<<

Planning Commission Report

Planning Commission Meeting: September 6, 2017 Agenda Item: 8-A To: Planning Commission From: Jing Yeo, City Planning Division Manager Subject: Conditional Use Permit (17ENT-0035) to allow for the sale of alcoholic beverages for on-site and off-site consumption (Type 47–On Sale General Eating Place and Type 21-Off Sale General) in conjunction with a new store and full service (Wally’s and Spirits). Address: 214 Wilshire Boulevard Applicant: Southwest Wine & Spirits, LLC

Recommended Action It is recommended that the Planning Commission take the following action(s) subject to findings and/or conditions contained in Attachment B: 1. Approve application 17ENT-0035

Executive Summary The applicant requests approval of a Conditional Use Permit (CUP) to allow for the on- site and off-site sale and consumption of , wine and distilled spirits at a new 9,513 square-foot retail and restaurant use in the Bayside Commercial (BSC2) District. Pursuant to the City’s Interim Zoning Ordinance No. 2522 (CCS) (“IZO”), the 1988 zoning ordinance continues to be applied to development in the Downtown Core, except as specified in the IZO.

The subject site is a 17,514 square-foot-lot developed with a two-story, 28,372 square- foot building within a one level, 32 space subterranean parking garage. The CUP would allow for the sale of retail wine and spirits and restaurant uses for on-site consumption of alcoholic beverages to patrons within the proposed dining areas and for the off-site sale and consumption of alcoholic beverages.

The following issues should be considered by the Planning Commission in its review of the proposed project and are addressed in this report:

 The compatibility of the proposed retail and restaurant with a Type 21 and Type 47 ABC Licenses for on-site and off-site consumption of within the surrounding neighborhood.  The effectiveness of the conditions of approval in mitigating any alcohol-related adverse impacts in the neighborhood relating to a Type 21 and Type 47 ABC Licenses at a retail and restaurant space.

1 Background The subject property at 214 Wilshire Boulevard is developed with a two-story, 28,372 square-foot building constructed in 2000 (approved by 97AA-034 and 98ARB-020). The ground floor uses consist of restaurant and retail and the second floor consists of general office with one level of 32 subterranean parking spaces. The ground floor tenant space is approximately 9,513 square feet, is currently vacant and was formerly occupied by a bookstore (Hennessey + Ingalls).

On July 22, 2015 the Planning Commission reviewed and approved Conditional Use Permit (14ENT-5009) to allow for alcohol service (Type 47 – On Sale General Eating Place) for a new restaurant (Santa Monica Farmhouse). The previous entitlement has since expired and the applicant is requesting approval of the proposed CUP.

In the BSC2 District, retail and restaurant uses are permitted by right. The applicant will be submitting for a tenant improvement to convert the existing tenant space from retail to a new retail/restaurant use and will be seeking Architectural Review Board approval of any exterior modifications and signage. A CUP is only required for the on-site and off- site sale and consumption of alcohol.

Project / Site Information The following table provides a brief summary of the project location. Additional information regarding the project’s compliance with applicable municipal regulations and the General Plan is available in Attachment A.

Project and Site Information Table Zoning District: BSC2 Land Use Element Designation: Downtown Core Parcel Area (SF): 17,514 sq ft Parcel Dimensions: Irregular Lot Existing On-Site Improvements (Year Built): 28,372 sq ft building (2000) Rent Control Status/Remaining tenants on-site: N/A

Adjacent Zoning Districts and Land Uses: North: C3 / Office South: BSC2 / Office/Retail West: BSC2 Restaurant East: BSC1 / Retail

The subject property is located near the southeast corner of Wilshire Boulevard and 2nd Street. The site is developed with a two-story 28,372 square-foot building and 32 parking spaces accessed from 2nd Street, south of the property.

2

Environmental Analysis The approval of a Conditional Use Permit (CUP) to allow for the on-site and off-site sale and consumption of beer, wine and distilled spirits at a new 9,302 square-foot retail and restaurant use is exempt from the provisions of the California Environmental Quality Act pursuant to CEQA Guideline Section 15303 (Class 3), New Construction or Conversion of Small Structures, of the State Implementation Guidelines in that the project involves the conversion of a retail tenant space in an urbanized area of less than 10,000 square feet into a restaurant use on a site zoned for such use.

Project Analysis The applicant is requesting a CUP to allow for a new retail wine and spirits store and restaurant to operate with alcohol service (Type 21 and Type 47 License) in order to be able to sell and serve beer, wine and distilled spirit beverages. Pursuant to Part 9.04.10.18 of the 1988 zoning ordinance, a CUP is required for the on-site and off-site sale and dispensation of alcoholic beverages.

The requested hours of operation are 10:00 a.m. to 2:00 a.m. daily. The floor plan contains 4,994 square feet of restaurant area and 4,519 square feet of retail area. The seating area consists of tabletop and seating for a total of 185 seats.

Proposed Alcohol Service and Consumption Areas/Floor Plan The proposed floor plan contains approximately 9,513 square-feet (4,994 square feet of restaurant space and 4,519 square feet of retail area). Wally’s Wine and Spirits specializes in unique and high quality and spirits. They have recently expanded their operation to include a selection of items. Their Beverly Hills location has further expanded to include on-site dining. Like their Beverly Hills location, the new operation on

3 Wilshire will offer a full-service menu, which includes breakfast, lunch and dinner items. The restaurant portion of the operation will total 4,994 square feet, with a patron area of 2,845 square feet. The patron seating will total 185, including 149 seats on the main floor and 36 seats in a private mezzanine dining/bar area. The kitchen support and back of house area totals 2,149 square feet and will consist of a 777 square foot display kitchen and 1,372 square foot main kitchen and back of house area. No outdoor seating area, dance or live entertainment areas are proposed as part of the floor plan and operations associated with this request.

