TO:
Honorable Mayor Powell and Members of the City Council
THROUGH:
David N. Carmany, City Manager
FROM:
Richard Thompson, Community Development Director
Angelica Ochoa, Assistant Planner
SUBJECT: Title
Appeal of Planning Commission Decision to Deny a Use Permit Amendment for an Existing Restaurant's Request for On-Site Beer and Wine Service from 6:00AM to 2:00AM Daily for Hotdoggers, Inc. Located at 1605 North Sepulveda Boulevard.
A) CONDUCT PUBLIC HEARING
B) DISCUSS AND PROVIDE DIRECTION
C) UPHOLD PLANNING COMMISSION DECISION
Body
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RECOMMENDATION: Staff recommends that the City Council uphold the Planning Commission's decision to deny the Use Permit amendment for on-site beer and wine service from 6am to 2am daily at the existing 24-hour restaurant.
FISCAL IMPLICATIONS:
There are no fiscal implications associated with the recommended action.
BACKGROUND:
The applicant, HotDoggers, Inc., an existing restaurant at 1605 N. Sepulveda Boulevard, applied for a Use Permit Amendment on June 5, 2012 to allow beer and wine sales and consumption from 6am to 2 am daily. Also, the applicant would like to continue to operate his restaurant 24 hours each day.
Previous applications
Originally, the applicant applied for a Use Permit on December 6, 2010 to allow outdoor dining and to request a new alcohol license for on-site sale and consumption of beer and wine (Type 41-On-Sale Beer and Wine for Public Premises). The existing restaurant had no use permit or alcohol license and was allowed to operate as a legal non-conforming use, without alcohol, outdoor dining or no significant change of use.
The Planning Commission held public hearings on March 23 and April 27, 2011, and approved the project with conditions (Resolution No. PC 11-06). The applicant appealed the Planning Commission's decision to the City Council to request changes such as hours of operation for the restaurant, patio, beer and wine service and other issues. On July 5, 2011, the City Council approved the project with additional conditions (Resolution No. 6322, Attachment 1).
Specifically, the City Council Resolution allows hours of operation for the restaurant with beer and wine sales from 7 a.m. to 10 p.m. Sunday through Thursday and 7 a.m. to 12 a.m. Friday and Saturday. Also, the new proposed outdoor dining patio was required to be an enclosed room and specific noise criteria had to be met.
In addition to a Use Permit from the City, the applicant must have a license from the State Department of Alcohol Beverage Control (ABC) to sell and serve beer and wine. During the ABC process, a protest was filed by a resident regarding parking and traffic issues. This ABC license is on hold and the State will make a final decision once the subject Use Permit application is completed.
Existing Restaurant
On July 8, 2011, a building permit was issued for improvements to the existing building only, with no new outdoor patio or dining addition and Hotdoggers opened for business in March 2012. A storage room addition is currently in plan check and can be approved administratively. Since Hotdoggers has no beer and wine service and did not build the rear dining room addition, Resolution No. 6322 is currently not applicable to the project site and the restaurant can continue to operate as a legal non-conforming use without a Use Permit. If a new restaurant moves into the existing building with no expansion and no alcohol, no Use Permit or other discretionary application is required, and the use would be approved administratively.
Use Permit Amendment Application
In June 2012, the applicant requested a change from the current conditions in Resolution No. 6322 to increase operating hours and beer and wine service which requires a Use Permit Amendment per Section 10.84.100.A. of the Municipal Code. Specifically, the applicant wishes to continue the 24 hour operation of the restaurant with beer and wine hours from 6:00 am to 2:00 am daily and remove the rear dining room addition.
Planning Commission Meeting
The Planning Commission, at its regular meeting of July 25, 2012, conducted a public hearing and discussed the project (Attachment 2). Some of the issues that were raised at the Planning Commission meeting included implementation of the current Resolution No. 6322, approved operating hours in conjunction with alcohol service, 24 hour operation of other businesses that sell alcohol in town, noise during late hours, granting additional hours and the impact of the future use of the site adjacent to a residential neighborhood.
