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HomeMy WebLinkAboutNewport Beach Brewing Company - UP 3695 - 2920 Newport BlvdCITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT Agenda Item 4 August 17, 2006 TO: PLANNING COMMISSION FROM: James Campbell, Senior Planner (949) 644 -3210, icampbe110city.newport- beach.ca.us SUBJECT: Newport Beach Brewing Company Use Permit No. 3685 2920 Newport Boulevard On May 4, 2006, the Planning Commission discussed the operation of the Newport Beach Brewing Company in response to concerns raised by nearby residents, property owners and local business persons. Staff prepared a report providing a limited background of the use and a discussion of the issues raised (Exhibit No. 1). At the conclusion of the discussion, the Commission found that there was sufficient information to review and possibly modify the Brewing Company's Use Permit. PUBLIC NOTICE The Newport Beach Brewing Company has been notified of this hearing. A hearing notice indicating the review and potential modification of Use Permit No. 3484 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. Additionally, the item appeared upon the agenda for this meeting, which was posted at City Hall and on the city website. RECOMMENDATION Staff recommends that the Planning Commission take public testimony and direct staff to prepare revised conditions of approval for potential adoption at the next meeting. Newport Beach Brewing Company August 17, 2006 Page 2 BACKGROUND The current use was established in 1993 with the approval of Use Permit No. 3485. The staff report and minutes are attached (Exhibit No. 2). The establishment began operating in 1994. The Coastal Commission approved a modified project subject to conditions and the City Council later modified the conditions to conform to the Coastal Commission special conditions. Coastal Development Permit 5 -93 -137 is attached with the Coastal Commission's staff report and deed restriction (Exhibit No. 3). In September 1999, the City Council approved an amendment to the Use Permit to allow full alcoholic beverage service while amending and adding conditions of approval. The staff reports and minutes from the 1999 amendment are attached (Exhibit No. 4). When the use was established, the neighborhood was different, as fewer residences were located nearby. In the last several years, new mixed -use projects have been constructed and occupied, and residential uses are now located in much closer proximity to the use. Since the last meeting, staff has met with the Brewing Company and concerned residents to identify the problems and potential solutions. The operator has had their attorney prepare a letter on their behalf indicating their position on the primary issues and conditions of approval. Additionally, the letter outlines several steps the operator is willing to consider (Exhibit No. 5). DISCUSSION The Cannery Village area is evolving and the residential component of this mixed use village is emerging. This transition is a result of specific General Plan and Zoning changes adopted in the late 1980's and early 1990's. While some might argue that the Brewing Company was there first and the new residents should have known before they bought into the neighborhood, it is also reasonable for a business to recognize the nature of the neighborhood in which it is located and to adapt its operation to ensure compatibility with the neighborhood. At the time the Use Permit was approved in 1993, the City applied a standard requirement that should the operation of the Brewery be found detrimental to the community, the Planning Commission (or City Council on appeal) can add or modify conditions of approval. The unstated purpose would be to address objectionable aspects of the operation to alleviate problems. Newport Beach Brewing Company August 17, 2006 Page 3 Complaints against the operation fall into the following categories: • Operation of a bar rather than a restaurant • Violations of conditions of approval • Objectionable behavior of patrons during late evening and early morning hours both on and off -site • Noise from property maintenance activities Those aggrieved believe that the use constitutes a nuisance especially after approximately 10:30PM when the use operates more like a bar than a restaurant. There seems little objection to the use prior to the end of traditional meal service. The Brewing Company is required to close at 11:OOPM Sunday through Thursday and 1:OOAM on Friday and Saturday. What is a restaurant/brewpub? The City authorized a "restaurant/brewpub" and prohibited a bar, cocktail lounge, nightclub, live entertainment venue or any other use that serves alcoholic beverages during hours not corresponding to regular meal service (Condition No. 10). Condition No. 10 reads: "The approval of this use permit is for a restaurant/brewpub and shall not construed as the approval of a bar, cocktail lounge, or other use serving alcoholic beverages during hours not corresponding to regular meal service hours (food products sold or served incidentally to the sale or service of alcoholic beverages shall not be deemed as constituting regular meal service) nor as the approval of a cabaret, nightclub, or other use with the principal purpose of providing live entertainment and /or dancing." It is clear that a restaurant is authorized. In staffs opinion, a brewpub is simply a restaurant or bar where the beer is made on the premises and sold. The definition of a brewpub might not include the term bar as differing definitions are found using different dictionaries. Staff believes that the City authorized both a restaurant and a bar and it can be reasoned that the use cannot be any one of the prohibited uses listed as a primary use as the restaurant is the primary use. Does the restaurant have to be open at the same time? Traditionally, the City requires the kitchen to be open at all times for meal service. In this case, no requirement was made other than the reference contained within Condition No. 10. it can also be argued that the brewing of beer is also necessary, although this is not at issue unless the brewing of beer contributes to any nuisance. The kitchen is reported to be open at all times; however, a limited menu of appetizers is available in the late evening. The City did receive a report from a resident indicating that they were told that the kitchen was closed at approximately 11:00 PM on August 5th (Exhibit No. 6). Newport Beach Brewing Company August 17, 2006 Page 4 The use operates predominately like a bar after approximately 10:30PM. It is staffs opinion, the use, as a whole, is primarily a restaurant as it operates as a restaurant during the majority of its operating hours. Some believe that the City permitted a restaurant based upon the description of the use put forth during the use's original hearings in 1993. Although the restaurant use was marketed as the primary activity, the applicant described the proposed use in 1993 an eating and drinking establishment." The late evening and early morning hours authorized reflect an understanding by decision makers that the use could take on a bar -like character since it is well known that traditional meal service after approximately 11 PM is rare. This recognition is also supported by calling the use a brewpub, which is a reference to a drinking establishment unless one believes that a brewpub can not be a bar. Staff believes that the use is prohibited from operating as a bar (or any use described as prohibited within Condition No. 10) without the restaurant being considered the primary use. The real question in staffs mind is whether or not the restaurant/brewpub is creating a nuisance that requires specific action. That may be the case; however, if the Planning Commission believes that the use. cannot take on a bar -like character in the late evening, eliminating that aspect of the use would be necessary through Commission action to modify the conditions and or findings that would describe the use. Given that the majority of the complaints relate to late evening hours, the simplest solution would be to curtail the hours of operation. The operator's attorney has offered clarification of Condition No. 10 by suggesting the following language be added: "regular meal service hours means the meal service hours regularly established by the restaurant/brewpub. The service of alcoholic beverages during regular operational hours of the restaurant/brewpub that do not include meal service is prohibited." Staff is not comfortable with this language without understanding what meal service hours the operator has established and whether or not it would change in the future. If the term regular meal service requires clarification, staff suggests that the Commission establish the meaning of the term; however, if specific hours are identified, the second sentence appears to prohibit alcohol service outside those hours. Is alcohol "ancillary "? (Condition No. 9) Condition No. 9 states that, "the operation of the brewery and the service of alcoholic beverages shall be ancillary to the primary food service operation of the restaurant." The Zoning Code defines an ancillary use as "a use that is clearly incidental to and customarily found in connection with the principal use; is subordinate to and serves the principal use; is subordinate in area, extent, or purpose to the principal use served; contributes to the comfort convenience, or necessity of the operation, employees, or customers of the principal use served..." Newport Beach Brewing Company August 17, 2006 Page 5 Some believe that the fact that the use operates more in the character of a bar in the late evening with little food sales, the use is in violation of this condition. Furthermore, the General Manager admitted at the last meeting that the sale of alcohol is roughly 90% after 11 PM and that it is roughly 50% during the day. Is alcohol ancillary to food service? Although one can conclude that alcohol may not be ancillary to food service, an alternative interpretation exists in that the operation of the use cannot occur without the restaurant. If the facts show that alcohol is not clearly incidential to food service, the Commission should amend the condition to achieve a desired outcome. The applicant has suggested a modification to the condition "The service of alcoholic beverages shall be ancillary to the primary restaurant/brewpub service operation of the restaurant Accordingly, alcoholic beverage service is not permitted independent of restaurant food or brewpub services." Although this language could be applied, it changes the nature of the condition. First, it excludes the operation of the brewery itself (retail sales of beer for off- site consumption) and it changes the regulatory relationship between alcohol service and food service. The new relationship proposed would be limited to alcohol sales and the use entirely as opposed to food service specifically. The suggested change also modifies the nature of the use to indicate that alcoholic beverage service cannot be an independent use. As noted previously, in similar cases, the City has required the kitchen to remain open at all times. Simply opening the kitchen would not necessarily change the nature of the use after approximately 10:30PM as most patrons appear to be more interested in alcohol service. If it is determined that alcohol service should be curbed to be clearly incidential to food service at all times given the definition of ancillary, staff would suggest that the hours be limited to midnight or 11 PM as alcohol service prior to these hours can more easily be viewed as incidential. Simply requiring the sale of alcohol to be below a specific percentage of sales may or may not achieve a desired outcome and it presents enforcement issues. If it is believed that the use is being operated as intended, the condition should be amended to facilitate the use while reducing conflicting interpretations or application. How much area is permitted before 5PM? (Condition No. 6) Condition No. 6 requires a reduction of net public area prior to 5PM weekdays. Staff has monitored this condition periodically and has never observed a violation as the portion of the dining area designated to be closed prior to 5PM has been closed when observed. The condition does not apply to weekends and the full dining room is open on weekends. The Coastal Commission required the same reduction in net public area although their condition does not indicate when the condition is applicable. Coastal Commission staff has indicated that the limitation applies daily and the issuance of the Coastal Development Permit was predicated on the City's commitment to enforce the special condition. In a letter date stamped "received October 13, 1993 by the Coastal Newport Beach Brewing Company August 17, 2006 Page 6 Commission," the City agreed to enforce the City's limitation that applied Monday through Friday (Exhibit No. 7). Coastal Commission staff must have accepted this commitment as there is no evidence to the contrary and they issued the Coastal Development Permit shortly in early 1994. Is there a lack of control of patrons in the parking lot? Standard Requirement D requires the applicant to take "reasonable steps to discourage and correct objectionable conditions that constitute a nuisance" either occurring on site or in the areas surrounding the establishment that are directly related to patrons of the establishment. Many objectionable conditions have been reported, from patron behavior to noise. Primarily on Friday and Saturday evenings after approximately 10:30PM, the establishment is close to capacity and there is a queue of several dozen patrons waiting to get in. These people congregate in the parking lot and they can be boisterous. Although the applicant indicates that restrooms are made available upon request, people have been reported using the alley and adjacent properties as a toilet. When the establishment closes, patrons have a tendency to loiter and again they can be boisterous as they leave. In some cases, patrons wander to another night spot that has later hours of operation and these people return later in the early morning hours to retrieve vehicles and can be more of a nuisance. The operator has expressed a willingness to tow cars from their lot after they close. The effectiveness of this proposal is unknown and it might simply disperse the issue further into the neighborhood. Fights, sexual encounters and vandalism have been reported to staff during the late evening and early morning hours. The difficulty is determining where these people are coming from and whether or not an establishment should be held responsible. Some of these incidents may not be attributable to the restaurants or bars in the area let alone the applicant. Obviously, the individuals who are committing these acts are responsible, but it is reasonable to assume that most of these reported incidents are related to the sale of alcohol and the concentration of restaurants and bars in the area. Has the Brewing Company taken all reasonable steps to discourage and correct objectionable conditions attributable to their patrons when they are open? The applicant provides 3 -5 security guards who make sweeps of the parking lot and attempts to control patrons waiting for entry. They discourage loitering on site in the parking lot when they leave. Signs have been posted to alert patrons to be respectful of neighbors as they come and go. Staff requested that the applicant prepare an enhanced security plan in an effort to show how they can be more effective, and the applicant has not provided their security protocols. Residents who live overlooking the parking lot report that the applicant has not done enough especially in the light that the City has stepped up monitoring since receiving the initial complaints. Newport Beach Brewing Company August 17, 2006 Page 7 One resident has suggested that the entrance of the facility be relocated to the street side of the building. The main entrance is from the parking lot and if the main entrance were located between the building and Newport Boulevard, even if only during the late evenings, one might experience a reduction in activity in the parking lot. This would benefit the residents to the east and south that abut the parking lot but it would not eliminate all activity in the parking lot; however, it might simply create other impacts to the west. The patio and the landscaping would need to be physically modified to accommodate the patron queue and modified entrance and in staffs opinion, the parking lot entrance is likely acceptable up until approximately 9:OOPM. This concept has trade offs and it might be worthy of additional consideration if the Commission directs. Based upon the applicant's letter and follow up communications, they appear to be willing to consider this alternative during the late evening hours. Although some nuisance issues are not attributable to patrons, the applicant is proposing to cover and secure the trash enclosure. Since the closest housing is about roughly 20 feet away and is 2 -3 stories in height, this should help these residents. Condition No. 14 requires screening of the trash enclosure. The applicant proposes to change the method in which recycling of bottles is handled to reduce noise. Dumping bottles into a metal trash bin will make an objectionable noise especially when it is done around 2AM. The applicant proposes to place the bottles in plastic bins within the interior of the restaurant and then the bins would be loaded onto a truck. The applicant has also expressed his commitment to schedule all waste pickup (trash, recycling & grease trap vactoring) at more reasonable hours of the day. All of these offerings are steps in the right direction. Are the owner, manager and employees properly trained? In the applicant's letter, they are offering to have all applicable employees complete alcohol service training. Standard requirement F requires the owner, manager and all employees to undergo and successfully complete certified training program on responsible sales and service of alcohol. Although this condition indicates that compliance is required within 6 months from permit issuance, no information regarding initial or ongoing compliance was available. Staff recommends that this condition be amended to reflect the need to make this condition perpetual and that a report be submitted annually by the applicant documenting compliance with this condition as the applicant's staff changes over time. Staff has requested confirmation that the owner, managers and employees have or will soon complete this required training, but to date, the operator has not provided any additional information other than their letter. Summary In the prior report, staff wrote that the complaint indicates that the operator has no regard for the neighborhood and it was staffs impression that this statement was not correct as they seemed reactive to addressing the complaints. Staff believes the Newport Beach Brewing Company August 17, 2006 Page 8 applicant is willing to make improvements and modify their operation to address neighbor concerns, but based upon the operator's brief response letter (Exhibit No. 5), the applicant seems to be seeking specific guidance from the City. Although the applicant has made some efforts to address the neighborhood complaints, lingering issues remain. Clarification of several conditions of approval is necessary depending upon how the Commission views the nature of the operation. Staff recommends the following: 1. Condition No. 9 should be modified to eliminate the conflict between the term ancillary and the true nature of the operation. 2. Condition No. 10 should also be modified to clarify what is permitted and what is not. 3. Require that a screening cover be constructed on the trash enclosure. 4. Require that a new entrance be implemented on the Newport Boulevard side of the building for use after 9:00 PM Thursday through Sunday. 5. Require the preparation of a detailed security plan and its implementation. The Planning Commission can direct staff and the applicant to implement the items listed above. The Commission can add or modify the list of potential changes to this Use Permit. Staff would return with the changes to the conditions and the change to the plans for the Commission to review at a future hearing. If testimony received supports revocation, the action can be delayed to a future noticed public hearing as revocation was not an identified option within the notice for this hearing. The Commission also has the option to continue to monitor the situation and direct no changes at this time. Prepared by: Submitted by: Ja es Campbell, 8eni'd Planner Attachments: atricia L. emple, R anning Director 1. Staff report and minutes from May 4, 2006 2. Staff report and minutes from 1993 for Use Permit No. 3485 3. CDP 5 -93 -137 and supporting documents 4. Staff report and minutes from 1999 amendment of Use Permit No. 3485 5. Letter from the applicants attorney dated August 8, 2006 6. E -mail from Joe Reiss dated August 9, 2006 7. Letter from City to Coastal Commission regarding enforcement of net public area Exhibit No. 1 CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT Agenda Item 3 May 4, 2006 TO: PLANNING COMMISSION FROM: James Campbell, Senior Planner FILE COPY (949) 644 -3210, iampbell (Wcity.newport- beach.ca.us SUBJECT: Newport Beach Brewing Company 2920 Newport Boulevard INTRODUCTION On April 20, 2006 under public comments, the Planning Commission received a letter from The Cannery Village Concerned, which is a group of residents, property owners and business persons in Cannery village, 4ontending that the Newport Beach Brewing Company is violating its Use Permit (Exhibit No. 1). The letter goes on to request that the Use Permit be reviewed by the Planning Commission. The Commission requested that a report be prepared. RECOMMENDATION Receive and file. DISCUSSION Background: The current use was established in 1993 with the approval of Use Permit No. 3485. A former market/deli was converted into the existing restaurant/brew pub and a 600 square foot outdoor patio was approved. The property is located at 2920 Newport Blvd. in the Specialty Retail area of the Cannery Village /McFadden Square specific plan. The Use Permit was approved subject to revisions of the off -site parking agreement which would have allowed the applicant to use 29 parking spaces in the Cannery Village Municipal parking lot prior to 5 p.m. However, at the Coastal Commission hearing in July, the staff and Coastal Commission disagreed with the action that had been taken by the City and it was their determination that the use of the 29 parking spaces in the city lot would conflict with the public's ability to use the parking lot prior to 5 p.m. NI Newport Beach Brewing Company May 4, 2006 Page 2 The Coastal Commission approved a modified project subject to four conditions: 1) that the applicant record a deed restriction which would allow not more than 1500 square feet of service area being used prior to 5PM ; 2) that 41 off -site parking spaces will be maintained between 6AM and 5PM and 67 off -site parking spaces between 5 p.m. and 2 a.m., (the 41 off -site parking spaces between 6AM and 5PM are on privately owned property under the same ownership immediately adjacent to the brewpub and the additional spaces would be in the Municipal lot prior to 5 p.m.; 3) that the City Council %foscind`its'Oarildeoction allowing the use of the off -site parking spaces in the Municipal "1oLpfi6r to.tPM; 4) that the City will agree to enforce the restrictions on the area of service (the 1500 square feet being used prior to 5PM). The City Council later modified the project and conditions to conform to the Coastal Commission special conditions. In September 1999, the City Council approved an amendment to the Use Permit to allow Newport Beach Brewing Company full alcoholic beverage service as well as amending Condition No. 7 related to the hours of operation on Fridays and Saturdays. The final revised findings and conditions of approval are attached. DISCUSSION The letter Mr. Low presented to the Commission on April 20th was received back in January of 2006. Since that time, Code Enforcement, Planning and Police Department staff have been investigating and monitoring the use. Police and Code Enforcement have meet with concerned residents and management of the Brewing Company. As a result, the Brewing Company has been taking steps to reduce incidents that are attributable to their patrons as well as to ensure that the use is operated in compliance with condition. They have increased their efforts to control the parking area by monitoring and controlling the people waiting to enter the establishment and they have increased sweeps of the parking lot by security personnel. `The' Police Department reports that there were 14 calls for services that are reasonably " attributable to the operation since June of 2005. Seven of the calls were for noise in the parking lot. There was one fight at the establishment and one arrest of an unconscious drunk man in the parking area although it is not known if the man was a patron at the Brewing Company. The Police Department does not believe that the number of calls and incidents are above average. The Department has stepped up patrols and is monitoring the establishment. Checks to date have shown no violations of their ABC license nor any violations of State law related to serving intoxicated or underage individuals. The Department of Alcoholic Beverage Control has been contacted and has informed the City that they are conducting an investigation as a result of the complaints submitted by Mr. Low. The investigation is not complete and staff will follow up with ABC staff and will take action if appropriate. (X Newport Beach Brewing Company May 4, 2006 Page 3 Alleged Use Permit Violations Condition No. 6- Net public area (NPA) limitation This condition requires a reduction of net public area prior to 5PM weekdays. Staff has monitored this condition periodically and has never observed a violation as the portion of the dining area designated to be closed prior to 5PM has always been closed. The condition does not apply to weekends. The complaint indicates that the Coastal Commission special condition applies daily and that the Condition No. 6 was not amended correctly to reflect what the Coastal Commission requires. The Coastal Commission's condition requires that a deed restriction be recorded and it makes no reference to when the net public area restriction would apply. Staff has requested a copy from Coastal Commission staff and will transmit it to the Commission when it is received. Prior to Coastal Commission consideration, the City's original condition applied the area limitation to weekdays and not weekends and this would have been the starting point for discussion with the Coastal Commission. There is no record in the City's possession to indicate that the Coastal Commission intended to limit the net public area on weekends; however the deed restriction may shed some light on the issue. When the City amended its conditions after Coastal Commission action, the City maintained the NPA limitation to weekdays so one can safely conclude that changing it was not an issue with the City at that time. 2. Condition No. 9 - Ancillary alcohol sales The complaint does not provide any evidence of a violation. The condition does not provide any method to gauge compliance. The condition could be modified in the future to indicate a percentage-of alcohol sales to food sales. 3. Condition No. 10 —Bar prohibition This condition indicates that the allowed use is a "restaurant/brewpub" and it prohibits the use from becoming a bar, cocktail lounge, or other use serving alcoholic beverages during hours not corresponding to regular meal service. It is staffs belief that the use remains primarily a restaurant/brewpub although the use takes on characteristics of a bar during late evening hours. A strict interpretation of this condition would prohibit alcohol sales outside traditional meal times; however, the operation is open to 11 PM Sunday to Wednesday and 1 AM from Thursday to Saturday. The City has taken the position with similar uses that so long as the operator provides full meal service when open, the use would not be considered a bar. Staff understands that the operation has a limited menu later in the evening primarily consisting of appetizers. 15 Newport Beach Brewing Company May 4, 2006 Page 4 4. Condition No. 17 — BBQ usage and alcohol use in the parking lot Condition No. 17 requires a special events permit for events or promotional activities outside normal operational characteristics of the use that would attract large crowds. The complaint speaks to the use of a BBQ and the consumption of alcohol in the parking lot. The Use Permit does not prohibit the use of a BBQ and the operator must not interfere with the use of the parking lot or exiting. The consumption of alcohol by anyone outside of the building or patio is not consistent with the operating characteristics and would constitute a violation. 5. Condition D — Objectionable conditions The complaint indicates many objectionable activities. As noted previously, the operator has agreed to monitor and moderate the activities in the parking lot. Further monitoring of the operator's efforts is needed. Some of the complaints regarding patron behavior are violations of law and if witnessed, the Police Department should be summoned. Due to the fact that the Police Department cannot patrol the establishment as often as possibly necessary, uniformed security in addition to the bouncers on the busiest nights may be considered. With regards to the trash area and trash dumping, the operator indicates that they have instructed their employees to secure the trash area and dump trash in a more sensitive manner. The trash dumpster is not located in a superior location as newly constructed residential units, including Mr. Low's unit, are located in close proximity. One simple way to eliminate trash dumping noise after hours is to prohibit it with a new condition. Trash would then need to be stored within the building or possibly on the patio overnight and dumped in the morning as a reasonable hour assuming that this practice is consistent with the Health Department' rules. Staff is looking into the possibility of relocating or covering the trash enclosure. 6. Condition E — grounds maintenance This condition requires the operator to remove all trash or debris from the property and sidewalks daily. The operator indicates that they will ensure compliance with this condition. Staff has visited the site on several occasions since receiving the initial complaint letter and found the site to be free of trash as required. 7. Condition F — Employee alcohol service training The operator has been directed to submit evidence of compliance with this condition. IA Newport Beach Brewing Company May 4, 2006 Page 5 Summary The complaint indicates that the operator has no regard for the neighborhood. Staffs collective impression is that this statement is not correct as the operator has been responsive to addressing the nuisances that do occur from time to time at the establishment. The complaint is correct in that the Cannery Village is a neighborhood in transition. Several mixed use projects have been built and occupied in the immediate area of the NBBC and staff believes that the trend will continue. Staff does not agree with the complainant's contention that the Council erred in the approval of this operation. The NBBC has been co- existing fairly well, although not perfectly, with the neighborhood since 1993. Staff agrees with the complainant in that the immediate neighborhood is changing with the introduction of additional residents. The neighborhood is a mixed use neighborhood in which nuisances do and will occur more often than purely residential neighborhoods. The applicant is aware of fact that it is their responsibility to be a good neighbor as well as the fact that they must comply with the Use Permit. They have been responsive to living up to their obligations and staff believes that continued monitoring is needed. The City will continue to monitor the situation and take enforcement actions necessary to ensure compliance with the Use Permit. Potential courses of action The Planning Commission can set this use permit for review and possible amendment or revocation at a future noticed public hearing. This agenda item is for discussion purposes only and no amendments to the conditions can be made at this time. Prepared by: Submitted by: � W ri-WO �A Yines Campb 11, Senior Planner Attachments: 1u 4 Patricia L. Temple, Planning Director Complaint letter from The Cannery Village Concerned Current conditions of approval J5 The Cannery Village Concerned A group of residents, property owners and business persons In the Cannery village January 25, 2006 City of Newport Beach 330 Newport Boulevard Newport Beach, California 92663 Attn: Code Enforcement Pollee Department Planning Commission RE Newport Beach Brewing Company 2920 Newport Boulevard, Newport Beach Use Permit Number 3485 (9/13/1999) Dear Sir /Madame: The purpose of this letter Is to request compliance enforcement with "Use Permit" number 3485, Issued to the Newport Beach Brewing Company and a formal request for a "Use Permit" review by the Planning Commission. BACKROUND: The Newport Beach Brewing Company, hereinafter referred to as (NBBC), operates a restaurent/pub at the above location, which was established on or about 1990. The most recent "Use Permit" was granted in 1999, subsequent to a request by NBBC to add an ABC No. 75 alcohol license, which allowed the NBBC to add hard liquor, over and above, beer and wine (ABC type 23 license) at the subject location. The Planning Commission denied the request The request was overturned and approved by the City Council. The applicant's main argument for the addition of the ABC 75 alcohol license as stated by Keith Vohr, a shareholder in the NBBC, "the Idea of adding alcohol service, Is to stay competitive and Improve the restaurant." Additionally, the applicant represented "We have from day one attempted to be more of a restaurant than a bar." And "We are not and do not have any desires to become a nightclub.. " And Roz Salomon, the owner of NBBC stated 9 live In the area and will do everything possible to maintain harmony." And Mike Madlock, vice president of NBBC, represented "As a local resident, I want to keep peace in the neighborhood. One of the problems that existed in the past Is being taken care of with the closing of Snug Harbor and the Cannery Restaurant." (Above quotas from Planning Commission minutes August 5, 1999 and "Supplemental Information for Agenda Item No. 17 dated 9/13/99. Both documents are enclosed). Upon the representations of the applicant, the Planning Commission and the California Coastal Commission imposed conditions upon the applicant's "Use Permit." The Planning Commission and the California Coastal Commission anticipated the "parade of horribles" with rasped to the neglectful behavior of the NBBC, however; after Planning Commission denial and an appeal by the NBBC, the City Council approved the NBBC request. The City Council did not fully consider the needs of the Cannery Village "mixed use" community In transition and was over optimistic with respect to Exhibit No. 1 16 the operators of the NBBC and the adverse Impact of the NBBC to the health, safety, peace, morals, comfort and general welfare of the community. ERROR IN "USE PERMIT": The California Coastal Commission Imposed conditions on the NBBC. The conditions are Incorporated In the "Coastal Development Permit" dated January 21, 1994. (Copy enclosed) Under "Special Conditions" Item 1. "Deed Restriction Limiting Daytime Use" specifically elates "... no more than 1,500 square feet of service area of the subject restaurant/brewpub shall be open before 5 p.m The California Coastal Commission, at It's meeting in July 1993, made a determination that the offsite parking agreement between the NBBC and the City of Newport Beach "would conflict with the public use of the same spaces prior to the hour of 5 p.m. and therefore took action to modify the approval, subject to four conditions ... 