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HomeMy WebLinkAbout2.0_The House Conditional Use Permit Amendment_PA2023-0143 CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT September 7, 2023 Agenda Item No. 2 SUBJECT: The House Conditional Use Permit Amendment (PA2023-0143) ▪ Conditional Use Permit SITE LOCATION: 2601 West Coast Highway APPLICANT: The House OWNER: Pizza Nova PCH LLC PLANNER: David Lee, Senior Planner 949-644-3225, dlee@newportbeachca.gov PROJECT SUMMARY An amendment to a conditional use permit to remove the condition of approval that limits the use of boat slips at all times for exclusive use by patrons for an existing eating and drinking establishment (restaurant) with late hours, live entertainment, alcohol sales, outdoor dining, and delivery. The current restaurant operator, The House Restaurant, will continue to comply with a previously approved parking management plan which addressed off-site parking, valet, and an adjustment to the off-street parking requirements, and includes other related conditions. This item was continued from the August 3, 2023 Planning Commission meeting. RECOMMENDATION 1) Conduct a public hearing; 2) Find this review exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, because it has no potential to have a significant effect on the environment; and 3) Adopt Resolution No. PC2023-032 approving a conditional use permit (Attachment No. PC 1). 1 INTENTIONALLY BLANK PAGE2 The House Conditional Use Permit Amendment (PA2023-0143) Planning Commission, September 7, 2023 Page 2 VICINITY MAP GENERAL PLAN ZONING LOCATION GENERAL PLAN ZONING CURRENT USE ON-SITE MU-W1 (Mixed-Use Water 1) MU-W1 (Mixed-Use Water) The House Restaurant NORTH MU-H1 (Mixed-Use Horizontal 1) MU-MM (Mixed-Use Mariners’ Mile) Multi-tenant Commercial SOUTH N/A N/A Newport Bay EAST MU-W1 MU-W1 Private Marina WEST MU-W1 MU-W1 GuacAmigos Restaurant 3 The House Conditional Use Permit Amendment (PA2023-0143) Planning Commission, September 7, 2023 Page 3 INTRODUCTION Project Setting and Background The subject property is located on the south side of West Coast Highway within Mariners’ Mile. The property is approximately 12,000 square feet in area (50 feet wide by 240 feet deep). The lot is developed with a 3,987-square-foot single-story restaurant building, a surface parking lot with 12 parking spaces, and a boat slip that can accommodate several boats depending on size. A restaurant use was originally established in 1968, prior to the requirement of a use permit for eating and drinking establishments. In 2004, the Planning Commission approved UP2003-036, authorizing Josh Slocum’s Restaurant and Nightclub. Subsequently, UP2011-001 was approved on June 9, 2011 and authorized the Dry Dock restaurant, which included late hours until 2 a.m., live entertainment on Saturdays and Sundays from 2 p.m. to 7 p.m., and a Type 47 (On-Sale General – Eating Place) Alcoholic Beverage Control (ABC) License. The approval also included a parking management plan to address off-site parking, valet, and an adjustment to off-street parking requirements. Subsequent to the approval of UP2011-001, multiple operators have operated an eating and drinking establishment at the property pursuant to the approved use permit, including DivBar (2011), Pizza Nova (2014), and Mama’s (2019). The current operator, The House, has been in operation since 2021 and is subject to the approved conditions of approval of UP2011-001 (Attachment No. PC 3). In December of 2022, staff learned that The House had been operating with an additional dining patio on a floating vessel docked in the boat slip adjacent to the restaurant (see Figure 1, below). The vessel is approximately 30 feet wide by 30 feet deep (900 square feet). Based on the advertisements found on The House’s website, among other publications, the vessel was being treated as a part of the restaurant’s layout and included food and drink service with live entertainment. Staff sent correspondence to The House, dated December 21, 2022, regarding the violation (Attachment No. PC 8). Additionally, there are two active Code Enforcement cases related to the floating outdoor dining vessel. In September of 2022, Code Enforcement received a complaint regarding ADA accessibility for the dock ramp to the vessel. In November of 2022, the Harbor Department enforcement staff received a noise complaint from the vessel. On December 23, 2022, the Department of Alcoholic Beverage Control (ABC) sent the operator a Notice of Violation regarding the consumption of alcohol on vessel, which is considered an unlicensed patio (Attachment No. PC 9). 4 The House Conditional Use Permit Amendment (PA2023-0143) Planning Commission, September 7, 2023 Page 4 Figure 1: Floating Outdoor Patio Vessel (Image Source: The House website) The use of the floating outdoor patio vessel violated the following conditions of the existing use permit (UP2011-001), included in Attachment No. PC 3: Condition 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; Condition 7: The outdoor dining area shall be limited to 429 square feet or 25 percent of the interior net public area, whichever is less; Condition 9: There shall be no live entertainment allowed on the premises without first obtaining a live entertainment permit from the City; Condition 10: Live entertainment shall be confined to the interior of the structure; Condition 12: There shall be no dancing allowed on the premises or Café Dance permit issued without an amendment to this Conditional Use Permit; Condition 35: No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the licensee; and Condition 65: The boat slips shall be available at all times for exclusive use by the patrons of the establishment. The owner and operator shall be prohibited from renting or leasing the boat slips. 5 The House Conditional Use Permit Amendment (PA2023-0143) Planning Commission, September 7, 2023 Page 5 Please note that if the Planning Commission approves the proposed amendment, the attached draft resolution (Attachment No. PC 1) would supersede UP2011-001 (Attachment No. PC 3). Therefore, in order to effectively update the draft resolution, the order and references for the conditions will change. When describing existing conditions of approval, they are referenced as a part of UP2011-005. When describing recommended conditions, they are referenced as proposed conditions as part of the draft resolution. Annual Review On August 3, 2023, the Planning Commission conducted a public hearing for an annual review of UP2011-001. The review was based on a condition of approval which requires UP2011-001 to be reviewed by the Planning Commission at a noticed public hearing within one year of the restaurant being in operation and annually thereafter. Prior to the public hearing, the applicant submitted requested modifications to the existing conditions of approval for UP2011-001 to allow retention of the vessel and limit its use. The vessel owner, who is the operator of the restaurant, has indicated they no longer intend to utilize the vessel as an outdoor dining patio in conjunction with the restaurant. Rather, the operator intends to invite guests to utilize his vessel from time to time just as any boat owner could invite guests to use their boat (an unregulated activity). After a brief discussion regarding the vessel, the item was continued to the September 7, 2023, Planning Commission meeting so that the operator could apply for an amendment to the use permit, with modified conditions of approval to allow the storage of the vessel. The staff report for the annual review is included as Attachment No. PC 4. Applicant’s Request (Project Description) As previously noted, the operator proposes to utilize the vessel for his personal guests independently from the restaurant. The House restaurant would not provide food or drink service to guests on the vessel or the docks. Invited guests to the vessel would not be required to be customers of the restaurant, but they may be. Vessel guests would not be restricted from bringing their own food and drink to enjoy while on the vessel. Based on current conditions, the vessel accommodates tables, chairs, umbrellas and space heaters to provide a suitable environment for passengers. The applicant does not propose any limitations on when or how often the invite guests to visit the vessel. However, due to the previous violations and the patio-like construction of the vessel, there remains the possibility of the vessel being used as an extended outdoor dining patio for the restaurant. Therefore, the applicant’s request includes proposed conditions of approval to limit activities permitted on the vessel (Attachment No. PC 2). There are no restrictions on how a boat owner uses their vessel within the harbor. Boat owners can operate or recreate on their boat without taking the boat out of the docks provided its use is done safely in accordance with Coast Guard regulations and Harbor Department rules. They can invite guests or authorize other trusted individuals to use the vessel when the owner is not present. Staff assumes these features will be provided to 6 The House Conditional Use Permit Amendment (PA2023-0143) Planning Commission, September 7, 2023 Page 6 guests of the vessel. The applicant is seeking to operate the vessel in a similar unregulated manner to other boats. The applicant is not requesting any operational changes to the restaurant from what is currently existing (see Table 1, below). Table 1: Operational Characteristics Previously Authorized by UP2011-001 Existing and Proposed Operation Hours of Operation 11 a.m. to 11 p.m., Mon. – Fri. 9 a.m. to 11 p.m., Sat. – Sun. Closed Mon. & Tues. Noon to 11 p.m., Wed. – Fri. 11 a.m. to 11 p.m., Sat. – Sun. Net Public Area 1,719 sq. ft. (max) 1,364 sq. ft. Outdoor Dining Area 429 sq. ft. (max) 380 sq. ft. Parking 12 on-site 20 off-site 12 on-site 20 off-site Alcohol License Type 47 (On-Sale, General) Type 47 Live Entertainment 2 p.m. to 7 p.m., Sat. and Sun. None UP2011-001 authorized hours of operation until 11 p.m., but also included conditions of approval which extends the hours of operation until 2 a.m. at the latest (1:30 a.m. for the outdoor dining area) if an Operator License is secured pursuant to Chapter 5.25 of the Municipal Code. Additionally, live entertainment is permitted between 2 p.m. and 7 p.m., on Saturdays and Sundays, only if the operator first obtains a live entertainment permit from the City. Although the Operator does not currently operate with late hours or live entertainment, they are requesting to maintain the allowance within their amended CUP. DISCUSSION Analysis General Plan, Zoning Code, and Local Coastal Program The subject property, exclusive of the water portion, is categorized as Mixed-Use Water Related (MU-W1) by the Land Use Element of the General Plan, which is applied to waterfront locations along Mariners’ Mile Corridor in which marine-related, visitor-serving, commercial, and residential uses are allowed. The restaurant is consistent with the MU- W1 land use category, as eating and drinking establishments are visitor-serving and commercial uses. The subject property, again exclusive of the water portion of the property, is located within the Mixed-Use Water Related (MU-W1) Zoning District, which applies to waterfront properties along the Mariners’ Mile Corridor in which nonresidential uses and residential dwelling units may be intermixed. Eating and drinking establishments designated as 7 The House Conditional Use Permit Amendment (PA2023-0143) Planning Commission, September 7, 2023 Page 7 “Food Service, Late Hours” are allowed in the MU-W1 zoning district with approval of a conditional use permit (CUP). Facilities open to the public past 11:00 p.m. any day of the week are considered establishments with late hours. Late hours were previously approved by the Planning Commission through UP2011-001 under the condition that an Operator License is obtained pursuant Section 5.25 of the NBMC. Although the current establishment does not currently include late hours of operation, the establishment may operate until 2 a.m. if the Applicant secures an Operator License. The subject property is located in the coastal zone, as is categorized as Mixed-Use Water Related (MU-W) by the Coastal Land Use Plan (CLUP) and located in the Mixed-Use Water (MU-W1) coastal zoning district. Again, these designations do not apply to the water portion of the property. Eating and drinking establishments are permitted within the MU-W1 coastal zoning district; however, since the proposed amendment is for the purpose of modifying an existing CUP to remove the condition of approval that limits the use of boat slips at all times for exclusive use by patrons for an existing restaurant, the project is not considered development nor an intensification of use in the coastal zone. Therefore, a coastal development permit is not required. The southerly portion of the property, approximately 36 feet, is submerged and designated Tidelands and Submerged Lands (TS) by the General Plan and Local Coastal Program. The TS category is intended to address the use, management, and protection of tidelands and submerged lands of Newport Bay and the Pacific Ocean immediately adjacent to the City. The request to store and use a vessel in the existing boat dock is consistent with the TS category, as it is typical for vessels to be stored and used on existing boat docks for waterfront properties along Mariners’ Mile. Parking and Condition Restricting Use of Boat Slips Section 21.40.060 (Parking Requirements for Food Service Uses) establishes criteria to determine the parking requirement for food uses from one (1) parking space for every 30- 50 square feet of net public area. Based on the physical design characteristics, operational characteristics, and location of the establishment, a parking requirement of one (1) space for every 40 square feet of net public area is appropriate. Per UP2011-001, the restaurant was previously authorized for 1,719 square feet of interior NPA which resulted in a parking requirement of 43 parking spaces. UP2011-001 waived 11 of the required 43 parking spaces, resulting in a 32-space parking requirement (see Table 2, below). Since the property provides only 12 on-site spaces, the Planning Commission conditioned the restaurant to record a parking agreement with 2615 Avon Street for the remaining 20 parking spaces and approved a parking management plan which included valet. The Planning Commission also included Condition 65 as a part of UP2011-005, which required that the boat slips are to be available at all times for exclusive use by the patrons of the establishment, and that the owner and operator are prohibited from renting or leasing the boat slips. This condition of approval was intended to alleviate the lack of on-site parking provided by the restaurant, since patrons could travel to the restaurant by boat as well. 8 The House Conditional Use Permit Amendment (PA2023-0143) Planning Commission, September 7, 2023 Page 8 The operator has reduced the restaurant’s interior NPA and outdoor dining area through a tenant improvement that was approved by the City in 2021. The interior NPA was reduced from 1,719 square feet to 1,364 square feet, and the outdoor dining was reduced from 429 square feet to 380 square feet. This results in a seven-space reduction in the required parking. The Zoning Code allows for 25 percent of the interior net public area to be deducted from the outdoor dining area for parking purposes, resulting in 39 square feet of outdoor dining for parking calculation purposes. Therefore, a total NPA of 1,403 square feet needs to be counted for parking. With the previously approved waiver of 11 spaces, a total of 25 parking spaces are required for the restaurant today compared to the previous requirement of 32 spaces (Table 2). The reduction in net public area reduces the overall parking demands and offsets the need for customer usage of the boat slips. Therefore, proposed Condition 8 of the draft resolution reduces the maximum allowed interior NPA and outdoor dining area commensurate with existing conditions. Table 2: Previous and Existing Parking Demand Previously Approved Operational Conditions Net Public Area Outdoor Dining Area Parking Ratio Required Spaces* 1,719 sq. ft. 429 sq. ft. 1 per 