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HomeMy WebLinkAbout12 - Malarky Appeal - 04-26-11 Staff ReportCITY OF NEWPORT BEACH City Council Staff Report Agenda Item No. 15 April 26, 2011 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community Development Department Dana Smith, Assistant City Manager 949 - 644 -3002, dsmith @newportbeachca.gov PREPARED BY: Jaime Murillo, Associate Planner APPROVED: GL TITLE: Malarky's Irish Pub Appeal - (PA2010 -172) 3011 Newport Boulevard IT�3�:7�•�il An appeal of the Planning Commission's approval of Conditional Use Permit No. UP2010- 039 and Comprehensive Sign Program No. CS2011 -002 authorizing the expansion and remodel of an existing eating and drinking establishment with late hours and allowing the use of off -site parking. RECOMMENDATION 1. Conduct a public hearing; and 2. Uphold the decision of the Planning Commission and adopt Resolution No. _ approving Conditional Use Permit No. UP2010 -039 and Comprehensive Sign Program No. CS2011 -003, subject to findings and conditions included within the draft resolution (Attachment No. CC 1). FUNDING REQUIREMENTS There is no fiscal impact related to this item 7 2 VICINITY MAP Existing Off -Site Parking & Easement Area Existing Off -Site Parking' OEM Proposed Off -Site Parking I r , i qby'-W 4 E .o, 3011 Newport Boulevard April 26, 2011 Page 2 S §± Rudy's Pub & Grill J� Subject Property a" -Q �== x t s.., New Beach w 1 Brewing Company LOCATION GENERAL PLAN b b' b , 21 A Neighborhood Commercial ON -SITE VA 1T­T I Commercial CN Neighborhood CN NORTH CN LOCATION GENERAL PLAN ZONING CURRENT USE Neighborhood Commercial ON -SITE Malarky's Irish Pub Commercial CN Neighborhood CN NORTH CN CN =1 Shopping center SOUTH Public Facilities PF Public Facilities PF 35 —space municipal parking lot EAST Visitor Serving Commercial Visitor - Restaurant and office Commercial CV Serving CV and Two Unit CV and Two Unit Shopping center and residential WEST Residential RT Residential R -2 be and 3 11 3011 Newport Boulevard April 26, 2011 Page 3 Project Setting The subject property is located on the northwest corner of the intersection of Newport Boulevard and 30th Street on the Balboa Peninsula. The site is presently developed with an eating and drinking establishment. Surrounding land uses include The Landing shopping center to the north and west, Mama D's restaurant and an office building to the east across Newport Boulevard, and a 35 -space municipal parking lot to the south. Beyond the loading dock of the shopping center to the west are several single -unit and two -unit residential dwellings on 30th Street. The property is also located in close proximity to two other eating and drinking establishments, Rudy's Pub & Grill and the Newport Beach Brewing Company, that also maintain late hour operations. Proiect Description The following is a summary of the proposed project: 1. Remodel- The applicant is proposing to remodel the existing floor plan to include a new dining room, enlarged restrooms that are handicapped accessible, a new waiter service station, and a reduction of office space and food storage area to more efficiently utilize the floor area within the existing 4,966- square -foot building. As required by Building Code, the remodel will include the installation of fire sprinklers and a grease interceptor. 2. Outdoor Dining Patio— A new 782 - square -foot outdoor dining patio is proposed to be constructed on the north side of the building. The maximum occupant load of the patio would be 49 persons. A 9- foot -8- inch -high glass barrier will be used to surround the patio and will provide for sound - attenuation from the vehicular noise from Newport Boulevard and will also help retain noise generated by patrons within the patio. 3. Interior Dining Room Expansion- To allow for increased food service, the proposal would add approximately 565 square feet of sit -down dining area. The total interior Net Public Area (NPA)t of the facility will increase from 1,150 square feet to 1,715 square feet. The dining area will consist of three new booths and approximately 11 new tables, for a total of four booths and 14 tables. Based on the proposed floor plan, the Building Division has calculated the maximum interior occupant load to be 166 persons. The total NPA of the establishment, including the interior dining room expansion and outdoor dining patio will be 2,497 square feet. ' Area, Net Public. The total area used to serve customers, including customer sales and display areas, customer seating areas, service counters, and service queue and waiting areas, but excluding restrooms and offices, kitchens, storage and utility areas, and similar areas used by the employees of the establishment. J5 3011 Newport Boulevard April 26, 2011 Page 4 4. Fagade & Signage Improvements - The applicant is proposing an architectural theme of a traditional Irish Pub. The proposal includes removing the changeable sign marquee and painted signs, adding new foam cornices, decorative metal trim and an antique clock, new signage, new awnings, and a new entry canopy. A total of five wall signs, eight awning signs, and one projecting sign are proposed. Approval of a comprehensive sign program is required whenever 3 or more signs are proposed for a single- tenant building. 