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PC Mins 10/25/2011CITY OF CAMPBELL PLANNING COMMISSION MINUTES 7:30 P.M. The Planning Commission meeting of October 25, 2011, was called to order at 7:30 p.m., in the Council Chambers, 70 North First Street, Campbell, California by Chair Roseberry and the following proceedings were had, to wit: OCTOBER 25, 2011 CITY HALL COUNCIL CHAMBERS TUESDAY ROLL CALL Commissioners Present: Chair: Vice Chair: Commissioner: Commissioner: Commissioner: Commissioner: Commissioner: Bob Roseberry Theresa Alster Brian Brennan Mark Ebner Elizabeth Gibbons Paul Resnikoff Philip C. Reynolds, Jr. Commissioners Absent: Staff Present: APPROVAL OF MINUTES None Community Development Director: Planning Manager: Associate Planner: Assistant Planner: City Attorney: Recording Secretary: Kirk Heinrichs Paul Kermoyan Steve Prosser Daniel Fama William Seligmann Corinne Shinn Motion: Upon motion by Commissioner Brennan, seconded by Commissioner Gibbons, the Planning Commission minutes of the meeting of August 23, 2011, were approved with an edit to page 17. (6-0-0-1; Commissioner Ebner abstained) Campbell Planning Commission Minutes for October 25, 2011 Page 2 COMMUNICATIONS 1. One correspondence item for agenda item 2. 2. Two pieces of correspondence for Agenda Item No. 3. AGENDA MODIFICATIONS OR POSTPONEMENTS There were no agenda modifications or postponements. ORAL REQUESTS There were no oral requests. *** PUBLIC HEARINGS Chair Roseberry read Agenda Item No. 1 into the record as follows: 1. PLN2011-211 Public Hearing to consider the application of Mr. Thomas Santucci, T. Santucci for a Conditional Use Permit (PLN2011-211) to allow the establishment of a medical office (chiropractic clinic) on property located at 471 Division Street in a C-M (Controlled Manufacturing) 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, Assistant Planner Mr. Daniel Fama, Assistant Planner, presented the staff report as follows: • Reported that the applicant is requesting approval of a Conditional Use Permit to establish a chiropractic medical office. • Described the project site as being at the corner of Division Street and Dell Avenue, within a 72,000 square foot commercial parcel that contains two buildings. One building is single story and the other is two stories. The buildings represent 20,600 square feet of space. The proposed chiropractic office would consist of approximately 4,000 square feet within the single-story building on the east side of said building. Other uses on site include professional offices and research & development. Staff has reviewed the use and finds it to be consistent with regulations and the General Plan. A medical (chiropractic) use is allowed within C- Mzoning with issuance of a Conditional Use Permit. • Said that the Zoning is C-M (Controlled Manufacturing). • Advised that the chiropractic clinic proposes operational hours between 9 a.m. and 5 p.m., Monday through Friday. There will be six part-time employees serving approximately 25 customers each day. • Said that there are 200 parking spaces on site at a ratio of 1 per 250 square feet of floor area. That is the ratio required for medical office uses. Therefore, existing Campbell Planning Commission Minutes for October 25, 2011 Page 3 parking meets the needs for this use. There is actually a surplus of available parking as the intensity of parking required for, and utilized by, other uses on site is lower. • Explained that there are existing cargo containers on site that are taking up six parking spaces. These containers represent a Zoning Code violation as they were installed without the required Conditional Use Permit. Staff has included a condition of approval that requires the containers either be removed or that the owner applies for the required Conditional Use Permit prior to issuance of the business license for this new tenant (chiropractic office). • Recommended approval of the Use Permit subject to the conditions of approval. Chair Roseberry opened the Public Hearing for Agenda Item No. 1. Mr. Tim Tom, Representative for the Applicant and Property Owners': • Thanked staff. • Said they have concerns over Condition 4. The issue of the storage containers just came to their attention on Friday when they received the staff report. • Added that they are asking for more time to remove the containers without adversely impacting this tenant's ability to secure his business license. Chair Roseberry asked Mr. Tim Tom if the owner of the storage containers is planning to submit for a Conditional Use Permit to retain the containers on site. Mr. Tim Tom said they are not planning to apply because the cost of a Use Permit application is prohibitive. Chair Roseberry asked Mr. Tim Tom how much additional time they are requesting to remove the containers from the site. Mr. Tim Tom said three to six months. Commissioner Gibbons asked City Attorney William Seligmann if there is any leverage available to the City to ensure the containers are removed. City Attorney William Seligmann said that leverage is greatly reduced once the business is established. It becomes a Code Enforcement issue. It would be easier if compliance is accomplished prior to establishment of the use. He said that one option is through a bonding or security requirement. That is an enforceable option. Chair Roseberry asked if the fees/bond are paid up front. City Attorney William Seligmann replied yes. Chair Roseberry closed the Public Hearing for Agenda Item No. 1. Commissioner Gibbons: Campbell Planning Commission Minutes for October 25, 2011 Page 4 • Suggested adding a condition of approval requiring that a bond be posted in an amount to be determined by the Community Development Director. • Added that the staff will be challenged with the enforcement of the required removal of these containers. Commissioner Ebner asked if Commissioner Gibbons was supportive of the request for an extended time frame for compliance. Commissioner Gibbons said she could support up to six months. Commissioner Alster asked staff if they knew how long these containers have been on this property. Director Kirk Heinrichs said staff has no idea how long they have been in place. Chair Roseberry sought clarification that there are two of them. Planning Manager Paul Kermoyan said yes. There are two containers located in the far corner of the site occupying several parking spaces. Commissioner Brennan asked staff if there is any reason not to deal with the containers through a bonding condition of approval. Director Kirk Heinrichs replied no. Commissioner Reynolds asked to whom these