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HomeMy WebLinkAboutZA2024-056 - APPROVING A MINOR USE PERMIT TO ALLOW A TYPE 47 (ON-SALE GENERAL – EATING PLACE) ALCOHOL BEVERAGE CONTROL (ABC) LICENSE FOR A RESTAURANT AND RETAIL STORE LOCATED AT 1101 NEWPORT CENTER DRIVE (PA2024-0058)RESOLUTION NO. ZA2024-056 A RESOLUTION OF THE ZONING ADMINISTRATOR OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING A MINOR USE PERMIT TO ALLOW A TYPE 47 (ON-SALE GENERAL – EATING PLACE) ALCOHOL BEVERAGE CONTROL (ABC) LICENSE FOR A RESTAURANT AND RETAIL STORE LOCATED AT 1101 NEWPORT CENTER DRIVE (PA2024-0058) THE ZONING ADMINISTRATOR OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1.An application was filed by Stuart Wagner (Applicant), on behalf of Irvine Company (Property Owner), concerning property located at 1101 Newport Center Drive, legally described as Parcel 1 of Lot Line Adjustment No. PA2023-0002 (Property), requesting approval of a minor use permit. 2.The applicant requests a minor use permit to allow a Type 47 (On-Sale General – Eating Place) Alcohol Beverage Control (ABC) License for a new restaurant and design gallery within a retail store. The proposed hours of operation are 10:00 a.m. to 10:00 p.m., Monday through Saturday, and 10:00am to 9:00 p.m. on Sunday. No late hours (after 11:00 p.m.), live entertainment, or dancing are requested (Project). 3.The Property is categorized as Regional Commercial (CR) by the General Plan Land Use Element and is located within North Newport Center Planned Community (PC56), in the Fashion Island sub-area. 4.The Property is not located within the coastal zone. 5.A public hearing was held on October 10, 2024, online via Zoom. A notice of the time, place, and purpose of the hearing was given in accordance with the Newport Beach Municipal Code (NBMC). Evidence, both written and oral, was presented to and considered by, the Zoning Administrator at this hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1. This Project is exempt from the California Environmental Quality Act (CEQA) 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 Class 1 exemption authorizes the operation or licensing to an existing private structure involving no expansion of use. The Property, which is being developed as a retail store with a restaurant and design gallery, was authorized on February 6, 2023 through Building Permit No. XC2022-1892 and is currently under construction. The Applicant’s request is for the use of a Type 47 ABC License in the approved restaurant and design gallery portion of the store. Zoning Administrator Resolution No. ZA2024-055 Page 2 of 11 SECTION 3. REQUIRED FINDINGS. Alcohol Sales In accordance with Section 20.48.030 (Alcohol Sales) of the NBMC, the Zoning Administrator shall consider the following findings prior to the approval of a new or amended alcohol sales establishment: Finding: A.The use is consistent with the purpose and intent of Section 20.48.030 (Alcohol Sales) of the Zoning Code. Facts in Support of Finding: In finding that the Project is consistent with Section 20.48.030 (Alcohol Sales) of the NBMC, the following criteria must be considered: i.The crime rate in the reporting district and adjacent reporting districts as compared to other areas in the City. 1.The Property is in an area the Newport Beach Police Department (NBPD) has designated as Reporting District (RD) 39 which encompasses the Fashion Island Mall and surrounding areas. The NBPD is required to report offenses of Part One Crimes (criminal homicide, forcible rape, robbery, aggravated assault, burglary, larceny, theft, and motor vehicle theft), combined with all arrests for other crimes, both felonies and misdemeanors (except traffic citations) to the Department of Alcoholic Beverage Control (ABC). RD 39 is reported as a high crime area as compared to adjacent reporting districts in the City, including RD 38, RD 43, and RD 47. The subject RD’s crime count is 430, which is 264% over the City-wide crime count average of 118. The highest volume of crime in this area is theft and the highest volume of arrests in the area are narcotics related offenses. 2.Since RD 39 has a crime count that is 264% over the City-wide crime count average as determined from all crime reporting districts within the City, the area is found to have undue concentration. In comparison, the neighboring RD 38 is 65% below the City-wide average, RD 43 is 66% below the City-wide average, and RD 47 is 45% below the City-wide average. Of the 38 RDs in Newport Beach, 13 are reported to ABC as high crime areas. 3.The NBPD has reviewed the project and has no objection to the request for a Type 47 ABC License or Type 41 License subject to appropriate conditions of approval. The subject site is in a high crime area and there are no late hours requested. The project will be subject to appropriate conditions of approval and all NBPD recommended conditions of approval have been included in Exhibit “A” of this Resolution. Zoning Administrator Resolution No. ZA2024-055 Page 3 of 11 ii.The number of alcohol-related calls for service, crimes, or arrests in the reporting district and in adjacent reporting districts. Reporting District Alcohol Related Arrests1 Total Arrests RD 39 (Project) 16 243 RD 38 7 20 RD 43 3 17 RD 47 5 33 Newport Beach 291 2,732 1.In RD 39, DUI, public intoxication, and liquor law violations make up roughly 16% of arrests. In comparison, the figure for neighboring RD 38 is roughly 40%, RD 43 is roughly 18%, and RD 47 is roughly 21%. These statistics reflect the City of Newport Beach’s data for 2022, which is the latest available data. 2.The NBPD has reviewed the application and has provided operational conditions of approval to help minimize any potential detrimental impacts. The NBPD has no concerns with the Applicant’s request, and while the project site has undue concentration, the area is a planned entertainment district with few residences, which makes the Project appropriate for the area. Additionally, the Property Owner provides an additional crime deterrent by employing uniformed security for the area. iii.The proximity of the establishment to residential zoning districts, day care centers, hospitals, park and recreation facilities, place of worship, schools, other similar uses, and any uses that attract minors. 