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PC Min - 05/13/2014CITY OF CAMPBELL PLANNING COMMISSION MINUTES 7:30 P.M. TUESDAY MAY 13, 2014 CITY HALL COUNCIL CHAMBERS The Planning Commission meeting of May 13, 2014, was called to order at 7:30 p.m., in the Council Chambers, 70 North First Street, Campbell, California by Chair Resnikoff and the following proceedings were had, to wit: ROLL CALL Commissioners Present: Chair: Vice Chair: Commissioner: Commissioner: Commissioner: Commissioner: Commissioners Absent: None Staff Present: Building Official: Planning Manager: Associate Planner: City Attorney: Recording Secretary APPROVAL OF MINUTES Paul Resnikoff Pam Finch Cynthia L. Dodd Yvonne Kendall Philip C. Reynolds, Jr. Michael L. Rich Bill Bruckart Aki Honda Snelling Daniel Fama William Seligmann Corinne Shinn Motion: Upon motion by Commissioner Reynolds, seconded by Commissioner Kendall, the Planning Commission minutes of the meeting of April 22, 2014, were approved. (6-OJ COMMUNICATIONS There were no communication items. Campbell Planning Commission Minutes for May 13, 2014 AGENDA MODIFICATIONS OR POSTPONEMENTS There were no agenda modifications or postponements. ORAL REQUESTS There were no oral requests. *** PUBLIC HEARINGS Chair Resnikoff read Agenda Item No. 1 into the record as follows: Page 2 CIP2015-2019 Public Hearing to consider the City of Campbell's 2015- Staff 2019 Capital Improvement Plan for citywide projects for consistency with the City's General Plan. Staff is recommending that the project be deemed exempt under CEQA. Tentative City Council Meeting Date: June 4, 2013. Project Planner.' Aki Honda Snelling, Planning Manager Ms. Aki Honda Snelling, Planning Manager, presented the staff report. Commissioner Kendall asked about a scheduled reduction in Street Maintenance and Parks referenced on page 3. Where are those numbers coming from? Public Works Director Todd Capurso said that reduction is a function of a fund balance. Any funds remaining are rolled in a CIP-R (Reserve) fund. Years 4 and 5 reach a fund balance issue so there is less money for the last two of five years of this CIP and more funds during the first three years. Community Development Director Paul Kermoyan: Referenced' Attachment 1 that lists the different years. After year 3, the fund drops from $944,000 to $593,000. However the City looks at the CIP every year and adjusts it every year. Commissioner Kendall asked what improvements are planned for the Ainsley House Basement as $50,000 doesn't' seem like much. PW Director Todd Capurso said the plan is to begin to make it (basement) weather tight. This is currently an old house basement. The first step will allow the collection stored there to keep from deteriorating. Commissioner Reynolds asked whether the San Tomas Creek Trail enhancement falls under Santa CNara Valley Water District jurisdiction rather than the City's. PW Director Todd Capurso said that it is common to have public improvements on Water District properties. It is up to local municipalities to drive creek trail projects and Campbell Planning Commission Minutes for May 13, 2014 Page 3 they allow us (local cities) to take projects forward. Conceptually, the SCVWD is supportive of this proposed project. Chair Resnikoff pointed out that there are no monies budgeted for years 4 and 5 under the Park System Improvements. What are those funds earmarked for? PW Director Todd Capurso explained that specific funds can only be spent on park acquisition or improvement projects. He said he expects park improvement projects throughout the lifespan of this CIP. The work includes play lots, restrooms and other new enhancements to parks. Chair Resnikoff asked if there currently was anything underway to acquire new park sites. PW Director Todd Capurso replied no. Not right now. He said that staff is conducting a prioritizing exercise to see where new parks are most needed within the community. Commissioner Kendall pointed out that Street Lighting is not included in this CIP and questioned where lighting to serve new housing developments is funded. PW Director Todd Capurso said that as new projects come in for review, Public Works conditions required public improvements on the project. CD Director Paul Kermoyan reiterated that requirements for new street lighting become a part of each specific development project. Chair Resnikoff opened the Public Hearing for Agenda Item No. 1. Chair Resnikoff closed the Public Hearing for Agenda Item No. 1. Motion: Upon motion of Commissioner Finch, seconded by Commissioner Reynolds, the Planning Commission took minute action to find the City's proposed Capital Improvement Plan 2015-2019 consistent with the City's General Plan and to forward a recommendation that the City Council adopt said Capital Improvement Plan 2015-2019 and also found the CIP to be Exempt from CEQA as it does not represent a specific project, by the following roll call vote: AYES: Dodd, Finch, Kendall, Resnikoff, Reynolds and Rich NOES: None ABSENT: None ABSTAIN: None Chair Resnikoff advised that this item would be considered by the City Council at its meeting of June 4, 2014. *** Campbell Planning Commission Minutes for May 13, 2014 Page 4 Chair Resnikoff read Agenda Item No. 2 into the record as follows: 2. PLN2014-57 Public Hearing to consider the application of The Socialight, Socialight for a Conditional Use Permit (PLN2014-57) to allow a new restaurant with beer and wine sales, late night operation (12 a.m. public closing time), and live entertainment, on property located at 368 E. Campbell Avenue in the C-3 (Central Business District) Zoning District. Staff is recommending that this 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. Commissioner Reynolds asked how EI Guapo, Spread and Liquid Bread are categorized. Are they restaurants or bars? Planner Daniel Fama replied that all three are restaurants. Commissioner Finch asked if the Police Department reviewed this request. Planner Daniel said that as long as this business complies with the Downtown Campbell Alcohol Policy, Campbell PD has no problem. Director Paul Kermoyan: • Said that staff continues to learn from previous experience. • Stated that the intent of this business is to be a restaurant and bar. • Admitted that staff has a hard time on the issue of over-concentration and what that actually is. • Added that two crucial issues are whether this is more a restaurant than a bar and at what point is the level of over-concentration reached. Commissioner Dodd: • Said she appreciated the chart provided within the staff report. • Added that it would help her to see comparisons between this proposed site and other such existing establishments in the Downtown. • Pointed out that patrons also want to see retail in the Downtown. Planner Daniel Fama said that data can be provided in the future. Chair Resnikoff opened the Public Hearing for Agenda Item No. 2. Steve Bonner, Applicant for Socialight, described his proposed restaurant to provide world cuisine that will attract an affluent market to Campbell. They will have an evolving and revolving menu of very different international foods. Campbell Planning Commission Minutes for May 13, 2014 Page 5 Commissioner Rich asked Mr. Bonner how many locations he had considered prior to selecting this one. Steve Bonner replied that this location is the only one he considered as it is the best location in Campbell on the best corner. His office is located right above this space. He assured he would keep some retail. Chair Resnikoff pointed out that per his letter, Mr. Bonner indicated that the live entertainment would be a rarity. He asked what hours are proposed for this location. Steve Bonner said that he was not yet sure if this restaurant could justify paying for live entertainment but he wanted the ability to include it should it be justifiable to do so. As to hours, he proposes to close at 10 p.m. Sunday through Wednesday and at midnight Thursday through Saturday. He added he'd like flexibility to do what their clientele demand drives. Commissioner Dodd asked if the proximity of this site to his office is a chief reason to select it. She asked Mr. Bonner if he has owned a restaurant before. Steve Bonner replied no. While he has owned a lot of different businesses this will be his first restaurant. He added that he is a food and wine guy. They will offer only hand-crafted beers and wines that cannot be found just anywhere. Chair Resnikoff asked Mr. Bonner what is the intent of the retail component. Steve Bonner said that people love the lamps and candles previously (and currently) offered for retail sale at this location. He will continue to decorate this new restaurant with them and they will also be available for sale as well. He will see how that goes and is thinking "outside of the box" a bit. The lamps would be the highlight of the retail component. Commissioner Rich asked if more products would be available on line than in this restaurant location. Steve Bonner said that in the past this store carried about 20 to 25 percent of their product line as compared to what is available on line. He added that with a restaurant added to this location, it would go down to about 10 percent. Joe Hernandez, Resident on N. Peter Drive: • Stated that two considerations should be taken. One is a balance of uses and the other is specific findings that an added use is not resulting in over-concentration. • Advised that he prepared a chart depicting the mix of uses in Downtown Campbell based on his walking down the street for data. He calculates 35 percent retail and 39 percent restaurant/bar along Downtown E. Campbell based on 60 storefronts. The block of E. Campbell Avenue between Central and the railroad tracks is 33 percent retail and 43 percent restaurant/bar based on 21 storefronts. Campbell Planning Commission Minutes for May 13, 2014 Page 6 • Offered comparables with N. Santa Cruz Avenue in Los Gatos (62 percent retail and 18 percent restaurant/bar with 105 storefronts) and Main Street in Los Altos 59 percent retail and 14 percent restaurant/bar with 86 storefronts). • Suggested that in comparison, Campbell is out of balance and has more alcohol sales. That feels like an over-concentration to him and the City may be there now. Commissioner Dodd asked Mr. Hernandez if he had counted the two approved but not yet open wine bars (Regale and Rendezvous). Joe Hernandez said he did count those two establishments with his study. Commissioner Reynolds asked why Mountain View was not also compared. He advised that they have placed a moratorium on restaurants. Joe Hernandez said he simply didn't have sufficient time to survey Mountain View as well. Director Paul Kermoyan advised that staff has a tally it can distribute that Associate Planner Daniel