containers belong to. Commissioner Resnikoff said that he supports the requirement for a bond and allowing a reasonable time frame for compliance. Commissioner Ebner said he supports that as well for up to 90 days. Commissioner Resnikoff said he has no issue with allowing up to six months since the bond will encourage compliance. Motion: Upon motion of Commissioner Resnikoff, seconded by Commissioner Ebner, the Planning Commission adopted Resolution No. 4035 approving a Conditional Use Permit (PLN2011-211) to allow the establishment of a medical office (chiropractic clinic) on property located at 471 Division Street, with the modification to Condition 4 to require the posting of a bond to ensure removal of the storage containers on site within six months of this approval, by the following roll call vote: AYES: Alster, Brennan, Ebner, Gibbons, Resnikoff, Reynolds and Roseberry NOES: None ABSENT: None ABSTAIN: None Campbell Planning Commission Minutes for October 25, 2011 Page 5 Chair Roseberry advised that this action is final unless appealed in writing to the City Clerk within 10 calendar days. *** Chair Roseberry read Agenda Item No. 2 into the record as follows: 2. PLN2011-226 Public Hearing to consider the City-initiated application for Pre- PLN2011-267 Zoning (PLN2011-267) and General Plan Amendment City of (PLN2011-226) for the Cambrian No. 36 County pocket and the Campbell Central Park Neighborhood detachment currently within the City of San Jose and both proposed for annexation into the City of Campbell. Staff is recommending that this project be deemed Categorically Exempt under CEQA. Tentative City Council Meeting Date: November 15, 2011 Project Planner: Paul Kermoyan, Planning Manager Mr. Paul Kermoyan, Planning Manager, presented the staff report as follows: • Reported that tonight's action represents the beginning stages of the annexation/detachment process as State Law requires that pre-zoning be brought before the City Council. The Council will initiate annexation. • Explained that there are two parts to the project. There are the unincorporated County properties known as Cambrian No. 36 and there is the Central Park area that is within the City of San Jose. The City of San Jose has agreed to allow the Central Park area to be detached from San Jose and annexed into Campbell. • Described the two areas as follows: Cambrian No. 36 consists of approximately 80 acres with 333 parcels and a population of approximately 905. The San Jose Central Park area consists of approximately 16 acres with 95 parcels and a population of approximately 277. • Said that Cambrian No. 36 is part of the San Jose Island Annexation Program. The residents have always had Campbell mailing addresses. Residents were successful in petitioning the Cities of San Jose and Campbell. While in December 2010, the City of San Jose took action to annex Cambrian No. 36, they delayed execution of that action for six months to allow San Jose and Campbell to come to arevenue-neutral resolution to allow Cambrian No. 36 to annex into Campbell. In August, both cities came to terms. In September a neighborhood meeting was held by the City of Campbell. San Jose has agreed to let Campbell annex both Cambrian No. 36 and the Central Park area. • Described how the proposed annexation areas were evaluated. The first thing taken into consideration was the built environment or how the area is developed. Staff considered what the zoning ramifications might be. Explained that if there are 10,000 square foot lots with a zoning designation of R-1-5 that would create a situation where subdivisions are possible. Both permitted uses and development standards were evaluated. The City's General Plan and Zoning Code were considered as part of the analysis. Campbell Planning Commission Minutes for October 25, 2011 Page 6 • Explained that at Union & Bascom there are existing uses including a barber shop, cleaner, massage therapist, billiard hall, home furnishings, check cashing service, etc. On Camden Avenue, it is a vehicular dominated area with three traffic lanes in each direction. • Pointed out some differences in zoning designations for the three different jurisdictions. For example, in Campbell the R-1-8 Zoning represents single-family with minimum lots of 8,000 square feet. In San Jose, R-1-8 Zoning represents a density that allows a minimum lot size of 5,400 square feet. • Said that assigning the right zoning is important. If lots are zoned R-1-10, it could create many non-conforming lots. If lots are zoned R-1-6, it could result in too many lot splits. • Reiterated that staff took the time to compare development standards between the County, City of San Jose and Campbell. In both San Jose and County jurisdictions, there are no FAR standards. • Stated that staff is recommending that the Central Park area have a General Plan Land Use designation of Low-Density Residential with six units per gross acre. The Water District property is proposed as Public Facilities/Open Space. The Cambrian No. 36 residential properties are proposed for zoning as R-1-8. Campbell's C-1 (Neighborhood Commercial) is the equivalent of the existing C-N zoning. The Campbell General Plan classifies Neighborhood Commercial as consisting of small scale, lower intensity commercial uses with access both by auto and by foot. Camden Avenue is not conducive to pedestrians but rather is dependant upon vehicle traffic. • Described the proposed General Plan map changes with green representing Open Space; different shades of yellow for the R-1-6 and R-1-8 residential uses; pink for the Neighborhood Commercial and red for General Commercial. Commissioner Reynolds said he is aware that there has been a ton of support for this annexation. He asked if staff is aware of any opposition. Planning Manager Paul Kermoyan: • Said that there is some concern over some uses but no outright opposition. • Said that some uses are in limbo even under County regulations. When they transfer to City of Campbell, those same conditions will be in place. With existing non-conforming uses, nothing needs to happen unless they want to intensify their use. • Reiterated that he has heard no opposition to this annexation. Commissioner Reynolds thanked staff for their work on this annexation effort as it has been quite an involved process. Planning Manager Paul Kermoyan said that there is a web page on this annexation on the City's website to keep the public informed. Commissioner Resnikoff said he has no issues with the recommendations. He pointed out that there are a couple of abandoned properties. He asked if ownership is