4) that the City will agree to enforce the restrictions of the area of service (the 1500 square feet being used prior to 5 p. m.)". (quote from the City of Newport Beach Council meeting minutes of September 27, 1993 volume 47 pages 253 & 254 (copy enclosed)). Furthermore, When Mayor Turner opened the public hearing on "Use Permit" number 3485, he specifically stated `reduce the allowable daytime "net public area" to 1500 square feet before 5:00 p.m." (Council Meeting minutes Volume 47 page 253 Item 9} "James Person, representing the applicant, stated they feet this Is a reduction of intensity of use from the time It was approved by the City Council last March; however they do agree to the conditions of approval Imposed by both the City and the Coastal Commission." (Council Meeting minutes September 27, 1993 Volume 47 page 254). The "Ike Permit" as executed on September 13,1999 (copy enclosed) mistakenly, In condition number 8, only restricts the 1500 square feet of net public area devoted to daytime use on Monday through Friday. it does not Include Saturday and Sunday which was a specific condition of the California Coastal Commission and the City Council. We are unable to find any evidence to the contrary. Therefore, we request a review of "Use Permh" 3485 to correct the serious error in the wording of the "Use Permit" and the Planning Commission needs to review the °Use Permit" to ensure that the health, safety, peace, morals, comfort and general welfare of the community are protected. JURISDICTION and CONTROL The City of Newport Beach has jurisdiction over the NBBC and Is obligated to enforce the conditions of the "Use Permit" Imposed by the City of Newport Beach and the California Coastal Commission. The City of Newport Beach has control over the NBBC and may review the "Use Permit" under section (K.) of said permit K. The Planning Commission may add or modify conditions of approval to this use permit upon a determination that this use permit causes Injury, or IS detrimental to the health, safety, peace, morals, comfort, or general welfare of the community. POLICE DEPARTMENT COMPLAINTS: The Newport Beach Police Department has been called repeatedly to correct infractions and disturbances by the NBBC. The police department generally responds to the complaints by residents, property owners and business persons. It Is dear the police department is "numb" and the neighborhood Is "frustrated and outraged" from the frequent Infractions and disturbances; however, it Is not acceptable that most police officers cannot do very much to resolve the complaints and verbally respond to the neighborhood by saying "you should not live next to a bar." We respect the ) 7 authority of the Police Department; however, the rights of all parties deserve the protection afforded by the applicable codes and laws. SPECIFIC CRITICAL VIOLATIONS: The NBBC blatantly violates, on a continual basis, several conditions of the "Use Permit.' Residents, property owners and business persons have attempted to effectuate responsible co- operation and adherence to the "Use Permit" by way of open dialogue with the owners and management of the NBBC. The dialogue felts on deaf ears. No change has occurred. A copy of the "Use Permit" Is enclosed and Incorporated with this document. The specific violations are as follows. 1 Condition 6. The NBBC operates In a net public area greater than 1,500 square feet prior to 5 pm dally. Routinely (weekends), and duringspeclal events sponsored by the NBBC (televised sporting events, a g. college sports, Super Bowl and World series, to mention a few) there is total disregard for this condition. z Condition 9. The operation of the NBBC and the service of alcoholic beverages Is not ancillary to the primary food service operation. 8. Condition 10. The NBBC Is a "bar, cocktail lounge, or other use serving alcoholic beverages... 4. Condition 17. The NBBC routinely cooks with a BBQ outside the front door (by the parking lot) on Saturdays and Sundays. Patrons and employees are permitted to consume alcoholic beverages in the parking lot during the'food service' operation from the BBQ. s. Condition D. The NBBC has failed to correct objectionable conditions that constitute a nuisance In the parking areas, sidewalks, alleys and areas surrounding the alcoholic beverage outlet and adjacent properties. a. The NBBC allows a noisy "cue -up" line in the parking lot In the day and night which can swell to 75 patrons, or more, waiting to gain entrance to the establishment. The patrons "scream and yell" In a party atmosphere wafting to gain entrance. b. There are no toilet facilities for the crowd. The patrons routinely vomit, urinate and defecate In the surrounding residences and business properties. . c. Patrons have been observed in various sexual acts In the stairways and earners of adjacent properties. Panties and bras are often found on the adjacent properties in the mornings. d. Destruction, by the drunken patrons; to private property and the. residences and businesses is a common occurrence. e. Slnceemoking is not permitted In the building, patrons are Instructed and permitted to smoke tobacco In the parking lot The patrons continue the "party atmosphere" with no regard for the peace or general welfare of the neighbors. f. Patrons loiter In the parking lot and adjoining areas, "screaming and yelling" sometimes for hours after the establishment closes. This prevents residents from sleeping In their homes usually until 8 am on Friday and Saturday and 1 am on many weekdays. The loitering of over-served patrons often erupts Into fights and confrontation. Y g. The trash containers.are full and left open. The disposal of "hops and barley" from the brewing operation are left open for the birds to eat at their leisure. The odor Is disgusting. The procedure of "cleaning up" the bar operation results in bottles and trash being dumped by employees well after the NBBC hours of operation have expired. 6. Condition E. The parking lot and surrounding areas are riddled with litter and trash which requires the residents and business owners to pick up trash continually to maintain an acceptable environment. 6. Condition F. The employees of the NBSC do not receive their certified training as required by the "Use Permit." The NBBC allows. unbearable conditions to exist, all of which are critical violations of the "Use Permit" The NBBC has no regard for their neighbors or neighborhood: in the spirit of "peaceful coexistence" and "civllity" the City of Newport Beach, the Alcohol and Beverage Control, The California Coastal Commission and the Newport Beach Police Department must act promptly and effectively to restore order to the neighborhood. Sincerely, The Cannery Village Concerned cc: Alcohol and Beverage Control California Coastal Commission Err "B" FINDINGS AND CONDITIONS FOR APPROVAL FOR USE PERMIT N0.3485 (AMENDED) APPROVED By Crrr COUNCIL 09 /13/1999 FINDINGS: 1847 1. The Land Use Element of the General Plan designates the site for "Retail and Service Commercial' uses and a restaurant/brewpub is considered a permitted use within this designation. 2. The project is located within the Cannery Village/McFadden Square Specific Plan (SP -6) - Specialty Retail (SR) District that permits eating and drinking establishments with a use permit. 3. On -sale alcoholic beverage outlets are permitted with the approval of a use permit. 4. This 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 1 (Existing Facilities). 5. The approval of the amendment to Use Permit No. 3485 to allow a full on -sale alcoholic beverage service 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, for the following reasons: The restaurant/brewpub use is compatible with the surrounding commercial and nearby residential uses since eating and drinking establishments are typically allowed in mixed commercial districts. Conditions have been added to address potential problems associated with traffic, parking, trash disposal, odors, and unsightly conditions. A Condition has been added to require a special events permit for any event or promotional activity outside the normal operational characteristics of this restaurant business. ii Exhibit No. 2 /8 b. The proposed project is consistent with the purpose and intent of Chapter 20.89 of the Zoning Code (Alcoholic Beverage Outlets) for the following reasons: ■ The convenience of the public will be served by the sale of distilled beverages in a restaurant/brewpub setting. The project is in an area where the crime rate exceeds the citywide average by more than 20 %. However, there is no evidence that this high crime rate is attributable to the proposed project. The number of alcohol licenses per capita in the reporting district and adjacent reporting districts is above the average for Orange County. However, the project has the only alcohol license for a brewpub, and the convenience of the public can be served by the sale of distilled spirits in a restaurant/brewpub setting. The percentage of alcohol - related arrests in the reporting district in which the project is proposed and in the adjacent reporting district is higher than the percentage of alcohol - related arrests citywide. However, there is no evidence that the alcohol- related arrests are attributable to the project. No day care centers, places of religious assembly, park and recreation facilities, or schools are located in the vicinity of the project site. Residential uses are located in the vicinity of the project site. However, the project has been conditioned so as to address any potential impacts. CONDITIONS: 1. The proposed development shall be in substantial conformance with the approved site plan, floor plan and elevations, except as noted below. 2. That a covenant or other suitable, legally binding agreement shall be recorded against the off -site parking lot assuring that all of the requirements of Section 20.63.080 (I) of the Municipal Code, will be met by the current and future property owners. Said covenant or agreement may include provisions for its future termination at such time as the development on the building site is removed or at such time as the floor area devoted to the restaurant/brewpub reverts back to a base FAR use. The applicant shall provide a minimum of one parking space for each 50 square feet of net public area before 5:00 p.m. and one parking space for each 40 square feet of net public area after 5:00 p.m. in conjunction with the restaurant/brewpub. 4. An amended off -site parking agreement shall be approved by the City Council, guaranteeing that a minimum of 41 parking spaces shall be provided on property iii �. located on .Lots 18 -21 and portions of Lots 17 and 22, Block 230, Lancaster's Addition, for the duration of the existing and proposed uses located on Parcel 1, Parcel Map 92 -40 (Resubdivision No. 527). S. The property owner shall pay for 29 in -lieu parking spaces in the Cannery Village Municipal Parking Lot on an annual basis for the nighttime operation (after 5:00 p.m.) of the restaurant/brewpub use as agreed upon by the Sales Agreement between the City of Newport Beach and the property owner. 6. The net public area of the restaurant/brewpub, which is devoted to daytime use Monday through Friday (prior to 5:00 p.m.) shall be limited to 1,500 square feet. The balance of the net public area shall be physically closed off to the public by a fixed barrier and shall not be used until after 5:00 p.m. daily. The hours of operation for the restaurant/brewpub shall be limited to the hours between 6:00 a.m. and 11:00 p.m. Sunday through Thursday and between 6:00 a.m. and 1:00 a.m. on Friday and Saturday. 8. All employees shall park either in the privately owned off -site parking area or in one of the municipal parking lots in the area. 9. The operation of the brewery and the service of alcoholic beverages shall be ancillary to the primary food service operation of the restaurant. 10. The approval of this use permit is for a restaurant /brewpub and shall not be construed as the approval of a bar, cocktail lounge, or other use serving alcoholic beverages during hours not corresponding to regular meal service hours (food products sold or served incidentally to the sale or service of alcoholic beverages shall not be deemed as constituting regular meal service) nor as the approval of a cabaret, nightclub, or other use with the principal purpose of providing live entertainment and/or dancing. 11. No outdoor loudspeakers or paging system shall be permitted in conjunction with the proposed location. 12. A washout area for refuse containers shall be provided in such a way as to allow direct drainage into the sewer system and not into the Bay or storm drains, unless otherwise approved by the Building Department. 13. Kitchen exhaust fans shall be designed to control smoke and odor to the satisfaction of the Building Department. 14. All mechanical equipment and trash areas shall be screened from surrounding public streets and alleys and adjoining properties. 15. The development standards regarding walls surrounding the restaurant site and underground utilities shall be waived. iv 16. Should prerecorded music be played within the restaurant facility, such music shall be confined to the interior of the building, and all doors and windows shall be kept closed while such music is played. 17. A special events permit is required for any event or promotional activity outside the normal operational characteristics of this restaurant business that would attract large crowds, involve the sale of alcoholic beverages, include any form of on -site media broadcast, or any other activities as specified in the Newport Beach Municipal Code to require such permits. 18. Should this business be sold or otherwise come under different ownership, any future owners or assignees shall be notified of the conditions of this approval by either the current business owner, property owner or the leasing company. STANDARD CITY REQUIREMENTS: A. The project is subject to all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. B. Signs and displays shall not obstruct the sales counter, cash register, seller and customer from view from the exterior. C. Loitering, open container, and other signs specified by the Alcoholic Beverage Control Act shall be posted as required by the ABC. D. The applicant shall take reasonable steps to discourage and correct objectionable conditions that constitute a nuisance in parking areas, sidewalks, alleys and areas surrounding the alcoholic beverage outlet and adjacent properties must be taken during business hours if directly related to the patrons of the subject alcoholic beverage outlet. E. The exterior of the alcoholic beverage outlet shall be maintained free of litter and graffiti at all times. The owner or operator shall provide for daily removal of trash, litter debris and graffiti from the premises and on all abutting sidewalks within 20 feet of the premises. F. All owners, managers and employees serving and/or selling alcoholic beverages shall undergo and successfully complete a certified training program in responsible methods and skills for serving and selling alcoholic beverages. To qualify to meet the requirements of this section a certified program must meet the standards of the California Coordinating Council on Responsible Beverage Service or other certifying/licensing body, which the State may designate. The establishment shall comply with the requirements of this section within 180 days of the issuance of the certificate of occupancy. gI 11 � • n � s G. The project.will comply with the provisions of Chapter 14.30 of the Newport Beach Municipal Code for commercial kitchen grease disposal. H. All signs shall conform to the provisions of Chapter 20.67 of the Municipal Code. I. This use permit for an alcoholic beverage outlet granted in accordance with the terms of this chapter shall expire within 12 months from the date of approval unless a license has been issued or transferred by the California State Department of Alcoholic Beverage Control prior to the expiration date. J. Coastal Commission approval shall be obtained prior to issuance of any building permits. K. The Planning Commission may add to or modify conditions of approval to this use permit upon a determination that this use permit causes injury, or is detrimental to the health, safety, peace, morals, comfort, or general welfare of the community. vi Exhibit No. 2 a3 Planning Commission r tting February 18 1993 Agenda Item No. 3 CITY OF NEWPORT BEACH TO: . Planning Commission FROM: Planning Department SUBJECT: Use Permit No. 3485 (Public Hearing) Request. to permit the establishment of a combination restaurant /brewpub with on -sale beer and wine, on property located in the "Specialty Retail" area of the Cannery Village /McFadden Square Specific Plan. The proposal also includes: the establishment of an outdoor patio dining area; the use of 29 previously approved in -lieu parking spaces located in the Cannery Village Municipal Parking Lot; the amendment of a previously approved off -site parking agreement so as to increase the number of privately owned off -site parking spaces to 41 spaces; and the approval of a transfer of development rights from the privately owned off -site parking area to the restaurant site. LOCATION: Parcel 1, Parcel Map 92-40 (Resubdivision No. 527) (restaurant site); and portions of Lots 17 and 22 and Lots 18 -21, Block 230, Lancaster's Addition (off -site parking lot) located at 2920 Newport Boulevard, on the southeasterly corner of Newport Boulevard (northbound) and 30th Street, in Cannery Village. ZONE: SP -6 APPLICANT: Michael Madlock, Manhattan Beach OWNER: Dorothy Doan, Santa Ana Application This application involves a request to permit the establishment of a combination restaurant /brewpub with on -sale beer and wine, on property located in the "Specialty Retail" area of the Cannery Village /McFadden Square Specific Plan. The proposal also includes: the establishment of an outdoor patio dining area; the use of 29 previously approved in -lieu parking spaces located in the Cannery Village Municipal Parking Lot; the amendment of a previously approved off -site parking agreement so as to increase the number of privately owned off -site parking spaces to 41 spaces; and the approval of a transfer of development rights from the privately owned off -site parking area to the restaurant site. In accordance with the provision of the Cannery Village /McFadden Square Specific Plan, restaurants are permitted in the "Specialty Retail" area subject to the approval of a use permit in each case. Section 20.07.070 of the Municipal Code also provides that the transfer of development a5 TO: Plan ',g Commission - 2. rights between two properties shall be subject to a use permit in each case. Use permit procedures are set forth in Chapter 20.80 of the Municipal Code. Environmental Significance This 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 1 (Existing Facilities). Subject Property and Surrounding Land Uses The subject property is comprised of two parcels of land. Parcel No. 1 contains a 7,276± sq.ft. commercial building with the Pelican Market on the ground floor (now vacant), offices on the second floor and 2 on -site parking spaces. Parcel No. 2 is a privately owned off -site parking area containing 41 parking spaces which the property owner has under a long term lease. To the north, across 30th Street is an automobile repair facility, a mixed commercial /residential development, a vacant lot and a stained glass shop; to the east is the Cannery Village Municipal Parking Lot; to the south, across a 14 foot wide alley is the Cafe Looma Restaurant (now vacant); and to the west, across Newport Boulevard are a variety of commercial uses. Background At its meeting of July 15, 1976, the Planning Commission approved Site Plan Review No. 1, which permitted the construction of the existing commercial building which at the time, was on property located in a Specific Plan Area where a spec plan had not been adopted. In such cases, any new development is subject to the approval of a Site Plan Review. Said approval also included a recommendation to the City Council to approve an off -site parking agreement so as to provide a minimum of 29 parking spaces on the adjoining parcel behind the building. It should be noted that the parking area at the rear of the building includes 2 on -site spaces and 41 off -site spaces. At the same meeting, the Planning _Commission approved Resubdivision No. 527, which permitted the establishment of a single building site for the two story commercial building and eliminated interior lot lines where two lots previously existed. The actions of the Planning Commission was taken with the findings and subject to the conditions of approval set forth in the attached excerpts of the Planning Commission minutes dated July 15, 1976. At its meeting of July 26, 1976, the City Council approved an off -site parking agreement which permitted the use of the off -site parking spaces described above. In 1988, the City of Newport Beach purchased the property identified on the attached Assessor's Map as the Cannery Village Municipal Parking Lot from the property owner. As a condition of the sale, the property owner was given an option to purchase 47 in -lieu parking spaces with the following stipulations: , TO: Plan: 9 Commission - 3. 1. The option must be exercised within two years of the close of escrow (April 8, 1988). It is noted that this option has been exercised by the property owner. 2. The use of the in -lieu spaces is limited to businesses on the Cafe Looma and the Pelican Market sites. It is noted that the property owner committed 18 of the 47 in -lieu spaces to the reestablishment of the restaurant known as Cafe Looma at 2900 Newport Boulevard (Use Permit No. 3343). 3. Any use of the in -lieu spaces would be for nighttime only, from 5:00 p.m. to 6:00 a.m. 4.- Any in -lieu spaces would be purchased at the current rate ($150.00 per space per. year), but not to exceed $500.00 during the first five years (from the exercise of the option). During the second five years, the rate would be 75% of the current rate or $500.00, whichever is less. After ten years, the rate reverts to the current rate set forth in the Municipal Code at the time. i The applicant is proposing to establish a combination restaurant and brewpub in the ground floor portion of the existing building. As represented in the attached floor plan for the facility, the brewery will occupy approximately 1,532± square feet (32 percent) of the total gross floor area of the restaurant which is approximately 4,776± square feet, including the outdoor dining area. The 'het public area" of the restaurant will be 2,532± square feet including a 600± square foot outdoor dining area which is proposed in the front of the restaurant. The applicant has indicated that there will be approximately 10 employees on duty during peak hours of operation, and the hours of operation will be from 6:00 a.m. to 11:00 p.m. Sunday through Thursday and from 6:00 a.m. to 2:00 a.m. on Friday and Saturday. Beer and wine will also be served. No live entertainment is proposed. A letter from the applicant describing the operation is attached for Commission review. Conformance with the General Plan and the Local Coastal Program Land Use Plan The Land Use Element of the General Plan and the Local Coastal Program Land Use Plan designate the site for 'Retail and Service Commercial" use. The proposed restaurant is a permitted use within this designation. Although the proposed brewery is not specifically listed as a permitted use in the 'Retail and Service Commercial' area, it occupies only 32 percent of the total floor area of the facility; therefore, it is staffs opinion that it is clearly an incidental use which is ancillary to the primary restaurant use and is therefore a permitted use. The Land Use Element also establishes area specific land use policies throughout the City. These "area" policies set a floor area ratio (F.A.R.) development limit of 0.5/0.75 FAR on Al TO: Plann...g Commission - 4. the subject property. Based on this requirement, the Base Development Allocation for Parcel 1 which is developed with the commercial building, is 0.5 times the site area or 4,159± square feet (8,319± sq.ft. x 0.5 = 4,159± sq.ft.). As indicated previously, the gross floor area of the existing building on Parcel 1 is 7,276± square feet or .87 FAR; therefore, the existing structure is nonconforming relative to allowable Floor Area Ratio. It is also noted that the proposed restaurant is classified as a Reduced FAR use and will occupy an existing commercial space previously used as a retail market. In cases such as this, where a commercial building is to be occupied by a combination of a Base FAR use (offices), a Reduced FAR use (restaurant), and a Maximum FAR use (brewery), Section 20.07.040 of the Municipal Code provides that the Base Development Allocation shall not be exceeded by the sum of the weighted square footages of each type of use. Weighted square footages are determined by multiplying the gross floor area of a given use by a weighted factor of 1.67 for Reduced FAR uses, 1.0 for Base FAR uses and 0.5 for Maximum FAR uses. The following table sets forth the weighted development for each type of uses within the proposed project: Type Use Square Footage x Weighting Factor = Weighted Development Office 3,100± sq.ft. x 1.0 = 3,100± sq.ft. Restaurant 3,244± sq.ft. x 1.67 = 5,417± sq.ft. Brewery 1,532± sq.ft. x 0.5 = 766± sq.ft. Total Weighted Development 9,283± sq.ft. Previous Weighted Development 7.276± sq.ft. Net Increase In Weighted Development 2,007± sq.ft. As indicated in the above table, the establishment of the proposed restaurant and brewpub will increase the weighted development on the property by 2,007± square feet. Inasmuch as Parcel 1 is nonconforming with regards to Floor Area Ratio, Section 20.07.070 G of the Municipal Code requires the elimination of the nonconforming FAR in conjunction with a transfer of development rights; and further, that the gross floor area following the intensity transfer shall not exceed the base development allocation permitted by the Code. In light of this requirement, it is necessary for the property owner to record a covenant or agreement which transfers 5,124± square feet of the 6,603± square feet (13,206± sq.ft. x 0.5 = 6,603± sq.ft.) of development rights of Parcel 2 to Parcel 1, thereby bringing the weighted development proposed on Parcel 1 to within the allowable 0.5 Base Development Allocation. Such a covenant may be worded so as to allow for a reversion of the development rights should the development on Parcel 1 be removed or the proposed restaurant be replaced by a Base FAR uses such as retail or service commercial, or offices. Off - Street Parking Requirement Based on the current restaurant parking requirement of one parking space for each 40 square feet of "net public area ", 64 parking spaces are required for the subject restaurant use (2,532± sq.ft. _ 40 sq.ft.= 633 or 64 spaces). It should be further mentioned that pursuant to Section 20.30.035 B(4) of the Municipal Code, the Planning Commission may a� TO: Plan. g Commission - 5. increase or decrease the parking requirement of a restaurant within a range of one parking space for each 30 sq.ft. of "net public area" (85 parking spaces) or one parking space for each 50 sq.ft. of "net public area" (51 spaces). It is staffs opinion that one parking space for each 40 square feet of "net public area" will be adequate in this case, inasmuch as there is no dancing or live entertainment proposed with the restaurant. In addition to the restaurant parking, the existing remaining offices on the second floor of the building require one parking spaces for each 250 square feet of floor area, or 12 parking spaces (3,000± sq.ft. -= 250 sq.ft. = 12 spaces). Therefore, the combined day -time parking requirement for the existing and proposed uses is 76 parking spaces. Inasmuch as a majority of the office uses on the property are closed after 5:00 p.m. during the week and on weekends, the nighttime and weekend parking requirement for the property is only 64 spaces. Proposed Off- Street Parking As indicated in the previous Background Section, there are 2 on -site parking spaces and 41 off -site parking spaces which are currently leased by the property owner and are for the exclusive unrestricted use of the proposed restaurant/brewpub and the second floor offices within the subject building. In addition, the property owner has 29 remaining in -lieu parking spaces in the Cannery Village Municipal Parking Lot; however, such parking may only be used between 5:00 p.m. and 6:00 a.m. Therefore, the subject property has 43 daytime spaces and 72 nighttime spaces after 5:00 p.m. Inasmuch as the second floor offices will be closed after 5:00 p.m. Monday through Friday and all day on Saturday and Sunday, the applicant is proposing to maintain a shared parking arrangement in order to satisfy the off - street parking requirement for the restaurant /brewpub. The following table sets forth the nighttime and daytime parking requirement for each use: Parking Requirement Type Use Daytime Nighttime and Weekends Offices 12 spaces 0 spaces Restaurant 46 spaces 64 spaces Total 76 spaces 64 spaces Parking Provided Daytime Nighttime and Weekends 12 spaces 0 spaces 1 spaces 72 spaces 43 spaces 72 spaces As indicated in the above figures, the available daytime parking for the restaurant is deficient by 33 parking spaces (64 spaces - 31 spaces = 33 spaces). Based on the available daytime parking for the restaurant (31 spaces) only 1,240 square feet of "net public area" would be permitted before 5:00 p.m. (31 spaces x 40 sq.ft. per space = 1,240 sq.ft.). In order to allow a greater amount of daytime "net public area" in the restaurant, the property owner is proposing to ask the City Council to remove the daytime restriction on the in -lieu parking spaces, which would provide 29 additional daytime parking spaces. Such an approval would increase the restaurant daytime parking to 60 spaces (31 private spaces + aq TO: Plan iwig Commission - 6. 