The retail space/floor plan includes 4,519 square feet of wine, and deli retail area located on the first floor. The mezzanine area will consist of 1,211 square feet with a 188 square foot bar, 445 square feet of private dining and 578 square feet of retail storage.

Figure 1: Main Level Floor Plan

4 Figure 2: Mezzanine Level Floor Plan

The proposed floor plan shown in both Figure 1 and Figure 2 above consists of the following square footage and seat breakdown area:

Proposed Restaurant:

Area Square Footage Seats

Kitchen Support 1,372 N/A

Kitchen/Bar 777 14

Main Level Dining 2,212 135

Mezzanine Level 633 36 Dining/Bar

Total 4,994 185

5 Compliance with Zoning Code The subject property is located in the BSC2 District, which is a mixed-use district intended to provide for a concentration of retail, entertainment, office and housing uses in addition to complementary uses such as and cultural facilities. The restaurant complies with this designation as a commercial business providing an eating and drinking establishment within the neighborhood of the subject property.

Restaurants in the BSC2 District are a permitted use. The proposed CUP is only required for the sale of on-site and off-site consumption of alcoholic beverages and would allow the City to place conditions of approval on the establishment such as hours of operation, food to alcohol sales percentage, food service with alcohol service, and restrictions on entertainment.

It should be mentioned that the Downtown IZO continues to apply to all development standards until the DCP’s anticipated effective date of September 8, 2017 at which time any permits issued after the effective date will be subject to the development standards associated with the DCP.

Conformance with General Plan Land Use Element Goal D1 supports maintaining Downtown’s competitive advantage as a premier local and regional shopping, dining, and entertainment destination, and supports its evolution in order to respond to changing market conditions. Specifically, Policy D1.1 specifies creating a diversity of retail opportunities including local and regional serving retail and dining in the Downtown. The neighborhood includes a variety of dining options. The proposed alcohol service allows the restaurant to offer alcohol beverages similar to those served in the neighboring and in the Downtown area.

Land Use Element Goal D7 and Policy D7.1 support creating a balanced mix of uses in the downtown that reinforces its role as the greatest concentration of activity in the city and encouraging a broad mix of uses that create dynamic activity in both the daytime and evening hours. The proposed hours of alcohol service allows the restaurant an opportunity to operate and serve visitors and residents in a manner that is consistent with other alcohol outlets and restaurants located in the Downtown.

Parking One level of subterranean parking is provided on site with 32 spaces available. The subject property is located within the City’s Parking Assessment District. Pursuant to Santa Monica Municipal Code Section 9.04.10.08.030(m), off-street parking requirements are not applicable to properties located within the City’s Parking Assessment District and will be subject to the requirements of Santa Monica Municipal Code Section 9.04.10.08.230. Parking is available in the public parking garages. The nearest parking facility is located approximately 300 feet from the subject property (Parking Structure No. 2).

Since this project is a change of use from retail to a portion of restaurant, there will be a required parking in-lieu fee, which shall be paid prior to the issuance of building permits,

6 pursuant to SMMC Section 9.04.10.08.230. As mentioned above, it should be noted that if building permits are issued after the effective date of Zoning Ordinance amendments associated with the DCP (anticipated to be September 8, 2017), including the elimination of parking minimums, that the change of use from retail to restaurant could occur without any required parking.

Neighborhood Compatibility Santa Monica’s Downtown functions as the City’s center of commerce, retail, dining, transit, and entertainment. The area serves as a destination for local residents, regional visitors, and tourists from abroad. The Land Use Element goals and objectives call for pedestrian oriented uses and designs that activate and support the greatest concentration for the City.

The subject tenant space is located within a building containing an existing restaurant (California Pizza Kitchen) in the adjacent tenant space and general office on the second floor (Knoll, Inc.). The building is located near the southeast corner of Wilshire Boulevard and 2nd Street in the Downtown. This area of the Downtown contains a mix of retail, exercise, restaurant, and service uses. There is one church and school (First Presbyterian) located within a 500-foot radius. Staff does not believe the addition of alcohol service in conjunction with a permitted restaurant within this area would have significant negative impacts to the surrounding neighborhood or uses. Conversely, staff believes that the proposed alcohol service associated with a bona fide restaurant is a beneficial use that will enhance the surrounding pedestrian environment. To insure that a restaurant with alcohol service operates in a harmonious manner with the surrounding uses, businesses and nearby residences, conditions of approval are recommended to mitigate noise including the following:

 Condition #1- limits the number of seats to 185.  Condition #2- limits the retail and restaurant alcohol service hours: o Retail: 10:00 a.m. – 2:00 a.m daily. o Restaurant: 10:00 a.m.-12:00 a.m. daily o Complete closure one hour after restaurant service hours.  Condition #3-prohibits dancing or live entertainment beyond that allowed in the restaurant definition shall be permitted on the premises.  Condition #18- prohibits the restaurant from serving alcoholic beverages in the dining areas after midnight but may continue to sell alcoholic beverages in the retail area for off-site consumption only.

