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HomeMy WebLinkAboutPC2021-032 - APPROVING USE PERMIT NO. UP2020-038 TO ALLOW A WINE TASTING ROOM LOCATED AT 869 WEST 16TH STREET (PA2020-082)RESOLUTION NO. PC2021-032 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING USE PERMIT NO. UP2020-038 TO ALLOW A WINE TASTING ROOM LOCATED AT 869 WEST 16TH STREET (PA2020-082) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. An application was filed by Flamingo Reds LLC dba Orange Coast Winery (“Applicant”), with respect to property located at 869 West 16th Street, and legally described as Lot 913 of Newport Mesa Tract (“Property”). 2. The Applicant requests a conditional use permit to establish a wine tasting room, Orange Coast Winery, with 1,280 square feet of net public area, including a Type 2 (Winery) Alcoholic Beverage Control (ABC) license (“Project”). Proposed hours of operation are 5:00 p.m. to 9:00 p.m. Monday through Friday and 12:00 p.m. to 9:00 p.m. Saturday and Sunday. There will be no live entertainment or dancing. 3. The Property is categorized IG (General Industrial) by the General Plan Land Use Element and is located within the IG (Industrial) Zoning District. 4. The Property is not located within the coastal zone. 5. A public hearing was held on November 18, 2021, in the Council Chambers 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 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 operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use. The Project does not include any interior or exterior alterations to the existing eating and drinking establishment. No increase of gross floor area or net public area would occur with the approval of the requested amendment. Planning Commission Resolution No. PC2021-032 Page 2 of 12 3. The exceptions to this categorical exemption under Section 15300.2 are not applicable. The Project location does not impact an environmental resource of hazardous or critical concern, does not result in cumulative impacts, does not have a significant effect on the environment due to unusual circumstances, does not damage scenic resources within a state scenic highway, is not a hazardous waste site, and is not identified as a historical resource. SECTION 3. REQUIRED FINDINGS. In accordance with Sections 20.48.030(C)(3) (Alcohol Sales, Permit Requirements, Required Findings) and Section 20.52.020(F) (Conditional Use Permits and Minor Use Permits, Findings and Decision) 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 NBMC Section 20.48.030 (Alcohol Sales). Facts in Support of Finding 1. In finding that the Project is consistent with Section 20.48.030 (Alcohol Sales) 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 in an area the Newport Beach Police Department (“NBPD”) has designated as Reporting District 24 (RD 24). RD 24 includes the areas of the City north of Coast Highway and West of Newport Boulevard. The NBPD is required to report offenses of Part One Crimes combined with all arrests for other crimes, both felonies and misdemeanors (except traffic citations), to ABC. Part One Crimes are the eight (8) most serious crimes defined by the FBI Uniform Crime Report: criminal homicide, rape, robbery, aggravated assault, burglary, larceny-theft, auto theft, and arson. RD 24 is considered a higher crime area, as compared to other reporting districts in the City. The RD 24 crime count is 332, which is 165 percent over the citywide crime count average of 125. The higher crime rate is largely due to the high ratio of non-residential to residential uses in this area. In comparison, adjacent reporting districts RD 25, RD 26, and RD 17 are predominately residential with fewer commercial areas, and have crime counts lower than RD 24, but higher than the citywide average. The Part One crime rate in RD 24 is higher than the citywide average. b. The NBPD has reviewed the proposal, provided operating conditions of approval incorporated into Exhibit “A” of this Resolution, and has no objection to the addition of the alcoholic beverage license with those conditions of approval in place. Planning Commission Resolution No. PC2021-032 Page 3 of 12 ii. The number of alcohol-related calls for service, crimes, or arrests in the reporting district and in adjacent reporting districts. RD 24 had a higher percentage of alcohol-related crimes in 2020, compared to all adjacent reporting districts. Adjacent reporting districts are comprised of primarily residential properties with some commercial components, so the lower amount of alcohol-related incidents is expected. The NBPD has reviewed the proposed use and has no objection. 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. Residentially zoned properties are located approximately 325 feet to the south across Production Place from the Property. Additionally, residentially zoned properties are located approximately 700 feet to the east across Placentia Avenue. b. The nearest park, Sunset Ridge Park, is located approximately 3,000 feet to the south. The nearest church, Viewpoint Church, is located across West 16th Street. The nearest school, Carden Hall, is located approximately 700 feet to the southwest and is substantially separated by commercial and industrial uses. The nearest known daycare is approximately 2,000 feet to the southeast. The nearest residential use, Seacliffe Mobile Park, is located approximately 325 feet to the south. The Project is otherwise surrounded by other commercial and industrial uses. c. The West Newport Mesa area is characterized by commercial, institutional, and industrial uses being near one another. As such, the area experiences a lower number of visitors with more people living and working in the area. d. The Project with an early closing hour, is not anticipated to alter the operational characteristics of the existing use such that it becomes detrimental to the area. The resolution includes conditions of approval to further minimize negative impacts to surrounding land uses and ensure that the use remains compatible with the surrounding community. iv. The proximity to other establishments selling