29 in -lieu spaces = 60 spaces) which would allow up to 2,400 square feet of "net public area" in the proposed restaurant during the day. This means that 132± square feet of the proposed "net public area" could not be used until the second floor offices closed at 5:00 p.m. In previous similar situations, the Planning Commission has required a suitable portion of the "net public area" to be physically separated and identified for nighttime use only. Staff has included such a condition in the attached Exhibit "A" for approval. Proposed Amendment to Off Site Parking_Aereement As mentioned previously, the use of the privately owned off -site parking area was approved in conjunction with the original construction of the subject building and includes the provision,of a minimum of 29 parking spaces. Inasmuch as all 41 of the off -site parking spaces will be required as a result of this application, the property owner is required to amend its off -site parking agreement so as to reflect the current number of required parking spaces. Staff has no objections to an increase in the number off -site parking spaces associated with this application. Restaurant Development Standards Chapter 20.72 of the Municipal Code contains development standards for restaurants to ensure that any proposed development will be compatible with adjoining properties and streets. Said development standards include specific requirements for building setbacks, parking and traffic circulation, walls surrounding the restaurant site, landscaping, exterior illumination, signing, underground utilities, and storage. Section 20.72.130 of the Municipal Code states that any of the above mentioned development standards for restaurants may be modified or waived if such modification or waiver will achieve substantially the same results and will in no way be more detrimental to adjacent properties or improvements than will the strict compliance with the standards. Should the Planning Commission wish to approve this application, staff is of the opinion that the on -site development standards as they apply to walls surrounding the restaurant site, and underground utilities should be waived because of the existing developed nature of the site. Specific Findings Section 20.80.060 of the Newport Beach Municipal Code provides that in order to grant any use permit, the Planning Commission shall find that the establishment, maintenance or operation of the use or building applied for will not, under the circumstances of the particular case, be detrimental to the health, safety, peace, morals, comfort, and general welfare of persons residing or working in the neighborhood of such proposed use or be detrimental or injurious to property and improvements in the neighborhood or the general welfare of the City. Section 20.07.070 J of the Municipal Code provides that certain findings shall be made in conjunction with the approval of a transfer of development rights. Finally, Section 20.63.045 B requires certain findings to be made in conjunction with the approval of an off -site parking agreement. Should the Planning Commission wish to approve Use Permit No. 3485, the findings and conditions of approval set forth in the attached Exhibit Pup TO: Pla; : ;g Commission - 7. "A" are suggested. Should the Planning Commission wish to deny the application, the findings and conditions of approval set forth in the attached Exhibit "B" are suggested. PLANNING DEPARTMENT JAMES D. HEWICKER, Director By William Ward Senior Planner Attachments: Exhibit "A" Exhibit "B" Vicinity Map Assessor's Parcel Map showing location of restaurant site, off -site parking area and Cannery Village Municipal Parking Lot Letter from applicant describing the brewpub concept of operation Excerpts of the Planning Commission Minutes dated July 15, 1976, pertaining to Site Plan Review No. 1 and Resubdivision No. 527 Site Plan, Floor Plan and Elevations . 3l NEWPORT BEACH BREWING COMPANY 1 Newport Beach Brewing Company, Inc. "(the Operators)", is a California Corporation formed to construct and operate a restaurant /brew -pub to be called Newport Beach Brewing Company, which will be located at 2920 Newport Boulevard in Newport Beach, California. The restaurant will be open from 6:00 a.m. to 11:00 p.m., five days a week and 6:00 a.m. to 2:00 a.m., Friday and Saturday. There will be no live entertainment. The exterior of the restaurant /brew -pub will offer a person passing -by the "old world" ambiance of a fun and energetic eating and drinking establishment. This highly desirable Cap Cod designed building is highlighted with a random pattern brick front, shingle roof, gables, window walk, and painted wood trim. The focal point of the restaurant /brew -pub will be the custom made copper accented stainless steel beer brewing equipment that will be placed behind the bar and will rise to the ceiling of the building. These brewing tanks and storage vats will be cleaned and polished daily to keep their luster and appeal. The Operators of the restaurant /brew -pub are working carefully with their experienced architect and design team to select a theme that will create a warm, yet vibrant environment for patrons to enjoy. An emphasis for the interior of the restaurant will be comfortable stained hard -wood and brick that offer a rustic old world charm and ambiance. The bar is expected to be stained and shined dark hardwood and cooper with a brass foot rail that will give the immediate area an "upper- class" feel. There will be bountiful seating at the bar and on bar stools directly across from the bar. There will be seating at tables throughout the remainder of the restaurant, as well as -on -the patio. The walls will be brick and decorated with memorabilia from the brewing industry with particular emphasis on California pre - prohibition breweries, early Newport Beach and brew -pubs and micro - brewers currently operating in California and the Pacific Northwest. The restaurant's menu will feature classic, as well as, up- to -date cuisine that will appeal to the modern palate. Appetizers will include buffalo wings, beer battered fried onion rings, and "Armadillo eggs" (stuffed jalapeno peppers). A visible custom brick wood fired pizza oven will be the focal point as a number of individual gourmet wood fired pizzas will be served. Newport Beach's "finest" fresh ground burger will also head the entrees with other choices including a "naked" chicken breast sandwich, and a selected number of pasta dishes. A wide variety of salads will be offered either before a meal or as a meal themselves and "World 3°' Championship" homemade chili will be served in a similar manner. There will also be an assortment of fresh baked desserts available to patrons of the establishment. The restaurant /brew -pub intends to offer a full service wine and beer bar with the emphasis on premium beer that will be brewed on the premises. There will usually be four to six beers available that were brewed on site. The range of beers will include ales, pilsners, lagers and stouts. The brewery will produce approximately 16 varieties of beer each year, including such special seasonal flavors as Octoberfest Pilsnor and Christmas Ale. The beer should present itself as quite a value to the customer, since a 16 -ounce glass of premium, rich beer will cost justly slightly more than a 12 -ounce bottle of mass produced domestic beer. The beer brewed on the premises will easily overmatch both domestic and imported beers in quality and taste. A claim such as this can be made since the ingredients will be of the highest quality and procured under the direct supervision of the brew - master and the beer will be served as soon as it has completed fermenting, giving the consumer a fresh taste without any preservatives. The bar will also offer a full range of soft drinks, wines, as well as bottled domestic beer with a limited selection of bottled imported alcoholic and non - alcoholic beers. The Operators intend to construct the restaurant /brew -pub at 2920 Newport Boulevard which is the corner of Newport Boulevard and 30th Street between Newport Boulevard and Villa Way in Newport Beach, California (the "Premises "). The Premises is located within the "Cannery Village" area of Newport Beach which is intended to serve as an active pedestrian- oriented specialty retail /restaurant area with a wide range of visitor - serving, neighborhood commercial, and marine - related uses permitted. COMMISSIONERS \ 3P�O��o MINUTES CITY OF NEWPORT BEA9j, &,, ,, to ,00a ROLL CALL IME% 12. That the applicant shall obtain Coastal Commission approval of this application prior to the recordation of the parcel map or issuance of a building permit. 13. That this resubdivision shall expire if the map has not been recorded within 3 years of the date of approval, unless an extension is granted by the Planning Commission. Use Permit No. 3485 (Public Hearing) stem No. Request to permit the establishment of a combination UP3485 restaurant /brewpub with on -sale beer and wine, on property located in the "Specialty Retail' area of the Cannery Approved Village /McFadden Square Specific Plan Area. The proposal also includes: the establishment of an outdoor patio dining area; the use of 29 previously approved in -lieu parking spaces located in the ' Cannery Village Municipal Parking Lot; the amendment of a previously approved off -site parking agreement so as to increase the number of privately owned off -site parking spaces to 41 spaces; and the approval of a transfer of development rights from the privately owned off -site parking area to the restaurant site. LOCATION: Parcel 1, Parcel Map 92 -40 (Resubdivision No. 527) (restaurant site); and. portions of Lots 17 and 22 and --Lots 48 -21, Block 230, Lancaster's Addition (off -site parking lot) located at 2920 Newport Boulevard, on the southeasterly comer of Newport Boulevard (northbound) and 30th Street, in Cannery Village. ZONE: SP -6 APPLICANT: Michael Madlock, Manhattan Beach OWNER: Dorothy Doan, Santa Ana -14- 3`� COMMI88I0NERS mo MINUTES CITY OF NEWPORT BEAQWary 18.1993 ROLL CALL INDEX James Hewicker, Planning Director, explained that the applicant is proposing to utilize 29 in -lieu parking spaces that are located in the Cannery Village Municipal Parking Lot for the daytime operation of the subject facility. The subject Municipal Parking Lot is not currently occupied 100 percent 12 months of the year;. however, during the summer months it is relatively heavily used by recreational users and by employees at City Hall. The Municipal Parking Lot also has blue parking meters that were formerly located in front of City Hall. The blue meters allow individuals who purchase parking permits to use the parking spaces at less cost than the standard parking meters. If the Commission would approve the applicant to use the 29 in -lieu parking spaces during the day, the Commission would be displacing individuals who are currently using the parking lot. He questioned if the Commission wants to displace recreational users of the subject Municipal parking lot to allow for anew commercial use coming into the city. l In response to questions posed by Commissioner Glover, Mr. Hewicker replied that signs would not be placed in the parking lot so as to restrict the 29 parking spaces for the restaurant use only. In reference to her questions regarding Condition No. 6, Exhibit "A", William Laycock, Current Planning Manager, explained that if the Commission does not allow the applicant to utilize the Municipal Parking Lot spaces prior to 5:00 p.m. then the restaurant would be limited to 1,240 square feet of "net public area" until-5:00 p.m. If the Commission--and the City Council allowed the daytime use of the in -lieu parking spaces for the restaurant facility, a "net public area" of 2,400 square feet would be permitted prior to 5:00 p.m. He indicated that 132 square feet of "net public area" would still have to be closed in the restaurant prior to 5:00 p.m. even if the 29 in -lieu parking spaces would be allowed in the Municipal Parking Lot. The public hearing was opened in connection with this item, and Mr. James Person appeared before the Planning Commission on behalf of the applicant. He concurred with the findings and conditions in Exhibit "A'; however, he requested that Condition No. 7, Exhibit "A" be amended to state that the operational hours -15- 0 dr MINUTES CITY OF NEWPORT BEAfey 18 1993 ROLL CALL RNDEX would be between 6:00 a.m. and 12:00 midnight Sunday through Thursday and between 6:00 a.m. and 2:00 a.m. on Friday and Saturday. Mr. Person stated that the applicant would close a portion of the restaurant if the City Council does not approve the daytime use of the in -lieu parking spaces. He indicated that the public is walking and bicycling to many of the establishments and parking has not become a big factor in the area on Sunday afternoons. He explained that he recently observed that the majority of the blue meter parking spaces were being used and only three silver meter spaces were being used in the Cannery Village Municipal Parking Lot. In response to a question posed by Chairman Edwards, Mr. Person explained that parking spaces are not a big problem in the adjacent area during the summer months. Mr. Rob Friedman, co -owner of the property located at 405, 407, } and 409 - 30th Street, and a resident at 405 - 30th Street, appeared before the Planning Commission. He expressed his concerns regarding the noise emitting from the outdoor patio area of the facility, and the types of signage on the establishment. Mr. Friedman indicated that there would not be a parking problem as long as the subject facility does not have exclusive rights to parking spaces in the Municipal Parking Lot. In response to a question posed by Commissioner Gifford, Mr. Friedman replied that- he did not know- the hours of operation of the commercial establishments on his property. In response to a question posed by Commissioner Pomeroy, Mr. Hewicker explained that the Sign Code permits 200 square feet of signage per frontage of a building, and he stated that the City does not allow blinking or flashing signs. Mr. Friedman and Mr. Hewicker discussed Mr. Friedman's concerns regarding the noise. Mr. Hewicker referred to Condition No. 24, Exhibit "X, stating that the Commission may call up the use permit for review if it is determined that there are changes in the use that are detrimental to the community. -16- 3� COMMISSIONERS 4 �"N 0000\20�4!e MN1A%06\\S'0\ CITY OF NEWPORT BEAP1I, MINUTES IQ 1nM 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. 3485 Ayes * * * * subject to the findings and conditions in Exhibit "A", and to Absent amend Condition No. 7 as requested. MOTION CARRIED. Findings: 1. That the proposed application is consistent with the Land Use Element of the General Plan, the Local Coastal Program Land Use Plan, and is compatible with surrounding land uses. 2. That adequate parldng is available for the proposed use. 3. That the proposed development will not have any significant environmental impact. 4. That the Police Department does not anticipate any problems associated with the proposed restaurant /brewpub. 5. That the transfer of development intensity will accommodate the efficient use of land within an existing development comprised of two interdependent parcels. 6: That the transfer of -development intensity will not adversely affect the aesthetics of the area. 7. That the proposed transfer of development intensity will not result in a physical increase in commercial floor area within the subject property and therefore, will not create an abrupt change in scale between the existing development and development in the surrounding area. 8. That the proposed transfer of development intensity will not result in the impairment of public views. -17- COMMISSIONERS 0 MINUTES CITY OF NEWPORT BEArrJ ,roar 1R 1998 ROLL CALL MEX 9. The proposed transfer of development intensity will not result in a net negative impact on the circulation system. 10. That the off -site parking lot is so located as to be useful in connection with the proposed uses on the subject property. 11. Parking on the off -site parking lot will not create undue traffic hazards in the surrounding area. 12. Ownership of the off -site parking lot is constituted by leasehold interest for a remaining period of 59 years by the property owner of the building site. 13. The owner and the City, upon the approval of the City Council, will execute a written instrument, approved as to form and content by the City Attorney, providing for the maintenance of the required off -street parking on the designated property for the duration of the proposed uses on the building site. 14. That the approval of Use Permit No. 3485 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 the general welfare of the City. Conditions: 1. That the proposed development shall be in substantial conformance with the approved site plan, floor plan and elevations, except as noted below. 2. That a covenant or other suitable, legally binding agreement shall be recorded against the off -site parking lot assuring that all of the requirements of Section 20.07.070 J of the Municipal Code, will be met by the current and future property owners. Said covenant or agreement may include provisions for its future termination at such time as -18- - 3� City Council Meeting March 8, 1993 Agenda Item No. CITY OF NEWPORT BEACH TO: Mayor and Members of the City Council FROM: Planning Department SUBJECT: Amendment to an f£ Re Parkine Aere, in Conjunction with a Proposed Restaurant /Brewpub 5 Request to amend an existing off -site parking agreement and expand the daytime use of in -lieu parking spaces in the Cannery Village Municipal Parking Lot beyond the limits established by the sales agreement between the original property owner and the City, so as to allow the establishment of a restaurant/brewpub facility on the adjacent site (Use Permit No. 3485). LOCATION: Parcel 1, Parcel Map 92 -40 (Resubdivision No. 527) (restaurant site); and portions of Lots 17 and 22 and Lots 18 -21, Block 230, Lancaster's Addition (off -site parking lot) located at 2920 Newport Boulevard, on the southeasterly corner of Newport Boulevard (northbound) and 30th Street, in Cannery Village. ZONE: APPLICANT: OWNER: Application SP -6 Dorothy Doan, Santa Ana Same as Applicant This item involves a request to amend an existing off -site parking agreement and expand the daytime use of in -lieu parking spaces in the Cannery Village Municipal Parking Lot beyond the limits established by the sales agreement between the original owner and the City, so as to allow the establishment of a brew /pub on the adjacent site (Use Permit No. 3485). Off -site parking agreement procedures for Cannery Village are set forth in Section 20.63.045 B of the Municipal Code. 3q .. , . TO: City Councu - 2. Suggested Actions 1. If desired, approve the proposed amendment to the off -site parking agreement related to Use Permit No. 3485 with the applicable findings recommended by the Planning Commission contained in the attached excerpt of the draft Planning Commission minutes dated February 18, 1993. 2. If desired, approve or deny the amendment to the sales agreement between the original owner and the City so as to extend the owners daytime use of in -lieu parking spaces in the Cannery Village Municipal Parking Lot. Background Relative to the Off Site Parking Agreement At its meeting of February 18, 1993, the Planning Commission approved (6 Ayes, 1 Absent) Use Permit No. 3485 which permits the establishment of a combination restaurant/brewpub on property located at 2920 Newport Boulevard, in the Cannery Village /McFadden Square Specific Plan Area. The establishment of the restaurant/brewpub increases the off - street parking requirement for the subject property. The adjoining off -site parking lot located immediately east of the restaurant/brewpub property will provide additional required parking spaces. Said off -site parking lot is in separate ownership but is under long term lease by the property owner of the subject restaurant/brewpub site. The use of the privately owned off -site parking lot was approved in conjunction with the construction of the original building, and includes the provision of a minimum of 29 parking spaces. Inasmuch as all 41 of the off -site parking spaces will be required as a result of the approval of Use Permit No. 3485, the property owner is required to amend the off -site parking agreement so as to reflect the current number of required parking spaces. Background Relative to In -Lieu Parking baces The Planning Commission's approval of Use Permit No. 3485 also includes Condition No. 6 which limits the daytime "net public area" of the restaurant/brewpub to 1,240±- square feet (approximately half of the proposed "net public area "), unless the applicant obtains the City Council's approval for the daytime use of the in -lieu parking spaces which were granted to the subject property owner by the City, in conjunction with the City's purchase of the property which is now developed as the Cannery Village Municipal Parking Lot. Under the terms of the sales agreement, Dorothy Doan is granted the option to purchase up to 47 in- lieu parking permits for the Cannery Village Municipal Parking Lot, provided that such parking spaces may be used for the benefit of the uses located on the Pelican Market site (the proposed restaurant/brewpub facility) and the adjoining Cafe Looma Restaurant site, and provided further that such parking may only be used from 5:00 p.m. to 6:00 a.m. The daytime restriction on the use of in -lieu parking spaces was to insure that the Cannery Village Municipal Parking Lot would be available to daytime businesses and visitors to Cannery Village and the beach. 11 TO: City Councu = ;3. Plannine Commission In conjunction with its approval of Use Permit No. 3485, the Planning Commission recommended that the City Council approve the amendment to the off -site parking agreement and to allow the daytime use of the in -lieu parking spaces upon the approval of the City Council. Staff has attached a copy of the Planning Commission staff report and an excerpt of the Draft Planning Commission Minutes dated February 18, 1993 for the City Council's information. Respectfully Submitted, PLANNING DEPARTMENT JAMES D. HEWICKER, Director B W. William Ward Senior Planner Attachments for City Council only: Planning Commission Staff Report dated February 18, 1993 with attachments. Excerpt of the Draft Planning Commission Minutes dated February 18, 1993. Site Plan, Floor Plan and Elevations. %At Moti.o All CQMIL MEMBERS �s rITY OF NEWPORT BEACH Narch 8, 1993 MINUTES ILEX Lty ter :sp In: %9 olores Otting, Harbor Hill, addressed Gangs /C: the Council, stating that she had hoped Helicop� the State and cities could do something out the gang problem, such as to p vide more trade school opportunities. She also expressed concern about the exp a of the helicopter program in ruse ewpor Beach, and suggested the of a memor dum of understanding between the Citie of Costa Mesa and Newport Beach to continue the helicopter service. n x CAL�iDAH lowing items were d, except for \C�mt yes ite ms removed: CES FOR INTRODUCTION 2nd reading on Narch 22, 993 - emoved from the Consent Calm IONS FOR ADOPTION emoved from the Consent calendar. TS/AGRM090 S emoved from the Consent Ca 5. USE PERNTT NO. 3§j j_- Approve Amendment U P 348, (88) to eaiat i,g off -site parking agreement and expand the daytime we of in -lieu parking spaces in the Cannery Village Municipal Parking Lot beyond the limits established by the sales agreement between the original property owner and the City, so as to allow the establishmaut of a restaurant/brewpub facility on the adjacent site located at 2920 Newport Boulevard and 30th Street. [Report from the Planning Department] CIAINS - For Daniel by the City Manager: (36) California State Department Of CA Statf Transportation regarding claim for Dpt Trar ersonal injuries by Mary Sharon O rim. alleging claimant stepped into an rea of a pothole and slipped and F.11 t corner of Pacific Coast Highway and Ma uerite Avenue on May 2, 1992. Laurie A. Doran alleging damage to Doran vehicle as result of hitting pothole and series o roken asphalt at Jamboree and Bristol on anuary 14, 1993. Federal Inset Company alleging Federal property damage as result when City Company put high pressure se adjacent to residence, causing 10, 00 gallons of sewage to overflow into home at 1521 Kings Road on December 18, 992. Scott Casey Flamegia alleging is watch Flanegis fell off while being handc ad by Police Department at 55 and 405 F sways M February 3, 1993; se ing reimbursement. Volume 47 - Page 34 Lty ter :sp In: %9 City Council M�,":ing Sotember 27. 1993 Item No 9 CITY OF NEWPORT BEACH TO: Mayor and Members of the City Council FROM: Planning Department SUBJECT: Use Permit No. 4 Request to revise a previously approved use permit that permitted the establishment of a restaurant/brewpub with on -sale beer and wine and outdoor seating, on property located in the Specialty Retail area of the Cannery Village /McFadden Square Specific Plan. The proposal involves a request to rescind the City Council's previous action that — _ permitted the - expanded use of daytime in -lieu parking spaces in the Cannery Village Municipal Parking Lot which were to be used in conjunction with the daytime operation of the proposed restaurant/brewpub at 2920 Newport Boulevard. The proposal also includes a request to change the daytime parking requirement for the facility from one parking space for each 40 square feet of "net public area," to one parking space for each 50 square feet of "net public area "; and reduce the allowable daytime "net public area" to 1,500 square feet before 5;00 p.m. LOCATION: Parcel 1, Parcel Map 9240 (Resubdivision No. 527) (restaurant site); and portions of Lots 17 and 22 and Lots 18 -21, Block 230, Lancaster's Addition (off -site parking lot) located at 2920 Newport Boulevard, on the southeasterly corner of Newport Boulevard (northbound) and 30th Street, in Cannery Village. ZONE: SP -6 APPLICANT. Michael Madlock, Manhattan Beach OWNER: Dorothy Doan, Santa Ana This is a request to amend a previously approved use permit that permitted the establishment of a restaurant /brewpub with on -sale beer and wine and outdoor seating, on property located in the Specialty Retail area of the Cannery Village /McFadden Square Specific Plan. The approval also included: the use of 27 previously approved in -lieu parking spaces located in the Cannery Village Municipal Parking Lot; the continued use of 29 off - site parking spaces on privately owned property located directly east of the subject property; and the approval of a transfer of development rights from the privately owned off -site parking area to the restaurant site. The proposed amendment involves the following revisions to the use permit so as to make it consistent with the requirements of the L3 TO: City Council -2. California Coastal Commission's approval: a request to change the daytime parking requirement for the facility from one parking space for each 40 square feet of "net public area," to one parking space for each 50 square feet of "net public area "; reduce the allowable daytime "net public area" to 1,500 square feet; and rescind that portion of the previous approval which allowed the applicant to use 27 in -lieu parking spaces in the Cannery Village Municipal Parking Lot before 5:00 p.m. At its meeting of February 18, 1993, the Planning Commission approved (6 Ayes, 1 Absent) Use Permit No. 3485 which permits the establishment of a combination restaurant/brewpub on property located at 2920 Newport Boulevard, in the Cannery Village /McFadden Square ­-Specific Plan Area. The Planning.Commission also accepted an amendment to an existing.,. . off -site parking agreement so as to provide 41 parking spaces within an adjoining privately owned parking lot. Said off -site parking lot is in separate ownership but is under long term lease by the property owner of the subject restaurant/brewpub site. The use of the privately owned off -site parking lot was approved in conjunction with the construction of the original building, and includes the provision of a minimum of 29 parking spaces. Inasmuch as all 41 of the off -site parking spaces will be required as a result of the approval of Use Permit No. 3485, the property owner is required to amend the off -site parking agreement so as to reflect the current number of required parking spaces.. The Planning Commission's approval of Use Permit No. 3485 also included Condition No. 6 which limits the daytime "net public area" of the restaurant/brewpub to 1,240± square feet (approximately half of the proposed "net public area "), unless the applicant obtains the City Council's approval for the daytime use of the in -lieu parking spaces which were granted to the subject property owner by the City, in conjunction with the City's purchase of the property which is now developed as the Cannery Village Municipal Parking Lot. Under the terms of the sales agreement, Dorothy Doan (subject property owner) is granted the option to purchase up to 47 in -lieu parking permits for the Cannery Village Municipal Parking Lot, provided that such parking spaces may be used for the benefit of the uses located on the Pelican Market site (the proposed restaurant/brewpub facility) and the adjoining Cafe Looma Restaurant site, and provided further that such parking may only be used from 5:00 p.m. to 6:00 a.m. The daytime restriction on the use of in -lieu parking spaces was to insure that the Cannery Village Municipal Parking Lot would be available to daytime businesses and visitors to Cannery Village and the beach. Staff has attached a copy of the Planning Commission's staff report for Use Permit No. 3485, dated February 18, 1993. At its meeting of March 8, 1993, the City Council unanimously approved an amendment to the sales agreement between Dorothy Doan and the City, so as to allow her the daytime use of the in -lieu parking spaces in the Cannery Village Municipal Parking Lot. The Council also approved the amended off -site parking agreement for the privately owned parking spaces located directly adjacent to the restaurant/brewpub site. In accordance with the City Council's original approval, the proposed restaurant/brewpub was allowed to have 2,400 square feet of daytime "net public area" with the provision of 31 privately owned parking d TO: City Counci, -3. spaces and 29 in -lieu spaces in the Cannery Village Municipal Parking Lot, for a total of 60 off - street parking spaces. The allowable daytime "net public area" was based on a parking formula of one parking space for each 40 square feet of "net public area" (60 parking spaces x 40 sq.ft. = 2,400 sq.ft. of "net public area "). IT s WIRM At its meeting of July 13 -16, 1993, the Coastal Commission approved Use Permit No. 3485 (Coastal Permit Application No. 5 -93 -137, copy attached). However, said approval did not allow the daytime use of the in -lieu parking spaces in the Cannery Village Municipal Parking Lot; therefore, the available daytime parking spaces for the subject project is only 31 spaces. Based on the available parking, the Coastal Commission limited the daytime "net - -public area" of the restaurant/brewpub °to 1,500 square -feet which is equivalent to approximately one parking space for each 50 square feet of "net public area." The Coastal Commission also required: that the applicant record a deed restriction which will provide that no more than 1,500 square feet of service area shall be open before 5:00 p.m.; that the City Council rescind its previous action amending the sales agreement with Dorothy Doan so as to permit the daytime use of in -lieu parking spaces in the Cannery Village Municipal Parking Lot; and that the City of Newport Beach prepare a letter indicating that it agrees that the City's Code Enforcement Office will enforce the daytime public service area restriction of 1,500 square feet. t :a Hold hearing; close hearing; if desired, approve Use Permit No. 3485 (Revised) with the findings and subject to the conditions of approval set forth in the attached Exhibit "A." Said action will: rescind the City Council's previous action that permitted the daytime use of 47 in -lieu parking spaces in the Cannery Village Municipal Parking Lot; reduce the allowable daytime "net public area" to 1,500 square feet; and revise the daytime parking requirement for the restaurant/brewpub to one parking space for each 50 square feet of "net public area." Staff has no objections to the requested revisions to Use Permit No. 3485 inasmuch as said revisions will result in a project that will have a less intensive daytime operation than was previously approved by the City Council. Respectively submitted, PLANNING DEPARTMENT JAMES D. HEWICKER, Director ON � u���_..��.. W. i' .i Senior Planner 0 R TO: City Counc;. 4. Attachment: Exhibit "A" Vicinity Map Copy of the Planning Commission Staff Report dated February 18, 1993 with attachments Excerpt of the Planning Commission Minutes dated February 18, 1993 Coastal Commission Staff Report Site Plan Revised Floor Plan q6 TO: City Council -5. EXHIBIT "A" FINDINGS AND CONDITIONS OF APPROVAL FOR USE PERWT NO. 3485 (REVISED) Findings: 1. That the proposed application is consistent with the Land Use Element of the General Plan, the Local Coastal Program Land Use Plan, and is compatible with surrounding land uses. 2. That the approval of Use Permit No. 3485 (Revised) is necessary in order to make the City of Newport Beach's approval of the subject project consistent with the - conditions of approval established by the California Coastal Commission. 3. That the approval of Use Permit No. 3485 (Revised) will allow the City of Newport Beach to monitor and thereby insure that the continued operation of the proposed restaurant/brewpub will be in accordance with the provisions of the approved coastal permit. 4. That adequate parking is available for the proposed use. 5. That the proposed development will not have any significant environmental impact. 6. That the Police Department does not anticipate any problems associated with the proposed restaurant/brewpub. 7. That the transfer of development intensity will accommodate the efficient use of land within an existing development comprised of two interdependent parcels. 8. That the transfer of development intensity will not adversely affect the aesthetics of the area. 9. That the proposed transfer of development intensity will not result in a physical increase in commercial floor area within the subject property and therefore, will not create an abrupt change in scale between the existing development and development in the surrounding area. 10. That the proposed transfer of development intensity will not result in the impairment of public views. 