Alcohol Outlets in the Area Alcohol Service within Downtown Bayside Commercial District (BSC) is typically paired with full-service restaurant uses and is restricted to a maximum number of 50 outlets. Currently, there are 52 outlets located in the BSC, however per IZO 2522 the number of outlets was increased by 10 to allow for a maximum of 60 outlets, therefore the proposed alcohol outlet is in compliance.

7 The following table identifies the location and license type of other alcohol outlets within 500 feet of the subject site:

Establishment Address Hours of Operation ABC City License Approval Type California Pizza 214 Wilshire Blvd. Daily: 11am – 11pm Type 47 04CUP-001 Kitchen Fairmont Miramar 101 Wilshire Blvd. Daily: 7am – 2am Type 21, Predates City Hotel 47,58,66 requirement &68 800 Degrees 120 Wilshire Blvd Sunday- Type 47 13CUP-009 Pizza Wednesday: 11am-1am Thursday- Saturday: 11am-2am Hillstone 202 Wilshire Blvd. Daily: 11am – 12am Type 47 00CUP-032

Tender Greens 201 Arizona Ave. Daily: 11:30am – 10pm Type 41 10AD-009

Burger Lounge 213 Arizona Ave. Sunday – Type 41 12CUP-008 Thursday: 10:30am – 11pm Friday – Saturday: 10:30am – 12am Locanda Del 225 Arizona Ave. Sunday – Type 47 89CUP-102 Lago Thursday: 11am – 11pm Friday – Saturday: 11am – 1am 1212 Santa 1212 3rd St. Prom. Daily: 6am – 2am Type 47 90CUP-062 Monica Cabo 1240 3rd St. Prom. Sunday – Type 47 87CUP-423 Wednesday: 10am – 1am Thursday – Saturday: 10am – 2am Rosenthal 100 Wilshire Blvd. Wholesaler No sales to the Type 2 Office Only Estate public. Panini Café 312 Wilshire Blvd. Sunday-Thursday: 9am-12am Type 47 14ENT-5027 Friday-Saturday: 9am-1am P.F. Changs 326 Wilshire Blvd. Sunday- Type 47 98CUP-023 Thursday: 11am-11pm Friday-Saturday: 11am-12am The Gables 331 Wilshire Blvd. Sunday-Thursday: 9am-11pm Type 41 17ENT-043 Friday-Saturday: 9am-12am Michael’s 1147 3rd St. Daily: 7:30am-11:30pm Type 02CUP-029 Restaurant 47&58 Moinsuer Marcel 1260 3rd St. Prom. Sunday- Type 41 06AE-002 Thursday: 9am-12am Friday-Saturday: 9am-1am

The proposed hours of alcohol service are 10:00 a.m. to 2:00 a.m. daily. Staff believes this is not consistent with closing times with the surrounding restaurants and is recommending that the restaurant hours be from 10:00 a.m. to 12:00 a.m. daily and the retail store hours be from 10:00 a.m. to 2:00 a.m. daily. Since the restaurant will be offering a breakfast menu, alcohol service beginning at 10:00 a.m. would be appropriate.

8 Police Department Comments The Police Department has been notified of the project and at this time does not have any comments or objections to the request for alcohol as proposed by the applicant.

Alternative Actions: In addition to the recommended action, the Planning Commission could consider the following with respect to the project if supported by the evidentiary record and consistent with applicable legal requirements:

A1. Continue the project for specific reasons (note as applicable), consistent with applicable deadlines and with agreement from the applicant A2. Articulate revised findings and/or conditions to Approve OR Deny, with or without prejudice, the subject application

Conclusion The applicant requests approval of a Conditional Use Permit (CUP) to allow for the sale of alcoholic beverages for on-site and off-site consumption (Type 21-Off- Sale General and Type 47- On Sale General Eating Place) in conjunction with a new 9,513 square-foot retail and restaurant use (Wally’s Wine and Spirits) with 185 seats in the Bayside Commercial (BSC2) District. The proposed alcohol sales is complimentary to the restaurant dining use and compatible with the surrounding neighborhood context which has multiple restaurants serving beer, wine, distilled spirts with comparable or later hours of operation. The use is also consistent with the Land Use Element of the General Plan in that this type of use is supported by the LUCE as a local-and regional-serving use in the City’s Downtown Core designation. As conditioned, the proposed alcohol sales and service at the restaurant is not anticipated to create any negative impacts to the surrounding area.

Prepared by: Michael Rocque, Associate Planner Paul Foley, Principal Planner

Attachments A. Draft Statement of Official Action B. Public Notification & Comment Material C. Project Plans

9

ATTACHMENT A GENERAL PLAN AND MUNICIPAL CODE COMPLIANCE WORKSHEET

Project Location and Permit Processing Time Limits Project Address: 214 Wilshire Boulevard Application Filing Date: April 6, 2017 CEQA Deadline: May 6, 2017 PSA Deadline: July 7, 2017 Total Process Review Time (Days): September 6, 2017 ( 153 days)

General Plan and Municipal Code Compliance Worksheet

LAND USE CATEGORY ELEMENT MUNICIPAL CODE PROJECT

Permitted Use Downtown Alcohol outlets with a Type 47 and Applicant requests a Core Type 21 alcohol license require a Conditional Use Permit Conditional Use Permit. for the sale of alcoholic beverages for on-site and off-site consumption [SMMC 9.04.10.18.020] (Type 47–On Sale General Eating Place and Type 21-Off Sale General) in conjunction with a new retail store and full service restaurant