1.The nearest residential zoning district to the Property is the multi-residential neighborhood located on Granville Drive, located approximately 540 feet west of the Property. Although there are residential properties within proximity to the Property, the new restaurant and design gallery are oriented towards West Newport Center Drive which is within North Newport Center Planned Community (PC56) at Fashion Island. This Planned Community is typically developed with commercial uses such as retail, administrative offices, and restaurants. The operational characteristics of the restaurant and design gallery are similar to the existing restaurants at Fashion Island Mall, and the 10:00 p.m. closing hour will ensure patrons will not linger in the area into the late hours of the night. 2.The nearest place of worship is Saint Michael and All Angels Episcopal Church located approximately 5,250 feet to the east of the property at 3233 Pacific View Drive in Corona Del Mar. The Saint John Vianney Chapel typically is open in the morning on Monday and Wednesday from 9:00 a.m. to 3:00 p.m., 7:30 a.m. to 12:00 p.m. on Tuesday and Thursday, and on Sunday from 8:00 a.m. to 12:00 p.m. 1 Alcohol Related Arrests includes DUI (alcohol), public intoxication, and liquor law related arrests. Zoning Administrator Resolution No. ZA2024-055 Page 4 of 11 3.Although the project site is within proximity of a recreational facility, such as The Tennis and Pickleball Club along Newport Center Drive, and other similar uses within Fashion Island Mall that may attract minors, the Applicant’s request is similar to other existing restaurants within the vicinity that hold active ABC Licenses, such as Red O and Cucina Enoteca. iv.The proximity to other establishments selling alcoholic beverages for either off-site or on-site consumption. 1.There are several other restaurants located along West Newport Coast Drive in Fashion Island with active ABC Licenses, most of which are bona fide eating and drinking establishments and are not defined as bars, lounges, or night clubs by the NBMC. The closest restaurant selling alcoholic beverages is Cucina Enoteca located approximately 370 feet north of the Property. 2.The nearest establishment selling alcoholic beverages for off-site consumption is the Whole Foods Market at 415 Newport Center Drive, which is approximately 520 feet east of the Property. v.Whether or not the proposed amendment will resolve any current objectionable conditions. 1.No objectionable conditions are presently occurring at the site. Minor Use Permit In accordance with Section 20.52.020(F) (Conditional Use Permits and Minor Use Permits – Findings and Decision) of the NBMC, the following findings and facts in support of such findings are set forth: Finding: B.The use is consistent with the General Plan and any applicable specific plan; Fact in Support of Finding: 1.The Land Use Element of the General Plan categorizes the Property as Regional Commercial (CR). The CR designation is intended to provide retail, entertainment, service, and supporting uses that serve local and regional residents. The Project is compliant with the CR designation since it will serve as a restaurant and design gallery. Finding: C.The use is allowed within the applicable zoning district and complies with all other applicable provisions of this Zoning Code and the Municipal Code; Zoning Administrator Resolution No. ZA2024-055 Page 5 of 11 Facts in Support of Finding: 1.The Project is located in the North Newport Center Planned Community (PC56) within the Fashion Island Sub-Area. While eating and drinking establishments are a permitted use, the sale of alcohol requires the approval of a minor use permit. 2.As conditioned, the Applicant will comply with all recommendations from the NBPD to ensure the restaurant does not operate as a bar, tavern, cocktail lounge, or nightclub as defined by the NBMC. 3.The retail establishment, including the restaurant and design gallery, was authorized on February 6, 2023, through Building Permit No. XC2022-1892 and is currently under construction. Finding: D.The design, location, size, and operating characteristics of the use are compatible with the allowed uses in the vicinity; Facts in Support of Finding: 1.The Project is located along West Newport Center Drive in Fashion Island, which is accessible from Newport Center Drive, Santa Barbara Drive, Anacapa Drive, and San Miguel Drive. Commercial uses, including eating and drinking establishments, within the Fashion Island Sub-Area of PC56 and is intended to serve visitors and residents. The addition of a Type 47 ABC License with no late hours has been reviewed and conditioned to ensure that potential conflicts with the surrounding land uses are minimized to the greatest extent possible to maintain an environment compatible with both residents and businesses. 