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Home My WebLink About04/21/19940 COPAMSSIONERS CITY OF NEWPORT BEACH REGULAR PLANNING COMMISSION MEETING PLACE: City Council Chambers MINUTES 7:30 P.M. DDIME: \ April 21, 1994 ROLL CALL INDEX Present * * * * * kII Commissioners were present. s s s EX-OFFIC10 OFFICERS PRESENT: ones Hewicker, Planning Director obin Flory, Assistant City Attorney sss William R. Laycock, Current Planning Manager on Webb, City Engineer ee Edwards, Secretary sss inutes of ril 7,1994 Minutes of 4/7/9, Motion Votion was made and voted on to approve the April 7, 1994, Ayes Nanning Commission Minutes. MOTION CARRIED. Abstain •rs P'ublic Comments: Public omments 0 one appeared before the Planning Commission to speak on on- agenda items. :ss ?ostine of the Aft osting of the lames Hewicker, Planning Director, stated that the Planning Agenda mmission Agenda was posted on Friday, April 15, 1994, in front A City Hall. sss i CITY OF NEWPORT BEACH MINUTES. A-.—]I Ii 1nnA !lk/111 41, 1lT ROLL CALL WDEX for i Request for hector Hewicker stated that the appellant, Diane Colvin, withdrawa . equested that Item No. 7, an appeal of the Modifications mmittee approval of Modification No. 4181, regarding property ocated at 3815 Inlet Isle Drive, be withdrawn. Motion Motion was made and voted on to withdraw Modification No. All Ayes 181. MOTION CARRIED. * s t ff ite Parkin n Discussion Item No.1 equest to amend a previously approved off -site parking Off -Site greement which provides required off - street parking spaces for an misting office building on property located at 503 32nd Street and Parking 8gree . ' which are located at an off -site location at the rear of the Via do Plaza Shopping Center in the RSC -H District. Under the Approved xisting parking arrangement, 24 restricted parking spaces are rovided to the customers and business invitees of the office uilding. The applicants propose to reduce the number of equired off - street parking spaces to 12 and remove the existing se restriction so as to allow tenants and employees of the office uilding to also use the off -site parking spaces. OCATION: Parcel 1 of Parcel Map 85 -1 (Resubdivision No. 516), located 3471 Via Lido, on the southwesterly corner. of Via Lido and Via Oporto (parking site); and Lot 6, Tract No. 907, located at 503 32nd Street, on the northeasterly corner of 32nd Street and Via Oporto, adjacent to City Ball (building site). ONE: RSC -H -2- t CITY OF NEWPORT BEACH MINUTES April 71 100A ROLL CALL INDEX APPLICANTS: Newport Via Lido Associates and 503 Lido Partners, Ltd., Orange and Newport Beach OWNERS: Same as applicants In response to a request for clarification by Commissioner Gifford regarding the use restriction of the off - street parking spaces for an . ting office building on property located at 503 - 32nd Street d that are located at an off -site location at the rear of the Via Lido Plaza Shopping Center, James Hewicker, Planning Director, replied that the current use of the parking spaces is limited to business invitees; however, the proposed agreement would provide parking spaces for the tenants as well as for business invitees. response to a question posed by Commissioner Gifford, William ycock, Current Planning Manager, explained that the existing 08 parking spaces in the Via Lido Plaza parking lot were ' estriped to provide compact parking spaces in the parking lot. Motion Motion was made and voted on to approve the Off -Site Parking All Ayes greement, subject to the findings and conditions in Exhibit 'W. MOTION CARRIED. in in 1. That the off -site parking location is located so as to be useful in conjunction with the proposed use or uses on the building site. That the use of the off -site parking location in this case will not create undue traffic hazards in the surrounding area. 3. That the applicant has entered into an appropriate agreement for the off -site parking spaces, which is of sufficient duration for the 503 Building. The owners, upon the approval of City Council, intend to execute a written instrument or instruments, approved as to -3- COMMUSSIONERS 4 L CITY OF NEWPORT BEACH MINUTES A-- :] 01 1nnA ROLL CALL INDEX form and content by the City Attorney, providing for the easement for parking in accordance with the Memorandum of Understanding between Via Lido Plaza and the 503 Building so as to maintain 12 offstreet parking spaces on the off -site parking location for the duration of the existence of the use at 503 32nd Street (503 Building). 5. That the design of the proposed improvements will not conflict with any easements acquired by the public at large for access through or use of property within the proposed development. Conditions: 1. That the owners, upon the approval of City Council, shall record an agreement, approved as to form and content by the City Attorney, which shall: guarantee that a minimum ' of twelve (12) off - street parking spaces shall be provided in the easterly parking area of Via Lido Plaza for the benefit of the 503 Building throughout the duration of the existence of the building. Such agreement shall be recorded in the office of the Office of the County Recorder and a copy thereof filed with the Planning Department. That the on -site parking, vehicular circulation and pedestrian circulation systems be subject to further review by the Traffic Engineer. i t i -4- • ��'1'O�t�+P�O��'O 4 CITY OF NEWPORT BEACH MINUTES A ril 21 1994 p, ROLL CALL INDEX Use Permit No 106 (Public Hearing) stem No. Request to amend a previously approved use permit which allowed UP1806A the establishment of a restaurant facility with on -sale alcoholic beverages and outdoor seating on property located in Commercial Approved Area No. 14 of the Harbor Views Hills Planned Community. The proposed amendment includes a request to expand the existing restaurant into an adjoining commercial space and to construct a small addition to the existing restaurant space; to expand the lounge /bar area; to change the opening hour from 7:30 am. to 6:30 a.m. and to change the closing hour from 11:00 p.m. to 2:0(1 a.m., daily; and to add live entertainment consisting of a piano bar. LOCATION: Parcel 1 of Parcel Map 119/49 (Resubdivision No. 578) located at 2632 San Miguel Drive, on the southeasterly corner of San Miguel Drive and Ford Road, in the Harbor View Hills Planned Community. ZONE: P -C APPLICANT: What's Cooling, Newport Beach OWNER: The Irvine Company, Newport Beach The public hearing was opened in connection with this item, and Mr. Jorge Luhan U, applicant, appeared before the Planning Commission and he concurred with the findings and conditions in Exhibit "A". In response to questions posed by Commissioner Edwards, Mr. han replied that the restaurant is currently operating from 7:30 a.m. to 11:00 p.m. daily. Mr. Luban further replied that the purpose of the 2:00 a.m. closing is to extend the hours of the piano bar so as to cater to the late night guests. response to questions posed by Commissioner Ridgeway, Mr. Luban replied that he would agree to closing at 12:00 midnight -5- L CITY OF NEWPORT BEACH MINUTES ., r . , /II I HtJl ll Ll, 177Y ROLL CALL INDEX Monday through Thursday, and to 2:00 am. Friday and Saturday. mmissioner Ridgeway addressed the letters that the Planning ommission received from the adjacent neighbors expressing their =erns regarding the request to extend the hours of operation. . Luhan replied that the employee's use of the parking lot at he rear of the restaurant has been restricted at night so as to educe the late night noise. ames Hewicker, Planning Director, explained that the parking paces at the rear of the shopping center and the trash enclosures e in close proximity to the residential area. Mr. Luhan responded that the trash is emptied into the trash enclosures the . following morning, and the employees working the late shift are rrently being requested to park in front of the restaurant. iscussion followed between Commissioner Ridgeway and Mr. uhan with respect to the employees being able to locate a arking space in front of the restaurant at 5:00 p.m. when the late hift begins whereby Mr. Luhan indicated that there has been not een a problem finding a parking space. rs. Evelyn Darringer, 2707 Hillside Drive, appeared before the Tanning Commission. Mrs. Darringer stated that the neighbors ave been disturbed by restaurant noise from trash bins, car adios, pickup and delivery at the rear service area, and roof top quipment of the shopping center. She expressed a concern that he expansion of the restaurant and extended operating hours ould have a further detrimental impact on the neighborhood. r. Hewicker referred to Condition No. 11, Exhibit "A", stating hat the Planning Commission may call back the use permit so as o add or modify conditions of approval if it is determined that the peration is detrimental to the community. r. Dion Burgner, 2006 Windward Lane, appeared before the lanning Commission on behalf of the Carlson Company, the roperty management company for the Newport Hills Shopping 73enter. Mr. Burgner stated that residents have previously . -6- '% 0 C, * k1m.,410" 4 CITY OF NEWPORT BEACH MINUTES A__t .11 1AAA At1111 L 1, 117T ROLL CALL INDEX expressed concerns to the Carlson Company regarding the noise enerated by Ralph's employees leaving the parking IoL He said at be has not often received noise complaints regarding the ubject restaurant, and he extended an invitation to the eighboring Homeowner's Associations to contact him with respect o their concerns about the restaurant hairman Merrill stated that he had been contacted by a resident egarding the late night delivery trucks to Ralph's market. response to a question posed by Commissioner Gifford, Mr. urgner replied that the tenants' leases state the hours for elivery, and he indicated that Ralph's Market was cooperative hen they were informed of the noise from refrigerated trucks. response to questions posed by Commissioner Ridgeway, Mr. ' urgner replied that the Newport Hills shopping center has C &R's, and the CC&R's address the hours of delivery. He rther replied that during the past year the property managers eceived a complaint regarding bottle noise from the subject estaurant. response to a question posed by Commissioner Edwards, Mr. urgner replied that the hours of delivery for the subject estaurant would typically be between 7:00 am. and 10:00 am.; owever, he stated that he could not be specific without reviewing he lease. r. Don Landis, 2742 Hillview Drive, and a board member of the arbor View Knolls Homeowner's Association, appeared before he Planning Commission. He concurred with Mrs. Darringer's oregoing statements. He stated that the Association previously xpressed concerns to The Irvine Company and The Carlson ompany regarding the noise coming from Ralph's Market. Mr. dis requested a clarification of how the applicant intends to se the piano bar. -7- COMMISSIONERS L CITY OF NEWPORT BEACH w_a n1 Inns - nyiu �i, 17r ROLL CALL INDEX In response to Mr. Landis' request, Mr. Luban reappeared before the Planning Commission. He explained that the intent is to have a single piano player entertain during the dinner hour, and to add atmosphere to the restaurant for the restaurant patrons. Mr. Hewicker stated that the Planning Commission has the option to limit the type of entertainment that can be allowed in the restaurant. In response to a question posed by Commissioner Gifford, Mr. Luhan replied that the operating hours of the applicant's restaurant located in Dana Point, " Luciana's Restaurant ", are limited from 5:00 p.m. to 11:00 p.m. In response to aforementioned concerns regarding the noise from delivery trucks, Mr. Luhan replied that the restaurant's deliveries are made between 9:00 a.m. and 2:00 p.m. He explained that no deliveries are made after 2:00 pm. because that is when the kitchen becomes busy. He explained that the request to open the restaurant at 6:30 a.m. would be to provide an early morning coffee service to their patrons. In response to questions posed by Commissioner Gifford regarding the difference in the closing hours of the aforementioned Luciana's Restaurant and the subject establishment, Mr. Luhan replied that What's Cooking Restaurant is a neighborhood restaurant that serves the local residents, and Luciana's Restaurant is not a neighborhood restaurant. In response to a question posed by Commissioner Pomeroy, Mr. Luhan replied that he would agree to a 1:00 a.m. closing on Fridays and Saturdays. Mr. Eric Cahn, 2200 Port Lerwick Place, appeared before the Planning Commission to express his opposition to the restaurant's change in operation. He addressed the impact that the changes would have on the adjacent residential neighborhood, and he expressed a concern regarding the alcohol that would be served near the neighborhood. 4 L CITY OF NEWPORT BEACH MINUTES F..