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Use Permit - Approved and Appealed - 2016 MEMORANDUM CITY OF CAMPBELL City Clerk's Office ~o; Daniel Fama, Associate Planner Date: May 3, 2016 From: Andrea Sanders, Deputy City Clerk Subject: Upholding an Appeal and denying a Conditional Use Permit (PLN2015-352) and Administrative Planned Development-2145 S. Winchester Blvd. At its regular meeting of May 3, 2016 City Council adopted resolution 11979 upholding and appeal and denying a Conditional Use Permit (PLN2015-352), Administrative Planned Development Permit (PLN2015-354) and Parking Modification Permit (PLN2015-355) for property located at 2145 S. Winchester Blvd. A certified copy of 11979 is attached for your records. RESOLUTION NO. 11979 BEING A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL UPHOLDING AN APPEAL AND DENYING A CONDITIONAL USE PERMIT (PLN2015-352) AND ADMINISTRATIVE PLANNED DEVELOPMENT PERMIT (PLN2015-354) FOR ESTABLISHMENT OF A NEW 45-SEAT RESTAURANT WITH BEER AND WINE SERVICE, OUTDOOR SEATING, LIVE ENTERTAINMENT (NO DANCING), AND "LATE-NIGHT" OPERATIONAL HOURS (11:00 PM PUBLIC CLOSING); AND A PARKING MODIFICATION PERMIT (PLN2015-355) FOR A REDUCTION IN THE NUMBER OF REQUIRED PARKING SPACES ON PROPERTY LOCATED AT .2145 S. WINCHESTER ,BOULEVARD. FILE NO: PLN2015-352, 354, & 355 After notification and public hearing, as specified by law and -after presentation by the Community Development Director, proponents and opponents, the hearing was closed. The City Council finds as follows with regard to File No. PLN2015-352, 354 & 355: Environmental Findings Denial of a project is statutorily exempt from environmental. review under Section 15270(a) of the California Environment Quality Act (CEQA) Guidelines, pertaining to projects which a public agency rejects or disapproves. Evidentiary Finding 2. The. proposed project includes a request for Conditional Use Permit (PLN2015-352) and Administrative Planned Development Permit (PLN2015-354) to allow establishment of a new 45-seat restaurant (Kalye Hits) with beer and wine service, outdoor seating, live entertainment (no dancing), and "late-night" operational hours (11:00 PM public closing); and a Parking Modification Permit (PLN2015-355) to allow a reduction in the number of required parking spaces. 3. The project site is a commercial property located at the southwest corner of S. Winchester Boulevard and E. Rincon Avenue. 4. The project site is developed with a 5,000 square-foot retail/commercial building constructed pursuant to Planned Development Permit PLN2011-318 approved by City Council Resolution No. 11426. 5. The project site is within the P-D (Planned Development) Zoning District and is designated with a Central Commercial land use designation by the General Plan. 6. The project site is also within the boundaries of the Winchester Boulevard Master Plan. THE FORE001N0 IAISTRUMENf ~ A TRUE AND CORRECT COPY OF THE OHIGItVAL ON FILE IN THIS OFFICE ATTEBf: WENDY WOOD. CRYCLE~( dY _ ~~~ ( ~ DJITED - / City Council Resolution _ Page 2 of 5 Upholding an Appeal 2145 S. Winchester Blvd. - PLN2015-352,354,355 7. The Winchester Boulevard Master Plan was adopted by the City Council in 2009 with the goal of transforming "Winchester Boulevard into a vibrant mixed-use, pedestrian oriented street, lined with -ground-level businesses with residential or office above". 8. The Master Plan was adopted pursuant to General Plan Strategy LUT-5.3j in #urtherance of the area's predominant Central Commercial General Plan Land Use Designation: Strategy LUT-5.3j: Winchester Boulevard Plan: Develop an Area Plan for Winchester Boulevard. The Area Plan should address specific boundaries, mix of uses, street amenities, landscaping, building and site design. Central Commercial: The Central Commercial designation is used for the heart of Campbell including parts of Campbell and Winchester Avenues in Downtown Campbell. This area is intended to provide shopping, services and entertainment within a pedestrian oriented, urban environment. Building forms in this designation edge the street and should include retail commercial uses on the ground floor with either office or residential uses on the second and third floors. 