10 Attachment A

ATTACHMENT B DRAFT STATEMENT OF OFFICIAL ACTION

City of Santa Monica City Planning Division

PLANNING COMMISSION STATEMENT OF OFFICIAL ACTION

PROJECT INFORMATION

CASE NUMBER: 17ENT-0035

LOCATION: 214 Wilshire Boulevard

APPLICANT: Southwest Wine and Spirits, LLC

PROPERTY OWNER: Street Retail West, LP

CASE PLANNER: Michael Rocque, Associate Planner

REQUEST: The applicant is requesting approval of a Conditional Use Permit (CUP) to allow for the sale of alcoholic beverages for on-site and off-site consumption (Type 47–On Sale General Eating Place and Type 21-Off Sale General) in conjunction with a new retail store and full service restaurant (Wally’s Wine and Spirits) in the Bayside Commercial (BSC2) District.

CEQA STATUS: This project is exempt from the provision of the California Environmental Quality Act (CEQA), pursuant to Section 15303 (c) (Class 3), New Construction or Conversion of Small Structures, of the State Implementation Guidelines in that the project involves the conversion of a retail tenant space in an urbanized area of less than 10,000 square feet into a restaurant use on a site zoned for such use.

11 Attachment B Draft Statement of Official Action

PLANNING COMMISSION ACTION

Determination Date Approved based on the following findings and subject to the September 6, 2017 conditions below. Denied. Other:

EFFECTIVE DATES OF ACTIONS IF September 21, 2017 NOT APPEALED: EXPIRATION DATE OF ANY PERMITS September 21, 2019 GRANTED: LENGTH OF ANY POSSIBLE 6 months EXTENSION OF EXPIRATION DATES*:

* Any request for an extension of the expiration date must be received in the City Planning Division prior to expiration of this permit.

Each and all of the findings and determinations are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the Project. All summaries of information contained herein or in the findings are based on the substantial evidence in the record. The absence of any particular fact from any such summary is not an indication that a particular finding is not based in part on that fact.

FINDINGS:

CONDITIONAL USE PERMIT FINDINGS

1. The proposed use is one conditionally permitted within the subject district and complies with all of the applicable provisions of the "City of Santa Monica Comprehensive Land Use and Zoning Ordinance", in that alcohol licenses in conjunction with eating and drinking establishments are conditionally permitted in the BSC2 (Bayside Commercial) district of the Zoning Ordinance. More specifically, requests for new alcohol licenses or substantial changes in the mode or character of the existing licenses require Conditional Use Permit approval consistent with SMMC Section 9.04.10.18.020.

2. The proposed use would not impair the integrity and character of the district in which it is to be established or located, in that the primary use as a retail store and restaurant is encouraged in the Land Use and Circulation Element, specifically along Wilshire Boulevard between 2nd and 3rd Street. Further, the sale of retail wine and spirits and the on-site consumption of alcoholic beverages to patrons within the proposed dining areas will be ancillary to the primary restaurant and retail function. Alcohol-related problems are not generally associated with full- service restaurants and conditions of approval have been included to mitigate potential impacts associated with alcohol sales and consumption.

12 Attachment B Draft Statement of Official Action

3. The subject parcel is physically suitable for the type of land use being proposed, in that the parcel is developed with an approximate 28,372 square-foot commercial building that can accommodate a new retail/restaurant use. The project does not include any additions to the building or parcel and 32 parking spaces are available on-site and in the City public parking garages in the Downtown district, through payment of an in-lieu parking fee.

4. The proposed use is compatible with any of the land uses presently on the subject parcel if the present land uses are to remain, in that the other use on the property are a restaurant (California Pizza Kitchen) and an office (Knoll, Inc.) on the second floor. The issuance of an alcohol license for beer, wine, and distilled spirits sales and service in the proposed retail/restaurant will be compatible with the existing uses.

5. The proposed use would be compatible with existing and permissible land uses within the district and the general area in which the proposed use is to be located, in that the Zoning Ordinance conditionally permits the sale of alcohol for both on- site and off-site consumption and in conjunction with restaurants with alcohol service in the BSC2 District. The proposed retail/restaurant are compatible to other uses in the area which include a mix of restaurants, hotels, retail and other commercial uses Downtown. Conditions of approval have been included to mitigate operational and alcohol-related impacts.

6. There are adequate provisions for water, sanitation, and public utilities and services to ensure that the proposed use would not be detrimental to public health and safety, in that the site is located in an existing building that is adequately serviced by existing infrastructure.

7. Public access to the proposed use will be adequate, in that vehicular access to the on-site parking garage is provided from 2nd Street and pedestrian access to the restaurant is provided from Wilshire Boulevard. The restaurant is located within the Downtown Parking District area where City parking garages are available and is also in close proximity to public transit.

8. The physical location or placement of the use on the site is compatible with and relates harmoniously to the surrounding neighborhood, in that the retail store and restaurant with alcohol service are proposed in an existing building that is designed with pedestrian orientation and is compatible with other uses in the building and neighborhood. Furthermore, the retail store/restaurant is limited to 185 seats and provides a walkable destination for residents/workers in the neighborhood and visitors in the beach and Downtown areas.

