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01. Staff Report PC 320 W Chestnut PLANNING COMMISSION STAFF REPORT APPLICATION: CUP2019-0003 (Amendment) AGENDA ITEM: PH-1 PREPARED BY: Vincent Gillespie, MEETING June 9, 2021 Planning Technician DATE: SUBJECT: Conditional Use Permit CUP2019-0003 (Amendment) 320 West Chestnut Avenue REQUEST: Approve an amendment to Conditional Use Permit (CUP2019-0003) to increase the floor area of an existing wine tasting room from 378 square feet to approximately 990 square feet, and to allow online sales and incidental retail sales of distilled spirits (ABC License Type 21) in conjunction with an existing wine warehousing and mail order business (Wine of the Month Club). The existing Conditional Use Permit allows the off-site sale of beer and wine (Type 20) and incidental wine tasting (Type 2). APPLICANT: Paul Kalemkiarian, Wine of the Month Club 320 West Chestnut Avenue Monrovia, CA 91016 ENVIRONMENTAL Categorical Exemption (Class 1- Existing Facilities) DETERMINATION: BACKGROUND: On April 10, 2019, the Planning Commission approved a Conditional Use Permit (CUP2019-0003), allowing incidental retail sales of wine and on-site wine tasting in connection with a wine warehousing and mail order business. These services are covered by the Type 2 and Type 20 ABC (State Department of Alcohol and Beverage Control) Licenses. The applicant also has Type 9, Type 17, and Type 18 licenses for the warehousing and mail order business operations, which are permitted by right. The applicant is requesting an amendment to his CUP to increase the floor area of the wine tasting room from 378 square feet to approximately 990 square feet and to add distilled spirits (Type 21) for online sales and incidental retail sales. Based on their request for a Type 21 license, this requires approval of both ABC and the Monrovia Planning Commission. ABC will not issue a license without the approval of a local jurisdiction. Section 17.44.025 of the Zoning Ordinance (Title 17) was adopted to allow for review and mitigation of potential adverse impacts associated with establishments which sell or serve alcoholic beverages. A CUP is required when alcoholic beverages are sold or served within 500 feet of residential zones, parks, schools, recreation centers, religious assembly or hospital uses. The subject site is located within 300 feet of a multifamily residential zone to the north and directly adjacent to a church located at 911 South Magnolia Avenue. The Zoning Ordinance 1 of 5 also requires an amended Conditional Use Permit (CUP) when an establishment requests a change to its license type. SUBJECT PROPERTY: The subject property is located on the south side of West Chestnut Avenue, between South Magnolia and South Alta Vista Avenues in the Manufacturing (M) zone. The property is rectangular in shape with approximately 150 linear feet of street frontage on Chestnut Avenue and a depth of 160 feet. The land area for the subject property is approximately 24,000 square feet. The site is developed with a 12,120 square foot industrial building used for warehousing and office space with incidental retail sales and wine tasting. The subject site is surrounded by the following land uses and General Plan designations: North: General Plan: Manufacturing Zoning: M (Manufacturing) Land Use: Light Industrial Building South: General Plan: Manufacturing Zoning: M (Manufacturing) Land Use: Light Industrial Building East: General Plan: Manufacturing Zoning: M (Manufacturing) Land Use: Light Industrial Buildings and a Church Building West: General Plan: Manufacturing Zoning: M (Manufacturing) Land Use: Light Industrial Building DISCUSSION/ANALYSIS: On April 10, 2019, the Planning Commission granted the applicant approval of a CUP to sell and serve wine in connection with a wine warehousing and mail order business. The Applicant now seeks to expand the business by increasing the floor area of the existing wine tasting room by 619 square feet and adding distilled spirits to the business product inventory for online and incidental retail sales. Distilled spirits will not be served. Site Plan No changes to the site plan are proposed with this request. The subject property is currently developed with a 12,120 square foot warehouse building and a surface parking lot with 30 parking spaces. The entire property was initially comprised of three individual separate lots. However, pursuant to the existing conditions of approval for CUP2019-0003, a covenant was recorded against the property on September 23, 2019 to hold all three lots together as one parcel. With this recorded covenant in place, the on-site parking will remain with the proposed use in the building. The parking lot is enclosed by a wrought iron fence along Chestnut Avenue (the north property line). Since April 2019, the applicant has constructed a new decorative trash enclosure just 2 of 5 north of the