2.The permitted restaurant is proposing hours of operation are 10:00 a.m. to 10:00 p.m., Monday through Saturday, and 10:00 a.m. to 9:00 p.m. on Sunday. No late hours (after 11:00 p.m.), live entertainment, or dancing are requested. The 10:00 p.m. closing time is compatible with the existing restaurants located within Fashion Island. 3.The NBPD has reviewed the project and has no objections. The operational conditions of approval recommended by the NBPD related to the sale of alcoholic beverages will help ensure compatibility with the surrounding uses and minimize alcohol-related impacts. The Project has been conditioned to ensure the welfare of the surrounding community. Finding: E.The site is physically suitable in terms of design, location, shape, size, operating characteristics, and the provisions of public and emergency vehicle (e.g., fire and medical) access and public services and utilities; and Zoning Administrator Resolution No. ZA2024-055 Page 6 of 11 Facts in Support of Finding: 1.The Property is within Fashion Island, which is located at the entrance of Newport Center Drive which has heavy vehicular and pedestrian activity. The area allows for commercial entertainment uses such as retail and dining. The permitted restaurant and design gallery, with the proposed alcohol service, are not expected to result in an increase of vehicular and pedestrian activity. 2.The Property is accessible from the front of the property along Newport Center Drive and from pedestrian walkways within Fashion Island. 3.The restaurant and design gallery were reviewed by the City’s Public Works Department and Fire Division prior to issuance of the building permit to ensure adequate public and emergency vehicle access, public services, and utilities are provided on the property. Finding: F.Operation of the use at the location proposed would not be detrimental to the harmonious and orderly growth of the City, nor endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed use. Facts in Support of Finding: 1. The Project has been reviewed and includes conditions of approvals to ensure that potential conflicts with the surrounding land uses are minimized to the greatest extent possible. The NBPD has reviewed the Project and Condition of Approval No. 25 is included to ensure the premise does not operate as a bar, tavern, cocktail lounge, or nightclub as defined by the NBMC. 2. The restaurant and design gallery will serve the surrounding community in the Fashion Island Sub-Area of PC56 which is designed for such uses. The operator is required to take reasonable steps to discourage and correct objectionable conditions that constitute a nuisance within the facility, adjacent properties, or surrounding public areas, sidewalks, or parking lots of the restaurant, during business hours, if directly related to the patrons of the establishment. 3. Per Condition of Approval No. 24, all owners, managers, and employees selling alcohol are required to undergo and successful complete a certified training program in responsible methods and skills for selling alcoholic beverages within 60 days of hire. The certified program must meet the standards of the certifying/licensing body designated by the State of California and records of successful completion shall be maintained on the premises. Zoning Administrator Resolution No. ZA2024-055 Page 7 of 11 SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Zoning Administrator of the City of Newport Beach hereby finds this project is categorically exempt from the California Environmental Quality Act 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 Zoning Administrator of the City of Newport Beach hereby approves the Minor Use Permit (PA2024-0058), 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 or a call for review is filed with the Community Development Director by the provisions of Title 20 Planning and Zoning, of the Newport Beach Municipal Code. PASSED, APPROVED, AND ADOPTED THIS 10TH DAY OF OCTOBER 2024. Zoning Administrator Resolution No. ZA2024-055 Page 8 of 11 EXHIBIT “A” CONDITIONS OF APPROVAL (project specific conditions are italicized) Planning Division 1.The Project shall be in substantial conformance with the approved project plans. 2.The Project is subject to all applicable City ordinances, policies, and standards unless specifically waived or modified by the conditions of approval. 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 are limited to 10:00 a.m. to 10:00 p.m. Monday to Saturday, and 10:00 a.m. to 9:00 p.m. on Sunday. No late hours (after 11 p.m.) are permitted. 5.Live Entertainment and dancing shall be prohibited. 6.Any change in operational characteristics, expansion in the area, or other modification to the approved plans, shall require an amendment to this Use Permit or the processing of a new Use Permit. 7.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. 8.No outside paging system shall be utilized in conjunction with this establishment. 9.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. 10.All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 (Community Noise Control), under Sections 10.26.025 (Exterior Noise Standards) and 10.26.030 (Interior Noise Standards), and other applicable noise control requirements of the Newport Beach Municipal Code (NBMC). 11.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. 12.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 Zoning Administrator Resolution No. ZA2024-055 Page 9 of 11 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). 