known. Campbell Planning Commission Minutes for October 25, 2011 Page 7 Planning Manager Paul Kermoyan said that one is boarded up and could become a Code Enforcement issue. Commissioner Resnikoff asked if staff would be opposed to zoning that abandoned residence for commercial use. Planning Manager Paul Kermoyan said that when the owner wants to redevelop this property it may be best to rebuild the site rather than to add on to what is there and a rezone could be considered at that time. Commissioner Resnikoff said that it doesn't look like a good site for residential use. Commissioner Gibbons said that it was nice to read the report and analysis. She said that this is a lovely neighborhood and area and that it is nice to be fought over. She asked staff if they find any need for a Specific Area Plan. Planning Manager Paul Kermoyan said that staff discussed that issue internally. He said that the Cambrian No. 36 street network is different from the Central Park area. He said that it was determined that both can be maintained with current standards. Director Kirk Heinrichs pointed out that there are currently no public improvements in place. Staff will want to talk with residents to see how they want to move forward. Chair Roseberry opened the Public Hearing for Agenda Item No. 2. Mr. Mike Krisman, Resident on Sweetbriar Drive: • Thanked community leader, Randi, for leadership and provision of office space over last several years. • Said that since the beginning, those residents interested in annexation into Campbell have enjoyed a great relationship with Campbell's staff. • Asked for approval of this pre-zoning. • Added that the proposed zoning looks appropriate and matches the feeling of their neighborhood. • Stated that this annexation offers a great opportunity to unify their neighborhood that currently falls under three different jurisdictions. They are one step closer to unifying the area now and he said he could not wait for that to happen. • Reported that 60 people from the neighborhood met just recently. Commissioner Reynolds: • Commended the residents for their efforts. He said he was impressed how well organized the residents have been. • Added that they took on such a large city (San Jose) and won. Mr. Mike Krisman said that it was a team effort - a group effort. Mr. Tom Bommarito, Attorney for Shell Station on Camden: • Reported that he represents the owners of the Shall Station. Campbell Planning Commission Minutes for October 25, 2011 Page 8 • Advised that they are concerned that a Use Permit is required for a service station use in the proposed zoning for their Camden site. • Pointed out that this service station was constructed in 1964 and has never been anything but a service station. They want to continue as a service station. This is a busy location. • Stated that Campbell has no zoning district whereby a service station is allowed without requiring a Use Permit. • Said that they are concerned that should they one day need to change their use in some manner the requirement for a Use Permit would become necessary. • Expressed concern over having to "jump hoops" through the Conditional Use Permit process. • Questioned why a Use Permit should ever become necessary when they have been in place for 46 years. Chair Roseberry said that there is a set of rules in place that will not change here tonight. He told Mr. Bommarito that his comments could be considered in the future. Mr. Tom Bommarito asked if their use is being "grandfathered" in. Planning Manager Paul Kermoyan replied yes. Director Kirk Heinrichs added that nothing needs to be done by this Shell station upon annexation into Campbell. They will continue to operate as they are now. To intensify the use, a Conditional Use Permit would be required. Mr. Tom Bommarito asked what he can do to start a process to allow a service station without requirement of a Conditional Use Permit in this zoning. Director Kirk Heinrichs reiterated that nothing is required to continue as this use will be grandfathered when annexed. Only when they need to change or modify the use of the site would a Conditional Use Permit be required. Commissioner Gibbons clarified that Mr. Bommarito is asking what can be done so a Use Permit would never be necessary. Director Kirk Heinrichs said staff is happy to set a meeting with Mr. Bommarito to discuss this further. Ms. Stephanie Politzer, Resident on Central Park Drive: • Advised that she is anticipating a remodel in the next few months and wonders from which jurisdiction she would pull permits. Planning Manager Paul Kermoyan: • Said that the County and City are in conversation about the transition of jurisdiction. • Said that recently Shell submitted a sign request for amini-mart to Campbell. Campbell referred that request to the County. Campbell Planning Commission Minutes for October 25, 2011 Page 9 • Suggested that any minor remodel or small addition should be directed to the property's current jurisdiction. Ms. Stephanie Politzer asked if she will be taxed to maintain the percolation ponds. Planning Manager Paul Kermoyan said that the Annexation Answer Book answers many such questions and can be found on the City's website. Director Kirk Heinrichs added that staff is willing to answer questions individually to determine where a property owner should go for services until the annexation has been completed. Chair Roseberry closed the Public Hearing for Agenda Item No. 2. Commissioner Gibbons asked staff if there are any other parcels with non-conforming uses. Planning Manager Paul Kermoyan said that there is an adult video store and a cigar business with on-site smoking. Commissioner Gibbons suggested having info about non-conforming uses included on the Annexation page of the City's website. She also suggested that there be a point person designated at all three jurisdictions (County, City of San Jose and City of Campbell) to deal with coordination during the transition until the annexation is completed. Planning Manager Paul Kermoyan advised that the last page of the Annexation Answer Book provides those contacts. He added that his own name and number is listed as the contact for the City of Campbell. Commissioner Alster asked for clarification that any existing non-conforming uses in place can continue after annexation. City Attorney William Seligmann said that is generally correct as long as the business was legally established. Campbell has an amortization period in its ordinance for adult-oriented businesses with a 2020 compliance date. There is also a process available for further extension. Planning Manager Paul