�`f�nn►.i A�/111 41, 1lJT ROLL CALL INDEX r. Steve Brahs, 2208 Port L.etwick Place, appeared before the Tanning Commission to express his concerns regarding the equested 2:00 a.m. closing. He addressed Condition No. 11, ]xhibit "A', regarding the beahb, safety, peace, morals, comfort d general welfare of the community. response to a question posed by Commissioner Ridgeway, Mr. rabs replied that he has not been disturbed by the current 7:30 .m. opening hour. He pointed out that during the summer onths when the residents' windows and doors are open is when ey become disturbed by the early morning and nighttime noise. r. Sid Sofer, 900 Arbor Street, Costa Mesa, appeared before the Tanning Commission. He stated that from his experiences that by 1:30 p.m. the restaurant patrons generally leave the premises. In espouse to a previously stated concern, he explained that the cohol Beverage Control permits establishments with on -sale ' coholic beverages closer than 100 feet to residential uses. Mr. ofer addressed his support of the meeting that the City previously ad with restaurant owners concerning their establishments, the 'ty should not have zoned the commercial and residential areas o close together, the mortality rate of the restaurants is very high, d the Adult Entertainment Ordinance states that sound can no nger extend beyond the property line. He recommended the approval of the amended use permit on the condition that the operation be reviewed in six months. ere being no others desiring to appear and be heard, the public earing was closed at this time. * Motion was made to approve Use Permit No. 1806 (Amended). subject to the findings and conditions in Exhibit W, and ondition No. 7 be amended to state that the hours of operation all be limited between the hours of 7:00 a.m. and 11:00 p.m. aily. ommissioner Pomeroy stated that there would appear to be no problem with the current situation, and the establishment would -9- COMMISSIONERS 4 4 CITY OF NEWPORT BEACH MINUTES A....:1 71 1nnA ROLL CALL INDEX penalized for something that may happen. He said that there e restaurants that do not disturb residents when they are jacent to one another, and the Planning Commission has the ption to call back the use permit for further review, if necessary. e said that it would not be fair to penalize the restaurant nasmuch as it has a reputation as being a good operator. Substitute ubstitute motion was made to approve Use Permit No. 1806 Motion * Amended) subject to the findings and conditions in Exhibit "A ", d to modify Condition No. 7 to state that the hours of operation hall be limited from 7:00 am. to 12:00 midnight Sundays through ursdays and from 7:00 a.m. to 1:00 am. Fridays and Saturdays. response to a question posed by Chairman Merrill, ommissioner Pomeroy agreed to add a condition stating that the iano bar would be limited to a single piano player. response to a question posed by Commissioner Ridgeway with espect to the feasibility of reviewing the application in six months, ' Hewicker explained that Condition No. it allows the Planning ommission to call back the use permit for review if it is etermined that there is a problem. mmissioner Glover did not support the substitute motion on the asis that the change of operation would be from a restaurant to ore of a night club, and that it is too close to a neighborhood. Ayes * ubstitute motion was voted on, SUBSTITUTE MOTION Noes FAILED. otion was voted on to approve Use Permit No. 1806 (Amended), mend Condition No. 7 to state that the hours of operation shall a limited between 7:00 a.m. and 11:00 p.m. daily, and to add All ondition No. 13 stating that the live entertainment shall be Ayes 'mited to a single piano player. MOTION CARRIED. FINDINGS That the proposed restaurant expansion is consistent with the General Plan and the Harbor View Hills Planned -10- 4 CITY OF NEWPORT BEACH MINUTES ri121 1994 Ap ROLL CALL INDEX Community Development Standards, and is compatible with surrounding land uses. That the project will not have any significant environmental impact. 5. That the proposed restaurant facility and its expansion will be adequately served by the proposed on -site parking. That the proposed live entertainment is in keeping with the existing restaurant operation and will be confined to the interior of the restaurant. 5. That the waiver of the development standards as they pertain to walls will not be detrimental to adjoining properties. ' That the approval of Use Permit No. 1806 (Amended) will not, under the circumstances of this case, be detrimental to the health, safety, peace, morals, comfort and general welfare of persons residing and working in the neighborhood, or be detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the City. CONDITIONS: 1. That development shall be in substantial conformance with the approved plot plan and floor plan, except as noted below. That the "net public area" of the restaurant facility shall be limited to a maximum of 2,163 square feet, including a maximum "net public area" of 458 sq.ft. in the outdoor patio. That a Live Entertainment Permit shall be approved by the City. ' -11- • L COMMISSIONERS CITY OF NEWPORT BEACH MINUTES April 21 1994 ROLL CALL INDEX 4. That the live entertainment shall be limited so that the sound from the live entertainment shall be confined to the interior of the structure; and further that when the live entertainment is performed, all windows and doors within the restaurant shall be closed except when entering and leaving by the main entrance of the restaurant. S. That the development standards pertaining to walls shall be waived. 6. That no dancing shall be permitted in the restaurant unless the Planning Commission approves an amendment to this Use Permit. 7. That the hours of operation of the restaurant facility shall be limited between the hours of 7:00 am. and 11:00 p.m. daily. 8. That one parking space for each 50 sq.ft. of "net public area" of the approved addition and expansion be provided on -site (18 spaces). 9. That the on -site parking lot shall be restriped so as to provide the additional required parking spaces prior to the use of the expanded restaurant facility. The proposed on- site parking, vehicular and pedestrian circulation plans shall be approved by the City Traffic Engineer. 10. That all previous conditions of approval of Use Permit No. 1806 (Amended) shall remain in effect as a part of this approval. 11. That the Planning Commission may add or modify conditions of approval to the use permit, or recommend to the City Council the revocation of this use permit, upon a . determination that the operation which is the subject of this use permit, cause injury, or is detrimental to the health, • -12- MINUTES CITY OF NEWPORT BEACH April 21, 1994 ROLL CALL INDEX safety, peace, morals, comfort or general welfare of the community. 12. That this use permit shall expire if not exercised within 24 months from the date of approval as specified in Section 20.80.090A of the Newport Beach Municipal Code. 13. That the live entertainment shall be limited to a single piano player. Use Permit No. 3528 (Public He "nn item No. Request to permit the establishment of an outdoor sales area in UP3528 Approved conjunction with the expansion of commercial space for a Crown Ace Hardware facility on property located in Commercial Area No. 14 of the Harbor View Hills Planned Community. LOCATION: Parcel 1 of Parcel Map 119/49 (Resubdivision No. 578) located at 2636 -2644 San Miguel Drive, on the southeasterly comer of San Miguel Drive and Ford Road, in the Harbor View Hills Planned Community. ZONE: P-C APPLICANT: The Carlson Company, Newport Beach OWNER: The Irvine Company, Newport Beach The public hearing was opened in connection with this item, and Mr. Dion Burgner, appeared before the Planning Commission on behalf of the applicant. He concurred with the findings and . conditions in Exhibit "A ". -13- 4 COM USSIONERS ��rEal0f'��d��'s lL.9�O�L��A CITY OF NEWPORT BEACH MINUTES April 21, 1994 ROLL CALL INDEX There being no others desiring to appear and be heard, the public hearing was closed at this time. Motion * Motion was made and voted on to approve Use Permit No. 3528 All Ayes subject to the findings and conditions in Exhibit W. MOTION CARRIED. FINDINGS 1. That the proposed outdoor garden area is consistent with the General Plan and the Harbor View Hills Planned Community Development Standards, and is compatible with surrounding land uses. 2. That the project will not have any significant environmental impact. 3. That the proposed outdoor expansion will be adequately served by existing on -site parking. 4. That the approval of Use Permit No. 3528 will not, under the circumstances of this case, be detrimental to the health, safety, peace, morals, comfort and general welfare of persons residing and working in the neighborhood, or be detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the City. CONDITIONS: 1. That development shall be in substantial conformance with the approved plot plan and floor plan, except as noted below. 2. That the outdoor display area shall be limited to a maximum of 900 square feet. -14- 14 Ao c � c 1�d�s o``�ryfo fc ' 1 �9`i'o CITY OF NEWPORT BEACH MINUTES April 21, 1994 ROLL CALL INDEX 3. That the outdoor garden area shall be kept in a neat, orderly manner, and that said area shall be utilized for the display of plants and related decorative items only. 4. That the on -site parking lot shall be restriped so as to provide the additional required parking spaces prior to the use of the expanded commercial space and outdoor sales area. The proposed on -site parking, vehicular and pedestrian circulation plans shall be approved by the City Traffic Engineer prior to the issuance of a building permit. 5. That one parking space for each 250 sq.ft. of floor area in the expanded commercial space (including the outdoor garden area) shall be provided on -site (11 spaces). 6. That the Planning Commission may add or modify conditions of approval to the use permit, or recommend to the City Council the revocation of this use permit, upon a determination that the operation which is the subject of this use permit, cause injury, or is detrimental to the health, safety, peace, morals, comfort or general welfare of the community. 7. That this use permit shall expire if not exercised within 24 months from the date of approval as specified in Section 20.80.090A of the Newport Beach Municipal Code. -15- • MINUTES CITY OF NEWPORT BEACH April 21, 1994 ROLL CALL INDEX Use Permit No. 3525 (Public Hearing) Item No. Request to establish a take -out restaurant with incidental seating UP3525 and on -sale alcoholic beverages on property located in the RSC -Z District where an existing specialty food use currently exists in a Approved portion of the tenant space. The proposal also includes: a request to convert an existing Base FAR use to a Reduced FAR use in conjunction with the expansion of the proposed restaurant facility into an adjoining commercial space; and the waiver of a portion of the required daytime off - street parking requirement. LOCATION: Parcel 1 of Parcel Map 216/46 -47 (Resubdivision No. 792) located at 2600 East Coast Highway, on the southeasterly corner of East Coast Highway and Dahlia Avenue, in Corona del Mar. iZONE: RSC -Z APPLICANT: CIAO Restaurant, Corona del Mar OWNER: Ernest George, Corona del Mar Commissioner Gifford asked if the Floor Area Ratio provisions could be waived to allow outdoor tables. William Laycock, Current Planning Manager, replied that inasmuch as outdoor seating areas are included in the gross floor area calculation and the proposed outdoor seating represents such an increase, outdoor seating would not be permitted. In response to a question posed by Commissioner Edwards, Mr. Laycock explained what constitutes outdoor seating. The public hearing was opened in connection with this item, and Mr. Jerry King, J. A. King & Associates, appeared before the Planning Commission on behalf of the applicant. He concurred with the findings and conditions in Exhibit "A ". Mr. King • addressed the request to establish a take -out restaurant wherein -16- 4 MINUTES CITY OF NEWPORT BEACH April 21, 1994 ROLL CALL INDEX he explained that better than 50 percent of the receipts from the restaurant are take -out and catering; however, it is clearly a sit down restaurant. He submitted a list in excess of 100 names in support of the restaurant, and he pointed out that the majority of the employees reside in close proximity to the restaurant. In response to a question posed by Commissioner Pomeroy, Mr. King explained that the existing dry cleaners and nail salon will be moved to other locations to allow the expansion of the take -out restaurant. In response to a question posed by Commissioner Ridgeway, Mr. King explained that after the expansion of the establishment, the restaurant would be considered more of a sit down restaurant; however, there is a large take -out business. There being no others desiring to appear and be heard, the public hearing was closed at this time. In response to comments by Commissioner Ridgeway, James Hewicker, Planning Director, explained that the definition that is in the Newport Beach Municipal Code states that when a majority of the customers remove food products from the premises for consumption that it is a "take -out restaurant". Commissioner Ridgeway determined that from his point of view that the restaurant should be considered a sit down restaurant and not a take -out restaurant, and there is an inconsistency in terms to allow alcoholic beverages in a take -out restaurant. Motion Motion was made and voted on to approve Use Permit No. 3525 All Ayes subject to the findings and conditions in Exhibit W. MOTION CARRIED. Findines: 1. That the proposed project is consistent with the General Plan and as conditioned is compatible with surrounding land uses. • -17- MINUTES CITY OF NEWPORT BEACH April 21, 1994 ROLL CALL RNDEX 2. That the waiver of the take -out restaurant development standards as they relate to perimeter walls, landscaping, and a portion of the required off -street parking will be of no further detriment to adjacent properties because of the existing developed nature of the site. 3. That adequate nighttime and daytime parking will be provided for the proposed take -out restaurant. 4. It has been demonstrated that the peak hour traffic to be generated by the proposed restaurant will not exceed that generated by the existing uses in the development, as determined in accordance with City Council Policy S -1. 5. The projections of traffic to be generated utilize standard traffic generation rates generally applied to a use of the type proposed, per City Council Policy S -1. 6. The structure on the site was constructed prior to October 25, 1988, consistent with the policies and ordinances in effect at the time of construction. 7. The take -out restaurant and other building tenants will be restricted to the uses and operational characteristics upon which the traffic equivalency was based. Relevant operational characteristics include, but are not limited to, hours of operation of on -site businesses, provision of valet parking, off -site parking, and net public area of restaurants. 