alcoholic beverages for either off-site or on-site consumption. The Property is located within Census Tract 0636.03. This Census Tract has an approximate population of 6,450 residents with 11 active retail licenses, which is a per capita ratio of one (1) license for every 586 residents. This is lower than the Orange County ratio of one (1) license for every 471 residents. There is not an oversaturation of alcohol licenses in this Census Tract. Planning Commission Resolution No. PC2021-032 Page 4 of 12 Whether or not the proposed amendment will resolve any current objectionable conditions. The approval of a use permit for the Project would legalize the wine tasting room that previously operated at the Property without the benefit of a use permit. In 2010, the operation was approved as an interim food processing use that consisted of wine production, retail, and a limited wine-tasting component on weekends only. Over time, the business model for the winery changed and wine production no longer occurred onsite. Approval of a use permit would allow the Project to operate consistent with the Zoning Code. Finding B. The use is consistent with the General Plan and any applicable specific plan. 1. The IG (General Industrial) 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 Project is consistent with this designation in that a wine tasting room is a commercial use that is ancillary to the industrial uses in the vicinity. The Project would also benefit those who live and work in the area, as it would provide for a location to try wine products before purchasing. 2. The Property is not part of a specific plan area. 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 IG (Industrial) Zoning District allows wine tasting rooms subject to approval of a use permit. 2. Orange Coast Winery is an existing wine tasting room that was previously operating without the benefit of a use permit. In 2010, the operation was originally approved as an interim food processing use that consisted of wine production, retail, and a limited wine- tasting component on weekends only. Over time, the business model for the winery changed and wine production no longer occurred onsite In February 2021, the Newport Beach City Council approved Ordinance No. 2021-6 allowing wine tasting rooms in the IG (Industrial) zoning district, subject to a use permit. 3. NBMC Section 20.48.090(F) (Eating and Drinking Establishments, Standards – Wine Tasting Rooms) requires separation requirements from schools and wine tasting rooms, prohibits live entertainment, and prohibits the wine tasting room from operating as a bona fide eating establishment. The Property is located over 500 feet from the nearest school, Planning Commission Resolution No. PC2021-032 Page 5 of 12 Carden Hall. There are no other wine tasting rooms in the area. The Project includes conditions of approval to ensure operational standards are complied with. 4. NBMC Section 20.40.040 (Off-Street Parking Spaces Required) requires parking at a rate of one parking space per each four (4) persons based on allowed occupancy load, or as required by conditional use permit. The Project is designed with a maximum occupancy load of 99 persons and therefore has a parking requirement of 25 parking spaces. There is no waiver of parking requirements requested. 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 Property will be improved with tasting tables, restrooms, offices, and a kitchen space. There is no cooking equipment that require a mechanical ventilation system proposed within the food preparation space. The existing infrastructure is adequate to accommodate the Project. The location is compatible with other commercial and industrial uses in the area. 2. The operational conditions of approval will promote compatibility with the surrounding uses. The floor plan provides tasting tables to accommodate 51 interior seats. The hours of operation are limited and do not include late hours, which will minimize the demand for police services in the area. The Applicant is required to maintain substantial conformance with the approved floor plan in conjunction with a Type 2 (Wine Grower) ABC license so that the primary use is a wine tasting room and not a restaurant, bar, lounge, or night club. Live entertainment and dancing are not permitted. 3. The Project will not necessitate high levels of lighting or illumination and all outdoor lighting must conform to Section 20.30.070 (Outdoor Lighting) of the NBMC. 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. Facts in Support of Finding 1. The Property previously operated with a wine tasting room within a multi-tenant commercial building. Physical improvements are limited to the interior of the space. 2. Adequate public and emergency vehicle access, public services, and utilities are provided for on-site. Planning Commission Resolution No. PC2021-032 Page 6 of 12 Finding F. Operation of the use at the location proposed would not be detrimental to the harmonious and orderly growth of the City, or 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 should have a positive impact on the area. The Project will serve both residents and those who work in the surrounding area. It promotes economic activity within the West Newport Mesa area and may promote further revitalization of its commercial properties. 2. The Project 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 within the facility, adjacent properties, or surrounding public areas, sidewalks, or parking lots of the wine tasting room, during business hours, if directly related to the patrons of the establishment. 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 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 and none of the exceptions to the Class 1 exemption apply. 