40 sq. ft. NPA 32 Existing Operational Conditions Net Public Area Outdoor Dining Area Parking Ratio Required Spaces* 1,364 sq. ft. 380 sq. ft. 1 per 40 sq. ft. NPA 25 * Includes 11-space parking waiver authorized by UP2011-001 The operator is requesting that 50 percent of the existing dock slips available for patron use, where the existing use permit requires that the entire dock is open for patrons. The existing dock is approximately 115 feet deep and was previously estimated to fit approximately 10 boats, depending on the size of the boat. With 50 percent of the dock available for patron use, a conservative estimate of four patron boats can fit in the remaining approximate 57 feet of dock space. Since there was a significant reduction in interior NPA and outdoor dining area which results in a reduction in parking demand by seven spaces, the reduction of available dock space is justified and is not expected to negatively impact the existing parking situation. Continuation of Parking Management Plan A Parking Management Plan was previously approved by the Planning Commission through UP2011-001 and has been implemented to mitigate impacts associated with a reduction in the number of required parking spaces. The Parking Management Plan and valet plan (Attachment No. PC 3) has resulted in an efficient use of the parking spaces available to the restaurant patrons, as originally intended. The operator is compliant with the previously approved Parking Management Plan, which requires 20 off-site parking spaces at 2615 Avon Street and valet operations. Additionally, the Planning Commission 9 The House Conditional Use Permit Amendment (PA2023-0143) Planning Commission, September 7, 2023 Page 9 included Condition 66 in UP2011-005, which requires all employees to obtain annual parking permits at the Mariners’ Mile parking lot on Avon Street. This condition has been included as proposed Condition 23 in the draft resolution. Alcohol Sales The restaurant operation includes a Type 47 Department of Alcoholic Beverage Control (ABC) License (On-Sale, General). A Type 47 ABC License was originally permitted in 2004 by the Planning Commission for Josh Slocum’s Restaurant and Nightclub (Use Permit No. UP2003-036). Subsequently in 2011, the Planning Commission approved Use Permit No. 2011-001 for Dry Dock restaurant, which also included a Type 47 ABC License. Pursuant to Section 20.48.090.G.2 (Eating and Drinking Establishments – Existing Establishments). The request does not include a substantial change to the establishment. There is no request to change license type to ABC, nor is there a proposed increase in floor area dedicated to alcohol sales. The restaurant’s ABC license has never been revoked or suspended. Although there are recent violations observed by Code Enforcement and ABC regarding noise, accessibility, and alcohol service on the requested vessel, the operator has ceased using the vessel as a part of the restaurant and proposes for the vessel to be for personal use only. Conditions of approval are included which prohibit drink service from the restaurant on all docked vessels. Conditional Use Permit Findings In accordance with Section 20.52.020 (Conditional Use Permits and Minor Use Permits), the Planning Commission must make the following findings for approval of a conditional use permit: 1.The use is consistent with the General Plan and any applicable specific plan. 2.The use is allowed within the applicable zoning district and complies with all other applicable provisions of the Zoning Code and the Municipal Code. 3.The design, location, size, and operating characteristics of the use are compatible with the allowed uses in the vicinity. 4.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. 5.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. 10 The House Conditional Use Permit Amendment (PA2023-0143) Planning Commission, September 7, 2023 Page 10 As previously discussed, the continued operation of the restaurant at the subject property is consistent with the purpose and intent of the MU-W2 General Plan and Zoning categories. The MU-W1 land use category allows a floor area to land ratio (FAR) of 0.5 for a commercial-only use. The existing restaurant complies with this requirement, as the lot is approximately 12,000 square feet in area and consists of a 3,987-square-foot single- story restaurant building (0.3 FAR), a surface parking lot with 12 parking spaces, and a boat slip that can accommodate several boats depending on size. Since the request does not result in an increase in FAR, it is therefore consistent with the Land Use Element development limitations. The existing operator has reduced the interior net public area and outdoor dining area, and therefore has provided alleviation to the previous concerns of parking. However, the operator will continue to comply with the previously conditioned parking requirements, which are 12 on-site spaces and 20 off-site spaces located at 2615 Avon Street. The request to amend UP2011-001 is for the purpose of removing a condition of approval that limits the use of boat slips at all times for exclusive use by restaurant patrons. Removal of this condition, along with new conditions, will allow the storage and limited use of a vessel within the adjacent boat dock, which is compatible with the allowed uses in the vicinity. It is typical for boat docks along Mariners’ Mile to have personal vessels stored and used. As conditioned, there shall be no food or beverage service, live entertainment, or dancing permitted on docked vessels. The vessel is not to be used in conjunction with the restaurant and is to be maintained in a sea-worthy and operating condition. The amendment does not include any physical or operational changes to the restaurant. The restaurant does not currently operate with late hours and does not include live entertainment or dancing. However, the operator may operate with those characteristics if an Operator License and/or other applicable permits are obtained (ie. Live Entertainment Permit and Café Dance Permit). The subject property is physically suitable for the existing restaurant. The existing building and parking lot have functioned satisfactorily in the past with the current configuration. The allowance of a vessel to be stored and used in the adjacent boat dock will not negatively affect emergency access from West Coast Highway. The Property is an interior lot and has multiple doors and windows for ingress and egress. The building is located 6 feet from the easterly property line to provide for sufficient room for emergency access. Due to the unique nature of the requested vessel, the Project has been reviewed and conditioned to ensure that potential conflicts with surrounding land uses are minimized to the extent possible to maintain a healthy environment for residents and businesses. The property is located approximately 500 feet south of residences on Tustin Avenue. Since there is no operational change associated with the amendment, there are no concerns regarding noise towards the residences across West Coast Highway to the north. The property is also located approximately 800 feet north of residences on Lido Isle, which is across the Lido Channel. The draft resolution includes conditions which prohibit food or drink service, live entertainment, or dancing on the vessel, which are intended to reduce noise impacts to residents across the Channel. Proposed Condition 28 of the draft 11 The House Conditional Use Permit Amendment (PA2023-0143) Planning Commission, September 7, 2023 Page 11 resolution requires that all activities on the vessel are to comply with the required noise standards of the NBMC. Recommended Conditions of Approval As part of the project request, the operator is proposing to amend the conditions of approval of the CUP to allow for the storage and limited use of a personal vessel in the adjacent boat dock (Attachment No. PC 2). Staff has modified the language of the operator’s requested conditions, as well as provided additional conditions, for the purpose of ensuring that the vessel does not operate as an additional outdoor dining patio for the restaurant consistent with the applicant’s request. The following are staff’s recommended conditions related to the vessel: Condition 11 (modified from former Condition 65): No less than 50 percent of the total length of the boat slips shall be available at all times for exclusive use by the patrons of the establishment. The owner and operator shall be prohibited from renting or leasing said boat slips and from storing additional vessels. Condition 12 (new): The permitted docked vessel shall be maintained in a sea-worthy and operating condition and have current registration or certificate of documentation. Condition 13 (new): There shall be no commercial charters from the boat dock. Condition 14 (new): The permitted docked vessel shall not be used as an extension of the permitted eating and drinking establishment or as an additional outdoor dining patio. Condition 15 (new): Food and drink service shall not be permitted on any docked vessel. Condition 16 (modified from former Condition 10): Noise from the live entertainment shall be confined to the interior of the structure. Live entertainment shall be prohibited on docked vessels. Condition 18 (modified from former Condition 12): There shall be no dancing allowed on the premises or Cafe Dance permit issued without an amendment to this Conditional Use Permit. Dancing is prohibited on docked vessels. Condition 22 (modified from former Condition 23): Notwithstanding the permitted docked vessel, no other recreational vehicles, boats, or similar vehicles shall be stored at any time at the subject site. Additional updated conditions of approval for the restaurant are included in Exhibit “A” of the draft resolution (Attachment No. PC 1). Also, staff is recommending omitting Condition 2 of UP2011-005 (Attachment No. PC 3) from the draft resolution. The condition reads: 12 The House Conditional Use Permit Amendment (PA2023-0143) Planning Commission, September 7, 2023 Page 12 The Conditional Use Permit shall be reviewed by the Planning Commission at a noticed public hearing within one (1) year of the restaurant being in operation and annually thereafter. The applicant, or operator, shall provide the off-site parking agreement for the next year(s) for the Planning Commission’s review at this hearing. Staff believes that an annual review of the establishment moving forward is unnecessary when the restaurant is operating in compliance with the conditions of approval. Furthermore, the City has adequate enforcement resources between Code Enforcement and Harbor Enforcement to properly monitor the operation and the City retains the ability to refer the use permit to the Planning Commission for review on an as-needed basis pursuant to Newport Beach Municipal Code Section 20.68.050 (Legal Remedies). Through that process, the City could modify or revoke the use permit if warranted. Summary The applicant’s request as conditioned addresses the violations of the existing use permit. The proposed conditions related to the use of the vessel will ensure the vessel is not used as a restaurant outdoor patio. The use of the vessel will be similar to the way that other boats in the harbor can be used. The applicant’s planned use of the vessel should also reduce the potential of nuisance generating activities. The storage of the applicant’s boat in the dock reduces short-term boat storage for restaurant patrons, a parking demand strategy; however, it is off-set by the reduced size of the restaurant. Should the proposed amendment be approved, staff will monitor the use and take appropriate action should any issues occur. Environmental Review 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, Chapter 3 because it has no potential to have a significant effect on the environment. Class 1 exempts minor alterations to existing facilities. The project consists allowing the storage and limited use of a personal vessel within the adjacent boat dock of an existing restaurant. Public Notice Notice of this hearing was published in the Daily Pilot, mailed to all owners and occupants of property within 300 feet of the boundaries of the site (excluding intervening rights-of- way and waterways) including the applicant, and posted on the subject property at least 10 days before the scheduled meeting, consistent with the provisions of the Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the City website. 13 The House Conditional Use Permit Amendment (PA2023-0143) Planning Commission, September 7, 2023 Page 13 Prepared by: Submitted by: ______________________ David Lee, Senior Planner ATTACHMENTS PC 1 Draft Resolution PC 2 Applicant’s Project Request PC 3 Use Permit No. UP2011-001 PC 4 Annual Review Staff Report from August 3, 2023 Planning Commission Meeting PC 5 Parking Management Plan PC 6 Approved Tenant Improvement Plans for The House from 2021 PC 7 Approved Plans from UP2011-001 PC 8 Correspondence from December 21, 2022 PC 9 Notice of Violation from Department of Alcoholic Beverage Control 01/18/23 14 Attachment No. PC 1 Draft Resolution 15 INTENTIONALLY BLANK PAGE16 RESOLUTION NO. PC2023-032 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA APPROVING AN AMENDMENT TO USE PERMIT NO. UP2011-001 WHICH PROHIBITS STORAGE OF A PERSONAL VESSEL AT AN EXISTING EATING AND DRINKING ESTABLISHMENT WITH LATE HOURS, LIVE ENTERTAINMENT, ALCOHOL SALES, OUTDOOR DINING, PARKING MANAGEMENT PLAN, AND ADJUSTMENT TO THE OFF-STREET PARKING REQUIREMENTS SUBJECT TO ADDITIONAL CONDITIONS FOR THE PROPERTY LOCATED AT 2601 WEST COAST HIGHWAY (PA2023-0143) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1.An application was filed by Sean Matsler of Cox, Castle, & Nicholson LLP (“Applicant”), concerning property located at 2601 West Coast Highway, and legally described as the northwesterly 50 feet of the southeasterly 1300 feet of Lot H of Tract 919 (“Property”). 2.In 2004, the Planning Commission approved Conditional Use Permit No. UP2003-036, authorizing Josh Slocum’s Restaurant and Nightclub. 3.In 2011, the Planning Commission approved a Conditional Use Permit No. UP2011-001 to allow a food service restaurant with late hours, live entertainment, and a Type 47 (On- Sale General – Eating Place) Alcoholic Beverage Control (“ABC”) License. The approval also included a parking management plan (“Parking Management Plan”), an adjustment to off-street parking requirements and a condition that required boat slips be available at all times for exclusive use by restaurant patrons and prohibited the owner and operator from renting or leasing the boat slips so as to alleviate the lack of on-site parking through patron access by boat. 4.The current operator, The House (“Restaurant”) has been in operation since 2021 and is subject to Conditional Use Permit No. UP2011-001 conditions of approval. 5.The Applicant now requests an amendment to a conditional use permit to remove the condition that limits the use of boat slips at all times for exclusive use by restaurant patrons. The Applicant will continue to comply with the previously approved Parking Management Plan which addressed off-site parking, valet, an adjustment to the off- street parking requirements, and includes other related conditions (“Project”). 6.The Property is designated Mixed-Use Water 1 (MU-W1) by the General Plan Land Use Element and is located within the Mixed-Use Water (MU-W1) Zoning District. 17 Planning Commission Resolution No. PC2023-032 Page 2 of 18 01-17-23 7.The Property is located within the coastal zone. The Coastal Land Use Plan category is Mixed-Use Water Related (MU-W) and is located within the Mixed-Use Water (MU-W1) Coastal Zoning District. 8.A public hearing was held on September 7, 2023, in the Council Chambers at 100 Civic Center Drive, Newport Beach, California. A notice of the time, place, and purpose of the hearing was given in accordance with California Government Code Section 54950 et seq. 