5. Operation Characteristics - No changes to the existing hours of operation are proposed (7:00 a.m. to 2:00 a.m., daily). During the day, the applicant intends to promote food service and operate as a restaurant. In the late evening, the applicant intends to conclude food service and continue operating primarily as a bar. To address the increased parking demands of the establishment when operating as a bar and to minimize impacts to the residential uses in the vicinity, the applicant is proposing to close the outdoor dining patio at 11:00 p.m. No live entertainment or dancing is proposed, however, amplified music will be provided through a digital music jukebox. Also, a total of five televisions are proposed within the outdoor dining patio. 6. Parking — The applicant has recently constructed a 22 -space parking lot expansion on a separate parcel that abuts the property where the building is located. The lot is owned by the same property owner; however, because the property owner has not merged the parcels into one lot, the approval of off -site parking is required to formally utilize the new parking lot. A total of 47 parking spaces will be available for the use of the establishment, which equals the minimum parking requirement of the Zoning Code. Proposed plans are included as Attachment No. CC 2. Please refer to the attached March 3, 2011, Planning Commission staff report for a detailed analysis of the proposed project and requested approvals (Attachment No. CC 3). Planning Commission Hearing and Action On March 3, 2011, the Planning Commission reviewed the proposed project. The Planning Commission received extensive testimony from the public and the Police Department. A total of 19 members of the public spoke in support of the project. Eight residents spoke in opposition. The Planning Commission minutes are attached as Attachment No. CC 4. Several written letters of support and opposition were submitted to the Planning Commission for their review and consideration. A total of 26 letters in support were submitted and are attached as Attachment No. CC 5. A total of 35 letters in opposition were submitted and are attached as Attachment No. CC 6. In addition, the applicant submitted a petition with a total of 102 signatures in support of the project (not included due to bulk). 0 3011 Newport Boulevard April 26, 2011 Page 5 The Planning Commission generally supported the project and recognized the following community benefits that would result from the proposed project: The recent parking lot improvements and proposed fagade improvements will have a positive impact on the overall aesthetics of the area and could promote further revitalization of the other commercial properties located along Newport Boulevard. The proposed renovations of the restrooms and increased dining opportunities have the potential to help transform the existing bar to a successful restaurant during the day. The expansion also triggers the need to install fire sprinklers and a grease interceptor, which will provide enhanced safety and improve the City's waste water system. G Adequate parking is provided for the operation at all times of the day, with a surplus provided during late -hours when the patio closes at 11:00 p.m. Although the outdoor dining patio is proposed to operate until 11:00 p.m., the location and design of the patio should buffer the nearby residential uses from potential noise disturbances. The applicant's noise consultant also submitted a noise study (Attachment No. CC 7) concluding that anticipated noise impacts emanating from the proposed outdoor dining patio to the nearest residential uses would be negligible due to the distance and the height of the proposed perimeter wall. The Planning Commission approved the applicant's request related to the comprehensive sign program and the off -site parking. Members of the Planning Commission expressed concerns with the increased interior occupancy during late hours based on the Police Department testimony and community concerns. Ultimately, the Planning Commission voted 4 to 1 to approve the project as proposed, but with conditions (Condition