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HomeMy WebLinkAboutExhibit No. 3Exhibit No. 3 March 20, 2008 Staff Report De" VLSI A►`1:4'►'I as] :iIi- I4_[e3:1 PLANNING COMMISSION STAFF REPORT March 20, 2008 Meeting Agenda Item 7 SUBJECT: Revocation of Use Permit Nos. 2001 -005 & UP2002 -034 PA2002 -167) Sejour European Bistro & Lounge 3400 Via Lido APPLICANT: City of Newport Beach CONTACT: Rosalinh Ung, Associate Planner (949) 644- 3208, rung@city.newport- beach.ca.us PROJECT SUMMARY Revocation of use permits for an off -sale alcoholic beverage outlet with accessory on- site alcohol consumption, food service and live entertainment. Staff recommends that the Planning Commission adopt Resolution No. to revoke Use Permit Nos. 2001 -005 and 2002 -034 (Exhibit_.) BACKGROUND On January 17, 2008, the Planning Commission unanimously voted to set a revocation hearing of March 20, 2008 for Use Permit Nos. 2001 -005 and 2002 -034. DISCUSSION The January 17, 2008 Planning Commission staff report (Exhibit 2) presented evidence that the terms and conditions of approval of Use Permit Nos. 2001 -005 and 2005 -034 were violated and that the establishment failed to fully comply with all the rules, regulations and orders of the California State Department of Alcoholic Beverage Control. Pursuant to Municipal Sections 20.89.060.0 and 20.96.040, the Planning Commission may revoke a use permit for an alcoholic beverage outlet upon making one or more of the findings set forth in Section 20.89.060.C: That the permit was issued on the basis of erroneous or misleading information or misrepresentation. 2. That the terms or conditions of approval of the permit have been violated or that other laws or regulations have been violated. Revocation of Use Permit Nos. 2001 -005 & 2002 -034 March 20, 2008 Page 2 3. The establishment for which the permit was issued is being operated in an illegal or disorderly manner. 4. Noise from the establishment for which the permit was issued violates the Community Noise Control Ordinance (Chapter 10.26 of the Municipal Code). 5. The business or establishment for which the permit was issued has had or is having an adverse impact on the health, safety or welfare of the neighborhood or the general public. 6. There is a violation of or failure to maintain a valid ABC license. 7. The business or establishment fails to fully comply with all the rules, regulations and orders of the California State Department of Alcoholic Beverage Control. Based on the information contained in the January 17, 2008 Planning Commission staff report (Exhibit 2), staff presents the following findings and facts in support of findings for the revocation of Use Permit Nos. 2001 -005 and 2002 -034: 2. That time terms or conditions of approval of the permit have been violated or that other laws or regulations have been violated. Sejour violated Condition No. 1, which requires substantial conformance with the approved plot plan, floor plan, and elevations. Significant changes to the floor plan have been made without approval by the Planning Commission, including the addition of a fenced off patio area along Via Oporto and the installation of tables, booths, and other seating areas. Sejour violated Condition No. 4, which requires future owners or assignees to be noted of the conditions of this approval by either the current business owner, property owner or the leasing agent. Future owners, operators or assignees are required to submit, within 30 days of transfer or sale of the business or alcohol license, a letter to the Planning Department acknowledging their receipt and acceptance of the limitations and conditions of approval of the Use Pen-nit. Sejour has operated at this location since November 2005 and, to date, Sejour has not submitted a letter to the Planning Department acknowledging their receipt and acceptance of the limitations and conditions of approval of this Use Permit. Furthermore, the operator admitted in writing that he was not aware of the conditions related to the use of the property. Sejour violated Condition No. 5, which requires compliance with ail federal, state, and local laws. There have been multiple violations of the Use Permit at this property, each of which is a violation of the Municipal Revocation of Use Permit Nos. 2001 -005 & 2002 -034 March 20, 2008 Page 3 Code. In addition, there are documented violations of the Building Code and ABC Regulations at the property. Furthermore, Sejour's blocking of the sidewalk during April 2007 is a violation of Municipal Code Section 10.50.020. Sejour has been issued two citations for violations of the Municipal Code and these citations were not appealed and are now final. Sejour violated Condition No. 11, which requires the applicant or operator to provide records of gross receipts of all off -site alcohol sales when requested by the City. These records were requested on May 4 and November 13, 2007 and have not been provided to date. Sejour violated Condition No. 13, which prohibits the premises from operating as an eating and drinking establishment, restaurant, bar, tavern, cocktail lounge or night club as defined by the Municipal Code. Admissions by the operator and observations by