Fama has been compiling. He provided copies to the Commission. Liz Gibbons, Resident on Cherry Lane: • Expressed concern about turning prime retail space into restaurant uses. • Stated that there is a traffic pattern impact when there is an over-concentration of one business type. It is detrimental to retail businesses not to have enough core businesses open. • Agreed with Joe Hernandez's concerns about over concentration. • Pointed out that this is a dense restaurant/alcohol sales area. Several retail spaces have been converted into restaurants in the recent past. • Advised that the money spent to convert a retail space into a restaurant is significant. Once it is done, it is not undone. • Said that this raises questions of whether this is an over-concentration and how that might impact the community as a whole. • Opined that there is so much live entertainment in the Downtown now. • Admitted that this restaurant concept sounds superb. • Suggested that if this is to be approved tonight it should be clarified in the conditions that the music is acoustic and the hours similar to those recently approved far Ciano's. • Said she does not support outdoor dining if it is placed on the back parking lot. • Added that the Commission has the right questions. It really is "how much is too much?" • Reiterated that the Downtown is losing too much of its retail. Commissioner Reynolds asked Ms. Gibbons what her suggestions might be to attract and retain retail in the Downtown. He cautioned that the alternative to restaurants could be empty storefronts. Liz Gibbons said that retail needs other retail in order to be successful. Campbell Planning Commission Minutes for May 13, 2014 Page 7 JoElle Hernandez, Resident on N. Peter Drive: • Pointed out that the Planning Commission is the community's first guard at safeguarding the General Plan. • Added that people come to Campbell from the outside to enjoy it. It is beginning to look less like Campbell and more like San Jose with its over-concentration of alcohol-serving establishments. • Stated that she is deeply concerned for the Downtown and believes it is important to keep a balance there. She concurred with the input provided by the two previous speakers on the balance between retail and bar uses is getting out of hand. • Reminded that retail stores are a part of the Downtown Campbell Business Association (DCBA). Without retail, there won't be a need for the DCBA and the organization would probably go away. • Recounted that her 15-year old daughter feels there is nothing for teens in Downtown Campbell so her friends prefer Willow Glen or Los Gatos where there are shops. • Stressed the need to keep the family portion of the Downtown experience and questioned how family-friendly it is becoming. • Admitted that at some point someone asking for live entertainment is going to be the first unlucky person who is denied. • Cautioned that there are already 26 restaurants and/or alcohol serving establishments in the Downtown and the Downtown is not even that big. • Expressed surprise that the Campbell Police Department said this would not impact them. • Questioned where people are going to park. • Said that while this proposed restaurant may sound like a great place to eat, it is just as important to retain a balance of uses in the Downtown. Commissioner Rich asked Ms. Hernandez what her vision of the right mix might be. JoElle Hernandez: • Said that she would like to see more shops, perhaps a flower shop. • Added that she agrees with the premise that retail needs other retail nearby to be successful. • Pointed out that Los Gatos does it with tiny shops and awful parking. • Recounted that at one time in the past, Campbell was all bars and she sees it going that way now. She'd like to see a slow down of bars. • Stressed the need to consider the General Plan and the Downtown Development Plan for guidance. Franco Benevento: • Explained that he comes from a food and wine background. • Pointed out that Campbell is now known as a culinary destination that is crushing Los Gatos even though Los Gatos has 160 storefronts while Campbell has but 60. Campbell is always packed and has the best Farmers Markets and best events. • Advised that they would use products that come from Campbell businesses as well as from its Farmers Market. Campbell Planning Commission Minutes for May 13, 2014 Page 8 Commissioner Gibbons, Resident on Cherry Lane, returned to the podium to remind that the yarn shop didn't renew its lease because the rent was going up. Chair Resnikoff closed the Public Hearing for Agenda Item No. 2. Commissioner Kendall: • Stated that this restaurant offering World cuisine is a nice change. There are lots of California and Italian cuisine restaurants around. Another breakfast option is also very nice as there are just two right now. • Said that she likes the idea of outdoor dining but not in the back but rather at the street frontage. • Admitted that she questions the mix of retail and dining and doesn't see it working particularly well. Usually it's one or the other. • Opined that there seems to be a lack of clarity via the business plan. • Added that consistency would be important as patrons like to know about the places they select to eat. • Said that she is not excited about another bar or additional live music. • Cautioned that it seems the Downtown is reaching a kind of tipping point. • Agreed