HomeMy WebLinkAbout06_Newport_Beach_Winery_PA2010-078CITY OF NEWPORT BEACH
PLANNING COMMISSION STAFF REPORT
August 5, 2010
Agenda Item 6
SUBJECT: Newport Beach Winery - (PA2010 -078)
869 West 16th Street
Code Amendment No. CA2010 -005
APPLICANT: Newport Beach Wine Company & Winery, Inc.
PLANNER: Fern Nueno, Assistant Planner
(949) 644 -3227, fnueno @newportbeachca.gov
PROJECT SUMMARY
The applicant is proposing a Zoning Code Amendment to apply the Interim Study (IS)
Overlay District designation to 869 West 16th Street to allow food processing, which is
not an allowed use in the Controlled Manufacturing (M -1 -A) Zoning District. The IS
Overlay District designation is used to implement the 2006 General Plan when a project
or use is inconsistent with the current Zoning Code, while the Code is being updated to
reflect the new General Plan. The applicant proposes a winery (wine production with
accessory retail sales and accessory wine tasting).
RECOMMENDATION
1) Conduct a public hearing; and
2) Adopt Resolution No. _ recommending City Council approval of Code
Amendment No. CA2010 -005 (Attachment No. PC 1).
INTRODUCTION
The subject property is located in the West Newport Mesa area, which contains light
industrial, office, retail, multiple -unit residential, and public institutional uses. The
subject property is located in the industrial portion of this area, and the adjacent
properties are developed with industrial uses. The proposed 2,500 -sq. ft. winery will be
located in a 20,000- square -foot building that is located on a 4.34 -acre site that is
developed with 6 light industrial buildings.
Newport Beach Winery
August 5, 2010
Page 2
LOCATION
GENERAL PLAN
ZONING
CURRENT USE
ON-SITE
Industrial
(IG)
Controlled Manufacturing
M -1-A)
Industrial
NORTH
Industrial
(IG)
Controlled Manufacturing
M -1-A)
Industrial and office
SOUTH
Industrial
(IG)
Controlled Manufacturing
M -1-A)
Industrial and office
EAST
Industrial
(IG)
Controlled Manufacturing
M -1-A)
Industrial and office
WEST
Industrial
(IG)
Controlled Manufacturing
M -1-A)
Industrial and office
Newport Beach Winery
August 5, 2010
Page 3
The applicant is applying for a Type 2 (Winegrower) Alcoholic Beverage Control (ABC)
License from the State Department of ABC, which authorizes the sale of wine and
brandy to any person holding a license to sell wine and brandy (i.e. wholesaling), and to
consumers for consumption off the premises where sold (i.e. retail sales). This ABC
license allows for wine tastings and all alcohol sales are limited to the product produced
on -site. The proposed hours of operation are 10:00 a.m. to 9:30 p.m., daily. Wholesale
activities would typically occur during the week (Monday through Friday) and would be
by appointment only. The applicant plans to open the facility to the general public on
weekends (Saturdays and Sundays) for retail sales.
The production process includes fermenting grape juice to make wine. A portion of the
juice will come from grapes that will be pressed on -site. After fermentation of the juice to
make wine, it will be aged, bottled, labeled, boxed, and stored for distribution and sale.
All activities will be within the building and no exterior equipment will be required. The
delivery and loading area will be on -site.
DISCUSSION
Chapter 20.05 of the Zoning Code (Use Classifications) classifies the proposed use as
"Food Processing," which is defined as, "establishments primarily engaged in the
manufacturing or processing of food or beverages for human consumption and
wholesale distribution." The subject property is located within the Controlled
Manufacturing (M -1 -A) Zoning District, which "provides areas for a wide range of
moderate to low intensity industrial uses and limited accessory and ancillary commercial
and office uses," but does not allow Food Processing. As indicated previously, the
applicant is requesting the Interim Study Overlay District designation to allow the use at
the site in advance of the Zoning Code Update based on the premise that the food
processing (including the proposed winery) would be allowed in the Industrial (IG) land
use designation of the 2006 General Plan.
