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PC Min - 09/24/2013CITY OF CAMPBELL PLANNING COMMISSION MINUTES 7:30 P.M. The Planning Commission meeting of September 24, 2013, was called to order at 7:30 p.m., in the Council Chambers, 70 North First Street, Campbell, California by Chair Reynolds and the following proceedings were had, to wit: SEPTEMBER 24, 2013 CITY HALL COUNCIL CHAMBERS TUESDAY ROLL CALL Commissioners Present: Chair: Vice Chair: Commissioner: Commissioner: Commissioner: Commissioner: Commissioner: Philip C. Reynolds, Jr. Paul Resnikoff Cynthia L. Dodd Pam Finch Yvonne Kendall Michael L. Rich Bob Roseberry Commissioners Absent Staff Present: APPROVAL OF MINUTES None Community Development Director: Planning Manager: Associate Planner: City Attorney: Recording Secretary: Paul Kermoyan Aki Honda Snelling Daniel Fama William Seligmann Corinne Shinn Motion: Upon motion by Commissioner Finch, seconded by Commissioner Kendall, the Planning Commission minutes of the meeting of September 10, 2013, were approved. (7-0) COMMUNICATIONS There were no communications items. AGENDA MODIFICATIONS OR POSTPONEMENTS There were no agenda modifications or postponements. Campbell Planning Commission Minutes for September 24, 2013 Page 2 ORAL REQUESTS There were no oral requests. PUBLIC HEARINGS *** Chair Reynolds read Agenda Item No. 1 into the record as follows: 1. PLN2013-244 Public Hearing to consider the application of Liquid Bread for a Liquid Bread Conditional Use Permit (PLN2013-244) to allow late night operational hours and general alcohol sales in conjunction with an existing restaurant (Liquid Bread) on property located at 379 E. Campbell Avenue in the C-3 (Central Business District) Zoning District. Staff is recommending that the project be deemed Categorically exempt under CEQA. Planning Commission action final unless appealed in writing to the City Clerk within 10 calendar days. Project Planner: Daniel Fama, Associate Planner Mr. Daniel Fama, Associate Planner, presented the staff report as follows: • Reported that the applicant is seeking approval of a Conditional Use Permit to allow general alcohol within an existing restaurant. • Described the project site as consisting of 1,800 square feet on Campbell Avenue, between Central Avenue and the railroad tracks. It has La Pizzeria on one side and In Style shoes on the other. The zoning is C-3 and the General Plan land use designation is Central Commercial. The interior restaurant space is 1,400 square feet. • Added that this location has had other uses within the last few years that included Cypress restaurant and a couple of wine bars. In 2012, Liquid Bread established in this location with beer and wine sales and closing at 11 p.m. • Stated that they are now seeking a Type 47 ABC license to include general on-sale alcohol sales and incidental off-site sales; late hours to 1 a.m. daily open to the public and 2 a.m. operational hours to allow staff to close the restaurant. By 1 a.m., all patrons would be gone. Staff would be gone by 2 a.m. • Advised that no live entertainment is proposed with this application. • Said that the restaurant has 42 interior dining seats and a bar area with four seats. There is a front patio and a small rear patio that is enclosed within asix-foot fence. • Stated that this proposal conforms to the General Plan, Downtown Plan, the Downtown Alcohol Policy and the Zoning Ordinance. • Informed that some of the considerations are the hours of operation, incidental off- site sales and the issue of over-concentration. • Explained that the Downtown Alcohol Policy strongly recommends 12 a.m. closure to ensure that restaurants do not turn into bars in the later hours. • Provided an historic overview of Police calls for service for the period between 2010 and mid-2012. There is a general pattern of having a spike in the later hours, Campbell Planning Commission Minutes for September 24, 2013 Page 3 particularly between the 1 and 2 a.m. hour. The Police Department encourages compliance with the Downtown Alcohol Policy. • Added that there is concern that extending operations beyond midnight would be precedent setting and staff is recommending that the Commission stick to the 12 a.m. closing requirement that is consistent with the Downtown Alcohol Policy. • Said that ABC licensing allows "to go" beer and wine sales unless the City restricts such sales. • Said that there has been no history of issues with this use but if the of-site sales are of concern, the Planning Commission can restrict that ability. • Explained that the findings required include: the use is not a nuisance; it will not disturb the neighborhood; and it will not increase the demand on City services. • Said that at two different study sessions held on the issue of the Downtown Alcohol Policy, the Council made it clear that the Planning Commission should feel empowered to consider if and when the Downtown has reached a point of over- concentration of alcohol sales. • Reported that between 2005 and today, there has been an evident increase of establishments in the Downtown restaurants with hard alcohol. There were five in 2005 and there are now 15. This would be the 16th such alcohol license. • Recommended the adoption of a resolution approving a Conditional Use Permit with a 12 a.m. closing time. Chair Reynolds opened the Public Hearing for Agenda Item No. 1. Jordan Trigg, Applicant and Business Owner, Liquid Bread: • Said that every restaurant opened recently has alcohol sales with large