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 hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1.This Project is exempt from the California Environmental Quality Act (“CEQA”) under 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.Class 1 exempts minor alterations to existing facilities. The Project does not change the operational characteristics of the Restaurant, but instead removes a condition that limits the use of boat slips at all times for exclusive use by restaurant patrons and makes other related revisions. SECTION 3. REQUIRED FINDINGS. Conditional Use Permit By Section 20.52.020 (Conditional Use Permits) of the Newport Beach Municipal Code, the following findings and facts in support of such findings are set forth: Finding: A.The use is consistent with the General Plan and any applicable specific plan. Facts in Support of Finding: 1.The Property is categorized as Mixed-Use Water 1 (MU-W1) by the Land Use Element of the General Plan, which is applied to waterfront locations along Mariners’ Mile Corridor in which marine-related, visitor-serving, commercial, and residential uses are allowed. The Project is consistent with the Mixed-Use Water 1 (MU-W1) land use category, as eating and drinking establishments are visitor-serving and commercial uses. The Property includes boat slips that are available for patrons who travel by boat to the Restaurant. Furthermore, Land Use Policy LU 6.19.2 (Bay Fronting Properties) encourages marine-related and visitor-serving retail, restaurant, hotel, institutional, and recreational uses, with some allowance for residential uses. 18 Planning Commission Resolution No. PC2023-032 Page 3 of 18 01-17-23 2. The Mixed-Use Water 1 (MU-W1) land use category allows a floor area to land ratio (“FAR”) of 0.5 for a commercial-only use. The Property complies with this requirement, as the lot is approximately 12,000 square feet in area and consists of a 3,987-square- foot single-story restaurant building (0.3 FAR), a surface parking lot with 12 parking spaces, and a boat slip that can accommodate several boats depending on size. The Project will not result in an increase in FAR and is therefore consistent with the Land Use Element development limitations. 3. The Project is consistent with the Mixed-Use Water 1 (MU-W1) land use category, as the Restaurant is a visitor-serving, commercial use that is located on the waterfront. It is typical for vessels to be stored and used on boat docks for waterfront properties along Mariners’ Mile. The vessel is not an extension of the Restaurant and is conditioned to not include food and drink service from the Restaurant. 4. The southerly portion of the property, approximately 36 feet, is submerged and designated Tidelands and Submerged Lands (TS) by the General Plan and Local Coastal Program. The TS category is intended to address the use, management, and protection of tidelands and submerged lands of Newport Bay and the Pacific Ocean immediately adjacent to the City. The request to store and use a vessel in the existing boat dock is consistent with the TS category, as it is typical for vessels to be stored and used on existing boat docks for waterfront properties along Mariners’ Mile. 5. The Property is not located in a specific plan area. Finding: B. 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 within the Mixed-Use Water (MU-W1) Zoning District, which applies to waterfront properties along the Mariners’ Mile Corridor in which nonresidential uses and residential dwelling units may be intermixed. Eating and drinking establishments designated as “Food Service, Late Hours” are allowed with approval of a CUP. Facilities open to the public past 11:00 p.m. any day of the week are considered establishments with late hours. Late hours were previously approved by the Planning Commission through UP2011-001 under the condition that an Operator License is obtained pursuant Chapter 5.25 (Operator License for Establishments Offering Alcoholic Beverages for On-Site Consumption in Combination with Late Hours, Entertainment, and/or Dance) of the NBMC. Although the Restaurant does not currently include late hours of operation, it may operate until 2 a.m. if the Applicant secures an Operator License. 2. The Restaurant complies with the required operational standards per Section 20.48.090 (Eating and Drinking Establishments) of the NBMC. The Restaurant consists of an interior net public area (“NPA”) of 1,364 square feet, reduced from the 1,719 square feet 19 Planning Commission Resolution No. PC2023-032 Page 4 of 18 01-17-23 previously authorized by the Planning Commission. Additionally, the existing outdoor dining area, located in the front of the Restaurant adjacent to the parking lot, has been reduced from 429 square feet to 380 square feet. As conditioned, no alcoholic beverages are to be consumed on any property adjacent to the licensed premises under the control of the licensee, and no food or drink service is permitted on the requested vessel. Also conditioned is the requirement for all owners, managers, and employees serving alcoholic beverages to undergo a certified training program in responsible methods and skills for alcohol service. 3. The Restaurant operation includes a Type 47 ABC License (On-Sale, General). A Type 47 ABC License was originally permitted in 2004 by the Planning Commission for Josh Slocum’s Restaurant and Nightclub (Use Permit No. UP2003-036). Subsequently in 2011, the Planning Commission approved Use Permit No. 2011-001 for Dry Dock restaurant, which also included a Type 47 ABC License. Pursuant to Section 20.48.090(G)(2) (Eating and Drinking Establishments – Existing Establishments), the Project does not include a substantial change to the establishment. There is no request to change license type to ABC, nor is there a proposed increase in floor area dedicated to alcohol sales. The Restaurant’s ABC license has never been revoked or suspended. Although there are recent violations observed by Code Enforcement and ABC regarding noise, accessibility, and alcohol service on the requested vessel, the Applicant has ceased using the vessel as a part of the Restaurant and proposes for the vessel to be for personal use only. Conditions of approval are included which prohibit drink service from the restaurant on all docked vessels. 4. Section 20.40.040 (Parking Requirements for Food Service Uses) establishes criteria to determine the parking requirement for food uses from one parking space for every 30- 50 square feet of net public area. Based on the physical design characteristics, operational characteristics, and location of the Restaurant, a parking requirement of one space for every 40 square feet of net public area is appropriate. Per Conditional Use Permit No. UP2011-001, the restaurant was previously authorized for 1,719 square feet of interior NPA which resulted in a parking requirement of 43 parking spaces (1,719 / 40 = 43). Conditional Use Permit No. UP2011-001 waived 11 of the required 43 parking spaces, resulting in a 32-space parking requirement. Since the Property provides only 12 on-site spaces, the Planning Commission conditioned the restaurant to record a parking agreement with 2615 Avon Street for the remaining 20 parking spaces and approved a Parking Management Plan which included valet. The Planning Commission also included Condition of Approval No. 65, which required that the boat slips be available at all times for exclusive use by the patrons of the establishment, and prohibited the owner and operator from renting or leasing the boat slips. This condition of approval was intended to alleviate the lack of on-site parking provided by the restaurant, since patrons could travel to the restaurant by boat as well. 5. The Applicant has reduced the Restaurant’s interior NPA and outdoor dining area through a tenant improvement that was approved by the City in 2021. The interior NPA was reduced from 1,719 square feet to 1,364 square feet, and the outdoor dining was reduced from 429 square feet to 380 square feet. Title 20 (Planning and Zoning) of the NBMC allows for 25 percent of the interior net public area to be deducted from the 20 Planning Commission Resolution No. PC2023-032 Page 5 of 18 01-17-23 outdoor dining area for parking purposes, resulting in 39 square feet of outdoor dining for parking calculation purposes. Therefore, a total NPA of 1,403 square feet needs to be counted for parking (1,364 + 39 = 1,403). With the previously approved waiver of 11 spaces, a total of 25 parking spaces are required for the Restaurant today (1,403 / 40 = 36 – 11 = 25), compared to the previous requirement of 32 spaces. 6. The Applicant is requesting for 50 percent of the existing dock slips available for patron use, where the existing use permit requires that the entire dock is open for patrons. The existing dock is approximately 115 feet deep and was previously estimated to fit approximately ten boats, depending on the size of the boat. With 50 percent of the dock available for patron use, a conservative estimate of four patron boats can fit in the remaining approximate 57 feet of dock space. Since there was a significant reduction in interior NPA and outdoor dining area which results in a reduction in parking demand by seven spaces, the reduction of available dock space to patrons will not negatively impact the existing parking situation. 7. Pursuant to Section 20.40.110 (Adjustments to the Off-Street Parking Requirements), a Parking Management Plan was previously approved by the Planning Commission through UP2011-001 and has been implemented to mitigate impacts associated with a reduction in the number of required parking spaces. The Parking Management Plan and valet plan has resulted in an efficient use of the parking spaces available to the Restaurant patrons, as originally intended. The Applicant is compliant with the previously approved Parking Management Plan, which requires 20 off-site parking spaces at 2615 Avon Street and valet operations. Finding: C. 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 is located within a nonresidential zoning district. The parking lot and primary openings to the Restaurant are oriented towards West Coast Highway. The outdoor dining area faces the parking lot. The operational characteristics are that of a restaurant, and the Restaurant will not be used exclusively as a bar or nightclub, as defined by Title 20 (Planning and Zoning) of the NBMC. 2. The Project is an amendment to Conditional Use Permit No. UP2011-001 to remove the condition that limits the use of boat slips at all times for exclusive use by restaurant patrons. It is typical for boat docks along Mariners’ Mile to have personal vessels stored and used. As conditioned, there shall be no food or beverage service, live entertainment, or dancing permitted on docked vessels. The vessel is not to be used in conjunction with the Restaurant. 3. The Project does not include any physical or operational changes to the Restaurant. The Restaurant does not currently operate with late hours and does not include live 21 Planning Commission Resolution No. PC2023-032 Page 6 of 18 01-17-23 entertainment or dancing. However, the Applicant may operate with those characteristics if an Operator License and/or other applicable permits are obtained (ie. Live Entertainment Permit and Café Dance Permit). Finding: D. 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. Fact in Support of Finding: 1. The Property is approximately 50 feet wide by 240 feet deep (12,000 square feet in area) and is developed with a 3,987-square-foot single-story commercial building, a surface parking lot with twelve (12) parking spaces, and a 115-foot-deep boat slip. The existing building and parking lot have functioned satisfactorily in the past with the current configuration. The Project does not change the operational characteristics of the Restaurant, but instead removes a condition that limits the use of boat slips at all times for exclusive use by restaurant patrons and makes other related revisions. The Project will not negatively affect emergency access from West Coast Highway. The Property is an interior lot and has multiple doors and windows for ingress and egress. The building is located six feet from the easterly property line to provide sufficient room for emergency access. Finding: E. 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 Restaurant is compatible with the neighborhood because the Mariners’ Mile area is an established commercial area with several similar uses nearby. The Property is located on the heavily traveled West Coast Highway and has been utilized for restaurant uses since 1968. The Project does not change the operational characteristics of the Restaurant, but instead removes a condition that limits the use of boat slips at all times for exclusive use by restaurant patrons and makes other related revisions. 2. Due to the unique nature of the requested vessel, the Project has been reviewed and conditioned to ensure that potential conflicts with surrounding land uses are minimized to the extent possible to maintain a healthy environment for residents and businesses. 3. The Property is located approximately 500 feet south of residences on Tustin Avenue. Since there is no operational change associated with the Project, there are no concerns regarding noise towards the residences across West Coast Highway to the 22 Planning Commission Resolution No. PC2023-032 Page 7 of 18 01-17-23 north. The Property is also located approximately 800 feet north of residences on Lido Isle, which is across the Lido Channel. The Project has been conditioned so that there is no food or drink service, live entertainment, or dancing on the vessel, which are intended to reduce noise impacts to residents across the Channel. 4. Facts 3, 5, 6, and 7 in support of Finding B are hereby incorporated as reference. Off-Site Parking In accordance with Sections 20.40.100 (Off-Site Parking) of the NBMC, the following findings and facts in support of such findings are set forth: Finding: F. The parking facility is located within a convenient distance to the use it is intended to serve. Facts in Support of Finding: 1. The off-site parking lot at 2615 Avon Street is approximately 300 feet away from the Property, which is considered a convenient distance from the Restaurant. 2. Per the approved Parking Management Plan, valet service will be available on-site, allowing customers to drop their cars off at the Property. Valet attendants are to use the crosswalk when crossing West Coast Highway and are to obey all traffic laws while transporting vehicles. Finding: G. On-street parking is not being counted towards meeting parking requirements. Facts in Support of Finding: 1. Facts 3 and 4 in support of Finding B are hereby incorporated as reference. 2. Many public on-street parking spaces are located within a short walking distance to the Property on West Coast Highway, Tustin Avenue and Avon Street, which alleviates concerns about parking supply for the Restaurant. However, these parking spaces are not being counted towards meeting the parking requirement for the Restaurant. Finding: H. Use of the parking facility will not create undue traffic hazards or impacts in the surrounding area. 23 Planning Commission Resolution No. PC2023-032 Page 8 of 18 01-17-23 Facts in Support of Finding: 1.Employees and patrons parking in the off-site parking lot can walk down Tustin Avenue and cross at the cross walk, so there will not be any undue traffic hazards from pedestrians. 2.Valet service will be available so customers can drop off their cars at the Property. The valet plan will be reviewed and approved by the City Traffic Engineer. 3.The previously approved Parking Management Plan addresses the use of the off-site parking lot and valet operations. There have been no notable traffic hazards or impacts from the use of the off-site parking lot. Finding: I.The parking facility will be permanently available, marked, and maintained for the use it is intended to serve. Facts in Support of Finding: 1.The Applicant has a lease for 20 parking spaces within the lot located at 2615 Avon Street, where 20 spaces are required. If the required parking spaces become unavailable in the future, the applicant is required to notify the Community Development Director who will establish a reasonable time for substitute parking to be provided. 2.The off-site parking spaces are to be clearly marked for use by employees and customers of 2601 West Coast Highway. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1.The Planning Commission of the City of Newport Beach hereby finds this Project is categorically exempt from the California Environmental Quality Act under 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 a conditional use permit (PA2023-0143), subject to the conditions outlined 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 by the provisions of Title 20 Planning and Zoning, of the Newport Beach Municipal Code. 24 Planning Commission Resolution No. PC2023-032 Page 9 of 18 01-17-23 4.This resolution supersedes Planning Commission Resolution No. 1844, which upon vesting of the rights authorized by this conditional use permit, shall become null and void. PASSED, APPROVED, AND ADOPTED THIS 7TH DAY OF SEPTEMBER, 2023. AYES: NOES: ABSTAIN: ABSENT: BY:_________________________ Curtis Elmore, Chair BY:_________________________ Tristan Harris, Secretary 25 Planning Commission Resolution No. PC2023-032 Page 10 of 18 01-17-23 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.The project is subject to all applicable City ordinances, policies, and standards unless specifically waived or modified by the conditions of approval. Notwithstanding the foregoing, the project does not supersede the provisions set forth in Title 17 (Harbor Code) of the NBMC. 3.The applicant shall comply with all federal, state, and local laws. A material violation of any of those laws in connection with the use may be caused the revocation of this Use Permit. 4.The hours of operation shall be limited to between 11:00 a.m. and 11:00 p.m., Monday through Friday and between 9:00 a.m. and 11:00 p.m. Saturday and Sunday, unless the operator of the establishment secures and maintains an Operator License pursuant to Chapter 5.25 of the Municipal Code. In no case shall the establishment be permitted to operate beyond the hours of 2:00 a.m. 5.The outdoor dining patio shall be closed no later than 11:00 p.m., daily, unless the operator of the establishment secures and maintains an Operator License pursuant to Chapter 5.25 of the Municipal Code. In no case shall the outdoor dining patio be permitted to operate beyond the hours of 1:30 a.m. 6.The Operator License required to be obtained pursuant to Condition No. 4 and Chapter 5.25 of the Municipal Code may be subject to additional and/or more restrictive conditions to regulate and control potential late-hour nuisances associated with the operation of the establishment. 7.All windows shall remain closed at all times after 11:00 p.m., daily. 8.The interior net public area shall be limited to 1,364 square feet and the outdoor dining area shall be limited to 380 square feet. 9.Live entertainment is limited to Saturdays and Sundays from 2:00 p.m. to 7:00 p.m. 10.There shall be no live entertainment allowed on the premises without first obtaining a live entertainment permit from the City. 26 Planning Commission Resolution No. PC2023-032 Page 11 of 18 01-17-23 11. No less than 50 percent of the total length of the boat slips shall be available at all times for exclusive use by the patrons of the establishment. The owner and operator shall be prohibited from renting or leasing said boat slips and from storing additional vessels. 12. The permitted docked vessel shall be maintained in a sea-worthy and operating condition and have current registration or certificate of documentation. 13. There shall be no commercial charters from the boat dock. 14. The permitted docked vessel shall not be used as an extension of the permitted eating and drinking establishment or as an additional outdoor dining patio. 15. Food and drink service shall not be permitted on any docked vessel. 16. Noise from the live entertainment shall be confined to the interior of the structure. Live entertainment shall be prohibited on docked vessels. 17. The operator shall provide licensed security personnel (a minimum of one (1) per 50 patrons) while offering live entertainment. A comprehensive security plan for the permitted use shall be submitted for review and approval by the Police Department. Should security personnel not be deemed necessary by the Chief of Police, the requirement for security personnel may be reduced or waived. 18. There shall be no dancing allowed on the premises or Cafe Dance permit issued without an amendment to this Conditional Use Permit. Dancing is prohibited on docked vessels. 19. Conformance with the Parking Management Plan shall be required at all times. 20. A parking agreement, which guarantees the long-term availability of the off-site parking facility for the use located at 2601 West Coast Highway, shall be recorded with the County Recorder’s Office. The agreement shall be recorded at 2615 Avon Street. The agreement shall be in a form approved by the City Attorney and Community Development Director. 21. All parking in conjunction with this use shall be confined to the parking lots over which the applicant, owner, or operator has written rights to park. If, in the opinion of the Community Development Director or City Traffic Engineer, the proposed use creates parking congestion at the site, the operator shall immediately resolve the congestion problem by increasing valet attendants or through other means until the parking congestion is eliminated and parking is properly managed. Adequate valet personnel shall be provided to eliminate queuing onto West Coast Highway. The Community Development Director or City Traffic Engineer has the discretion to require the preparation and implementation of a revised Parking Management Plan. 22. Notwithstanding the permitted docked vessel, no other recreational vehicles, boats, or similar vehicles shall be stored at any time at the subject site. 27 Planning Commission Resolution No. PC2023-032 Page 12 of 18 01-17-23 23. All employees shall obtain annual or master parking permits and shall park at the Mariners’ Mile lot on Avon Street. 24. The site shall not be excessively illuminated based on the luminance recommendations of the Illuminating Engineering Society of North America, or, 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 the dimming of light sources or other remediation upon finding that the site is excessively illuminated. 25. Before the issuance of a building permit, the applicant shall prepare a photometric study in conjunction with a final lighting plan for approval by the Planning Division. The survey shall show that lighting values are “1” or less at all property lines. 26. Before 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. 27. 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 periods unless the ambient noise level is higher: Between the hours of 7:00 AM and 10:00 PM Between the hours of 10:00 PM and 7:00 AM 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 28. 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 leasing agent. 29. Construction activities shall comply with Section 10.28.040 of the Newport Beach Municipal Code, which restricts hours of noise-generating construction activities that produce noise to between the hours of 7:00 a.m. and 6:30 p.m., Monday through Friday, and 8:00 a.m. and 6:00 p.m. on Saturday. Noise-generating construction activities are not allowed on Saturdays, Sundays, or Holidays. 30. No outside paging system shall be utilized in conjunction with this establishment. 31. 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. 28 Planning Commission Resolution No. PC2023-032 Page 13 of 18 01-17-23 The trash enclosure shall have a decorative solid roof for aesthetic and screening purposes. 32. 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. 33. The exterior of the business shall be always maintained free of litter and graffiti. 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. 34. The operator 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). 35. 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 Director of Community Development and may require an amendment to this Use Permit. 36. Storage outside of the building in the front or at the rear of the property shall be prohibited, except for the required trash container enclosure. 37. A Special Events Permit is required for any event or promotional activity outside the normal operating 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. 38. 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. 39. To the fullest extent permitted by law, the applicant shall indemnify, defend and hold harmless the City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any 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 House Restaurant including, but not limited to, this conditional use permit (PA2023-0143). This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorney’s fees, and other expenses incurred in connection with such claim, action, causes of action, suit, or proceeding whether incurred by the applicant, City, and/or the parties initiating or bringing 29 Planning Commission Resolution No. PC2023-032 Page 14 of 18 01-17-23 the such proceeding. The applicant shall indemnify the City for all the City's costs, attorneys' fees, and damages that which City incurs in enforcing the indemnification provisions outlined in this condition. The applicant shall pay to the City upon demand any amount owed to the City under the indemnification requirements prescribed in this condition. Public Works Department 40. The parking lot layout including any future changes shall be subject to the review and approval of the City Traffic Engineer. 41. The valet plan shall be reviewed and approved by the City Traffic Engineer. 42. The applicant shall fully cooperate with the City, Caltrans, and adjacent property owner to the east with regards to any future construction of the fourth leg of the signalized West Coast Highway/Tustin Avenue intersection. The fourth leg of the intersection is a vital component to improve the valet operation by providing a signalized approach to the driveway. Should this signal improvement not be planned and/or constructed, the City Traffic Engineer shall require, and the applicant is responsible for the implementation of other corrective measures deemed necessary in order to ensure adequate and safe vehicular access and valet parking operations. The current configuration only permits right turn in and right turn out from the existing driveway. 43. All delivery trucks shall be required to service the restaurant from on-site and shall be prohibited from loading/unloading on West Coast Highway. Deliveries shall be scheduled outside of the peak operating hours of the restaurant so that access to the side will not be blocked. 44. The property owner shall provide a 10-foot wide irrevocable pedestrian easement along the bay front on the inland side of the existing bulkhead. 45. Delivery vehicles for food delivery service offered as part of the restaurant operation shall not park in the public right-of-way when not in use. The food delivery service loading and unloading shall occur on-site. The food delivery service shall be prohibited from loading and unloading within the West Coast Highway right-of-way. Building Department 46. 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. Approval from the Orange County Health Department is required before the issuance of a building permit. 47. Prior to issuance of a building permit, approval from the County of Orange Health Department is required. 30 Planning Commission Resolution No. PC2023-032 Page 15 of 18 01-17-23 48. A grease interceptor shall be installed, subject to review by the Utilities Division and Building Division. 49. Disabled access shall be provided to dining areas or equivalent seating areas and disabled seating shall be provided at the bar. 50. Access compliance and sufficient number of bathroom fixtures shall be provided for the bathrooms. 51. Replacement of 4TT box and lid on the existing clean-out shall be required. 52. Backflow devices may be required, depending on the final design of the project, subject to review by the Utilities Division. 53. Replacement of the sewer lateral may be required, subject to review by the Utilities Division. Fire Department 54. A kitchen fire suppression system shall be required for the hood, subject to review by the Fire Department. Police Department 55. All owners, managers, and employees selling alcoholic beverages shall undergo and successfully complete a certified training program in responsible methods and skills for serving and selling alcoholic beverages. 56. Approval of this Conditional Use Permit does not permit the establishment to operate as a bar, tavern, cocktail lounge, or nightclub, as defined by the Municipal Code, unless a new or amended Conditional Use Permit is first approved by the Planning Commission. 57. Full menu service shall be available for ordering at all times that the restaurant establishment is open for business. 58. No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the licensee. Alcohol service from the restaurant shall be prohibited on docked vessels. 59. Food from the full-service menu must be made available during any “happy hour” type of reduced-price alcoholic beverage promotion. There shall be no reduced-price alcoholic beverage promotion after 9 p.m. 60. “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 or sale of drinks, is prohibited. 31 Planning Commission Resolution No. PC2023-032 Page 16 of 18 01-17-23 61. The use of private (enclosed) “VIP” rooms or any other temporary or permanent enclosures separate from public areas is prohibited. 62. The operator 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 he sale of drinks. 63. The quarterly gross sales of alcoholic beverages shall not exceed the gross sales of food during the same period. The licensee 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. 64. 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. 65. Strict adherence to the maximum occupancy limits is required. 66. No games or contests requiring or involving the consumption of alcoholic beverages shall be permitted. 67. All proposed signs shall be in conformance with the approved Comprehensive Sign Program for the project site and provisions of Chapter 20.42 of the Newport Beach Municipal Code. 68. There shall be no exterior advertising or signs of any type, including advertising directed to the exterior from within, promoting or indicating the availability of alcoholic beverage. Interior displays of alcoholic beverages or signs, which are clearly visible to the exterior, shall constitute a violation of this condition. 69. The project is subject to all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. 70. 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. 71. This approval was based on the particulars of the individual case and does not in and of itself or in combination with other approvals in the vicinity or Citywide constitute a precedent for future approvals or decisions. 72. This Conditional 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 32 Planning Commission Resolution No. PC2023-032 Page 17 of 18 01-17-23 injurious to property or improvements in the vicinity or if the property is operated or maintained so as to constitute a public nuisance. 73. Any change in operational characteristics, expansion in area, or other modification to the approved plans, shall require an amendment to this Conditional Use Permit or the processing of a new Conditional Use Permit. 74. 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 Department. 75. All lighting shall conform with the standards of Section 20.30.070 (Outdoor Lighting). 76. All noise generated by the proposed use, including any activity on the permitted docked vessel, shall comply with the provisions of Chapter 10.26 and other applicable noise control requirements of the Newport Beach Municipal Code. 77. No outside paging system shall be utilized in conjunction with this establishment. 78. 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. 79. 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. 80. 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. 81. The operator 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 Department. 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). 82. 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. 83. A Special Event 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, or involve the sale of alcoholic beverages, or include any form of on-site media broadcast, or any other activities as specified in the Newport Beach Municipal Code to require such permits. 