The IG land use category is intended, "to provide for a wide range of moderate to low
intensity industrial uses, such as light manufacturing and research and development,
and limited ancillary commercial and office uses." The applicant's proposed use is a
moderate to low intensity industrial -type use that would appear to be consistent with the
IG General Plan land use category and with the following General Plan Goals and
Policies applicable to the Industrial Districts:
Goal LU 5.5. Districts that provide for the manufacturing of goods and
research, and development that are attractive, compatible with adjoining
nonindustrial uses, and well maintained.
Goal LU 6.7. A general industrial district that transitions between the
Hoag Hospital medical and residential community and industrial uses in
the City of Costa Mesa, providing opportunities for needed uses that
cannot be accommodated elsewhere in Newport Beach.
Newport Beach Winery
August 5, 2010
Page 4
LU 6.7.1. Encourage the development of small -scale incubator industries.
The proposed project does not contradict Goal LU 5.5 because the immediately
adjacent properties are industrial. The use will not involve new exterior equipment or
storage that would detract from the existing aesthetic of the building or site. The
proposed project is consistent with Goal LU 6.7 because this food production use is
contained within an existing building and would not noticeably change the makeup of
the district. Approval of the project to allow the proposed use is consistent with Goal LU
6.7 and Policy LU 6.7.1 because it provides an opportunity for entrepreneurship for a
food processing use in an established light industrial area.
Draft Zoning Code
The Draft Zoning Code would designate the project site as Industrial (IG), which is
intended, "to provide for areas appropriate for a wide range of moderate to low intensity
industrial uses (e.g., light manufacturing and research and development) and limited
accessory commercial and office uses." The Draft Zoning Code also classifies the
proposed use as "Food Processing," and it would be permitted by -right in the proposed
IG Zoning District. Consequently, when the Draft Code is adopted, the proposed use
would be allowed without any discretionary review, provided the Draft Code provisions
are not changed. The General Plan /Local Coastal Program Implementation Committee
has endorsed these use provisions with their recommendation to adopt the Draft Zoning
Code.
Alcoholic Beverage Sales and Tasting
The current Zoning Code does not have any specific requirements for a Type 2 License
and a Type 2 License is not regulated by Chapter 20.89 (Alcoholic Beverage Outlets).
The Draft Zoning Code also does not provide any specific requirements for this type of
ABC license. The Type 2 ABC License only allows the tasting or sale of wine that is
produced on -site and does not limit the size or number of pours. The inherent
restrictions of this license type would not allow the use to be operated as a restaurant or
bar. This application has been reviewed by the Police Department and they have no
objections to the operation.
Parking
The light industrial complex that would house the proposed use is developed with six (6)
light industrial buildings and a surface parking lot that provides 130 shared parking
spaces. Table 1 below provides a summary of parking.
Newport Beach Winery
August 5, 2010
Page 5
Table 1
Use
Square footage
Parking requirement
Number of
space required
Food Processing
2,470 sf
1 space/2,000 sf
2
Industrial
61,750 sf
1 space/750 sf
83
Storage
20,250 sf
1 space/2,000 sf
11
Total
84,470 sf
96
" Draft code standard
Based upon current and proposed uses, the site contains adequate parking in the
shared parking pool to serve existing and proposed uses.
Study Plan
The Interim Study Overlay requires a Study Plan to be approved consistent with
Chapter 20.53 of the Zoning Code (Interim Study Overlay District). The plan must at
minimum include proposed land uses and development regulations including, but not
limited to: permitted uses, setbacks, parking space requirements, and floor area ratio.
The draft Study Plan (Attachment PC 2) includes a project description and justification,
General Plan and Zoning Code analysis, permitted uses, and development standards.
When the new Zoning Code is adopted, the Study Plan will no longer be relevant,
provided the Draft Code remains unchanged regarding the proposed IG zone.
Districting Map
Districting Map No. 22 will be amended if the application is approved to reflect the IS
Overlay District application to the subject property.
Required Findings
Approval of the Code Amendment and Study Plan requires the City Council to make
mandatory findings for the purpose of implementing the General Plan. The required
findings and facts in support of the findings are in the attached draft resolution
(Attachment PC 1).
Summary
Approval of the application would allow the proposed winery in advance of the
implementation of the new Zoning Code without any special conditions, which would be
consistent with the Draft Zoning Code. The proposed use appears to be consistent with
the General Plan and should not prove detrimental to the West Newport Mesa area if
operated as a wine production facility consistent with a Type 2 ABC license.