8. The proposed take -out restaurant and physical improvements are such that the approved project would not readily lend itself to conversion to a higher traffic generating use. 9. The proposed uses are compatible with the surrounding area. • -18- .Cop plO��od��\ • CITY OF NEWPORT BEACH MINUTES April 21, 1994 ROLL CALL INDEX 10. The approval of Use Permit No. 3525 will not, under the circumstances of the case be detrimental to the health, safety, peace, morals, comfort and general welfare of persons residing or working in the neighborhood or be detrimental or injurious to property or improvements in the neighborhood or the general welfare of the City and further that the proposed modification related to the proposed signing is consistent with the legislative intent of Title 20 of this Code. Conditions: 1. That development shall be in substantial conformance with the approved site plan, and floor plan, except as noted below. 2. That the development standard pertaining to walls, landscaping, 17 midweek daytime parking spaces and 3 weekend /holiday daytime parking spaces shall be waived. 3. That the hours of operation of the proposed restaurant shall be from 10:00 a.m. to 12:00 midnight Sunday through Thursday and from 10:00 a.m. to 1:00 a.m. Friday and Saturday, provided further, that the area shown on the approved floor plan as Unit "B" shall not be used until 6:00 p.m, Monday through Friday. 4. That no outdoor seating shall be permitted in conjunction with the subject take -out restaurant. 5. That no outdoor paging system shall be utilized in conjunction with the subject take -out restaurant. 6. That the service of alcoholic beverages shall be incidental to the primary food service operation of the take -out restaurant. • -19- I Ao �Qlo'�„�d�drs 0 CITY OF NEWPORT BEACH MINUTES April 21 1994 ROLL CALL INDEX 7. That trash receptacles for patrons shall be located in convenient locations inside and outside the building and the entire site shall be maintained in a clean and orderly manner. 8. That kitchen exhaust fans shall be designed to control smoke and odor, to the satisfaction of the Building Department. 9. That where grease may be introduced into the drainage system, grease interceptors shall be installed on all fixtures as required by the Uniform Plumbing Code, unless otherwise approved by the Building Department and the Utilities Department. 10. That all mechanical equipment shall be sound attenuated to 55 DBA at the property lines. 11. That all mechanical equipment and trash areas shall be screened from adjoining streets. 12. That all employees shall park their vehicles on -site. 13. That no live entertainment shall be permitted within the subject take -out restaurant unless an amendment to this use permit is approved by the Planning Commission. 14. That the approval of Modification No. 3999 shall become null and void when the take -out restaurant facility is established and open for business. 15. That the Planning Commission may add to or modify conditions of approval to this Use Permit or recommend to the City Council the revocation of this Use Permit, upon a determination that the operation which is the subject of this Use Permit, causes injury, or is detrimental to the health, safety, peace, morals, comfort, or general welfare of the community. • -20- COMOSSIONERS • �yfo�t��'Po�'Aoso t IuOAMIJlIgly CITY OF NEWPORT BEACH April 21, 1994 ROLL CALL INDEX 16. That this Use Permit shall expire unless exercised within 24 months from the date of approval as specified in Section 20.80.090A of the Newport Beach Municipal Code. Use Pe 't No. 3527 (Public Hearing) item xo.5 Request to establish an international backpackers inn on property UP3527 located in the Specialty Retail area of the Cannery coat a Village/McFadden Square Specific Plan. The proposal involves to 5/ 1 9/94 short term dormitory style accommodations for traveling backpackers. LOCATION: Lot 24 and a portion of Lot 25, Block 431, Lancaster's Addition, located at 430 32nd Street, on the southerly side of 32nd Street, between Newport Boulevard and Villa Way, in the Cannery Village /McFadden Square Specific Plan Area. ZONE: SP -6 APPLICANT: Andrew Grace, Newport Beach OWNER: Kaisha Sansei Kenko Kabushiki, Newport Beach James Hewicker, Planning Director, addressed the comments in the staff report stating that a youth hostel was operating at 118 - 40th Street. He stated that upon investigation of the premises that it was determined that the applicant was not operating a youth hostel at that location. The public hearing was opened in connection with this item, and Mr. Andrew Grace, 118 - 40th Street, appeared before the Planning Commission. Mr. Grace concurred with the findings and • -21- �0 �aO CITY OF NEWPORT BEACH April 21, 1994 ROLL CALL INDEX conditions in Exhibit "A". He stated that his partner and the co- applicant is Philip Boston. Mr. Grace stated that hostels allow foreigners to not spend their money on accommodations but on adventure, cultural, and social experiences. He addressed Condition No. 10, Exhibit "A ", stating that there shall be no alcohol or illegal drug use permitted on the premises at any time wherein he concurred with the recommended condition. Mr. Grace referred to Condition No. 9, Exhibit "A ", stating that four off - street parking spaces shall be provided on -site at all times and one of these parking spaces shall be reserved for use by the retail tenant spaces located on the ground floor. He stated that a shuttle service would be provided for their travelers from Los Angeles and John Wayne Airports, and a shuttle service would be implemented in May to connect all of the hostels from San Francisco to San Diego. The shuttle service would eliminate the need for automobiles. The results of a survey indicate that a maximum of 5 percent of the foreign travelers use private vehicles based on a study taken in Australia. Mr. Grace requested that the subject hostel not be compared to the Santa Barbara facility inasmuch as the Santa Barbara facility is not just a youth hostel but also a hotel that is located on the waterfront whereby he referred to the staff report indicating that the hostel provides 27 parking.spaces. A hostel is not in operation to provide parking for the tourists. The Backpackers plan is to use public transportation or other types of transportation that is provided for them, i.e. a shuttle service. Mr. Grace submitted a document to the Planning Commission indicating that the majority of the hostels do not provide parking for their guests. He also submitted a letter from Mr. Rob Hay, the Manager of the Colonial Inn Hostel in Huntington Beach for 18 months, stating that the hostel does not provide parking. A Youth Hostel survey indicates . that none of the hostels in California provide off -site parking, and that street parking is satisfactory for their guests. Mr. Grace stated that Imperial Bank offered a month -to -montb lease • -22- COMMISSIONERS G'0�f c d�dy Oc��ot�'�o'Oo • CITY OF NEWPORT BEACH MINUTES w__I FYI InnA !'1tJlll Ll, 177Y ROLL CALL INDEX agreement for the parking spaces that are located on the southereasterly corner of 32nd Street and Villa Way, and the parking spaces in front of the subject site are sparsely used during the day and evening hours. Mr. Grace emphasized that every effort is being made to locate the required 8 parking spaces. In response to a question posed by Commissioner Ridgeway, Mr. Grace replied that the hostel would purchase in -lieu parking spaces if the spaces would be available to them. In response to a question posed by Commissioner Gifford, Mr. Grace explained that the month-to -month lease offered by Imperial Bank was not satisfactory inasmuch as the City requires a long -term lease. He said that Imperial Bank was not able to offer a long -term lease because the parking lot provides parking for the building that they own on Via Lido. Mr. Hewicker advised that the typical period for an off -site parking agreement is from three to five years. He said that when tenants occupy the Imperial Bank Building that the parking spaces would be required for the new tenants and the spaces would not be available to the hostel. The City has had an in -lieu parking program; however, the City Council suspended the use of that type of parking arrangement approximately five years ago because they found it was ineffective. Staff is of the opinion that the hostel should provide a minimum number of parking spaces. In response to questions posed by Commissioner Ridgeway, Mr. Grace replied that he could not specifically state the hours of the day when the parking spaces would be needed by the hostel guests. Commissioner Ridgeway and Mr. Grace discussed the policy of many hostels throughout Europe that the facilities are only open to guests during the evening and nighttime hours; however, that policy is gradually changing. Mr. Grace stated that the hunk beds have locked drawers to store the guests' possessions, and if there would be limited access to the hostel, the guests would not be able to retrieve their belongings during the day. Mr. Grace stated that if parking spaces are required, they need to be provided to the hostel on a 24 hour basis. -23- COMMISSIONERS �p� alppl.��pd�dr • CITY OF NEWPORT BEACH MINUTES April 21, 1994 ROLL CALL MEX Commissioner Pomeroy addressed the aforementioned survey indicating that 5 percent of the guests drove automobiles, and he asked if 2.5 parking spaces would be acceptable. Mr. Hewicker replied that he had concerns if there would be enough parking spaces for the shuttle, the manager's automobile, and a delivery or service vehicle. Mr. Hewicker pointed out that the hair salon located in the subject building could feasibly expand from one hair stylist to as many as five hair stylists. Mr. Hewicker said that there are times during the day when every parking space is being used on 32nd Street, possibly by members attending meetings in the Newport Club. Commissioner Pomeroy concluded that there is a problem of not having adequate parking on 32nd Street for the facility. Mr. Grace said that the shuttle bus could be parked at his residence on 40th Street. In response to questions by Mr. Grace regarding available parking in the area, Mr. Hewicker explained that the City does not have available parking spaces, and the City does not dictate to private property owners what they do with their own private parking spaces. Commissioner Edwards addressed the survey indicating that 5 percent of the travelers would be driving their own vehicles wherein he determined that the guests would be international travelers. Mr. Grace concurred. In response to a question posed by Commissioner Edwards, Mr. Grace replied that there is an International Identification card. Commissioner Edwards, Mr. Grace, and Commissioner Ridgeway discussed the issue of a foreign passport and /or an International student identification card that would be required to stay at the hostel which would automatically disallow transients or vagrants at the hostel. Mr. Grace agreed with staffs suggested condition stating That the hostlers shall be required to provide or possess a photo identification card and proof of permanent residence upon registration to the facility. In response to questions posed by Commissioner Glover, Mr. Grace replied that bicycles would be provided for the guests, and they would not be touring the country on bicycles. The concept of the Backpackers is that individuals take from six months to one -24- • MINUTES CITY OF NEWPORT BEACH April 21, 1994 ROLL CALL INDEX year to tour the world on an around- the -world ticket. The traveler flies from Southeast Asia and /or Australia and lands at LAX or San Francisco, and then the individual would tour the country without purchasing an automobile. Mr. Grace addressed the staff's suggested condition stating That 95 percent of the hostel visitors shall be limited to a maximum stay of 3 days. He explained that a hostel is a social and cultural exchange where a visitor can meet other travelers and interact with the community, and that would require a longer stay than 3 days. He referred to the aforementioned survey indicating that the majority of the hostels do not limit the length of stay. Mr. Grace and Chairman Merrill discussed the extended length of stay that the visitors are allowed in the Huntington Beach Hostel. Mr. Grace stated that the subject hostel would implement a 28 day limit on their guests; however, the majority of the visitors would stay at the hostel from one to two weeks. He pointed out that • over a period of a few weeks, the backpacker would spend approximately $40 to $50 a day in the community. American Youth Hostels recommends that the length of stay be limited to 5 to 7 days in the popular destination areas to enable the facilities to provide rooms for the members that want to stay at a popular hostel. In response to a question posed by Commissioner Gifford, Mr. Grace replied that the hostel would provide scheduled tours for their visitors. He explained that there are various adventure packages that the visitor could select, and each package would be for a specific number of days. Mr. Grace stated that all of the adventure packages would total a maximum of 15 days. Mr. Philip Boston, co- applicant, 118 -40tb Street, appeared before the Planning Commission. Mr. Grace referred to staffs suggested condition stating That the sleeping rooms shall be closed to hostlers between the hours of 9.00 am. and 4.00 p.m. 7 days a week The restriction would be a major frustration to travelers. He emphasized that it is important • -25- COADUSSTONERs a CITY OF NEWPORT BEACH MINUTES April 21, 1994 ROLL CALL INDEX that the visitors be able to interact with each other, and that they should be allowed to sleep any time of day or night. In reference to Condition No. 7, Exhibit "A ", Mr. Grace concurred with the 10:30 p.m. noise curfew. He pointed out that the building is a concrete structure and there are no windows in the congregational area of the building. He stated that the windows are located in the bedrooms and to request that the windows be closed after 10:30 p.m. would reduce the air flow into the building. The manager would quiet individuals that would be making noise out of consideration of the other guests. In response to a question posed by Commissioner Ridgeway regarding the Unruh Act and identification, Robin Flory, Assistant City Attorney, stated that the Unruh Act applies to businesses and she questioned if it would be appropriate for the City to place a condition that would encourage violation of the Unruh Act. The Unruh Act restricts discrimination based upon various issues, including national origin, and when she reviewed the Unruh Act there was nothing specific that stated that citizenship is not the same as national origin. Discussion followed concerning if the cities in California that have hostels comply with the Unruh Act. Mr. Grace stated that be would not object if a condition would be added requiring a photo identification card. In response to a question posed by Commissioner Edwards regarding the membership requirements of American Youth Hostels, Inc, Mr. Boston explained that in Australia the members are required to have a drivers license from the country of origin, the passport number, and a membership fee and photograph. Commissioner Edwards pointed out that Santa Barbara placed a condition on the permit stating that the membership requirement of the American Youth Hostel shall be in full force and affect, to include a photo identification card and proof of residence. Mr. Boston responded that is what the subject facility intends to do. In response to a question posed by Commissioner Edwards, Ms. Flory replied that there is not a clear interpretation of the Unruh Act along these lines, and that the hostel could be found to violate • -26- �a CITY OF NEWPORT BEACH uli► f��?.