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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 retail store and full service restaurant (Wally’s Wine 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 beer, 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 alcohol 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 bar 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 wines and spirits. They have recently expanded their operation to include a selection of food 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, liquor 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 hotels 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 restaurants 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.