with the point made by others that retail depends on other retail. • Reported that she walked the Downtown and feels that it is getting dangerously out of balance in its mix of retail and restaurants. Commissioner Rich: • Said that he was struggling when he arrived and is more so now. • Added that he would like to challenge this Planning Commission to consider the big picture for the Downtown. Campbell's Downtown has been greatly revitalized over the last five years. • Recounted that he had been approached by teens in Saratoga for an interview about how Campbell has been revitalized. • Said that he doesn't know what the right mix is but that needs to be figured out. • Stated that what is needed is a short list of targeted establishments to entice to the Downtown. This should be apro-active approach while we are in reactive mode now. • Said that the question is what we want for the Downtown. • Suggested having a meeting Downtown to walk and talk about it. Commissioner Finch: • Said that use of high-top tables is not a problem to her. They are more comfortable for taller people. • Reminded that parking is bad in that part of the street. • Questioned how over-concentration is quantified. That needs to be discussed. • Pointed out that the yarn shop was popular and did well. • Stated that the General Plan calls for a variety of commercial uses including restaurant and retail. • Admitted that she is starting to feel we are getting to an over-concentration level. Campbell Planning Commission Minutes for May 13, 2014 Page 9 • Agreed that Campbell is the place to be but she is starting to get uneasy about the mix as there is not a lot of retail left. • Said that she is not sure about this one and that she thinks having 39 to 40 percent restaurant/bar use is starting to be too high and not a healthy mix. Commissioner Dodd: • Said that good points have been made by members of this Commission and members of the public. • Agreed with Commissioner Finch that it may be time to start looking at what over- concentration might be. • Said that what is before us is another restaurant with alcohol. • Added that there are already two other new approved alcohol serving uses that have not yet even opened. She is not comfortable with that. • Advised that it is very expensive to convert a retail space into a restaurant. Once that happens it doesn't go back. • Reported that she often eats in Downtown and likes to visit the stores afterwards. This is a beautiful and walkable Downtown. • Said that she thinks about Saratoga. Their retail is gone and no one strolls there anymore. It is empty and vacant. • Said that there must be a balance of commercial and retail uses to have our Downtown grow. • Added that the plan is to stretch out our Downtown. Commissioner Reynolds: • Said that the common question remains what is over-concentration. • Reminded that that issue was recently addressed by the City Council. They decided to continue in the direction in which we are going. • Added that policy is set by the City Council and what the Planning Commission is asking for is a policy direction. The Planning Commission reviews applications and doesn't have to decide on policy. Perhaps we need to go back to Council for further direction. • Cautioned that saying no to restaurant applications is saying no both to a business person and a property owner. A consequence to that decision could be an empty storefront. • Said that this is a tough decision and one that the Commission is being asked to do while asking Council for more policy direction. • Suggested perhaps having the Council put in place an incentive program to attract retail to the Downtown. He added that more policy guidance is needed from Council on this issue of over-concentration. • Gave the example of San Gregoria General Store in San Gregoria where it is well demonstrated that retail and dining together in one establishment can work. He added that a similar result is what we will get in this Campbell location with its proposed mix of retail and restaurant. This restaurant will bring products to Campbell that you can't find locally right now. • Agreed withi Commissioner Finch that high-top tables are comfortable. • Said he is willing to support the application before us but also agree that we are heading to over-concentration but it is up to the Council to make it a policy. Campbell Planning Commission Minutes for May 13, 2014 Page 10 • Stated that it is not in the Commission's purview to dictate what types of businesses can come into town. • Suggested that perhaps tax and/or business license incentives may help draw desired retail uses into the Downtown. • Cautioned that saying no to this request sends the message that we are okay with empty storefronts. Commissioner Dodd: • Said that she can appreciate that it is important not to have empty storefronts in the Downtown. • Added that it is also up to this Commission to listen to what the community is saying. • Stated that she does not have enough information available since two already- approved establishments for this part of Downtown have not yet opened. It is not possible to evaluate their impacts on the Downtown. • Agreed that there is a need to discuss issues for the Downtown and be really sure. • Reiterated that once a building is converted for restaurant use, it stays a restaurant from that point onward. • Pointed out that what is decided for