11. The proposed transfer of development intensity will not result in a net negative impact on the circulation system. 12. That the "off -site parking lot is so located as to be useful in connection with the proposed uses on the subject property. 0 TO: City Councu -6. 13. Parking on the off -site parking lot will not create undue traffic hazards in the surrounding area. 14. Ownership of the off -site parking lot is constituted by leasehold interest for a remaining period of 59 years by the property owner of the building site. 15. The owner and the City, upon the approval of the City Council, will execute a written instrument, approved as to form and content by the City Attorney, providing for the maintenance of the required off - street parking on the designated property for the duration of the proposed uses on the building site. 16. That the approval of Use Permit No. 3485 (Revised) 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 the general welfare of the City. Conditions: 1. That the proposed development shall be in substantial conformance with the approved site plan, floor plan and elevations, except as noted below. 2. That a covenant or other suitable, legally binding agreement shall be recorded against the off -site parking lot assuring that all of the requirements of Section 20.07.070 J of the Municipal Code, will be met by the current and future property owners. Said covenant or agreement may include provisions for its future termination at such time as the development on the building site is removed or at such time as the floor area devoted to the restaurant/brewpub reverts back to a Base FAR use. 3. That the applicant shall provided a minimum of one parking space for each 50 square feet of "net public area" before 5:00 p.m. and one parking space for each 40 square feet of "net public area" after 5:00 p.m. in conjunction with the proposed restaurant /brewpub. 4. That an amended off -site parking agreement shall be approved by the City Council, guaranteeing that a minimum of 41 parking spaces shall be provided on property located on Lots 18-21 and portions of Lots 17 and 22, Block 230, Lancaster's Addition, for the duration of the existing and proposed uses located on Parcel 1, Parcel Map 9240 (Resubdivision No. 527). 5. That the property owner shall pay for 29 in -lieu parking spaces in the Cannery Village Municipal Parking Lot on an annual basis for the nighttime operation (after 5:00 p.m.) of the restaurant/brewpub use as agreed upon by the Sales Agreement between the City and the property owner. ,�I TO: City Councu -7. 6. That the "net public area" of the restaurant/brewpub, which is devoted to daytime use Monday through Friday (prior to 5:00 p.m.) shall be limited to 1,500 sq.ft. The balance of the "net public area" shall be physically closed off to the public by a fixed barrier and shall not be used until after 5:00 p.m. daily. 7. That the hours of operation for the restaurant /brewpub shall be limited to the hours between 6:00 a.m. and 11:00 p.m. Sunday through Thursday and between 6:00 am. and 2:00 am. on Friday and Saturday. 8. That all employees shall park either in the privately owned off -site parking area or in one of the Municipal parking lots in the area. "9. That all signs shall conform to the requirements of Chapter 20.06 of the Municipal Code. 10. That the operation of the brewery and the service of alcoholic beverages shall be ancillary to the primary food service operation of the restaurant. 11. That no outdoor loudspeakers or paging system shall be permitted in conjunction with the proposed operation. 12. That a washout area for refuse containers be provided in such a way as to allow direct drainage into the sewer system and not into the Bay or storm drains, unless otherwise approved by the Building Department. 13. That grease interceptors shall be installed on all fixtures in the restaurant facility where grease may be introduced into the drainage systems in accordance with the provisions of the Uniform Plumbing Code, unless otherwise approved by the Building Department. 14. That kitchen exhaust fans shall be designed to control smoke and odor to the satisfaction of the Building Department. 15. That all mechanical equipment and trash areas shall be screened from surrounding public streets and alley and adjoining properties. 16. That the development standards regarding walls surrounding the restaurant site and underground utilities shall be waived. 18. That all improvements be constructed as required by Ordinance and the Public Works Department. 19. That the on -site parking, vehicular circulation and pedestrian circulation systems be subject to further review by the City Traffic Engineer and that the parking lot be restriped as approved by the Traffic Engineer. qo� TO: City Council -8. 20. That the required number of handicapped parking spaces shall be designated within the on -site parking area and shall be used solely for handicapped self - parking. One handicapped sign on a post and one handicapped sign on the pavement shall be required for each handicapped space. 21. That should any prerecorded music be played within the restaurant facility, such music shall be confined to the interior of the building, and all doors and windows shall be kept closed while such music is played. 22. That arrangements be made with the Public Works Department in order to guarantee satisfactory completion of the public improvements, if it is desired to obtain a Building Permit prior to completion of the public improvements. 23. That a handicap ramp be constructed at the alley intersection at Newport Boulevard per City Standards. 24. That the Planning Commission may add 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. 25. 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. 5b CITY OF NEWPORT BEACH COUNCIL MEMBERS MINUTES September 27, 1993 Motion All Ayes x In response to question raised by ouncil Member Sansone regarding the P osed franchise fee, Chief Riley eta d that the ambulance operator will be re red to pay a Pined percentage of ten per t (108) of the gross receipts of the as CO. It was also p ted out that a public hearing will be old on October 11 regarding a propose esolution emending the rates for ambula service within the City pursuant to Sec on 5.14.090 of the Municipal Code. Hearing no one else wishing t address the Council, the public hear was closed. Motion was made by Council Member Hart to adopt Ordinance Ho. 93 -21. arvuuc - - - 9. Mayor Turn er opened the public hearimg - H /P3485(R) regarding USE PERMIT V. 3485 (Revised) (88) Request to revise a previously approved use permit that permitted the establishment of a restaurant/brewpub with on -sale beer and wine and outdoor seatinggl1_ on property located in the ecia y Retail area of the Cannery Village/McFadden Square Specific Plan. The proposal involves a request to rescind the City Council's previous action that permitted the expanded use of daytime in -lieu parking spaces in the Cannery Village Municipal Parking Lot which were to be used in conjunction with the daytime operation of the Proposed restaurant/brevpub at 2920 Newport Boulevard. The proposal also includes a request to change the daytime parking requirement for the facilityy from ona parking space for each 40 square feet of "net public area," to one parking space for each 50 square feet of "net public area "; and reduce the allowable daytime "net public area" to 1,500 square feet before 5:00 p.m., property located at 2920 Newport Boulevard, on the southeasterly corner of Newport Boulevard (northbound) and 30th Street, in Cannery Village. Report from the Planning Department. The Planning Director advised that this application was before the City Council in March 1993 and a use permit was to approved, subject to revisions of the off -site parking which would have allowed the applicant to use 29 parking spaces in the Cannery Village Municipal parking lot prior to 5 p.m. However, at the Coastal Commission hearing In July, the staff and Coastal Commission disagreed with the action that had been taken by the City, and it was their determination that the we of the 29 parking spaces in the lot would conflict with the public use of the same spaces prior to the hour of 5 p.m.; therefore, they took action Volume 47 - Page 253 51 r CITY OF NEWPORT BEACH COUNCIL MEMBERS d� September 27, 1999 ROLL ULL Motiot All A, MINUTES INDEX 3485(R) are A 5�- to modify the approval, subject to four UIP conditions: 1) that the applicant record a deed restriction which would allow no more than 1500 square feet of service area being used prior to 5 p.m.; 2) that 41 off -site parking spaces will be maintained between 6 a.m. and 5 p.m. daily and 67 off -site parking spaces between 5 p.m. and 2 a.m., (the 41 off - site parking spaces between 6 a.m. and 5 .m. are on privately owned property under the same ownership immediately adjacent to the brewpub and the additional spaces would be in the Municipal lot and would be used after 5 p.m.); 3) that the City Council rescind its earlier action allowing the use of the off -site parking spaces in the • Municipal lot prior to 5 p.m.; 4) that the City will agree to enforce the restrictions on the area of service (the .. ., 1500 squsra feet being used prior.ia..5 P.M.). James Person, representing the applicant, addressed the Council and stated they feel this is a reduction of intensity we from the time it was by however• they do agree to last of approval as imposed by both the City and the Coastal Commission. Hearing no one else wishing to address the Council, the public hearing was closed. x made o b cil Member es Dabav to aonrove IIse Permit No 5 (Revised] with EG €inli.. and e..xa r m cna c_fim,a a i set fort." is he attached 231161t A-, REMOVED ON THE CONSENT CALENDAR Hone. PUBLIC iH0$i'PS The ollowing persons addressed the Mess Counci and expressed their reasons for oppos Measure A on the November ballot - oposed Open Space Assessment District: Stuart Willi 1748 Bayport Vey Helen Rieron, 3 1 Pourth Avenue Tom and Mike Bull an, 121 Marine Avenue Mary Ann Towersey, 501 Rings Place, member of the Newwppoort onservancy Boaxd of Directors, addrease the Council to Promote the -Walk on t Wild Side" event which is scheduled or Sunday, October 10 and begins at th Castaways site at 16th Street and Dover nue and concludes at the same site for sunset picnic and other attractions for blic enjoyment. Registration forms are available at the libraries and at he Parks, Beaches A Recreation Departmen Volume 47 - Page 254 INDEX 3485(R) are A 5�- Exhibit No. 3 r STATE OF CALIFORNIA —THE RESOURCES AGENCY PETE WILSON, Garo r i CALIFORNIA COASTAL COMMISSION SOUTH COAST AREA Page 1 of 245 W. BROADWAY, STE. 380 Date: 1 -21 -94 P.O. Box 1450 Permit No. 5 -93 -137 LONG BEACH, CA 90802-4416 (310) SM3071 COASTAL DEVELOPMENT PERM On July 15. 1993 the California Coastal Commission granted to this permit subject to the attached Standard and Special conditions, for development consisting of: Conversion of an existing 4200 square foot former market /deli (currently vacant) to a restaurant/brew pub and the addition of 600 square feet of outdoor dining. Existing 3100 square foot, second floor office will remain. more specifically described in the application file in the Commission offices. The development is within the coastal zone in Orange County at 2920 Newport Blvd.. Newn= Beach • Issued on behalf of the California Coastal Commission by PETER DOUGLAS Executive Director By: Le r 0 Title: Staff Analyst The undersigned permittee acknowledges receipt of this permit and agrees to abide by all terms and conditions thereof. The undersigned permittee acknowledges that Government Code Section 818.4 which states in pertinent part, that: "A public entity is not liable for injury caused by the issuance... of any permit..." applies to the issuance of this permit. IMPORTANT: THIS PERMIT IS NOT VALID UNLESS AND UNTIL A COPY OF THE PERMIT WITH THE SIGNED ACKNOWLEDGEMENT HAS BEEN RETURNED TO THE COMMISSION OFFICE. 14 Cal. Admin. Code Section 13158(a). Date Signature of Permittee A6: 4/88 Page 2 of _3_ • Permit No. 5-93 -137 I. Notice of Receipt a*W± Acknowledgment. The permit is not valid and development shall not commence until a copy of the permit, signed by the permittee or authorized agent, -acknowledging receipt of the permit and acceptance of the terms and conditions, is returned to the Commission office. 2. Facmration. If development has not commenced, the permit will expire two years from the date on which the Commission voted on the application. Development shall be pursued in a diligent manner and completed in a reasonable period of time. Application for extension of the permit must be made prior to the expiration date. 3. Compliance. All development must occur in strict compliance with the proposal as set forth in the application for permit, subject to any special conditions set forth below. Any deviation from the approved plans must be reviewed and approved by the staff and may require Commission approval. 4. Interpretation. Any questions of intent or interpretation of any condition will be resolved by the Executive Director or the Commission. 5. InRnections. The Commission staff shall be allowed to inspect the site and the project during its development, subject to 24 hour advance notice. 6. Assi&WB=_t. The permit may be assigned to any qualified person, provided assignee files with the Commission an affidavit accepting all terms and conditions of the permit. 7. Terms and Conditions Run with the band. These terms and conditions shall be perpetual, and it is the intention of the Commission and the permittee to bind all future owners and possessors of the subject property to the terms and conditions. I= I IMUMMOM 9r, ITRTM I IT Prior to issuance of the Coastal Development Permit, the applicant shall execute and record a deed restriction, in a from and content acceptable to the Executive director, which shall provide that no more than 1,500 square feet of service area of the subject restaurant/brewpub shall be open before 5 p.m. The document shall run with the land, binding all successors and assigns, and shall be recorded free of prior liens. 5k° i Page 3 5- 93-137 The proposed project includes the use of Off -Site parking for which the applicant has entered into long -term parking agreements. Prior to issuance of the Coastal Development Permit, the applicant shall execute and record a deed restriction, in a form and content acceptable to the Executive Director, which shall provide that the applicant shall maintain, for the life of the development, a total of 41 off -site parking spaces between 6:00 a.m. and 5:00 p.m. daily, and a total of 67 off -site parking spaces between 5:00 p.m. 2:00 a.m. daily. Prior to issuance of the Coastal Development Permit, the applicant shall submit evidence that the Amendment to Parking Agreement approved by the City of Neworport Beach on February 18, 1993, has been rescinded by the City Council. Additionally, prior to issuance of the Coastal Development Permit, the applicant shall submit, for the review and approval of the Executive Director, a letter from the City of Newport Beach indicating that the City agrees that the City's Code Enforcement will enforce the puobliF service area restrictions described in ecial Condition 1. • 4. Submittal of Final Plans: Prior to issuance of the Coastal Development Permit, the applicant shall submit, for the review and approval of the Executive Director, final floor plans illustrating the area proposed for the day use restriction imposed in special conditional, above. 1033F MV /lm ,� 5'l i STATE OF CALIFORNIA -TK RESOMM AGENCY CALIFORNIA COASTAL COMMISSION SOUTH COAST AREA *I= Ar, sTE. 386 O BEACH. CA "B02•406 (311) Sm5w] r1 L—J i6 Filed: 4/19/93 49th Day: 6/7/93 180th Day: 10/16/93 Staff: MV -L Staff Report: 8/16/ 3 Hearing Date: 9/16/93 Comm. Action on Findings: STAFF REPORT: REVISED FINDINGS APPLICATION NO.: 5- 93- 137` - -, APPLICANT: The Doan Trust AGENT: Nancy Lucast PROJECT LOCATION: 2920 Newport Blvd., Newport Beach, Orange County. PROJECT DESCRIPTION: Conversion of an existing 4200 square foot former market /deli (currently vacant) to a restaurant /brew pub and the addition of 600 square feet of outdoor dining. Existing 3100 square foot, second floor office will remain. COMMISSION ACTION: Approval with Conditions. DATE OF COMMISSION ACTION: July 15, 1993 COMMISSIONERS ON PREVAILING SIDE: Commissioners Wright, Yokoyama, Calcagno, Cervantes, Doo, Stevens, Moulton- Patterson, Malcolm, Neely, and Chairman Gwyn. SUMMARY OF STAFF RECOMMENDATION: The staff recommends that the Commission adopt the following revised findings in support of the Commission's action on July 15, 1993 approving with conditions the permit for a restaurant /brewpub. STAFF RECOMMENDATION: The staff recommends that the Commission adopt the following resolution: I. Approval with Conditions. The Commission hereby r9 ants a permit, subject to the conditions below, for the proposed development on the grounds that the development will be in conformity with the provisions of Chapter 3 of the California Coastal Act of 1976, will not prejudice the ability of the local government having Jurisdiction over the area to prepare a Local Coastal Program conforming to the provisions of Chapter 3 of the Coastal Act, and will not have any significant adverse impacts on the environment within the meaning of the California Environmental Quality Act. 6 <� 5 -93 -137 Revised Findings Page 2 I1. Standard gonditions. 1. Notice of Receipt and Acknowledgment. The permit is not valid and �• development shall not commence until a copy of the permit, signed by the permittee or authorized agent, acknowledging receipt of the permit and acceptance of the terms and conditions, is returned to the Commission-office. 2. Expiration. If development has not commenced, the permit will expire two years from the date this permit is reported to the Commission. Development shall be pursued in a diligent manner and completed in a reasonable period of time. Application for extension of the permit must be made prior to the expiration date. 3. Compliance. All development must occur in strict compliance with the proposal as set forth in the application for permit, subject to any special conditions set forth below. Any deviation from the approved plans must be reviewed and approved by the staff and may require Commission approval. 4. Interpretation. Any questions of intent or interpretation of any condition will be resolved by the Executive Director or the Commission. 5.' Inspections. The Commission staff shall be allowed to inspect the site and the project during its development, subject to 24 -hour advance notice. 6. Assignment. The permit may be assigned to any qualified person, provided assignee files with the Commission an affidavit accepting all terms and conditions of the permit. 7. Terms and Conditions Run with the Land. These terms and conditions shall be perpetual, and it is the intention of the Commission and the permittee to bind all future owners and possessors of the subject property to the terms and conditions. 1II. Special. Conditions: 1. D"d Restriction Limiting Daytime Use Prior to issuance of the coastal development permit, the applicant shall execute and record a deed restriction, in a form and content acceptable to the Executive Director, which shall provide that no more than 1,500 square feet of service area of the subject restaurant /brewpub shall be open before 5 p.m. The document shall run with the land, binding all successors and assigns, and shall be recorded free of prior liens and encumbrances which the Executive Director determines to affect said interest.. 2. Maintenance of Off -Site Parki The proposed project includes the use of off -site parking for which the applicant has entered into long -term parking agreements. Prior to issuance of the coastal development permit, the applicant shall execute and record a deed restriction, in a form and content acceptable to the Executive Director, which shall provide that the applicant shall maintain, for the life of the development, a total of 41 off -site parking spaces between 6:00 a.m. and 5:00 p.m. daily, and a total of 67 off -site parking spaces between 5:00 p.m. and 2:00 a.m. daily. The document shall run with the land, binding all successors and assigns, and shall be recorded free of prior liens and encumbrances which the Executive Director determines to affect said interest. 5� 5 -93 -137 Revised Findings Page 3 3. Recision f'Amendment to Parking Agreement Prior to issuance of the coastal development permit, the applicant shall submit evidence that the Amendment to Parking Agreement approved by the City of Newport Beach on February 1B, 1993, has been rescinded by the City Council. Additionally, prior to issuance of the coastal development permit, the applicant shall submit, for the review and approval of the Executive Director, a letter from the City of Newport Beach indicating that the City agrees that the City's Code Enforcement Department will enforce the public service area restrictions described in special condition I. Submittal of Final Plans Prior to issuance of the coastal development permit, the applicant shall submit, for the review and approval of the Executive Director, final floor plans illustrating the area proposed for the day use restriction imposed in special condition 1, above. IV. FINDINGS AND DECLARATIONS The Commission finds and declares as follows: A. Pro3ect Description The applicant proposes to convert an existing 4200 square foot former . market /deli (currently vacant) into a restaurant /brew pub and to add 600 square feet of outdoor dining. The existing 3100 square foot, second floor office space will remain. The public service area of the proposed restaurant will be 2800 square feet including the proposed outdoor patio dining area. The applicant proposes 72 parking spaces, 29 of which are located in a public parking.lot. The subject site is located in the Cannery Village /McFadden Square area of the Balboa Peninsula in Newport Beach. The land use designation of the subject site is Retail and Service Commercial. The proposed restaurant use is consistent with that designation. B. Public Access /Parking Section 30210 of the Coastal Act requires maximum access and recreation be provided for the general public. Section 30252 of the Coastal Act states, in part: The location and amount of new development should maintain and enhance public access to the coast by (4) providing adequate parking facilities or providing substitute means of serving the development with public transportation. The subject site is located in an area that is historically popular with the beach going public. in addition to miles of wide sandy beach, the Balboa .Peninsula contains many restaurants and visitor serving retail areas as well as the two piers and the fun zone. Because of the area's popularity with the general public it often reaches peak capacity during prime visitor periods. ll] 5 -93 -137 Revised Findings Page 4 The area within the existing building proposed for restaurant use is currently vacant. The former use was a market /deli. The proposed development represents an intensification of use, triggering the need to evaluate parking. When development does not provide adequate parking, patrons of that development are forced to use parking that is available to the general public. This results in patrons of private uses competing with beach goers for available public parking spaces and reduced parking supply for access and recreational uses. Lack of public parking can deter the public from using certain beach areas and other visitor amenities. The Balboa Peninsula, particularly in the McFadden Square area, includes many pre — Coastal Act buildings which were constructed without adequate parking. That adds to the general parking shortage in the area. Consequently, it is important that all new development provide adequate parking so as not to displace public beach goer and visitor parking. The Commission has adopted regional guidelines that provide guidance when determining the parking need for various uses. In past actions the Commission has consistently applied the parking ratios described in the regional guidelines for new development in the Balboa Peninsula area. For restaurant use the guidelines recommend a ratio of one parking space for every fifty square feet of public service area. For general office use, the Commission's guidelines recommend a ratio of one space for every 250 square feet of gross floor area. The City of Newport Beach zoning requirements for parking, in this case, are consistent (for office uses) or more restrictive (for restaurant use: one space for every forty square feet of public service area). Both the City and the Commission apply a similar formula for determining parking demand in the subject area. This indicates that the ratio is appropriate in defining specific parking needs for this area. The City's certified Land Use Plan requires that all new development shall provide adequate off street parking to meet the requirements of the City's zoning code. In this case the City has found that the amount of parking provided, including the use of existing spaces within a public parking lot, meets the zoning code requirements. However, Coastal Act Section 30252 requires that new development provide adequate parking in a manner which maintains and enhances coastal access. In this case because the project proposes to use existing spaces within a public parking lot during peak visitor use periods, the Commission cannot find that adequate parking will be provided. Where there is no certified total Local Coastal Program, the Commission must find a proposed project consistent with the chapter three policies of the Coastal Act. The certified Land Use Plan, when there is a conflict, serves as guidance only. Based on the above guidelines ratio, the parking demand generated by the proposed project is 56 spaces. In addition, the existing office space on the second floor generates a demand of 13 spaces, creating a total demand of 69 spaces. There are two spaces on —site. Additionally the applicant has a long —term lease for the use of 41 spaces in an adjacent private parking lot. The applicant proposes to provide a total of 72 parking spaces. However. of that number, 29 are to be acquired through a lease agreement with the City to use a parking lot that is currently available to the public. Without the public parking lot spaces, the proposed project would be deficient by 25 spaces, a significant shortfall. Is' 0 0 tj 5 -93 -137 Revised Findings Page 5 Coastal Development Permit No. 5 -88 -252 (City of Newport Beach) allowed construction of the public parking lot in question. In approving that development, the Executive Director determined that parking was a severe problem in the area and that the parking lot would provide 45 additional public parking spaces to be used for visitor serving uses and businesses. The current applicant sold the area now containing the public parking lot to the City in 1988. As part of the sale agreement, the current applicant retained the right to use as many as all of the.spaces provided that, among other requirements, the private use be restricted to night time (5 p.m. to 6 a.m.) use. For the use of these spaces the applicant is required to pay the City a $500.00 per space annual fee. On August 9. 1989 the Commission concurred with the Executive Director's determination to approve Coastal Development Permit No. 5 -89 -512 (Doan) allowing construction of a 2375 square foot restaurant at 2900 Newport Blvd. Under that approval, the restaurant was allowed to use 18 in -lieu spaces in the same public parking lot now proposed for the same use. However in that case the public parking spaces were available for the private development only after 5 p.m. Beach and visitor parking demand generally drops after 5 p.m. The operating hours of the proposed restaurant will be 6 a.m. to 11 p.m. Sunday through Thursday and 6 a.m. to 2 a.m. Friday and Saturday. These operating hours result in parking demand that will conflict with prime beach and visitor use (i.e. daytime hours), a situation that did not occur under the project approved under 5 -89 -512 for the same applicant. In this case, the • conflict results in inadequate parking for the proposed project prior to 5 p.m. The applicant has an agreement with the City allowing the use of the public parking lot for the existing commercial building between the hours of 5:00 p.m. to 6:00 a.m. However, under the current proposal the daytime restriction would be removed and parking for the proposed restaurant in the public parking lot would be allowed during daytime hours. The end result would be that the applicant may use all 45 spaces of the public lot from 5 p.m. to 6 a.m. and 29 or 64% of the spaces during the day. The City staff's report to the Planning Commission for action on the Amendment to an Off -Site Parkina Agreement and ry "The daytime restriction on the use of in -lieu parking spaces was to insure that the Cannery Village Municipal Parking Lot would be available to daytime businesses and visitors to Cannery Village and the beach." Minutes from the Planning Commission hearing (February 18, 1993) on the Use Permit for the proposed project quote City staff as follows: "The subject Municipal Parking Lot is not currently occupied 100 percent 12 months of the year; however, during the summer months it is relatively heavily used by recreational users and by employees at City Hall." At the February 18, 1993 Planning Commission meeting, City staff questioned the appropriateness of displacing recreational users of the Municipal parking lot to allow for a new commercial use. The City's certified Land Use Plan states that the Balboa Peninsula experiences significant summer visitor traffic. The certified LUP also states: t MR 5 -93 -137 Revised Findings Page 5 There is also a difference in the peak -hour traffic for weekdays between • winter and summer. A comparison of peak -hour traffic shows that it is most heavily- affected on routes serving Balboa Peninsula during the summer. Usually, daily peak -hour traffic occurs between 5:00.p.m. and 6:00 p.m. At several locations during the summer, primarily in the Balboa Peninsula area, the peak hour occurs at midday, either between noon and 1:00 p.m. or between 1:00 p.m. and 2:00 p.m. The LUP further states: Parking is a major issue in the Newport Beach Coastal Zone. Observations indicate that the current supply is generally adequate in the winter for both residents and visitors. During the summer the demand for parking increases. On peak weekends during the summer, parking demand is highest in the beach areas. The LUP also includes the City's policy to provide the greatest number of on- street parking spaces possible. it can be inferred that the City's intent is to provide the greatest number of Public (not just on- street) parking spaces possible. Clearly the need for the provision of adequate parking with new development is an issue in the City and particularly on the Balboa Peninsula. As proposed, the project would result in the loss of 29 parking spaces currently available to the public in an area where parking demand for visitor uses and beach access is great. Without the use of the spaces available in the public lot, the subject site is deficient 26 parking spaces. Use of a public parking lot to serve private development would result in a direct loss of parking to the beach going public. Allowing the development to go forward as proposed with such a significant shortfall of parking spaces would also result in loss of parking for the beach going public. The loss would result from patrons of the proposed development seeking public spaces when the other parking associated with the new development is at capacity. However, if the project is conditioned to limit the public service area of the restaurant to no more than 1500 square feet prior to 5 p.m., the restaurant's need for the public parking spaces during peak beach and visitor use periods would be eliminated. With the public service area limited to 1500 square feet prior to 5 p.m., the parking demand of the proposed restaurant /brewpub would be lessened to 30 spaces. Additionally, the existing second floor office space will require 13 parking spaces, creating a total demand of 43 spaces. Without the use of the public parking lot, 43 parking spaces are provided. When Coastal Development Permit No. 5 -89 -512 (Doan) was approved, the Executive Director determined that because the public parking lot was not necessary to serve the development before 5 p.m., adequate parking was provided. The special condition required in the subject application is consistent with that past action. To assure that the public area limitation prior to 5 p.m. is enforced for the life of the proposed project, the hours limitation must be recorded as a deed restriction. A second special condition is required to assure that the development will maintain off -site parking arrangements for the life of the development since only 2 parking spaces are provided on -site. 0 5 -93 -137 Revised findings Page 7 Additionally, to assure that the service area restriction is enforced, a special condition requiring evidence that the City Council has rescinded the Amendment to Parking Agreement which was approved February 18, 1993, must be submitted to the Executive Director. The Amendment to Parking Agreement allowed the daytime use of the public parking lot to serve the private development. Once rescinded, the applicant would not be allowed use of the public parking spaces prior to 5 p.m. Additionally, to assure that the restricted restaurant public area is enforced, thereby maintaining the lessened parking demand, the applicant must submit evidence that the City's Code Enforcement Department will enforce the public area restriction. The City's Code Enforcement Department regularly enforces similar restrictions imposed by the City. Therefore, the Commission finds, that as conditioned the project is consistent with Sections 30210 and 30252 of the Coastal Act regarding public access and recreation and the provision of adequate parking with new development. C. Local Coastal Prouram Section 30604(a) of the Coastal Act provides that the Commission shall issue a Coastal Development Permit only if the project will not prejudice the ability of the local government having jurisdiction to prepare a Local Coastal Program which conforms with the Chapter 3 policies of the Coastal Act. The Newport Beach Land Use Plan was certified on May 19, 1982. As conditioned to restrict the public service area until after 5 p.m., approval of the proposed development will not prejudice the City's ability to prepare a Local Coastal Program Implementation Plan for Newport Beach that is consistent with the Chapter 3 policies of the Coastal Act as required by section 30604(a). D. California Environmental Quality Act Section 13096(a) of the Commission's administrative regulations requires Commission approval of a Coastal Development Permit application to be supported by a finding showing the application to be consistent with any applicable requirements of the California Environmental Quality Act (CEQA). The proposed project is in an existing urbanized area with adequate services and utilities provided and so will not cause significant adverse impacts on the environment. Additionally, as conditioned, the proposed project will provide adequate parking and so will not interfere with public access in the area. Therefore, the Commission finds that, as conditioned,,the project is consistent with the requirements of the Coastal Act to conform to CEQA. 9326E 9 VD o c a %Aamrar MAP ,w i NE WP OR T c,$ DISTRICTING MAP NEWPORT BEACH — CALIFORNIA w .