33 Planning Commission Resolution No. PC2023-032 Page 18 of 18 01-17-23 84. 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. 85. Construction activities shall comply with Section 10.28.040 of the Newport Beach Municipal Code, which restricts hours of noise-generating construction activities that produce noise to between the hours of 7:00 a.m. and 6:30 p.m., Monday through Friday and 8:00 a.m. and 6:00 p.m. on Saturday. Noise-generating construction activities are not allowed on Sundays or Holidays. 34 Attachment No. PC 2 Applicant’s Project Request 35 INTENTIONALLY BLANK PAGE36 www.coxcastle.com Los Angeles | Orange County | San Francisco Cox, Castle & Nicholson LLP 3121 Michelson Drive, Suite 200 Irvine, California 92612 -5678 P: 949.260.4600 F: 949.260.4699 Sean Matsler 949.260.4652 smatsler@coxcastle.com File No. 104584 Project Description Use Permit No. UP2011-001 Amendment (The House) 1. Background Use Permit No. UP2011-001 was approved on June 9, 2011 and authorized the Dry Dock restaurant. It included various conditions relating to the restaurant’s operation. Table 1 of the August 3, 2023, Staff Report prepared in connection with The House Annual Review of Use Permit (2011-005) confirms that The House complies with the operational conditions of Use Permit No. UP2011-001, as follows: 2. Proposed Project: Amendment to Use Permit No. UP2011-001 Mr. Jarrett, owner and operator of The House, owns and stores a personal vessel in the dock at The House called the “Leilani Rose.” The vessel is approximately 30 feet wide by 30 feet deep (i.e., approximately 900 square feet). It inhabits less than 30% of the approximately 115’ deep dock at The House. Mr. Jarrett proposes an Amendment to Use Permit No. UP2011-001 to allow his continued storage and personal (not commercial) use of the Leilani Rose for his personal guests. Food and drink service would not be provided by The House wait staff on the Leilani Rose in a way that might suggest that the Leilani Rose is simply additional floor area for The House. Quite unlike The House, Mr. Jarrett’s personal guests on the Leilani Rose: • Need not be The House members or guests; • Need not be 21+ years of age; • Need not purchase food or drinks from The House (i.e., outside food and drink are allowed on the Leilani Rose, just as with other private vessels in the Harbor); 37 •Need not make a reservation at The House; and •Need not abide by The House club rules and regulations Mr. Jarrett proposes no physical or operational changes to The House. Parking would continue to be provided on- and off-site, as allowed by the original Parking Management Plan. Additionally, no change to the required number of parking spaces is proposed, nor is any increase in restaurant occupancy proposed. The House would continue to operate as a restaurant with the same restrictions on hours, dining, alcohol, and parking as originally established in UP2011-001. As written, Use Permit No. UP2011-001 does not allow any individual to store a personal vessel on site. Mr. Jarrett therefore requests the following amendment to the UP2011-001 conditions of approval (Proposed additions are in green; propose deletions are in red). These conditions are intended to: (a) allow Mr. Jarrett’s continued storage and personal use of the Leilani Rose; and (b) formally establish that the Leilani Rose is not additional patio space for the restaurant. •Condition 7: The outdoor dining area shall be limited to 429 square feet or 25 percent of the interior net public area, whichever is less. Dining and drink service is not permitted on any docked vessels; •Condition 9: There shall be no live entertainment allowed on the premises, including docked vessels, without first obtaining a live entertainment permit from the City; •Condition 10: Live entertainment shall be confined to the interior of the structure and shall be prohibited on docked vessels; •Condition 12: There shall be no dancing allowed on the premises, including docked vessels, or Café Dance permit issued without an amendment to this Conditional Use Permit; and •Condition 35: No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the licensee, and alcohol service is prohibited on docked vessels. It is acknowledged, however, that the licensee does not have control over personal alcohol consumption aboard any docked vessel. •Condition 65: No less than 50% of the total length of tThe boat slips shall be available at all times for exclusive use by the patrons of the establishment. The owner and operator shall be prohibited from renting or leasing the boat slips 38 Attachment No. PC 3 Use Permit No. UP2011-001 39 INTENTIONALLY BLANK PAGE40 RESOLUTION NO. 1844 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH APPROVING CONDITIONAL USE PERMIT NO. UP2011 -001 FOR A FOOD SERVICE RESTAURANT WITH LATE HOURS, LIVE ENTERTAINMENT, ALCOHOL SALES, OUTDOOR DINING, AND DELIVERIES; AND A PARKING MANAGEMENT PLAN TO ADDRESS OFF -SITE PARKING, VALET, AND AN ADJUSTMENT TO THE OFF - STREET PARKING REQUIREMENTS FOR PROPERTY LOCATED AT 2601 WEST COAST HIGHWAY (PA2011 -005) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. An application was filed by G.E.P. Enterprise Group, with respect to property located at 2601 West Coast Highway, and legally described as the northwesterly 50 feet of the southeasterly 1300 feet of Lot H of Tract 919 requesting approval of a Conditional Use Permit. 2. The applicant proposes a food service restaurant with late hours, live entertainment, alcohol sales, outdoor dining, and delivery. The applicant also proposes a parking management plan to address off -site parking, valet, and an adjustment to the off - street parking requirements. 3. The subject property is located within the Mixed Use Water Related (MU -W1) Zoning District and the General Plan Land Use Element category is Mixed Use Water Related MU -W1). 4. The subject property is located within the coastal zone. The Coastal Land Use Plan category is Mixed Use Water Related (MU -W). 5. A public hearing was held on June 9, 2011, in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California. A notice of time, place and purpose of the meeting was given in accordance with the Newport Beach Municipal Code. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this meeting. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1. This project has been determined to be categorically exempt under the requirements of the California Environmental Quality Act under Class 1 (Existing Facilities). 2. Class 1 exempts minor alterations to existing facilities. The proposed project consists of interior alterations and minor changes in operational characteristics from previous restaurant operations at this site. 41 Planning Commission Resolution No. 1844 Page 2 of 13 SECTION 3. REQUIRED FINDINGS. In accordance with Sections 20.52.020, 20.48.030, and 20.40.100 of the Newport Beach Municipal Code, the following findings and facts in support of such findings are set forth: Finding: A. The us e is consistent with the General Plan and any applicable specific plan. Facts in Support of Finding: A -1. The subject property is designated as Mixed -Use Water Related (MU -W1) by the Land Use Element of the General Plan, which is applied to waterfront locations along Mariners' Mile Corridor in which marine - related, visitor - serving, commercial, and residential uses are allowed. The proposed project is consistent with this designation as eating and drinking establishments are visitor - serving and commercial uses. The proposed project will also have space for approximately ten (10) boats, available for patrons who choose to take a boat to the restaurant. Furthermore, Land Use Policy LU 6.19.2 (Bay Fronting Properties) encourages marine - related and visitor - serving retail, restaurant, hotel, institutional, and recreational uses, with some allowance for residential uses. A -2. The subject property is not located in a specific plan area. Finding: B. 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: B -1. The subject property is located within the Mixed Use Water Related (MU -W1) Zoning District, which applies to waterfront properties along the Mariners' Mile Corridor in which nonresidential uses and residential dwelling units may be intermixed. Eating and drinking establishments designated as "Food Service, Late Hours" are allowed with approval of a conditional use permit. Facilities open to the public past 11:00 p.m. any day of the week are considered establishments with late hours. The proposed project is consistent with this designation. B -2. As conditioned, the proposed project complies with Section 20.48.090 (Eating and Drinking Establishments) in regards to the operating standards. B -3. Section 20.40.060 (Parking Requirements for Food Service Uses) establishes criteria to determine the parking requirement for food uses from one (1) parking space for every 30 -50 square feet of net public area. Based on the physical design characteristics, operational characteristics, and location of the establishment, a Tmpit: 04/14/ 10 42 Planning Commission Resolution No. 1844 Paqe 3 of 13 parking requirement of one (1) space for every 40 square feet of net public area is sufficient. The applicant is making the dock slips available for patron use, increasing the accessibility to the use. The outdoor dining is limited to less than 25 percent of the interior net public area. The amount of floor area devoted to live entertainment is relatively small, and no dancing is proposed. The applicant proposes to provide high end barbeque that will likely lead to a low turnover rate. There are other nearby uses that will lead to some walk -in trade. Off -site parking and valet are addressed in the Parking Management Plan. B -4. Pursuant to Section 20.40.110 (Adjustments to the Off - Street Parking Requirements), the Parking Management Plan will be implemented to mitigate impacts associated with a reduction in the number of required parking spaces. The Parking Management Plan and valet plan will result in a highly efficient use of the parking spaces available to the restaurant patrons. The parking survey conducted by staff demonstrated that the off- site lot on average contained 40 vehicles out of 122 available spaces (33 percent occupied). The parking survey conducted by staff also demonstrated that the 91 nearby public parking spaces were on average 53 percent occupied. The 2009 parking study by Walker Parking Consultants concluded that overall the Mariners' Mile area does not have a parking shortage. Therefore, the off -site parking agreement will not impact the use of the parking lot by the employees and patrons of 2700 West Coast Highway. Finding: C. The design, location, size, and operating characteristics of the use are compatible with the allowed uses in the vicinity. Facts in Support of Finding: C -1. The proposed project is located within a nonresidential zoning district. The parking lot and primary openings to the restaurant are oriented towards West Coast Highway. The outdoor dining area faces the parking lot. The operational characteristics are that of a restaurant, and the establishment will not be used exclusively as a bar or nightclub, as defined by the Zoning Code. Finding: D. 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: D -1. The lot is approximately 50 feet wide by 240 feet deep (11,949 square feet in area including partially submerged land), and is developed with a 3,987- square -foot single - story commercial building, a surface parking lot with twelve (12) parking spaces, and a boat slip. The existing building and parking lot have functioned satisfactorily in the Tmplt: 04/14/10 43 Planning Commission Resolution No. 1844 Paqe 4 of 13 past with the current configuration. The proposed project includes interior alterations and an outdoor patio, which will not negatively affect emergency access. The lot is an interior lot and has multiple doors and windows for ingress and egress. The building is located six feet from the easterly property line, so there is sufficient room for emergency access. Finding: E. Operatio n 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: E -1. The use is compatible with the neighborhood because the Mariners' Mile area is an established commercial area with several similar uses nearby. The existing site is located on a major road and has been utilized for restaurant uses since 1968. E -2. The project has been reviewed and conditioned to ensure that potential conflicts with surrounding land uses are minimized to the extent possible to maintain a healthy environment for residents and businesses. E -3. The closest residential district is 500 feet away and the closest residential district across Lido Channel is 800 feet away from the subject property. E -4. Adequate parking is maintained and will be provided by valet service in conformance with the Parking Management Plan. E -5. Potential noise impacts will be diminished because live entertainment is not proposed during late hours or on weekdays. E -6. The Police Department indicates it has no objections to the applicant's request. To ensure the proposed use does not create a detrimental impact during late hours, the applicant (and any future operators of the existing eating and drinking establishment) will be required to obtain an Operator License issued by the Chief of Police pursuant to Chapter 5.25 of the Municipal Code. E -7. The proposed outdoor dining will be located outside of the front entrance facing the parking lot and will be open no later than midnight, daily. E -8. The property has been vacant for several years and re- establishing a restaurant use will help to revitalize the Mariners' Mile area. Tmpit: 04/14/10 44 Planning Commission Resolution No. 1844 Paae 5 of 13 Finding: F. The proposed use is consistent with the purpose and intent of Section 20.48.030 (Alcohol Sales). Facts in Support of Finding: F -1. The project has been reviewed and conditioned to ensure that the purpose and intent of Section 20.48.030 (Alcohol Sales) of the Zoning Code is maintained and that a healthy environment for residents and businesses is preserved. The service of alcoholic beverages is intended for the convenience of customers of the restaurant. 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. F -2. Pursuant to Chapter 5.25 of the Municipal Code, the project has been conditioned to require that the applicant, as well as any future operators of the eating and drinking establishment, obtain an Operator License to ensure the establishment is operated in a safe manner. F -3. The subject property is located within a mixed use district developed primarily with commercial uses. Across the Lido Channel, the closest residential district is approximately 800 feet away. To the north, the closest residential district is almost 500 feet away. The nearest park is located on Cliff Drive above West Coast Highway and is over 500 feet from the subject property. There are no day care centers, recreation facilities, places of religious assembly, or schools in close proximity to the subject property. Finding: G. The parking facility is located within a convenient distance to the use it is intended to serve. Facts in Support of Finding: G -1. The off -site parking lot is less than 500 feet away from the subject property. G -2. Valet service will be available on -site allowing customers to drop off their cars at the restaurant site. Finding: H. On- street parking is not being counted towards meeting parking requirements. Tmplt: 04/14/10 45 Planning Commission Resolution No. 1844 Paae 6 of 13 Facts in Support of Finding: H -1. The required amount of parking is 43 spaces. The project provides 12 on -site spaces and 20 off -site spaces; therefore, a parking requirement adjustment of eleven (11) parking spaces is required. H -2. Ninety -one (91) public parking spaces (on street, municipal lot) are located within a short walking distance to the subject property; however, those spaces are not being counted towards meeting the parking requirement. Finding: 1. Use of the parking facility will not create undue traffic hazards or impacts in the surrounding area. Facts in Support of Finding: 1 -1. Employees and patrons parking in the off -site parking lot can walk down Tustin Avenue and cross at the cross walk, so there will not be any undue traffic hazards from pedestrians. 