Newport Beach Police Department (NBPD) officers indicate the premises were not operating as a wine tasting bar, but instead operating like a nightclub, cocktail lounge or bar with full food service available. Sejour violated Condition No. 14 by exceeding the maximum occupancy levels and by allowing alcoholic beverages to be served in Unit A -1. NBPD reports indicate that occupancy loads have been found to be far in excess of the occupancy limits, thereby creating not only an unsafe condition but also a condition that is prohibited by the California Building Code. Furthermore, NBPD officers have documented that alcohol sales are occurring in Unit A -1 on April 14 and November 9 and 30, 2007. Sejour violated Condition No. 15 by operating outside of the permitted hours of operation. NBPD officers have reported on a number of occasions that Sejour was not operating within their permitted hours of operation set by the Use Permit and their ABC License. Sejour violated Condition 16, which requires all windows and doors to remain closed during live performances except for incidental ingress and egress of patrons and prohibits dancing. On April 19 -2D, 2007, NBPD officers observed that music was playing and could be heard through the open doors. NBPD officers also observed dancing on several inspections at this establishment, including dancing on April 19, November 9 and 30, 2007. In addition, on November 9, 2007, a server informed officers that a portion of Unit A -1 is specifically kept clear for dancing. Sejour violated Condition No. 18, which requires a special event permit for any event or promotional activity outside the normal operational Revocation of Use Permit Nos. 2001 -005 & 2002 -034 March 20, 2008 Page 4 characteristics of the retail business that would increase the expected occupancy beyond 29 patrons and 6 employees at any one time or any other activities as specified in the Newport Beach Municipal Code to require such special events permit. NBPD investigations revealed that the occupancy levels within Sejour were well beyond those required by the use permit condition on November 9 and 30, 2007. Sejour did not file applications for special event permits for either date. Sejour violated Condition No. 23, which requires the posting of loitering, open container, and other signs specked by the Alcoholic Beverage Control Act. NBPD reports that no ABC signs were posted at this establishment. Sejour violated Condition 33, which requires the operator to control noise generated by the establishment and for the noise generated by the use to comply with the provisions of Chapter 10.26 of the Newport Beach Municipal Code. On April 19 -20, 2007, NBPD officers were able to hear the music and the disc jockey from the City Hall parking lot. 3. The establishment for which the permit was issued is being operated in an illegal or disorderly manner. There have been multiple violations of the Use Permit occurring at this property, each of which is a violation of the Municipal Code. In addition, there are documented violations of the Building Code and ABC Regulations at the property. Furthermore, Sejour's blocking of the sidewalk during April 2007 is a violation of Municipal Code Section 10.50.020. Sejour has been issued two citations for violations of the Municipal Code and these citations were not appealed and are now final. 4. Noise from the establishment for which the permit was issued violates the Community Noise Control Ordinance (Chapter 10.26 of the Municipal Code). • On April 19 -20, 2007, NBPD officers observed that music was playing and could be heard through the open doors and could be heard from the City Hail parking lot. 7. The business or establishment fa €ls to fully comply with all the rules, regulations and orders of the California State Department of Alcoholic Beverage Control. NBPD officers have reported on a number of occasions that Sejour is not operating within their permitted hours of operation set by their ABC License. Revocation of Use Permit Nos. 2001 -005 & 2002 -034 March 20, 2008 Page 5 Sejour's Alcoholic Beverage Control license prohibits dancing. NBPD officers have observed dancing on several inspections at this establishment including dancing on April 19, November 9 and 30, 2007. Loitering, open container, and other signs specified by the Alcoholic Beverage Control Act were not posted. The subject property has been vacant since January, 2008. No additional information nor new evidence and investigation have been made since that time. The property owners indicated that the establishment, when under their management for a period of three years, did not receive any citations from the Police Department nor the Code Enforcement Division. However, the Planning Department conducted a review of establishment in 2004 after a brochure came to their attention that suggested that the establishment was operating in violation of the conditions of the Use Permit. The contents of the brochure were summarized as follows at that time: • Advertised as a destination for food, wine, and cocktails. Provides a welcoming and comfortable atmosphere for people to come enjoy the premium spirits and wine. • Live Jazz Thursday, Friday