µ I 11•� iwwliRt11w16 wmmonm ML0U wg0 [w T Y sow INlt oumwm , LNwt wwYw[wc" b 00 ►t {w wYeaeW commom wn* WAWU*my foomm fwwW67ww" WAN" "tog% wxY47W Taw OR AQ pf on w►.*" Mow 00. /G Nw .n :• ��� '�'Et�MIT Na• A41- vow • a�xtti.t -b: f �4 �5 RMA • r imp - - A=rJVJL 0 l a—went OV awns r�rrr�s 11OOOL, 12 s� I• lid IIIIIIIIIe 0 ly Exh,�,b%+ 5--,73-137 610 {�1.�.i� v Y•Y.Y w 1.. r` •���.rr =Nl •��w.w wNIMIN�NI ...��.•. Vrl'�31 RMA • r imp - - A=rJVJL 0 l a—went OV awns r�rrr�s 11OOOL, 12 s� I• lid IIIIIIIIIe 0 ly Exh,�,b%+ 5--,73-137 610 :,-.f 11 xv VA It QD lop t's. UA 2 _r• wwx.w ���� "M= Joe w j '0.7 AYIII�'19 M•713B . Ilii i I t R %` t 5 -93 -1:37 Newport Reach Brewing Company, Inc. "(the Operators) ", is a California Corporation formed to construct and operate a restaurant /brew -pub to be called Newport Beach Brewing Company, which will be located at 2920 Newport Boulevard in Newport Beach, California. The restaurant will be open from 6:00 a.m. to 11:00 p.m., five days a week and 6:00 a.m. to 2:00 a.m., Friday and Saturday. There will be no live entertainment. The exterior of the restaurant /brew -pub will offer a person passing -by the "old world" ambiance of a fun and energetic eating and drinking establishment. This highly desirable Cap Cod designed building is highlighted with a random pattern brick front, shingle roof, gables, window walk, and painted wood trim. The focal point of the restaurant /brew -pub will be the custom made copper accented stainless steel beer brewing equipment that will be placed behind the bar and will rise to the ceiling of the building. These brewing tanks and storage vats will be cleaned and polished daily to keep their luster and appeal. The Operators of the restaurant /brew -pub are working carefully with their experienced architect and design team to select a theme that will create a warm, yet vibrant environment for patrons to enjoy. An emphasis for the interior of the restaurant will be comfortable stained hard -wood and brick that offer a rustic old world charm and ambiance. The bar is expected to be stained and shined dark hardwood and cooper with a brass foot rail that will give] the immediate area an "upper - class" feel. There will be bountiful seating at the bar and on bar stools directly across from the bar. There will be seating at tables throughout the remainder of the restaurant, as well as on the patio. The walls will be brick and decorated with memorabilia from the brewing industry with particular emphasis on California pre - prohibition breweries, early Newport Beach and brew -pubs and micro - brewers currently operating In California and the Pacific Northwest. The restaurant's menu will feature classic, as well as, up- to -date cuisine that will appeal to the modern palate. Appetizers will include buffalo wings, beer battered fried onion rings, and "Armadillo eggs" (stuffed jalapeno peppers), a visible custom brick wood fired pizza oven will be the focal point as a number of Individual gourmet wood fired pizzas will be served. Newport Beach's "finest" fresh ground burger will also head the entrees with other choices including a "naked" chicken breast sandwich, and a selected number of pasta dishes. A wide variety of salads will be offered either before a meal or as a meal themselves and "world E 57': 3 3 7 0 0 0 N HER= BRACH COIRPlL�► BREWING Newport Reach Brewing Company, Inc. "(the Operators) ", is a California Corporation formed to construct and operate a restaurant /brew -pub to be called Newport Beach Brewing Company, which will be located at 2920 Newport Boulevard in Newport Beach, California. The restaurant will be open from 6:00 a.m. to 11:00 p.m., five days a week and 6:00 a.m. to 2:00 a.m., Friday and Saturday. There will be no live entertainment. The exterior of the restaurant /brew -pub will offer a person passing -by the "old world" ambiance of a fun and energetic eating and drinking establishment. This highly desirable Cap Cod designed building is highlighted with a random pattern brick front, shingle roof, gables, window walk, and painted wood trim. The focal point of the restaurant /brew -pub will be the custom made copper accented stainless steel beer brewing equipment that will be placed behind the bar and will rise to the ceiling of the building. These brewing tanks and storage vats will be cleaned and polished daily to keep their luster and appeal. The Operators of the restaurant /brew -pub are working carefully with their experienced architect and design team to select a theme that will create a warm, yet vibrant environment for patrons to enjoy. An emphasis for the interior of the restaurant will be comfortable stained hard -wood and brick that offer a rustic old world charm and ambiance. The bar is expected to be stained and shined dark hardwood and cooper with a brass foot rail that will give] the immediate area an "upper - class" feel. There will be bountiful seating at the bar and on bar stools directly across from the bar. There will be seating at tables throughout the remainder of the restaurant, as well as on the patio. The walls will be brick and decorated with memorabilia from the brewing industry with particular emphasis on California pre - prohibition breweries, early Newport Beach and brew -pubs and micro - brewers currently operating In California and the Pacific Northwest. The restaurant's menu will feature classic, as well as, up- to -date cuisine that will appeal to the modern palate. Appetizers will include buffalo wings, beer battered fried onion rings, and "Armadillo eggs" (stuffed jalapeno peppers), a visible custom brick wood fired pizza oven will be the focal point as a number of Individual gourmet wood fired pizzas will be served. Newport Beach's "finest" fresh ground burger will also head the entrees with other choices including a "naked" chicken breast sandwich, and a selected number of pasta dishes. A wide variety of salads will be offered either before a meal or as a meal themselves and "world E 57': 3 3 7 0 0 0 N 0 Championship"I homemade chili will be served in a similar manner. There will also be an assortment of fresh baked desserts available to patrons of the establishment. The restaurant /brew -pub -intends to offer a full service wine and beer bar with the emphasis on premium beer that will be brewed on the premises. There will usually be four to six beers available that were brewed on site. The range of beers will include ales, piisners, lagers and stouts. The brewery will produce approximately 16 varieties of beer each year, including such special seasonal flavors as Octoberfest Piianor and Christmas Ala. The beer should present Itself as quite a value to the customer, since a 16 -ounce glass of premium, rich beer will cost justly slightly more than a 12 -ounce bottle of mass produced domestic beer. The beer brewed on the premises will easily overmatch both domestic and imported beers in quality and taste. A claim such as this can be made since the ingredients will be of the highest quality and procured under the direct supervision of the brew - master and the beer will be served as soon as it has completed fermenting, giving the consumer a fresh taste without any preservatives. The bar will also offer a full range of soft drinks, wines, as well as bottled domestic beer with a limited selection of bottled imported alcoholic and non - alcoholic beers. The Operators intend to construct the restaurant /brew -pub at 2920 Newport Boulevard which is the corner of Newport Boulevard and 30th Street between Newport Boulevard and Villa Way in Newport Beach, California (the "Premises "). The Premises is located within thg "Cannery Village" area of Newport Beach which is intended to serve as an active pedestrian- oriented specialty retail /restaurant area with a wide range of visitor - serving, neighborhood commercial, and marine- related uses permitted. STATE OF CALIFORNIA —TIE RESOURCES AGENCY 1 kP1 __ 6 PETE WaSON, Gewmer CALIFORNIA COASTAL COMAMSSION SOUTH COAST AREA Filed: 4/19/93 145 W. BROADWAY, STE. 380 49th Da y: 6/7/93 P.O. Box 1450 LONG BEACH, a 90e0¢u16 180th Day: 10/16/93 Staff: MV� (310) S°as0°1 Staff Report: 5/26/93 Hearing Date: 7/13 -16/93 Commission, AAcct�i�q v ft T1jr ZRa Fi�r(.o�nsit�PL7 STAFF REPORT: REGULAR CALENDAR ;a += C: sgeg R'i'ieF =u APPLICATION NO.: 5 -93 -137" Appcot�G vrit APPLICANT: The Doan Trust AGENT: Nancy Lucas - Y ` a?'f't ;w•i PROJECT LOCATION: 2920 Newport Blvd., Newport Beach, Orange County. PROJECT DESCRIPTION: Conversion of an existing 4200 square foot former market /deli (currently vacant) to a restaurant /brew pub and the addition of 600 square feet of outdoor dining. Existing 3100 square foot, second floor office will remain. Lot area: 21,638 square feet Building coverage: 4,178 square feet Pavement coverage: 14,910 square feet Landscape coverage: 2,550 square feet Parking spaces: 72 Zoning: Retail & Service Commercial Plan designation: Retail & Service Commercial Ht abv fin grade: 31 feet LOCAL APPROVALS RECEIVED: Approval in Concept, City of Newport Beach; Use Permit No. 3485, City of Newport Beach. SUBSTANTIVE FILE DOCUMENTS: City Planning Commission Staff Report dated 2/18/93; Minutes from the City Planning Commission Meeting of 2/18/93; City Council Staff Report dated 3/8/93; California Coastal Commission's Adopted Regional Interpretive Guidelines for Orange County; City of Newport Beach certified Land Use Plan; 5 -88 -252 (City of Newport Beach); 5 -89 -512 (Doan). SUMMARY OF STAFF RECOMMENDATION: Staff is recommending approval with special conditions restricting the hours of operation to after 5 p.m. to avoid negative impacts on public access and recreation that may otherwise result from inadequate parking and to maintain off -site parking agreements. Is -it 5 -93 -137 Page 2 STAFF RECOMMENDATION: The staff recommends that the Commission adopt the following resolution: I. ADDroval with Conditions. The Commission hereby ra ants a permit, subject to the conditions below, for the proposed development on the grounds that the development will be in conformity with the provisions of Chapter 3 of the California Coastal Act of 1976, will not prejudice the ability of the local government having jurisdiction over the area to prepare a Local Coastal Program conforming to the provisions of Chapter 3 of the Coastal Act, and will not have any significant adverse impacts on the environment within the meaning of the California Environmental Quality Act. II. Standard Conditions. 1. Notice of Receipt and Acknowledgment. The permit is not valid and development shall not commence until a copy of the permit, signed by the permittee or authorized agent, acknowledging receipt of the permit and acceptance of the terms and conditions, is returned to the Commission office. 2. Expiration. If development has not commenced, the permit will expire two years from the date this permit is reported to the Commission. Development shall be pursued in a diligent manner and completed in a reasonable period of time. Application for extension of the permit must be made prior to the expiration date. 3. Compliance. All development must occur in strict compliance with the proposal as set forth in the application for permit, subject to any special conditions set forth below. Any deviation from the approved plans must be reviewed and approved by the staff and may require Commission approval. 4. Interpretation. Any questions of intent or interpretation of any condition will be resolved by the Executive Director or the Commission. 5. Inspections. The Commission staff shall be allowed to inspect the site and the project during its development, subject to 24 -hour advance notice. 6. Assignment. The permit may be assigned to any qualified person, provided assignee files with the Commission an affidavit accepting all terms and conditions of the permit. 7. Terms and Conditions Run with the Land. These terms and conditions shall be perpetual, and it is the intention of the Commission and the permittee to bind all future owners and possessors of the subject property to the terms and conditions. S ,I'?- 5 -93 -137 Page 3 III. Special Conditions: 1. Deed Restriction Limiting Hours of Operation Prior to issuance of the coastal development permit, the applicant shall execute and record a deed restriction, in a form and content acceptable to the Executive Director, which shall provide that the subject restaurant /brewpub , shall not be open before 5 p.m. The document shall run with the land, binding all successors and assigns, and shall be recorded free of prior liens. 2. Maintainance of Off -Site Parking The proposed project includes the use of off -site parking for which the applicant has entered into long -term parking agreements. Prior to issuance of the coastal development permit, the applicant shall execute and record a deed restriction, in a form and content acceptable to the Executive Director, which shall provide that the applicant shall maintain, for the life of the development, 67 off -site parking spaces during the hours the development is open for business. IV. FINDINGS AND DECLARATIONS The Commission finds and declares as follows: Pro3ect Description The applicant proposes to convert an existing 4200 square foot former market /deli (currently vacant) into a restaurant /brew pub and to add 600 square feet of outdoor dining. The existing 3100 square foot, second floor office space will remain. The public service area of the proposed restaurant will be 2800 square feet including the proposed outdoor patio dining area. The subject site is located in the Cannery Village /McFadden Square area of the Balboa Peninsula in Newport Beach. The land use designation of the subject site is Retail and Service Commercial. The proposed restaurant use is consistent with that designation. B. Public Access /Parking Section 30210 of the Coastal Act requires maximum access and recreation be provided for the general public. Section 30252 of the Coastal Act states, in part: The location and amount of new development should maintain and enhance public access to the coast by (4) providing adequate parking facilities or providing substitute means of serving the development with public transportation. 0' 0 The subject site is located in an area that is historically popular with the beach going public. In addition to miles of wide sandy beach, the Balboa • Peninsula contains many restaurants and visitor serving retail areas as well as the two piers and the fun zone. Because of the area's popularity with the general public it often reaches peak capacity during prime visitor periods. 15 5 -93 -137 Page 4 The area within the existing building proposed for restaurant use is currently vacant. The former use was a market /deli, The proposed development represents an intensification of use, triggering the need to evaluate parking. When development does not provide adequate parking, patrons of that development are forced to use parking that is available to the general public. This results in patrons of private uses competing with beach goers for available public parking spaces and reduced parking supply for access and recreational uses. Lack of public parking can deter the public from using certain beach areas and other visitor amenities. The Balboa Peninsula, particularly in the McFadden Square area, includes many pre - Coastal Act buildings which were constructed without adequate parking. That adds to the general parking shortage in the area. Consequently, it is important that all new development provide adequate parking so as not to displace public beach goer and visitor parking. The Commission has adopted regional guidelines that provide guidance when determining the parking need for various uses. In past actions the Commission has consistently applied the parking ratios described in the regional guidelines for new development in the Balboa Peninsula area. For restaurant use the guidelines recommend a ratio of one parking space for every fifty square feet of public service area. For general office use, the Commission's guidelines recommend a ratio of one space for every 250 square feet of gross floor area. The City of Newport Beach zoning requirements for parking, in this case, are consistent (for office uses) or more restrictive (for restaurant use: one space for every forty square feet of public service area). 9 Both the City and the Commission apply a similar formula for determining parking demand in the subject area. This indicates that the ratio is appropriate in defining specific parking needs for this area. 0 The City's certified Land Use Plan requires that all new development shall provide adequate off street parking to meet the requirements of the City's zoning code. In this case the City has found that the amount of parking provided, including the use of existing spaces within a public parking lot, meets the zoning code requirements. .However, Coastal Act Section 30252 requires that new development provide adequate parking in a manner which maintains and enhances coastal access. In this case because the project proposes to use existing spaces within a public parking lot the Commission cannot find adequate parking will be provided. Where there is no certified total Local Coastal Program, the Commission must find a proposed project consistent with the chapter three policies of the Coastal Act. The certified Land Use Plan, when there is a conflict, serves as guidance only. Based on the above guidelines ratio, the parking demand generated by the proposed project is 56 spaces. In addition, the existing office space on the second floor generates a demand of 13 spaces. There are two spaces on -site. Additionally the applicant has a long -term lease for the use of 41 spaces in an adjacent private parking lot. The applicant proposes to provide a total of 72 parking spaces. However, of that number, 29 are acquired through a lease agreement with the City to use a parking lot that is currently available to the public. Without the public parking lot spaces, the proposed project would be deficient by 26 spaces, a significant shortfall. 14 5 -93 -137 Page 5 Coastal Development Permit No. 5 -88 -252 (City of Newport Beach) allowed construction of the public parking lot in question. In approving that development, the Executive Director determined that parking was a severe problem in the area and that the parking lot would provide 45 additional public parking spaces to be used for visitor serving uses and businesses. The current applicant sold the area now containing the public parking lot to the City in 1988. As part of the sale agreement, the current applicant retained the right to use as many as all of the spaces provided that, among other requirements, the private use be restricted to night time (5 p.m. to 6 a.m.) use. For the use of these spaces the applicant is required to pay the City a $500.00 per space annual fee. On August 9, 1989 the Commission concurred with the Executive Director's determination to approve Coastal Development Permit No. 5 -89 -512 (Doan) allowing construction of a 2375 square foot restaurant. Under that approval, the restaurant was allowed to use 18 in -lieu spaces in the same public parking lot now proposed for the same use. However in that case the public parking spaces were available for the private development only after 5 p.m. Beach and visitor parking demand generally drops after 5 p.m. The operating hours of the proposed restaurant will be 6 a.m. to 11 p.m. Sunday through Thursday and 6 a.m. to 2 a.m. Friday and Saturday. These operating hours result in parking demand that will conflict with prime beach and visitor use hours, a situation that did not occur under the project approved under 5 -89 -512 for the same applicant. In this case, the conflict results in inadequate parking for the proposed project. The applicant has an agreement with the City allowing the use of the public parking lot for the existing commercial building between the hours of 5:00 p.m. 6:00 a.m. However, under the current proposal the daytime restriction would be removed and parking for the proposed restaurant in the public parking lot would be allowed during daytime hours. The end result would be that the applicant may use all 45 spaces of the public lot from 5 p.m. to 6 a.m. and 29 or 64% of the spaces during the day. The City staff's report to the Planning Commission for action on the Amendment to an Off -Site Parking Agreement and "The daytime restriction on the use of in -lieu parking spaces was to insure that the Cannery Village Municipal Parking Lot would be available to daytime businesses and visitors to Cannery Village and the beach.' Minutes from the Planning Commission hearing (February 18, 1993) on the Use Permit for the proposed project quote City staff as follows: "The subject Municipal Parking Lot is not currently occupied 100 percent 12 months of the year; however, during the summer months it is relatively heavily used by recreational users and by employees at City Hall.° At the February 18, 1993 Planning Commission meeting, City staff questioned the appropriateness of displacing recreational users of the Municipal parking lot to allow for a new commercial use. The City's certified Land Use Plan states that the Balboa Peninsula experiences significant summer visitor traffic. The certified LUP also states: A5 5 -93 -137 Page 6 There is also a difference in the peak -hour traffic for weekdays between winter and summer. A comparison of peak -hour traffic shows that it is most heavily affected on routes serving Balboa Peninsula during the summer. Usually, daily peak -hour traffic occurs between 5:00 p.m. and 6:00 p.m. At several locations during the summer, primarily in the Balboa Peninsula area, the peak hour occurs at midday, either between noon and 1:00 p.m. or between 1:00 p.m. and 2:00 p.m. The LUP further states: Parking is a major issue in the Newport Beach Coastal Zone. Observations indicate that the current supply is generally adequate in the winter for both residents and visitors. During the summer the demand for parking increases. On peak weekends during the summer, parking is highest in the beach areas. The LUP also includes the City's policy to provide the greatest number of on- street parking spaces possible. It can be inferred that the City's intent is to provide the greatest number of public (not just on- street) parking spaces possible. Clearly the need for the provision of adequate parking with new development is an issue in the City and particularly on the Balboa Peninsula. As proposed, the project would result in the loss of 29 parking spaces currently available to the public in an area where parking demand for visitor uses and beach access is great. without the use of the spaces available in the public lot, the subject site is deficient 26 parking spaces. Use of a public parking lot to serve private development would result in a direct loss of parking to the beach going public. Allowing the development to go forward with such a significant shortfall of parking spaces would result in loss of parking for the beach going public. The loss would result from patrons of the proposed development seeking public spaces when the other parking associated with the new development is at capacity. However, if the project is conditioned to limit the hours of operation until after 5 p.m., the need for the public parking spaces during peak beach and visitor use periods would be eliminated. If the hours are modified, the conflict between private and public use of the public parking lot would no longer exist. when Coastal Development Permit No. 5 -89 -512 (Doan) was approved, the Executive Director determined that because the public parking lot was not necessary to serve the development before 5 p.m., adequate parking was provided. The special condition required in the subject application is consistent with that past action. To assure that the modified hours remain in effect for the life of the proposed project, the hours limitation must be recorded as a deed restriction. A second special condition is required to assure that the development will maintain off -site parking arrangements since only 2 parking spaces are provided on -site Therefore, the Commission finds, that as conditioned the project is consistent with Sections 30210 and 30252 of the Coastal Act regarding public access and recreation and the provision of adequate parking with new development. 0 (0 5 -93 -137 Page 7 C. Local Coastal Program Section 30604(a) of the Coastal Act provides that the Commission shall issue a Coastal Development Permit only if the project will not prejudice the ability of the local government having jurisdiction to prepare a Local Coastal Program which conforms with the Chapter 3 policies of the Coastal Act. The Newport Beach Land Use Plan was certified on May 19, 1982. As conditioned to limit operating hours until after 5 p.m., approval of the proposed development will not prejudice the City's ability to prepare a Local Coastal Program Implementation Plan for Newport Beach that is consistent with the Chapter 3 policies of the Coastal Act as required by section 30604(a). D. California Environmental Ouality Act Section 13096(a) of the Commission's administrative regulations requires Commission approval of a Coastal Development Permit application to be supported by a finding showing the application to be consistent with any applicable requirements of the California Environmental Quality Act (CEQA). The proposed project is in an existing urbanized area with adequate services and utilities provided and so will not cause significant adverse impacts on the environment. Additionally, provide adequate parking and so area. Therefore, the Commission consistent with the requirement s 8721E as conditioned, the proposed project will will not interfere with beach access in the finds that, as conditioned, the project is of the Coastal Act to conform to CEQA. -11 � "V'ICINiTY MAP , iJ JC! MA } -4. \ \ • LP -i 4 ` ` 4v MAP ry •GRM1 RGitlNTG � N rG• T'+ 1 1 R i[Qf9l[PNI[tlMilµ PtlrLG ' P1 � 0 K1 s n. un"AmmG OK N.MJP 1 � ' 'M1 4L • !1 �1 m MRR . O P r. �o Y a Y r• 1p ��� Gr -6 P-i i w6 PC i q lk� RC • W/J 0 PLC P-C 2VEWPORT BA MAP DISTRICTING MAP INPORT BEACH - CALIFORNIA •GRM1 RGitlNTG T 1il LiG{ ICRP M1M NLL N rG• T'+ 1 O YWG L YOtl1Y1mR[t1tl16RN R i[Qf9l[PNI[tlMilµ PtlrLG GwL1NI[MNLITMYT 4 Stub. WRMK WEFTM - TC 00 C f n. un"AmmG OK N.MJP • L1s,E 'PEfzM�T Nv. 31$5 MAP 010. C I oaf v jbvaw v aamw �V Tit os Ct d, r [ r rc� E 1 (t2, I� fill too • �orr.vs rw � 1 �_ ��lta�ty � 11 i 1! (• � L • � 33 :11.: • p EXk,�b 5- '73-137 1 m� rr`sw -Mrs nm it m Nm _sp Lmr.w wowww � lAll/ m.M 0 �"^1 fi •' S r ' I.imi, N C 5- 93-i�7 45k NEWPORT BEACH BREWING COMPANY Newport Beach Brewing Company, Inc. "(the Operators)", is a California Corporation formed to construct and operate a restaurant /brew -pub to be called Newport Beach Brewing Company, which will be located at 2920 Newport Boulevard in Newport Beach, California. The restaurant will be open from 6:00 a.m. to 11:00 p.m., five days a week and 6:00 a.m. to 2:00 a.m., Friday and Saturday. There will be no live entertainment. The exterior of the restaurant /brew -pub will offer a person passing -by the "old world" ambiance of a fun and energetic eating and drinking establishment. This highly desirable Cap Cod designed building is highlighted with a random pattern brick front, shingle roof, gables, window walk, and painted wood trim. The focal point of the restaurant /brew -pub will be the custom made copper accented stainless steel beer brewing equipment that will be placed behind the bar and will rise to the ceiling of the building. These brewing tanks and storage vats will be cleaned and • polished daily to keep their luster and appeal. The Operators of the restaurant /brew -pub are working carefully with their experienced architect and design team to select a theme that will create a warm, yet vibrant environment for patrons to enjoy. An emphasis for the interior of the restaurant will be comfortable stained hard -wood and brick that offer a rustic old world charm and ambiance. The bar is expected to be stained and shined dark hardwood and cooper with a brass foot rail that will give the immediate area an "upper - class" feel. There will be bountiful seating at the bar and on bar stools directly across from the bar. There will be seating at tables throughout the remainder of the restaurant, as well as on the patio. The walls will be brick and decorated with memorabilia from the brewing industry with particular emphasis on California pre - prohibition breweries, early Newport Beach and brew -pubs and micro - brewers currently operating in California and the Pacific Northwest. The restaurant's menu will feature classic, as well as, up- to -date cuisine that will appeal to the modern palate. Appetizers will include buffalo wings, beer battered fried onion rings, and "Armadillo eggs" (stuffed jalapeno peppers). A visible custom brick wood fired pizza oven will be the focal point as a number of individual gourmet wood fired pizzas will be served. Newport Beach's "finest" fresh ground burger will also head the entrees with other choices including a "naked" chicken breast sandwich, and a selected number of pasta dishes. A wide variety of salads will be offered either before a meal or as a meal themselves and "World ,S= g3 -i37 M IJ� Championship" homemade chili will be served in a similar manner. There will also be an assortment of fresh baked desserts available to patrons of the establishment. The restaurant /brew -pub dntends to offer a full service wine and beer bar with the emphasis on premium beer that will be brewed on the premises. There will usually be four to six beers available that were brewed on site. The range of beers will include ales, pilsners, lagers and stouts. The brewery will produce approximately- 16 varieties of beer each year, including such special seasonal flavors as Octoberfest Pilsnor and Christmas Ale. The beer should present itself as quite a value to the customer, since a 16 -ounce glass of premium, rich beer will cost justly slightly more than a 12 -ounce bottle of mass produced domestic beer. The beer brewed on the premises will easily overmatch both domestic and imported beers in quality and taste. A claim such as this can be made since the ingredients will be of the highest quality and procured under the direct supervision of the brew - master and the beer will be served as soon as it has completed fermenting, giving the consumer a fresh taste without any preservatives. The bar will also offer a full range of soft drinks, wines, as well as bottled domestic beer with a limited selection of bottled imported alcoholic and non - alcoholic beers. The Operators intend to construct the restaurant /brew -pub at 2920 Newport Boulevard which is the corner of Newport Boulevard and 30th Street between Newport Boulevard and Villa Way in Newport Beach, California (the "Premises "). The Premises is located within the "Cannery Village" area of Newport Beach which is intended to serve as an active pedestrian- oriented specialty retail /restaurant area with a wide range of visitor - serving, neighborhood commercial, and marine- related uses permitted. I* 2 I A¢0 0 w ..W U 0 8 a m W W E a (� H z> ao - 2 n Wok C oo CW C4 a, E» Pd o F z rn F � rA x W 2 � F p: " 4` J M I< 9 6 7 L L �11 12 0 14' 15 16 17 18 19 20 21 22 23 24 25 26 27 RECORDING REQUESTED 11Y AND RETURN 70: California Coastal Commission 45 Fremont St., Suite 2000 San Francisco C4 94105 -2219 Attn: Legal Division DING tiE0umm Sri 0M4N AMER=N Tr" DEED RESTRICTION i IDOL 94-- iVJ r RecerdeI iFt Vi?IClal Reror& ui urdir3e CriuAiy, Ldliiorua Lee A. rmd, C:S'.RitiY R£CCr p1se 1 n :D .rPpS_ / R5 10 Tax: $ 0.4v" . i I. WHEREAS,•7bgCas W Doan and nnrnf-hlr r13„ Don as Tniataa.s-c& Tba Dom Tr„at of c pt 77,1974 , hereinafter referred to as the "Owner(s)," is /are the record owner(s) of the following real property: I hereinafter referred to as the "Property;" and II. WHEREAS, the California Coastal Commission, hereinafter referred to as the "Commission," is acting on behalf of the Feople of the State of California; and III. WHEREAS, the subject property is located within the coastal zone as defined in 430103 of Division 20 of the California Public Resources Code, hereinafter referred to as the "California Coastal Act of 1976," (the Act); and IV. WHEREAS, pursuant to the Act, the owner applied to the commission for a coastal development permit on the Property described above; and V. WHEREAS, coastal development uermit number '5- 93_,137, hereinafter referred to as.the "Permit," was granted on July 15' 1993 , by the Commission in accordance with the provision of the Staff Recommendation and Notice of Intent tt rr u Pe m't snd Findings; attached hereto as EX�IAT � aord �ierein incorporated by i 8 9 10 11 12 13 14 151 161 17 18 19 20 21 22 23 24 25 26 27 COURT PAPER Srni a or flL�,ll +�! $10 IIJ InCV •.l„ O!f reference; and VI. WHEREAS, the Permit was subject to the terms and conditions including, but not limited to, the following condition(s): 1. Deed Restriction Limiting Daytime Use Prior to issuance of the coastal development permit, the applicant shall execute and record a deed restriction, in a form and content acceptable to the Executive Director, which shall provide that no more than 1,500 square feet of service area of the subject restaurant /brewpub shall be open before 5 p.m. The document shall run with the land, binding all successors and assigns, and shall be recorded free of prior liens and encumbrances which the Executive Director determines to affect said interest. 