2. The Planning Commission of the City of Newport Beach hereby approves Use Permit No. UP2020-038, 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 is filed with the City Clerk in accordance with the provisions of Title 20 (Planning and Zoning), of the NBMC. Planning Commission Resolution No. PC2021-032 Pa e 7 of 12 PASSED, APPROVED, AND ADOPTED THIS 18TH DAY OF NOVEMBER 2021. AYES: Klaustermeier, Lowrey, Rosene, and Weigand NOES: Kleiman ABSTAIN : None ABSENT: BY- Planning Commission Resolution No. PC2021-032 Page 8 of 12 EXHIBIT “A” CONDITIONS OF APPROVAL (project-specific conditions are shown in italics) Planning Division 1. The development shall be in substantial conformance with the approved site plan stamped and dated with the date of this approval. (Except as modified by applicable conditions of approval.) 2. Use Permit No. UP2020-038 shall expire unless exercised with 24 months from the date of the approval as specified in Section 20.54.060 (Time Limits and Extensions) of the NBMC, unless an extension is otherwise granted. 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. This Use Permit may be modified or revoked by the City Council or Planning Commission should they determine that the proposed uses or conditions under which it is being operated or maintained is detrimental to the public health, welfare or materially injurious to property or improvements in the vicinity or if the property is operated or maintained so as to constitute a public nuisance. 6. Any substantial change in operational characteristics, expansion in area, or other modification to the approved plans, shall require subsequent review by the Planning Division and may require an amendment to this Use Permit or the processing of a new Use Permit. 7. The hours of operation for the wine tasting room shall be limited between 5:00 p.m. to 9:00 p.m. Monday through Friday and 12:00 p.m. to 9:00 p.m. Saturday through Sunday. All customers must vacate the establishment no more than 30 minutes after closing. 8. Any kitchen or food preparation area provided shall have no cooking equipment that requires a mechanical ventilation system to exhaust heat, steam, or grease vapor. 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 Director of Community Development, the illumination creates an unacceptable negative impact on surrounding land uses or environmental resources. The Director may order Planning Commission Resolution No. PC2021-032 Page 9 of 12 the dimming of light sources or other remediation upon finding that the site is excessively illuminated. 10. All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 (Community Noise Control) and other applicable noise control requirements of the NBMC. 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 11. 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. 12. No outside paging system shall be utilized in conjunction with this establishment. 13. 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. 14. 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. 15. 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 debris and graffiti from the premises and on all abutting sidewalks within 20 feet of the premises. 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 (Water and Sewers) of the NBMC, 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 p.m. and 7 a.m. on weekdays and Saturdays and between the hours of 10 p.m. and 9 a.m. on Sundays and Federal holidays, unless otherwise approved by the Director of Community Development, and may require an amendment to this Use Permit. Planning Commission Resolution No. PC2021-032 Page 10 of 12 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 NBMC to require such permits. 20. There shall be no on-site radio, television, video, film, or other electronic media broadcasts, including recordings to be broadcasted at a later time, which include the service of alcoholic beverages, without first obtaining an approved Special Event Permit issued by the City of Newport Beach. 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 Orange Coast Winery Use Permit including, but not limited to, se Permit No. UP2020-038 (PA2020-082). 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. Police Department 22. The type of alcoholic beverage license issued by the California Board of Alcoholic Beverage Control shall be a Type 02 (Winegrower). 23. Deleted 24. 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 may be cause for revocation of the use permit. 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. Planning Commission Resolution No. PC2021-032 Page 11 of 12 27. No games or contests requiring or involving the consumption of alcoholic beverages shall be allowed. 28. Deleted 29. There shall be no live entertainment or dancing allowed on the premises unless a special events permit is acquired. 30. 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. 31. 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 3 years regardless of certificate expiration date. The certified program must meet the standards of the California Coordinating Council on Responsible Beverage Service or other certifying/licensing body, which the State may designate. The establishment shall comply with the requirements of this section within 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. 32. Strict adherence to maximum occupancy limits is required. 33. The applicant shall maintain a security recording system with a 30-day retention and make those recording available to police upon request. 34. The operator of the restaurant facility shall be responsible for the control of noise generated by the subject facility. 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. Fire Department 35. A hood fire suppression system shall be installed at or above all commercial cooking appliances and domestic cooking appliances used for commercial purposes that produce grease vapors. California Fire Code Section 609.2. Building Division 36. Occupancy separation between S, B and A occupancies shall be provided by fire barriers. 37. Fire barrier construction shall extend from slab to roof decking above. 38. Occupancy separation is required between proposed suite and adjacent existing suites, depending on their permitted occupancy. 39. All single user restrooms shall be accessible. Planning Commission Resolution No. PC2021-032 Page 12 of 12 40. Final occupant load and occupancy shall be determined during plan check.