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Home My WebLink About17 - Newport Beach Brewing Company Appealo m� 0 u �aEWPOa,. a �uFOa�`r CITY OF NEWPORT BEACH COMMUNITY AND ECONOMIC DEVELOPMENT PLANNING DEPARTMENT 3300 NEWPORT BOULEVARD NEWPORT BEACH, CA 92(88 (949) 644-3200; FAX (949) 644-3250 Hearing Date: Agenda Item No.: Staff Person: REPORT TO THE MAYOR AND CITY COUNCIL SUBJECT: Newport Beach Brewing Company Appeal 2920 Newport Boulevard September 13, 1999 17 Patrick J. Alford 644 -3235 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. 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: Prepared by: SHARON Z. WOOD PATRICK J. ALFORD Assistant City Manager Senior Planner Attachments: 1. Application. 2. August 5, 1999 Planning Commission stall report 3. August 5, 1999 Planning Commission meeting minutes. Newport Beach Brewing Co. Appeal September 13, 1999 Page 2 L_] r CITY OF NEWPORT BEACH APPLICATION TO APPEAL DECISION OF THE PLANNING COrI� JWW E D 14Iication No. USL PGr w.;+ /V o. 3yS - C A 0•4j)_,._ Name of Appellant or person filing: _ Address: Z4 (S � l Kc -%-4 800 r• Date of Planning Commission decision: Regarding application of: (Description of application filed with Planning Commission) Phone: l /r WJ-T6U, - 19.179, for Reasons for Appeal: FOR OFFICE USE ONLY Date Appeal filed and Administrative Fee received: b4,� � °1�) , 19 °n-. Hearing Date. An appeal shall be scheduled for a hearing efoTf re 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 EALS: Municipal Code Sec. 20.95.0408 Appeal Fee: $278 pursuant to Resolution No. 98 -52 adopted on 7 -27 -98 (Deposit funds with Cashier in Account 02700 -5000) 3 CITY OF NEWPORT BEACH Hearing Date: �dEW�R) COMMUNITY AND ECONOMIC DEVELOPMENT Agenda Item No.: PLANNING DEPARTMENT `, , � Staff Person: U _ 33O NEWPORT BOULEVARD �q��OAN�* NEWPORT BEACH, CA 92658 Appeal Period: (949) 644-3200; FAX (949) 644'3250 REPORT TO THE PLANNING COMMISSION SUBJECT: Newport Beach Brewing Company 2920 Newport Boulevard August 5, 1999 1 Patrick J. Alford 14 SUMMARY: An amendment to an existing use permit to allow a change in Alcoholic Beverage Control license type to allow full alcoholic beverage service. ACTION: Hold hearing; approve, modify, or deny: Use Permit No. 3485 (Amended) LEGAL DESCRIPTION: Parcel 1 of Parcel Map 92 -40 (restaurant/brewpub site) and portions of Lots 17 and 22 of Lancaster's Addition (off -site parking lot). ZONING DISTRICT: Cannery Village/McFadden Square Specific Plan (SP -6) - Specialty Retail (SR) District. LAND USE DESIGNATION: Retail and Service Commercial OWNER: Allan Fainbarg and Arnold D. Feuerstein, Anaheim q 0 r� U 0 LMt CJ VICINITY MAP s 1320' � _ . . sews.. . . w 1 _ 1 x I TWA= � A 4 Sb 4D3��`X4 \18.w I e el i! Itil - � 'Projec a eHw... Use Permit 3485 (Amended) . �6n Subject Property and Surrounding Land Uses Current land use: Commercial (eating and drinking establishmentloffice) To the north: 30th 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 Points and Authority Environmental Review (California Environmental Ouality Act) ■ It has been determined that the project is categorically exempt under Class 1 (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. 0 ■ 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]. Site Overview The project site is an 8,320 square foot parcel located at the southeast comer 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. Usc Permit 3485A (Newport Beach Brewing Co.) August 5. 1999 Page 3 1 _ 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. Project Overview The applicant is requesting an amendment to the existing use permit to allow the restaurant/brewpub 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. Analysis 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. 3. 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 Use Permit 3485A (Newport Beach Brewing Co.) 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 disti'.dled 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 Type2l 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). Type48 = 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% 52.96% "Part 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 `J u 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 Po ulation Projected Census Tract Census Tract Based on No. 635.00 No. 628.00 Orange County average 1990 Population: 6,182 4,959 WAKSVWXMWW ABC Licenses: On -sale licenses 46 19 7 (1 per 134 persons) (1 per 261 persons) (1 per 893 persons) Off -sale licenses 9 6 4 (1 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 Page 6 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`h 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 Penn it 3685A (Newport Beach Brewing Co.) August 5. 1999 16 Page 7 0 Submitted by: PATRICIA L. TEMPLE Planning Director [fit std Attachments: Prepared by: PATRICK J. ALFORD Senior Planner 1. 