9. The proposed use is consistent with the goals, objectives, and policies of the General Plan, in that Land Use Element Goal D1 is to maintain Downtown’s competitive advantage as a premier local and regional shopping, dining, and entertainment destination, and support its evolution in order to respond to changing market conditions. Policy D1.1 specifies the creation of diverse retail opportunities including local and regional serving retail and dining in the Downtown. The

13 Attachment B Draft Statement of Official Action

restaurant will enhance the dining options on the north side of Downtown. The proposed CUP for the alcohol outlet allows for the restaurant to stay competitive by offering beverages comparable to other restaurants located in the Downtown. Furthermore, Land Use Element D7 and Policy D7.1 support a balanced mix of uses in the Downtown that reinforces its role as the greatest concentration of activity in the City. The LUCE encourages a broad mix of uses that create dynamic activity in both the daytime and evening hours. The proposed CUP for incidental alcohol sales and service provides Santa Monica Farmhouse the ability to offer patrons beverage options similar to other dining establishment within the Downtown district.

10. The proposed use would not be detrimental to the public interest, health, safety, convenience, or general welfare, in that the proposed use is consistent with the Zoning Ordinance and the LUCE, and conditions have been added to mitigate any potential adverse impacts.

11. The proposed use conforms precisely to the applicable performance standards contained in Subchapter 9.04.12 and special conditions outlined in Subchapter 9.04.14 of the City of Santa Monica Comprehensive Land Use and Zoning Ordinance, in that no performance standards permit is required.

12. The proposed use will not result in an over concentration of such uses in the immediate vicinity, in that the proposed retail store and restaurant is located in the Downtown area which includes a mix of retail, hotels, restaurants, and an exercise facility. The general vicinity is frequented by large numbers of local residents, shoppers, visitors, and tourists. Interim Zoning Ordinance 2522 establishes a limitation of sixty (60) alcohol establishments in the Bayside District and the issuance of an alcohol license for beer, wine, and distilled spirits sales and service in the proposed retail/restaurant will not exceed the numerical limit. The alcohol outlets have not contributed significantly to alcohol related problems in the area, and it is anticipated that the incorporation of various conditions of approval will minimize impacts and intrusions into any adjacent residential neighborhood.

ALCOHOL OUTLET FINDINGS

1. The proposed use will not adversely affect the welfare of neighborhood residents in a significant manner in that the use will be located in a commercial area, away from any major residential uses. The Type 21 and 47 ABC License would allow for the sale of beer, wine and distilled spirits. Seating has been limited to 185 seats and Conditions have been added to mitigate potential impacts associated with alcohol consumption.

2. The proposed use will not contribute to an undue concentration of alcohol outlets in the area in that both a retail store and restaurant with no separate bar area or entertainment or other use is not typically considered to contribute to objectionable problems associated with alcohol outlets, and in that the area is in the Downtown portion of Santa Monica which is frequented by large numbers of local residents as well as office workers, shoppers, and visitors from outside the

14 Attachment B Draft Statement of Official Action

area. Furthermore, this type of outlet has not contributed significantly to alcohol related problems in the area.

3. The proposed use will not detrimentally affect nearby neighborhoods considering the distance of the alcohol outlet to residential buildings, churches, schools, hospitals, playgrounds, parks, and other existing alcohol outlets in that the conditions for approval, such as the requirement that the establishment operate with no separate bar area, is limited to 185 seats and entertainment will minimize the potential effect on the residential uses in the vicinity.

4. The proposed use is compatible with existing and potential uses within the general area in that the retail store and restaurant is in a commercial district, and a retail store and restaurant with an alcohol license is compatible with permitted uses.

5. Traffic and parking congestion will not result from the proposed use in that parking for the use is available on-site and in City public parking garages Downtown.

6. The public health, safety, and general welfare are protected in that the project is consistent with the provisions of the Zoning Ordinance, and the Land Use Element of the General Plan, which encourage pedestrian-oriented uses such as restaurants serving alcoholic beverages. Conditions of approval have been included to mitigate potential alcohol-related adverse impacts.

7. No harm to adjacent properties will result in that the conditions of approval will ensure that the establishment operates as a retail store and restaurant with no separate bar area or entertainment.

8. The proposed use is consistent with the objectives of the General Plan in that the Land Use Element Goal D1 is to maintain Downtown’s competitive advantage as a premier local and regional shopping, dining, and entertainment destination, and support its evolution in order to respond to changing market conditions. Specifically, Policy D1.1 states that retail opportunities, including local and regional serving retail and dining, should be created in the Downtown. The proposed restaurant enhances and fulfills the goal by providing an additional restaurant in the Downtown. The proposed alcohol outlet allows the restaurant to stay competitive by offering beverages that are comparable to those served Downtown. Furthermore, Land Use Element Goal D7 and Policy D7.1 support the mixture of uses in the Downtown that reinforces its role as the greatest concentration of activity in the City.

15 Attachment B Draft Statement of Official Action

CONDITIONS OF APPROVAL:

PLANNING AND COMMUNITY DEVELOPMENT

Project Specific Conditions

1. This approval is for a Type 21 (Off- Sale General) and Type 47 (On Sale General Eating Place) ABC licenses only. Any request to modify this license type shall require approval from the Planning Commission.

2. Seating arrangements for sit-down patrons shall not exceed 185 seats.

3. The permitted retail store hours shall be from 10:00 a.m. through 2:00 a.m. daily and the restaurant service hours shall be 10:00 a.m. through 12:00 a.m. daily. Complete closure, with all restaurant employees vacated from the restaurant, shall be one hour after the restaurant service hours. No "after hours" operations shall be permitted.

