TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Carrie Tai, AICP, Community Development Director
Talyn Mirzakhanian, Planning Manager
Austin Chavira, Assistant Planner
SUBJECT:Title
Public Hearing De Novo to Consider a Proposed Use Permit Amendment to Allow an Expansion of an Existing 4,180 Square-Foot “Eating and Drinking Establishments” Use (Arthur J restaurant) with Full Alcohol Service, Into an Adjacent Vacant 1,141 Square-Foot Tenant Space (Formerly a Dry Cleaner) Within an Existing Commercial Building at 901 and 903 Manhattan Avenue in the Downtown Commercial (CD) Zoning District (Simms Restaurants Group/Arthur J) (Community Development Director Tai).
(Estimated Time: 1 Hr. 30 Mins.)
A) CONDUCT PUBLIC HEARING DE NOVO
B) DIRECT STAFF TO DRAFT A RESOLUTION MAKING AN ENVIRONMENTAL DETERMINATION OF CATEGORICAL EXEMPTION IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) AND CONDITIONALLY APPROVING THE USE PERMIT AMENDMENT FOR CONSIDERATION AT A SUBSEQUENT COUNCIL MEETING
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Recommended Action
RECOMMENDATION:
Staff recommends that after conducting a public hearing de novo, the City Council direct staff to draft a resolution making an environmental determination of exemption under CEQA and approving the Use Permit Amendment subject to conditions.
FISCAL IMPLICATIONS:
Costs associated with the processing of the Use Permit Amendment are paid by the applicant; and costs associated with the appeal of the Planning Commission’s decision are paid by the appellant. Therefore, there are no fiscal impacts to the City associated with this request.
BACKGROUND:
On July 1, 2021, the Community Development Department received an application requesting an amendment to an existing Use Permit to allow for the expansion of an “Eating and Drinking Establishments” use with on-site consumption of beer, wine, and spirits (full alcohol service) located at 903 Manhattan Avenue, into the adjacent vacant commercial space (formerly Door to Door Cleaners - 901 Manhattan Avenue). The existing Arthur J restaurant has been in operation since 2015, however, a restaurant use has been on the site since in 1984. On January 4, 1984, the City Council adopted Resolution No. 4108 (see attachment), establishing a restaurant with an on-site general alcohol license and live entertainment within an existing commercial building. Arthur J currently operates pursuant to Council Resolution No. 4108. Other approvals governing the site are limited to an encroachment permit and agreement dated 1971 that permits the existing southerly concrete building wall projection into a portion of the Ninth Street walk-street encroachment area.
The subject property is located in the Downtown Commercial (CD) zoning district in Area District III, with a General Plan land use designation of Downtown Commercial. The land use and zoning designations of surrounding properties include Downtown Commercial (CD) and Residential, High-Density (RH). Accordingly, neighboring properties are occupied with the following uses: retail, food and beverage sales (north), high-density residential, personal improvement services, offices, business and professional (south), retail sales and eating and drinking establishment (east), and multi-family residential (west). The Vicinity Map (see attached) demonstrates the site configuration and surrounding uses.
The existing site is a single, 5,387 square-foot rectangular parcel, and is occupied by a 5,321 square-foot commercial building with two tenant spaces (901 and 903 Manhattan Avenue). The existing restaurant (Arthur J) at 903 Manhattan Avenue is the primary tenant, occupying 4,180 square-feet of space within the main level and basement of the existing building. The southerly tenant space, 901 Manhattan Avenue, is 1,141 square feet in size and was previously occupied by a dry cleaner (personal service use). The site maintains four off-street parking spaces along the north portion of the lot, which are accessed directly from Ninth Place. The existing trash enclosure (located within the first floor of the building along Ninth Place) is not currently utilized for refuse, rather trash is stored in one stand-alone roll-off dumpster for restaurant waste disposal and one stand-alone roll-off dumpster for recycled material disposal, located along the west property line wall, immediately adjacent to the Ninth Place.