Kermoyan added that the smoking establishment may have to comply sooner. He agreed that contact with that business in advance would be helpful. Commissioner Resnikoff asked how a building permit pulled under one jurisdiction might be dealt with if the work is not complete at time of annexation. Would they continue with the issuing agency or conclude with Campbell? Campbell Planning Commission Minutes for October 25, 2011 Page 10 Planning Manager Paul Kermoyan said that if the work on an approved permit has not begun that project could be treated differently than a project already underway. He said that these issues would have to be worked out through the transition. Motion: Upon motion of Commissioner Gibbons, seconded by Commissioner Alster, the Planning Commission adopted Resolution No. 4036 recommending that the City Council approve a General Plan designation of: ^ General Commercial for non-residential properties located at the intersection of Union and Bascom Avenues; ^ Neighborhood Commercial for non-residential properties located at the intersection of Union and Bascom Avenues; ^ Low Density Residential (less than 4.5 dwelling units per gross acre) for residential properties located within the Cambrian 36 County pocket; ^ Low Density Residential (less than 6 dwelling units per gross acre) for residential properties located within the Central Park detachment neighborhood; and ^ Open Space for the Water District property fronting McGlincy Lane, within the detachment neighborhood, by the following roll call vote: AYES: Alster, Brennan, Ebner, Gibbons, Resnikoff, Reynolds and Roseberry NOES: None ABSENT: None ABSTAIN: None Motion: Upon motion of Commissioner Gibbons, seconded by Commissioner Alster, the Planning Commission adopted Resolution No. 4037 recommending that the City Council approve a Pre-Zoning designation of: ^ C-2 (General Commercial) for non-residential properties located along Camden Avenue; ^ C-1 (Neighborhood Commercial) for non-residential properties located at the intersection of Union and Bascom Avenues; ^ R-1-8 (Single Family Residential, 8,000 square foot minimum lot sizes) for residential properties located within the Cambrian 36 County pocket; ^ R-1-6 (Single Family Residential, 6,000 square foot minimum lot sizes) for residential properties located within the Central Park detachment neighborhood; and ^ PF/OS (Public Facilities/Open Space) for the Water District property fronting McGlincy Lane, within the detachment neighborhood, by the following roll call vote: AYES: Alster, Brennan, Ebner, Gibbons, Resnikoff, Reynolds and Roseberry NOES: None Campbell Planning Commission Minutes for October 25, 2011 Page 11 ABSENT: None ABSTAIN: None Chair Roseberry advised that the Commission's action is advisory and this item will be considered for final action by the City Council at its meeting of November 15, 2011. He welcomed the annexation area residents to the City of Campbell. The audience applauded. *** Chair Roseberry read Agenda Item No. 3 into the record as follows: 3. PLN2011-111 Public Hearing to consider the application of Mr. Sunny Tam, Tam, S. AIA, for a Conditional Use Permit (PLN2011-111) to allow the establishment of a combined restaurant/nightclub (Dasha) with general alcohol sales, live entertainment, and late night activity on property located at 400 E. Campbell Avenue (Gaslighter Theatre) in the C-3 (Central Business District) Zoning District. Staff is recommending that this project be deemed Statutorily Exempt under CEQA. Planning Commission action final unless appealed in writing to the City Clerk within 10 calendar days. Project Planner: Steve Prosser, Associate Planner Mr. Steve Prosser, Assistant Planner, presented the staff report as follows: • Advised that the applicant is seeking approval of a Conditional Use Permit to establish a dual restaurant/lounge that includes hours to 2 a.m., general alcohol sales, late activities, live entertainment and outdoor seating. • Described the project site as being on the south side of E. Campbell Avenue. It is in the C-3 (Central Business District) Zoning District and also falls under the provisions of the Downtown Development Plan and the Downtown Alcohol Beverage Policy. • Added that a Conditional Use Permit is required for a new restaurant/lounge. • Stated that the proposal is for total occupancy of 256. The building is a circa 1920's building known as the Brewer's National Bank that is included on the City's 1984 Historic Resources Inventory. • Explained that a fagade restoration was reviewed and approved by the City's Historic Preservation Board, Planning Commission and City Council. No further changes to the fagade are proposed with this application. The fagade rehab is currently on hold pending this decision. The seismic upgrades are substantially complete. • Said that the applicant proposes to incorporate an outdoor seating area by expanding the sidewalk area using an existing loading zone area to provide space for outdoor seating. • Said that issues remaining include an existing exterior stairway, the placement of refuse containers and space for a grease interceptor as there is not sufficient space on site. Campbell Planning Commission Minutes for October 25, 2011 Page 12 • Explained that the proposal includes 226 seats comprised of 174 removable table and chairs and 52 bar seats at three bars. One bar would be at the entrance/lobby. There would also be a large bar on the second floor that would include a live entertainment stage, kitchen and restrooms. • Reiterated that this project is being reviewed based on the City's General Plan strategies, the Downtown Development Plan and the Downtown Alcohol Policy, which was just amended by Council on October 4, 2011. • Said that the proposal would have this location functioning as a restaurant until 10 p.m. After 10 p.m. the business would operate as a lounge use with live entertainment and dancing. • Reported that staff finds this proposal to be inconsistent with the Downtown Alcohol Policy, which does not permit alcohol sales after midnight. Additionally, nightclubs and/or lounges are highly discouraged by the DT Alcohol Policy. • Said that staff must recommend denial and the adoption of a resolution denying this Conditional Use Permit. Commissioner Ebner asked about the proposed expansion of the sidewalk area. Planner Steve Prosser said that the expanded sidewalk would be incorporated into an outdoor dining area. They propose to continue the wider adjacent sidewalk where currently there is a loading zone in front of this location. This expanded sidewalk would allow pedestrian