this location will be permanent. Commissioner Finch: • Referenced a Council policy that appears on page 3 of 6 of the Downtown Development Plan (DDP) and read aloud from Policy LU2.1. • Said that the Planning Commission is here to support policies and guidelines. • Added that; the City Council is not telling the Planning Commission what that number is but rather expects us to determine that. Commissioner Kendall: • Said that she disagrees about policy decisions. • Added that the members of this Commission were appointed to do that. • Reported that at one time she wanted to locate her insurance office into the Downtown but was told that office uses were not allowed on the first floor in a portion of the Downtown earmarked for retail and restaurant uses. She understood that policy and accepted it. • Said that it is important that the Downtown not be known just for food and drink but rather that it also draw families as well. Commissioner Rich: • Stated his appreciation for a robust discussion. • Encouraged everyone to consider the vision for the Downtown. • Suggested that this could be a high priority topic for a Study Session. • Added that he would like to see us get in front of it next time. Commissioner Reynolds: • Said that his vision of Downtown is half retail and half restaurants/bars. Whether that is a potential reality, he doesn't know but it would be nice. Campbell Planning Commission Minutes for May 13, 2014 Page 11 • Added that if the Commission could set policy, he'd like to see it put enticements in place to draw retail uses. He doesn't see how it could but that authority would be nice. He added that he didn't think the City Attorney, City Council or Planning Department would allow the Commission to do that. That policy is not in place right now. • Admitted that he fears we could end up like Saratoga if we are not careful. Restaurants seem to be doing well in the Downtown right now. Commissioner Dodd said that she appreciates Commissioner Rich's suggestion to get in front of this issue. She asked staff how to put this topic on a Study Session agenda. Director Paul Kermoyan: • Reported that last year (2013) the City Council did review this very topic. What they discussed was whether the Downtown was changing and whether it was out of balance. • Added that he knows that members of the City Council watch these Planning Commission meetings. They may suggest a future Study Session. • Reminded that what is before the Commission this evening is a Conditional Use Permit application, which is a discretionary action. The Commission does not have to approve it but if not they must say why they are not approving it. They can say that it doesn't work in this location. • Advised that if there were not a bar or late hours proposed with this use, it would not even be before the Planning Commission. The only reason it is here is because of their desire to have a bar and late hours. Perhaps the Commission can look at that. Perhaps the question can be, "Why not just a restaurant with beer and wine service?" Another question may be, "Why not specify the percentage of retail required as part of this use?" • Said that the options for the Commission include: deciding as requested; continuing it to request Council revisit the issue of over-concentration; or modifying the approach. Commissioner Rich asked how many establishments with alcohol service were in place when the policy was created. Director Paul Kermoyan: • Advised that a restaurant without separate bar is permitted by right in Downtown. • Added that the Planning Commission and members of the public are struggling. Commissioner Dodd asked when the last Study Session was held. Director Paul Kermoyan replied about one year ago. Commissioner Kendall: Suggested the need for policies to keep retail space available. That happens when the Planning Commission finally says "enough bars and restaurants." Added that at that point property owners will know they have to get something other than a restaurant. Campbell Planning Commission Minutes for May 13, 2014 Page 12 • Said that she didn't think this proposed use would fit on the block because of the number of restaurants/bars there now. • Said that preserving a percentage of retail space is important to her. • Admitted that she likes the breakfast and lunch idea for this use. Commissioner Reynolds: • Said that if the City were to say no more restaurants or bars, the property owners would modify their rents accordingly. He has a problem with that as the City would be taking control of someone's investment and dictating how much they can make as a return on it. • Admitted that he has a tough time dictating that. • Added that it is important that the Planning Commission keep in mind the future of Campbell Avenue East. • Reminded that the Del Grande property is coming onto the market soon. • Reiterated that he would like additional guidance from the City Council. Chair Resnikoff: • Cautioned that the Del Grande property is not on the table or being looked at today. • Opined that this project is not helping retail as proposed. • Added that he is not in favor of kicking this back to a Study Session. • Suggested that the Commission do the best it can and make decision while we are here. • Said it appears the issue is alcohol service and not the number of restaurants. That's capitalism. • Said that what makes something appear more as a