On August 10, 2022, the Planning Commission unanimously and conditionally approved the subject Use Permit Amendment request. On August 22, 2022, Donald McPherson appealed the Planning Commission’s decision on the following bases: 1) “the City unlawfully claims the project exempt from a coastal permit appealable to the Coastal Commission”; 2) “the increase in occupancy from the expansion will increase parking demand by an estimated 19 spaces, thereby impacting coastal access”; 3) “30% increase in eating and drinking area requires environmental review”; and 4) “Arthur J appears to commit a misdemeanor each day with eating and drinking encroachments in the public right of way that increase parking demand, thereby impacting coastal access” (see attachment).
The Municipal Code provides that appeals and reviews of Planning Commission quasi-judicial decisions be conducted as a public hearing de novo. De novo means that the City Council must take a “fresh look” at all of the evidence presented at its public hearing, and after the public hearing is closed, base its decision on the evidence presented at the public hearing before the City Council.
DISCUSSION:
The applicant, Simms Restaurant Group, is requesting an amendment to the existing Use Permit governing the commercial space at 903 Manhattan Avenue, to allow for the expansion of an “Eating and Drinking Establishments” use with full alcohol service, into the adjacent vacant 1,141 square-foot commercial space (formerly Door to Door Cleaners - 901 Manhattan Avenue). Pursuant to the City’s Local Coastal Program (LCP) Section A.16.020, a request for the establishment of an “Eating and Drinking Establishments” use in the CD zoning district requires discretionary approval of a Use Permit. Additionally, pursuant to Section A.16.020(L), a Use Permit or Use Permit Amendment is required for any new alcohol license or modification to an existing alcohol license. Therefore, the proposal to expand the existing “Eating and Drinking Establishments” use with full alcohol service into the tenant space at 901 Manhattan Avenue requires an amendment to existing Use Permit (as memorialized in City Council Resolution No. 4108), which currently governs only the space at 903 Manhattan Avenue.
The proposed restaurant expansion will accommodate private events with up to 42 guests in two dining rooms, partitioned by built-in manifold doors, and each having private entrances from the adjacent sidewalk abutting Manhattan Avenue. As indicated on the proposed floor plans (see attachment), food and beverages will be served into the expanded dining areas through a pass-through window from the existing kitchen serving the restaurant. A wait staff of up to five individuals will service the private dining area. Staff will have access to a service area, immediately adjacent to the pass-through window, as well as two, smaller service areas located near the entry doors. Additionally, the proposed expansions consist of constructing a restroom that is compliant with the Americans with Disabilities Act (ADA) and a storage room. The existing kitchen area will not be modified as part of this project scope.
Current operating hours at the existing restaurant are 4:00 p.m. to 12:00 a.m. Sunday through Thursday, and 4:00 p.m. to 1:00 a.m. Friday and Saturday. City Council Resolution No. 4108 strictly limits live entertainment to no later than 12:00 a.m. Sunday through Thursday and 1:00 a.m. Friday and Saturday. The proposed hours of operation at 901 Manhattan Avenue would coincide with the hours of operation of the existing restaurant.
The applicant proposes façade improvements. The exterior façade alterations aim to extend the existing Arthur J storefront aesthetics onto the expanded exterior space. The proposed façade materials consists of wood cladding, brick veneer and black tile. No modifications of the existing building envelope are proposed.
Additionally, the applicant proposes to make improvements to the trash enclosure located within the lower level of the commercial building. Future trash enclosure modifications will be regulated by Public Works. The proposed trash enclosure will continue to be accessible from Ninth Place.
The City’s LCP Section A.84.010 provides that, “[u]se permits are required for use classifications typically having unusual … operating characteristics requiring special consideration so that they may be designed, located, and operated compatibly with uses on adjoining properties and in the surrounding area.” Eating and Drinking Establishments with full alcohol service in the CD zone constitute a use with unusual operating characteristics that necessitate special consideration. Furthermore, pursuant to the City’s LCP Section A.84.060(A), an application for a Use Permit shall be approved by the decision-making authority only if all of the required findings below can be made:
1. The proposed location of the site is in accord with the objectives of this title and the purposes of the district in which the site is located.
2. The proposed location of the use and the proposed conditions under which it would be operated or maintained will be consistent with the General Plan; will not be detrimental to the public health, safety, or welfare of persons residing or working on the proposed project site or in or adjacent to the neighborhood of such use; and will not be detrimental to properties or improvements in the vicinity or to the general welfare of the City.