Newport Beach Winery
August 5, 2010
Page 6
Alternatives
The Planning Commission may also recommend approval of a modified Study Plan with
restrictions; however, they would only be effective until the new Zoning Code is
adopted. The Planning Commission could also deny the application if any of the
findings cannot be made.
Environmental Review
The project is categorically exempt under Section 15301, of the California
Environmental Quality Act (CEQA) Guidelines - Class 1 (Existing Facilities) which
exempts minor alterations to existing facilities. The proposed project includes a change
in use and interior alterations to a suite inside of an existing industrial building.
Public Notice
Notice of this hearing was published in the Daily Pilot, mailed to property owners within
300 feet of the property, and posted at the site a minimum of ten days in advance of this
hearing, consistent with the Municipal Code. Additionally, the item appeared upon the
agenda for this meeting, which was posted at City Hall and on the City website.
Prepared by: Submitted by:
Fern Nueno, Assistant Planner
ATTACHMENTS
PC 1 Draft Resolution
PC 2 Study Plan Provided by the Applicant
PC 3 Applicant's Project Description
PC 4 Project plans
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RESOLUTION NO. ####
A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF NEWPORT BEACH RECOMMENDING CITY COUNCIL
APPROVAL OF CODE AMENDMENT NO. CA2010 -005 FOR A
WINERY LOCATED AT 869 WEST 16TH STREET (PA 2010 -078)
THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS
FOLLOWS:
SECTION 1. STATEMENT OF FACTS.
1. An application was filed by Newport Beach Wine Company and Winery, Inc., with respect
to property located at 869 West 16th Street, and legally described as First Addition to
Newport Mesa Tract, Lot 913, Westerly 396 feet, requesting approval of a code
amendment to apply the interim study overlay district.
2. The applicant proposes to operate a winery, which will include wine production with
accessory wine tasting and wine sales.
3. The subject property is located within the Controlled Manufacturing (M -1 -A) Zoning
District. The proposed winery is designated as "Food Processing" by Section 20.05.060
(Industrial Use Classifications) of the Zoning Code. Per Section 20.20.020 (Industrial
Districts: Land Use Regulations) of the Zoning Code Food Processing is not an allowed
use in the M-1 -A District.
4. The General Plan Land Use Element category for this property is Industrial (IG), which
provides for a wide range of moderate to low intensity industrial uses, such as light
manufacturing and research and development, and limited ancillary commercial and
office uses.
5. As part of the General Plan Implementation Program, the City Council adopted
Resolution No. 2007 -3 establishing an interim development review process to provide
a mechanism for projects that are consistent with the General Plan but inconsistent
with the current zoning regulations. This process requires project proponents to
request approval of a Code Amendment to apply the Interim Study (IS) Overlay District
zoning designation on the property. A development Study Plan is required that
establishes all development regulations for the subject property and provides for
implementation of General Plan policies.
6. The subject property is not located within the coastal zone.
7. A public hearing was held on August 5, 2010, in the City Hall Council Chambers, 3300
Newport Boulevard, Newport Beach, California. A notice of time, place, and purpose of
the meeting was given in accordance with the Newport Beach Municipal Code.
Evidence, both written and oral, was presented to, and considered by, the Planning
Commission at this meeting.
Planning Commission Resolution No. _
Paoe 2 of 4
SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION.
1. This project is categorically exempt under the requirements of the California
Environmental Quality Act under Class 1 (Existing Facilities), which exempts minor
alterations to existing facilities.
2. The proposed project includes a change in use and interior alterations to a suite inside
of an existing industrial building.
SECTION 3. REQUIRED FINDINGS.
In accordance with City Council Resolution No. 2007 -3 establishing the Interim Study
process, the following findings and facts in support of such findings are set forth:
Finding:
A. The proposed plan implements and is in compliance with all applicable policies of the
General Plan.
Facts in Support of Finding:
A -1. The project site is designated as Industrial (IG) by the Land Use Element of the General
Plan. The proposed project is consistent with the IG Land Use Category, which is
intended to provide for a wide range of moderate to low intensity industrial uses, such as
light manufacturing and research and development, and limited ancillary commercial
and office uses. Wine production is a moderate to low intensity industrial use that is
consistent with the IG General Plan Land Use Category.