1 -2. Valet service will be available so customers can drop off their cars at the restaurant site. The valet plan will be reviewed and approved by the City Traffic Engineer. 1 -3. The Parking Management Plan will address the use of the off -site parking lot and valet operations. Finding: J. The parking facility will be permanently available, marked, and maintained for the use it is intended to serve. Facts in Support of Finding: J -1. The applicant will secure a lease for 20 parking spaces within the lot located at 2615 Avon Street. If those parking spaces become unavailable in the future, the applicant will notify the Community Development Director who will establish a reasonable time for substitute parking to be provided or the net public area of the restaurant to be decreased. J -2. The off -site parking spaces will be clearly marked for use by employees and customers of 2601 West Coast Highway. Tmplt: 04/14/10 46 Planning Commission Resolution No. 1844 Paqe 7 of 13 SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Planning Commission of the City of Newport Beach hereby approves Conditional Use Permit No. UP2011 -001, subject to the conditions set forth in Exhibit A, which is attached hereto and incorporated by reference. 2. This action shall become final and effective fourteen days after the adoption of this Resolution 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 Newport Beach Municipal Code. PASSED, APPROVED AND ADOPTED THIS 9" DAY OF JUNE, 2011. AYES: Ameri, Eaton, Toerge, and McDaniel NOES: Unsworth ABSTAIN: None. ABSENT: Hawkins and Hillgren I. _, G i: I. Daniel, Chairman 10 TmpIC 04/14/10 47 Planning Commission Resolution No. 1844 Page 8 of 13 EXHIBIT "A" CONDITIONS OF APPROVAL 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. The Conditional Use Permit shall be reviewed by the Planning Commission at a noticed public hearing within one (1) year of the restaurant being in operation and annually thereafter. The applicant, or operator, shall provide the off -site parking agreement for the next year(s) for the Planning Commission's review at this hearing. 3. The hours of operation shall be limited to between 11:00 a.m. and 11:00 p.m., Monday through Friday and between 9:00 a.m. and 11:00 p.m. Saturday and Sunday, unless the operator of the establishment secures and maintains an Operator License pursuant to Chapter 5.25 of the Municipal Code. In no case shall the establishment be permitted to operate beyond the hours of 2:00 a.m. 4. The outdoor dining patio shall be closed no later than 11:00 p.m., daily, unless the operator of the establishment secures and maintains an Operator License pursuant to Chapter 5.25 of the Municipal Code. In no case shall the outdoor dining patio be permitted to operate beyond the hours of 1:30 a.m. 5. The Operator License required to be obtained pursuant to Condition No. 3 and Chapter 5.25 of the Municipal Code may be subject to additional and /or more restrictive conditions to regulate and control potential late -hour nuisances associated with the operation of the establishment. 6. All windows shall remain closed at all times after 11:00 p.m., daily. 7. The outdoor dining area shall be limited to 429 square feet or 25 percent of the interior net public area, whichever is less. 8. Live entertainment is limited to Saturdays and Sundays from 2:00 p.m. to 7:00 p.m. 9. There shall be no live entertainment allowed on the premises without first obtaining a live entertainment permit from the City. 10. Noise from the live entertainment shall be confined to the interior of the structure. 11. The applicant shall provide licensed security personnel (a minimum of one (1) per 50 patrons) while offering live entertainment. A comprehensive security plan for the permitted use shall be submitted for review and approval by the Police Department. Should security personnel not be deemed necessary by the Chief of Police, the requirement for security personnel may be reduced or waived. Tmplt: 04/14/10 48 Planning Commission Resolution No. 1844 Paae 9 of 13 12. There shall be no dancing allowed on the premises or Cafe Dance permit issued without an amendment to this Conditional Use Permit, 13. Conformance with the Parking Management Plan shall be required at all times. 14. A parking agreement, which guarantees the long term availability of the off -site parking facility for the use located at 2601 West Coast Highway, shall be recorded with the County Recorder's Office. The agreement shall be recorded at 2615 Avon Street, which provides parking for 2700 West Coast Highway. The agreement shall be in a form approved by the City Attorney and Community Development Director. 15. All parking in conjunction with this use shall be confined to the parking lots over which the applicant, owner, or operator has written rights to park. If, in the opinion of the Community Development Director or City Traffic Engineer, the proposed use creates parking congestion at the site, the applicant shall immediately resolve the congestion problem by increasing valet attendants or through other means until the parking congestion is eliminated and parking is properly managed. Adequate valet personnel shall be provided to eliminate queuing onto West Coast Highway. The Community Development Director or City Traffic Engineer has the discretion to require the preparation and implementation of a revised Parking Management Plan. 16. The parking lot layout including any future changes shall be subject to the review and approval of the City Traffic Engineer. 17. The valet plan shall be reviewed and approved by the City Traffic Engineer. 18. The applicant shall fully cooperate with the City, Caltrans, and adjacent property owner to the east with regards to any future construction of the fourth leg of the signalized West Coast Highway/Tustin Avenue intersection. The fourth leg of the intersection is a vital component to improve the valet operation by providing a signalized approach to the driveway. Should this signal improvement not be planned and /or constructed, the City Traffic Engineer shall require, and the applicant is responsible for the implementation of other corrective measures deemed necessary in order to ensure adequate and safe vehicular access and valet parking operations. The current configuration only permits right turn in and right turn out from the existing driveway. 19. All delivery trucks shall be required to service the restaurant from on -site and shall be prohibited from loading /unloading on West Coast Highway. Deliveries shall be scheduled outside of the peak operating hours of the restaurant so that access to the side will not be blocked. 20. Deliveries and refuse collection for the facility shall be prohibited between the hours of 10:00 p.m. and 8:00 a.m., daily, unless otherwise approved by the Community Development Director. 21. The property owner shall provide a 10 -foot wide irrevocable pedestrian easement along the bay front on the inland side of the existing bulkhead. Tmplt: 04/14/10 49 Planning Commission Resolution No. 1844 Page 10 of 13 22. Delivery vehicles for food delivery service offered as part of the restaurant operation shall not park in the public right -of -way when not in use. The food delivery service loading and unloading shall occur on -site. The food delivery service shall be prohibited from loading and unloading within the West Coast Highway right -of -way. 23. No recreational vehicles, boats, or similar vehicles shall be stored at any time at the subject site. 24. Prior to issuance of a building permit, approval from the County of Orange Health Department is required. 25. A grease interceptor shall be installed, subject to review by the Utilities Division and Building Division. 26. Disabled access shall be provided to dining areas or equivalent seating areas and disabled seating shall be provided at the bar. 27. Access compliance and sufficient number of bathroom fixtures shall be provided for the bathrooms. 28. Replacement of 4TT box and lid on the existing clean -out shall be required. 29. Backflow devices may be required, depending on the final design of the project, subject to review by the Utilities Division. 30. Replacement of the sewer lateral may be required, subject to review by the Utilities Division. 31. A kitchen fire suppression system may be required for the hood, subject to review by the Fire Department. 32. All owners, managers, and employees selling alcoholic beverages shall undergo and successfully complete a certified training program in responsible methods and skills for serving and selling alcoholic beverages. 33. Approval of this Conditional Use Permit does not permit Dry Dock to operate as a bar, tavern, cocktail lounge, or nightclub, as defined by the Municipal Code, unless a new or amended Conditional Use Permit is first approved by the Planning Commission. 34. Full menu service shall be available for ordering at all times that the restaurant establishment is open for business. 35. No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the licensee. Tmplt: 04/14/10 50 Planning Commission Resolution No. 1844 Page 11 of 13 36. Food from the full service menu must be made available during any "happy hour" type of reduced price alcoholic beverage promotion. There shall be no reduced price alcoholic beverage promotion after 9 p.m. 37. "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 or sale of drinks, is prohibited. 38. The use of private (enclosed) "VIP" rooms or any other temporary or permanent enclosures separate from public areas is prohibited. 39. The operator 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 he sale of drinks. 40. The quarterly gross sales of alcoholic beverages shall not exceed the gross sales of food during the same period. The licensee 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. 41. 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. 42. Strict adherence to the maximum occupancy limits is required. 43. No games or contests requiring or involving the consumption of alcoholic beverages shall be permitted. 44. All proposed signs shall be in conformance with the approved Comprehensive Sign Program for the project site and provisions of Chapter 20.42 of the Newport Beach Municipal Code. 45. There shall be no exterior advertising or signs of any type, including advertising directed to the exterior from within, promoting or indicating the availability of alcoholic beverage. Interior displays of alcoholic beverages or signs, which are clearly visible to the exterior, shall constitute a violation of this condition. 46. The project is subject to all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. 47. 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. Tmplt: 04114/10 51 Planning Commission Resolution No. 1844 Page 12 of 13 48. This approval was based on the particulars of the individual case and does not in and of itself or in combination with other approvals in the vicinity or Citywide constitute a precedent for future approvals or decisions. 49. This Conditional 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. 50. Any change in operational characteristics, expansion in area, or other modification to the approved plans, shall require an amendment to this Conditional Use Permit or the processing of a new Conditional Use Permit. 51. 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 Department. 52. All lighting shall conform with the standards of Section 20.30.070 (Outdoor Lighting). 53. 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. 54. No outside paging system shall be utilized in conjunction with this establishment. 55. 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. 56. 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. 57. 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. 58. 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 Department. 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). Tmpit: 04/14/10 52 Planning Commission Resolution No. 1844 Paqe 13 of 13 59. 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. 60. A Special Event 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, or involve the sale of alcoholic beverages, or include any form of on -site media broadcast, or any other activities as specified in the Newport Beach Municipal Code to require such permits. 61. 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. 62. Construction activities shall comply with Section 10.28.040 of the Newport Beach Municipal Code, which restricts hours of noise - generating construction activities that produce noise to between the hours of 7:00 a.m. and 6:30 p.m., Monday through Friday and 8:00 a.m. and 6:00 p.m. on Saturday. Noise - generating construction activities are not allowed on Sundays or Holidays. 63. Conditional Use Permit No. 2011 -001 shall expire unless exercised within 24 months from the date of approval as specified in Section 20.54.060 of the Newport Beach Municipal Code, unless an extension is otherwise granted. 64. 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 Dry Dock Restaurant including, but not limited to, the Conditional Use Permit No. UP2011 -001. 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. 65. The boat slips shall be available at all times for exclusive use by the patrons of the establishment. The owner and operator shall be prohibited from renting or leasing the boat slips. 66. All employees shall obtain annual or master parking permits and shall park at the Mariners' Mile lot on Avon Street. Tmplt: 04114/10 53 INTENTIONALLY BLANK PAGE54 Attachment No. PC 4 Annual Review Staff Report from August 3, 2023 Planning Commission Meeting 55 INTENTIONALLY BLANK PAGE56 CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT August 3, 2023 Agenda Item No. 3 SUBJECT: The House Annual Review of Use Permit (PA2011-005) ▪Review of Use Permit No. UP2011-001 SITE LOCATION: 2601 West Coast Highway OPERATOR: The House OWNER: Pizza Nova PCH LLC PLANNER: David Lee, Senior Planner 949-644-3225, dlee@newportbeachca.gov PROJECT SUMMARY An annual review of Conditional Use Permit No. UP2011-001, originally approved by the Planning Commission on June 9, 2011. UP2011-001 authorized a restaurant with late hours, live entertainment, alcohol sales, outdoor dining, a parking management plan, and adjustment to off-street parking requirements. RECOMMENDATION 1)Conduct a public hearing; 2)Find this review exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 under Class 1 (Existing Facilities) and Section 15321 under Class 21 (Enforcement Actions by Regulatory Agencies) of the CEQA Guidelines, because it has no potential to have a significant effect on the environment; 3)Review the current operation, The House, for its compliance with UP2011-001; 4)Find the operator’s use of a floating outdoor dining vessel to be in violation of UP2011-001 5)Direct the operator immediately cease and desist use of the floating outdoor patio vessel, and remove it within 30 days or file the necessary application to amend the use permit within 30 days requesting retention of the vessel; and 6)Direct staff to remove Condition No. 2 from Planning Commission Resolution No. 1844 related to annual reviews of the Use Permit No 2011-001 and perform reviews on an as-needed basis. 