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ATTACHMENT 1 Proposed Use Oftenant Space: Restaurant

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ATTACHMENT 1 Proposed Use Oftenant Space: Restaurant STAFF REPORT TO: Planning Commission DATE: February 27, 2012 FROM: Tom Zanarini, Associate Planner r RE: Conditional Use Pennit to establish an eat-in / take-out restaurant (Subway) in an existing tenant space -David J. Elliott, Applicant - Lynn Spalding, Owner - 29 Miller Avenue - APN 028-064-03 File No. C11­ 3914 DIRECTIONS: The tenant space is located on the corner ofMiller Avenue and Sunnyside Avenue, next to Henry's Toy Shop. RECOMMENDATION: Staffrecommends that the Planning Commission: 1) Conduct a Public Hearing; and 2) Approve the Conditional Use Pennit to establish a 930 square foot eat-in and take-out restaurant in an existing tenant space at 29 Miller Avenue based on the findings in Exhibit A and subject to the conditions ofapproval in Exhibit B ZONING COMPLIANCE: The proposed project is a Conditional Use Pennit to establish a 930 square foot "Subway" restaurant in an existing tenant space at 29 Miller Avenue. The tenant space is located within the CN (Neighborhood Commercial) Zoning District and was the location ofthe fonner Baskin-Robbins Ice Cream shop. Zoning: CN (Neighborhood Commercial) District Site Size: 25,205 square feet Tenant Space Size: 930 square feet (319 square feet public space) I ATTACHMENT 1 Proposed Use ofTenant Space: Restaurant Existing Parking Spaces: 23 existing spaces (for shopping center), plus 3 'in­ lieufee' parking spaces (26 total) Proposed Parking Spaces: oadditional parking spaces proposed Proposed Hours ofOperation: Monday - Sunday 7:00 am - 10:00 pm Number ofEmployees: 3 employees daytime / 2 employees nighttime STAFF ANALYSIS The applicant proposes to locate a Subway restaurant in an existing 930 square foot tenant space at 29 Miller Avenue. The existing tenant space, located in a shopping center, was formally occupied by a Baskin-Robbins Ice Cream shop that recently closed. Subway is a national brand franchise selling prepared sandwiches for eating in the restaurant or for take-out. The tenant space includes 5 tables with seating for 16 customers, a kitchen area and one bathroom. Hours ofoperation are proposed for Monday through Sunday 7:00 a.m. to 10:00 p.m. General Plan Conformance General Plan Section 2.4 describes the Town Center Area as a location for businesses that serve the day-to-day needs oflocal residents. In a survey relating to commercial uses in Mill Valley, found on page 51 in the General Plan, foo~ establishments were cited as needed additions in the Town Center. Currently, there are approximately 13 restaurants' in the Town Center area: 9 are evening oriented, sit down or specialty foods restaurants. The proposed use would offer a quick, inexpensive lunch option for someone that is already working, shopping or conducting business downtown. Like the former Baskin­ Robbins ice cream shop, a substantial portion ofSubway's business is take-out oriented and customers are quickly served. Based on information described in more detail, below, the restaurant's customers are anticipated to be existing downtown shoppers, the downtown workforce and nearby residents. Food servi~es are an integral part ofthe Town Center area and there is currently no proliferation ofsimilar 'sandwich shop' or take-out food uses. The Mill Valley General Plan references franchise and chain stores in the Town Center Neighborhood stating, "Lytton Square (Town Center) is the area hardest hit by rising rents andpressure to convert to a tourist-oriented market. There is a concern that without additional planni~g guidelines, existing businesses will continue to be replaced with businesses that are willing to pay increasingly higher rents, includingfranchise and chain stores which come to Mill Valley with greater resources than those ofthe many small independent proprietors that are currently located in the area. " 2 Planning staffand the Business Task Force studied the issues offranchise businesses and chain stores in the early 1990's after publication ofthe General Plan. Their findings indicated that there was no need for specific ordinances regulating formula businesses, but rather business size. The Zoning Ordinance was amended requiring a Conditional Use Permit for any commercial, administrative, professional an light industrial uses which occupy more than 1,500 square feet offloor area. Restaurants, regardless oftype or size, are conditionally permitted uses. General Plan Policy C-2, states that the Town Center should continue to serve as the primary commercial and civic center for the community. The existing shopping center has a mixed ofuses (retail, food, office, medical) and adequate parking providing a range ofservices to the Town Center area that, without the existing parking, may not be able to exist as stand alone uses. There are no proposed design alterations to the shopping center that would conflict with Program C-2-3, requiring preservation ofviews ofthe surrounding hills and trees. Adequate parking for the proposed use and the other mix of uses in the center is consistent with Policy C-3. The proposed location