and Saturday. Highlights Chef and notes he will create a meal to pair with your favorite beverage. • Features weekly cocktail and wine tasting. • Notes there are over a 1000 bottles of wine you may select to share during your visit or take with you. ■ Provides for "Private Catered Affairs ": formal cocktail party, wine tasting, wedding reception, corporate meeting, birthday, etc. (Reservations Required). • Advertises and emphasizes Overstreet's Bar as a place to come and enjoy wines, cocktails, jazz music, and food. Only in one part of a sentence does it mention you can take the wine with you (retail). Staff believes that the establishment operated as a restaurant, bar, and/or nightclub for a number of years, which violates the use permit conditions. Recently these violations have risen to a level that jeopardized the public health, safety or welfare. Despite specific and unambiguous conditions of approval, the potential remains for further Revocation of Use Permit Nos. 2001 -005 & 2002 -034 March 20, 2008 Page S violations should the use be reestablished. Therefore, staff recommends that the Planning Commission revoke the use permits. Alternatives The Planning Commission has the option of modifying or imposing new conditions to the use permit should it be determined that the uses or conditions under which it is being operated or maintained is detrimental to the public health, welfare or materially injurious to property or improvements in the vicinity or if the property is operated or maintained so as to constitute a public nuisance. On March 5, 2008, staff met with the property owners to discuss potential revisions to the existing use permits. Staff stated that they could support the use continuing solely as a retail off -sale establishment. On -site consumption and live entertainment would not be permitted and the establishment would have to close at 9:00 p.m. The property owners expressed their desire to continue to operate under the existing use permits with the existing conditions. They said that revisions suggested by staff would take away half of their business and were unacceptable. They also indicated that they would like to postpone the revocation hearing in order to explore different land use alternatives for the subject property. Environmental Review The proposed project has been reviewed and it has been determined that it is categorically exempt from the requirements of the California Environmental Quality Act under Class 21 (Enforcement Actions by Regulatory Agencies). This exemption applies to actions by regulatory agencies to enforce or revoke a lease, permit, license, certificate, or other entitlement for use issued, adopted, or prescribed by the regulatory agency or enforcement of a law, general rule, standard, or objective, administered or adopted by the regulatory agency. Public Notice Notice of this hearing was published in the Daily Pilot, mailed to property owners within 300 feet of the property (excluding roads and waterways) and posted at the site a minimum of 10 days in advance of this hearing consistent with the Municipal Code. Notices of this hearing were also mailed to the property owner and the last known operator. The environmental assessment process has also been noticed in a similar manner and all mandatory notices per the California Environmental Quality Act have been given. Finally, the item appeared upon the agenda for this meeting, which was posted at City Hall and on the city website. Revocation of Use Permit Nos. 2001 -005 & 2002 -034 March 20, 2008 Page 7 Submitted by: EXHIBITS 1. Draft Resolution No. 2008- 2. January 17, 2008 Planning Commission staff report (including all of its exhibits) EXHIBIT 'I DRAFT RESOLUTION FOR REVOCATION 0 RESOLUTION NO. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH REVOKING USE PERMIT NO. 2001 -006 AND USE PERMIT NO. 2002 -034 (SEJOUR EUROPEAN BISTRO & LOUNGE) ON PROPERTY LOCATED 3400 VIA LIDO (PA2002 -167) THE PLANNING COMMISSION FOR THE CITY OF NEWPORT BEACH HEREBY FINDS, RESOLVES AND ORDERS AS FOLLOWS: WHEREAS, Sejour European Bistro & Lounge ( "Sejour") is located at the northwest corner of Via Lido and Via Oporto and legally described as Lot 2 of Tract 1235; and WHEREAS, on April 5, 2001, the Planning Commission approved Use Permit No. 2001 -005 to allow a fine wine retail establishment to operate with a Type 421" Alcohol Beverage Control (ABC) license (Off -Sale, General) and Type "42" ABC license (On-Sale Beer and Wine, Public Premises) with periodic on -site wine tasting seminars and a parking waiver; and WHEREAS, on November 7, 2002, the Planning Commission adopted Resolution No. 1579 of Use Permit No. 2002 -034, amending conditions of approval of Use Permit No. 2001 -005, authorizing a Type "47 ABC license (On -Sale, General- Eating Place) for on -site consumption of general alcohol beverages, live entertainment and expansion of hours of operation; and WHEREAS, pursuant to Section 20.96.040 of the City of Newport Beach Municipal Code, the Planning Director determined that there were reasonable grounds for the revocation of Use Permit No. 2001 -005 and Use Permit No. 2002 -034 and set a public hearing so that the Planning Commission could set