A -2. The proposed project is consistent with Goal LU 5.5 because the immediately adjacent
properties are industrial. The use will not involve new exterior equipment or storage that
would detract from the existing aesthetic of the building.
A -3. The proposed project is consistent with Goal LU 6.7 because this food production use is
contained within an existing building and would not noticeably change the makeup of the
district. Approval of the project to allow the proposed use is consistent with Goal LU 6.7
and Policy LU 6.7.1 because it provides an opportunity for entrepreneurship for a food
processing use in an established light industrial area.
B. The proposed plan conforms to all applicable design guidelines, such as those included in
the Mariner's Mile Design Framework, and any existing Specific Plan design guidelines.
Facts in Support of Finding:
B -1. There are no design guidelines for this area and the area is not subject to a Specific
Plan.
Tmpll: 04/14/10
Planning Commission Resolution No.
C!
C. Any changes from existing zoning regulations that otherwise would apply are justified by
compensating benefits of the proposed plan.
Facts in Support of Finding:
C -1. Changing the permitted uses to allow for "Food Processing" in this IS Overlay District is
justified by the benefits of having a new small business in the City.
D. The proposed development and /or use and its development and operation as proposed in
the Study Plan will not be detrimental to the public health, safety and welfare of the
persons residing in or working in the proposed structures or in developments adjacent to
the proposed project, properties or improvements in the vicinity or to the general welfare
of the City.
Facts in Support of Finding:
D -1. The properties immediately adjacent to the subject site are being used for industrial
uses.
D -2. The sale of alcoholic beverages is licensed and controlled by the State Department of
Alcoholic Beverage Control (ABC). The wine tasting will be accessory to the wine
production use.
D -3. There is adequate parking on site to support the existing uses on site and the proposed
use.
D-4. There will be no outside storage of equipment and the trash receptacle will have a
cover, which will prevent any potential negative odor impacts.
SECTION 4. DECISION.
NOW, THEREFORE, BE IT RESOLVED:
The Planning Commission of the City of Newport Beach hereby recommends City Council
approval of Code Amendment No. CA2010 -005 to apply the Interim Study Overlay District
amending Districting Map 22 and establishing a Study Plan, subject to the conditions set forth in
the Study Plan, which is attached hereto and incorporated by reference.
Tmplt: 04 /14/10
Planning Commission Resolution No.
Paoe 4 of 4
PASSED, APPROVED, AND ADOPTED THIS 5'h DAY OF AUGUST, 2010.
AYES:
NOES:
ABSTAIN
ABSENT:
13'
DA
Earl McDaniel, Chairman
Michael Toerge, Secretary
Tmplt: 04/14/10
Study Plan
Study Plan
For
Newport Beach Wine Company & Winery Inc.
869 W. 16th Street
Newport Beach, CA.
Proiect Description and Justification
Proposed Project
Newport Beach Wine Company and Winery Inc. (NB Wine Company) has leased and
proposed to use property located at 896 W. 16th Street, Newport Beach, CA (Premises)
To manufacture, bottle and sell wine. The leased space is part of a large industrial
building divided into eight (8) similarly sized units. The subject space is approximately
2,500 SF which includes a small office and wine tasting area (approx. 700 SF) in the
front of the building, and the remaining space to be used for wine production, barrel,
tanks and case storage (1800 SF) in the rear. The current space has access to five (5)
unreserved vehicle parking spaces. Retail sales will be restricted to weekends only.
NB Wine Company will act as a typical winery; bringing in fresh or frozen grapes for
pressing or chilled or frozen grape juice, fermenting, producing, barrel fermentation,
bottling, and blending wine, allowing tasting, and will sell some wine to consumers from
the premises.
Wine Making Equipment
The facility will have all the necessary winemaking equipment required for the
production, bottling and storage of fine wine.
Delivery of Grapes and Production of Wine
NB Wine Company will purchase both fresh and frozen grapes from growers in Central
and Northern California. The grapes will be delivered by commercial carrier /trucking
company. The grapes will be crushed and processed into juice to be stored in
fermentation tanks located in the production warehouse area. The wine will be
monitored and later pumped into barrels for aging. Once aged appropriately, the wine
will be bottled, labeled, boxed, and stored for sale.