` April 21, 1994 ROLL CALL INDEX the Unruh Act. She did not know what affect this would have on the City. Mr. Boston stated that hostels are a specialized type of facility designed for a specialized form of traveler, and it is not a form of segregation. Hostels would not appeal to anyone but a foreign traveler. In response to a question posed by Mr. Hewicker, Mr. Boston stated that hostels are for foreign students and travelers and the purpose is to provide foreign students the opportunity to travel in America. Mr. Grace stated that he would not object if an American student wanted to stay in the hostel if they would be presentable, and they had a permanent residence. Commissioner Ridgeway stated that he had a fear that inland youth would want to stay in the hostel because it is an inexpensive facility. He said that if there is not a condition requiring an identification, it is quite possible that runaways would end up at the hostel. Mr. Grace stated that the hostel in Venice Beach requires a foreign passport before they are accepted and they do . not accept Americans. Mr. Boston stated that the revenue that the use would bring the City would be $567,000 per year based upon statistical information from the Backpackers. The breakdown of the money that the visitors spend per day is $67 or $24 Australian per day. The cost of the accommodations is the smallest amount of money that the visitors spend, and the most money is spent on food, tours, and transportation. The Planning Commission recessed at 9:30 p.m. and reconvened at 9:40 p.m. Mr. Sid Sofer, 900 Arbor Street, Costa Mesa, appeared before the Planning Commission in response to the foregoing testimony and conditions in Exhibit "A". Mr. Sofer questioned if the residents would keep their windows and doors closed so as not to disturb the hostel visitors; that hotel guests are allowed to have alcohol in their rooms; the streets are for the public and "first come first serve'; 1:00 p.m. Pacific Time is 6:00 a.m. in Japan and a visitor coming from Japan may be experiencing 'jet lag' and they may want to sleep as soon as they arrive at their destination; and he • -27- 1+01- � 0Q1% o CITY OF NEWPORT BEACH MINUTES April 21, 1494 ROLL CALL INDEX questioned if runaways would want to use the hostel as opposed to renting a cheap motel room in the area. In response to a question posed by Commissioner Ridgeway, Mr. Sofer replied that he is not for or against the project; however, he is against some of the restrictions in the conditions. Mr. Thomas Key, (address unknown) attorney, representing Dan Hilton, 425 31st Street and Mr. Guy Miner, property owner in Cannery Village, appeared before the Planning Commission. They object to the location of the hostel inasmuch as it is adjacent to a residential area, and the hostels located in Santa Monica and Santa Barbara are located in commercial areas. In response to questions posed by Commissioner Edwards, Mr. Dan Hilton replied that numerous commercial businesses have been located in the subject building over the past few years. He said that the building would be better suited for attorneys, builders, and architects. Mr. Key pointed out that the requested use is for vacationers and individuals who want to have a good time and the residents object to the use in their residential area. Mr. Hilton referred to an exhibit that be brought to the Planning Commission displaying the parking in the alley at the rear of the building. He explained that the narrow alley makes it difficult for the automobiles to back up and turn without using his driveway, and he opposed individuals using his parking area to turn around. Mr. Hilton opined that the visitors would bring their friends back to the building and it would cause traffic congestion; that three toilets would have to accommodate 51 people in the building; that the Backpackers would not spend $50 a day in Newport Beach because they would be taking the adventure tours out of the area; that the visitors would stay up past 10:30 p.m. visiting with travelers from around the world; and it would be impossible to enforce the parking and to provide the required parking. Mrs. Jackie Heather, 1500 Dorothy Lane, appeared before the Planning Commission in support of the concept of the youth hostel. She stated that the Cannery Village Specific Area Plan •-28- MINUTES CITY OF NEWPORT BEACH April 21 1994 ROLL CALL INDEX was originally planned to provide parking for the mixed uses in the area. She asked if money would be available from low income housing or Community Block Grant Funds. Mr. Hewicker explained that CDBG funds are used by chanty organizations, and there is no money available for uses of this type. Mrs. Heather stated that her sons have taken advantage and benefitted from youth hostels around the world. The visitors may not spend money locally when they first come to the area; however, they will return in the future to spend money and in the long run it would be a benefit to the City. She said that Cannery Village is losing its viability and ambiance, and the excitement that should make the area an enjoyable experience. In response to a question posed by Commissioner Edwards, Mrs. Heather stated that the youth hostel would be a future investment in the City. Mr. Thomas Dixon, 428 - 31st Street, appeared before the Planning Commission to oppose the hostel. He stated that the proposed use would help to destroy the ambiance of Cannery Village; people would be congregating in the area; the area would become congested; and there would be parking and noise problems. In response to a question posed by Commissioner Edwards, Mr. Dixon suggested a use in the proposed site that would not have 50 people in the building, and a.use that would not create parking problems. Mr. Dixon stated that office or light retail would be the best uses for the area. In response to a question posed by Commissioner Pomeroy, Mr. Dixon replied that he would object to the use, even if the applicant came back to the Planning Commission with an off -site parking agreement and they would meet all of the staff s recommendations. Mr. Dixon stated that there would be the potential of noise and disruption in the neighborhood. • -29- • CITY OF NEWPORT BEACH MINUTES April 21, 1994 ROLL CALL INDEX Mr. Ed Vanden Bossche, 121 - 40th Street, appeared before the Planning Commission to oppose the proposed use. He questioned if the proposed use could be defined the same as hotels, motels, and bed and breakfasts, and he cited numerous reasons why the application should be denied. He stated that he lives across the street from 118 - 40th Street and it would appear from his observation that the premises was being used as a hostel; however, there have been no recent problems on the site. He objected to the suggestion that the shuttle bus could be parked on 40th Street as previously stated by the applicant. Mr. Vanden Bossche played back a recording of the activity that was occurring at 12:00 midnight at 118 - 40th Street. In response to a question posed by Commissioner Edwards, Mr. Vanden Bossche described the party that was being recorded. In response to a question posed by Commissioner Gifford, Mr. Vanden Bossche stated that the flyer that is printed in the staff report advertising the Newport Beach Backpacker's Inn, located at 118 - 40th Street, is the operation that he was addressing. Mr. Roy Jackson, property owner of 510 - 31st Street and 420 - 31st Street, appeared before the Planning Commission. Mr. Jackson stated that the applicants came to see him regarding the proposed use, and they discussed the use of the hostel by the foreign travelers. He said that he wanted to be assured that the occupants would be foreign students, and not American college students who would be taking a break from college. Mr. Jackson objected to individuals using the facility who would come to the beach and stay in the hostel where it would be inexpensive. He questioned if the building would be appropriate to use as a hostel, and who would the participants be to upgrade the structure. Mr. Jackson questioned the petition that the applicants submitted in support of the hostel, and he pointed out that the applicants did not approach the adjacent residents with the petition. Mr. Charles Russell, 432 -1/2 32nd Street, appeared before the Planning Commission. Mr. Russell opposed the letter that was distributed to the community by the applicants stating that they • -30- MINUTES CITY OF NEWPORT BEACH April 21, 1994 ROLL CALL INDEX would not accept California surfers, surf -board types, or youth inasmuch as they would be providing a service for foreign, not local youth. He said that the applicants would be discriminating against the local youth. Mr. Russell stated that the building was constructed for offices. Mr. Douglas Boyd, 428 - 32nd Street, appeared before the Planning Commission. Mr. Boyd addressed the letter that Balboa - Newport Realty submitted to the Planning Commission prior to the meeting, and signed by Joan Corroll and Jeffrey Jacobs. He stated that during the evenings and on Fridays the area has problems with the Newport Club, and if the Realty facility has early morning or late evening appointments, 32nd Street is full. He addressed his concern that the back of his lot may have to be chained. The European Hostels are successful because they have excellent public transportation. He said that it is feasible for European students to rent affordable housing in the area, and they could rent an affordable car. Mr. Dennis Maynard, 122 - 40th Street, appeared before the Planning Commission. He said that 118 - 40th Street has been an illegal hostel for the past 1 -1/2 years, and he addressed the disturbances that the neighbors have encountered because of the activities at that address. He stated that he contacted the Police Department numerous times regarding the noise, but his calls have never discouraged the occupants. He indicated that during the past two months there have been no disturbances. Mr. Guy Miner, 365 Via Lido Soud, appeared before the Planning Commission as the property owner of the building adjacent to the subject site. Mr. Miner stated that he visited the Huntington Beach Hostel for five hours, and be contacted their adjacent neighbors. He stated that at 11:00 am. there were people sleeping, the doors were locked, sleeping bags were hanging out the window, and the adjacent neighbor commented that she has contacted the Police complaining about the noise. He said that when he visited the facility at 3:00 a.m., three men were standing in front of the building talking very loud. Mr. Miner expressed his • -31- • 4 COMMISSIONERS MOO CITY OF NEWPORT BEACH MINUTES April 21, 1994 ROLL CALL INDEX concern that the visitors of the subject hostel would be congregating on the street and on the sidewalk which would block the traffic, and he stated that there is a depletion of parking because of the Newport Club. He stated that three toilets and eight showers exist in the building. Mr. Arthur Pease, 410 - 32nd Street, appeared before the Planning Commission to express his opposition of the proposed hostel. He read his letter dated April 21, 1994, to the Planning Commission to express his concern that the proposed use would have a further negative impact on the neighborhood. In response to a question posed by Commissioner Gifford, Mr. Pease replied that the Newport Club also has a negative impact on the community. Ms. Evelyn Johnson, 410 - 32nd Street, appeared before the Planning Commission to oppose the proposed use, and she concurred with the previous comments. Ms. Johnson pointed out ' that the subject hostel would be located across the street from the Fire Department, and the emergency equipment comes and goes all night, and is very noisy. Mr. Brett Smith, 215 East Madison Drive, Montecito, appeared before the Planning Commission. Mr. Smith stated that he has owned and operated the Santa Barbara International Backpackers Hostel for approximately one year, and the hostel works in conjunction with the City and the Chamber of Commerce. He stated that be was approached by the applicants to assist with a proposal to apply for a hostel in Newport Beach. Mr. Smith stated that only three parking spaces were available at the Santa Barbara Hostel; therefore, the parking was waived. He explained that there are 60 beds at the hostel and the three