bars. • Assured that they are not trying to go from being a restaurant into being a bar. This addition of general alcohol service will not diminish their service as a restaurant. They want to complement their menu with quality craft cocktails, aperitifs and digestifs. • Said that he likes to be able to go out somewhere nice at 1 a.m. to a quiet location. • Stated that he understands the concerns about setting precedent. Commissioner Kendall asked Mr. Trigg if he currently has a designated driver program at his restaurant. Jordan Trigg said that they have a yellow cab connection and there are always cabs available. Commissioner Kendall: • Asked what the ratio is currently between alcohol and food sales. • Asked what this ratio might be with the added hours. Jordan Trigg said that it is currently 65/35 and they don't see the ratio changing with the added hours. Commissioner Resnikoff asked Jordan Trigg if he has any plans for future live entertainment. Campbell Planning Commission Minutes for September 24, 2013 Page 4 Jordan Trigg replied no. He added that there is no room for it. Commissioner Kendall questioned the portable bar. Jordan Trigg explained that it was portable and self contained so it can be moved. He said that it's more of a service bar. Susan Blake, Resident on Third Street: • Reported that her home is just across the street from the Second Street parking lot. • Advised that spillover into the residential neighborhoods occurs from the Downtown with corresponding vandalism, noise and trash disposal. • Stressed the importance of balance between the needs of business and residents. • Recommended that the Commission honor the staff recommendation to stop alcohol service by 12 a.m. as called for under the Downtown Alcohol Policy. • Thanked the Commission for its consideration. Joe Hernandez, Resident on Peter Drive: • Said that he served on Council for four years and as a member of the Planning Commission for six years. • Stated that staff has clearly outlined the Alcohol Policy. • Said that midnight is a reasonable closing time. • Agreed that the issue of over-concentration falls within the purview of the Planning Commission. This includes general alcohol and beer and wine. • Said it is important to consider cumulative effect and not just one application in isolation. There is a risk of changing the character of our community. • Added that he likes this restaurant and wants to see it succeed but reminds that the Use Permit runs with the land and not a specific operator. That must be weighed. • Said that at a minimum he hopes the Commission follows the staff recommendation of midnight closure. • Suggested that it might be time to take a stronger look into issues of over- concentration and cumulative effect. Randy Meiser, DT Business Owner: • Identified himself as the owner of Sushi Confidential located in the Downtown. • Added that he also lives in Campbell. • Said that when he was opening Sushi Confidential, he had consulted with a lot of restaurant operators. He was told that a restaurant couldn't survive without a general liquor license. • Stated that he has a general liquor license but he doesn't see it drawing people on its own merits. Having it allows his establishment to offer diversity of choice to the patrons that come to eat there. • Said that this restaurant (Liquid Bread) is very small and focuses on beer. He doesn't see the addition of general alcohol sales as causing a dramatic change to the Downtown. Like in his restaurant, the ability to serve hard alcohol will provide Liquid Bread with just a little more opportunity to serve clients their preferred beverage with their meals. Campbell Planning Commission Minutes for September 24, 2013 Page 5 Chair Reynolds closed the Public Hearing for Agenda Item No. 1. Chair Reynolds: • Said he wanted to address this issue first rather than last as the Chair often does. • Stated that he really took the letter received from Barry Shilman to heart. It caused him to evaluate the Downtown uses and their impact on our City as a whole. • Reported that he took aride-along with Campbell Police on both a Friday and Saturday night. • Said that as a result of Mr. Shilman's recent letter, he went Downtown last Saturday at 9:30 p.m. As he arrived, there was a police action occurring in front of Sonoma Chicken Coop (not necessarily associated with that use but on the sidewalk in front of its location). The rest of the evening was fairly quiet though there were loud noises and people under various stages of intoxication. He noticed one person urinating in the parking lot at The Spot (he could not say if it was one of their customers or not). • Added that he saw one individual attempt to come out of Cardiff with alcohol in hand but was appropriately stopped by in-house security as required. He observed the closing at The Spot and said he could commend their security team for the professional and expeditious way they handled closing. • Said he drove to First Street at Campbell Avenue and came upon an extremely large group fight consisting of six to eight individuals. Per the Police Department he found out later there were 10. He called 9-1-1 for assistance. About 40 people were standing around observing the fight like it was entertainment. He saw a female in heels kicking another in the head. During this time, this intersection was blocked by taxies whose drivers were also watching the action. Campbell Police arrived within minutes and in six cars. Three cars stopped in front of EI Guapo's. People