4. No exterior activity such as trash disposal, deliveries or other maintenance activity generating noise audible from the exterior of the building shall occur from one hour after closing until 6:00 a.m. In addition, there shall be no disposal of bottles or noise generating trash between 11:00 p.m. to 6:00 a.m., daily. Trash containers shall be secured with locks.

Administrative

5. The Planning Commission’s approval, conditions of approval, or denial of this application may be appealed to the City Council if the appeal is filed with the Zoning Administrator within fourteen consecutive days following the date of the Planning Commission’s determination in the manner provided in Part 9.04.20.24, Sections 9.04.20.24.010 through 9.04.20.24.040. Any appeal must be made in the form required by the Zoning Administrator. The approval of this permit shall expire if the rights granted are not exercised within 30 months (for projects in the Coastal Zone) from the permit’s effective date. Exercise of rights shall mean issuance of a building permit to commence construction or actual commencement of the use granted by this Conditional Use Permit if a building permit is not required.

6. Within ten days of City Planning Division transmittal of the Statement of Official Action, project applicant shall sign and return a copy of the Statement of Official Action prepared by the City Planning Division, agreeing to the conditions of approval and acknowledging that failure to comply with such conditions shall constitute grounds for potential revocation of the permit approval. By signing same, applicant shall not thereby waive any legal rights applicant may possess regarding said conditions. The signed Statement shall be returned to the City

16 Attachment B Draft Statement of Official Action

Planning Division. Failure to comply with this condition shall constitute grounds for potential permit revocation.

7. Prior to commencement of alcohol service, the applicant shall post a notice at the building entry stating that the site is regulated by a Conditional Use Permit and the Statement of Official Action, which includes the establishment’s conditions of approval, is available upon request. This notice shall remain posted at all times the establishment is in operation.

8. Within thirty (30) days from date of the approval of the Statement of Official Action, the applicant shall provide a copy of the approved Statement of Official Action for this project to the local office of the State Alcoholic Beverage Control department.

9. The rights associated with this approval shall expire if the establishment ceases alcohol service for more than one year.

10. Prior to issuance of a Certificate of Occupancy, or a business license, or commencement of alcohol service as applicable, the operator shall submit a plan for approval by the Director of Planning regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol awareness training program for all employees having contact with the public and shall state management's policies addressing alcohol consumption and inebriation. The program shall require all employees having contact with the public to complete a California Department of Alcoholic Beverage Control (ABC) sponsored alcohol awareness training program within 90 days of the effective date of this approval. In the case of new employees, the employee shall attend the alcohol awareness training within 90 days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved by the Director of Planning and Community Development. The operator shall provide the City with an annual report regarding compliance with this condition. This project shall be subject to any future City-wide alcohol awareness training program condition affecting similar establishments.

11. Prior to issuance of a Certificate of Occupancy, or a business license, or commencement of alcohol service as applicable, the operator shall also submit a plan describing the establishment's designated driver program, which shall be offered by the operator to the establishment's patrons. The plan shall specify how the operator will inform patrons of the program, such as offering on the menu a free non-alcoholic for every party of two or more ordering alcoholic beverages.

12. In the event permittee violates or fails to comply with any conditions of approval of this permit, no further permits, licenses, approvals or certificates of occupancy shall be issued until such violation has been fully remedied.

17 Attachment B Draft Statement of Official Action

13. Applicant is advised that projects in the California Coastal Zone may need approval of the California Coastal Commission prior to issuance of any building permits by the City of Santa Monica. Applicant is responsible for obtaining any such permits.

Indemnity

14. Applicant shall defend, indemnify, and hold harmless the City and its boards, commissions, agents, officers, and employees (collectively, "City") from any claims, actions, or proceedings (individually referenced as "Claim" and collectively referenced as "Claims") against the City to attack, set aside, void, or annul, the approval of 16ENT-0091 or any Claims brought against the City due to the acts or omissions in any way connected to the Applicant's project. City shall promptly notify the applicant of any Claim and shall cooperate fully in the defense. Nothing contained in this paragraph prohibits the City from participating in the defense of any Claims, if both of the following occur:

(A) The City bears its own attorney's fees and costs. (B) The City defends the action in good faith.

Applicant shall not be required to pay or perform any settlement unless the settlement is approved by the Applicant.

In the event any such action is commenced to attack, set aside, void or annul all, or any, provisions of any approvals granted for the Project, or is commenced for any other reason against the City for the act or omissions relating to the Applicant's project, within fourteen (14) days following notice of such action from the City, the Applicant shall file with the City a performance bond or irrevocable letter of credit, or other form of security satisfactory to the City ("the Security") in a form satisfactory to the City, and in the amount of $100,000 to ensure applicant's performance of its defense, indemnity and hold harmless obligations to City. The Security amount shall not limit the Applicant's obligations to the City hereunder. The failure of the Applicant to provide the Security shall be deemed an express acknowledgment and agreement by the Applicant that the City shall have the authority and right, without consent of the Applicant, to revoke the approvals granted hereunder

Conformance with Approved Plans

15. This approval is for those plans dated August 2, 2017, a copy of which shall be maintained in the files of the City Planning Division. Project development shall be consistent with such plans, except as otherwise specified in these conditions of approval.