a date to consider the revocation of Use Permit Nos. 2001 -005 and 2002 -034 ( °Use Permit); and. WHEREAS, after giving proper notice in accordance with law, a public hearing was held on January 17, 2008 in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California. The Planning Commission unanimously voted to set a revocation hearing for the Use Permit on March 20, 2008; and WHEREAS, after giving notice in accordance with law, a public hearing was held on March 20, 2008 in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this meeting; and WHEREAS, in January 2007, the Newport Beach Police Department received a verbal complaint that Sejour was operating as a club for dancing and entertainment on Friday and Saturday nights. A subsequent inspection by the Newport Beach Police Department revealed that on April 15, 2007, Sejour had placed a wooden fence over most of the sidewalk adjacent to Via Oporto for the purpose of creating a smoking area with chairs and tables without proper permits from the City; and 1} City of Newport Beach Planning Commission Resolution No. _ Page 2 of 7 WHEREAS, on April 19, 2007, the Newport Beach Police Department inspected the property and observed that music was playing and could be heard through the open doors of the establishment, patrons were eating and drinking with full menus available, dancing was allowed, and bottle service was also available; and WHEREAS, based on reported observations by the Police Department and Code Enforcement it was determined that Sejour was operating in violation of Conditions 3, 4, 10, 13, 14, 15, 17, 18 and 22. Administrative Citation 12007 -0395 was issued based on these violations; and WHEREAS, on May 4, 2007, the Planning Department requested Sejour's gross receipts for review pursuant to Use Permit Condition No. 12; and WHEREAS, on May 4, 2007, an inspection of the interior of the property was performed by Code Enforcement. In the entrance, Code Enforcement Officers observed couches, tables and chairs. In Unit A -1, Code Enforcement Officers observed a small bar that had wine and soft drinks as well as tables, couches, chairs and booths. In the room directly after the entrance, Code Enforcement Officers observed additional couches, tables and chairs. In a small room near the bathroom, additional couches and chairs were observed. WHEREAS, On May 10, 2007, the business operator (Arthur Stockton) responded to the May 4, 2007 correspondence. In the correspondence, Mr. Stockton admitted that the use of the property was a combination of restaurant, bar and lounge. He also noted that the Use Permit, as currently written, would prohibit Sejour from successfully operating and that he could not comply with the conditions as written; and WHEREAS, Mr. Stockton admitted that total sales for the past 12 months ending May 30, 2007, were $730,871 and that the sales components break down as follows: 41 % food, 36% winetchampagne, 17% cordials/liquor and 6% beer. On -site sales were 78% of the total and retail sales were 22 %. The off -site sales ratios as to food, wine, liquor and beer were 48% food and 52% wine /champagne (no off -site sale of beer or hard alcohol). Based on Mr. Stockton's own admissions over 40% of his business comes from the sale and consumption of alcohol on -site; and WHEREAS, Mr. Stockton also admitted in his correspondence that it is virtually impossible for him to comply with the terms of the Use Permit because of the retail sales requirement. In the 19 months preceding the May 10, 2007 correspondence, Mr. Stockton admitted that less than $10,000 had been generated by walk -in consumer retail purchases. Further, Mr. Stockton admitted that most of the retail component was comprised of off -site events, such as corporate parties. Mr. Stockton also admitted in his correspondence that he was using Unit A -1 for the purpose of serving alcohol and food; and WHEREAS, On May 14, 2007, the Planning Department issued a letter requesting submittal of a use permit application for the new use as a bar or cocktail 9, City of Newport Beach Planning Commission Resolution No. Page 3 of 7 lounge or that Sejour operate within the current conditions of the existing Use Permit. No application for an amendment to the Use Permit has been received to date; and WHEREAS, On May 26, 2007, the Newport Beach Police Department conducted an investigation of the establishment and determined there were approximately 35 people in Unit A -2 and approximately 15 -25 patrons in Unit A -1. Many people in Unit A- 1 were consuming alcoholic beverages, including one table that had a bottle of vodka that they were sharing. Administrative Citation No. 1168B was issued for violation of Condition No. 14 of the Use Permit; and WHEREAS, On November 9, 2007, the Police Department made an inspection and noted that alcohol was available via waiter service in Unit A -1 and throughout the establishment. Very loud music was playing from two very large speakers and dancing was occurring in the area known as Unit A -1. The Police Department also observed that "bottle service' was offered. The price for bottle service was $300 for a bottle of "Grey Goose" vodka, while anything else was $250. WHEREAS, on