3. The proposed use will comply with the provisions of the City’s Planning and Zoning Title, including any specific conditions required for the proposed use in the district in which it would be located.
4. The proposed use will not adversely impact or be adversely impacted by nearby properties.
As demonstrated in the discussion herein, staff evaluated the request in light of the required Use Permit findings and concludes that there is sufficient evidence that all four findings can be made.
First, the expansion of the “Eating and Drinking Establishment” use with full alcohol service is proposed on a site located in the City’s CD zoning district, which allows “Eating and Drinking Establishments” and on-site alcohol sales contingent upon the approval of Use Permit. The City’s LCP’s stated purpose for the CD zone is to provide opportunities for residential, commercial, public and semipublic uses that are appropriate for the downtown area. This district is intended to accommodate a broad range of community businesses and to serve beach visitors. The proposed expansion of the existing Arthur J restaurant and alcohol sales is consistent with the commercial land use regulations in LCP Section A.16.020 and provides a commercial service for the community.
Second, the proposed expansion of the “Eating and Drinking Establishment” use with full alcohol service is consistent with the General Plan’s Downtown Commercial land use designation for the subject property. The General Plan encourages a “vibrant downtown” that offers “services and activities for residents and visitors”, and Arthur J is part of the downtown commercial mix of businesses that help create a dynamic and interesting Downtown. Arthur J’s expansion will only enhance the services provided to residents and visitors. The project proposes a conditionally permitted use, fully contained within an existing commercial building. The proposed project is compatible with neighboring uses, as neighboring lots to the north, south and east are also developed with commercial uses. The project also offers a service to surrounding residents. Furthermore, the project was reviewed by various City divisions and Departments, who raised no concerns or objections. Therefore, the project will not be detrimental to the public health, safety or welfare of persons working on the site or in or adjacent to the neighborhood of such use, and will not be detrimental to properties or improvements in the vicinity or to the general welfare of the City.
Third, the proposed expansion of the Eating and Drinking Establishment use with full alcohol service is permitted with the approval of a Use Permit (or corresponding amendment) within the subject property’s zoning district (CD) per LCP Section A.16.020. If the Use Permit Amendment is approved, Arthur J’s expansion into the space at 901 Manhattan Avenue will be in compliance with all provisions of Title A of the LCP. Furthermore, operating characteristics and recommended conditions of approval (see attachment) serve to minimize the potential for adverse impacts. Additionally, no additional square-footage is proposed beyond the existing building footprint as a part of this project.
Fourth, the proposed use expansion, as conditioned, will not adversely impact ‒ nor be adversely impacted by ‒ nearby properties. Arthur J has been operating at their current location since January 2015, serving alcohol (beer, wine, and liquor) in conjunction with food service. The proposed expansion is located in the commercial portion of Downtown Manhattan Beach, with some of the surrounding businesses having similar operating characteristics. Residential zoning and development is located west of the building. Accordingly, any potential impacts arising from the expanded space are minimized by conditions of approval recommended by staff. The expansion will not create demands exceeding the capacity of public services and facilities, considering that the former use at 901 Manhattan Avenue was also commercial in nature and no new square-footage is proposed as part of this project. Therefore, the operating characteristics of the proposed use, in conjunction with the conditions of approval, minimize the potential for any adverse impacts to surrounding uses.
Planning Commission
At the August 10, 2022, Planning Commission meeting, staff presented the Use Permit Amendment request with a recommendation of approval. The public hearing was opened, and the applicant’s representative, Mike Simms, spoke in favor of the project. One member of the public, Mr. Jim Burton, spoke in opposition to the project. He expressed concern about the dining decks in the public street and the impacts related to restaurant deliveries and increase of visitors to the downtown commercial and adjacent residential areas. No further oral public comment was received.
After discussion, the Planning Commission adopted a resolution conditionally approving the applicant’s Use Permit Amendment request and adopting the associated environmental determination (see attached). The Planning Commission meeting minutes are attached for reference.
Appeal
Donald McPherson submitted his appeal on August 22, 2022, before the appeal period lapsed. In a letter to the City Council, the appellant identifies the reasons for his appeal (see attachment). Below, staff provides responses to the specific arguments on which the appellant has based his appeal, with the bold and italicized text taken directly from the appellant’s written materials submitted to the City Council.