loading dock and has installed a new wrought iron fence along the south property line, fulfilling two conditions of approval for CUP2019-0003. Floor Plan Only minor modifications to the existing floor plan are proposed with this amendment request. The existing floor plan consists of 5,969 square feet of warehouse area, 1,728 square feet of office area, and a 369 square foot retail area, and a 378 square foot wine tasting room. Figure 1 below, provides an illustration of the existing floor plan layout. No new building square footage will be added. Figure 2 illustrates the interior floor plan changes included with this request. The existing wine retail area at the northeast corner of the building will also be utilized for retail sales of distilled spirits. Given that ABC does not allow wine tasting in retail sales areas, the applicant is requesting to expand the tasting room from 378 to 990 square feet. The larger wine tasting room will be located in the middle of the building just east of the main building entrance. N N Figure 1. The wine retail store was Figure 2. The wine retail store remain in the approved at the northeast corner of the same location but will include distilled spirits building, while the wine tasting room was in the product inventory. The wine tasting approved at the west side next to the side room will expand eastward occupying entrance. approximately 990 square feet. Business Operation Warehouse and Mail Orders: Wine of the Month Club is primarily a wine warehousing and distribution business with about 12 employees. Warehousing and distribution are the key components of the business, serviced by deliveries and pick-ups during the week. The Applicant now seeks to expand the business by offering distilled spirits for online and retail sales. The inclusion of distilled spirits within the business product inventory allows the Wine of the Month Club serve a wider market by offering a broader selection of products. 3 of 5 Retail Store and Tastings: Retail sales of wine and distilled spirits will be limited to the same hours as the warehousing and distribution operation, 8:00 AM to 5:30 PM Monday through Thursday, and 8:00 AM to 5:00 PM on Fridays. The retail store is for customers who wish to walk in and purchase a bottle of wine or distilled spirits for off-site consumption as well as for members to pick up their orders in person. Wine tasting will be made available to the public on the weekends, from 3:00 PM to 10:00 PM on Fridays and from 12:00 noon to 10:00 PM on Saturdays and Sundays. Wine tasting takes place on a walk-in basis with 45 customers visiting on a typical day and anywhere from 10 to 20 people expected at a given time. Each sample would be limited to a one and a half ounce pour. The sale of wine by the glass, which is typically five ounces, and tastings of distilled spirits will be prohibited. Conditions of Approval: Part of staff’s evaluation of this amendment request included a review of the exiting conditions to ensure compliance. Staff’s site inspection on May 12, 2021 verified that the existing business is currently operation in compliance with CUP2019-0003. Several conditions of approval will be imposed to ensure that the addition of retail sales of distilled spirits and the larger wine tasting room will not become a public nuisance to the surrounding sensitive uses including the church and neighboring residential area. The primary use of the building will continue to be a warehousing and mail order business. The retail sales of wine and distilled spirits and wine tasting will be incidental. The retail and wine tasting area will be restricted to two small areas of the building totaling 1,359 square feet, which equates to approximately 12% of the total building area. Signs in the tasting room will be placed to educate patrons that it is unlawful for any person to drink wine outdoors on the premises and in public places (Condition #5, Data Sheet 1). Furthermore, the size of wine samples will be limited to ensure alcohol is not over-served or served to obviously intoxicated persons (Condition #11, Data Sheet 1). Additionally, to limit potential impacts to adjacent properties, music will not be allowed outside of the premises (Condition #17, Data Sheet 1). The exterior of the building shall continue to be illuminated to help ensure the safety of all persons around the business (Condition #22, Data Sheet 1). Parking Currently, there are 30 parking spaces located on the subject site. An existing recorded parking agreement allows the occupants of 907 South Magnolia to use five parking spaces at 320 West Chestnut Avenue. Therefore, the remaining 25 parking spaces will accommodate the parking requirements for the Wine of the Month Club as described in the Table 1.0 below. Table 1.0 Parking Required Parking Use Floor Area Requirement Spaces Warehouse and 5,357 sq.
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