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' FINDINGS: EXHIBIT "A" FINDINGS AND CONDIITIONS FOR DENIAL FOR USE PERMIT NO. 3485 (AMENDED) 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. 0 is 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 13 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 S. ite 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 (n 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 hi I -! 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). 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 IJ 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 MY 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. • �to VA 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. vi I1 14 PART IV: (Continued) B. Pro)ect 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. • • l,/ ƒƒ \ 0 & - § § 2 \ D \ c k © Q y ƒƒ \ r-m- cm W) cm LO TOM mm. wy sm cc CD C-A f� City of Newport Beach Planning Commission Minutes August 5, 1999 SUBJECT: Newport Beach Brewing Company 2920 Newport Boulevard • Use Permit No. 3485 (Amended) An amendment to an existing use permit to allow a change in Alcoholic 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, INDEX Item No. 1 Use Permit No. 3485 A Denied a City of Newport Beach Planning Commission Minutes August 5, 1999 INDEX 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. 3 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 totalsales. • 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 0 INDEX PE City of Newport Beach Planning Commission Minutes August 5, 1999 INDEX 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 enforcement 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. 5 a� City of Newport Beach 1101 August 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 29th 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 31st 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 A 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 A5 City of Newport Beach Planning Commission Minutes August 5, 1999 INDEX 0 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. i 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 7 vl(P City of Newport Beach • Planning Commission Minutes August 5, 1999 peninsula that account for 40970 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 1 per 893 persons, • the alcohol related calls for service is 657o in this District and 447o 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 8 INDEX A City of Newport Beach Planning Commission Minutes August 5, 1999 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. Motion was made by Commissioner Kranzley 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 • 0 • a� City of Newport Beach Planning Commission Minutes August 5, 1999 INDEX 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. ••• Mock Residence Retaining Wall Item No. 2 1821 Boyadere Terrace Modification Permit No. 4903 • Modification Permit No. 4903 Negative Declaration • cceptanceof a Negative Declaration Request to permit the constructions 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 fining 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 IN . SEP -13 -99 03:39 PM S S PiSOCI.I-TES 7143746717 P,02 "RECEIVED AFTER A E DA PRINTED:" ja 44 SUPPLEMENTAL INFORMATION for AGENDA ITEM No. 17 (9/13/99) Newport Beach Brewing Company . Questions & Answers The following Q &A's were drafted for the purpose of providing background information on the Newport Beach Brewing Company (NBBC). The NBBC is requesting approval from the City Council on September 12, 1999, to modify its existing lise Permit No. 3485 (Amended) to allow for full alcohol service. If you have any questions before the public hearing regarding the information below or the NBBC's request, please call Keith Bohr at (714) 960 -7286. I. Q. What kind of alcohol license did the NBBC originally receive? How does it differ from what is being requested now? Why didn't the NBBC apply for a full alcohol license when it originally applied for a use permit? A. The original and existing ABC license is a Type 23 (Small Beer Manufacturer) which allows for the brewing of beer on-site and for the sale of both beer and wine. Back in the early 90's the concept /license allowing for a small micro brewery was new to the state of California. At that time there was only the Type 23 license, which does not allow for micro brewery's to sell full alcohol. In 1997, the state created a Type 75 license which does allow for brewery's to serve full alcohol. 2. Q. Are there other existing micro breweries that have currently have a Type 75 license? A. Ycs. Many of the existing Southern California breweries (e.g. Irvine's Steelhead Brewery and the Huntington Beach Beer Co.) have already successfully obtained a Type 75 license to allow for full alcohol sales. 