Recycling and Waste Management
The production of wine will be as "green" as possible given the size of the production
facility. Grape stems, seeds, skins and other natural by- products (eg. yeast residue and
corks) will be removed and composted off site. All other production waste consisting of
cardboard, paper and glass will be recycled. Office related waste will be disposed by
standard trash disposal.
1
Retail tine Sales and Tasting
Wine will be available for sale to consumers on weekends only or by mail- order. No
consumption of purchased wine will be permitted on the premises. Wines will be sold
for off -site consumption by the bottle or case. It is anticipated that most wine will be
purchased then shipped via common carrier (UPS or FedEx) to consumers and
retailers.
A small tasting bar comparable to Napa Valley will be available for tastings. Tastings to
the trade (retailers, restaurants and distributors) will be by appointment during the week
and weekends from 11:00 am to 9:30 pm. Retail tasting for consumers will be held on
weekends only from 11:00 am to 9:30 pm. Retail tasting will be $10.00 and include a
logo wine glass. Retail tastes will be limited to one & one half ounce (1 1/2 oz.) pours
with a limit of six (6) total tastes. Wine will be poured by one & one half ounce tastes,
not by the glass. Tastings will be supervised by an employee who will also provide
information about each wine that is tasted.
Justification
The current and proposed zoning permits low to moderate intensity industrial uses. The
manufacturing of wine is a compatible use as no heavy machinery, loud noises or
intense fumes, waste or byproducts are produced. Wine making is similar to food
production in that raw natural food /consumable products are processed and packaged
for sale. Like food production, winemaking is heavily regulated and inspected as the
ultimate product is for human consumption. While not specifically permitted or
mentioned in the current Zoning Code, permitting production of wine will not negatively
impact the general health, safety or welfare of the public and is consistent with the
General Plan. As you are aware, we are a tenant in an existing Industrially Zoned
building. Additionally, it will not impact the other users in the building that will continue
to operate various manufacturing operations.
General Plan Consistency
The project site is designated as Industrial (IG) by the Land Use Element of the General
Plan. The IG land use category is intended to provide for a wide range of moderate to
low intensity industrial uses, such as light manufacturing and research and
development, and limited ancillary commercial and office uses. The applicant's
proposed use is a moderate to low intensity industrial -type use that would appear to be
consistent with the IG General Plan Land Use Category.
Zoning
The current zoning for the project is M -1 -A (Controlled Manufacturing). The intent of
this Study Plan is to set permitted uses and development standards for the Interim
Study Overlay District.
2
Permitted Uses
The current Zoning Code permits controlled low to moderate intensity industrial uses,
but does not specifically permit food processing, however proposed Draft Zoning Code
does permit food processing.
This Interim Study Overlay District shall allow "Food Processing" as a permitted use. All
other permitted uses allowed in the current Zoning Code Section 20.20.020 (Industrial
Districts: Land Use Regulations) shall be permitted in this IS Overlay District.
Development Standards
All development standards addressed in the current Zoning Code Section 20.20.030
(Industrial Districts: Property Development Regulations) and other relevant sections of
the Municipal Code shall be applicable in this IS Overlay District, unless otherwise
specified below.
Lot Dimensions
FAR
Lot Area: 10,000 square feet
Lot Width: 0 feet
Industrial FAR: 0.75
Setbacks
Front: 15 feet
Sides: 0 feet
Rear: 0 feet
Parking
Food Processing: 1 space for each 2,000 square feet of gross floor area
All other uses: pursuant to Chapter 20.66 of the Zoning Code
Landscaping
Per Chapter 20.36 (Landscaping Standards) of the draft Zoning Code
Per Water Efficient Landscape Ordinance, Chapter 14.17 of the Municipal Code
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Applicant: Newport Beach Wine Company & Winery Rnc. (NB Wine Company)
869 W. 16th Street
Newport Beach, CA.