access and space for outdoor seating. Commissioner Ebner asked if there would be any impact on the historic facade. Planner Steve Prosser said that expansion of the sidewalk may cause some need of minor repair of work already done at the base of the facade due to construction activity. Commissioner Resnikoff pointed out that if the outdoor seating is expanded the seating capacity would exceed 256. He asked if a parking study would therefore be required. Planner Steve Prosser said that the live entertainment is proposed until closing. There are no defined hours for the outdoor dining area. Director Kirk Heinrichs pointed out that per the DT Alcohol Policy, outdoor dining concludes at 11 p.m. Commissioner Gibbons sought verification from staff that the applicant's occupancy was modified from their original request. Planner Steve Prosser replied yes. Their original request was for approximately 500 people. Staff was concerned and told the applicant that a Parking Study would be necessary to determine if that capacity could be supported. Due to the time and cost factors of a Parking Study, the applicant instead reduced their proposed occupancy. Commissioner Gibbons: Campbell Planning Commission Minutes for October 25, 2011 Page 13 • Pointed out that the applicant has indicated in their proposal that they require occupancy of 500. • Asked whether staff expects the applicant to come back later to expand their occupancy. Planner Steve Prosser said it is possible. Chair Roseberry opened the Public Hearing for Agenda Item No. 3. Ms. Tracey Driver, Resident on S. First Street: • Advised that she lives across the street from the First Street Garage and bought her home about a year ago. • Stated that she enjoys the vibrancy of the area. • Said that an additional 200 plus persons in the DT would result in a public nuisance. • Pointed out that the existing Police Department staffing is already taxed with the fights and brawls that occur in the downtown. The PD is understaffed. • Asked the Commission to follow the staff recommendation to deny this request. Mr. Barry Shilman, Resident on N. Third Street: • Stated that there are several reasons he is asking for denial of this request. • Said that if this Use Permit is approved there are impacts. One is an increase in problems with late night revelers. • Reminded that the downtown core is very small. This kind of intensity added is too much. • Said that the cost to the City is increased demand on police services. • Stated that this is the wrong way to go. • Pointed out that the last Use Permit for this site was discussed five years ago and there have been dramatic changes since that time. There is more evening traffic and less daytime activity. • Suggested that a lounge is not the right use. Ms. Jackie Costanzo, Resident on Alice Avenue: • Read from the updated Downtown Campbell Alcohol Policy adopted on October 4, 2011, that mentions things such as overconcentration, cumulative impacts and undesirable uses. • Said that this use will cost tax dollars through the cost of law enforcement. These are austere budget times. • Reminded that the DARE program was eliminated by the Police Department due to budget cuts. • Stated that an empty building would be better than having 256 extra people downtown. The risk outweighs the benefit for our city. • Asked that this request be denied. Ms. Kereli Sengstack, Resident on S. First Street: Campbell Planning Commission Minutes for October 25, 2011 Page 14 • Acknowledged the General Plan Vision, specifically LUT 5.1 that deals with neighborhood integrity. • Pointed out that the business plan provided by this applicant describes a "Las Vegas" style club. • Congratulated the residents of the annexation areas. • Said that overtaxing the Police Department would result in impacts on response times to other parts of the community. • Provided signatures from 57 residents who also oppose this application and support staff's recommendation for denial of this Use Permit. Ms. Catherine Hickinbotham, Resident on Harrison Avenue: • Said she would be very brief. • Asked the Commission to follow the staff recommendation to deny this use. Mr. Eric Reinhard, Resident on S. First Street: • Advised that he is a 12 year resident of Campbell. • Said he opposes this application. • Echoed the opinions of staff, police and neighbors that there are public safety issues. • Displayed three documents: Staff report from February 2009 when the Downtown Campbell Alcohol Policy was presented; a September 1011 memo from Chief Finch to the City Manager about calls to the downtown and a document from the San Jose Office of the California Highway Patrol that advises that Campbell is considered to be a high risk environment for DUI arrests. Mr. Don Drexel, Representative for Owner of 368 E. Campbell Avenue: • Advised that he represents both owners and lessees in the downtown. • Said that this addition to the downtown would cause a lot of problems. • Reported that there is private parking on their property that cannot be chained off as there is an easement to access the alley behind the businesses adjacent. • Stated that there are already lots of problems including cars being left overnight on their lot that they must have towed in the morning. • Read from an email from the business owner of Green Planet Yarn. She has experienced finding her car having been vomited and/or urinated upon. • Asked that, if this use is to be allowed, the operator be conditioned to provide security and clean up. • Said that originally this site was proposed for an upscale restaurant. Now it is party time. Mr. Ed Sengstack, Resident on S. First Street: • Said that he is a 16-year resident. • Thanks the Commission for the opportunity to address his support of staff's position to deny this use. • Said that the proposal is non-compliant with the City's General Plan as required by law. Campbell Planning Commission Minutes for October 25, 2011 Page 15 • Said that there will be cumulative effect with other new restaurants including one pizza and one sushi. Additionally, the Oddfellows site will house restaurant(s). • Said that there is no balance as far as the use of downtown. Most of the use occurs at night with little activity during the daytime. That equals no balance, which is inconsistent with the Downtown Campbell Alcohol Beverage Policy. • Stated that per the memo from the Police Chief, there is several years' worth of data available that cannot be ignored. Not just the downtown residents but rather the entire community pays the price between the hours of 11 p.m. and 6 a.m. • Reminded that the DT