parking spaces have been adequate. He stated that the majority of the visitors travel by Amtrak, or by bus. The shuttle service that operates on a daily basis from San Francisco to San Diego stops at 11 different hostels up and down the coast. The hostel requires an International Passport, an America Youth Hostel Card, or a Student Card, and there have been no problems with transients. The hostel has a 28 day maximum stay, no alcohol or drugs are allowed, and laundry -32- • 4 MINUTES CITY OF NEWPORT BEACH April 21 1994 ROLL CALL INDEX facilities are provided on the site. Mr. Smith concluded that it was very difficult to locate an affordable building in Newport Beach that was zoned for hotel use, and the building that was selected would be workable. He indicated that the Santa Barbara Hostel paid $14,400 in transient occupancy tax in 1993, and in 1994 they expect to double their occupancy which would double the occupancy tax to the City. He addressed the money that the travelers spends in the City over a period of time. In response to a question posed by Commissioner Gifford regarding the aforementioned Student Card, Mr. Smith replied that it is left to the discretion of the desk staff if the person would be allowed to stay inasmuch as management has the right to refuse . entry. The hostel does not turn away Americans if they would fit in with the clientele they are trying to attract. In response to questions posed by Commissioner Pomeroy, Mr. Smith explained that the night manager closes the common room at 12:00 midnight and if there is noise after midnight the manager quiets the guests. He said that it has rarely occurred, but if a guest does not comply with the request then the guest is asked to leave the following day. Mr. Smith pointed out that hostels are new in the United States but in Europe and Australia hostels are very popular. He hoped to dissuade any fears that the people may have wherein he indicated that Santa Barbara had many of the same concerns; however, they have never had any complaints from their neighbors and, in fact, the neighbors have .enjoyed the International visitors. Mr. Smith pointed out that the City of Santa Barbara wanted a youth hostel inasmuch as it would be good for the City. Mr. Smith stated that the applicants have not operated a hostel at 118 - 40th Street; however, friends have stayed with them overnight. He had never seen the aforementioned flyer advertising the hostel at 118 - 40th Street. In response to questions posed by Commissioner Edwards, Mr. Smith replied that the Santa Barbara Hostel is located on State Street, and there are residents in the vicinity. The residents are not as close as they would be at the proposed site; however, the 33 i CITY OF NEWPORT BEACH MINUTES April 21 1994 ROLL CALL INDEX Huntington Beach Hostel is located in the middle of a residential area. Mr. Smith commented that the Manager of the Huntington Beach Hostel manages the facility very well, and he was surprised with the previous testimony concerning the establishment. He identified the aforementioned Student Card as the International Student Identification Card. Mr. Stephen Wood, 20472 Santa Ana Avenue, appeared before the Planning Commission in support of the proposed use. He distributed information to the Planning Commission pertaining to his company, Nu -Kanu West and Good Times. He described the numerous activities and programs that the visitors would participate in during their stay in Newport Beach, and he emphasized that the activities would show a positive side of California. Ms. Kito Kakura, Cypress, appeared before the Planning Commission on behalf of the company that manages the subject building. She addressed the number of tenants that have recently moved from the building, and she expressed her concern about locating future tenants based on the residents' complaints regarding parking. She further stated that the property owner who resides in Japan is willing to make some improvements to the building, and that she would be willing to meet with the neighbors and the City on a regular basis if they would approve the hostel. Ms. Janelle Tesone, owner of Second Time Around on 32nd Street, appeared before the Planning Commission in support of the subject use. She described the positive experience she had when she stayed in European hostels. In response to questions posed by Commissioner Ridgeway, Ms. Tesone said that she was required to show her passport to stay in the hostels, and the facility was closed between 3:00 p.m. and 5:00 p.m. so as to clean the premises. Mr. Bob Dakota, 118 - 40th Street, a consultant for the applicants, appeared before the Planning Commission. He said that he has been a resident on 40th Street since February 4, 1994, and • -34- • CITY OF NEWPORT BEACH MINUTES April 21, 1994 ROLL CALL rNDEX previous to that time he was traveling in Europe. Mr. Dakota stated that the aforementioned flyer was a dummy advertisement, and the applicants never circulated or printed the flyer, and he was certain that no other flyers exist. He explained that the individual who printed the flyer must have wanted the applicants to participate in an advertising program with the hostel. Mr. Dakota stated that he developed an organization called World Views Travelers International, a newsletter for international travelers around the world. In response to questions posed by Commissioner Pomeroy, Mr. Dakota explained that he was not aware of any numbers on the bunk beds as stated by one of the neighbors. He said that he was a resident of 118 - 40th Street from March, 1992, to August, 1993, and his brother was a resident after August, 1993. In response to questions posed by Commissioner Glover, Mr. Dakota explained that he was involved with World Views Travelers International, and Andrew Grace and Philip Boston are the principal parties involved with the subject hostel. He said that he has acted as a consultant for the proposed youth hostel, and as an American it would be more appropriate for him to act as a mediator for the applicants. In response to a question posed by Commissioner Ridgeway, Mr. Dakota replied that there are no bunk beds in the three bedroom house located at 118 - 40th Street. Mr. Dakota explained that several of the adjoining residences in the neighborhood could also be involved in late night parties. There being no others desiring to appear and be heard, the public hearing was closed at this time. Commissioner DiSano commended the applicants with respect to their presentations. He stated that his concerns are that the visitors would have to show that they came from a foreign country and if that could not be conditioned he would he concerned; the parking demand would probably be between 5 percent and 23 percent -35- MINUTES CITY OF NEWPORT BEACH April 21, 1994 ROLL CALL INDEX because an automobile is a vital part of Southern California; the hostel would be inappropriate in the subject building and he suggested that the Fun Zone area may be a location for a hostel; and he questioned if the visitors would spend the aforementioned $567,000 in the City inasmuch as the activities that were previously described would take the travelers out of the City. Commissioner Glover commended Mr. Grace with respect to his presentation. She addressed the Newport Club located on 32nd Street, and she had a concern that 32nd Street could not take another destination point. She supports a youth hostel in Newport Beach, and if the subject application is not approved, she suggested that the applicants consider other areas of the City. Commissioner Glover commented that she would like to know more about the hostels located in Santa Barbara and Santa Monica - The use could be an asset to the City; however, she . questioned how much money would actually be spent in the City. Commissioner Edwards stated that he was not convinced that the automobile is a necessity for a hostel, even in Southern California. He expressed a concern regarding the International qualification. He suggested that the applicants reconsider the parking, and he requested that the City Attorney's Office contact the City Attorney in Santa Barbara to review the International condition. He suggested that the applicants consider the non - profit status. Ms. Flory explained that it would be difficult to enforce the Unruh Act. Discussion ensued between Commissioner Edwards and Ms. Flory regarding the City's ability to enforce the condition. Commissioner Gifford addressed the residents' concerns. She supported the concept of a youth hostel in Cannery Village. She stated that American students have many options of travel in the United States, and she wanted to be assured that foreign students would be the only visitors in the hostel. There is a strong . possibility that the visitors would rent an automobile and parking is an important issue. The subject building is going to sit vacant and if there could be a viable business in the building that would -36- a CITY OF NEWPORT BEACH MINUTES April 21, 1994 ROLL CALL INDEX not be disruptive to the adjacent residential uses, then that would be beneficial for everyone. Commissioner Gifford suggested that the item be continued so as to get a clarification of what restrictions might be permissible with regard to Title 7 and the Unruh Act, and if citizenship would be a problem, then an idea would be to provide some type of airline ticket. She further requested a solution to the parking issue. Commissioner Pomeroy supported the concept of backpacking, and hostels because the visitors would return to the City. He expressed his concerns regarding the subject location without a restriction regarding International students with International Student Cards or Passports, and he could not support it unless the parking issue were resolved. He suggested a continuance of the use permit so as to address the Planning Commission's concerns. ion Motion was made and voted on to continue Use Permit No. 3527 S * * * * * * to the Planning Commission meeting of May 19, 1994, to obtain * additional information with regard to an off -site parking agreement and for further clarification regarding the Unruh Act, and the regulation of the International traveler. MOTION CARRIED. -37- �i'1mM- 1`�p'Pd�0 CITY OF NEWPORT BEACH MINUTES the establishment of Bacchus, a restaurant /nightclub facility with on -sale alcoholic beverages, two separate dance floors, five entertainment, pre- recorded music, the installation of eight billiard tables, and the use of tandem and valet parking spaces. LOCATION: A portion of Lot 2, Tract No. 1117, located at 3505 Via Oporto, on the southeasterly comer of Central Avenue and Via Oporto, in Lido Marina Village. ZONE: RSC -H APPLICANT: Bacchus, Santa Ana OWNER: Lido Marina Village, Newport Beach James Hewicker, Planning Director, addressed the Planning Commission meeting of March 24, 1994, the Police Report from the Police Department that was attributed to Bacchus, and the rebuttal received from Bacchus. Subsequently, the Police Department submitted a second report and Bacchus sent a rebuttal to the Police report. He referenced a letter from the Department of Alcoholic Beverage Control dated April 20, 1994, regarding violations of conditions that were originally imposed by the Alcoholic Beverage Control. Mr. Hewicker said that a problem that is occurring in Lido Marina Village is that a business is operating on the basis of valet parking because of the tandem parking spaces, and the only way that the . business can operate as approved by the Planning Commission is by the valet parking because of the size of the operation. The Police Department has indicated that the valet parking needs to • -38- April 21, 1994 ROLL CALL I INDEX Use Permit No 1956 (Amended) (Public Hearing) I Item NoA Request to consider the revocation of Use Permit No. 1956 U UP1956A Recommend Revocatio . (Amended), for failure to comply with specific conditions of approval, or to consider adding or modifying conditions of R COMMISSIONERS 0 l�` P� CITY OF NEWPORT BEACH MINUTES April 21, 1994 ROLL CALL INDEX be eliminated; however, if valet parking is eliminated then there would have to be a concurrent reduction of the "net public area" of the facility in order to bring about a simultaneous reduction of parking. There are two large restaurant facilities within Lido Marina Village, ie. Bacchus and The Warehouse Restaurant and they both use valet parking. There have been conflicts between the two restaurants when both restaurants are closing. In response to a question posed by Chairman Merrill, Robin Flory, Assistant City Attorney, explained that to recommend the revocation of a use permit the Planning Commission has to have findings that constitute either failure to comply with the conditions of the use permit or compelling public necessity. Generally, compelling public necessity would be that the operation of the business constitutes a public nuisance. After reviewing the findings it would be necessary for the Planning Commission to determine if there would be substantial evidence to support the findings. In response to a question posed by Commissioner Glover, Ms. Flory explained that one suggested addition to the findings in Exhibit "A ", Findings for Revocation of Use Permit No. 1956 (Amended) would be that there is a compelling public necessity to revoke the use permit and the business is operating as a public nuisance. The public hearing was opened at this time, and Bob McDonell, Police Chief for Newport Beach, appeared before the Planning Commission. He said that since the Planning Commission meeting of March 24, 1994, there has been some improvement in the situation with Bacchus; however, the Police Department sees it as a short-term improvement as a result of the intense scrutiny that the business has been under and the recent opening of the Empire Ballroom in Costa Mesa which has taken away some of their business on a temporary basis. The Police Department has experienced an additional 13 calls for service since the March 24, 1994, Planning Commission meeting which brings a total of 61 calls for