began running toward Sonoma Chicken Coop as Police arrived. He saw one belligerent man fighting with Police and he had to be subdued. It was not a pretty sight and not what he likes to see for our Downtown. • Suggested that a serious discussion occur tonight on the subject of over concentration. • Stated that there are issues in the Downtown that need to be dealt with. • Said that he wants Downtown businesses to be successful but this fight drew Police resources from all around the community leaving parts of it unprotected. • Said that he doesn't believe the Downtown needs more general alcohol sales. • Stated that he can't support this request after what he saw last Saturday night. • Added that it likely resulted from patrons from other establishments but these sorts of incidents impact the City to its borders and beyond. • Said that he'd like to offer alternatives. The Commission has the option to approve this project as requested; to follow the staff recommendation to allow operation to 12 a.m.; or extend/continue this item for further discussion. • Said that he didn't see any community outreach efforts made by the applicant and he always encourages applicants to do community outreach. He offered as an example the efforts undertaken by Regale Winery, who did a tremendous outreach effort to the community, the Downtown's surrounding neighborhoods and community groups. Outreach efforts such as that would go a long way. Campbell Planning Commission Minutes for September 24, 2013 Page 6 • Recounted that Sam Ramirez, an owner of two Downtown businesses, had wanted to put together a coalition of Downtown Campbell businesses with alcohol sales. This group would work together on solutions. • Reiterated that impacts from Downtown are not only impacting residents near the Downtown but rather residents from the entire City when resources are concentrated on dealing with the Downtown alcohol issues instead of throughout the City. • Stated that he thinks we have reached an over-concentration of alcohol in the Downtown. Commissioner Roseberry: • Said that everyone is well spoken and has done a good job relaying their ideas. • Agreed that this is an emotional issue. • Added that Liquid Bread is a good place with great food. It is not a bar. It's a thoughtful place that carefully considers the nuances of pairing food with beer. It's not a place you go to sling down on drinks. • Reminded that this is a continuing business. It is not abar-type of establishment • Stated that most of the problems Downtown stem from about 20 percent of the businesses serving alcohol there. • Said that Liquid Bread is already included in the calculation of alcohol-serving establishments operating in the Downtown. They offer good food. There is a good ratio between sales of food versus sales of alcohol. • Added that with the type of setup Liquid Bread has, they are looking for patrons with an appreciation for the nuances of the alcohol and want to offer craft cocktails, aperitifs and digestifs. Having a "to-go" license is seen a lot with craft beer places. He has no issue with that. • Said he was good with a 12 a.m. closing and is in favor of this request. It is a good plan. Commissioner Resnikoff: • Stated his agreement with Commissioner Roseberry. • Said that allowing general alcohol sales to 1 a.m. is inconsistent with the Downtown Alcohol Policy. The Commission has stuck with the provisions of this Policy since it was put in place and it works to the extent that it can. • Said that although the applicant says there is a need for late night places to go, Campbell has a lot and we don't need one open to 2 a.m. • Stated that if Council wants to change the Downtown Alcohol Policy, it should. Until that time, it should be honored. • Reminded that Campbell Police supports this request for service to midnight. • Asked staff if Campbell Police Department comments specifically on the issue of general alcohol service. Planner Daniel Fama explained that Campbell Police reviews all applications as a matter of course on issues of hours versus alcohol sales. Director Paul Kermoyan said that Campbell Police understood all aspects of this use and could support its operation to midnight. Campbell Planning Commission Minutes for September 24, 2013 Page 7 Commissioner Resnikoff: • Pointed out that the Commission held firm on hours with all recent requests including Opal, Chiano's, Tessora's, and Brown Chicken Brown Cow. • Said that the problems are more from the point of hours than this type of establishment but he'd like to hear more from the other Commissioners. Commissioner Finch: • Said that per the comments made by the owner of Sushi Confidential, this request will not result in more alcohol sales but rather the sale of different types of alcohol. The restaurant will have the same occupancy limits in their location. They will just be serving a different variety of alcohol. • Stated that she is confident this use will not increase incidents in the Downtown. • Agreed with Commissioner Resnikoff on the issue of operational hours. • Added that she does not think this is the time or place to discuss over concentration. This use is already in business. While she would like to see a discussion, it doesn't need to be now and in conjunction with this application. • Concluded that she supports this request with the appropriate recommendations. Commissioner Kendall: • Stated that whether beer, wine or hard alcohol, alcohol content is the same. • Said that Liquid Bread may provide a quieter