Detailed Description off, and Justification for, the (Project
Proposed Project
Newport Beach Wine Company and Winery Inc. (NB Wine Company) has leased and proposed
to use property located at 896 W. 1611i Street, Newport Beach, CA (Premises) to manufacture,
bottle and sell wine. The leased space is part of a large industrial building divided into eight (8)
similarly sized units. The subject space is approximately 2,500 SF which includes a small office
and wine tasting area (approx. 700 SF) in the front of the building, and the remaining space to
be used for wine production, barrel, tanks and case storage (1800 SF) in the rear.. The current
space has access to five (5) unreserved vehicle parking spaces. Retail sales Nvillbe restricted to
weekends only.
NB Wine Company will act as a typical winery; bringing in fresh or frozen grapes for pressing or
chilled or frozen grape juice, fermenting, producing, barrel fermentation, bottling, and blending
wine, allowing tasting, and will sell some wine to consumers from the premises. NB Wine
Company will also purchase wine for resale at wholesale.
Wine Making Equipment
The facility will have all the necessary winemaking equipment required for the production,
bottling and storage of fine wine. (See attached photos)
Delivery of Grapes and Production of Wine
NB Wine Company will purchase both fresh and frozen grapes from growers in Central and
Northern California. The grapes will be delivered by commercial carrier /trucking company.
The grapes will be crushed and processed into juice to be stored in fermentation tanks located in
the production warehouse area. The wine will be monitored and later pumped into barrels for
aging. Once aged appropriately, the wine will be bottled, labeled, boxed and stored for sale.
Recycling and Waste Management
The production of ovine will be as "green" as possible given the size of the production facility.
Grape stems, seeds, skins and other natural by- products (eg. yeast residue and corks) will be
removed and composted off site. All other production waste consisting of cardboard, paper and
glass will be recycled. Office related waste will be disposed by standard trash disposal.
Retail Wine Sales and Tasting
Wine will be available for sale to consumers on weekends only or by mail - order. No
consumption of purchased wine will be permitted on the premises. Wines will be sold for off -
site consumption by the bottle or case. It is anticipated that most wine will be purchased then
shipped via common carrier (UPS or FedEx) to consumers and retailers.
A small tasting bar comparable to Napa Valley will be available for tastings. Tastings to the
trade (retailers, restaurants and distributors) will be by appointment during the week and
weekends from u:oo am to 9:30 pm. Retail tasting for consumers will be held on weekends
only from ii:oo am to 9:3o pm. Retail tasting will be $io.00 and include a logo wineglass.
Retail tastes will be limited to one & one half ounce (r 1/2 oz.) pours with a limit of six (6) total
tastes. Wine will be poured by one & one half ounce tastes, not by the glass. Tastings will be
supervised by an employee who will also provide information about each wine that is tasted.
Hours of Operation:
The proposed hours of operation are ro:oo am to 9:30 pm, seven (7) days a week.
As noted above tastings to the trade (retailers, restaurants and distributors) will be by
appointment during the week and weekends from tr:oo am to 9:30 pm.
Retail tasting for consumers will be held on weekends only from rr:oo am to 9:30 pm. The
actual hours may vary within the requested hours depending of market demand.
Impact to Area:
The approval of the proposed winery will not adversely impact the surrounding community.
This request is not contrary to zoning or general plan for the property, nor will approval create
any negative impacts to the community's health, safety and welfare.
POSSIBLE BENEIFIT'S:
a. Employment: In order to staff the business during the hours of operation, the
applicant intends to employ up to 4 local residents in addition to the owner.
b. Taxes Generated: Unknown at this time but the applicant hopes to achieve
general taxable gross revenues in excess of $500,000.0o annually.
C. Unique Goods and Services: The applicant proposes a winery open to the public
on weekends.
d. Upgrade to Area: The proposed winery will utilize an otherwise vacant
industrial space.
e. Long Term Economic Contribution: It is hoped the success of the
proposed business will grow.
f. Cultural/ Entertainment Benefit: It is hoped that wine education and
appreciation will develop and attract persons that also enjoy art, music and
literature.
POSSIBLE DETRIMENTS:
The sale of alcoholic beverage may impact the surrounding community and create additional law
enforcement needs. However, properly managed /operated, maintained and subject to appropriate
conditions from the City and ABC as a winery with limited tasting, any impacts should be
mitigated or eliminated. Based on the proposed operational characteristics, and size, no negative
impacts are anticipated.
OPERATIONAL CHARACTERISTICS:
See project description above.
No.
Attachment P C I
Project Plans
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