18 Attachment B Draft Statement of Official Action

16. Minor amendments to the plans shall be subject to approval by the Director of Planning. A substantial change in mode or character shall be subject to Planning Commission Review. A substantial change in mode or character of operation shall include, but is not limited to, a change in operational hours that extends past the approved hours of operation, a 5 percent increase in the floor area of the premises, a 10 percent increase in the shelf area used for the display of alcoholic beverages, queuing outside the establishment, age requirements for entry, checking identification at the door, implementing a , offering bottle service, or a 5 percent increase or decrease in the number of seats in any restaurant that serves alcoholic beverages, but in no case shall the increase exceed any established seating limitation in the underlying zoning district. Construction shall be in substantial conformance with the plans submitted or as modified by the Planning Commission, Architectural Review Board, or Director of Planning. No expansion in number of seats, intensity of operation, or outdoor areas shall occur without prior approval from the City of Santa Monica and State ABC.

17. Project plans shall be subject to complete Code Compliance review when the building plans are submitted for plan check and shall comply with all applicable provisions of Article IX of the Municipal Code and all other pertinent ordinances and General Plan policies of the City of Santa Monica prior to building permit issuance.

Fees

18. As required by California Government Code Section 66020, the project applicant is hereby notified that the 90-day period has begun as of the date of the approval of this application, in which the applicant may protest any fees, dedications, reservations, or other exactions imposed by the City as part of the approval or as a condition of approval of this development. The fees, dedications, reservations, or other exactions are described in the approved plans, conditions of approval, and/or adopted city fee schedule.

Project Operations

19. No exterior activity such as trash disposal, disposal of bottles or noise generating trash, deliveries or other maintenance activity generating noise audible from the exterior of the building shall occur during the hours of 11:00pm to 7:00am daily. In addition, there shall be no outdoor cleaning of the property with pressurized or mechanical equipment during the hours of 9:00pm to 7:00am daily. Trash containers shall be secured with locks.

20. The restaurant shall not serve alcoholic beverages in the dining areas after midnight but may continue to sell alcoholic beverages in the retail area for off- site consumption only.

19 Attachment B Draft Statement of Official Action

21. The primary use of the premises shall be for retail sales and sit-down meal service to patrons.

22. If a counter service area is provided, food service shall be available at all hours the counter is open for patrons, and the counter area shall not function as a separate bar area.

23. Window or other signage visible from the public right-of-way that advertises beer or alcohol shall not be permitted.

24. Customers shall be permitted to order meals at all times and at all locations where alcohol is being served. The establishment shall serve food to patrons during all hours the establishment is open for customers.

25. The establishment shall maintain a kitchen or food-serving area in which a variety of food is prepared on the premises.

26. Take out service shall be only incidental to the primary sit-down use.

27. No alcoholic beverage shall be sold for consumption beyond the premises.

28. Except for special events, alcohol shall not be served in any disposable container such as disposable plastic or paper cups.

29. No more than three television screens, including video projectors or similar audio/visual devices, shall be utilized on the premises. None of these televisions or projections surfaces shall exceed 60 inches measured diagonally.

30. No video or other amusement games shall be permitted on the premises.

31. No dancing or live entertainment beyond that allowed in restaurant definition contained in Section 9.04.02.030.730. Specifically, “a restaurant may provide music or other entertainment if: 1) there is sit down meal service provided at all times while the entertainment is taking place; 2) there is no dancing or dance floor; 3) there is no cover charge or minimum drink purchase requirement; and 4) the entertainment is provided only in the dining areas.”

32. The operation shall at all times be conducted in a manner not detrimental to surrounding properties or residents by reason of lights, noise, activities, parking or other actions.

33. No more than 60% of total gross revenues per year shall be from alcohol sales. The total of all off-site alcohol sales (Type-21) shall not exceed 20% and on-site alcohol sales (Type 47) shall not exceed 40%. The operator shall maintain records of gross revenue sources which shall be submitted annually to the City

20 Attachment B Draft Statement of Official Action

of Santa Monica City Planning Division at the beginning of the calendar year and also available to the City of Santa Monica and the State ABC upon request.

34. Bottle service shall mean the service of any full bottle of liquor, wine, or beer, of more than 375 ml, along with glass ware, mixers, garnishes, etc., in which patrons are able to then make their own or pour their own wine or beer. Liquor bottle service shall be prohibited. Wine and beer bottle service shall not be available to patrons unless full meal service is provided concurrent with the Bottle service. All food items shall be available from the full service menu.

35. No organized queuing of patrons at the entry or checking of identification to control entry into and within the establishment shall be permitted. There shall not be any age limitation imposed restricting access to any portion of the restaurant.

36. The establishment shall not organize or participate in organized “-crawl” events where participants or customers pre-purchase tickets or tokens to be exchanged for alcoholic beverages at the restaurant.

37. There shall be no cover charge or minimum drink purchase requirement.

38. The project shall at all times comply with the provisions of the Noise Ordinance (SMMC Chapter 4.12).

39. Pursuant to SMMC Section 4.12 (Noise), establishments with amplified music shall be required to provide entrances and exits, except exits which are solely emergency exits, designed as two-door vestibules, so that only one set of doors is open at a time. Doors shall be of solid core design. Windows shall be constructed with double-paned glass.

40. The owner shall prohibit loitering in the parking area and shall control noisy patrons leaving the restaurant.

41. Employees of the establishment shall walk a 100-foot radius from the facility at some point prior to 30 minutes after closing and shall pick up and dispose of any discarded beverage containers and other trash left by patrons.