bar is late hours, live entertainment and high-top table seating. The applicant said they wanted some high-top seating "just in case." • Suggested that there are ways to mitigate potential impacts including limiting live entertainment to acoustic and/or limiting the number of days it would be allowed. • Said that saving retail does not fall to the Planning Commission. • Added that the Commission also cannot limit property owners' rents. • Reminded that if policies are provided, the Commission evaluates applications using them. • Said the question remains how to attract retail to the Downtown. They have to fit, they have to be able to survive and they have to want to come in. • Suggested that the Commission move forward to make a decision. It can be approved "as is" or with modifications. • Said that despite the concerns over bar/restaurant versus retail uses of this location, he also doesn't want to see empty business locations in the Downtown. • Added that the Commission cannot wait for the clientele to decide what approvals would be granted with this Use Permit. The Commission must set specific standards with its conditions of approval. • Concluded that he favors making this more of a restaurant with retail and less a bar. Campbell Planning Commission Minutes for May 13, 2014 Page 13 Commissioner Kendall: • Said that she could support this use with no separate bar area, with beer and wine service as long as the kitchen is open, early hour opening for breakfast and lunch service, 10 p.m. closing to the public, high-top seating is acceptable, retain a retail area not less than 25 percent of the space and allowing live entertainment six days a year limited to acoustic music. • Added that this would allow this restaurant to have beer and wine service while serving World cuisine. Director Paul Kermoyan: • Pointed out that if the bar is removed and the hours reduced, this application doesn't need to be before the Planning Commission. • Reminded that the request for later hours brings this use to the Planning Commission for approval. He added that opening prior to 6 a.m. is still considered to be late hours. Commissioner Finch: • Said that she agrees with Commissioner Kendall. • Expressed support for a restaurant with beer and wine service and no bar that includes 25 percent retail space. She is not sure about limiting live entertainment just to six days a year. Chair Resnikoff said that this use would come back for its outdoor dining area. Director Paul Kermoyan said that patio seating is a staff processed permit. Chair Resnikoff asked if the Live Entertainment Permit goes to the City Council. Director Paul Kermoyan replied yes. City Attorney William Seligmann pointed out that there is an exception for live entertainment that he will look for while the Commission's discussion continues. Commissioner Dodd sought clarification from staff that if the restaurant closes by 10 p.m., this request would not be before the Planning Commission as long as no separate bar is proposed. Director Paul Kermoyan said that as long as they close by 11 p.m., a restaurant with no separate bar can serve beer and wine. City Attorney William Seligmann: • Referenced the Downtown Zoning that indicates that live entertainment is allowed when it is ancillary to a restaurant that does not have a separate bar. The maximum number of musicians is four and the allowable hours for live entertainment are between 9 a.m. and 11 p.m. The use must have either a Type 41 or Type 47 ABC license with full food services. The sound must be such that normal conversation can occur. The noise must not be audible outdoors beyond 50 Campbell Planning Commission Minutes for May 13, 2014 Page 14 feet from the entrance. No cover charge can be charged. No dancing area can be provided. No Live Entertainment Permit would be required under those restrictions. Director Paul Kermoyan explained that the Type 41 ABC license is for beer and wine service while the Type 47 ABC license includes spirits with a restaurant use. City Attorney William Seligmann clarified that they would still need the Live Entertainment Permit issued by Council but not Planning Commission review. Director Paul Kermoyan added that the Police Department still processes the Live Entertainment Permit through Council. Commissioner Kendall said that she could support an 11 p.m. closing to customers and midnight for staff to clean up after public closing. She supports a new restaurant at this location with beer and wine service but without a distinct bar. She is fine with the high-top tables and supports the requirement for 25 percent retail floor space and live entertainment. Director Paul Kermoyan said that through a Use Permit the City has the authority to govern a use and capture its conditions of approval. Commissioner Finch: • Stated her agreement with the retail space requirement. • Agreed with Commissioner Reynolds' opinion of St. Gregorio's. It is an impressive restaurant with retail but it is also much larger location. • Reminded that with a 10 p.m. public closing and 11 p.m. staff departure no Use Permit would be required. Commissioner Reynolds agreed that St. Gregorio's represents a restaurant with retail mix use at its best. Director Paul Kermoyan agreed that if they close to the public by 10 p.m. and leave the site by 11 p.m. and as long as they don't have a separate bar, the approval process for this