57 The House Annual Review of Use Permit (2011-005) Planning Commission, August 3, 2023 Page 2 VICINITY MAP GENERAL PLAN ZONING LOCATION GENERAL PLAN ZONING CURRENT USE ON-SITE MU-W1 (Mixed-Use Water 1) MU-W1 (Mixed-Use Water) The House Restaurant NORTH MU-H1 (Mixed-Use Horizontal 1) MU-MM (Mixed-Use Mariners’ Mile) Multi-tenant Commercial SOUTH N/A N/A Newport Bay EAST MU-W1 MU-W1 Private Marina WEST MU-W1 MU-W1 GuacAmigos Restaurant 58 The House Annual Review of Use Permit (2011-005) Planning Commission, August 3, 2023 Page 3 INTRODUCTION Project Setting and Background The subject property is located on the south side of West Coast Highway within Mariners’ Mile. The property is approximately 12,000 square feet in area (50 feet wide by 240 feet deep). The lot is developed with a 3,987-square-foot single-story restaurant building, a surface parking lot with 12 parking spaces, and a boat slip that can accommodate several boats depending on size. A restaurant use was originally established in 1968, prior to the requirement of a use permit for eating and drinking establishments. UP2011-001, which is the subject of the annual review, was approved on June 9, 2011, and authorized the Dry Dock restaurant, which included late hours until 2 a.m., live entertainment on Saturdays and Sundays from 2 p.m. to 7 p.m., and a Type 47 (On-Sale General – Eating Place) Alcoholic Beverage Control (ABC) License. The approval also included a parking management plan to address off-site parking, valet, and an adjustment to off-street parking requirements. Subsequent to the approval of UP2011-001, multiple operators have operated an eating and drinking establishment at the property pursuant to the approved use permit, including DivBar (2011), Pizza Nova (2014), and Mama’s (2019). The current operator, The House, has been in operation since 2021 and is subject to the approved conditions of approval of UP2011-001 (Attachment No. PC 1). A condition of approval was included which required the UP2011-001 to be reviewed by the Planning Commission at a noticed public hearing within one year of the restaurant being in operation and annually thereafter. Since the original approval, staff has not brought the permit back for annual review to the Planning Commission since there has no notable issues or complaints regarding previous operators. However, due to the recent change in operators and alleged violations of specific conditions of approval, staff is requesting that the Planning Commission review the use permit. The House – Summary of Operations The House operates pursuant UP2011-001 and is subject to all conditions of approval. Table 1, below, highlights the major allowed operational characteristics by UP2011-001 and demonstrates how The House complies. 59 The House Annual Review of Use Permit (2011-005) Planning Commission, August 3, 2023 Page 4 Table 1: Operational Characteristics Approved by UP2011-001 Current Operation Hours of Operation* 11 a.m. to 11 p.m., Mon. – Fri. 9 a.m. to 11 p.m., Sat. – Sun. Closed Mon. & Tues. Noon to 11 p.m., Wed. – Fri. 11 a.m. to 11 p.m., Sat. – Sun. Net Public Area 1,719 sq. ft. (max) 1,364 sq. ft. Outdoor Dining Area 429 sq. ft. (max) 380 sq. ft.* Parking 12 on-site 20 off-site 12 on-site 32 off-site Alcohol License Type 47 (On-Sale, General) Type 47 * Does not include floating outdoor patio vessel, which is approximately 900 sq. ft. The property includes 12 on-site parking spaces, and 32 off-site spaces, 28 which are located at 2615 West Coast Highway and four of which are located next door at 2457 West Coast Highway. The current existing outdoor dining area cited in Table 1 only considers the front entry patio, and does not include an unauthorized floating outdoor patio vessel located in the boat slip, which is discussed in detail below. Outside of the violation for the vessel, the operating characteristics of The House is in compliance with UP2011-001. Floating Outdoor Patio Vessel In December of 2022, it was brought to Planning staff’s attention that The House had been operating with an additional dining patio on a floating vessel docked in the boat slip adjacent to the restaurant (see Figure 1, below). The vessel is approximately 30 feet wide by 30 feet deep (900 square feet). Based on the advertisements found on The House’s website, among other publications, the vessel was being treated as a part of the restaurant’s layout and included food and drink service with live entertainment. Staff sent correspondence to The House, dated December 21, 2022, regarding the violation (Attachment No. PC 2). There are two active Code Enforcement cases related to the floating outdoor dining vessel. In September of 2022, Code Enforcement received a complaint regarding ADA accessibility for the dock ramp to the vessel. The case is currently open and would be resolved if the vessel is removed. If the vessel is eventually permitted to remain, ADA accessibility would need to be provided. Additionally, in November of 2022, the Harbor Department enforcement staff received a noise complaint from the vessel. Finally, the Newport Beach Police Department responded to one call on July 19, 2023, for a disturbance alleged to be an intoxicated individual. On December 23, 2022, the Department of Alcoholic Beverage Control (ABC) sent the operator a Notice of Violation regarding the consumption of alcohol on vessel, which is considered an unlicensed patio (Attachment No. PC 5). 60 The House Annual Review of Use Permit (2011-005) Planning Commission, August 3, 2023 Page 5 Figure 1: Floating Outdoor Patio Vessel (Image Source: The House website) Since City Staff provided the initial notice of this proceeding, the Operator has indicated they no longer intend to utilize the vessel as an outdoor dining patio as an extension of the restaurant. Rather, the vessel owner, who is the operator of the restaurant, intends to invite guests to utilize the vessel as if it was a more traditional vessel. However, as further discussed below, the presence of the vessel within the boat dock violates multiple conditions of approval of UP2011-001, with Condition No. 65 as the most notable. The use of the floating outdoor patio vessel violates the following conditions of the UP2011-001: Condition 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; Condition 7: The outdoor dining area shall be limited to 429 square feet or 25 percent of the interior net public area, whichever is less; Condition 9: There shall be no live entertainment allowed on the premises without first obtaining a live entertainment permit from the City; Condition 10: Live entertainment shall be confined to the interior of the structure; Condition 12: There shall be no dancing allowed on the premises or Café Dance permit issued without an amendment to this Conditional Use Permit; and 61 The House Annual Review of Use Permit (2011-005) Planning Commission, August 3, 2023 Page 6 Condition 35: No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the licensee. Condition 65: The boat slips shall be available at all times for exclusive use by the patrons of the establishment. The owner and operator shall be prohibited from renting or leasing the boat slips. The entire list of conditions of approval has been included in Attachment No. PC 1. The floating outdoor dining vessel is not in substantial conformance with the site plan which was originally approved by the Planning Commission, or the permitted tenant improvement plans for The House issued in August of 2021, both of which did not include a patio on the dock. The outdoor dining vessel, which serves as additional patio space for the restaurant, creates an overall outdoor dining area which exceeds the maximum of 429 square feet of allowed outdoor dining. Live entertainment, dancing, and alcohol service outside of the property are all also prohibited. Finally, the most notable condition that is in violation is Condition No. 65, which states that the boat slips are to be available at all times for exclusive use by the patrons of the establishment. This was a condition of approval which was added by the Planning Commission during the original hearing to encourage alternative transportation to the site by boat thereby reducing automobile demand. Since the site does not include enough on- site parking spaces to meet the demand, the establishment is conditioned to lease spaces from other nearby properties as well. A part of the Planning Commission’s intent to aid the parking supply was to account for the accessibility of the entire dock for boat parking. Fact A-1 of the approved resolution states that the dock would have “space for approximately ten (10) boats, available for patrons who choose to take a boat to the restaurant.” Additionally, Fact B-3 states that “the applicant is making the dock slips available for patron use, increase the accessibility to the use.” Staff believes that the use of the dock slips for a floating outdoor dining vessel is not consistent with the content of the approved use permit. The applicant has the following two options to consider: 1. Remove the floating outdoor dining vessel and resume operations in compliance with UP2011-001. Failure to remove the vessel in a reasonable time will result in continued Code Enforcement action and potential modification or revocation of use permit at a future noticed public hearing. 2. Submit an application to the Planning Division to amend the existing conditional use permit to allow for the vessel including the increased parking demand for it, as well as a coastal development permit which must be approved by the California Coastal Commission, since the floating patio vessel is located within their permitting jurisdiction. Staff would process this application and return to the Planning Commission at a future noticed public hearing. 62 The House Annual Review of Use Permit (2011-005) Planning Commission, August 3, 2023 Page 7 Removal of Condition No. 2 As a part of this review, staff is requesting that the Planning Commission direct staff to remove Condition of Approval No. 2 from the approved resolution, which states: The Conditional Use Permit shall be reviewed by the Planning Commission at a noticed public hearing within one (1) year of the restaurant being in operation and annually thereafter. The applicant, or operator, shall provide the off-site parking agreement for the next year(s) for the Planning Commission’s review at this hearing. Staff believes that an annual review of the establishment moving forward is unnecessary when the restaurant is operating in compliance with the conditions of approval. Furthermore, the City has adequate enforcement resources between Code Enforcement and Harbor Enforcement to properly monitor the operation and the City retains the ability to refer the use permit to the Planning Commission for review on an as-needed basis pursuant to Newport Beach Municipal Code Section 20.68.050 (Legal Remedies). Through that process, the City could modify or revoke the use permit if warranted. Environmental Review This project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 under Class 1 (Existing Facilities) and Section 15321 under Class 21 (Enforcement Actions by Regulatory Agencies) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3 because it has no potential to have a significant effect on the environment. Public Notice Notice of this hearing was published in the Daily Pilot, mailed to all owners and occupants of property within 300 feet of the boundaries of the site (excluding intervening rights-of- way and waterways) including the applicant, and posted on the subject property at least 10 days before the scheduled meeting, consistent with the provisions of the Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the City website. Prepared by: Submitted by: ______________________ David Lee, Senior Planner 63 INTENTIONALLY BLANK PAGE64 Attachment No. PC 5 Parking Management Plan 65 INTENTIONALLY BLANK PAGE66 Parking Management Plan (PA2011 -005) 2601 West Coast Highway Dry Dock Restaurant June 9, 2011 The following Parking Management Plan is provided pursuant to Section 20 :40.110 Adjustments to Off - Street Parking Requirements) of the Zoning Code. The Parking Management Plan will employ the following management mechanisms to mitigate impacts associated with reducing the off - street parking requirement by eleven (11) parking spaces as required by Chapter 20.40 of the Zoning Code: Off -Site Parking Twenty (20) off -site parking spaces shall be available at 2615 Avon Street for use by the applicant's employees and patrons. The off -site parking spaces shall be clearly marked for use by employees and patrons of 2601 West Coast Highway. 6 Employees who drive to work shall park at the off -site parking lot at 2615 Avon Street. The applicant shall immediately notify the Community Development Director of any change of ownership or use of the property at 2615 Avon Street, or of any change in the agreement between the parties. Upon notification that the off -site parking spaces are no longer available, the Community Development Director shall establish a reasonable time in which one of the following shall occur: Substitute parking is provided that is acceptable to the Community Development Director: or The size or capacity of the use subject to this Conditional Use Permit is reduced in proportion to the parking spaces lost. Valet Operations Valet drop off and pick up shall occur on -site. Valet pick up and drop off is prohibited in the public right -of -way. Valet attendants shall use the crosswalk when crossing West Coast Highway and shall obey all traffic laws while transporting vehicles to and from the off -site parking area. The approved valet/parking plan shall be implemented by the applicant or future operator of the restaurant at all times. Adequate valet personnel shall be provided to eliminate queuing onto West Coast Highway. If the valet operations are insufficient to meet the needs of the proposed use, then the valet operations and Parking Management Plan will need to be modified and reviewed by the City Traffic Engineer and Community Development Director. 67 INTENTIONALLY BLANK PAGE68 Attachment No. PC 6 Approved Tenant Improvement Plans for The House from 2021 69 INTENTIONALLY BLANK PAGE70 71 72 73 74 75 76 77 78 Attachment No. PC 7 Approved Plans from UP2011-001 79 INTENTIONALLY BLANK PAGE80 MZ)005AHG 3H.Lrir -111J. ONIMHOMit IMM.i Rll,it3 M 81 Moir s I eroTM wYt (fl 36ryYC2 O 1719 NET PUBLIC AREA SCALE: RECEi'ED TlY PLANry'iN0, DEPARTMEW APR 2 s 2011 I SEATING EMPOYEE COUNT ENTRY PATIO = 22 SEATS MAXIMUM Of 9 C[T}' OP NEWPORT RFACA 8R = 10 90 SEATS SEATS R s 0 a Z5 ia3xuxG o LL a HATCH ES(GN GR0UP a\cauzcEloFS:co cnu W U W r', U 3" 0 c yII U 0 UV Ln in m W 0 x wa N W Z 82 Attachment No. PC 8 Correspondence from December 21, 2022 83 INTENTIONALLY BLANK PAGE84 Community Development Department CITY OF NEWPORT BEACH 100 Civic Center Drive Newport Beach, California 92660 949 644-3200 newportbeachca.gov/communitydevelopment December 21, 2022 The House Restaurant Attn: Keith Jarrett 2601 West Coast Highway Newport Beach CA 92663 RE: The House Outdoor Dining Vessel Mr. Jarrett: It has been brought to the City’s attention that The House Restaurant has been operating with an additional dining patio on a floating vessel docked on the boat slip adjacent to the restaurant. Based on the advertisements from the restaurant’s website, the vessel is being treated as part of the restaurant’s layout and includes food and drink service with live entertainment (DJ) (Attachment 1). Per our email correspondence from December 6, 2022 (Attachment 2), you have agreed to no longer serve food and beverages on the vessel. Additionally, The House is required to remove all tables, chairs, and heat lamps from the vessel unless it is being used for a private cruise. Since The House requires patrons to be paying members, the use of the vessel for cruises with patrons is prohibited unless a Marine Activity Permit is granted by the City’s Harbor Department. After the tables, chairs, and heat lamps are removed from the vessel, please contact Matt Cosylion, Code Enforcement Supervisor of the Harbor Department, at 949-270-8164, mcosylion@newportbeachca.gov to resolve the ongoing enforcement case. Finally, based on our email correspondence from August 10, 2021 (Attachment 3), The House agreed to comply with Planning Commission Resolution No. 1844, which authorized the restaurant use at 2601 West Coast Highway through a conditional use permit (CUP). The resolution, along with all conditions of approval, has been attached. While all conditions of approval are applicable to the operation of The House, the following list highlights some notable conditions of approval: Condition 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; Condition 4: The outdoor dining patio shall be closed no later than 11:00 p.m., daily, unless the operator of the establishment secures and maintains an Operator License pursuant to Chapter 5.25 of the Municipal Code. In no case shall the outdoor dining patio be permitted to operate beyond the hours of 1:30 a.m.; Condition 7: The outdoor dining area shall be limited to 429 square feet or 25 percent of the interior net public area, whichever is less; 85 Condition 9: There shall be no live entertainment allowed on the premises without first obtaining a live entertainment permit from the City; Condition 10: Live entertainment shall be confined to