service since the establishment opened last year. Included in the 13 calls were 3 calls of complaints for loud music; 3 on -site • -39- 4 910 a CITY OF NEWPORT BEACH MINUTES April 21, 1994 ROLL CALL INDEX notifications of excessive noise in one night by one of the staff members; 7 individuals who were booked for drunk in public, drugs, and /or drank driving and who had been drinking at Bacchus just prior to the incident. Chief McDonell said that there is no compelling reason for the Police Department to change their recommendation for revocation in light of what has occurred in the brief period from Match 24, 1994, to date. He said that based on the Police Departments experience with the Bacchus organization, there is no reason to be confident that there will be any sustained changes in the character of the business or responsible management which must be exercised in order to control the business. He said that many of the same people that are currently involved with the establishment were involved several months ago; however, now the stakes are much higher. Chief McDonell addressed the handbills that were distributed to "Friends of Bacchus" encouraging them to come to the Planning Commission meeting to pledge their support and in return those attending would be given a complimentary invitation to the Grand Opening of Indigo Productions at Bacchus this date. He opined that suggesting that someone should be compensated to come to the Planning Commission to speak against the revocation and what was described as unfair politics does not appear to be a responsible management approach. In a recent meeting with the principal investor, Mr. Gordon MacDonald informed the police that the handbill was the result of an unauthorized action of one of their employees who was later identified by staff as one of the investors. He said that the foregoing is an example of what the police consider a lack of management control. Mr. MacDonald is sincere in his desire to run a respectable operation; however, there are no convincing facts that those goals exist within the organization. Chief McDonell stated that the aforementioned letter from the Department of Alcoholic Beverage Control was requested by Bacchus to outline the actions pending against them. He referenced a paragraph in the letter that a letter was mailed on March 18,1994, to Bacchus advising that ABC received complaints •-40- COMMISSIONERS MINUTES CITY OF NEWPORT BEACH A. Al ')1 10Qd - ROLL CALL INDEX from the Newport Beach Police Department regarding an inordinate number of calls for service, and that this activity constitutes a nuisance. Bacchus was advised to correct the conditions or ABC would file disciplinary action against the license for violation of Section 2400(e) of the Business and Professions Code. In response to questions posed by Commissioner Edwards, Chief McDonell discussed the time and resources that were drained off of the Police Department to patrol the area. Chief McDonell explained that Bacchus has not denied many of the events that occurred at their establishment, they have apologized for the actions, and they stated there would be improvements; however, there has not been the follow - through and he questioned if there is the organizational capacity for that follow - through. Commissioner DiSano and Chief McDonell discussed Mr. Gordon . MacDonald's ability to control the establishment. In response to questions posed by Commissioner Glover, Chief McDonell stated that the Police Department "crossed the line" when the business demanded policing because of the actions of the organization, and these actions were draining the resources of the Police Department. He said that the police exhausted all of the remedies that they could to resolve the problems before the issue came back to the Planning Commission. He emphasized that problems could continue to occur through the summer months when the Police Department's peak workload goes up significantly. In response to questions posed by Commissioner Pomeroy, Chief McDonell discussed the necessity that is required to properly manage an establishment to control the clientele. He said that the impacts on multiple nightclubs in the Via Lido area are too intensive of uses, and he expressed concerns on the cumulative impact. In response to questions posed by Commissioner Ridgeway, Chief McDonell replied that the aforementioned 13 calls were all related • -41- MINUTES CITY OF NEWPORT BEACH April 21, 1994 ROLL CALL INDEX to Bacchus, and 12 calls were misdemeanor and 1 call was a felony drunk arrest. Mr. Hugh Coffin, 2122 North Broadway, Santa Ana, Attorney representing Bacchus, appeared before the Planning Commission. The current management of Bacchus recognizes there have been problems in the past. He stated that the two men who were involved and managed the establishment when it was opened lied to the investors, police, and ABC, and it came to light after receivership that they were responsible for substantial thefts of dollars from the restaurant. The current management is restructuring the establishment to where it should have been initially. The structure as it exists today is a limited partnership. The limited partnership has a general partner which is a corporation called Bacchus, Inc. Mr. Coffin stated that the letter from the Corporate Attorney, Philip Burkhart, San Diego County, dated April 21, 1994, addresses the structure of the Corporation. Mr. Gordon MacDonald has invested up to $250,000 in the venture. Mr. MacDonald, as a limited partner, became concerned about the aforementioned theft and he retained counsel, a lawsuit was filed in January, 1994, and had a receiver placed into the premises on or about February 3, 1994. The receiver operated the facility until March 7, 1994, when the receiver was replaced by the current management. At that time new management was put into place and an amendment to the partnership agreement was developed to give Mr. MacDonald substantially more control. The new management is committed to make the changes that are necessary to have Bacchus be an asset to the community. Mr. MacDonald has veto rights, a provision under the California Corporations Code, that gives some significant control to the limited partner. Larry MacDonald, Gordon MacDonald's son, is the Chief Financial Officer, Rob Mitchell is the Manager, and John Goseco is acting as the manager of the on -site hands -on manager of the restaurant and its operation. Mr. Mitchell is an investor in Bacchus and a limited partner; however, he had no responsibility with respect to the operation of Bacchus until March, 1994, when he was appointed manager of the facility. r-42- COMMISSIONERS �y�o�tNP'Pp�o CITY OF NEWPORT BEACH MINUTES April 21, 1994 ROLL CALL INDEX Mr. Coffin emphasized that there is a commitment by the new management to change the facility, to operate it properly, to operate it within the confines of the use permit conditions that were imposed by Planning Commission on May 20, 1993. The management has had only six weeks to make any change, and the evidence will demonstrate that they have made substantial changes on the intent to make substantial additional changes. He emphasized that having a receiver in place is very expensive, and besides dealing with City matters, the management had to deal with the internal affairs of the business. Mr. Coffin discussed the following issues that have been addressed by the new management since March 8, 1994: A substantial number of in -site security has been added to the minimum number that is required by ABC and badges and shirts are provided to security. Management retained Nimmo Security which is an outside service organization that has been providing services within Lido Marina Village. Inside and outside security have radios that are on the same frequency so they are able to communicate with each other and through those efforts there has been a substantial reduction in the problems. Management would prefer to maintain valet parking so as to maintain the standards that were adopted by the Planning Commission. A new valet pick -up was selected on the Central Avenue side of the building, which permits two runs out, and that reduced the pick -up time of automobiles substantially. A new focus is occurring to attract organization and corporate social events. John Goseco, the restaurant operator and manager, has substantial experience as a restaurant operator. Mr. Coffin presented the Planning Commission with a copy of Mr. Goseco's resume. The Planning Commission requested that representatives of Bacchus address the Police Department's accusations, and not to place emphasis on what the establishment would be doing in the future. Discussion ensued between the Planning Commission and Mr. Coffin regarding the procedure and issues to be addressed to the satisfaction of the Planning Commission and Bacchus. 43- 0 �11FQN \moo CITY OF NEWPORT BEACH MINUTES April 21, 1994 ROLL CALL INDEX Mr. Gordon MacDonald, 5450 El Camino del Norte, Rancho Santa Fe, appeared before the Planning Commission. Mr. MacDonald stated it is imperative to have good people to manage an operation to make the business successful. Larry MacDonald, his son, and Rob Mitchell manage the business on a daily basis, and he supported the work that they have been doing for the establishment during the past six weeks. In response to questions posed by Commissioner Edwards, Mr. MacDonald stated that the restaurant would be hiring additional good people in the future. He said that the fundamental things that the police have said are absolutely correct. The building is being renovated to reduce the noise, and if that is not successful they will bring in an acoustical engineer. Mr. MacDonald addressed the success of the existing valet parking plan. Mr. Rob Mitchell, 408 Belvue Lane, appeared before the Planning . Commission as the Managing Partner of Bacchus. He stated that the existing management has taken the following action since March 8, 1994. Security has been doubled inside and outside the facility; the drug and alcohol program as an educational tool for the employees has been implemented; they are working with the valet system and the landlord; a new General Manager has been hired to operate inside the club; two outside people have been hired to work with corporate promotions; the doors have been caulked and cages have been installed on top of the noise control so the DJ's will not turn up the music and two of the base speakers have been eliminated. Mr. Mitchell discussed the extensive hours that management is putting in on a daily basis to operate the nightclub facility. Mr. Mitchell requested a continuance to allow the management additional time to proceed with the job that they are currently doing. Mr. Ken Corbin, sworn peace officer of the State of California and security consultant for Bacchus since the establishment opened, appeared before the Planning Commission. He said that previous management did not respond to the security points that he made during their management; however, the new management responds -44- COMMISSIONERS MINUTES CITY OF NEWPORT BEACH ♦ -_], n, lAnA 111 L11 A77� ROLL CALL INDEX favorably to his recommendations. He said that the following steps are currently in place at Bacchus and are working effectively. Bacchus employs 12 to 14 internal personnel compared to the 7 or 8 that are required by ABC based on Bacchus' current capacity rate. In addition, there are from 5 to 8 external personnel provided by Nimmo Security Service. Bacchus has completed an alcohol and drug awareness training program and they enforce the zero tolerance program. They are currently undergoing a joint training with the external and internal security to provide for a cohesive and rather large security force, thus avoiding a drain on the Police Department's resources. The security personnel wear polo shirts that are coded with "Security" rather than the badges that were continually lost. Patrons are ushered out of Bacchus through exits in the parking structure which are patrolled by bicycle security. This procedure reduces the traffic and, therefore, there has been a reduction in the number of problems outside the facility. In response to questions posed by Commissioner Gifford regarding the number of calls that the Police Department has responded to since March 8, 1994, Mr. Corbin replied that after reviewing the police activity at Bacchus, it would be necessary to ask the officials the source of information, i.e. how many are citations and how many are advisory. He opined that there appears to be an "overboard" response in some of the arrests and citations, but it does keep the peace. The Newport Beach Police are patrolling the area so there is more of a response, i.e. the police are seeing something occur rather than being called to the scene. In response to questions posed by Commissioner Ridgeway, Mr. Corbin replied that he is a sworn reserve police officer and he works Thursday, Friday, and Saturday evenings for Bacchus. He said that be is responsible for the security personnel that is hired and their training. In response to questions posed by Commissioner DiSano, Mr. Corbin replied that he gave suggestions to the previous -45- clo�`�dWI%\0 � f o� �� ' p • CITY OF NEWPORT BEACH MINUTES April 21, 1994 ROLL CALL INDEX management, and he currently makes suggestions to Gordon and Larry MacDonald. In response to questions posed by Chairman Merrill, Mr. Corbin replied that he has worked for Bacchus since it opened and he worked the operational hours from 8:00 p.m. to 2:00 am. Commissioner Ridgeway asked Mr. Corbin if he was one of the employees who did not allow the police into the private club. Mr. Corbin replied to the negative and he further explained that he requires an individual to identify themselves with visible identification. Mr. Corbin stated that the police show up in uniform and undercover. Commissioner Ridgeway asked if there was an occasion to request identification and actually see an identification from a police officer? Mr. Corbin stated that uniformed police officers are