2. Maintenance of Off -Site Parking The proposed'project includes the use of off -site parking for which the applicant has entered into long -term parking agreements. Prior to issuance of, the coastal development permit, the applicant shall execute and record a'deed restriction, in a form and content acceptable to the Executive Director, which) shall provide that the applicant shall maintain, for the life of the development, a total of 41 off -site parking spaces between 6:00 a.m. and 5:00 p.m. daily, and a total of 67 off -site parking spaces between 5:00 p.m. and 2:00 a.m. daily. The document shall run with the land, binding all successors: and assigns, and shall be recorded free of prior liens and encumbrances which the Executive Director determines to affect said interest. VII. WHEREAS, the Commission found that but for the imposition of the above conditions) the proposed development could not be found consisEent i with ,the provisions of the California Coastal Act of 1976 and that a permit could therefore not have been granted; and VIII. WHEREAS, owner has elected to comply with the condition(s) imposed by'the Permit and execute this Deed Restriction so as to enable Owner to undertake the development authorized by the Permit. -2 t) e 1 NOW, THEREFORE, in consideration of the granting of the Permit to the 2 Owner by the Commission, the Owner hereby irrevocably covenants with the 3 Commission that there be and hereby is created the following restrictions 4 on the use and enjoyment of said Property, to be attached to and become a 5 part of the deed to the property. 6 1. COVENANT, CONDITION AND RESTRICTION. The undersigned Owner, 7 for himself /herself and for his /her heirs, assigns, and successors in 8 interest, covenants and agrees that: 9 Applicant shall provide,that no more than 1,500 square feet of service area 10 of the subject restaurant /brewpub shall be open before 5:00 p.m. 11 Applicant shall maintain for the life of the development, a total of 91' 12 off —site parking spaces between 6:00 a.m. and 5:00 p.m. and a total of 67 Off—site parking spaces between 5:00 p.m. and 2:00 a.m. daily as shown on 13 exhibit C attached hereto and incorporated herein by reference. 14 15 I- 17 18 2. DURATION. Said Deed Restriction shall remain in full force 19 and effect during the period that said permit, or any modification or 20 amendment thereof remains effective, and during the period that the 21 development authorized by the Permit or any modification of said development 22 remains in existence in or upon any part of, and thereby confers benefit 23 upon, the Property described herein, and shall bind Owner and all his /her 24 assigns or successors in interest.. 25 3. TAXES AND ASSESSMENTS. It is intended that this Deed 26 Restriction is irrevocable and shall constitute an enforceable restriction 27 within the meaning of a) Article XIII, 48, of the California Constituti•11, COURT PAPER xr.ra ar cnu+vxxu —3_ 6r0. 113 ,xt v. e.rx� I eo raw . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 181 19 20 21 22 23I 24 25 26 27 E and b) §402.1 of the California Revenue and Taxation Code or successor statute. Furthermore, this Deed Restriction shall be deemed to constitute . a servitude upon and burden to the Property within the meaning of §3712(d) of the California Revenue and Taxation Code, or successor statute, which survives a sale of tax-deeded property. 4. RIGHT OF ENTRY. The Commission or its agent may enter onto the Property at times reasonably acceptable to the Owner to ascertain whether the use restrictions set forth above are being observed. S. REMEDIES. Any act, conveyance, contract, or authorization by the Owner whether written or oral which uses or would cause to be used or would permit use of the Proper.ty contrary to the terms of this Deed Restriction will be deemed a violation and a breach hereof. The Commission and the Owner may pursue any and all available legal and /or equitable remedies; to enforce the terms and conditions of this Deed Restriction. In the event of a breach, any forbearance on the part of either party to enforce the terms and provisions hereof shall not be deemed a waiver of enforcement rights regarding any subsequent breach. 6. SEVERABILITY. If any provision of these restrictions is held to be invalid, or for any reason becomes unenforceable, no other provision shall be thereby affected or impaired. Dated: /2�- G , 19515 SIGNED I&_rTftNED: 1/ AIL ti Tffi As &J�aAv' %usT •�r11 c�`1�/y -R Ti PRINT OR TYPE NAME OF ABOVE PRINT OR TYPE NAME OF ABOVE * * NOTARY ACKNOWLEDGMENT ON THE NEXT PAGE * * COURT PAPER RATE ai GLIM MA SM. 119 IEEV. 0.72, o.. -4- %I 7 8 9 10 11 12 13 a ! STATE OF CALIFORNIA COUNTY OF On Public personally appeared before me, A Notary , personally, known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is /are subscribed to the within instrument and acknowledged to me that he /she /they executed the same in his /her /their authorized capacity(ies), and that by his /her /their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature State of County of i� } On before me, IYIIqT'V / L�'1tZLVL- J (DATE) JNAMI TITLE OF OFFICER- I.E.,JN/EDOE, Norr YPuauc -) personally appeared L�. e ��r 1 'V_ 1,)7)a fil g , (NAMES) OF SMER(SI) .�+ F/LcG ersonelly known to me - OR - ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is /are sub- scribed to the within instrument and acknowledged 1 to me that he /she /they executed the same in 2 his /her /their authorized capacity(es), and that by 3 ORANGE COUNTY 4I 5 person(s), or the amity upon behaB of which the d129.1994 1152 ,1 person(s) acted, executed the instrument 6 7 8 9 10 11 12 13 a ! STATE OF CALIFORNIA COUNTY OF On Public personally appeared before me, A Notary , personally, known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is /are subscribed to the within instrument and acknowledged to me that he /she /they executed the same in his /her /their authorized capacity(ies), and that by his /her /their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature State of County of i� } On before me, IYIIqT'V / L�'1tZLVL- J (DATE) JNAMI TITLE OF OFFICER- I.E.,JN/EDOE, Norr YPuauc -) personally appeared L�. e ��r 1 'V_ 1,)7)a fil g , (NAMES) OF SMER(SI) .�+ F/LcG ersonelly known to me - OR - ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is /are sub- scribed to the within instrument and acknowledged FICIAL SEAL to me that he /she /they executed the same in Y R. MEZEUL ubRd- Cdlfdmia his /her /their authorized capacity(es), and that by [O:EMAO ORANGE COUNTY his /her /their signature(s) on the instrument the res person(s), or the amity upon behaB of which the d129.1994 1152 ,1 person(s) acted, executed the instrument Witness my h and and official seal. v? .a I RIGNTTRUMRPR ffrlCFMRALI a R CAPACITY CLAIMED BY SIGNER(S) ❑ INDIVIDUAL(S) • CORPORATE OFFICER($) • PARTNER(S) (TITLEM) • ATTORNEY IN FACT • TRUSTEE(S) • GUARDIAN /CONSERVATOR • OTHER: SIGNER IS REPRESENTING: MBE OF PERSON(S) OR ENTIrVpES)) ATTENTION NOTARY: The information requested below is Type Of Document ho wev �Mfraudulent attachment of this certificate to any unauthorized document THIS CERTIFICATE — MUST BE ATTACHED TO THE DOCUMENT Number of Pages i Date of Document -- DESCRIBED AT RIGHT: Signer(s) Other Than Named Above WOLCOTTS FM SU40 —ALL FIIAPOSE ADMONY.XMIN!"WITN SIGNER CAMAY /REPNESRaATMWRNGERPRINT –ft. U -92 01M WOLCOTTS FORMS, ING I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15' 16 17 is 19 0 • • This is to Certify that the deed restriction set forth above is hereby acknowledged by the undersigned officer on behalf of the California Coastal Commission pursuant to authority conferred by the California Coastal Commission when it granted Coastal Development Permit No. 5 -93 -137 on July 15, 1993 and the California Coastal Commission consents to recordation therof by its duly authorized officer. Dated: Jo rs, Staff Counsel California Coastal Commission STATE OF CALIFORNIA COUNTY OF SAN FRANCISCO On / 3 -,before me, Deborah L. Bove A Notary Public personally appeared John Bowers personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is /are subscribed to the within instrument and acknowledged to me that he /she /they executed the same in his /her /their 21 authorized capacity(ies), and that by his /her /their signature(s) on the 22 instrument the person(s), or the entity upon behalf of which the person(s) 23 acted, executed the instrument. 24 251 WITNESS my hand and official seal. �ig�� COURT PAPER i STwT[ aw CA U�aw STO 113 REV [.7 �lf —6- ! asp , Y E4` DEBORAH L. WYE C NOTARY K)BLIGCALIFORNA r CITY &COWYOF SAN FRANCISCO Com isssrn Expires October 4, 1995 On July 15, 1993 the California Coastal Commission granted to THE DOAN TRUST Permit 5 -93- -137 subject to the attached conditions, for development consisting of: Conversion of an existing 4200 square foot former market /deli (currently vacant) to a restaurant /brew pub and the addition of 600 square feet of outdoor dining. Existing 3100 square foot, second floor office will remain. more specifically described in the application file in the Commission offices. The development is within the coastal zone in Orange County at--2920 Newport Blvd., Newport Beach The actual development permit is being held in the Commission office until fulfillment of the Special Conditions imposed by the Commission. Once these conditions have been fulfilled, the permit will be issued. For your information, all the imposed conditions are attached. Issued on behalf of the California Coastal Commission on July 15, 1993 PETER DOUGLAS Executive Director By: 11 e LC. w Title: taff Analyst ACKNOWLEDGMENT: The undersigned permittee acknowledges receipt of this notice of the California Coastal Commission determination on Permit No. 5 -93 -137 and fully understands its contents, including all conditions imposed. J Date Pe ittee Please sign and return one copy of this form to the Commission office at the above address. EXHIBIT "A" STATE 6F CAUFORNIA —THE RESOURCES AGENCY PETE WILSON, G&, M, CALIFORNIA COASTAL COMMISSION — PAugust of SOUTH COAST AREA Date: 10 I9 245 W. BROADWAY, STE, 980 P.O. Box 1450 Permit Application No. 5 -93 -137 LONG BEACH, CA 90802.416 (510) SMS071 NOTICE OF INTENT TO ISSUE PERMIT On July 15, 1993 the California Coastal Commission granted to THE DOAN TRUST Permit 5 -93- -137 subject to the attached conditions, for development consisting of: Conversion of an existing 4200 square foot former market /deli (currently vacant) to a restaurant /brew pub and the addition of 600 square feet of outdoor dining. Existing 3100 square foot, second floor office will remain. more specifically described in the application file in the Commission offices. The development is within the coastal zone in Orange County at--2920 Newport Blvd., Newport Beach The actual development permit is being held in the Commission office until fulfillment of the Special Conditions imposed by the Commission. Once these conditions have been fulfilled, the permit will be issued. For your information, all the imposed conditions are attached. Issued on behalf of the California Coastal Commission on July 15, 1993 PETER DOUGLAS Executive Director By: 11 e LC. w Title: taff Analyst ACKNOWLEDGMENT: The undersigned permittee acknowledges receipt of this notice of the California Coastal Commission determination on Permit No. 5 -93 -137 and fully understands its contents, including all conditions imposed. J Date Pe ittee Please sign and return one copy of this form to the Commission office at the above address. NOTICE OF INTENT TO ISSOE PERMIT Page 2 of 3 Permit Application No. 5 -93 -137 STANDARD CONDITIONS: 1. Notice of Receipt and Acknowledgment. The permit is not valid and development shall not commence until a copy of the permit, signed by the permittee or authorized agent, acknowledging receipt of the permit and acceptance of the terms and conditions, is returned to the Commission office. 2. Expiration. If development has not commenced, the permit will expire two years from the date on which the Commission voted on the application. Development shall be pursued in a diligent manner and completed in a reasonable period of time. Application for extension of the permit must be made prior to the expiration date. 3. . Compliance, All development must occur in strict compliance with the proposal as set forth in the application for permit, subject to any special conditions set forth below. Any deviation from the approved plans must be reviewed and approved by the staff and may require Commission approval. 4. Interpretation. Any questions of intent or interpretation of any condition will be resolved by the Executive Director or the Commission. 5. Inspections. The—Commission staff shall be allowed to inspect the site and the project during its development, subject to•24 —hour advance notice. 6. Assignment. The permit may be assigned to any qualified person, provided assignee files with the Commission an affidavit accepting all terms and .conditions of the permit. 7. Terms and Conditions Run with the Land. These terms and conditions shall be perpetual, and it is the intention of the Commission and the permittee to bind all future owners and possessors of the subject property to the terms and conditions. SPECIAL CONDITIONS: 13 Deed Restriction Limiting Daytime Use Prior to issuance of the coastal development permit, the applicant shall execute and record a deed restriction, in a form and content acceptable to the Executive Director, which shall provide that no more than 1,500 square feet of service area of the subject restaurant /brewpub shall be open before 5 p.m. The document shall run with the land, binding all successors and assigns, and shall be recorded free of prior liens. 0�` Page 3 5 -93 -137 2.. Maintainance of Off —Site Parking The proposed project includes the use of off —site parking for which the applicant has entered into long —term parking agreements. Prior to issuance of the coastal development permit, the applicant shall execute and record a deed restrictioh, in a form and content acceptable to the Executive Director, which shall provide that, the applicant shall maintain, for the life of the development, a total of 41 off —site parking spaces between 6:00 a.m, and 5:00 p.m. daily, and a total of 67 off —site parking spaces between 5:00 p.m. and 2:00 a.m, daily. 3. Recissien of Amendment to Parking Agreement Prior to issuance of the coastal development permit, the applicant shall submit evidence'that the Amendment to Parking Agreement approved by the City of Newport Beach bn February 18, 1993, has been rescinded by the City Council. Additionally, prior to issuance of the coastal development permit, the applicant shall :::submit, for the review and approval of the Executive Director, a letter from the City of Newport Beach indicating that the City agrees that the City's Code Enforcement will enforce the public service area restrictions described in Special Condition 1. 4. :Submittal of Final. Plans Prior to issuance of the coastal development permit, the applicant shall submit, for the review and approval of the Executive Director, final floor plans illustrating the area proposed for the day use restriction imposed in special conditionl, above. AFTER YOU HAVE SIGNED AND RETURNED THE DUPLICATE COPY YOU WILL BE RECEIVING THE LEGAL FORMS TO COMPLETE (WITH INSTRUCTIONS) FROM THE SAN FRANCISCO OFFICE. WHEN YOU RECEIVE•THE DOCUMENTS IF YOU HAVE ANY QUESTIONS, PLEASE CALL THE LEGAL DEPARTMENT AT (415) 904 -5200. MV:tn 9280E M EXHIBIT "B" (LEGAL DESCRIP'TI'ON) PARCEL A: THE WESTERLY 12.5 FEET OF LOT 17, ALL OF LOTS 18, 19, 20 AND 21, AND THE EASTERLY 9.50 FEET OF LOT 22, BLOCK •330 OF LANCASTER'S ADDITION TO NEWPORT BEACH, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN.BOOK 5, PAGE 14 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE $COUNTY, CALIFORNIA. PARCEL B: PARCEL 1, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, ACCORDING TO THE PARCEL MAP FILED IN BOOK 92, PAGE 40 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. • JAN 12 194 14 =18 I f1•� P.RQPEftTIES ! 15 u ' PARCEL MAP ��" -. U Sogthwest Corner of . ' r, 84 30th- Street and Villa Way .. o Newport Beach, California e October, 1987 W14Y Richard A. Puller, M.A.I. 19 $I p I' n I I $ i• G I2 f I 89 p 7 {1 i 9 /2 Q O 3 ! 15 u I 83 -. U H . ' r, 84 T .. ' O e S W14Y s I I $ i• G I2 f I 89 p 7 {1 i Q I ASTE`R'S ADD, 4,4f.' 5_ 14 EL 0,4P'. . • P M. SZ = 40 'I "AO D ii On - 7 /Prni -r, ^"O..i NEW, ASSE BOOK 4 Exhibit--C I P.2/2 -. U W14Y s � 4 $ f IZ y 3 Z L m ' O 5 � 1I t as• AaQ 4 h ' � S °wt � P, M. 91- 40 ASTE`R'S ADD, 4,4f.' 5_ 14 EL 0,4P'. . • P M. SZ = 40 'I "AO D ii On - 7 /Prni -r, ^"O..i NEW, ASSE BOOK 4 Exhibit No. 4 sCITY OF NEWPORT BEACH Hearing Date: September 13, 1999 at. COMMUNITY AND ECONOMIC DEVELOPMENT Agenda Item No.: PLANNING DEPARTMENT Staff Person: Patrick J. Alford 3300 NEWPORT BOULEVARD f44 -3235 NEWPORT BEACH, CA 92458 (949) 644-320, FAX (949) 644.3250 REPORT TO THE MAYOR AND CITY COUNCIL SUBJECT: Newport Beach Brewing Company Appeal FILE COPY 2920 Newport Boulevard SUMMARY: An appeal by the applicant of the Planning Commission's denial of an amendment to Use Permit 3485 to allow a change in Alcoholic Beverage Control license type to allow full alcoholic beverage service. ACTION: Affirm or reverse the Planning Commission's denial of. • Use Permit No. 3485 (Amended) Background On August 5, 1999, the Planning Commission voted (3 ayes, 1 no, 3 absent) to deny the proposed amendment to Use Permit 3485. The appeal of the Planning Commission's decision was filed on August 19, 1999. Analysis The project denied by the Planning Commission would have allowed the restaurant/brewpub to go from beer and wine service only to full alcoholic .beverage service. The Planning Commission based its denial on the high crime rate and high concentration of licenses in the Cannery Village area. The Planning Commission determined that due to these factors, public convenience or necessity would not be served by the project. Furthermore, the Planning Commission concluded that approval of the project under these circumstances would be detrimental to the health, safety, peace, morals, comfort, and general welfare of persons residing or working in the area. The Planning Commission's review of the project followed the provisions of the Alcoholic Beverage Outlet (ABO) Ordinance. The ABO requires the Planning Commission to consider whether the use serves public convenience or necessity, the crime rate, the number of alcohol licenses per capita, the numbers of alcohol- related calls for service, crimes or arrests, and adjacent land uses. The Planning Commission noted that the crime statistics and ratio of alcoholic beverage licenses to population constitute an "undue concentration" of licenses under State law. Under these circumstances, the ABC is required to deny the application for the license unless the City determines that public convenience or necessity would be served by its issuance. �1 The Planning Commission also considered information provided by the Police Department. The Police Department cited the disproportionate impact alcohol related offenses continues to have on their workload and on the quality of life in the community. The Police Department also stated that while they had no serious concerns with the current operation, they believed that the project must be considered in light of the larger issue of the intensification of alcohol and related uses on the Balboa Peninsula, especially in the Cannery Village area. At the Planning Commission hearing, the applicant stated that they operate a good establishment and that full alcoholic beverage service is needed in order to stay competitive and offer improved services to their customers. The applicant cited statistics attributing less than one percent of the alcohol- related arrests in the area to the establishment. The applicant also stated that the over concentration issue was moot, since they were an existing establishment and were only modifying an existing license. The applicant further stated that the situation in the area will improve with the closing of the Cannery Restaurant and the Snug Harbor. Should the City Council choose to reverse the Planning Commission's denial of the project, findings and conditions for approval are contained in Exhibit `B" of the Planning Commission staff report. Submitted by: SHARON Z. WOOD Assistant City Manager Prepared by: PATRICK J. ALFORD Senior Planner Attachments: I. A eat Application. 2. August 5, 1999 Planning Commission staff report 3. August 5, 1999 Planning Commission meeting minutes. Newport Beach Brewing Co. Appeal September 13, 1999 Page 2 6 APPLICA Application No. Name of Appellant or person filing:_ Address: 4 ( 6- �C CITY OF NEWPORT BEACH Date of Planning Commission decision: Regarding application of ISION OF THE PLANNING COI I W E D (Description of application filed with Planning Commission) 's L ^ Kcp-d Phone:� I �� 'tlna fJcCIT ,�ig OR / 1 y 19 .1ina Y for Reasons for Appel : W e P-jr- c 1; A,3`{9S-t-o(( Ito L, &�„ /(/ -Ke- G t rcv jr5 tar,c�S//�� n1�-F� 06 ee- 1, Nor �l5 , C o t .Tor C D FOR OFFICE USE ONLY TLL a -t-,e- f- i'o jVSc •a � cvc� c ,ljcPvicc � ( ho-I'v��c,^ _ pT`/k1.�n$ fctidinc or G✓orKiKS in"1'�cnci,f��r� Date Date Appeal filed and Administrative Fee received: ''/�M'�c�k.�.o' `°t 19 1. Hearing Date. An appeal shall be scheduled for a headngyefore the City Council within thirty (30) days of the filing of the appeal unless both applicant and appellant or reviewing body consent to a later date (NBMC Sec. 20.95.050) cc: Appellant Planning (Furnish one set of mailing labels for mailing) File APPEALS: Municipal Code Sec. 20.95.0406 Appeal Fee: $278 pursuant to Resolution No. 98 -52 adopted on 7 -27 -98 (Deposit funds with Cashier in Account #2700 -5000) CITY OF NEWPORT BEACH COMMUNITY AND ECONOMIC DEVELOPMENT 0 PLANNING DEPARTMENT J t 53�NEWPORT BOULEVARD �4trFpnN`r NEWPORT REACH, CA 92658 (949) 644-32 —; FAX (949) 644-3250 SUBJECT: SUMMARY: ACTION: LEGAL DESCRIPTION: ZONING DISTRICT: LAND USE DESIGNATION: OWNER: Hearing Date: Agenda Item No.: Staff Person: Appeal Period: REPORT TO THE PLANNING COMMISSION Newport Beach Brewing Company 2920 Newport Boulevard August 5, 1999 1 Patrick J. Alford 644 -3235 14 Days An amendment to an existing use permit to allow a change in Alcoholic Beverage Control license type to allow full alcoholic beverage service. Hold hearing; approve, modify, or deny: • Use Permit No. 3485 (Amended) Parcel I of Parcel Map 92 -40 (restaurantlbrewpub site) and portions of Lots 17 and 22 of Lancaster's Addition (off -site parking lot). Cannery Village/McFadden Square Specific Plan (SP -6) - Specialty Retail (SR) District. Retail and Service Commercial Allan Fainbarg and Arnold D. Feuerstein, Anaheim 16 -"L bG j Pro N RMAOR ' AA VICINITY MAP . veve��� � note eo 1 � % « 1 i'° J ; �P + 5 ]0 gg 1 Use Permit 3485 (Amended) Y r Subject Property and Surrounding Land Uses Current land use: Commercial (eating and drinking establishmentloffice) To the north: 30`h Street with commercial (retail and office) /residential beyond. To the south: Public alley with commercial (eating and drinking establishment) beyond. To the east: Surface parking. To the west: Newport Boulevard with commercial (retail) beyond. Use Permit 3485A (Newport Beach Brewing Co.) August 5, 1999 Page 2 l�� Points and Authority Environmental Review (California Environmental Ouality Act) • It has been determined that the project is categorically exempt under Class I (existing facilities). Conformance with the General Plan ■ The Land Use Element of the General Plan designates the site for "Retail and Service Commercial" uses. Restaurants are permitted uses within this designation. Conformance with the Zoning Code ■ Eating and drinking establishments are permitted on the approval of a use permit in the SP -6 /SR District. • A use permit is required for any existing alcoholic beverage outlet seeking to change its type of retail liquor license with the Department of Alcoholic Beverage Control under the provisions of Chapter 20.89 of the Municipal Code. • Use permit procedures and requirements are set forth in Chapter 20.91 of the Municipal Code. Background On February 18, 1993, the Planning Commission approved (6 ayes, 1 absent) Use Permit No. 3485 for a combination restaurant and brewpub. On March 8, 1993, the City Council approved the use permit in conjunction with an amendment to an existing off -site parking agreement that would have allowed the project to use 29 parking spaces in the Cannery Village Municipal Parking Lot. On September 27, 1993, the City Council amended the use permit to reflect additional restrictions on the amount of net public area and the number of off -site parking spaces placed on the project by the California Coastal Commission I. Site Overview The project site is an 8,320 square foot parcel located at the southeast corner of the intersection of Newport Boulevard and 30'h Street. The site is developed with a two -story, 7,876 square foot structure. On the first floor, the restaurant occupies approximately 3,244 square feet and the brewery occupies approximately 1,532 square feet. The 3,100 square feet of the second floor is used as office space. ' The Coastal Commission was concerned that the use of 29 parking spaces in the Cannery Village Municipal Parking Lot would conflict with public use of these spaces during the day. a Use Permit 3485A (Newport Beach Brewing Co.) ,6 August 5, 1999 Page 3 X _ The project site contains approximately 2,276 square feet of net public area. However, it is limited by conditions to 1,500 square feet of net public area prior to 5:00 p.m., Monday through Friday. The project site contains 2 on -site parking spaces and there is an off -site parking agreement for an additional 41 spaces in the surface parking lot on the abutting property (410 30th Street). In addition, the project has access to 29 in -lieu parking spaces in the Cannery Village Municipal Parking Lot (426 301h Street) after 5:00 p.m. Proiect Overview The applicant is requesting an amendment to the existing use permit to allow the restaurantlbrewpub to go from beer and wine service only to full alcoholic beverage service (i.e., the sale of whiskey, rum, brandy, gin, and other distilled spirits). No modifications to the site plan, floor plan, elevations, or conditions of approval are proposed. Analvsis Under the provisions of the Alcoholic Beverage Outlet (ABO) Ordinance, an amendment to an existing use permit is required when an alcoholic beverage outlet changes its type of retail liquor license with the Department of Alcoholic Beverage Control (ABC). In this case, the change is from a Type 23 (Small Beer Manufacturer) to a Type 75 (On -Sale General Brew -Pub). The ABO Ordinance requires that the Planning Commission consider the following factors when approving a use permit: 1. Whether the use serves public convenience or necessity. 2. The crime rate in the reporting district and adjacent reporting districts as compared to other areas in the City. I The number of alcohol licenses per capita in the reporting district and in adjacent reporting districts as compared to the county -wide average. 4. The numbers of alcohol - related calls for service, crimes or arrests in the reporting district and in adjacent reporting districts. 5. The proximity of the alcoholic beverage outlet to residential districts, day care centers, park and recreation facilities, places of religious assembly, and schools. The project site is located within Police Reporting District No. 15 and within Census Tract No. 635.00. The charts below present 1997 data (most current available) related to factors 2, 3 and 4. Public Convenience or Necessity. Current City Council policy provides criteria for situations when the public convenience or necessity will not be served. However, this policy is only applicable to bars, cocktail lounges, cabarets, and nightclubs. Since the proposed project will not gy, Use Permit 3495A (Newport Beach Brewing Co.) �bJ August 5, 1999 Page 4 contain any of these uses, there is no policy requiring a finding that the proposed project does not serve the public convenience or necessity. Currently, there are 24 on -sale establishments providing full alcoholic beverage service in the area (see Table 1 below). However, the project is the only brewpub in the City. Therefore, the convenience of the public can arguably be served by the sale of distilled spirits in a restaurant/brewpub setting. It can also be argued that are an abundance of establishments providing full alcoholic beverage service in this area and that the public convenience or necessity would not be served by the addition of another. Both views must be balanced by the other four factors to be evaluated by the Planning Commission for this use permit. Based upon all the information assessed in these factors, the Planning Commission may determine whether this approval is necessary to serve the public convenience or necessity. Table 1 Full Alcoholic Bevera a Service Licenses Subject Adjacent Adjacent ABC License Type Reporting Reporting Reporting District No. 15 District No. 13 District No. 16 Type 21 4 1 1 Type47 21 6 2 Type 48 3 0 0 TOTAL. 28 7 3 Type 21 = Off -Sale General (grocery stores, convenience markets, etc.) Type 47 = On -Sale General for Bona Fide Public Eating Place (restaurants). Type 48 = On -Sale General Public Premises (bars and cocktail loun '-es). Crime Rate. The crime rate in Reporting District No. 15 currently exceeds the citywide crime rate by over 258% (see Table 2 below). Reporting Districts No. 13 and No. 16 are adjacent and also have crime rates that are above the citywide crime rate. The Police Department notes that during the first six months of 1999, reported offenses citywide for driving under the influence and drunkenness increased 19 %, when compared to the same period in 1998. Actual arrests for all offenses citywide only increased 8.8 %. Table 2 Crime Rates and Arrests Subject Adjacent Adjacent City-Wide Reporting Reporting Reporting District No. 15 District No. 13 District No. 16 Crimes Part 1: 3,370 354 121 177 Part 2: 3,300 749 132 253 Crime Rate: 4,780.14 12,343.10 5,620.07 6,941.18 Arrests Total Arrests: 3,562 951 131 270 Alcohol- Related: 1 44.19 % 1 64.67% 40.46% 1 52.96 % "Pan 1 Crimes" are homicide, forcible rape, robbery, aggravated assault, burglary, larceny- theft, auto theft, and arson. All other crimes are "Part 2 crimes." The "Crime Rate" the number of crimes per 100,000 people. "Alcohol- related arrest" means the offender had been drinking prior to the incident for which they were arrested. Use Permit 3485A (Newport Beach Brewing Co.) August 5. 