9. The Winchester Boulevard Master Plan specifies that allowable land uses are the same as those allowed within the C-3 Zoning District (i.e., Historic Downtown Campbell), with a specific emphasis on retail and restaurants on the ground floor. ...The subject parcels predominantly have a General Plan designation of Central Commercial (C-3), therefore Permitted, Conditional and Prohibited Uses shall be those set forth in the C-3 zoning district.... In general, the vision for this Plan area shall be ground floor retail/restaurant, with upper floor residential/office. It is expected that a variety of ground floor retail businesses and eating establishments shall be maintained to achieve a balanced and distinctive pedestrian-oriented experience, without an overconcentration of any one type of use. 10. Policies found within the Campbell General Plan and Downtown Campbell Development Plan articulate. a desire to promote and enhance a downtown environment that provides a desirable balance of land uses including shopping, services, and entertainment. This vision is evidenced in policies that encourage a mix of day and evening activities, a distinctive retail presence, a diversity of eating establishments, support for neighborhood-serving businesses, and protection of surrounding residential neighborhoods. 11. The City Council adopted the 'Downtown Alcohol Beverage Policy', as an implementation tool of the Campbell General Plan and Downtown Development Plan. The Policy is intended to balance the health and safety of the community while still maintaining the commercial viability of the downtown in which restaurants have an essential role. 12. The southerly portion of the Winchester Boulevard Master Plan area falls within boundary area of the Downtown Alcohol Beverage Policy, rendering the Policy applicable to the proposed project. City Council Resolution Page 3 or' 5 Upholding an Appeal 2145 S. Winchester Blvd. - PLN2015-352,354,355 13. Conformance to the provisions of the Downtown Alcohol Beverage Policy is the basis to which the City shall review new applications for alcohol beverage service. 14. Restrictions to the hours of operation, amount of bar area seating, and alcohol beverage service, are necessary to protect the public health, safety and welfare. 15. In adopting the Downtown Alcohol Beverage Policy the City retains its discretionary review authority to approve or deny an application for new alcohol beverage service based upon the totality of the record and the applicability of findings for approval. 16. For restaurants with a separate bar area, the Downtown Alcohol Beverage Policy indicates that "Live entertainment is limited to live musicians complimentary to the primary purpose of providing meal service." 17. Karaoke performers are not employed musicians, in the context provided by California Business and Professions Code 25663.5. As such, karaoke does not constitute entertainment pertormed by "live musicians." Moreover, karaoke is an interactive entertainment form that encourages active participation by the audience, and is therefore not "complimentary to the primary purpose of providing meal service". As a result, karaoke is a type of live entertainment that is .not supported by the Downtown Alcohol Beverage Policy. 18. Due to the nature of karaoke performances, alcohol beverage service in association with a restaurant would likely encourage overconsumption of alcohol resulting in public intoxication and public nuisance. Alcohol service would, therefore, not be subordinate to the restaurant's primary purpose of serving food, inconsistent with the Downtown Alcohol Beverage Policy. 19. In combination with the karaoke performances and alcohol service, the proposed use is not appropriately classified as a "restaurant" as proposed, rather it constitutes a distinct use commonly known as a "karaoke bar," which more closely resembles a "nightclub" as defined by the Campbell Municipal Code, which is inconsistent with the Downtown Alcohol Beverage Policy. 20. Although the Downtown Alcohol Beverage Policy strongly recommends that Conditional Use Permits for establishments for on-site consumption of alcohol beverages be limited to a closing time of no later than 12:00 AM, consideration of impacts to adjacent residents may justify earlier closing times. 