Alcohol Policy was just updated on October 4, 2011. • Urged denial of this application and the sending of a message to Council that the current problems must be addressed before any exceptions to the policy should be considered. Mr. Neil Locke, Resident on N. Second Street: • Thanked staff for supporting this neighborhood. • Said he has been a resident for 20 years. • Stated his concerns over traffic and parking impacts. • Pointed out that with the new neighborhood being invited to join the City, there will be more demand on Police services. • Reported that recently five drunks were standing in front of his home in the early morning hours talking about how wonderful The Spot was. • Advised that his wife gets up early in the morning and often walks the neighborhood picking up the recyclables strewn in the street and parking lot by downtown patrons. • Urged the staff to stand strong and reject this application. Mr. Matt Klumchuk, Proposed Business Owner, 400 E. Campbell Avenue: • Said that he comes from a different perspective - an economic perspective. • Reported that he has invested in this location since December 2008. • Added that the economic times were and are different and he didn't anticipate the market. • Said that he fell in love with this building and the City of Campbell. • Advised that he has spent thousands of hours on this project and will not see any return for 10 years out. • Stated that over the last three years he has been seeking to find a use that the City could accept easily. However, such a use does not exist. He said he had reached out to restaurant owners, retailers, banks, etc. He has worked with several brokers but did not find a tenant that could justify the investment necessary to complete this project. • Said that over a million dollars have already been spent on this location and to complete the improvements will cost hundreds of thousands more. • Said that they have secured the best restoration architect and this will be a beautiful building that will contribute jobs and tax revenue to the city. • Stated that the tenant they have found is the best available out there with a business plan to justify the project. Campbell Planning Commission Minutes for October 25, 2011 Page 16 Ms. Stephanie Politzer, Resident on Central Park Drive: • Said that she can sympathize with the people who live close to this. • Suggested hours closer to midnight and the operator being responsible for his footprint. • Stated that it would be nice to have a place to go to listen to music instead of having to drive to San Francisco or Oakland. Ms. Monica: • Said that she has attended city meetings. • Said that as far as this proposal is concerned, nothing would be better than something at this time. • Said that while she can feel bad about their financial investments -that's not her problem. Mr. Ray Shafazand, Proposed Business Operator: • Said he is the applicant and lease holder. • Reported that he studied this building for six months before signing the lease. • Stated that he is the best use possible for this location. • Advised that he wanted to provide a club atmosphere much like Tao in New York City, which is an upscale restaurant/lounge where occasionally people dance. • Added that he operates Myth in downtown San Jose that operates similarly to what he is planning here. It took off as a phenomenon. • Recounted that he has a group of doctors with a standing table reserved for each Thursday and Friday night. • Informed that he is knowledgeable about security and knows his business. A responsible operator sets the tone using things such as dress codes or cover charges to control the crowd. • Added that at his San Jose location he is responsible for 200 feet around his club for keeping it clean. There are lots of regulations to follow and over the seven years he's been in San Jose, operating 7 days a week, there have only been three incidents. • Said that he has a vision for this historic building. You can feel the history in there. That place cannot be locked up/boarded up like this. • Said that he will operate an upscale restaurant with a crowd over 30. That group creates fewer problems. • Reiterated that the proposed tenant improvements still necessary will cost $1.2 million. The landlord has already done the seismic retrofit. • Said that they will employ between 50 and 70 people locally. This will be a very beautiful project featuring Eurasian cuisine. • Explained that the reason for three bars is this. The front bar is for people waiting to be seated. Both downstairs and upstairs are separate bars. • Assured that the project is well thought out and well designed. Commissioner Reynolds asked Mr. Shafazand what assurance he can offer that the crowd he draws to this venue will be over 30. He added that the maturity level is different between 21 to 25 year olds versus 30 or older crowds. Campbell Planning Commission Minutes for October 25, 2011 Page 17 Mr. Ray Shafazand: • Pointed out that the $1.2 million they will spend to renovate this site cannot be regained by selling beer for $3.00. • Added that they will heavily enforce the dress code. • Suggested that anyone interested come see his location in San Jose. People stand in line for hours. • Said that they have a lot of dinner with entertainment combined. Their kitchen is open late. • Stated that the type of music played determines the age group attracted. Hip hop and rap attracts the young crowd and classic rock and house music does not. • Said that he only markets to 30 plus and corporate-types. Commissioner Reynolds asked Mr. Ray Shafazand if he had done any outreach to the community other than staff. Mr. Ray Shafazand: • Replied no. • Added that he has joined the DCBA (Downtown Campbell Business Association) and the Campbell Chamber of Commerce but has been busy with his three other projects. • Said that he was also planning on an open house event on site. • Reminded that he has experience providing security policy for a major hotel group. • Said that responsible drinking requires a very hands-on manager. • Reiterated that he has had no citations in 7 years and no issues. Commissioner Gibbons asked Mr. Ray Shafazand what type of ABC license he would secure for this location. Mr. Ray Shafazand said it is a Type 47 for food and alcohol. Commissioner Gibbons asked Mr. Ray Shafazand about any proposal to climb from an occupancy of 256 to 500 in the future. Mr. Ray Shafazand: • Replied no. Reason being -lesson learned. • Explained that one location opened about three months ago has a capacity at 472. However, he has discovered that he earns the same