the interior of the structure; Condition 12: There shall be no dancing allowed on the premises or Café Dance permit issued without an amendment to this Conditional Use Permit; and Condition 35: No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the licensee. The outdoor dining on the vessel does not comply with the listed conditions of approval above. The approved site plan and floor plan (Attachment 4) shows that the patio approved by the Planning Commission is in the front of the restaurant abutting the parking lot. As The House is operating under this approved CUP, it must comply with the approved plans. The boat slip is clearly shown on the plans without outdoor dining. In addition to the location of the outdoor dining area, there are size and operational limitations that must be complied with. Finally, the California Department of Alcoholic Beverage Control (ABC) has notified the City that the vessel is not a part of the licensed premises. If you have any questions, please feel free to contact me. Thank you, _________________________ David Lee, Associate Planner 949-644-3225 dlee@newportbeachca.gov Attachments: 1. The House Advertisements 2. Email Correspondence from December 6, 2022 3. Email Correspondence from August 10, 2021 4. Approved Plans from Use Permit 86 Attachment No. 1 The House Advertisements 87 INTENTIONALLY BLANK PAGE88 89 90 91 INTENTIONALLY BLANK PAGE92 Attachment No. 2 Email Correspondence from December 6, 2022 93 INTENTIONALLY BLANK PAGE94 From: Keith Jarrett <membership@thehousenewportbeach.com> Sent: December 06, 2022 4:02 PM To: Lee, David Subject: thehouse Newport Beach Follow Up Flag: Follow up Flag Status: Completed [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Hi David, Hope you are having a good week! In our discussion, you asked if I could put it in writing that thehouse Newport Beach will not serve food and beverage on the Leilani Rose. Here it is in writing – thehouse Newport Beach will not serve food and beverage on the Leilani Rose. Hopefully this solves the issue. Please call me if you have any other ideas. Thanks! Keith Keith Jarrett Founding Member and Owner (949) 689-5186 thehousenewportbeach.com 95 INTENTIONALLY BLANK PAGE96 Attachment No. 3 Email Correspondence from August 10, 2021 97 INTENTIONALLY BLANK PAGE98 From: membership@thehousenewportbeach.com Sent: Tuesday, August 10, 2021 5:17 PM To: Lee, David Cc: Sara Guggenheim Jarrett Subject: thehouse Newport Beach - 2601 W. Coast Hwy [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Hi David, Thanks for the information you provided today… you’ve been a great help! Per our conversation, we would like to withdrawal our current operational license application and kindly request a refund for our application fee of $1,482.00. We will comply with the conditions of resolution 1844 and operate until 11:00 per the resolution. Please have the City mail back our refund to: thehouse Newport Beach PO Box 15175 Newport Beach, CA 92659 Please confirm. Thanks so much! Keith Keith Jarrett Founding Member and Owner (949) 689-5186 thehousenewportbeach.com 99 INTENTIONALLY BLANK PAGE100 Attachment No. 4 Approved Plans from Use Permit 101 INTENTIONALLY BLANK PAGE102 MZ)005AHG 3H.Lrir -111J. ONIMHOMit IMM.i Rll,it3 M 103 Moir s eroTM wYt (fl 36ryYC2 O 1719 NET PUBLIC AREA SCALE: RECEi'ED TlY PLANry'iN0, DEPARTMEW APR 2 s 2011 I SEATING EMPOYEE COUNT ENTRY PATIO = 22 SEATS MAXIMUM Of 9 C[T}' OP NEWPORT RFACA 8R = 10 90 SEATS SEATS R s 0 a Z5 ia3xuxG o LL a HATCH ES(GN GR0UP a\cauzcEloFS:co cnu W U W r', U 3" 0 c yII U 0 UV Ln in m W 0 x wa N W Z 104 Attachment No. PC 9 Notice of Violation from Department of Alcoholic Beverage Control 105 INTENTIONALLY BLANK PAGE106 107 September 7, 2023, Planning Commission Item 2 Comments These comments on a Newport Beach Planning Commission agenda item are submitted by: Jim Mosher ( jimmosher@yahoo.com ), 2210 Private Road, Newport Beach 92660 (949-548-6229). Item No. 2. THE HOUSE CONDITIONAL USE PERMIT (PA2023-0143) The relatively recently adopted City Charter Section 713(e) authorizes the Planning Commission to refer applications to the Harbor Commission for advice and recommendations from them. This would appear to be a case in which such a referral would be appropriate, since setting dock use restrictions is the Harbor Commission’s province. Although it may have been registered as a “vessel,” the 30x30’ float at issue appears engineered to serve as a floating patio, and (since it entirely fills the opening) could not leave its berth without the cooperation of all other boats using the dock (alternatively, if it were fastened near the harbor end of the U-shaped dock, no other boats could enter the U). Whatever conditions are placed on the Conditional Use Permit, it is very hard to believe the “Leilani Rose” will not continue to serve as an extension of the private supper club. As pointed out at the August 3 hearing from which this was continued, page 95 of the current agenda packet contains a written promise from the operator to City staff, dated Dec. 6, 2022, to “not serve food and beverage on the Leilani Rose,” followed by a Dec. 23, 2022, Notice of Violation from an ABC agent citing consumption of alcohol on the “unlicensed barge patio.” It is not clear from the notice if alcohol was being actively “served” on the “barge,” or if drinks purchased in the licensed premises were only observed being consumed on it (in violation of the operator’s “on-sale” license), but a claimed distinction between “serving” and “consuming” would appear to continue to allow patrons to consume their purchased food and non-alcoholic beverages (as well as alcoholic beverages purchased elsewhere) as “personal guests” on the operator’s personal patio-like vessel,. At the very least, this commercial operation on the water would seem to need a Marine Activities Permit. However that may be, I have these comments about the resolution: 1.The applicant described in Section 1.1, although a licensed attorney, appears to be acting as a lobbyist for the property owner or current tenant, but is not registered as a lobbyist. 2.In Section 1.4, a comma is missing after “The House (“Restaurant”).” 3.Section 3.A does not address consistency with the Harbor & Bay Element of the General Plan. 4.Section 3.B does not address consistency with Title 17 of the Municipal Code (the Harbor Code). 5.It is not clear why Section 3.C.1 says “The Property is located within a nonresidential zoning district.” It was previously established that it is in a mixed-use district. 6.In Section H.1, “cross walk” should be “crosswalk.” Planning Commission - September 7, 2023 Item No. 2a - Additional Materials Received The House Conditional Use Permit Amendment (PA2023-0143) September 7, 2023, PC agenda Item 2 comments - Jim Mosher Page 2 of 2 7. Conditions 12, 14, 22 and 76 refer to “The permitted docked vessel.” As best I can tell there is no explanation or description of what docked vessel this is referring to, or what the “additional vessels” of Condition 11 would be additional to. 8. Conditions 25 and 26 do not seem relevant if no construction is allowed. Most of conditions 46-53 likewise seem relevant only to already-built construction. 9. Conditions 69-85 do not appear to be Police Department conditions, and many repeat earlier conditions. Although not essential to the resolution, it might also be noted there is a possible discrepancy between the existing and proposed parking situation as described in Table 1 in the staff report versus the Applicant’s Project Request (Attachment PC 2). Table 1 indicates there are currently 12 on-site and 20 off-site parking spaces; Attachment PC 2 suggests that while that is the requirement, there are currently 12 on-site and 32 off-site spaces. Planning Commission - September 7, 2023 Item No. 2a - Additional Materials Received The House Conditional Use Permit Amendment (PA2023-0143) THE HOUSE 2601 WEST COAST HWY Use Permit Amendment (PA2023-0143) Planning Commission Public Hearing September 7, 2023 David Lee, Senior Planner 949-644-3225, dlee@newportbeachca.gov Planning Commission - September 7, 2023 Item No. 2b - Additional Materials Presented at Meeting by Staff The House Conditional Use Permit Amendment (PA2023-0143) PROJECT LOCATION 2 The House Lot Area: 12,000 SF Building Size: 3,987 SF On-site parking: 12 spaces Planning Commission - September 7, 2023 Item No. 2b - Additional Materials Presented at Meeting by Staff The House Conditional Use Permit Amendment (PA2023-0143) BACKGROUND 3 •1968: Restaurant use established. No use permit required. •2004: PC approved UP2003-036 for Josh Slocum’s Restaurant and nightclub with Type 47 ABC license and late hours. •2011: PC approved UP2011-001 for Dry Dock restaurant. Includes waiver of 11 parking spaces. Subsequently operated by DivBar, Pizza Nova, and Mama’s. Includes requirement for annual review. •2021: The House began operation pursuant to UP2011-001, subject to all conditions of approval. •August 3, 2023: Annual Review of The House. Discussion of violations and paths forward. Item continued to September 7 PC. Planning Commission - September 7, 2023 Item No. 2b - Additional Materials Presented at Meeting by Staff The House Conditional Use Permit Amendment (PA2023-0143) UP2011-001 PARKING CONSIDERATIONS 4 •Since there are only 12 on-site parking spaces, UP2011-001 included 11 space waiver •Parking management plan included off-site parking agreement, and valet plan •Additional conditions added for employee parking pass requirements and open dock slips for patron use: Condition 65: The boat slips shall be available at all times for exclusive use by the patrons of the establishment. The owner and operator shall be prohibited from renting or leasing the boat slips. Planning Commission - September 7, 2023 Item No. 2b - Additional Materials Presented at Meeting by Staff The House Conditional Use Permit Amendment (PA2023-0143) CONDITION 65 VIOLATION 5 Planning Commission - September 7, 2023 Item No. 2b - Additional Materials Presented at Meeting by Staff The House Conditional Use Permit Amendment (PA2023-0143) OTHER VIOLATIONS 6 Condition 1: Substantial conformance with the approved site plan Condition 7: Limits outdoor patio to 429 square feet or 25 percent of interior area Condition 9: No live entertainment without a live entertainment permit Condition 10: Live entertainment to be confined to interior Condition 12: No dancing without a dance permit or amendment to CUP Condition 35: No alcoholic beverages consumed on property adjacent to the licensed premises Planning Commission - September 7, 2023 Item No. 2b - Additional Materials Presented at Meeting by Staff The House Conditional Use Permit Amendment (PA2023-0143) PURPOSE OF REQUESTED AMENDMENT 7 •Remove Condition 65, which restricts the use of boat slips at all times for exclusive use by patrons •Add conditions to limit the use of the vessel and ensure that it is not an extension of the restaurant •Approval of the amendment would supersede UP2011-001 Planning Commission - September 7, 2023 Item No. 2b - Additional Materials Presented at Meeting by Staff The House Conditional Use Permit Amendment (PA2023-0143) PROPOSED OPERATION 8 Approved by UP2011-001 Current Operation Hours of Operation 11 a.m. to 11 p.m., Mon. – Fri. 9 a.m. to 11 p.m., Sat. – Sun. Closed Mon. & Tues. Noon to 11 p.m., Wed. – Fri. 11 a.m. to 11 p.m., Sat. – Sun. Net Public Area 1,719 sq. ft. (max)1,364 sq. ft. Outdoor Dining Area 429 sq. ft. (max)380 sq. ft. Parking 12 on-site 20 off-site (2615 Avon) 12 on-site 20 off-site (2615 Avon) Alcohol License Type 47 (On-Sale, General)Type 47 Planning Commission - September 7, 2023 Item No. 2b - Additional Materials Presented at Meeting by Staff The House Conditional Use Permit Amendment (PA2023-0143) CHANGES IN PARKING DEMAND 9 Previously Approved Operational Conditions Net Public Area Outdoor Dining Area Parking Ratio Required Spaces* 1,719 sq. ft. 429 sq. ft. 1 per 40 sq. ft. NPA 32 Current Operational Conditions Net Public Area Outdoor Dining Area Parking Ratio Required Spaces* 1,364 sq. ft. 380 sq. ft. 1 per 40 sq. ft. NPA 25 •7 space reduction in parking demand •Supports the reduction in number of boat slips for patrons Planning Commission - September 7, 2023 Item No. 2b - Additional Materials Presented at Meeting by Staff The House Conditional Use Permit Amendment (PA2023-0143) CONTINUATION OF PARKING MANAGEMENT PLAN 10 •12 on-site parking spaces, 20 off-site parking spaces •Off-site parking lot at 2615 Avon Street •Valet service •Condition 23 of draft resolution: Employees to obtain annual parking permits at the Mariners’ Mile parking lot Planning Commission - September 7, 2023 Item No. 2b - Additional Materials Presented at Meeting by Staff The House Conditional Use Permit Amendment (PA2023-0143) ALCOHOL SERVICE 11 •Type 47 ABC license was originally permitted for Josh Slocum’s Restaurant in 2004 •Type 47 ABC license permitted for Dry Dock Restaurant in 2011 •Use Permit amendment is not a substantial change to the establishment •No change in ABC license •No additional floor area dedicated to alcohol sales •Conditions of approval carried over from UP2011-001 Planning Commission - September 7, 2023 Item No. 2b - Additional Materials Presented at Meeting by Staff The House Conditional Use Permit Amendment (PA2023-0143) CONDITIONAL USE PERMIT FINDINGS 12 •Restaurant use is consistent with MU-W2 category •Vessel location is located in Tidelands and Submerged Lands (TS) General Plan and LCP categories. Storage of vessels is consistent with TS category and common along Mariners’ Mile •Reduction in parking demand supports reduction in number of boat slips for patrons •Conditions added to ensure the vessel is not utilized as an extension of the restaurant. Planning Commission - September 7, 2023 Item No. 2b - Additional Materials Presented at Meeting by Staff The House Conditional Use Permit Amendment (PA2023-0143) PROPOSED CONDITIONS OF APPROVAL 13 •Condition 11 (modified from former Condition 65): 50 percent of boat slips shall be available for use by the patrons. •Condition 8 (modified): The interior net public area shall be limited to 1,364 square feet and the outdoor dining area shall be limited to 380 square feet. •Condition 12 (new): The permitted docked vessel maintained in a sea-worthy and operating condition and have current registration or certificate of documentation. •Condition 13 (new): No commercial charters from the boat dock. Planning Commission - September 7, 2023 Item No. 2b - Additional Materials Presented at Meeting by Staff The House Conditional Use Permit Amendment (PA2023-0143) PROPOSED CONDITIONS OF APPROVAL 14 •Condition 14 (new): Vessel not be used as an extension of the restaurant. •Condition 15 (new): No food or drink service on vessel. •Condition 16 (modified): Live entertainment prohibited on docked vessels. •Condition 18 (modified): No dancing on vessel. Planning Commission - September 7, 2023 Item No. 2b - Additional Materials Presented at Meeting by Staff The House Conditional Use Permit Amendment (PA2023-0143) REMOVAL OF ANNUAL REVIEW 15 The Conditional Use Permit shall be reviewed by the Planning Commission at a noticed public hearing within one (1) year of the restaurant being in operation and annually thereafter. The applicant, or operator, shall provide the off-site parking agreement for the next year(s) for the Planning Commission’s review at this hearing. •Staff has adequate Code and Harbor Enforcement to ensure appropriate usage of vessel •Worked with Harbor Enforcement on appropriate conditions Planning Commission - September 7, 2023 Item No. 2b - Additional Materials Presented at Meeting by Staff The House Conditional Use Permit Amendment (PA2023-0143) RECOMMENDATION 16 1)Conduct a public hearing; 2)Find this review exempt from CEQA under Class 1 (Existing Facilities); and 3)Adopt Resolution No. PC2023-032, approving a conditional use permit (as revised). Planning Commission - September 7, 2023 Item No. 2b - Additional Materials Presented at Meeting by Staff The House Conditional Use Permit Amendment (PA2023-0143) 17 QUESTIONS AND DISCUSSION David Lee, Senior Planner 949-644-3225, dlee@newportbeachca.gov Planning Commission - September 7, 2023 Item No. 2b - Additional Materials Presented at Meeting by Staff The House Conditional Use Permit Amendment (PA2023-0143)