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HomeMy WebLinkAboutPC Resolution 11-17 - (1332 Hermosa Av, Blue 32)RESOLUTION P.C. 11-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DENYING A CONDITIONAL USE PERMIT AMENDMENT REQUESTING TO EXTEND HOURS OF OPERATION FROM 12:00 MIDNIGHT CLOSING DAILY TO 1:00 A.M. CLOSING FRIDAY TO SUNDAY AND VARIOUS HOLIDAYS; TO EXTEND LIVE ENTERTAINMENT HOURS FROM 11:30 P.M. CLOSING DAILY TO 12:30 A.M. FRIDAY TO SUNDAY AND VARIOUS HOLIDAYS; TO REMOVE PROHIBITIONS ON CUSTOMER DANCING AND ADMISSION CHARGES; TO MODIFY THE FLOOR PLAN; AND TO MODIFY FOOD SALES REPORTING REQUIREMENTS IN CONJUNCTION WITH AN EXISTING RESTAURANT 1332 HERMOSA AVENUE, KNOWN AS "BLUE 32", AT 1332 HERMOSA AVENUE, LEGALLY DESCRIBED AS LOTS 10, 11 AND 12, BLOCK 34, FIRST ADDITION TO HERMOSA BEACH TRACT, CITY OF HERMOSA BEACH. The Planning Commission of the City of Hermosa Beach does hereby resolve and order as follows: Section 1. An application was filed by Knight Restaurant Group, LLC seeking approval of the following changes to a Conditional Use Permit: Condition 3: Eliminate the requirement that a CPA audit summaries and the requirement that summaries be submitted quarterly to the Police Chief, unless requested by the Police Chief. Condition 4: Delete the prohibition on dancing. Condition 5: Delete the prohibition on admission charges. Condition 8: Extend hours of operation from 7:00 a.m.— 12:00 midnight daily close and 1:00 a.m. on New Years Eve, to 7:00 a.m.— 12:00 midnight Sunday through Wednesday, and 7:00 a.m. 1:00 a.m. Friday — Sunday, Federal and State Holidays, New Year's Eve, Cinco De Mayo; President's Day/ St. Patrick's Day/ Memorial Day/4th of July/Labor Day weekends; Halloween, Thanksgiving Eve, Christmas Eve. Modify hours for live entertainment from 7:00 p.m.— 11:30 p.m. Thursday — Sunday, holidays, Cinco de Mayo, St. Patrick's Day, to 11 a.m. until 30 minutes prior to closing time. Condition 9: Modify floor plan per the plan submitted October 10, 2011 to increase seating from 88 to 119 seats with an increase in occupant load, bar type seating would increase from 16 to 26 seats, and other seating would increase from 72 to 93 seats. Section 2. The Planning Commission conducted a duly noticed public hearing to consider the application for a Conditional Use Permit Amendment 11-6 on October 18, 2011 at which time testimony and evidence, both oral and written, was presented to and considered by the Planning Commission. 1 Section 3. Based on the testimony and evidence received, the Planning Commission makes the following factual findings: L The site is located within the downtown area of the City of Hermosa Beach and is zoned C- 2, Restricted Commercial, which allows restaurants with on -sale general alcoholic beverages and live entertainment with approval of a Conditional Use Permit. 2. The existing restaurant with on -sale general alcohol and live entertainment is governed by a Conditional Use Permit issued in 2008 pursuant to City Council Resolution 08-6617, which incorporates restricted hours and conditions to reduce impacts from the operation of the business alone and cumulatively. Blue 32 was the subject of revocation/modification hearings in 2008 due to excessive calls for police services, overcrowding, excessive noise and disturbances to the surrounding area. Some of the problems were attributed to poor management, staffing problems and supervisory techniques that allowed the business to function as a nightclub rather than a restaurant. Planning Commission Resolution 08-13 imposed an earlier closing time, prohibition on dancing and restrictions on live entertainment (including a prohibition on charging on entertaim-nent among other restrictions) to ensure the establishment ftmctioned in a manner more consistent with the operation of a restaurant than a nightclub, and that nuisance and safety concerns were addressed and nearby residents and commercial establishments were not adversely affected. On September 23, 2008 the City Council affirmed the Planning Commission findings per City Council Resolution 08-6617 which currently governs the use. 3. In 2011, the Planning Commission considered whether to set a hearing to modify or revoke the CUP for Blue 32 on the basis that the business was in violation of CUP Condition 20 because it had operated without a valid ABC license between December 2010 and April 2011 when the owner was cited by the ABC for operating without an ABC license and the business was closed. On June 21, 2011 the Commission determined to take no action because it appeared the business was unaware that the ABC license had been sold and the business was now closed. The prior ABC license, which has been sold to another location, restricted sales, service and consumption to 7:00 a.m. to 1:30 a.m. Friday — Saturday and until 12:00 midnight Sunday — Thursday. 4. The immediate downtown area (Pier Plaza and Hermosa Avenue) contains approximately 26 on -sale restaurants and bar type establishments. The larger downtown area (Pier Avenue, Hermosa Avenue and Pier Plaza) contains approximately 37 on -sale establishments open after 10:00 p.m., of which approx. 12 provide on -sale beer and wine and 25 provide general alcohol. 5. Blue 32 exhibited an 'average' record of police enforcement activity since CUP modification in 2008. However, the summaries of food to alcohol ratio sales required to be submitted to the Police Chief on a quarterly basis per Condition 3 of the CUP since September 2008 have not been submitted. 