does not conflict with or expand into a residential neighborhood, conforming to Policy C-4. Conditional Use Permit Conditionally permitted uses require the Planning Commission to conduct a public hearing and make a decision based on the finding offact that the establishment ofthe use will be consistent with the General Plan and not be detrimental to persons residing or working in the neighborhood, nor the general welfare ofthe City. Restaurants are a conditionally permitted use within the CN (Neighborhood Commercial) Zoning District as defined in Section 20AO.030Q ("restaurants (sit down and take-out)") ofthe Zoning Ordinance. The former tenant, Baskin-Robbins, was established prior to the·adoption ofthe current Zoning Ordinance and operated as a legal non-conforming use, as a conditional use permit is also required in the CN Zoning District for ice cream and yogurt shops. The hours ofoperation are proposed from 7:00 a.m. to 10:00 p.m., consistent with other Town Center restaurants. La Coppa, Toast, The Depot Cafe, and Peet's Coffee shops open prior to 7:00 a.m. while D'Angelo's, Vasco, El Paseo, Bungalow 44, Beerworks, . Sweetwater Cafe, and Balboa are open past 10:00 p.m. The proposed use is not displacing an independent proprietor as Baskin-Robbins, a national chain, occupied this tenant space for more than 30 years. The applicant anticipates approximately 100 customers per day. Subway defines restaurants that generate less than 150 customers a day as 'low output' locations. 'High output' restaurants are typically located in large shopping centers like Bon-Air Plaza in Larkspur. Staffrequested a study ofcustomer traffic for a Subway restaurant located in a downtown shopping area (Attachment 2). The information below is for the "Petaluma Theatre District", a portion ofdowntown Petaluma. The study observed 26 customers during mid- 3 day (11 :40 am - 12:40 pm) and 7 customers during evening (4:45 pm - 5:45 pm) on Tuesday, January 31, 2012 and also noted their means oftransportation. The study reports that at mid-day 18 customers walked, 7 customers drove and 1 customer rode a bicycle. In the evening 5 customers walked and 2 custpmers drove. Staffspoke to the manager ofthis Subway location who stated these are typical daily customer counts. Peak Hour Pedestrians Vehicles Bicycle Total (All Modes) 11:40 am- 18 customers 7 customers 1 customer 26 customers 12:40 pm (69%) (28%) (4%) 4:45 pm- 5 customers 2 customers ocustomers 7 customers 5:45 pm (71%) (29%) Staffcontacted existing downtown Mill Valley restaurants to compare the anticipated customer generation figures for Subway with existing lunchtime traffic. Stefano's Pizzeria averaged 50 customers; Peet's Coffee averaged 76 customers; Pearl's Phat Burgers averaged 50 customers; Punjabi Burrito averaged 40 customers; and Champagne averaged 50 customers. The applicant also provided a weekly customer count for other North Bay Subway restaurants located in downtown shopping districts: Average Customer Count City Population Customers per per Week Day Santa Rosa 209,000 723 customers 103 customers Petaluma 70,000 703 customers 100 customers Vacaville 109,000 630 customers 90 customers Suisun 31,000 496 customers 71 customers' Napa 98,000 732 customers 104 customers Staffcontacted the Planning Department ofeach city listed to inquire ifthe Subway restaurant created any parking or traffic problems. Each city planner stated that the Subway restaurant imposed no significant impact to parking or traffic. No conditional use permits or traffic studies were required ofSubway in the cities listed above, nor have they received any parking or traffic complaints during each ofthe Subway's tenancy in the downtown districts. The Commission recently discussed proposing a Formula Business Ordinance that could restrict national franchise businesses within the proposed Downtown Commercial Zoning district. A number ofCalifornia cities restrict formula food uses by limiting the amount, type and design ofsuch uses. Mill Valley currently does not have specific restrictions against franchise stores or restaurants. Parking The parking plan, shown on Sheet A2.5 ofthe project plans, identifies 23 existing parking spaces. The parking in front ofthe proposed Subway is perpendicular to Miller Avenue, which allows vehicles to enter and exit from either Miller Avenue or Sunnyside 4 Avenue. Five parking spaces near the Postal Annex and Real Estate office are angled due to the building configuration. Four parking spaces are located behind the shopping center along Laurelwood Avenue. In addition to the 23 parking spaces provided, staffobserved the current tenants tandem parking behind spots 20-23 '(Sheet A2.5 ofthe project plans)" along Laurelwood Avenue without encroaching onto the sidewalk. The scale measures 18 feet ofclear space between the striped parking space and the sidewalk surface. While these are not conforming parking spaces and do not count in meeting the overall parking requirement, they do not obstruct vehicle or pedestrian traffic along Laurelwood Avenue. Two approvals for parking 'in-lieu' fees were granted in 1977 and 1986, adding three parking spaces to the existing 23 parking spaces.
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