HomeMy WebLinkAboutZA2022-046 - APPROVING MINOR USE PERMIT NO. UP2021-036 FOR AN AMENDMENT TO UPGRADE AN EXISTING TYPE 41 ALCOHOLIC BEVERAGE CONTROL (ABC) LICENSE TO A TYPE 47 ABC LICENSE AT AN EXISTING CAFÉ LOCATED AT 100 WEST COAST HIGHWAY, SUITE 104 (PA2021-220)RESOLUTION NO. ZA2022-046
A RESOLUTION OF THE ZONING ADMINISTRATOR OF THE
CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING MINOR
USE PERMIT NO. UP2021-036 FOR AN AMENDMENT TO
UPGRADE AN EXISTING TYPE 41 (ON-SALE BEER AND WINE –
EATING PLACE) ALCOHOLIC BEVERAGE CONTROL (ABC)
LICENSE TO A TYPE 47 (ON-SALE GENERAL – EATING PLACE)
ABC LICENSE AT AN EXISTING CAFÉ LOCATED AT 100 WEST
COAST HIGHWAY, SUITE 104 (PA2021-220)
THE ZONING ADMINISTRATOR OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS
FOLLOWS:
SECTION 1. STATEMENT OF FACTS.
1.An application was filed by R&R Rafaei, LLC (Applicant), with respect to property located
at 100 West Coast Highway, and legally described as PCL 1, Parcel Map 2010-133
requesting approval of an amendment to a Minor Use Permit.
2.The Applicant requests to amend a minor use permit to upgrade the existing Type 41 (Beer
and Wine - Eating Place) Alcoholic Beverage Control (ABC) License to a Type 47 (On-
Sale General - Eating Place) ABC License at the existing Xanadu Café. No change to floor
area, hours of operation, or seating is proposed with the amendment. There are no
proposed changes to the floor plan and the hours of operation would remain 6 a.m. to 10
p.m., daily. If approved, this amendment will supersede Minor Use Permit Nos. UP2015-
007 (PA2015-021) - (for the existing café) and UP2016-042 (PA2016-174) - (addition of
Type 41 ABC License). All conditions of approval will be consolidated and incorporated
into this amendment
3.The subject property is located within the Commercial General (CG) Zoning District and
the General Plan Land Use Element category is General Commercial (CG).
4.The subject property is not located within the coastal zone; therefore, a coastal
development permit is not required.
5.A public hearing was held on June 30, 2022, online via Zoom. A notice of time, place and
purpose of the hearing was given in accordance with the Newport Beach Municipal Code
(NBMC). Evidence, both written and oral, was presented to, and considered by, the
Zoning Administrator at this 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.
Zoning Administrator Resolution No. ZA2022-046
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2. The Class 1 exemption includes the ongoing use of existing buildings where there is
negligible or no expansion of use. The proposed project involves the upgrade of the
existing ABC License for the café with no other alterations or changes.
3. Furthermore, a Mitigated Negative Declaration (SCH No. No. 2011041038) was
prepared for the development of the shopping center in accordance with the
implementing guidelines of the California Environmental Quality Act (CEQA) and
approved by the City Council on August 9, 2011.
SECTION 3. REQUIRED FINDINGS.
Alcohol Sales
In accordance with Section 20.48.030 (Alcohol Sales) 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 proposed use 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.
1. The subject property is in Reporting District 26 (RD 26). The Newport Beach Police
Department (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 the
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. The crime rate average in RD 26 is higher than adjacent RD
41 and the City-wide Reporting District Average, but lower than adjacent RD 25 and RD
28. Adjacent RD 41 is predominantly residential properties compared to the subject RD
26 which includes most of the commercial properties in Mariners Mile, a highly traveled
and visited area by residents and tourists. The area is found to have undue
concentration, as it has 30 percent over the citywide average crime count. The highest
volume crime is “simple assault” and the highest volume arrest is “drug related offenses.”
2. The NBPD has reviewed the proposal, provided recommended operational conditions
of approval and had no objection to the project. The operation of the establishment
includes the approved floor plan with no separate bar counter or area and an earlier
closing hour of 10 p.m.