3. Q. Why is the NBBC requesting to have its Use Pen-nit revised to allow for the on -sale of full alcohol? A. Quite candidly the NBBC has been experiencing a steady decline of revenues over the past three years. When first opened in April of 1995, the NBBC wus one of the first micro breweries in Orange County and did very well with our beer sales making up 50% of our revenues and ?70/0 of our profits. Since that time more than a dozen microbreweries have opened up in the Orange County area. The added competition along with the novelty of the micro brewery concept somewhat fading, has cuased our gross sales of beer to sharply decrease. In an effort to improve our overall revenues the NBBC decided it would take measures to increase its food sales by upgrading ito menu from ju3t :landwiehea and fried entrees to include highor end itamo ouch as steaks and seafood. 4. Q. Has this upgrading of the menu helped the NBBC to achieve its goals? A. Somewhat. That is to say our food revenues have increased as a proportion of our overall sales up from 50% to 64 %. Ilowcver, our beer sales continue to decline, as they are now 33% and our actual beer revenues area full 31% lower than they were last year at this time. The remainder 3% consists ul' our merchandise sales (i.e. t- shirts and hats). All in all our over all revenues are still significantly lower than in years past. 5. Q. How will the addition of full alcohol increase your food sales? A. We have found that many of our customers that come in, especially first timers will request n cocktail (e.g. martini, margarita, daiquiri et al.) with their meal.. When we inform them that we only have beer and wine many will default to wine. We also receive requests for after dinner drinks such as a Keoke or Irish coffee. .aa 6. Q. Will the sale of full alcohol adversely change the way the NBBC operates? A. Absolutely not, we are a restaurant that also brews beer and we intend to stay as such. We will continue to do exactly what we are doing today, but believe we will be able to attract more of a dinner crowd on Sunday through Thursday, which is our slowest period right now We also believe we will maintain many of the customers as repeat customers, where as in the past we would lose then after one visit due nt the lack of cocktails. 7. Q. The staff report illustrates that there is a rate of crime in reporting district No. 15, that is significantly above that of the County average, what % of that crime rate is due to the operation of the NBBC? A. The police department representative at the Planning Commission hearing on august 5, 1999, stated that the NBBC has a track record that reflects that we are good operators. They also stated that of* some 681 alcohol related arrests in District 15, in 1999, only 5 of those arrested stated they had patronized the NBBC prior to their arrest. That is less than 1% of total in the entire district. 8. Q. On June 8, 1998, the City Council adopted Chapter 20.89 of the Municipal Code, the Alcohol Reverage Outlet (ARO) Ordinance which requires the City to consider: public convenience, crime rate, number of alcohol licenses in district, number of police service calls, and proximity to residential, churches and .schools when reviewing a request such as the NBBC's. How does NBBC respond to these ADO Ordinance requirements? A. We honestly believe that our past four and a half year track record confirms that: • the NBBC provides a convenience as the only micro brewery in Newport; • as an existing alcohol licensed operator we are not adding yet another license to the district, only modifying our existing license (i.e. no net increase); • as stated above the NBBC has not in the past and will not with a modified license have an adverse impact on the police department's service calls; • the NBBC is not in proximity to any churches or schools and has spoken with the 5 residential neighbors located within 100 feet and they have no objections to our request; 9. Q. Of all the reporting districts in the Newport Beach how many have crime rates that exceed the county average by more than 20 %? A. in Newport all but two exceed the county average by 20 %. 10. Q. Is the NBBC required by the ABC and /or its Use Permit Conditions to maintain any particular percentages of food versus alcohol sales? What is the NBBC's current ratio of sales of food versus alcohol? A. Yes, our ABC license has a condition that requires that at least 50% of our revenues be derived from non alcohol sales and our Use Permit states that our business is to be primarily that of a restaurant. 