1999 Page 5 e Under the provisions of Section 23958.4 of the California Business and Professions Code, one of the conditions that constitutes an "undue concentration" of licenses is crime statistics that exceed the citywide average by 20 %. The ABC is required to deny the application for the license unless the Police Department (as authorized by City Council Policy K -7) determines that public convenience or necessity would be served by its issuance. The Police Department has reviewed the proposed project and has stated that they have no serious concerns with the current operation. However, the Police Department also has stated that the project must be considered in light of the larger issue of the intensification of alcohol and related uses on the Balboa Peninsula, especially in the Cannery Village area, which has experienced resident complaints regarding alcoholic beverage outlets. The Police Department believes that this demonstrates the disproportionate impact alcohol related offenses continues to have on their workload and on the quality of life in the community. Therefore, the Police Department cannot endorse the proposed intensification of the ABC license and land use. Over Concentration. Census Tract 635.00 currently has a ratio of alcoholic beverage licenses to population that is above the average ratio of Orange County (see Table 3 below). Census Tract 628.00 is adjacent and also has a ratio of alcoholic beverage licenses to population that is above the average ratio of Orange County. The ratio of alcoholic beverage licenses to population also constitutes an "undue concentration" of licenses under the provisions of Section 23958.4 of the California Business and Professions Code. Therefore, the ABC is required deny the application for the license unless it is determined that public convenience or necessity would be served by its issuance. The Police Department is especially concerned about the concentration of ABC licenses on the Balboa Peninsula. Therefore, the Police Department is recommending that the proposed project be reviewed against the greater issue of intensifying alcohol usage on the peninsula. Table 3 Ratio of ABC Licenses to Population Projected Census Tract Census Tract Based on No. 635.00 No. 628.00 Orange County average 1990 Population: 6,182 4.959 ABC Licenses: On -sale licenses 46 19 7 (I per 134 persons) (I per 261 persons) ( I per 893 persons) Off -sale licenses 9 6 4 (I per 686 persons) (1 per 826 persons) (1 per 1,533 persons) Alcohol - Related Arrests. Alcohol related arrests means the offender had been drinking prior to the incident for which they were arrested. There were 951 arrests in Reporting District No. 15 during 1997 as compared to the 3,562 arrests citywide. Of the arrests made in Reporting District No. 15, 65% were alcohol- related, while 44% of the arrests citywide were alcohol- related. Reporting Use Permit 3485A (Newport Beach Brewing Co.) August 5. 1999 Pao 6 ,b C5 1` District No. 13 and No. 16 are adjacent. Reporting District No. 13 had alcohol- related arrests percentages that were slightly below the citywide percentages (41 %) and Reporting District No 16 had alcohol- related arrests percentages that were above the citywide percentages (53 %). At public hearings for other projects in the Cannery Village area, residents and business operators have reported a pattern of public nuisance behavior. Generally, this behavior is conducted by patrons of area restaurants and bars as they arrive, depart, or travel between establishments. The ABO Ordinance requires that the applicant take reasonable steps to discourage and correct objectionable conditions that constitute a nuisance in parking areas, sidewalks, alleys and other areas during business hours. However, in this area, with a high number of alcoholic beverage outlets, it is difficult to determine which establishment is responsible for public nuisance behavior in public areas. Adiacent Uses. There are no day care centers, park and recreation facilities, places of religious assembly, or schools in the immediate vicinity of the project site. However, the project is located in a mixed commercial- residential zoning district and there are residential dwelling units on 30`' Street, directly across from the project site. Therefore, there is always the potential for impacts to the residents associated with patrons arriving and departing from the project site. However, the Police Department has stated that they are not aware of disturbances originating from the project site. Recommendation Section 20.91.035 of the Municipal Code provides that in order to grant any use permit, the Planning Commission shall find that the establishment, maintenance or operation of the use or building applied for will not, under the circumstances of the particular case, be detrimental to the health, safety, peace, morals, comfort, and general welfare of persons residing or working in the neighborhood of such proposed use or be detrimental or injurious to property and improvements in the neighborhood or the general welfare of the City. The facts in this case support a finding that the proposed use would be detrimental to the area because the public convenience or necessity would not be served by the proposed change in Alcoholic Beverage Control license type to allow full alcoholic beverage service. The number of alcohol- related arrests and the over - concentration of alcoholic beverage outlets in the area would also support this finding. The findings for denial are provided as Exhibit "A." The Planning Commission could find that the issues normally associated with eating and drinking establishments have been addressed by the current conditions of approval, and the introduction of full alcoholic beverage service is not expected to change this situation nor be detrimental to the surrounding land uses. If the Planning Commission takes this action, the Police Department is recommending a new condition advising the applicant that a special event permit is required for events or promotional activities outside the normal operational characteristics of establishment. Also, staff has updated the original conditions of approval to remove conditions that are no longer applicable (i.e., those relating to the building's construction) and to add standard City requirements. The findings for approval and recommended conditions are provided as Exhibit "B." Use Permit 3485A (NewpoR Beach Brewing Co.) August 5, 1999 Page 7 V �V Submitted by: PATRICIA L. TEMPLE Planning Director t' C:&6. 61 'lt Imo_ Attachments: Prepared by: PATRICK J. ALFORD Senior Planner I. Exhibit "A" (findings for denial) 2. Exhibit "B" (findings and conditions for approval) 3. Applicant's project description and justification. 4. Census Tracts Map. 5. Reporting Districts Map. 6. Site plan and floor plan. Use Permit 3485A (Newport Beach Brewing Co.) August 5. 1999 Page 8 I �� ExHIBIT'W' FINDINGS AND CONDITIONS FOR DENIAL FOR USE PERMIT NO. 3485 (AMENDED) FINDINGS: 1. The proposed project is located in Police Reporting District No. 15, which has a crime rate that exceeds the citywide crime rate by over 258 %. This constitutes an "undue concentration" of licenses under the provisions of Section 23958.4 of the California Business and Professions Code. 2. The proposed project is located in Census Tract 635.00, which has a ratio of alcoholic beverage licenses to population that is above the average ratio of Orange County. This constitutes an "undue concentration' of licenses under the provisions of Section 23958.4 of the California Business and Professions Code. 3. The public convenience or necessity would not be served by the granting of the amendment to Use Permit No. 3485 to allow a change in Alcoholic Beverage Control license type to full alcoholic beverage service because of the undue concentration of licenses in the area. 4. Due to the undue concentration of alcoholic beverage outlets and their impact on the Cannery Village area, and because the public convenience or necessity would not be served, the proposed project would be detrimental to the health, safety, peace, morals, comfort, and general welfare of persons residing or working in the neighborhood of such proposed use and would be detrimental or injurious to property and improvements in the neighborhood or the general welfare of the City. i EXHIBIT `B" FINDINGS AND CONDITIONS FOR APPROVAL FOR USE PERMIT NO. 3485 (AMENDED) FINDINGS: 1. The Land Use Element of the General Plan designates the site for 'Retail and Service Commercial" uses and a restaurant/brewpub is considered a permitted use within this designation. 2. The project is located within the Cannery Village/McFadden Square Specific Plan (SP -6) - Specialty Retail (SR) District that permits eating and drinking establishments with a use permit. 3. On -sale alcoholic beverage outlets are permitted with the approval of a use permit. 4. This 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 1 (Existing Facilities). 5. The approval of the amendment to Use Permit No. 3485 to allow a full on -sale alcoholic beverage service 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, for the following reasons: • The restaurant /brewpub use is compatible with the surrounding commercial. and . nearby residential uses since eating and drinking establishments are typically allowed in mixed commercial districts. • Conditions have been added to address potential problems associated with traffic, parking, trash disposal, odors, and unsightly conditions. • A Condition has been added to require a special events permit for any event or promotional activity outside the normal operational characteristics of this restaurant business. ii °� b. The proposed project is consistent with the purpose and intent of Chapter 20.89 of the Zoning Code (Alcoholic Beverage Outlets) for the following reasons: ■ The convenience of the public will be served by the sale of distilled beverages in a restaurant/brewpub setting. The project is in an area where the crime rate exceeds the citywide average by more than 20 %, However, there is no evidence that this high crime rate is attributable to the proposed project. The number of alcohol licenses per capita in the reporting district and adjacent reporting districts is above the average for Orange County. However, the project has the only alcohol license for a brewpub, and the convenience of the public can be served by the sale of distilled spirits in a restaurant/brewpub setting. ■ The percentage of alcohol - related arrests in the reporting district in which the project is proposed and in the adjacent reporting district is higher than the percentage of alcohol - related arrests citywide. However, there is no evidence that the alcohol- related arrests are attributable to the project. No day care centers, places of religious assembly, park and recreation facilities, or schools are located in the vicinity of the project site. Residential uses are located in the vicinity of the project site. However, the project has been conditioned so as to address any potential impacts. 1. The proposed development shall be in substantial conformance with the approved site plan, floor plan and elevations, except as noted below. 2. That a covenant or other suitable, legally binding agreement shall be recorded against the off -site parking lot assuring that all of the requirements of Section 20.63.080 (I) of the Municipal Code, will be met by the current and future property owners. Said covenant or agreement may include provisions for its future termination at such time as the development on the building site is removed or at such time as the floor area devoted to the restaurant/brewpub reverts back to a base FAR use. 3. The applicant shall provide a minimum of one parking space for each 50 square feet of net public area before 5:00 p.m. and one parking space for each 40 square feet of net public area after 5:00 p.m. in conjunction with the restaurant/brewpub. 4. An amended off -site parking agreement shall be approved by the City Council, guaranteeing that a minimum of 41 parking spaces shall be provided on property � lfl located on Lots 18 -21 and portions of Lots 17 and 22, Block 230, Lancaster's Addition, for the duration of the existing and proposed uses located on Parcel 1, Parcel Map 9240 (Resubdivision No. 527). 5. The property owner shall pay for 29 in -lieu parking spaces in the Cannery Village Municipal Parking Lot on an annual basis for the nighttime operation (after 5:00 p.m.) of the restaurant /brewpub use as agreed upon by the Sales Agreement between the City of Newport Beach and the property owner. 6. The net public area of the restaurant/brewpub, which is devoted to daytime use Monday through Friday (prior to 5:00 p.m.) shall be limited to 1,500 square feet. The balance of the net public area shall be physically closed off to the public by a fixed barrier and shall not be used until after 5:00 p.m. daily. 7. The hours of operation for the restaurant/brewpub shall be limited to the hours between 6:00 a.m. and 11:00 p.m. Sunday through Thursday and between 6:00 a.m. and 2:00 a.m. on Friday and Saturday. 8. All employees shall park either in the privately owned off -site parking area or in one of the municipal parking lots in the area. 9. The operation of the brewery and the service of alcoholic beverages shall be ancillary to the primary food service operation of the restaurant. 10. The approval of this use permit is for a restaurant/brewpub and shall not be construed as the approval of a bar, cocktail lounge, or other use serving alcoholic beverages during hours not corresponding to regular meal service hours (food products sold or served incidentally to the sale or service of alcoholic beverages shall not be deemed as constituting regular meal service) nor as the approval of a cabaret, nightclub, or other use with the principal purpose of providing live entertainment and/or dancing. 11. No outdoor loudspeakers or paging system shall be permitted in conjunction with the proposed location. 12. A washout area for refuse containers shall be provided in such a way as to allow direct drainage into the sewer system and not into the Bay or storm drains, unless otherwise approved by the Building Department. 13. Kitchen exhaust fans shall be designed to control smoke and odor to the satisfaction of the Building Department. 14. All mechanical equipment and trash areas shall be screened from surrounding public streets and alleys and adjoining properties. 15. The development standards regarding walls surrounding the restaurant site and underground utilities shall be waived. iv `T 16. Should prerecorded music be played within the restaurant facility, such music shall be confined to the interior of the building, and all doors and windows shall be kept closed while such music is played. 17. A special events permit is required for any event or promotional activity outside the normal operational characteristics of this restaurant business that would attract large crowds, involve the sale of alcoholic beverages, include any form of on -site media broadcast, or any other activities as specified in the Newport Beach Municipal Code to require such permits. 18. Should this business be sold or otherwise come under different ownership, any future owners or assignees shall be notified of the conditions of this approval by either the current business owner, property owner or the leasing company. STANDARD CITY REQUIREMENTS: A. The project is subject to all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. B. Signs and displays shall not obstruct the sales counter, cash register, seller and customer from view from the exterior. C. Loitering, open container, and other signs specified by the Alcoholic Beverage Control Act shall be posted as required by the ABC. D. The applicant shall take reasonable steps to discourage and correct objectionable conditions that constitute a nuisance in parking areas, sidewalks, alleys and areas surrounding the alcoholic beverage outlet and adjacent properties must be taken during business hours if directly related to the patrons of the subject alcoholic beverage outlet. E. The exterior of the alcoholic beverage outlet shall be maintained free of litter and graffiti at all times. The owner or operator shall provide for daily removal of trash, litter debris and graffiti from the premises and on all abutting sidewalks within 20 feet of the premises. F. All owners, managers and employees serving and/or selling alcoholic beverages shall undergo and successfully complete a certified training program in responsible methods and skills for serving and selling alcoholic beverages. To qualify to meet the requirements of this section a certified program must meet the standards of the California Coordinating Council on Responsible Beverage Service or other certifying/licensing body which the State may designate. The establishment shall comply with the requirements of this section within 180 days of the issuance of the certificate of occupancy. v G. The project will comply with the provisions of Chapter 14.30 of the Newport Beach Municipal Code for commercial kitchen grease disposal. H. All signs shall conform to the provisions of Chapter 20.67 of the Municipal Code. I. This use permit for an alcoholic beverage outlet granted in accordance with the terms of this chapter shall expire within 12 months from the date of approval unless a license has been issued or transferred by the California State Department of Alcoholic Beverage Control prior to the expiration date. J. Coastal Commission approval shall be obtained prior to issuance of any building permits. K. The Planning Commission may add to or modify conditions of approval to this variance upon a determination that this variance causes injury, or is detrimental to the health, safety, peace, morals, comfort, or general welfare of the community. tt vi '!J r PART IV: (Continued) B. Project Description and Justification When the Newport Beach Brewing Company (NBBC) opened four years ago it was one of the first "breweries" in Orange County and, if for no other reason, did well due to the uniqueness of being a restaurant/bar that brews its own premium beer on -site. We at the NBBC are proud of the quality track record we have established for quality food, friendly service, as well as, our award winning beers. However, now there are approximately sixteen breweries in the county and therefore, over the past couple of years the uniqueness /trend of the "brewery" concept has faded. In an effort to remain competitive NBBC management has consistently made adjustments and improvements to its operation to attract a broadened customer base. We have from day one attempted to be more of a restaurant than a "bar ". We look to continue that trend by offering an even more upscale menu to complement items like the New York Sirloin, Seared AM Salad and the Cioppino that we currently serve. As we have begun to upgrade our menu we have noticed we receive a lot more requests for cocktails and after dinner drinks (e.g. martini, Irish coffee etc.). Therefore, we now feel it is necessary to apply for an ABC No. 75 alcohol license, in order to satisfactorily serve our broadened customer base. We want to be able to offer a greater variety of beverage choices for all our customers at both lunch and dinner. It may be worth noting that when the brew /pubs concept first came about in California, there was a state law that prohibited brew /pubs from serving alcoholic beverages other than beer and wine. Since that time, it has become apparent that there is no need for such a restriction to be placed on brew /pubs and therefore, the state has repealed that law. We want to be perfectly clear that we are not looking to implement any drastic changes to our existing format. We are not and do not have any desires to become a nightclub, dance club or the like. That is not who or what the NBBC is or will ever be. We at the NBBC plan to build upon our existing clientele base, which includes a diverse mix of both younger professionals and older patrons of which most are locals. During the summer of course we also attract many of the peninsula's visitors. The NBBC is a local eatery that is simply attempting to cater to the desires of a broader base of clientele, by upgrading our menu. We feel confident that the additional alcohol beverage service will help compliment our expanded menu and keep the NBBC competitive. As a result the Newport Beach Brewing Company will continue to be one of the most fun and friendly places on the peninsula for residents and visitors alike to eat, drink and socialize. M City of Newport Beach Planning Commission Minutes August 5, 1999 INDEX OBJECT: Newport Beach Brewing Company Item No. 1 2920 Newport Boulevard Use Permit No. 3485 A • Use Permit No. 3485 (Amended) An amendment to on, existing use permit to allow a change in Alcoholic Denied Beverage Control license type to allow full alcoholic beverage service. Senior Planner Patrick Alford noted the following: • The application is for a change from a Type 23, Small Beer Manufacturer to a Type 75, On Sale General Brewpub. Under the provisions of the Alcoholic Beverage Outlet Ordinance, it requires an amendment to the existing use permit. • The Planning Commission must consider these factors: use serves public convenience or necessity; the crime rate in the reporting district; the number of alcoholic licenses per capita within the reporting district; the number of alcohol related calls for service, crimes and arrests within the reporting district and the proximity of the alcohol beverage outlet to residential districts, day care centers, park and recreation facilities; basic religious assemblies and schools. • The issue of public convenience or necessity - there are currently 24 on -sale establishments providing full alcohol service in the area. However, the project is the only brewpub in the City. • The issue of crime rate in the reporting district - significantly exceeds the citywide average. Under state law, this constitutes an undue concentration of licenses and the Alcohol Beverage Commission is required to deny the application unless the City determines that the public convenience or necessity is served by the issuance of the license. The Police Department has reviewed the project and recommends that the Planning Commission review the application in light of the larger issue of the intensification of alcohol and related uses on the Balboa Peninsula, especially in the Cannery Village area. • The issue of over - concentration - the number of alcoholic beverage licenses per capita in the Census Tract 635.00 exceeds that of the County. This also constitutes undue concentration under state law. The ABC is required to deny the application unless the City determines that the public convenience or necessity is served by the issuance. • The issue of alcohol related arrests - in the Police Reporting District No. 15, 65% of the arrests in the area are alcohol related which compares to 44% of such arrests citywide. • The issue of adjacent uses - it is a mixed commercial residential zoning district and there are residential units across 30th Street. There is always the potential of impacts to residents. Concluding, Mr. Alford noted that the facts support the finding that the use would be detrimental to the area because the public convenience or necessity would not be served by the proposed ABC license change. Also, �j1 City of Newport Beach Planning Commission Minutes August 5, 1999 due to the large number of alcohol related arrests in the area and to the over- concentration of alcohol beverage outlets in the area, this use would be detrimental to the area. However, the Planning Commission could also find that the issues have been adequately addressed by the current conditions of approval and the change in license type may not necessarily effect that operation. The public convenience or necessity could be served by the sale of distilled spirits in a restaurant brewpub setting. Commissioner Fuller noted that it is stated in the staff report that the Police Department has reviewed the proposed project and has no serious concerns with the current operation. Does that mean the existing operation with the existing liquor license or the proposed operation? Referencing Page 5, Table 1 he also asked what the units of comparison were per capita. Mr. Alford answered that it deals with the past operation and with what occurred in the past. The way the Alcohol Beverage Ordinance is set up, the concentration issue is addressed by way of a Census Tract. The information is not necessarily at a Reporting District level Assistant City Manager, Sharon Wood added that the population ratio is shown on Table 3, Page 6, that is by Census Tract which is a different geographic area. Mr. Alford added that the area is a mixed use, the population is relatively low compared to other areas on the peninsula, so that the number of licenses in that area to the ratio of population is fairly high. He further added that District No. 13 has more residential, there is very little if any, commercial. In District No. 16, it is predominately residential with some commercial. Commissioner Kranzley clarified with staff that Census Tract No. 635 added to Census Tract No. 628 would represent the entire population of the peninsula. Chairperson Selich asked the percentages of restaurant versus brewery pub? He was told that there are 3,244 square feet on the first floor, and the brewery occupies approximately 1,500 square feet of that. He then asked what the original intent of how the operation was going to be run. Planning Director Patricia Temple answered that the intent of the operation as originally presented was to be a restaurant with a brewpub, where they actually did on -site brewing of custom beers. It was predominately to be used as a restaurant, certainly alcohol was a feature of the operation as that was their niche in the market. It has been run primarily as a restaurant. Commissioner Kranzley noted that taking the entire population on the peninsula by adding Census Tracts 635 and 628, the population is 11,141 with 65 on sale licenses which is still 1 per 171 persons on the peninsula. INDEX City of Newport Beach Planning Commission Minutes August 5, 1999 Mrs. Wood noted that the state law mandates that comparisons should be made to the average of the County, which for on sale licenses is 1 per 893 persons and we are at 1 per 171 persons which represents a significant difference. Ms. Clauson noted that the operation was also conditioned in the original use permit that require the service of alcohol as ancillary to the restaurant business and that there is no approval for any type of bar or nightclub. Chairperson Selich asked if other businesses such as this in other communities typically have hard liquor service? Staff answered that one approved in Manhattan Beach similar to this project was recently approved with full alcoholic beverage service. Commissioner Tucker added that one across from the UCI in the Irvine Market Place has a full liquor license. Public comment was opened. Sean Niedelman, operations manager of the Newport Beach Brewing Company noted: • This is an established restaurant that also brews its own beer, catering to all types of customers. • The restaurant has been looking for ways to improve service and acquiring this liquor license is one of those ways. • The current menu offers variety of foods resulting in food sales of 65% of total sales. • The restaurant is losing customers due to lack of cocktail service. • We want to compliment the enhanced menu and capture a more diverse clientele by acquiring.this license. At Commission inquiry, Mr. Niedelman answered that they are applying for a new license. Captain Tim Newman of the Police Department commented that it is the Police Department's position that there already is a significant impact in this general area of the peninsula due to alcohol consumption. The Police Department is not comfortable advocating a change one way or another and felt that would be something most appropriately handled by this policy making level of government. The Police Department wanted the Planning Commission to address that specific issue. All the statistics used by staff came from the police records and indicates that the police do have a problem and it does effect our level and volume of DUI's and alcohol related offenses that occur in this area. In answer to Commission inquiry, he added that it is difficult to predict if a change in the license from beer to hard liquor would make a INDEX � i� City of Newport Beach Planning Commission Minutes August 5, 1999 difference. It depends on the operator. The City has bars with a wide variety of conditions and restrictions on their ability to conduct business and some the Police Department has chronic and current problems with and others never have problems. The Police Department doesn't have problem that end up being detrimental to the community, with an operator whose staff is well trained and who runs a good operation. In this particular case we are dealing with a land planning issue and since this will be with the property, regardless of who the operator is, the Police Department is not in a position to say what this operation will be like in the future. Since the first of the year, the police have arrested 941 individuals for either DUI or who were drunk in public. Of that number, 375 of those individuals were in this Reporting District No. 15. This district is the area between 20th Street to 32nd Street, between the ocean and the Rhine Wharf/Lido Peninsula area inclusive. It has always been a very active area of the City. In response to where they have been drinking, the 681 who responded only 5 of them said they had been consuming alcohol at this establishment. Stepping up from a beer license only, to a full alcoholic beverage service can step up the number of incidents, but it depends on the operator and how he handles his staff. Commissioner Kranzley asked about the number of responses (681) where were they drinking and how many of those bars were on the peninsula? He was answered that the greatest response had to do with people who were drinking at a private party, 193 were drinking at locations outside the City, 32 said they were drinking at home. Continuing, Commissioner Kranzley noted the following: 40% of the DUI's and drunk in public has to do with alcohol on the peninsula. A year ago, we added a policeman that basically covered Cannery Village. Is that 40% consistent with prior years? Is the 375 up because we have greater enforeament in the area? Captain Newman answered that over the last several years, the crime rate has continued to diminish. As a result of that, the officers have more time to do other things. Resulting from that efficiency, the officers can be and are more proactive to deal with problems. The additional efforts put into Cannery Village last year involved a police presence on 3 -4 nights on a weekend. In Reporting District 15, 488 said they were drinking in town and 300 of those were drinking in this area. Commissioner Kranzley asked if the officer being in the Cannery Village area helped? He was answered that it helped by providing crime deterrence with a police presence. The private security guards are no longer being funded. Chairperson Selich asked if the police department view this business primarily as a restaurant, to which he was answered, yes. INDEX eC ' City of Newport Beach Planning Commission Minutes August 5, 1999 Commissioner Tucker noted that there seems to be so many licenses in this district that if you converted one from beer and wine to full alcohol, you are not making available a produce that is not already available in the district. Does it really make a difference? Captain Newman stated that is a decision that the Planning Commission is going to have to make. In this particular case, the police have not had a problem with this operator under the current conditions. Buzz Person, 507 2911, Street noted that he has been an advocate for this establishment and is a current customer. This proposed application is a land use issue and has nothing to do with the operator. The City Council has indicated in recent actions taken that there is a problem in this particular area. The switch from beer and wine to hard alcohol is an intensification of use. While this operator is a good operator, I would be concerned with what might come down later on. Two years ago in the Village, there were a lot of problems. Since then, things have gotten much better. Part of that is due to action taken by the City Council and the Police Department. What the residents don't want is to have an unbearable living environment. Things are much better today. Chairperson Selich asked about the approval for Aubergine's conversion from beer and wine to full service alcohol and the difference between that and this project. Ms. Temple noted that the Aubergine restaurant has more limited hours of operation and is a much smaller establishment. There is no area within the restaurant set aside exclusively for the consumption of alcohol. The Newport Brewing Company, while primarily a restaurant, has an area where alcohol is consumed more.exclusively. Mike Madlock, 113 310 Street, Vice President of Newport Beach Brewing Company noted the following: • Most of the new brewpubs are opening up with full liquor license, which is something that we could not do when we opened up 4 and %x years ago. • As a local resident, I want to keep peace in the neighborhood. One of the problems that existed in the past is being taken care of with the closing of Snug Harbor and the Cannery Restaurant. • We have no pool tables and no entertainment. • This is a clean operation and concluded by encouraging the Planning Commission to approve this application. Commissioner Fuller clarified with staff that wine was allowed under the existing license. INDEX a` City of Newport Beach Planning Commission Minutes August 5, 1999 Keith Vohr, 415 Town Square Lane, Huntington Beach noted the following as a share holder of the Newport Beach Brewing Company: • Agrees with concerns mentioned in previous testimony. • The issue of undue concentration is moot. We are not adding a new license in the area, rather, we are asking to modify an existing license. • We are a small subset of District 15. • The issue of crime with 5 arrests out of 680 is approximately 0.7 %. We are a good operation as shown by the numbers. • The idea of adding alcohol service is to stay competitive and improve the restaurant. • The convenience is for those in the neighborhood. • We have had no protests from the mailings. • The hours are from 11 a.m, to 1 a.m. on the weekends and 11 a.m. to 11 p.m, during the week. • All of the staff is ABC trained. • We are in