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ii. The numbers of alcohol-related calls for service, crimes, or arrests in the
reporting district and in adjacent reporting districts.
1. The subject RD 26 has the second lowest number of total arrests compared to the
adjacent Reporting Districts and 36 percent of the arrests were alcohol related. RD 26
and adjacent RD 25 have the highest amongst the adjacent Reporting Districts due to
DUI arrests. RD 26 includes most of the commercial properties in Mariners Mile and
the portion of West Coast Highway which is a heavily traveled road for visitors
accessing the coastal destinations of water-front restaurants, boating and marine
activities. The NBPD memo indicates this location has not been a burden on police
resources in terms of calls for service.
2. In 2021, there were fifteen (15) dispatch events coded to this location and in 2022, to
date there has been one (1) dispatch event but none of the calls appear to be directly
related to the existing café or alcohol.
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.
1. The existing food service, eating and drinking establishment (Xanadu Café) is within
Mariners Pointe Shopping Center along West Coast Highway and is consistent with the
Commercial General land use category. The shopping center consists of retail, service,
and other eating and drinking establishment uses. The subject property is located
approximately 200 feet across Dover Drive from Lower Castaways Park. However, the
café is oriented further away with its main entrance and outdoor dining within the
commercial corridor along West Coast Highway which is approximately 450 feet from
the park. Environmental Nature Center Preschool and Newport Harbor Lutheran
Church and School are over a ¼-mile north of the café on Dover Drive. The nature of
the commercial area along Coast Highway is to provide goods and services including
eating and drinking establishments designed to foster visitor and resident activity from
travelers down Coast Highway and residents nearby. The nearest residential uses are
behind the shopping center site along Kings Road and across Coast Highway in the
gated community of Bay Shores. Eating and drinking establishments with incidental
alcohol service are common in the General Commercial area on Coast Highway and
the proposed change in alcohol 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.
1. Currently there is one (1) establishment (Sushi Li) within the shopping center that
includes a Type 47 ABC License and no late hours. The next closest establishment is
Pizzeria Mozza at 800 West Coast Highway approximately 900 feet west of the center.
There is no evidence suggesting these uses have been detrimental to surrounding
properties or the neighborhood.
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v. Whether or not the proposed amendment will resolve any current objectionable
conditions.
1. An eating and drinking establishment have operated at the subject property since 2015
with no operating issues or complaints related to alcohol.
2. 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 customers dining at the establishment. Operational
conditions of approval recommended by the Police Department relative to the sale of
alcoholic beverages will ensure compatibility with the surrounding uses and minimize
alcohol related impacts.
3. The existing hours of operation for the establishment will minimize the potential effects
on land use. The establishment closes by 10 p.m., daily, which will help to ensure the
use does not become a late-night bar, tavern, or nightclub.
4. The establishment is located within an existing shopping center which is developed with
other commercial uses and has an existing alcoholic beverage control license.
Upgrading the license is not expected to alter the existing operation and will
complement the food service while providing a convenience to customers.
Minor Use Permit
In accordance with 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:
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 General Commercial (GC), which is intended
to provide a variety of commercial uses.
2. The existing eating and drinking establishment is located within a shopping center in
the commercial area along West Coast Highway, which provides goods and services
to visitors and residents alike, consistent with the CG land use designation.
3. The subject property is not a part of a specific plan area.
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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 site is in the Commercial General (CG) Zoning District and is intended to provide
commercial uses. Eating and drinking establishments are permitted uses subject to
the approval of a use permit.
2. The existing eating and drinking establishment operate pursuant to Minor Use Permit
No. UP2015-007 (PA2015-021), which allowed the existing café with interior and
exterior seating, and hours of operation from 6 a.m. to 10 p.m. daily. It also operates
pursuant to Minor Use Permit No. UP2016-042 (PA2016-174), which allowed the
Type 41 (On-Sale Beer and Wine) ABC License. The requested upgrade of the ABC
license requires approval of an amendment to the Minor Use Permit. This resolution
will consolidate the approvals for the café into one (1) minor use permit.