November 13, 2007, the Planning Department issued a request for records to determine compliance with conditions of Use Permit No. 2001 -005. The Planning Department requested that the records be submitted by December 13, 2007; and. WHEREAS, on November 30, 2007, the Police Department made an inspection and observed that a private party was going on in the area of the business identified as Unit A -1 and there were approximately 4 tables set up in the middle of the room. Waiters were delivering drink orders to Unit A -1 and food had been served. Approximately 150 to 160 patrons were in the establishment. No ABC postings or maximum occupancy postings were observed by the officers. Patrons were dancing throughout the establishment; and WHEREAS, on December 12, 2007, Mr. Stockton informed the City that he had elected to sell Sejour and asked whether he could allow the new owner to submit records and resolve the other issues related to the business; and WHEREAS, on December 12, 2007 the Planning Department sent a letter to Mr. Stockton noting the violations at the property and noting that the documents related to gross sales requested on May 4 and November 13, 2007 had not been provided; and WHEREAS, on December 26, 2007, Mr. Stockton notified the City that Sejour was now closed because operation of the business was dependent upon their operation as a bar and restaurant as they bargained for in their lease; and NOW, THEREFORE, BE IT RESOLVED that based in the aforementioned findings, the Planning Commission finds as follows: 15 Section 1 correct City of Newport Beach Planning Commission Resolution No. Page 4 ;f-7 The Recitals above are hereby declared to be true, accurate, and Section 2. The Planning Commission hereby finds that the Administrative Record which was considered by the Planning Commission in adopting this Resolution consists, without limitation, of all documents, correspondence, testimony, photographs, and other information presented or provided to the Planning Director, Planning Commission and City including, without limitation, testimony received at Planning Commission meetings, staff reports, agendas, notices, meeting minutes, police reports, correspondence, and all other information provided to the City and retained in the files of the City, its staff and attorneys, and such is hereby incorporated by reference into the Administrative Record and is available upon request ( "Administrative Record"). Section 3. The Planning Commission finds that notice of this hearing was in conformance with California law. Section 4. Pursuant to Municipal Sections 20.89.060.0 and 20.96.040, the Planning Commission finds as follows: 1. That the terms or conditions of approval of the permit have been violated or that other laws or regulations have been violated. Sejour violated Condition No. 1, which requires substantial conformance with the approved plot plan, floor plan, and elevations. Significant changes to the floor plan have been made without approval by the Planning Commission, including the addition of a fenced off patio area along Via Oporto and the installation of tables, booths, and other seating areas. Sejour violated Condition No. 4, which requires future owners or assignees to be notified of the conditions of this approval by either the current business owner, property owner or the leasing agent. Future owners, operators or assignees are required to submit, within 30 days of transfer or sale of the business or alcohol license, a letter to the Planning Department acknowledging their receipt and acceptance of the limitations and conditions of approval of the Use Permit. Sejour has operated at this location since November 2005 and, to date, Sejour has not submitted a letter to the Planning Department acknowledging their receipt and acceptance of the limitations and conditions of approval of this Use Permit. Furthermore, the operator admitted in writing that he was not aware of the conditions related to the use of the property. Sejour violated Condition No. 5, which requires compliance with all federal, state, and local laws. There have been multiple violations of the Use Permit at this property, each of which is a violation of the Municipal �A City of Newport Beach Planning Commission Resolution No. _ Page 5 ;-f7 Code. In addition, there are documented violations of the Building Code and ABC Regulations at the property. Furthermore, Sejoues blocking of the sidewalk during April 2007 is a violation of Municipal Code Section 10.50.020. Sejour has been issued two citations for violations of the Municipal Code and these citations were not appealed and are now final. Sejour violated Condition No. 11, which requires the applicant or operator to provide records of gross receipts of all off -site alcohol sales when requested by the City. These records were requested on May 4 and November 13, 2007 and have not been provided to date. Sejour violated Condition No. 13, which prohibits the premises from operating as an eating and drinking establishment, restaurant, bar, tavern, cocktail lounge or night club as defined by the Municipal Code. Admissions by the operator and observations by Newport Beach Police Department (NBPD) Officers