place to unwind. • Stated that Liquid Bread is a fine eating establishment. The alcohol served there is to enhance food. The wait staff is very helpful. Adding general liquor will simply continue along the lines of diversification of this unique location. • Opined that this is not a location one goes to get "a buzz on". • Agreed with the closing time of 12 a.m. Commissioner Dodd: • Said that she hears the argument and suggested looking at where the City and Downtown is going. It is important that it be a safe environment for everyone. • Cautioned that we don't want to penalize this restaurant because of others. This location can draw a better crowd. She would rather encourage this business and do something else with other businesses. • Said that Liquid Bread draws a different crowd than the one Chair Reynolds saw fighting at the corner last Saturday night. Commissioner Rich: • Said that he dined at Liquid Bread last Saturday and actually saw the Police incident described by Chair Reynolds as well. • Advised that while at the restaurant, he spoke to the manager who said their focus is on local small businesses as far as what is included on their menu, including their craft beers. • Said that Commissioner Dodd was on point. This establishment caters to a different crowd. It's a nice establishment that is a boutique establishment with no plans for live music. Campbell Planning Commission Minutes for September 24, 2013 Page 8 • Stated that he appreciates having Liquid Bread in Downtown Campbell. Their clientele will be a plus for the Downtown. Commissioner Resnikoff: • Agreed that a discussion on over concentration is needed but it is important to be careful to penalize the right person. • Said that it is necessary to understand what is causing the problems. Is it the hours? Is it the general alcohol licensing? Where is the trouble resulting from? • Added that if it is specific establishments, it may be time to specifically look at individual Conditional Use Permits. • Reminded that conditions of approval are generally in place for a CUP that would allow a revocation if a specific establishment is causing problems. • Said that we should look at those specific locations that are known to be causing problems. • Reminded that the conditions allowing revocations at the discretion of the Community Development Director include issues such as number and types of calls for service; number of complaints received; number of arrests made; as well as number of complaints raised by ABC. • Reiterated the need to look specifically at places causing these problems. • Said he hesitates to hurt someone who may simply be coming before the Planning Commission at the wrong time or because of other uses. • Agreed that this issue needs to be agendized to be discussed fully to make sure the Police Department and the Community Development Director are fully empowered to go after those businesses causing problems. There are existing places that need to be looked at and dealt with. The issue is how to reign in what is actually causing problems and to make resolving those problems a priority. We must enforce conditions if they are not being met. Chair Reynolds: • Clarified that his comments are not intended to punish this particular applicant but rather to drive a discussion on over concentration. • Agreed that conditions allowing revocations have always been imposed. • Said he simply wanted to remind everyone that a strong focus is needed. • Cautioned that Use Permits are issued for locations and not business owners. • Assured that he agrees this is a good business owner with two wonderful establishments in the Downtown. However, if it were to be sold, the Downtown could suddenly have a nightmare on its hands. • Said that we could continue to approve applications based on a good owner and/or a good clientele but it is difficult determining which businesses are troubling. • Added that some patrons travel from one location to another. There is some level of self-accountability that must come into play. • Reiterated that he has no desire to punish a business but rather is trying to drive home to the Planning Commission that it must be determined where the line as far as expanding uses with alcohol sales may need to be drawn. • Said that there is a negative impact felt citywide. Campbell Planning Commission Minutes for September 24, 2013 Page 9 Commissioner Kendall: • Said that in the past she held an ABC license. Operators are expected to deny service to patrons that appear to be intoxicated. • Said that ABC can go into establishments and identify those locations that might continue to serve patrons that are already obviously intoxicated. • Encouraged tonight's applicant to establish in the future a designated driver program. Often the designated driver is provided non-alcoholic beverages at no charge. Commissioner Resnikoff: • Said that the existing problems in Downtown need to be look at but it is important to look at specific businesses. • Said he doesn't think it is impossible to determine which businesses are creating problems in the Downtown and thinks that the Police Department could give a good idea. • Stated that new businesses enhance the Downtown and many have alcohol sales. It is a benefit to get the right businesses in and use the powers already in place for compliance. • Said that bar hopping does happen and can be a problem. • Stated that the Commission does not have the necessary information available to make bold decisions on the Downtown right