3. The use will remain an eating and drinking establishment and the upgrade of the
alcohol beverage control license will not alter or intensify the existing use. Further,
there will be no change to the floor area including the existing net public area and
seats 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 upgrade of the ABC license in conjunction with the included conditions of
approval will not change the operating characteristics of the existing café.
2. The café will remain complementary to the other uses in the Mariner’s Pointe
shopping center, which will include retail stores, food services, and other commercial
uses. It will contribute to making the shopping center a viable commercial node for
the neighborhood and visitors.
3. The café will continue to provide a convenience for residents of the neighborhood
and visitors to the area with adequate parking within the parking structure on-site.
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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 existing café within the shopping center 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 upgrade of the ABC license.
2. Adequate public and emergency vehicle access, public services, and utilities are
provided for on-site.
3. The existing café is located along an existing walkway adjacent West Coast Highway
that is Caltrans-right-of way. The café is conditioned to be maintained entirely on
private property with no encroachments into the Caltrans-right-of-way.
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 café will continue to service the neighborhood by providing dining services as a
public convenience to the surrounding residential neighborhood as well as visitors
which is the intent of the commercial area. 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.
3. The operator has corrected the previous violations of providing smoking lounge
services on the menu at the premises. There is a condition of approval included to
prohibit any smoking lounge services at the café.
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4. As conditioned, the owners, managers and employees selling alcohol are required to
undergo and successfully complete a certified training program in responsible
methods and skills for selling alcohol.
SECTION 4. DECISION.
NOW, THEREFORE, BE IT RESOLVED:
1. The Zoning Administrator of the City of Newport Beach hereby finds this project is
categorically exempt from the California Environmental Quality Act 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 Zoning Administrator of the City of Newport Beach hereby approves Minor Use Permit
No. UP2021-036 (PA2021-220), 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
Community Development Director in accordance with the provisions of Title 20 Planning
and Zoning, of the Newport Beach Municipal Code.
4. This resolution supersedes Zoning Administrator Resolution Nos. ZA2016-066 (PA2016-
174) and ZA2015-015 (PA2015-021), which upon vesting of the rights authorized by this
Minor Use Permit No. UP2021-036 (PA2021-220), shall become null and void.
PASSED, APPROVED, AND ADOPTED THIS 30th DAY OF JUNE, 2022.
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EXHIBIT “A”
CONDITIONS OF APPROVAL
Planning Division
1. The development shall be in substantial conformance with the approved site plan, floor
plans including seating plan, outdoor dining area stamped and dated with the date of this
approval.
2. This Resolution approves Minor Use Permit No. UP2021-036 (PA2021-220), amending
and superseding the existing Minor Use Permit No. UP2016-042 (PA2016-174). This
Minor Use Permit will also supersede existing Minor Use Permit No. UP2015-007
(PA2015-021). All appropriate conditions of approval for the café are included and shall
be abided by.
3. The hours of operation for the establishment shall be limited to 6 a.m. through 10 p.m.,
daily.
4. The maximum interior net public area shall be 484 square feet.
5. The outdoor dining shall not exceed 121 square feet (25 percent of the net public area)
and shall remain entirely on private property with no encroachment into the public right-
of-way or the Caltrans right-of-way. The design and materials of the new ABC barrier shall
be reviewed and approved by the Planning Division prior to installation. An inspection
shall be scheduled with the Planning Division to confirm the location of the outdoor dining
and that the required ABC barrier is entirely on the private property to match the approved
plans.
6. The establishment shall not provide any services that constitute a “smoking lounge” as
defined by Chapter 20.70 (Definitions) of the NBMC. This shall include, but not be limited
to the menu of the café including tobacco or tobacco like substances for smoking by
patrons on the premises.
7. Use Permit No. UP2021-036 (PA2021-220) shall expire unless exercised within 24
months from the date of approval as specified in Section 20.54.060 (Time Limits and
Extensions) of the NBMC, unless an extension is otherwise granted.