indicate the premises were not operating as a wine tasting bar, but instead operating like a nightclub, cocktail lounge or bar with full food service available. Sejour violated Condition No. 14 by exceeding the maximum occupancy levels and by allowing alcoholic beverages to be served in Unit A -1. NBPD reports indicate that occupancy loads have been found to be far in excess of the occupancy limits, thereby creating not only an unsafe condition but also a condition that is prohibited by the California Building Code. Furthermore, NBPD officers have documented that alcohol sales are occurring in Unit A -1 on April 14 and November 9 and 30, 2007. Sejour violated Condition No. 15 by operating outside of the permitted hours of operation. NBPD Officers have reported on a number of occasions that Sejour was not operating within their permitted hours of operation set by the Use Permit and their ABC License. Sejour violated Condition 16, which requires all windows and doors to remain closed during live performances except for incidental ingress and egress of patrons and prohibits dancing. On April 19-20, 2007, NBPD officers observed that music was playing and could be heard through the open doors. NBPD Officers also observed dancing on several inspections at this establishment, including dancing on April 19, November 9 and 30, 2007. In addition, on November 9, 2007, a server informed officers that a portion of Unit A -1 is specifically kept clear for dancing. Sejour violated Condition No. 18, which requires a special event permit for any event or promotional activity outside the normal operational 0 + City of Newport Beach Planning Commission Resolution No. _ Page 6 ;f7 characteristics of the retail business that would increase the expected occupancy beyond 29 patrons and 6 employees at any one time or any other activities as specified in the Newport Beach Municipal Code to require such special events permit. NBPD investigations revealed that the occupancy levels within Sejour were well beyond those required by the use permit condition on November 9 and 30, 2007. Sejour did not file applications for special event permits for either date_ Sejour violated Condition No. 23, which requires the posting of loitering, open container, and other signs specified by the Alcoholic Beverage Control Act. NBPD reports that no ABC signs were posted at this establishment. Sejour violated Condition 33, which requires the operator to control noise generated by the establishment and for the noise generated by the use to comply with the provisions of Chapter 10.26 of the Newport Beach Municipal Code. On April 19-20, 2007, NBPD officers were able to hear the music and the disc jockey from the City Hall parking lot. The establishment for which the permit was issued is being operated in an illegal or disorderly manner. There have been multiple violations of the Use Permit occurring at this property, each of which is a violation of the Municipal Code. In addition, there are documented violations of the Building Code and ABC Regulations at the property. Furthermore, Sejour's blocking of the sidewalk during April 2007 is a violation of Municipal Code Section 10.50.020. Sejour has been issued two citations for violations of the Municipal Code and these citations were not appealed and are now final. Noise from the establishment for which the permit was issued violates the Community Noise Control Ordinance (Chapter 10.26 of the Municipal Code). On April 19 -20, 2007, NBPD Officers observed that music was playing and could be heard through the open doors and could be heard from the City Hall parking lot. 4. The business or establishment falls to fully comply with all the rules, regulations and orders of the California State Department of Alcoholic Beverage Control. NBPD Officers have reported on a number of occasions that Sejour is not operating within their permitted hours of operation set by their ABC License. City of Newport Beach Planning Commission Resolution No. _ Page 7 of 7 Sejour's Alcoholic Beverage Control license prohibits dancing. NBPD officers have observed dancing on several inspections at this establishment including dancing on April 19, November 9 and 30, 2007. Section 5. The Planning Commission finds that pursuant to the Conditions of the Use Permit allowing for revocation, Section 20.96.040 of the Municipal Code, the Administrative Record, the findings in Sections 1, 2, 3, and 4 above, sufficient grounds exist to revoke Use Permit Nos. 2001 -005 and 2002 -034. Based thereon, it is hereby resolved that Use Permit Nos. 2001 -005 and 2002 -034 are hereby revoked because the operator violated the terms or conditions of approval of the Use Permit. Section S. This action shall be become final and effective fourteen (14) days after the adoption of this Resolution unless within such time an appealed is filed with the City Clerk in accordance with the provisions of Title 20 Planning and Zoning, of the Newport Beach Municipal Code. PASSED, APPROVED AND ADOPTED THIS 20TH DAY OF MARCH 2008 AYES: NOES: ABSENT: BY: Robert Hawkins, Chairman BY: Bradley Hillgren, Secretary 6 EXHIBIT 2 JANUARY 17, 2008 PLANNING COMMISSION STAFF REPORT (INCLUDING ALL OF ITS EXHIBITS)