6. The proposed floor plan dated October 10, 2011 proposes to modify layout and type of seating resulting in a probable increase in occupant load; the applicant's architect calculates this as an increase from 126 to 153; however the City Building Division and Fire Marshall have preliminarily calculated occupant load at 136 with the potential for an additional 4 to 6 W people with minor modifications to the floor plan. 7. The site is located within a commercial area on Hermosa Avenue adjacent to the Underground Pub, Pedone's Pizza to the North, The Shore to the south, and Beach Market to the west. The closest residential uses are located north of 14t" Street. Section 4. Based on the foregoing factual findings the Planning Commission makes the following findings pertaining to the application for a Conditional Use Permit Amendment pursuant to Subsections A, D, E, H, I and J of 17.40.020 and Subsection A of 17.40.080 of the Municipal Code, by potentially intensifying alcohol use within an area with over concentration of on -sale establishments, creating a nightclub atmosphere, creating conflicts with residential uses in the vicinity, causing noise and disturbances, and demanding increased police services. 1. The requested amendments to extend hours of operation and live entertainment, charge for admission, allow dancing and add bar type seating increase the potential for the establishment to focus on 'nightclub' activity contrary to the primary restaurant use. Live entertainment is allowed strictly incidental to dining and allowing dancing would further deviate from the focus on dining and contribute to a nightclub environment which has the potential for adverse secondary impacts. 2. The requested hours will incrementally increase the potential for increased numbers of people, including intoxicated persons, on the Plaza and in the downtown in the late evening, thereby increasing the potential for noise and behavioral problems, and impacts to residential and commercial uses. 3. The concentration of establishments that assume the character of a bar or nightclub, notwithstanding that some of those establishments are permitted as restaurants, requires increased police presence, which increases costs to the City. 4. Extending hours on holidays adds to the significant number of on -sale establishments which are allowed later hours on these days, with the potential effects identified above. 5. While rigorous managerial and enforcement -related conditions were incorporated into the CUP during the modification process in 2008, adherence to those conditions may not fully mitigate the conditions identified above if hours are extended, and admission charges to support live entertainment and dancing are allowed. 6. It is inappropriate for the applicant to have the ability to charge admission because the primary use is a restaurant and live entertainment is purely incidental, as specifically stated in City Council Resolution 08-6617, and no mitigating conditions are identified. 7. Reinstatement of hours rescinded during a CUP modification hearing is not a development right. Regardless that three years have elapsed since the CUP was modified in 2008, retaining the current restrictions on hours and operation is arguably necessary to prevent or reduce secondary land use impacts; such controls contribute to the safer and more orderly environment in the downtown area. During this period, the business was closed due to an enforcement action by the ABC to cease operating without an ABC license and the business has not complied with the requirement to submit summaries of food to alcohol sales reports to the Policy Chief on a quarterly basis. These lapses may be indicative of lack of oversight, however, management is an important component of the ability to control adverse impacts. 8. Approval of the proposal to extend hours, allow dancing and increase occupant load conflicts are inconsistent with the City's general policy of not increasing intensification of on -sale establishments in the downtown, although the City Council has not adopted a definitive policy on this issue or the specific issue of reinstatement of hours in a modified CUP. The proposal conflicts with policy under consideration by the Planning Commission, which states that since 2008 the City has taken significant steps to reduce the negative impacts in the area, by reducing operating hours of some restaurants pursuant to enforcement of their CUPs, increasing police presence, and rejecting applications that would intensify late night, alcohol serving establishments in the area. The Police Department's records show that the City's increased enforcement efforts and staggered closing times are beginning to reduce crime and disturbances in the area and facilitate a more orderly and safe environment as patrons leave the alcohol serving establishments in the late evening. The City Council desires to continue to maintain the trend of reduced impacts from late -night, alcohol serving establishments and to prevent another escalation of negative impacts caused by these establishments. Section 5. Pursuant to Section 15270 of the 'Guidelines for Implementation of the California Environmental Quality Act (CEQA)', Title 14 of the California Code of Regulations, the project is not subject to CEQA because CEQA does not apply to projects which a public agency rejects or disapproves. Section 6. Based on the foregoing, the Planning Commission hereby denies the request for Conditional Use Permit Amendment 11-6. Section 7. Pursuant to the Code of Civil Procedure Section 1094.6, any legal challenge to the decision of the Planning Commission, after a formal appeal to the City Council, must be made within 90 days after the final decision by the City Council. VOTE: AYES: Comms.Hoffman,Perrotti,Pizer,Chmn.Darey NOES: None ABSTAIN: None ABSENT: Comm.Allen CERTIFICATION I hereby certify the foregoing Resolution P.C. No. 11-17 is a true and complete record of the action taken by the Planning Commission of the City of Hermosa Beach, California at its regular meeting of October 18, 2011. j Shawn Darcy, Chairman° October 18 2011 Date Ken e son, ecretary M