8. Parking shall be provided at a rate of one (1) space for each 40 square feet of net public
area and shall comply with the approved parking management plan in effect for the site.
Any change to this would require an amendment to this use permit.
9. Any change in operational characteristics, expansion in area, or other modification to
the approved plans, shall require subsequent review and may require an amendment
to this use permit or the processing of a new use permit.
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10. Temporary refrigerated trash storage shall be provided to control odors associated with
food waste, unless otherwise approved by the Community Development Director.
11. Kitchen exhaust fans shall be installed and maintained in accordance with the Uniform
Mechanical Code.
12. The exhaust systems for the food use shall be installed with pollution control units to
filter and control odors and shall be located entirely within the structure, except for a
required vent that may be located on the roof in a location approved by the Planning
Division.
13. The project is subject to all applicable City ordinances, policies, and standards, unless
specifically waived or modified by the conditions of approval.
14. 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.
15. This Minor Use Permit may be modified or revoked by the Zoning Administrator 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.
16. 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.
17. No outside paging system shall be utilized in conjunction with this establishment.
18. 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
19. All trash shall be stored within the building or within the existing dumpsters stored in
the trash enclosure. The trash enclosure shall comply with Zoning Code Section
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20.30.120 including three (3) walls, a self-latching gate and a decorative solid roof for
aesthetic and screening purposes.
20. 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.
21. 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.
22. Deliveries and refuse collection for the facility shall be prohibited between the hours of
10 p.m. and 8 a.m., daily, unless otherwise approved by the Director of Community
Development, and may require an amendment to this use permit.
23. 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.
24. 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 onsite
media broadcast, or any other activities as specified in the Newport Beach Municipal
Code to require such permits.
25. 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 the Xanadu Café Minor Use Permit Amendment including, but
not limited to, Minor Use Permit No. UP2021-036 (PA2021-220). 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.
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Police Department
26. The ABC License shall be limited to a Type 47 (On-Sale General – Eating Place). Any
substantial change in the ABC license type shall require subsequent review and potential
amendment of the Use Permit.
27. The Applicant shall comply with all federal, state, and local laws, and all conditions of the
ABC 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.
28. 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. 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 180 days of the issuance of the certificate of
occupancy. 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.
29. The Applicant shall maintain a security recording system with a 30-day retention and
make those recording available to police upon request.
30. Approval does not permit the premises to operate as a bar, tavern, cocktail lounge, or
nightclub as defined by the NBMC.
31. There shall be no live entertainment or dancing allowed on the premises.
32. No alcoholic beverages shall be consumed on any property adjacent to the licensed
premises under the control of the licensee.
33. 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.
34. No games or contests requiring or involving the consumption of alcoholic beverages shall
be allowed.
35. Petitioner shall not share any profits or pay any percentage or commission to a promoter,
or any other person based upon monies collected as a door charge, cover charge, or any
other form of admission charge, including minimum drink orders or the sale of drinks.
36. Food service from the regular menu must be made available to patrons until 30 minutes
prior to closing.
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37. The quarterly gross sales of alcoholic beverages shall not exceed the gross sales of food
during the same period. The license shall at all times maintain records, which reflect
separately the gross sales of food and the gross sales of alcoholic beverages of the
licensed business. These records shall be kept no less frequently than on a quarterly
basis and shall be made available to the Police Department on demand.
38. 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.
39. Strict adherence to maximum occupancy limit is required.
40. “VIP” passes or other passes to enter the establishment, as well as door charges, cover
charges, or any other form of admission charge, including minimum drink order of the sale
of drinks is prohibited (excluding charges for prix fixe meals).
41. The outdoor dining patio shall be separated from the public right-of-way with a solid
decorative barrier (subject to ADA compliance) around the perimeter of the consumption
area to meet the minimum requirements of ABC and shall not be located beyond private
property.
42. The Applicant shall post and maintain professional quality signs measuring 12 inches by
12 inches with lettering no smaller than two (2) inches in height that read, “No alcoholic
Beverages Beyond This Point” at all premises exits.