compliance with zoning regulations as we exist now. • There will be no special events or promotions at the restaurant. Roz Salomony, 2600 Newport Boulevard, President of the Newport Beach Brewing Company noted the following: • The people who spoke before me operate the brewery. • We have been successful from the time the pub was opened. • As we grew into a restaurant, we find that our guests are seeking other flavors with their dinner. • We are asking for the alcohol to compliment these new requests. • 1 live in the area of the brewery and will do everything possible to maintain harmony. At Commission inquiry, Mr, Alford noted that the current condition of closing hours is until 2:00 a.m, Friday and Saturday, which was approved -in 1993 by the City Council. However, the ABC license does restrict them to 1:00 a.m. closing on Friday and Saturday. Public comment was closed. Commissioner Kranzley noted that the Peninsula and specifically the Cannery Village have been an issue for a number of years. Citizens, Police Department and restaurants have spent a lot of time on trying to fix the problems in Cannery Village. As the Chairman of the Commission when it passed Bill Hamilton's Cannery Restaurant live entertainment and dancing, I voted in favor of that after offering a condition that required the addition of a policeman to walk that beat and that would be funded by the applicant. The Planning Commission decision was overturned by the City Council. That sent a message to me, as well as the Alcohol Beverage Ordinance that was passed, that the City Council was serious about fixing the issues on the INDEX 1�L City of Newport Beach Planning Commission Minutes August 5, 1999 peninsula that account for 40% of the arrests for DUI and drunk in public for the entire City. The concentration on the peninsula will not be increased but it would be intensifying a license because of the over concentration of alcohol serving establishments on the peninsula. The ABC has made it clear that they have to deny the application for the license unless it is determined that the public convenience or necessity would be served by this issuance. We have a number of establishments that serve liquor on the peninsula, and I don't believe we can find that the public convenience or necessity would be served by this upgraded license. The operator is a good operator, but this use and what we do tonight will run with the land. The next operator may not be as conscientious as this operator. I am not in favor of this application. Commissioner Fuller stated he was not in favor of this application due to the statistics presented specifically: • the 24 on -sale full alcohol service licenses in this area, • the crime rate that exceeds the City crime rate by 258 %, • the alcohol licenses per capita at 1 per 134 persons, whereas the County is I per 893 persons, • the alcohol related calls for service is 657o in this District and 44% city -wide • concern for the residential standard of living Continuing, he noted that he was around during the Cannery Restaurant discussion and it was very apparent that the residents in this area were most concerned with these alcohol - related problems. It would intensify problems that may exist if this application was approved. I like the concept of the brewing company and that is the use that was approved. Commissioner Tucker stated that Newport Beach is a visitor serving community and always has been. Comparisons to what the alcoholic beverage license is in other communities are not germane to our community. Switching the license will not make much difference; there are plenty of places for hard liquor. The addition of another location would not create more opportunities to drink when there are plenty of opportunities virtually next door. I believe it would serve the public convenience or necessity and therefore I support this license conversion. Chairperson Selich noted that if this is primarily a restaurant and we give the full alcohol service to other restaurants, it seems somewhat discriminatory to me to single this use out and say we are not going to give them a full service alcohol permit. Again, thinking back to Aubergine realizing that there is a difference in scale, etc. the permit runs with the land. Another operator could come in and intensify that use. If we had a policy that we were going to hold the number of licenses fast within the area and people could trade the licenses around; I might feel more comfortable. Discussion on Aubergine by staff noted that if the bar or any area exclusively INDEX City of Newport Beach Planning Commission Minutes August 5,199? would need a new use permit. Right now, there is only about 15 square feet. Commissioner Kranzley stated that comparing these two facilities is not a fair comparison, especially if there was intensification at Aubergine's it would come before the Planning Commission and I would not be in favor of it. Commissioner Tucker noted that at what point do you stop being a restaurant and start trending towards a bar. Is it proper to zero in on percentage of alcohol sales and how do you enforce that? Ms. Clauson answered that it is in the Code as far as a definition of a bar and how it operates. There are already conditions on the use permit that specifies the primary use has to be as defined in the Code and is with the service of alcohol as ancillary. We have an enforcement mechanism, the percentages of food service to alcohol service as one of the factors considered in the enforcement method. They have to report this information as part of the ABC license requirement. Commissioner Kranzley stated that there is also a land use issue in this area. There is a concentration of alcohol and liquor licenses, and it has caused problems and is currently causing problems. We are going to be losing a license there and maybe a second. This over - concentration has caused a burden on the residents as well as the Police Department. I don't get a sense that there is an economic issue and I don't think this is the time for us to be considering changing any liquor licenses. Chairperson Selich noted that the Council has spoken on the issue of alcohol service in the area and the intensification of license. I would like some kind of policy that would restrict the number of license and allow transference of the licenses within the area. I will support the staff recommendation. Motfon Hfas made by Commissioner K.ronzley to deny the amendment of Use Permit No. 3485 A subject to the findings contained in Exhibit A. Ayes: Fuller, Selich, Kranzley Noes: Tucker Absent: Ashley, Gifford, Hoglund Abstain: None FINDINGS: Exhibit "A" FINDINGS FOR DENIAL FOR USE PERMIT No. 3485 (AMENDED) The proposed project is located in Police Reporting District No. INDEX 12• City of Newport Beach Planning Commission Minutes August 5, 1999 The proposed project is located in Police Reporting District No. 15, which has a crime rate that exceeds the citywide crime rate by over 258 %. This constitutes an "undue concentration" of licenses under the provisions of Section 23958.4 of the California Business and Professions Code. 2. The proposed project is located in Census Tract 635.00, which has a ratio of alcoholic beverage licenses to population that is above the average ratio of Orange County. This constitutes an "undue concentration" of licenses under the provisions of Section 23958.4 of the California Business and Professions Code. 3. The public convenience or necessity would not be served by the granting of the amendment to Use Permit No. 3485 to allow a change in Alcoholic Beverage Control license type to full alcoholic beverage service because of the undue concentration of licenses in the area. 4. Due to the undue concentration of alcoholic beverage outlets and their impact on the Cannery Village area, and because the public convenience or necessity would not be served, the proposed project would be detrimental to the health, safety, peace, morals, comfort, and general welfare of persons residing or working in the neighborhood of such proposed use and would be detrimental or injurious to property and improvements in the neighborhood or the general welfare of the City. INDEX Mock Residence Retaining Wall Item No. 2 1821 BoyadereTerrace Modification Permit No. 4903 • Modification Permit No. 4903 Negative Declaration �/ Cceptanceof a Negative Declaration Request to permit the construction 20 foot high rear yard retaining wall Approved which exceeds the permitted 6 foot heig it in the side and rear setback areas. The proposed retaining wall is intended bilize an unsafe slope and reclaim a portion of rear yard lost due to erosion. The ining wall will reclaim approximately 21 feet of rear yard surface area pre ' sly slope. In accordance with Section 20.33 of the Newport Beach Municip ode the approval of a modification permit is required for the height and location he proposed retaining wall. 10 Nay Cl CITY OF NEWPORT BEACH http: / /www. city. newport- beach. ca. u... cil Agendas /Archivel999/Mn09- 13.htm everyone who agrees with him to write their Council Member. PUBLIC HEARINGS 16. STATUS REPORT ON DEVELOPMENT AGREEMENT NO. 6 (THE I C -2920 IRVINE COMPANY, CIRCULATION IMPROVEMENT AND OPEN SPACE AGREEMENT [CIOSAI) (contd. from 7/12/99 & 8/9/99). Development Mr O'Neil opened the public hearing. Agreement No. 6 There ng no testimony, Mayor O'Neil closed the public CIOSA hearing. (48) Council Member Glov, staff followed through fences will be erected. The motion carried Absent: None to determine compliance of ed that she is pleased to see that her suggestions and that proper by the Ayes: Adams, Glove?; Ridgeway, Noyes, Mayor Noes: None Abstain: None roll call vote: Thomson, Debay, 17. APPEAL BY THE NEWPORT BEACH BREWING COMPANY OF THE PLANNING COMMISSION'S DENIAL OF AN AMENDMENT TO USE PERMIT NO. 3485 TO ALLOW A CHANGE IN ALCOHOLIC BEVERAGE CONTROL (ABC) LICENSE TYPE TO ALLOW FULL ALCOHOLIC BEVERAGE SERVICE. Mayor O'Neil opened the public hearing. Keith Bohr, appellant, 415 Townsquare Lane, No. 219, Huntington Beach, stated that he is an investor in the Newport Beach Brewing Company and a consultant on the appeal. He requested that their use permit be amended to allow full alcohol service so that the Brewing Company can remain competitive with the other restaurants in the area. Referencing Exhibit A (Findings and Conditions for Denial), he reported that they represented only .07 percent of the crimes in Reporting District 15 (Finding 1); that they are not trying to add a license, but are just wanting to modify their existing license (Finding 2); that they have the support of the residents within 100 feet of the restaurant, generate tax revenue, provide 45 jobs, and is the only brewery in the City (Finding 3); and that they disagree with Finding 4 because of their track record over the past 4.5 years and because they would not contribute to any of the detriments mentioned. Mr. Bohr respectfully requested that Use Pe Newpo Brewin (88) JAb 18 of 30 01/21/2000 3:52 PM CITY OF NEWPORT BEACH http: //www.city.newport- beach. ca. u... cilAgendas /Archivel999/Mn09- 13.hhn Council approve the Conditions for Approval (Exhibit B). He emphasized that the Brewing Company is a permitted use and that approving this will not be detrimental to the City. In response to Council Member Ridgeway's questions, Senior Planner Alford confirmed that the use permit is specifically for a restauranttbrewpub; that, if the Brewing Company fails, the new operator is obligated to run a restaurantlbrewpub under the terms and conditions of the conditional use permit; and that the Newport Beach Brewing Company is the only brewpub in the City. Shawn Needelman, 46 Agostino, Irvine, Newport Beach Brewing Company Operations Manager, stated that he has been with the Brewing Company since it opened in April 1985. He emphasized that they are not a bar that serves food, but a restaurant that also brews its own beer; they do not have the lines that they used to; they do not have late night parties; they do not have a DJ, band, or any other form of live entertainment; and they do not have a small menu. However, he believed they have evolved into an established restaurant that caters to 20 year olds to seniors, couples and families. Mr. Needelman indicated that the Brewing Company is looking for something to improve itself and believed that acquiring the license does that. He reported that the menu is continually upgraded, that food sales have continued to make up a larger percentage of the gross sales, and that it makes up nearly 64 percent for this year's sales. He stated that the sales have leveled, are lower than they were last year, and they lose customers because they cannot provide what one or all the guests would like. Mr. Needelman believed that having the license will also benefit their regular customers because it will provide them with a choice. He clarified that they want to complement their enhanced food, wine, and special menu, and capture a more diverse clientele by acquiring this license. Council Member Glover indicated that she saw a statement that generally states that the Brewing Company will close if this does not occur. Mr. Needelman stated that they will not close tomorrow if they do not get the license; however, he reiterated that their sales are down and that they believe it could be attributed to them not being able to sell hard alcohol or spirits. Council Member Glover emphasized that only 4 Planning Commissioners were present at the meeting. Mr. Needelman believed that the Planning Commission probably denied their request because of the high concentration in Reporting District 15 and because they were not sure that adding this license would be beneficial to the Brewing Company or help the community in any way. He expressed the opinion that the license would allow the Brewing Company to improve the menu and reiterated that alcohol is needed to be competitive with other restaurants. Council Member Debay expressed concern with the concentration of bars in that area and that young people tend to jump from bar to bar during the summertime. This causes them Ia1 19 of 30 01/21/2000 3:52 PM CITY OF NEWPORT BEACH http: / /www.city,newport- beach. ca. u... cilAgendas/Archivel999/Mn09- 13.htm to walk in the streets late at night and disturb residents. She stated that she is concerned that the Brewing Company will be more of a target for the bar hoppers if they are a full service bar. Mr. Needelman reported that they card everyone that walks in the door, they have never had problems with under -aged drinking or arrests, the amount of drunk driving incidents involving the Brewing Company is very minimal, the employees attend alcohol class, and managers are on the floor at all times. He believed it would be a benefit if patrons stayed at their restaurant rather than jump from bar to bar. Charles Huffine 3085 Yukon Avenue, Costa Mesa, expressed support of the Brewing Company's request and stated that he and his wife have been frequenting the Brewing Company for the last year. He indicated that they initially were not sure if the Brewing Company was a place they wanted to go to; however, the clientele has drastically changed to become a very comfortable place for a weekly visit. He believed that the patrons now range in age from the high -20's to the 60's and that they bring in a larger number of families. Mr. Huffine encouraged Council to consider the Brewing Company's request to have a full service liquor license because it will give them an opportunity to continue to be a successful business. He noted that the Brewing Company draws a lot of people from out of state and from the local community, and hoped that they could become a landmark restaurant. David Haithcock, 500 Newport Center Drive, stated that he works for a national bank trade association and that he entertains clients as part of his job. He expressed that he likes the Brewing Company because it has turned into a landmark for the City. He reported that he takes his clients to the Brewing Company for lunch or dinner, but that it is unfortunate that they have to leave after their meal because they want an after - dinner cocktail. He expressed his support of the Brewing Company's request so that they can continue to prosper. Pua Huffine, 3085 Yukon Avenue, Costa Mesa, stated that she and her husband have been regular patrons of the Brewing Company for about a year. She indicated that she not only has gotten to know the employees, but has gotten to know people who also regard the Brewing Company as a home away from home. She stated that they not only find the establishment a great place to unwind, but a fine restaurant. Ms. Huffine reported that they never hesitate to bring friends, family, or business associates to the Brewing Company, or to recommend the restaurant as a premiere place. She believed that, if you are looking for something good about the City, the Newport Beach Brewing Company would be it. She stated that she has made it a personal goal to let everyone know that Newport Beach has many treasures; however, she would hate to see a place of value become a statistic because they could not stay competitive in a very competitive market. Ms. Huffs to requested that Council reconsider this very reasonable request and allow the Brewing Company to continue to be hospitable hosts to their guests. Amy Anderson, 328 Fullerton Avenue, stated that she is an ,a� 20 of 30 01/21/2000 3:52 PM CITY OF NEWPORT BEACH http: / /www. city. newport- beacl,. ca. u... cUAgendas /Archivel999/Mn09- 13.htm employee of the Brewing Company and read a fax that was sent to them by Robert J. Rosner of the Xerox Corporation. Mr. Rosner expressed his support of the Brewing Company's request to serve alcoholic beverages other than beer and wine. He indicated that he often takes customers to the Brewing Company and that the outing would be more enjoyable if he was able to offer them a cocktail before the meal. He added that the Brewing Company is a quality addition to the commercial establishments in the City. Michael Madlock, 113 31st Street, Vice President of the Newport Beach Brewing Company, hoped that the decision - makers have been to the Brewing Company since they have built a first class operation. He stated that the Brewing Company has been managed properly and would appreciate Council's support of the appeal. Orazio "Raz" Salmone, 2600 Newport Boulevard, No. 212, President of the Newport Beach Brewing Company, reported that he was one of the Fast breweries in the area and now there are 16 breweries. He noted that they no longer have lines and that he would rather build on the restaurant. There being no further testimony, Mayor O'Neil closed the public hearing. In response to Council Member Adams' questions, Mr. Borg clarified that the Brewing Company is not open until 2 a.m. because of an ABC condition which closes them at 1 a.m. on Fridays and Saturdays. Assistant City Manager Wood noted that Condition 10 indicates that the Brewing Company may not serve alcoholic beverages without serving the regular menu. Mr. Alford clarified that the Brewing Company always had a 2 a.m. closing time but ABC placed the 1 am. limit after the City approved them. Council Member Adams suggested that the condition be consistent with ABC's. Mayor O'Neil noted that page 1 of the staff report states that "...the ABC is required to deny the application for the license unless the City determines that public convenience or necessity would be served by its issuance." He expressed the opinion that the City is bound to follow ABC's denial unless they can find that the public's convenience and necessity requires its issuance. Ms. Wood reported that this is the State law that deals with areas where there is over - concentrations of liquor licenses and that Council Policy K -7 delegates that authority to the Chief of Police for most cases. She confirmed that the Police Chief could deny the license if he finds that there is no public convenience or necessity after Council approves it, but doubts he would do that. Additionally, since the City has a local alcoholic beverage outlet ordinance, one of the considerations for granting a use permit for a new or expanded alcoholic beverage outlet is to look at whether the public convenience or necessity is served. Motion by Council Member Glover to reverse the Planning Commission's denial of amended Use Permit No. 3485. a`\ 21 of 30 01/21/2000 3:52 PM CITY OF NEWPORT BEACH http: //www. city. newport- beach.ca.u...cil Agendas /Archive1999/Mn09- 13.htm Council Member Glover believed that this is a reasonable request. She noted that she can go almost anywhere to find similar establishments and believed that Council has a responsibility to be competitive with other cities. She expressed the opinion that the Planning Commission might have felt the same way if all the Commissioners attended the meeting. Council Member Adams requested that Council Member Glover amend the motion to modify Condition 7 so that the hours of operation for Fridays and Saturdays is from 6 a.m. and 1 a.m. Council Member Glover agreed. Council Member Ridgeway stated that the staff report contained a lot of testimony from the Police Department, but believed that they were not comfortable advocating a change because the Brewing Company is in Reporting District 15. However, it appeared that the Police Department did not have a problem with an operator whose staff is well - trained and runs a good operation. He stated that he is satisfied that they are very responsible, have trained their people, and run a good operation. He noted that there has only been one Police instance that involved the Brewing Company and added that he has patronized the Brewing Company. He reported that the Brewing Company had a toxic problem in which they immediately called the authorities. This also proves that they are responsive citizens because they stopped the problem and took responsive action themselves. He expressed support of the appeal, noting that there are two restaurants that are closing and two licenses that are being lost. He stated that he finds the Brewing Company to be a well -run operation and that he wants to give them an opportunity to continue. Regarding the land use decision, Council Member Ridgeway emphasized that the conditional use permit is for a restaurant/brewpub and that anyone who operates on that land will have to continue to use the conditional use permit and continue to operate a brewpub. He believed this helps prevent a problem if the Brewing Company fails. Council Member Debay expressed concern because the City has been sending a message to Cannery Village that it does not want to intensify the alcoholic use and make a situation worse. Regarding Council Member Debay's questions regarding Standard City Requirement K, Ms. Wood confirmed that the Planning Commission can call this for review to modify or add conditions, or even conduct hearings for the possible revocation of this license if this adds to the intensity of the problems. Mr. Burnham suggested that the word "variance" be changed to "use permit" in this condition. He clarified that ABC handles their own permits, and added that, when Council grants a use permit, privileges/conditions run with the land and applies to subsequent property owners. In response to Mayor Pro Tern Thomson's question, Mr. Burnham stated that the standard to determine if they are complying is whether they are detrimental to the health, safety, and welfare of the community. Therefore, any factor like intoxication, excessive noise, and fights /disturbances would warrant a call for a modification or possible revocation of the 06 22 of 30 01/21/2000 3:52 PM CITY OF NEWPORT BEACH http:pwww. city. newport - bead. ca. u...c ilAgendas (Archivel999 /Mn09- 13.htm conditions. �) The amended motion to reverse the Planning Commission's denial of amended Use Permit No. 3485; amend Condition 7 so that the hours of operation for Fridays and Saturdays is between 6 a.m. and 1 a.m.; and change "variance" to "use permit" in Standard City Requirement K carried by the following roll call vote: Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Mayor O'Neil Noes: Noyes Abstain: None Absent: None 18. VACATION AND ABANDONMENT OF A PORTION OF AN ALLEY Res 99- BOUNDED BY GRAND CANAL, BALBOA AVENUE, ABALONE AVENUE AND PARK AVENUE (LITTLE BALBOA ISLAND). Little B Mayor O'Neil opened the public hearing. Vacatio T re being no public testimony, Mayor O'Neil closed the public Aband hea�g. (90) Motion Council Member Noyes to adopt Resolution No. 99 -62 orde g the vacation and abandonment of a 2.5 -foot wide strip of rigb f -way on both sides of a 25 -foot wide alley on Little Balboa Is d. The motion earn by the following roll call vote: Ayes: A4ams, Glover, Thomson, Debay, Ridgeway, yes, Mayor O'Neil Noes: None Abstain: None Absent: None 19. AMENDMENT TO THE CIRCULATION ELEMEW OF THE NEWPORT BEACH GENERAL PLAN TO RECLASSIFY TH EGMENT OF SANTIAGO DRIVE BETWEEN IRVINE AVENUE A STIN AVENUE AS A COMMUTER ROADWAY ON THE MASTER PEAN OF STREETS AND HIGHWAYS IGPA 98- 3(D)1. Mayor O'Neil opened the public hearing. Bryan Bond, 2431 Santiago Drive, stated that he has been involved with this issue for about four years. Mr. Bond requested and received clarification from Mayor O'Neil that Council intends to continue Agenda Item 21. Res 99- GPA 9 Santiag Reclass (45) 23 of 30 01/21/2000 3:52 PM Exhibit No. 5 0 RECr.,JED t3 r PLANNiN;> ; , - RARTMENI CITY rrF .14EVJKIRT BEACP Hub 1 1 2006 PM For discussion purposes, the NEWPORT BEACH B�{�jdi� {516 COMPANY ( "NBBC ") submits the following summary of the topics that they have raised and discussed with the City of Newport Beach and certain individuals that reside in close proximity to the brewery and restaurant. ADDITIONAL CONDITIONS OFFERED BYNBBC FOR USE PERMIT NO 3485 I. Security Guards. Employment of 5 Security Guards with the primary function of controlling and patrolling the NBBC parking area. The specific duties for NBBC Security Guards will be explained to the City and can be memorialized in the conditions of approval. a. Noise abatement through notification b. Parking area enforcement of noise restrictions and nuisance activity c. Informing line that individuals can enter NBBC to use the restroom II. Bottle Recycling Program. NBBC has implemented a bottle recycling program that collects bottles inside the restaurant to eliminate noise. Also, large storage containers have been acquired to eliminate the "dumping" of glass and the associated noise. III. Trash Dumpster Area. NBBC will improve (including any feasible aesthetic treatment such as an enclosure) the trash dumpster area. NBBC has contacted the City for permission to improve the trash dumpster area. The enclosure will be locked and secure. IV. Alcohol Training. NBBC will require all (applicable) employees to complete an alcohol sales and training certification course. V. New Entrance. NBBC will consider the use of an entrance from the front of the building to alleviate the numbers of individuals that enter from the parking lot. Safety and suitability issues must be addressed for the following: a. Width of sidewalks b. Average line sizes at various hours of operation C. Potential new noise issues that may result from a new entrance VI. Tow upon Close. NBBC would consider implementing a towing procedure where vehicles parked in the NBBC parking lot after hours of operation would be subject to tow.. NBBC CUP No. 3485 1 S Miles Law Group 7037.001 t NBBC's current position is that the conditions of approval for Use Permit No. 3485 have worked for the past thirteen years and do not need to be revised at the present time. However, they could be clarified to maintain the status quo operation of the brewery /restaurant. PROPOSED REVISIONS TO CONDITIONS OF APPROVAL FOR USE PERMIT NO. 3485 OFFERED BYNBBC New Condition No. 9 "The service of alcoholic beverages shall be ancillary to the primary restaurant/ brewpub service operation of the restaurant. Accordingly, alcoholic beverage service is not permitted independent of restaurant food or brewpub services." Condition No, 10. Add: "For purposes of this condition, "regular meal service hours" means the meal service hours regularly established by the restaurant/brewpub." The service of alcoholic beverages during regular operational hours of the restaurant/brewpub that do not include meal service is prohibited." NBBC CUP No. 3485 2 `�tD Miles Law Group 7037.001 L J Exhibit No. 6 X31 Page 1 of 1 Campbell, James From: Joe Reiss pReiss @anaheim.net] Sent: Wednesday, August 09, 2006 3:39 PM To: Campbell, James Subject: FW Newport Brew Company Jim ..... Can you please forward this to the Planning Commissioners for the meeting next Thursday ... ....... Thanks Joe On Wednesday 8 -2-06 a group of us from the area around Cannery Village met with Jim Campbell of the Planning Department and a manager and attorney from the Newport Brew Company to discuss concerns about the operation of the Newport Brew Company. During the meeting Jim Campbell asked a question about the operation of the Brew Company after 10 pm. We never really answered his question. On Saturday 8 -5 -06, at about 1045 pm myself and Drew Wetherholt went inside the Newport Brew Company to see how the business operated. We were greeted by a security guard at the door who was checking ID's. We later asked this same security guard why he checks ID's and he said after 9 pm the restaurant becomes a bar. He also told us that nobody under 21 was allowed inside after 9 pm or they would lose their liquor license. We went inside the Brew Company to find the entire restaurant full of individuals standing throughout the restaurant and sitting at tables. Music was playing extremely loud to the point you had to be right next to the person you were talking to and you had to speak loudly for them to hear you. We sat at a table and asked a waiter if we could order some food and he said the kitchen was closed and the only thing we could order was drinks. There were no pretzels, chips, popcorn or any food at all being served inside the restaurant. Three security guards were inside of the restaurant and one was outside. It was obvious to me the Brew Company was operating as a "Bar". When you read the Conditional Use Permit (CUP) for the Newport Brew Company they are in violation of Conditions 6 „9 and 10. Condition # 6 they choose to ignore and have never complied with since they opened. In Condition # 9 there is no food served after 10 pm therefore alcohol is the primary item served. With regards to Condition # 10 the Newport Brew Company becomes a bar after 9 pm on Friday and Saturday nights. The evidence is overwhelming they operate as a bar and the management of the Newport Brew Company would probably admit it. What bothers me is how this has been overlooked by the city all these years. The City Council approved the operation of the Newport Brew Company with certain conditions. These conditions were presented and approved at a public hearing. These are the conditions the community wants the Newport Brew Company to operate under not the inappropriate way they are operating today. The Newport Brew Company should be required to meet the conditions that were approved by the City Council. Thanks for looking into the operation of the Newport Brew Company and please feel free to contact me if you have any additional questions. Joe Reiss Resident of Newport Beach 714 - 497 -6428 08/09/2006 Exhibit No. 7 `�1 Au✓t-11 -06 01:35pm From- California Coastal Ms. Ms Meg Vaughn California Coastal Commission 745 W. Broadway, STE. 380 P. O. Box 1450 Long Beach, CA 90802 Subject: Coastal Permit Application No. Dear Ms Vaughn: +5625905084 T -259 P- 002/002 F -750 R memo Y I OCT 13 1g93 CALIFORNIA COASTAL COMMISsIoN SOUTH COAST DISTRICT 5 -93 -137; 2920 Newport Boulevard As requested in the special conditions for the subject Coastal Permit Application, this letter is provided for the purpose of confirming the action of the City Council of the City of Newport Beach relative to its approval of Use Permit No. 3485 (Revised). As indicated in the attacbed excerpt of the City Council minutes dated September 27, 1993, the City Council aproved Use Permit No. 3485 (Revised) with the findings and subject to the conditions set forth in the City Council staff report so dated September 27, 1993. In sumarry, the City Council's action as it relates to the Coastal Commission's Special Conditions, included the following: 1. The "net public area" of the restaurant/brewpub, which is devoted to daytime use Monday through Friday (prior to 5:00 p.m.) shall be limited to 1,500 sgfL The balance of the "net public area" shall be physically closed off to the public by a fixed barrier and shall not be used until after 5:00 p.m. daily. 2. The property owner shall pay for 29 in -lieu parking spaces in the Cannery Village Municipal Parking Lot on an annual basis for the nighttime operation. (after 5:00 p.m,) of the restaurant/brewpub use as agreed upon by the Sales Agreement between the City and the property owner. Inasmuch as the above conditions have been established as conditions of Use Permit No. 3485, the City of Newport Beach will inforce said provisions in accordance with the Use Permit Procedures set forth in Chapter 20.80 of the Municipal Code. It should be further noted that Item No. 2 above, is in keeping with the City Council's action rescinding its previous action which allowed the applicant the daytime use of in -lieu parking in the Cannery Village Municipal Parking Lot. We hope that this information will be sufficient for your purposes, and should you have any questions feel free to contact Mr. William Ward in our office, at 644 -3200. truly yot *4 5 D. HEWIC R, Director ...ph- WaAbill- AuP3w-ft b-0