42. Applicant is on notice that all temporary signage is subject to the restrictions of the City sign ordinance.

43. The project shall at all times comply with the provisions of the Noise Ordinance (SMMC Chapter 4.12).

44. Pursuant to SMMC Section 4.12 (Noise), establishments with amplified music may be required to provide entrances and exits, except exits which are solely emergency exits, designed as two-door vestibules, so that only one set of doors

21 Attachment B Draft Statement of Official Action

is open at a time. Doors shall be of solid core design. Windows shall be constructed with double-paned glass.

Standard Conditions

45. Construction period signage shall be subject to the approval of the Architectural Review Board.

46. The property owner shall insure any graffiti on the site is promptly removed through compliance with the City’s graffiti removal program.

POLICE

47. Prior to issuance of a Certificate of Occupancy, or a business license, or commencement of alcohol service as applicable, a security plan shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues.

48. Prior to the commencement of alcohol service, the applicant shall participate in the Santa Monica Alcohol Awareness for Retailers Training (S.M.A.A.R.T) program conducted by the Santa Monica Police Department

COMPLIANCE

49. The applicant authorizes reasonable City inspection of the property to ensure compliance with the conditions of approval imposed by the City in approving this project and will bear the reasonable cost of these inspections as established by Santa Monica Municipal Code Section 2.72.010 and Resolution No. 9905 (CCS) or any successor legislation thereto. These inspections shall be no more intrusive than necessary to ensure compliance with conditions of approval.

VOTE

Ayes: Nays: Abstain: Absent:

22 Attachment B Draft Statement of Official Action

NOTICE

If this is a final decision not subject to further appeal under the City of Santa Monica Comprehensive Land Use and Zoning Ordinance, the time within which judicial review of this decision must be sought is governed by Code of Civil Procedure Section 1094.6, which provision has been adopted by the City pursuant to Municipal Code Section 1.16.010.

I hereby certify that this Statement of Official Action accurately reflects the final determination of the Planning Commission of the City of Santa Monica.

______Amy Anderson, Chairperson Date

Acknowledgement by Permit Holder

I hereby agree to the above conditions of approval and acknowledge that failure to comply with such conditions shall constitute grounds for potential revocation of the permit approval.

Print Name and Title Date

Applicant’s Signature

23 Attachment B Draft Statement of Official Action

ATTACHMENT C PUBLIC NOTIFICATION INFORMATION

Consistent with SMMC 9.20.14.010, notice of the subject application was published in a newspaper of general circulation (Santa Monica Daily Press) and mailed to owners and occupants within 750 feet of the property, at least fourteen days prior to the hearing. In addition, a copy of the notice was posted on the City’s website, on the City’s bulletin board, and copies of the agenda mailed to all City-recognized neighborhood groups prior to the hearing.

On July 27th, 2017, the applicant was notified in writing of the subject hearing date.

The applicant provided the following information regarding attempts to contact area property owners, residents, and recognized neighborhood associations:

Neighborhood Associations: Santa Monica Mid-City Neighbors

Adjacent Neighbors: None

Community Meetings: None

24 Attachment C Public Notification Information

NOTICE OF A PUBLIC HEARING BEFORE THE SANTA MONICA PLANNING COMMISSION

SUBJECT: 17ENT-0035 214 Wilshire Boulevard APPLICANT: Southwest Wine and Spirits, LLC PROPERTY OWNER: Street Retail West 10, LP

A public hearing will be held by the Planning Commission to consider the following request:

The applicant requests approval of a Conditional Use Permit (CUP) to allow for the on- site and off-site sale and consumption of beer, wine and distilled spirits (Type 47–On Sale General Eating Place and Type 21-Off Sale General) at a new 9,514 square-foot retail and restaurant use in the Bayside Commercial (BSC2) District.

DATE/TIME: WEDNESDAY, SEPTEMBER 6, 2017, AT 7:00 PM

LOCATION: City Council Chambers, Second Floor, Santa Monica City Hall 1685 Main Street, Santa Monica, California

HOW TO COMMENT The City of Santa Monica encourages public comment. You may comment at the Planning Commission public hearing, or by writing a letter. Written information will be given to the Planning Commission at the meeting.

Address your letters to: Michael Rocque, Associate Planner Re: 17ENT-0035 City Planning Division 1685 Main Street, Room 212 Santa Monica, CA 90401

MORE INFORMATION If you want more information about this project or wish to review the project file, please contact Michael Rocque at (310) 458-8341, or by e-mail at [email protected]. The Zoning Ordinance is available at the Planning Counter during business hours and on the City’s web site at www.santa-monica.org.

The meeting facility is wheelchair accessible. For disability-related accommodations, please contact (310) 458-8341 or (310) 458-8696 TTY at least 72 hours in advance. Every attempt will made to provide the requested accommodation. All written materials are available in alternate format upon request. Santa Monica “Big Blue” Bus Lines #1, #2, #3, Rapid 3, #7, and #9 service the City Hall and the Civic Center.

Pursuant to California Government Code Section 65009(b), if this matter is subsequently challenged in Court, the challenge may be limited to only those issues raised at the public 25

Attachment C Draft Statement of Official Action

hearing described in this notice, or in written correspondence delivered to the City of Santa Monica at, or prior to, the public hearing.

ESPAÑOL Esto es una noticia de una audiencia pública para revisar applicaciónes proponiendo desarrollo en Santa Monica. Si deseas más información, favor de llamar a Carmen Gutierrez en la División de Planificación al número (310) 458-8341.

APPROVED AS TO FORM:

______Jing Yeo, AICP Planning Manager

26

Attachment C Draft Statement of Official Action