amount with a maximum of 250 persons than with 472. Having 472 is not as comfortable and he now limits that location to 280. • Said since he earns the same money, why have more people on site. Commissioner Gibbons asked what live entertainment would be offered. Mr. Ray Shafazand: • Said that they will use DJ's and live entertainment. Campbell Planning Commission Minutes for October 25, 2011 Page 18 • Said that during dinner time they might have a singer and/or a three-piece band playing soft rock and oldies. • Added that live entertainment offers an incentive for couples to go out and have a good time. Commissioner Resnikoff asked about the 174 seats that are removable. What's left after 10 p.m. Mr. Ray Shafazand said that the majority of dining seats are left available for dining. He said that they might be removed for an event such as a bar mitzvah or some other special party to allow for a dance area. Mr. Bill Gates, Attorney for Proposed Tenant: • Suggested that this project is consistent with Campbell's General Plan and that evening activities including restaurants and special uses are encouraged. • Added that the project also complies with the Downtown Development Plan that calls for ground-level community activities that are diverse, interesting and distinctive. • Agreed that there are issues with the Downtown Campbell Alcohol Policy but those can be worked out. • Stated that the problem is security and advised that he is working that issue out with Chief Finch on how to deal with policing issues between 10 p.m. and about 3 a.m. • Stated that having live entertainment for three hours does not make this a nightclub. It is simply a restaurant with three hours' of entertainment. In the staff report, this is considered the equivalent of a nightclub or lounge. • Said that the DT Alcohol Policy discourages nightclubs/lounges but does not prohibit them. It strongly recommends that no alcohol be sold beyond 12 a.m. but does not prohibit it. • Reminded that no additional parking is required and this is a beautiful building that will offer both employment to a large number of people and money to this town. • Said he was available to answer questions. Commissioner Ebner asked who would pay for extra policing per Mr. Bill Gates' conversations with Chief Finch. Mr. Bill Gates: • Said that the proposal under consideration is to have retired Campbell officers who are reserve officers hired to work on Thursday, Friday and Saturday night from late evening to closing. There are currently three officers available, which would add three to closing. • Said that this plan has been discussed with Chief Finch as well as with other business owners. The business owners will pay the cost. Commissioner Ebner asked where the 57 employees would park. He pointed out that if the sidewalk dining area is added, that will also increase the parking demand. Campbell Planning Commission Minutes for October 25, 2011 Page 19 Mr, Bill Gates reminded that the existing loading zone will be converted to sidewalk where outdoor dining can occur. He advised that 256 represents no expansion of use so no additional parking would be required per the staff report. Commissioner Alster asked Mr. Bill Gates if he has also met with members of Council and, if so, which ones. Mr. Bill Gates said he had met individually with all of them except for Councilman Kotowski. Chair Roseberry said that while Mr. Ray Shafazand may be a responsible operator, there is the challenge that the Use Permit goes with the property and not the owner. Therefore, if Mr. Ray Shafazand were to sell his business, the City could end up with a less responsible operator at this location. Mr. Bill Gates: • Said that is not his problem. • Added that the conditions for the Use Permit can change to control the use. • Reported that he represents most of the operators of San Jose's downtown nightclubs and this operator (Mr. Ray Shafazand) has a good record. Chair Roseberry closed the Public Hearing for Agenda Item No. 3. Commissioner Brennan: • Thanked the applicant and his attorney for their presentations. • Said that this seems like an open and shut case to him as the Downtown Campbell Alcohol Policy makes its spirit and guidelines clear and this proposed use is not consistent with them. • Stated that this community has an identity. • Pointed out that Council has more discretion than does this Commission and he does not see how the Commission can support this application. Commissioner Resnikoff: • Said that he sees serious problems with this application. • Added that he expected the issues to be with hours and parking but sees many inconsistencies with the Downtown policies. • Stated that he understands the economics with an empty building but finds it incumbent for the Commission to compare the business model to this policy. • Said that the policy offers strong discouragement of new nightclubs and lounges. This proposed use becomes a lounge after 10 p.m. and violates closing hours. Additionally, there is not a full menu offered throughout the evening and no limit on live entertainment. The policy does not allow a restaurant to be converted to a bar after hours. This use becomes a lounge at 10 p.m. This straightforwardly violates the policy. • Said that if this applicant works with the Police Department on security issues, they can also fit their business plan to meet the Downtown Policy. Campbell Planning Commission Minutes for October 25, 2011 Page 20 • Said that incorporating outside seating will require a deeper look at parking. Capacity of 256 is the maximum number allowed without having a parking study of overall parking in the area. • Pointed out that not enough people use the parking garages at night. • Reminded that the previous approval for this site required the implementation of valet parking and incentives to use the garage. • Suggested that traffic leaving the garage be diverted north rather than south onto First Street to direct them away from the residential uses on the south. That way traffic can make its way to either Bascom Avenue in one direction or Winchester Boulevard in the other from E. Campbell Avenue. • Reported that he resides in the downtown area although he sees less of an impact being on the north side rather than the south side of downtown. Commissioner Alster: • Said that she will not vote for this application but rather is against it. • Reported that she had just recently completed her mandatory ethics training as is required by all Commissioners. The role of an appointed official is to improve the quality of life and represent the interests of the public. • Added