allowed straight through the entrance to the nightclub, and undercover officers that he does not know or cannot identify, absolutely. Individuals must be over 21 years of age to enter. He said that he has not been confronted by an undercover police officer; however, someone on his staff had been confronted by an undercover police officer. Commissioner Ridgeway asked if that someone was the person in the police report that actually refused entry of the police. Mr. Corbin affirmatively replied. He said that the first officer through the line was undercover and identified himself as a police officer, and it was pointed out that he had tennis shoes on and Bacchus has a dress code. The individual who was controlling the door asked the next person for an identification and that is when a misunderstanding occurred. He said that if the undercover officer is not recognized, there is no way to determine if the person is a citizen or a police officer. The aforementioned police officer identified himself verbally; however, because there was more than one officer the first officer did identify himself with proper credentials. Commissioner Ridgeway stated that he associated Mr. Corbin with the old management, and that he was attempting to get Mr. Corbin into the new management. Mr. Corbin replied that the prior management hired him because he had good police credentials and the new management listens to him and responds -46- eX+'\0N0\+01%P0 CITY OF NEWPORT BEACH MINUTES April 21, 1994 ROLL CALL IIVDEX to his suggestions. Commissioner Ridgeway stated that Mr. Corbin should take some responsibility for what previously happened, and since be was confronted by the Police Department as head of security, he is a co- conspirator and he helped perpetuate the problem. Commissioner Ridgeway stated that the Police Report indicates that the Newport Beach Police was denied access to inspect the private club and it was done by the security and Mr. Corbin was the head of the security. Mr. Corbin stated that he misunderstood Commissioner Ridgeway's questions inasmuch as be was addressing the entrance to the restaurant itself. He said that it is not a policy nor would it ever be to deny access by a police officer to the restaurant. The incidents that occurred with the VIP membership to individual rooms were not directly under his control. He said that he was responsible for the safety and well-being of the patrons, to make sure that the people going through the door were over 21 years of age, and people going through the back door were employees. He said that the old . management never informed him of enforcement problems concerning the issue of the private rooms. He explained that he never was asked to go to the police station to talk to them but they gave him verbal warning, and he passed the comments on to management. In response to questions posed by Commissioner Edwards regarding the verbal warnings, Mr. Corbin stated that during the initial phase, the officers were advising him of the noise complaints. He said that he -was employed on March 11, 1994, when there was a confrontation between the patrons of The Warehouse Restaurant and Bacchus, and by the time that he was contacted, the fight had been put to rest by the external security and the Newport Beach Police. He said that be initially did not know that anything was going on outside; however, the issue has been rectified because the security is using the same radio frequency inside and outside of Bacchus. In response to questions posed by Chairman Merrill with respect to the confrontation that was occurring outside of Bacchus and The Warehouse Restaurant, Mr. Corbin explained that before • -47- COMMISSIONERS • ROLL CALL • • CITY OF NEWPORT BEACH Bacchus' security was on the same frequency, inside security did not know what was going on outside. He further stated that he did not know if inside security went outside during the fight. Mr. Jeff Debonis, Sales Executive for Nimmo Security Service and Security Consultant, appeared before the Planning Commission In response to questions posed by Chairman Merrill, Mr. Debonis stated that the security service commenced service with Bacchus on March 8, 1994. He stated that after his organization met with the previous management, the company opined that Bacchus was not serious about solving their problems; however, after meeting with the new management it was the security company's opinion that Bacchus was attempting to run a serious establishment. He said that several training programs have been developed for the inside staff, including a drug and alcohol program, and the week of April 25th the organization will start a passive restrain and demeanor program for the inside staff that is conducted by sworn peace officers, and specific plans will be made between Bacchus' security and Nimmo Security in the event an incident should take place. He stated that there has been a 90 percent reduction in outside problems that were created by the previous management. He stated that the new valet program disperses the patrons within 15 minutes. In response to questions posed by Commissioner Ridgeway, Mr. Debonis stated that the security uniform consists of cloth badges on sbirts and jackets. In response to questions posed by Commissioner DiSano, Mr. Debonis replied that he takes orders from Mr. Mitchell and the head of security. Mr. Ed Shailleh, Rowland Heights, appeared before the Planning Commission as the supervisor of the valet service. He stated that the revised valet program consists of the patrons picking up their automobiles on the side of the structure, and that separates the valet patrons from the patrons who self - parked their automobiles.. K" MINUTES 1994 INDEX MINUTES CITY OF NEWPORT BEACH A4pril 21, 1994 ROLL CALL INDEX He stated that the success of the revised plan the previous weekend indicates that the valet parking problem has been solved. In response to questions posed by Commissioner Pomeroy, Mr.' Shailleh said that it is feasible that the success of the revised valet plan is that there were fewer patrons attending the nightclub, but it is also because the company doubled up the number of valets, i.e. they have 14 to 15 valets on Friday nights and 18 valets on Saturday nights. The previous valet service had 8 to 9 valets. He further stated that 189 parking spaces are located upstairs in the parking structure, and he explained that valets are located in the parking structure to speed up the deliveries. In response to questions posed by Commissioner DiSano, Mr. Shailleh replied that he takes his orders from Mr. Mitchell. In response to questions posed by Chairman Merrill, Mr. Laycock explained that Bacchus has been permitted to utilize 189 parking spaces on the upper levels of the parking structure and the only way to maintain the exclusive use of the valet and tandem parking spaces for Bacchus is to rope off the parking spaces. The Warehouse Restaurant is also permitted 175 non - exclusive parking spaces in the parking structure at night. Mr. John Goseco, Irvine, appeared before the Planning Commission. He stated that he has been General Manager of Bacchus since mid- March. He said that from 6:00 p.m. to closing he is the person in charge of Bacchus, and he emphasized that under the new management, the restaurant could work successfully. In response to a question posed by Commissioner Pomeroy, Mr. Goseco replied that he reports to Mr. Mitchell. In response to questions posed by Commissioner Ridgeway, Mr. Goseco replied that he is in charge of food services at the restaurant. Dinner is served until about 1:30 a.m. The number of dinners served to the patrons vary nightly; however, the nightclub -49- .MINUTES CITY OF NEWPORT BEACH April 21, 1994 ROLL CALL INDEX is promoting corporate functions and special events have become the bulk of the business. He said that the restaurant has not run out of food since he has been acting General Manager; however, when the restaurant was in receivership, the establishment could not get money released to pay their suppliers and the restaurant ran out of food. He said that the restaurant currently has adequate funds available to purchase the food. In response to questions posed by Commissioner Glover, Mr. Goseco replied that the first floor corporate lounge seats approximately 57 people and is available for small dinner parties, and the dining room on the second floor seats approximately 64 people. In response to questions posed by Commissioner DiSano, Mr. Goseco replied that he works well with Mr. MacDonald and Mr. Mitchell. In response to questions posed by Commissioner Gifford, Mr. Goseco explained that he is presently acting as the General Manager of Bacchus, and the position is a permanent position. He said that the operating hours are from 6:00 p.m. to 2:00 a.m. That prior to 6:00 p.m. Mr. Mitchell is in charge and after 6:00 p.m. he is in charge. In response to a question posed by Mr. Hewicker, Mr. Goseco replied that the majority of the clientele come from the local area, and the corporate parties come from throughout Orange County. Mr. Larry MacDonald, Chief Financial Officer, 754 South Coast Highway, Laguna Beach, appeared before the Planning Commission. Mr. Mitchell and Mr. MacDonald work and make decisions together during the day. Mr. MacDonald focuses the majority of his time on financial issues, and Mr. Mitchell spends his time with outside sources and the managers in the club. He said that he is in constant contact with his father, Gordon MacDonald, throughout the day. When the nightclub is open, the employees report to Mr. Goseco. • -50- COMMISSIONERS ROLL CALL • • MINUTES CITY OF NEWPORT BEACH In response to a question posed by Commissioner Edwards, Mr. MacDonald replied that he was in the nightclub on March 11, 1994, when the aforementioned incident occurred. He said that the police removed their inside patrons at approximately 1:30 a.m: The internal security were aware that the police were inside the nightclub after the confrontation occurred outside the club. Following a discussion regarding specific incidents that occurred on March 11, 1994, Mr. MacDonald emphasized that Bacchus does not have windows on the first floor and it was difficult to know what was occurring outside the structure. In response to a question posed by Commissioner Gifford, Mr. MacDonald replied that he became involved with the nightclub on March 8, 1994. In response to questions posed by Commissioner DiSano, Mr. MacDonald discussed Mr. Mitchelrs and his responsibilities. Mr. Coffin requested that the Planning Commission meeting be continued to allow Bacchus the opportunity to respond to the aforementioned Department of Alcoholic Beverage Control Report dated April 20, 1994, that was distributed to the Planning Commission prior to the subject public hearing. Mr. Sid Sofer, 400 Arbor Street, Costa Mesa, appeared before the Planning Commission. He addressed his experiences between 1960 to 1965 that he had with the Police Department and their requests to enter his restaurant undercover. He said that it is a violation to rely on a report that does not give the establishment sufficient time to respond to, and it is mandatory that the establishment be given a continuance. Ms. Donna Larson, on -site Property Manager of Lido Marina Village, appeared before the Planning Commission in support of the establishment. She stated that Bacchus is very valuable to Lido Marina Village inasmuch as they have brought in revenue and new tenants, and they have encouraged existing tenants to remain open longer to take advantage of the people that they are -51- 1994 WDEX • CITY OF NEWPORT BEACH MINUTES April 21, 1994 ROLL CALL MEX bringing in to Lido Marina Village. She said that she had problems with the previous management; however, Mr. Mitchell contacts her on a regular basis. Lido Marina Village hired Nimmo Security Service and that is cohesive to the Lido Marina Village. She addressed the success of the revised valet parking plan. Mr. Jerry Friedman, Los Angeles, Executive Vice President of Marvin Engineering, owner of Lido Marina Village, appeared before the Planning Commission to express his support of Bacchus. He said that he is actively involved with Lido Marina Village, and he was opposed to Bacchus' previous management. He requested a continuance of 90 days for the establishment to be allowed to show the effectiveness of their new management team. Chief McDonell reappeared before the Planning Commission in response to representatives of Bacchus' foregoing testimony. He stated that on Monday mornings the Police Department gives Mr. . Mitchell a weekly report with respect to their calls for service, and he pointed out that Mr. Corbin has been on the premises since the beginning. Mr. Mitchell met with the Police Department in December, 1993, to discuss the issues, and Mr. Mitchell informed ABC that there was no hidden partnership in the Bacchus organization and there was. Mr. Eric Beneker on April 3, 1994, was the only manager on duty when one of the vice intelligence officers contacted Bacchus about the loud music, and Mr. Beneker represented himself as the on -site manager and the only one on duty. The acting General Manager, Mr. Goseco, has been involved with Bacchus since mid- March. Mr. MacDonald informed the police April 20, 1994, that as of immediately, Mr. Goseco is the one that has been appointed and he is the only one the police should contact for any issues concerning Bacchus; however, during the public hearing, it was stated that Mr. Mitchell is the individual in charge, and that is one of the frustrations concerning the organization. In response to questions posed by Commissioner Pomeroy, Chief McDonell explained that the evening of March 11, 1994, there was a near -riot condition, and the police cleared the entire area as a -52- COMMISSIONERS MINUTES CITY OF NEWPORT BEACH April 21 1994 ROLL CALL INDEX result of the conflict. He said that two people were lynched from the patrol car, and one way to find the individuals was to clear out the adjoining businesses. Mr. Gordon MacDonald reappeared before