11. Q. How many people does the NBBC employ? Do the NBBC employees all undertake ABC certified training for alcohol beverage servers? A. The NBBC employs approximately 45 people. Yes, all our front of the house employees receive ABC approved alcohol server training on a regular basis and will go through a more comprehensive training it awarded this license. 12. Q. Who owns the NRRC? A. The NBBC is a Sub Chapter "S" Corporation that has issued approximately 500,000 shares which are owned by approximately 22 investors. S'EP- 13 - *d9 05:41 PM b a wssuciprES 7143746717 P_04 13. Q. What happens if the NBBC decides to sell to another party that may not prove to be the responsible operator that the current owners seem to be? A. We have no plans of selling the operation now, nor do we envision any such plans developing within the next several years. But to answer the "what if' question, first, with the NBBC being a Brewery it would not be sold to the average person or entity that normally might consider acquiring a restaurant. Being a brewery is definitely a specialty type operation that has many unique requirements such as we have to produce u minimum number of barrels of beer each month (i.e. # ?). This requires the on staff expertise of a Brewmastcr. Therefore, if we were to put the NBBC on the market the only likely candidates to make such a purchase would be someone that already has experience operating and probably owning one or more breweries. Secondly, any new operator would be required to pass all of the ABC's background and licensing requirements. Said purchase would also require any proposed transfer of our license to be posted and advertised which then makes it subject to protest by the public at large as well as the city officials. 14. Q. How long is the NBBC's lease? A. We have a five year lease with three - 5 year options. We are currently in the fifth year of our original term and will be exercising our first 5 -year option in April of 2000. 15. Q. What are the NRRC.'s current operating hours? Are you requesting any changes? A. Sunday - Thursday 11:00 am to 11:30 p.m. Friday and Saturday 11:00 a. m. to 1:00 a.m. No we are not requesting to extend our hours. 16. Q. Does the NBBC. have live entertainment. pool tables. and/or video games? 4' A. No we do not have any of the above and we are not requesting such. 17. Q. What is the seating capacity of the NBBC? How many of those seats are at dining tables versus at the bar? A. Maximum occupancy is 212. We have 37 tables and 144 chairs. We have 44 bar stools. 18 Q. Has the City approved any other similar requests for full alcohol where the crime rates and /or density of licenses exceed the city /county averages? A. A brief review of the city's records indicate that the city has approved the Blue Water Grill and Blackies for the addition of full alcohol. Both are located in our District 15. The planning Commission on July 22, 1999, also approved (on a 7 -0 vote) the Fruncoli Gourmet Emporio for full alcohol service. This restaurant is located in Fashion island, Reporting District No. 39, which currently has a crime rate that exceeds the average for all City reporting districts by 186 %. 19. Q. It was reported in the local newspapers recently that the NBBC was responsible for the spillage of some coolant that may have leaked into the bay. What happened and does it have any substantive or evert minor bearing on this request? A. Quite simply there was a mechanical failure, one of our pumps that was purchased only four months prior broke, twice. We have taken full responsibility and cooperated with all the various agencies that are involved. We believe we have the problem rectified and have also implemented a plan that would mitigate the problem should such an unlikely occurrence happen yet again. No, we do not beliuve this unfurtunate accident should have any bearing on our request. We think if anything it demonstrates how we have and will take responsibility when such unfortunate circumstunces occur. 1996 -Food 51 Beverage 49% 1997 -Food 54% Beverage 46% 1998 -Food 57% Beverage 43% 1999 -Food 64% Beverage 36% 1999 1998 Difference Sales Bev. 331,486 483,359 151,873 Sales Food 620,328 664,703 44,375 Total Sales 951,814 1,148,062 196,248 Purchase Bev. 52,423 15.81% 86,014 17.8% 33,591 Purchase Food 225,774 36.40% 272,29140.97% 46,517 Total Cost 278,197 -- 29.22% 358,30531.21% 18,864 Advertising 9594 11,707 2113 Dues & Subs 1322 1204 118 Accounting 3690 3390 300 Office Expenses 8544 11,780 Supplies 5826 8780 6193 Payroll Taxes 38,721 46,569 Salaries 310,358 351,366 Total Payroll 349,079 36.68% 397,935 34.66% 19,180 2.02% Security 7930 1237 6693 Telephone 2452 2623 171 Uniform 1515 1431 84 Insurance 17.373 31,977 14,604 Depreciation 67,561 67,561 Legal 2080 8820 6740 Contract Labor 2412 1993 Repair & Maint. 23,729 17,136 7,012 Taxes & Misc. 18,836 30,256 11,420 Rent & Facilities 103,106 113,705 10,599 Utilities 22,746 29,234 6,488 Profit 30,9533.3% 48,1304.2% 17,1770.9%