21. The proposed 11:00 PM public closing time would subject area residents to noise generated by the live entertainment as well as outdoor clean-up activity, including but not limited to, disposal of refuse including glass bottles that generate excessive noise when disposed. City Council Resolution Page 4 of 5 Upholding an Appeal 2145 S. Winchester Blvd. - PLN2015-352,354,355 22. Measures to diminish .noise, notwithstanding live entertainment, such as restricted hours to rear door access and limitations on outdoor clean-up activity, are impractical to enforce. 23. Due to the high likelihood of noise impacts, late-night operational hours are not warranted for the project location in association with the proposed project. 24. The proposed project request seeks a seating capacity for the proposed restaurant of 45 seats, including 37 interior seats and 8 exterior seats. 25. Under the city-wide parking standard for restaurants (1 space for every 3 seats plus 1 space for every 200 square-feet of "non-dining" area), the restaurant would require 18 parking spaces. Based on the project site's overall parking ratio of 1 space per 194 square-feet, the restaurant's pro-rated proportional share of parking stalls is 12, resulting in a technical deficiency of 6 spaces. 26. The Winchester Boulevard Master Plan notes that all new developments are subject to existing city parking requirements, but that adjustments may be approved by the decision making body pursuant to CMC Sec. 21.28.050. This code section provides relief from parking standards under certain circumstances through consideration of a Parking Modification Permit. 27. To support the Parking Modification Permit request, the applicant wishes to consider the six on-street parking stalls provided along the Winchester Boulevard street frontage as a supplement to the off-street (on-site) parking, within the context of the Master Plan, which notes that existing curbside (street) parking will be retained to "support commercial businesses" (Pg. 19), recognizing that street parking along Winchester Boulevard is principally intended to serve commercial tenants. 28. However, to approve a Parking Modification Permit, an applicant must demonstrate to the satisfaction of the City Council that "the anticipated number of parking spaces necessary to serve the use or structure is less than that required by the applicable off-street parking standard, and would be satisfied by the existing or proposed number of parking space." 29. Absent specific transit demand measures taken to diminish parking demand associated with the restaurant, such as implementation of a carpool/vanpool or car- share program or a transit use incentive program for employees, and in recognition that on-street parking spaces are already heavily used and thus cannot be relied upon to be available for use by patrons of the restaurants, accounting for on-street parking as a basis for a parking reduction pursuant to a Parking Modification Permit is not consistent with the Zoning Code in this circumstance. 30. The City Council's review of the. proposed project encompassed zoning and General Plan land use conformance, noise impacts, parking, property maintenance, odors, security and enforcement, and neighborhood impacts. City Council Resolution Page 5 of 5 Upholding an Appeal 2145 S. Winchester Blvd. - PLN2015-352.354.355 Based upon the foregoing findings of fact, the City Council determines that it cannot affirmatively establish the findings provided in Campbell Municipal Code Sections 21.45.040, 21.46.070, 21.12.030.H.6, 21.12.030.H.7, and 21.28.050, for a Conditional Use Permit, Liquor Establishment, Administrative Planned Development Permit, Late- Night Activities, and a Parking Modification Permit, respectively. THEREFORE, BE IT RESOLVED that the City Council upholds the appeal and denies a Conditional Use Permit (PLN2015-352), Administrative Planned Development Permit (PLN2015-354), and Parking Modification Permit (PLN2015-355) for property located at 2145 S. Winchester Boulevard. PASSED AND ADOPTED this 3rd day of May, 2016, by the following roll call vote: AYES: COUNCILMEMBERS: Kotowski, Gibbons, Baker NOES: COUNCILMEMBERS: Resnikoff, Cristina ABSENT: COUNCILMEMBERS: None ABSTAIN: COUNCILMEMBERS: None APPROVED: `~ `~ Ja~o~n T. Baker, Mayor ATTEST: Wend ood, City Clerk