now. • .Reiterated that this business should not take the rap for what has been going on in the Downtown. It will be important to involve residents, business owners and others in a larger discussion. Director Paul Kermoyan: • Said that he appreciates the comments made. • Said he agrees with Chair Reynolds that the Use Permit runs with the land. • Said he can empathize with the concerns about over concentration. That issue is beginning to pick up steam. There is concern that Downtown may be losing too much retail to restaurants but Council recently decided not to initiate a Code Amendment to require issuance of Use Permits for any future proposed new restaurant uses. • Added that Council made it clear that the Planning Commission can make the call if it feels that a level of over-concentration has been reached. • Said that he would add this subject of over concentration to the Work Plan for the next calendar year. • Stated that there is a domino effect resulting in cumulative impacts. • Pointed out that Santana row closes down at midnight and many of their employees and patrons come to Downtown Campbell afterwards. • Agreed that this issue needs to be handled and is deserving of a study session. Commissioner Rich: • Said that while he doesn't personally drink, he also does not think alcohol itself is a bad thing. • Added that denying this application doesn't solve the existing problems in the Downtown. Campbell Planning Commission Minutes for September 24, 2013 Page 10 • Suggested looking at the bigger picture and evaluating the types of establishments being drawn to the Downtown. Commissioner Resnikoff: • Pointed out that what is now Chiano's was originally proposed by a different operator who wanted 1 a.m. alcohol service but was denied. • Suggested perhaps imposing a moratorium before any more new establishments with alcohol sales can come in to the Downtown. City Attorney William Seligmann said that Council could adopt an Interim Ordinance that would preclude approval of new permits while the City studies permanent amendments to its Code. Director Paul Kermoyan: • Agreed that recommendation could be suggested to Council. • Reminded that Campbell Police Department has reviewed this project and they are comfortable with it. • Agreed that the broad issue of over concentration is out there. The question may be whether an increase in restaurants equals an increase in Downtown crime. Staff does not have the answer tonight but we do have an applicant before the Planning Commission. Commissioner Resnikoff: • Suggested that a decision be made on tonight's request. • Added that the suggestion for a possible moratorium could be forwarded to Council to study and address the issue of over concentration. • Agreed it is important to look at this specific application on its own merits. Commissioner Roseberry: • Stated that a really great dialog has occurred here tonight. • Said that the Downtown Alcohol Policy is actually working and midnight closures are a good idea. • Said it must be determined how best to bring forward those places that are already here that may be problematic. It may be necessary to look at Conditional Use Permits as well as those locations that were "grandfathered" in. There must be some "trigger" mechanisms that call for action. • Pointed out that "bar hoppers" end up at the place that closes the latest. Chair Reynolds: • Advised that he had spoken with Captain Charly Adams yesterday and learned that no arrests were made as a result of the two incidents he saw that Saturday night. The incident in front of Sonoma was a domestic incident. The larger group fight included 10 individuals with two 9-1-1 calls being made. No one involved wanted to prosecute. • Said when the Police Department is asked for an opinion on a proposal for a new use in the Downtown, they are merely addressing the question of whether that use Campbell Planning Commission Minutes for September 24, 2013 Page 11 would over-tax their provision of policing services. They don't evaluate the possible issue as to whether over concentration may have been reached. Commissioner Resnikoff: • Said he takes comfort in the belief that the Police Department will say when they can't handle any more uses with alcohol service in the Downtown. • Added that if they ever say that, he will believe them. • Pointed out that the recent DT Wine Walk drew 900 people and there were no problems. Everyone loved the event including the businesses. • Said that alcohol is not always what causes problems. Motion: Upon motion of Commissioner Roseberry, seconded by Commissioner Finch, the Planning Commission adopted Resolution No. 4115 approving a Conditional Use Permit (PLN2013-244) to allow late night operational hours to 12 a.m. and general alcohol sales in conjunction with an existing restaurant (Liquid Bread) on property located at 379 E. Campbell Avenue, by the following roll call vote: AYES: Dodd, Finch, Kendall, Resnikoff, Roseberry and Rich NOES: Reynolds ABSENT: None ABSTAIN: None Chair Reynolds advised that this action is final unless appealed in writing to the City Clerk within 10 calendar days. He thanked the audience and Commission for a good discussion. *** REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR Director Paul Kermoyan said he had no additions to the written report ADJOURNMENT The Planning Commission meeting adjourned at .8:46 p.m. to the next Regular Planning Commission Mee ~ of October 8, 2013. SUBMITTED BY: on ne Shinn, Recording Secretary APPROVED BY: ATTEST: