhibit A, which is attached hereto and incorporated by reference. 3. This action shall become final and effective 14 days following the date this Resolution was adopted unless within such time an appeal or call for review is filed with the City Clerk in accordance with the provisions of Title 20 (Planning and Zoning), of the NBMC. PASSED, APPROVED, AND ADOPTED THIS 21ST DAY OF APRIL, 2022. AYES: Ellmore, Klaustermeier, Kleiman, Koetting, Lowrey, Rosene, and Weigand NOES: None ABSTAIN: None ABSENT: None Planning Commission Resolution No. PC2022-006 Page 9 of 12 10-18-21 EXHIBIT “A” CONDITIONS OF APPROVAL (Project-specific conditions are in italics) Planning Division 1. The development shall be in substantial conformance with the approved site plan floor plans and building elevations stamped and dated with the date of this approval (except as modified by applicable conditions of approval). 2. Minor Use Permit No. UP2021-033 allows the on-site sale and consumption of beer and wine at the tennis club concession with a valid California Department of Alcoholic Beverage Control license. This approval shall not be interpreted to allow a full-service independent restaurant. The tennis clubhouse and associated alcohol service shall remain as an ancillary use to the existing Tennis Club recreational uses. 3. The Project is subject to all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. 4. The Applicant shall comply with all federal, state, and local laws. Material violation of any of those laws in connection with the use may be cause for revocation of this Use Permit. 5. All proposed signs shall be in conformance with the approved Comprehensive Sign Program for the project site and provisions of Chapter 20.42 (Signs) of the Newport Beach Municipal Code. No signs or other forms of advertising for the tennis clubhouse concessions shall be permitted along the adjacent public right-of-way, including but not limited to, East Coast Highway and Granville Drive. 6. Use Permit No. UP2021-033 and 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. 7. This Minor Use Permit may be modified or revoked by the Planning Commission if determined 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. 8. Any change in operational characteristics, expansion in area, or other modification to the approved plans, shall require an amendment to this Use Permit or the processing of a new Use Permit. 9. The site shall not be excessively illuminated based on the luminance recommendations of the Illuminating Engineering Society of North America, or, if in the opinion of the Planning Commission Resolution No. PC2022-006 Page 10 of 12 10-18-21 Director of Community Development, the illumination creates an unacceptable negative impact on surrounding land uses or environmental resources. The Director may order the dimming of light sources or other remediation upon finding that the site is excessively illuminated. 10. Prior to the issuance of a building permit, the applicant shall pay any unpaid administrative costs associated with the processing of this application to the Planning Division. 11. All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 and other applicable noise control requirements 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: Between the hours of 7:00AM and 10:00PM Between the hours of 10:00PM and 7:00AM Location Interior Exterior Interior Exterior Residential Property 45dBA 55dBA 40dBA 50dBA Residential Property located within 100 feet of a commercial property 45dBA 60dBA 45dBA 50dBA Mixed Use Property 45dBA 60dBA 45dBA 50dBA Commercial Property N/A 65dBA N/A 60dBA 12. Should the property 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. No outside paging system shall be utilized in conjunction with this establishment. 14. All trash shall be stored within the building or within dumpsters stored in the trash enclosure (three walls and a self-latching gate) or otherwise screened from view of neighboring properties, except when placed for pick-up by refuse collection agencies. The trash enclosure shall have a decorative solid roof for aesthetic and screening purposes. 15. Trash receptacles for patrons shall be conveniently located both inside and outside of the establishment, however, not located on or within any public property or right-of-way. 16. The Applicant shall ensure that the trash dumpsters and/or receptacles are maintained to control odors. This may include the provision of either fully self-contained dumpsters or periodic steam cleaning of the dumpsters, if deemed necessary by the Planning Division. Cleaning and maintenance of trash dumpsters shall be done in compliance with the provisions of Title 14, including all future amendments (including Water Quality related requirements). 17. Deliveries and refuse collection for the facility shall be prohibited between the hours of 10:00 p.m. and 7:00 a.m. on weekdays and Saturdays and between the hours of 10:00 p.m. and 9:00 a.m. on Sundays and Federal holidays, unless otherwise approved by the Planning Commission Resolution No. PC2022-006 Page 11 of 12 10-18-21 Director of Community Development, and may require an amendment to this Use Permit. 18. Storage outside of the building in the front or at the rear of the property shall be prohibited, with the exception of the required trash container enclosure. 19. A Special Events Permit is required for any event or promotional activity outside the normal operational characteristics of the approved use, as conditioned, or that would attract large crowds, involve the sale of alcoholic beverages, include any form of on-site media broadcast, or any other activities as specified in the Newport Beach Municipal Code to require such permits. 20. This approval shall expire and become void unless exercised within 24 months from the actual date of review authority approval, except where an extension of time is approved in compliance with the provisions of Title 20 Planning and Zoning of the Newport Beach Municipal Code. 21. To the fullest extent permitted by law, applicant shall indemnify, defend and hold harmless City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney’s fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to City’s approval of Tennis Clubhouse Grill including, but not limited to, Minor Use Permit No. UP2021-033 (PA2021-210). This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys' fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by applicant, City, and/or the parties initiating or bringing such proceeding. The applicant shall indemnify the City for all of City's costs, attorneys' fees, and damages which City incurs in enforcing the indemnification provisions set forth in this condition. The applicant shall pay to the City upon demand any amount owed to the City pursuant to the indemnification requirements prescribed in this condition. Building Division 22. If construction is proposed, the applicant is required to obtain all applicable permits from the City’s Building Division and Fire Department. 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. Planning Commission Resolution No. PC2022-006 Page 12 of 12 10-18-21 Police Department 23. The Applicant shall comply with all federal, state, and local laws, and all conditions of the Alcoholic Beverage License. Material violation of any of those laws or conditions in connection with the use is a violation and may be cause for revocation of the use permit. 24. 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 within 60 days of hire. This training must be updated every three (3) years regardless of certificate expiration date. The certified program must meet the standards of the certifying/licensing body designated by the State of California. The establishment shall comply with the requirements of this section within 60 days of approval. 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. 25. Approval does not permit the premises to operate as a bar, tavern, cocktail lounge or nightclub as defined by the Newport Beach Municipal Code. 26. No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the licensee. 27. No games or contests requiring or involving the consumption of alcoholic beverages shall be allowed. 28. Any event or activity staged by an outside promoter or entity, where the applicant, operator, owner or his employees or representatives share in any profits, or pay any percentage or commission to a promoter or any other person based upon money collected as a door charge, cover charge or any other form of admission charge is prohibited. 29. The exterior of the business shall be maintained free of litter and graffiti at all times. The owner or operator shall provide for daily removal of trash, litter, and debris from the premises and on all abutting sidewalks within 20 feet of the premises. Graffiti shall be removed within 48 hours of written notice from the City. 30. There shall be no exterior advertising or signs of any kind or type, including advertising directed to the exterior from within, promoting or indicating the availability of alcoholic beverages. Interior displays of alcoholic beverages or signs which are clearly visible to the exterior shall constitute a violation of this condition. 31. Employees shall not be permitted to consume alcohol or be under the influence of alcohol at any time during their shift.