the Planning Commission in response to Chief McDonell's previous comments. He said that John Goseco has been clearly identified as Bacchus' General Manager since early March. He said that he contacted Sgt. Kaminsky to inform the police that John Goseco was the person to contact and not Mr. Eric Beneker. The call was based on an incident where Mr. Beneker had assumed management responsibility and, Mr. MacDonald pointed out, Mr. Beneker is a valuable technical person for the Bacchus establishment. In response to a question posed by Chairman Merrill, Mr. MacDonald explained that Mr. Beneker is a General Partner. He does not have management responsibility, not on the payroll, and he is on staff in a technical capacity only. The organization is becoming a full corporation, and the General Partnership will become the same as an investor. Mr. Gordon MacDonald will become responsible for the corporation. In response to a question posed by Commissioner Gifford, Mr. Hugh Coffin replied that Mr. Beneker is a shareholder of Bacchus, Inc. The Corporation is the General Partner of the Limited Partnership; however, there was an amendment to the partnership agreement about March 10, 1994. Mr. Beneker ceased to be an employee or a responsible party of the limited partnership. Drew Hibbert, James Date, and Riaz Karim also do not have any responsibilities. The amendment to the limited Partnership Agreement gave to Mr. Gordon MacDonald the veto rights and effective control of the partnership. In response to questions posed by Commissioner Ridgeway, Mr. Gordon MacDonald replied that be is to control as a limited partner until Bacchus becomes a corporation, and nothing happens without his approval. The police contact Mr. Mitchell during daytime hours because John Goseco works for Mr. Rob Mitchell. • -53- • ��fo�t��O�sO CITY OF NEWPORT BEACH MINUTES April 21 1994 ROLL CALL INDEX The structure of Bacchus is Gordon MacDonald, Rob Mitchell and Larry MacDonald are equals in the organization, and John Goseco, in that order. Mr. Mitchell is in control of the day to day operation. Mr. Gordon MacDonald stated that "the buck stops with him ". There being no others desiring to appear and be heard, the public hearing was closed at this time. Motion * Motion was made to recommend the revocation of Use Permit No. 1956 (Amended) to the City Council based on the findings for revocation in Exhibit "A". Add Finding No. 9 stating "compelling public necessity is that the operation of Bacchus constitutes a public nuisance." Commissioner Glover stated that the recommendation is based on the staff report. She said that there are too many people involved in the organization. It is very much in vogue to say that Newport Beach needs money; however, it is not the case that the City would do anything for money. Not all business is good business for Newport Beach, and Bacchus is bad for the City. Bad business brings bad publicity, and hurts the financial viability of the City. The citizens need police protection, and the police are going to be constantly drawn into the Lido Marina Village area with Bacchus. There will he other areas of the City that will not be properly policed. Bacchus is not in'the best interest of the citizens of Newport Beach. Sub. Commissioner Ridgeway made a substitute motion to continue the Motion public hearing for sixty days. He said that he is a due process person, and Bacchus should have an opportunity to respond to the allegations that were submitted prior to the subject public hearing. He recommended that the use permit be continued inasmuch as there is activity occurring within the organization. Commissioner Ridgeway stated that he is not happy with the situation at Bacchus, and he would support the original motion if it were not for the presentation during the public hearing indicating what they are going to do and what they are currently doing. He believed that the organization is trying, and if there is anyone that is guilty it would be Gordon MacDonald because be may not have made the • -54- COMMISSIONERS • MINUTES CITY OF NEWPORT BEACH n...:l 71 100d INDEX ROLL CALL best choice of choosing employees. He recommended that Mr. MacDonald review some of the employees who made presentations during the public hearing, but that is Mr. MacDonald's choice. The risk is that the Planning Commission would send the recommendation of revocation to the City Council. Commissioner Edwards stated that the Planning Commission is only making the recommendation to the City Council for revocation, and Bacchus will have an opportunity to address the City Council on the issues. Bacchus has been given notice of violation and they have been given an opportunity to be heard; therefore, due process has been met. This is the typical defense that most people put on - there is never going to be a point in time - no one is responsible any further for their acts any more. Bacchus has had more than enough opportunity to correct the situation as they demonstrated with the people that appeared during the public hearing. The majority of the people are the they • same people who have been around since Bacchus opened; did not explain the chain of command to his satisfaction; the Planning Commission is putting the police at risk; the police have gone out of their way to try to clean up the situation; and on March 11, 1994, their officers were put at risk and the local community could have been at risk. In response to comments by Commissioner DiSano regarding due process, Ms. Flory explained that the decision the Planning Commission is making is based on the findings contained in Exhibit "A'. If the Planning Commission is using the aforementioned 13 incidents as evidence for support, and Bacchus has not had an opportunity to review the document, then there would potentially be a due process problem that the Planning Commission's decision was based upon evidence that Bacchus did not have notice and an opportunity for response. Commissioner Glover stated that her motion was based upon the staff report. The Planning Commission should address the issues with clarity. • -55- CITY OF NEWPORT BEACH MINUTES April 21 1994 ROLL CALL INDEX Commissioner Gifford stated that the issue of whether or not there was notice of the violations and the opportunity to respond is something that the Planning Commission would judge based on the testimony during the public hearing. She did not support the substitute motion inasmuch as it is not an issue that can continue with no serious consequences. There is the issue of police services. She pointed out that Mr. Gordon MacDonald indicated that the police were told that Mr. Goseco was the person to contact, but the Commission also heard that Mr. Goseco reported to Mr. Mitchell, and Mr. Mitchell was the person in charge. If this matter between the police and the controlling of the noise and the problems is of primary importance, then there would not be any question as to who the police should deal with. Given the situation of who controls the business, and given the conflicting testimony, this is a matter that should go forward to the City Council for further review. . Commissioner Pomeroy supported the substitute motion. The Police Chief stated that there was some improvement. Of the aforementioned 13 items, there were two based on the police report that were the proper kind of action that management should take by calling the police when a problem existed. Bacchus appears to have solved the valet parking problem to a large degree, if not completely at this stage, and by virtue of the testimony taken at the last meeting and including comments by the City, the congestion for valet parking was one of the problems with control and enforcement when the patrons came, out of the building. Security has been doubled, and the new outside security is now employed by the management company that manages the entire Lido Marina Village. Management is not done by one person - it is done by a team. It takes some time to get the team to function together to make effective change. It has been shown during the public hearing that Bacchus is in the process of doing that and the Planning Commission should give them that chance. Ayes * Substitute motion to continue Use Permit No. 1956 (Amended for _ Noes * * * * sixty days was voted on, MOTION FAILED. • -56- COMMSSIONERS a CITY OF NEWPORT BEACH MINUTES April 1, 1994 ROLL CALL INDEX Motion was made to recommend the revocation of Use Permit No. 1956 (Amended) to the City Council based on the findings for Ayes * * * * * revocation in Exhibit "A", and added Finding No. 9. MOTION Noes CARRIED. Findines: 1. That the applicant for Use Permit No. 1956 (Amended) has failed to comply with the conditions of approval as established by the Planning Commission at its meeting of May 20, 1993 with regard to noise associated with the subject facility and with regard to the valet parking operation. 2. That the use of the on -site parking structure for valet parking, as exemplified by the actual operation, has in this case, created undue traffic congestion in the surrounding . area and the number of parking spaces being provided for the subject restaurant are less than approved by the Planning Commission on May 20, 1993, due to failure on the part of the valet parking service and the property manager to gain control of the vehicles using the required tandem parking spaces for Bacchus on the upper levels of the parking structure, prior to the opening of the restaurant facility in the evening hours. 3. That soon after its opening in September, 1993, the Police Department experienced a marked increase in calls for service at or in the area of Bacchus. That the. calls for service include violations of the Newport Beach Municipal Code, the California Penal Code, the Health and Safety Code, and the Vehicle Code. 4. That the Bacchus Restaurant facility has continued to violate several conditions of its license issued by the. Alcoholic Beverage Control (A.B.C.). The conditions include that Bacchus has failed to insure that their security personnel are properly identified; their failure to admit law • -57- CITY OF NEWPORT BEACH MINUTES April 21, 1994 ROLL CALL INDEX enforcement personnel for an inspection of their premises; their failure to serve food in the restaurant /nightclub facility; and their operation of a portion of the facility as a private club. 5. That the required valet parking service for its patrons has continued to cause traffic congestion along Via Oporto and Central Avenue when Bacchus is open for business. Congestion is particularly evident when Bacchus and the adjacent The Warehouse Restaurant are closing, and patrons from both establishments are retrieving their automobiles from the Lido Marina Village Parking Structure. 6. That Condition No. 8 of the Use Permit No. 1956 (Amended) provides that: 'The live entertainment and pre- recorded music shall be limited so that the sound shall be . confined to the interior of the structure; and further that when the live entertainment is performed, all windows and doors within the restaurant shall be closed, except when entering and leaving by the main entrance of the restaurant." The sound of music from inside Bacchus continues to be heard outside the facility. The music has been so loud at times that the Police Department has received complaints from residents of the Finley Tract across Newport Boulevard from the facility. In addition, the main front door has been left open when the live entertainment and pre - recorded music have been performed. 7. That the Bacchus Restaurant facility has failed to cooperate with law enforcement and has not engaged in responsible business management for several months. 8. That the operation of the Bacchus Restaurant facility. regarding the required valet parking service and noise from the nightclub /restaurant use heard outside the facility have been detrimental to the health, safety, peace, morals, • -58- .00� c�cfnc,d�G$s CITY OF NEWPORT BEACH MINUTES ril 21 1994 ROLL CALL INDEX comfort and general welfare of persons residing and working in the neighborhood and has been detrimental or injurious to property and improvements in the neighborhood and the general welfare of the City. 9. The compelling public necessity is that the operation of Bacchus constitutes a public nuisance. Modification No. 4181 (Public Hearing) Item No.7 Request to consider an appeal of the Modifications Committee's Mod 4181 approval concerning Modification No. 4181, which involved a request to permit the construction of a 9 foot high open patio Withdrawn cover to encroach 6 feet into the required 6 foot rear yard setback and up to approximately 3 feet into the required 6 foot side yard . setback, whereas the Zoning Code limits all construction within the required rear and side yard setbacks to 6 feet in height. LOCATION: Lot 56, Tract No. 6425, located at 3815 Inlet Isle Drive, on the southwesterly side of Inlet Isle Drive, northwesterly of Sandune Lane, in Harbor View Hills. ZONE: R -1 -B APPLICANT: Odd Svendsbo, Corona del Mar APPELLANT: Diane Colvin, Corona del Mar James Hewicker, Planning Director, reported that the appellant requested that this item be withdrawn. Motion All Ayes Motion was made and voted on to withdraw the request to consider an appeal of Modification No. 4181. MOTION CARRIED. -59- u_-5—;9 CITY OF NEWPORT BEACH April 21 1994 ROLL CALL INDEX ! t ! Amendment No. 801 CPn lic Hearing) item NO. Request to consider an amendment to Title 20 of the Newport A801. Beach Municipal Code so as to allow museum use in the RSC, (81353) APF and RMC commercial zoning districts. Approved INITIATED BY: The City of Newport Beach The public hearing was opened in connection with this item. There being no one to appear before the Planning Commission, the public hearing was closed at this time. Motion Motion was made and voted on to recommend the approval of All Apes Amendment No. 801 to the City Council and adopt Resolution No. . 1353. MOTION CARRIED. ADJOURNMENT. 1:48 a.m. Adjourn ANNE K GIFFORD, SECRETARY CITY OF NEWPORT BEACH PLANNING COMMISSION -60-