location becomes a tenant improvement that is done over the counter. Past 11 p.m. equals a late night operations as does opening prior to 6 a.m. Commissioner Dodd said that she thinks governing the retail component by a specified percentage would be too hard to manage. Chair Resnikoff said that with the removal of the bar, the issue is hours. Late hour approval is not required if everyone (including staff) is out by 11 p.m. and not on site prior to 6 a.m. However, if they close at 11 p.m. and clean up to midnight than a Use Permit approval is required for late hours. Commissioner Dodd asked if it is appropriate to ask the applicant their position on perhaps eliminating the proposed bar from this application. Chair Resnikoff re-opened the Public Hearing for Agenda Item 2. Campbell Planning Commission Minutes for May 13, 2014 Page 15 Steve Bonner, Applicant: • Said that he has thought out and designed a unique concept that could become an anchor for Campbell. • Assured his belief that his establishment would attract an affluent clientele to Campbell to taste spectacular foods. Chair Resnikoff asked Mr. Bonner his reaction to the Commission's preference for a restaurant approval with beer and wine service that does not include a separate bar, high-top seating or late hours. Does that play? Steve Bonner: • Said that he is a big fan of compromise. • Added that he has already made the bar smaller. • Pointed out that Socialight is a concept to create a comfortable place for single people. • Added that he can make the concession on the high-top tables. That's not that important to him. Director Paul Kermoyan reminded Mr. Bonner that the Commission has no problem with taller tables as long as there is no separate bar. Steve Bonner replied that he would not do tall tables without a bar. Director Paul Kermoyan: • Said that it seems there is not a lot of support for the bar. The Commission appears mare comfortable with a restaurant that has beer and wine service. • Asked Mr. Bonner if his business is going to "fly" without the bar. • Added that if not, Mr. Bonner could appeal the action if it is approval without the bar component.. Steve Bonner said that elimination of the bar takes away his entire business plan. He added that he had already reduced the size of the bar by six feet. Chair Resnikoff asked about the hours. The Commission is proposing midnight on Friday and Saturday and 10 p.m. on other nights while the original request was for midnight daily. Would an 11 p.m. closure time kill the business plan? Steve Bonner: • Said that he doesn't think it's fair or reasonable. • Pointed out that they have their own parking area for Socialight consisting of 15 spaces. • Added that the concern about live entertainment is a moot point. It will be classical guitarist within an elegant restaurant or cello, violin or such instruments. • Advised that they are proposing a pretty good mix of retail and restaurant. • Stated that the yarn shop left because they couldn't afford the rent. • Concluded that this space will not support many types of retail. Campbell Planning Commission Minutes for May 13, 2014 Page 16 Chair Resnikoff re-closed the Public Hearing for Agenda Item 2. Motion: Upon motion of Commissioner Finch, seconded by Commissioner Kendall, the Planning Commission considered approving a Conditional Use Permit (PLN2014-57) to allow a new restaurant with a beer and wine sales, late night operation and live entertainment, subject to the conditions of approval as amended: • No physical bar included. • Change Condition 3B removing bar seating. • Hours as requested. • Strike reference to bar area in Condition 3E. • Removed Condition 3F and default to the provisions for live entertainment per the C-3 Zoning District. • Strike Condition 3H. on property located at 368 E. Campbell Avenue, by the following roll call vote: AYES: Kendall and Finch NOES: Dodd, Resnikoff, Reynolds and Rich ABSENT: None ABSTAIN: None The motion failed due to a lack of a majority. The motion was restated with a modification to hours to allow 11 p.m. closing and 12 p.m. end of operation hour. Motion: Upon motion of Commissioner Finch, seconded by Commissioner Kendall, the Planning Commission considered approving a Conditional Use Permit (PLN2014-57) to allow a new restaurant with a beer and wine sales, late night operation and live entertainment, subject to the conditions of approval as amended: • No physical bar included. • Change Condition 3B removing bar seating. • Modify hours to allow 11 p.m. business closure and 12 a.m. operational closing. • Strike reference to bar area in Condition 3E. • Removed Condition 3F and allow live entertainment subject to conditions of approval, and • Strike Condition 3H. on property located at 368 E. Campbell Avenue, by the following roll call vote: AYES: Kendall, Finch and Resnikoff NOES: Dodd, Reynolds and Rich ABSENT: None ABSTAIN: None Campbell Planning Commission Minutes for May 13, 2014 Page 17 With a tie vote of the Commission, this motion fails. Director Paul Kermoyan said that at this point the Commission has two options. One is to end now and the other is to try again to reach a majority vote on an alternate motion. Chair Resnikoff asked the three Commissioners with "no" votes why they so voted and if there is anything that would change their mind. Commissioner Dodd advised that with the info available at this time, there