No. 10) requiring that the interior occupant load of the establishment be reduced from 166 persons to a maximum of 120 persons after 11:00 p.m., daily, and that the project return to the Planning Commission for a one -year review (Condition No. 9). Appeal On March 17, 2011, Councilmember Hill appealed the Planning Commission's decision (Attachment No. CC 8). The appeal letter states that "the act of balancing quality of life with providing the opportunity for economically viable business ventures is an important issue that [the Council] should take time to address'. The appeal raises the following two issues as items that need further discussion and consideration by the City Council: 1. Clarification on the need for Condition No. 10, despite the fact that the operator is subject to the recently adopted Operator License Ordinance (NBMC Chapter 3011 Newport Boulevard April 26, 2011 Page 6 5.35) that was designed to provide a relatively quick method of addressing negative conditions that jeopardize a neighborhood's quality of life. 2. Discussion of how and when the newly enacted Operator License should be applied as a tool to mitigate risk associated with restaurant and bar operations that remain open past 11:00 p.m. Pursuant to Section 20.64.030.0 of the Zoning Code, a public hearing on an appeal is conducted "de novo ", meaning that it is a new hearing and the prior decision to approve the application by the Planning Commission have no force or effect. The City Council is also not bound by the Planning Commission's prior decision and it is not limited to the issues raised by Council Member Hill in the appeal. Increased Occupancy Concerns (Condition No. 10) The Planning Commission's decision to add Condition No. 10 was influenced by the Police -Department's testimony and memorandum (Attachment No. CC 9) expressing their concern with the proposed interior expansion and particularly the secondary effects that occur when patrons leave the establishment at the close of business. The memorandum indicates that intoxicated individuals currently leave the establishment during late hours in numbers large enough to create problems for police and the neighborhood residents. But of greater concern is that fact that these problems are compounded with patrons leaving Rudy's Pub & Grill and the Newport Beach Brewing Company, which are nearby and have similar late hours of operation. The Police Department currently experiences a significant demand for law enforcement services in this immediate area between the hours of 1:00 a.m. and 3:00 a.m. on Saturdays and Sundays. These demands for law enforcement services are caused by large numbers of patrons illegally crossing Newport Boulevard and stopping traffic, taxi cabs blocking traffic on Newport Boulevard, patrons loitering in the streets and sidewalks on Newport Boulevard and within the neighboring residential areas. Even with the requirement to secure an operator license, many of these secondary effects cannot be prevented as they are outside the control of the operator of the establishment. The memorandum concludes that the proposed increase in occupancy is expected to exacerbate the existing late hour disturbances that occur in this area, that there will be additional negative impacts on the surrounding neighborhood, and will also be a further drain on police services. The Planning Commission recognized the various benefits that the project would afford, but given the Police Department and community concerns with the applicant's proposed 82- percent increase in occupancy, they imposed Condition No. 10 restricting the interior occupant load to 120 persons based on the fact that this would only increase the occupancy by one third and that the increase would be more manageable for the Police Department. To assist the City Council in further evaluating the potential impacts of the proposed project, staff has prepared the following table comparing the proposed hours of IN 3011 Newport Boulevard April 26, 2011 Page 7 operation, net public area, and occupancy limits of Malarky's Irish Pub with those of Rudy's Pub & Grill and the Newport Beach Brewing Company: Tabled -,Comparison-of Nei b-bring Establishments with Late Hours. F — Hoursof`O eration NdttPublic.Area I Occu' anc ; Limits lntenore -,,Outdoor Patio j f 'Interior ! Outdoor f :Interior Outdoor Fatio. Rudy 's Pub 6 a.m. to 2 a.m., 6 a.m. to 1 a.m., 1,349 sf 310 sf 151 21 & Grill daily daily persons persons Newport 6 a.m. to 11 p.m., 6 a.m. to 11 p.m., 1,900 sf 632 sf 160 56 Beach Sun. - Thurs. Sun. - Thurs. persons persons Brewing Company 6 a.m. to 1 a.m., 6 a.m. to 1 a.m., Fri. & Sat. Fri. & Sat. Malarky's 7 a.m. to 2 a.m., N/A 1,150 sf N/A 91 N/A Irish Pub