“The City’s unlawfully claims the project exempt from a coastal permit appealable to the Coastal Commission…”
A Notice of Exemption from the requirement for a Coastal Development Permit was filed by staff for the project with the California Coastal Commission in April 2022 (see attachment). The notice outlined the bases on which a determination was made that the project qualifies for an exemption pursuant to Chapter A.96.050(B) of the City’s LCP, Exemptions/Categorical Exclusions - Existing Structures Other than Single-Family Residences or Public Works Facilities. The Coastal Commission concurred with, and did not appeal the City’s determination.
“The increase in occupancy from the expansion will increase parking demand…”
Section A.64.050 of the City’s LCP states that, in the City’s CD zoning district, if the floor area factor of a site is less than 1:1, which is the case for the subject site, no parking is required for the site. Floor area factor is defined as the ratio of square-footage of buildable floor area to lot area. In the case of the subject site, with a total, existing buildable floor area of 5,321 square feet and a lot size of 5,387 square feet, the floor area factor of the site is less than 1:1 and no parking is required. Furthermore, the proposed restaurant expansion would not increase the buildable floor area on the site, thus maintaining a floor area factor below 1:1, and not triggering a requirement for parking spaces. Nevertheless, the proposal maintains the four existing on-site parking spaces. Accordingly, the proposed expansion of an “Eating and Drinking Establishment” use into an existing, adjacent commercial space complies with parking requirements.
“30% increase in eating and drinking area requires environmental review”.
The City has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 3 categorical exemption pursuant to Section 15303 (New Construction or Conversion of Small Structures) of the State CEQA Guidelines, which exempts the conversion of existing small structures from one use to another, and there are no features that distinguish this project from others in the exempt class; therefore, there are no unusual circumstances. Thus, no further environmental review is necessary.
“Arthur J appears to commit a misdemeanor each day with eating and drinking encroachments in the public right of way that increase parking demand thereby impacting coastal access”.
The temporary use of the restaurant’s outdoor dining deck located within the public right-of-way is not part of the applicant’s proposed Use Permit amendment request. Use Permits strictly apply to private property, as such, the scope of the application is limited to expansion of use within the existing commercial building on private property. Therefore, this claim is irrelevant to the application under consideration by the City Council. Furthermore, the operation of the subject establishment’s temporary outdoor dining deck and the associated alcohol service are in compliance with the approved encroachment permit, issued pursuant to City’s Emergency Order No. 10 and all subsequent amendments thereof, including but not limited to Emergency Orders No. 28 and 29, authorizing temporary use of the public right-of-way for food and full alcohol service for the duration of the COVID-19 State of Emergency.
CONCLUSION:
Staff evaluated the appeal of the Use Permit Amendment, as presented by the appellant, and found no basis for granting the appeal. Furthermore, as demonstrated above, the Use Permit findings can be made in support of approval. Accordingly, staff recommends that the City Council direct staff to draft a resolution making an environmental determination of exemption under CEQA and approving the Use Permit Amendment subject to conditions.
PUBLIC OUTREACH:
A public notice for the project’s October 18, 2022 City Council public hearing was published in the Beach Reporter, mailed to surrounding property owners, and posted online on Thursday, October 6, 2022. The agenda posted on Wednesday, October 12, 2022, included information on how members of the public could comment via eComment, email, and voicemail prior to the meeting. The public notice also informed that the public that anyone can provide live testimony by Zoom or in person, and instructions were included on the City website as well as the meeting agenda.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 3 categorical exemption pursuant to Section 15303 (New Construction or Conversion of Small Structures) of the State CEQA Guidelines, which exempts the conversion of existing small structures from one use to another, and there are no features that distinguish this project from others in the exempt class; therefore, there are no unusual circumstances. Thus, no further environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Vicinity Map
2. Planning Commission Resolution No. 22-08
3. Planning Commission Minutes (August 10, 2022)
4. Planning Commission Report and Attachments (August 10, 2022) (Web-Link Provided)
5. Use Permit Application (Plans)
6. Appellant Materials (Don McPherson)
7. Recommended Conditions of Approval
8. Notice of Exemption for Coastal Development Permit
9. PowerPoint Presentation