is nothing to change her vote tonight. Commissioner Rich said he has similar sentiments. There Is not enough here. Commissioner Reynolds: • Said that there has been adequate compromise on the applicant's part on the size of his bar. • Added that he would like to see compromise or resolution tonight. • Stated that the applicant is asking for some kind of a bar area. • Reminded that high end food will be available at all times of operation. • Pointed out that if problems occur, this could always be brought back to the Planning Commission. • Suggested going with the applicant's compromise. Commissioner Finch said that she wouldn't support this application with inclusion of a bar. Chair Resnikoff asked staff if this is a denial. Director Paul Kermoyan advised that it is a de facto denial that is appealable to the City Council within 10 calendar days. City Attorney William Seligmann clarified that it is not a denial but just not an approval. Director Paul Kermoyan suggested that if the Planning Commission believes that insufficient information was provided by the applicant, they should tell him what is lacking. Commissioner Dodd: • Reminded that this proposed bar is located near two others that will be opening soon. • Said that due to that fact, she is not comfortable approving another one so close by at this time. • Added that if this were presented as a restaurant without a bar, she would be more willing. Chair Resnikoff said that an option of restaurant with no bar was part of one of the two motions. Campbell Planning Commission Minutes for May 13, 2014 Page 18 Commissioner Dodd said that while this is a great idea for a restaurant, she doesn't think this is the location for it. Commissioner Rich: • Advised that the City needs alonger-term vision for the Downtown. • Said that this vision requires considering this issue of over-concentration and more discussion as to what the City wants to see in the long term. • Pointed out that the applicant states that taking the bar from the project will destroy his business plan. Commissioner Reynolds said that he agreed with Commissioner Rich that killing this business' business plan doesn't make any sense. He reiterated his preference for some form of compromise. Chair Resnikoff said it is apparent that this body will not reach consensus tonight. *** Chair Resnikoff read Agenda Item No. 3 into the record as follows: 3. PLN2013-359 Public Hearing to consider the application of Dave Thorpe for Thorpe, D. a Conditional Use Permit (PLN2013-359) to establish an auto detailing shop at 559 Campbell Technology Parkway. Staff is recommending that this 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: Richard Smeaton, Project Planner Ms. Aki Honda Snelling, Planning Manager, presented the staff report. Commissioner Kendall asked why the number of cars served per day is so limited. Planning Manager Aki Honda Snelling explained that the site has four parking spaces. Two are inside and two are surface parking spaces. Other parking is shared with other businesses on site. Chair Resnikoff asked about the modification to the condition relating to waste water. Planning Manager Aki Honda Snelling said that there will now be no car washing occurring on this site. Chair Resnikoff opened the Public Hearing for Agenda Item No. 3. Dave Thorpe, Applicant and Business Owner: • Explained that he has arranged to purchase pre-paid vouchers at the Classic Carwash to clean the vehicles they will then detail the vehicles at his location. Campbell Planning Commission Minutes for May 13, 2014 Page 19 Classic runs a drive through express carwash lane between 7 and 9 a.m. You drive through and don't even have to get out of your car. Commissioner Finch asked Mr. Thorpe about the limit to four cars a day. Dave Thorpe said that he only does up to three cars a day. Chair Resnikoff closed the Public Hearing for Agenda Item No. 3. Commissioner Reynolds thanked the applicant for their longevity in Campbell and said that he admires their desire to stay in Campbell. Motion: Upon motion of Commissioner Reynolds, seconded by Commissioner Dodd, the Planning Commission adopted Resolution No. 4155 approving a Conditional Use Permit (PLN2013-359) to establish an auto detailing shop at 559 Campbell Technology Parkway, with a modification to Condition 4F that requires that the vehicles be washed off-site at an approved environmentally-friendly location, by the following roll call vote: AYES: Dodd, Finch, Kendall, Resnikoff, Reynolds and Rich NOES: None ABSENT: None ABSTAIN: None Chair Resnikoff advised that this action is final unless appealed in writing to the City Clerk within 10 calendar days. *~* REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR Director Paul Kermoyan: • Advised that the next Planning Commission meeting on May 27, 2014, will be cancelled. The applicant for the item scheduled for that agenda has withdrawn their application. The Mayor's Meeting Update will instead be brought to the June 10th meeting. Campbell Planning Commission Minutes for May 13, 2014 Page 20 ADJOURNMENT The Planning Commission meeting adjourned at 10:28 p.m. to the next Regular Planning Commission Meeting of June 10, 2014 (the regular meeting of May 27, 2014, has been cancelled). SUBMITTED BY: inn hinn, Recording Secretary APPROVED BY: ~'~~~`-~' ~~~~ Paul Resnikoff, (Chair _~ i ; ATTEST: ~, ~( `~---- Paul Ke~rmo n, Secretary