daily persons (Existing) Malarky's 7 a.m. to 2 a.m., 7 a.m. to 11 p.m., 1,715 sf 782 sf 166 49 Irish Pub daily daily persons persons Pro osed The table above illustrates that between the hours of 1:00 a.m. and 2:00 a.m. on weekends, there is currently the potential for a total of 494 patrons exiting these establishments onto Newport Boulevard. The proposed interior expansion of Malarky's Irish Pub could result in an increase of 75 more patrons during these hours, resulting in a total of 569 patrons (15- percent increase). With the condition imposed by the Planning Commission limiting the interior occupancy during late hours, the proposed interior expansion would only result in an increase of 29 more patrons during these hours, resulting in a total of 523 patrons (6- percent increase). Operator License For reasons according to the Police Department, the Operator License may not be effective in this instance to manage the cumulative impacts that the increased occupancy may have to the neighborhood. Quite simply, it is difficult to hold an operator accountable for the actions of patrons once they have left the establishment and for other external factors that contribute to the neighborhood environment. However, staff believes that the Operator License would be an effective tool for managing a variety of other potential disturbances associated with the establishment that are directly under the control of the operator. For example, the following operations of the establishment can effectively be regulated and controlled through an Operator License: Type of Use- Should the operator abuse the conditional use permit and operate an establishment inconsistent with the type of operation originally approved, the Police Department can immediately suspend or revoke the Operator License for non - compliance with the conditions of the license and conditional use permit. In 0 3011 Newport Boulevard April 26, 2011 Page 8 the case of Malarky's, this would be applicable if it was operated as a nightclub or lounge with provisions for dancing and /or live entertainment. • Alcoholic Beverage Service- If it can be proven that the operator is serving over - intoxicated patrons, the Police Department may suspend, modify, or revoke the license. A substantial number of arrests of over - intoxicated patrons, directly attributable to the establishment, would cause the Police Department to investigate and make this case. • Overcrowding and Security- The operator will be required to maintain and operate under a comprehensive security plan. Procedures within the plan may be modified by the Police Department should there be a need to address any particular concerns in the future. • Noise- Additional security or crowd management would be required to ensure that patrons do not loiter within the parking lot after the close of business. Also, should noise emanating from the outdoor dining patio become a problem, the license can prohibit sound amplification and /or the ability to use televisions. • Taxi Parking- To discourage taxi cabs illegally stopping and blocking traffic on Newport Boulevard, the Operator License can require several of the surplus parking spaces be reserved for taxi cabs during late hours to encourage taxi -cab drivers to pick up patrons on -site. Alternatives The City Council may revise conditions of approval or deny the application altogether ENVIRONMENTAL REVIEW Staff recommends the City Council find this project exempt from the California Environmental Quality Act ( "CEQA ") pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3. This exemption authorizes additions to existing structures of up to 10,000 square feet. The proposed project consists of a 565- square -foot interior dining room expansion and the construction of a new 782- square -foot outdoor dining patio, and therefore, qualifies under this exemption. NOTICING: Notice of this hearing was published in the Daily Pilot, mailed to all property owners within 300 feet of the property and posted at the site a minimum of 10 days in advance of this hearing consistent with the Municipal Code. Additionally, the item appeared upon the agenda for this meeting, which was posted at City Hall and on the City website. The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). 10 Submitted by: n�W Dana Smith 4& Assistant City Manager Attachments: CC 1 CC 2 CC 3 CC 4 CC 5 CC 6 CC 7 CC 8 CC 9 3011 Newport Boulevard April 26, 2011 Page 9 Draft Resolution Project Plans March 3, 2011 Planning Commission Staff Report March 3, 2011 Planning Commission Minutes Letters in Support Letters in Opposition Vista Environmental Noise Analysis Council Member Hill's Appeal Request March 2, 2011 Police Department Memorandum 1 1 12