DISCUSSION:
The Planning Commission heard public testimony at the meeting of July 25, 2012, discussed the item and denied (3:1) the applicant's appeal to amend Resolution No. 6322. The following summarizes the issues that were discussed:
Alcohol Service Hours
The approved hours of operation as well as beer and wine service hours are 7am to 10pm Sunday to Thursday and 7am to Midnight Friday to Saturday. Also, a rear dining room addition was approved. Since the applicant has not implemented the approval, the conditions are not applicable at this time. If not implemented by July 5, 2013, Resolution No. 6322 will expire. The Planning Commission discussed this issue and felt that the hours of operation and beer and wine service hours approved in the original Resolution by the City Council were appropriate and reasonable for the site. The City Council approved these conditions based on a balance between residential concerns and the applicant's business needs. The majority of the Planning Commission felt that the applicant should implement the conditions of his current Use Permit before requesting any changes. The Commission also felt that approving increased operating hours and beer and wine service would impact the surrounding residents. One of the Commissioners stated that the Planning Commission should consider increasing the operating hours in order for the business to be successful and to serve late night customers.
The neighbors also felt that allowing later hours would increase the noise, parking and traffic in the neighborhood, decrease safety of the neighborhood, and increase traffic access onto Oak Avenue after 10pm. Overall, since the restaurant was approved as a family-style restaurant, not a bar, the additional hours were not supported. The neighbors felt that any changes should not be considered until the current approval is implemented.
24-Hour Businesses
The Planning Commission discussed other 24-hour businesses in the City, since the applicant was requesting to continue 24 hour operation of the restaurant. They stated that only the Kettle has 24 hour approved operation as a restaurant with alcohol service. No other restaurant with alcohol has approval for 24 hour operation per the attached list of businesses in the City (Attachment 3). There are other businesses, such as Walgreens, the Belamar Hotel, and Chevron Gas Station, etc. that are approved as 24 hour operation per their Use Permit, but they are different types of uses that sell alcohol for off-site, not on-site consumption. Any future use of the site could also operate 24 hours a day, which was a concern. For these reasons, the Planning Commission could not support the applicant's request to approve the subject restaurant for 24 hour operation with alcohol.
Applicant's Appeal (Attachment 4)
On July 27, 2012, the applicant submitted an appeal of the Planning Commission's decision. The applicant would like the City Council to consider the request to continue 24 hour operation, with beer and wine service from 6am to 2 am daily. The proposed beer and wine hours are the maximum hours allowed by the ABC. The applicant states that the subject restaurant is not a bar and therefore should not be evaluated as a bar. The applicant does not feel that the increased hours will cause an increase in traffic and noise. He felt that the approved limited hours of operation for beer and wine service were in conjunction with the outdoor patio. Since the outdoor patio will not be built, the applicant feels that his subject request should be re-evaluated based on the restaurant only. The City Council approval required the proposed outdoor patio to instead be constructed as an enclosed dining room.
Public Input (Attachment 5)
Staff received the attached comment regarding the subject project from a resident. The main issue of concern from the neighbors is that the subject proposal would impact traffic, parking, noise and safety to the surrounding residential neighborhood. Other neighbors comments are included in the attachments for the Planning Commission meeting on July 25, 2012.
Department Comments (Attachment 6)
The subject application was distributed to the Police Department for their review and comments. The Police Department Detectives and Traffic Divisions had objections to the extension of beer and wine service and operating hours and the impact on parking and traffic on Sepulveda Boulevard and the adjacent residential area. The Police Department is recommending to keep the current approved hours of operation and beer and wine service hours per Resolution No. 6322.
CONCLUSION:
In conclusion, staff is recommending that the City Council uphold and support the Planning Commission decision's to deny the Use Permit Amendment, thereby denying the applicant's subject appeal.
Attachments:
1. Resolution No. 6322
2. PC Minutes, staff report and related attachments for July 25, 2012
3. Citywide List of Restaurants and Bars with On-Sale Alcohol Service
4. Applicant's Appeal dated July 27, 2012
5. Public Input dated August 19, 2012
6. Department Comments
7. Sound Report - 07/24/2012