13.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. Noise-generating construction activities are not allowed on Saturdays, Sundays, or Holidays. 14.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. 15.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. 16.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. 17.Lighting shall be in compliance with applicable standards of the Zoning Code. Exterior on- site lighting shall be shielded and confined within site boundaries. No direct rays or glare are permitted to shine onto public streets or adjacent sites or create a public nuisance. “Walpak” type fixtures are not permitted. Parking area lighting shall have zero cut-off fixtures. 18.The Property shall not be excessively illuminated based on the luminance recommendations of the Illuminating Engineering Society of North America, or, if in the opinion of the Planning Director, the illumination creates an unacceptable negative impact on surrounding land uses or environmental resources. The Planning Director may order the dimming of light sources or other remediation upon finding that the site is excessively illuminated. 19.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. 20.This approval shall expire and become void unless exercised within 24 months from the actual date of review authority approval, except where an extension of time is approved in compliance with the provisions of Title 20 Planning and Zoning of the Newport Beach Municipal Code. Zoning Administrator Resolution No. ZA2024-055 Page 10 of 11 21.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 Restoration Hardware Alcohol License Minor Use Permit (PA2024-0058). 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 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. Police Department 22.The Alcoholic Beverage Control License shall be limited to a Type 47 (On-Sale General) or a Type 41 (On-Sale Beer and Wine). Any substantial change in the ABC license type shall require subsequent review and potential amendment of the Use Permit. 23.The Applicant shall comply with all federal, state, and local laws, and all conditions of the Alcoholic Beverage License. Material violation of any of those laws or conditions in connection with the use is a violation and may be cause for revocation of the use permit. 24.All owners, managers and employees selling alcoholic beverages shall undergo and successfully complete a certified training program in responsible methods and skills for selling alcoholic beverages within 60 days of hire. The certified program must meet the standards of the certifying/licensing body designated by the State of California. The establishment shall comply with the requirements of this section within 60 days of approval. Records of each owner’s manager’s and employee’s successful completion of the required certified training program shall be maintained on the premises and shall be presented upon request by a representative of the City of Newport Beach. 25.Approval does not permit the premises to operate as a bar, tavern, cocktail lounge or nightclub as defined by the Newport Beach Municipal Code. 26.No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the licensee. 27.Alcohol service and alcohol consumption must occur in the ABC licensed areas only. 28.Food service shall be made available to patrons during alcohol service. Zoning Administrator Resolution No. ZA2024-055 Page 11 of 11 29.Petitioner shall not share any profits or pay any percentage or commission to a promoter, or any other person based upon monies collected as a door charge, cover charge, or any other form of admission charge, including minimum drink orders or the sale of drinks. 30.Any event or activity staged by an outside promoter or entity, where the applicant, operator, owner or his employees or representatives share in any profits, or pay any percentage or commission to a promoter or any other person based upon money collected as a door charge, cover charge or any other form of admission charge is prohibited. 31.“VIP” passes or other passes to enter the establishment, as well as door charges, cover charges, or any other form of admission charge, including minimum drink order of the sale of drinks is prohibited (excluding charges for prix fixe meals). 32.Strict adherence to maximum occupancy limits is required. 33.There shall be no reduced-price beverage promotions or “happy hour” pricing after 9:00 p.m. 34.The applicant shall maintain a security recording system with a 30-day retention and make those recording available to police upon request. 35.The exterior of the business shall be maintained free of litter and graffiti at all times. The owner or operator shall provide for daily removal of trash, litter, and debris from the premises and on all abutting sidewalks within 20 feet of the premises. Graffiti shall be removed within 48 hours of written notice from the City. 36.Strict adherence to maximum occupancy limit shall be required. 37.The operator of the restaurant facility shall be responsible for the control of noise generated by the subject facility. All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 and other applicable noise control requirements of the Newport Beach Municipal Code. Building Division 38.The approved Plan Check No. PC2022-1953 shall be revised if there are any changes from the approve plans. Fire Division 39.A Fire Department operation permit shall be obtained for assembly occupancy. 40.Conditions of the assembly operation permit shall be followed at all times.