that she is hearing that loud and clear. • Stated that this request goes against the Downtown Alcohol Policy. Commissioner Gibbons: • Said that the Commission is fortunate to have such active participation in this evening's hearing. She said that excellent information has been provided. • Stated that the most important thing the Planning Commission can do is to be sure and provide full ramifications of a request to Council. The Commission has the responsibility to look at the big picture and prepare an evaluation of what this project means to the community. • Said that the Downtown Alcohol Policy is not sufficient to evaluate this application. It is the Commission's burden to play devil's advocate. • Read the City's vision from the General Plan including the need for decisions to be "defensible". The purpose of the General Plan is to serve as a guide, to be visionary and realistic as well as comprehensive in long range and scope. There are definitions of what neighborhoods are and require uses to be complimentary in style. • Added that the Zoning Ordinance as well as Parking Ordinance, Noise Ordinance, Use Permit, Downtown Development Plan, C-3 Zoning and Downtown Alcohol Policy are tools to be used in making decisions. All applications that come before this Commission require this body to evaluate using these tools. The Commission's job is to enforce regulations including when there are grey areas between personal business rights versus community rights. • Said that there are several considerations. One is parking, which has so much to do with success of all businesses. There is proximity to Light Rail. There have been substantive changes since the original Use Permit was approved for this site in 2006. What must be considered is what is applicable now and how it has changed. • Reminded that she has served for 15 years on this Commission. Campbell Planning Commission Minutes for October 25, 2011 Page 21 • Said that Police reports were used to create the original Downtown Alcohol Policy in 2008. At that time, the Planning Commission felt it had real limitations on what they could do when reviewing new uses for the downtown and that some tool or policy was needed. After the Downtown Alcohol Policy was adopted, there was a reduction in hours to 11 p.m., midnight with issuance of a Use Permit. • Pointed out that this proposed use, as per the business plan description provided by the applicant, is a bar. It is a restaurant in name only. • Reminded that she is an architect and that she had looked up the requirements for restaurants. In general, 51 percent of the floor area is for seating. The rest is used by employees, kitchens, storage, dry storage, garbage removal, etc. • Added that she doesn't see that ratio in use of floor space with this plan. She sees a bar. • Said that with the definition of this business and an assessment of its plan, in her evaluation it is clear that this proposal does not comply with the General Plan, Zoning, neighborhood and community interests of Campbell or with the Downtown Alcohol Policy. • Concluded that she would not support this application. Commissioner Reynolds: • Expressed his thanks to his colleagues on the Commission for their perspectives. • Said he will speak from the heart. He has listened to the community and has heard their concerns about urinating in public, vandalism, drunk in public and DUI. Those are criminal acts. Acts of criminals but not of these business owners. • Said that it is possible that the Commission would be denying this application because of activities of criminals. • Added that residents also have rights to a good night's sleep, seven days a week. Citizens living near the downtown have the right to not smell the stench of urine on their street or pick up bottles strewn in their neighborhood. • Stated that property owners/investors have rights to profit on investment. • Said that it is unfortunate that this body is not able to expand penalties on those types of crimes to reduce them. • Said that he is a promoter of small town charm. This use will not promote that. • Said that the applicant compared his proposed use for Campbell to a club he enjoys that is located in New York City. Campbell is not New York City. • Advised that he will not support this request and encouraged the applicant to prepare a new proposal that fits better into this community. Chair Roseberry: • Pointed out that a lot of information has been provided here tonight. • Thanked everyone for participating since it is often just the Commissioners that are present at these hearings so he thanked people for coming out this evening. • Said that a lot of good points have been made. Nuisances have been mentioned as well as issues such as overtaxed infrastructures, Police resources and parking. • Stressed the need for balance in the downtown due to the intensity and small size of the downtown area and difficulties with enforcement. Campbell Planning Commission Minutes for October 25, 2011 Page 22 • Said that the applicant has made a good presentation and has a pretty well thought out project that was well presented. It looks like a nice place. • Expressed appreciation for the quantitative facts provided by the "tech geek." • Said that there are impacts on other downtown businesses and perhaps private security can help. Tangible solutions have been offered including use of retired Campbell police officers providing private security. • Said that the uses downtown create a cumulative effect. Campbell has a problem after 10 p.m. He added that while he typically goes to bed early, coming downtown between 1:30 and 2 a.m. is a real eye-opener that makes him question, "Where am I?" It is a different place. • Said that taking into consideration all that has been heard and discussions held this evening, a motion should be offered and decision made on what is before us tonight. Motion: Upon motion of Commissioner Reynolds, seconded by Commissioner Gibbons, the Planning Commission adopted Resolution No. 4038 denying a Conditional Use Permit (PLN2011- 111) to allow the establishment of a combined restaurant/nightclub (Dasha) with general alcohol sales, live entertainment, and late night activity on property located at 400 E. Campbell Avenue, by the following roll call vote: AYES: Alster, Brennan, Ebner, Gibbons, Resnikoff, Reynolds and Roseberry NOES: None ABSENT: None ABSTAIN: None Chair Roseberry 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 Kirk Heinrichs had nothing to add to his written report. ADJOURNMENT The Planning Commission meeting adjourned at 10:02 p.m. to the next Regular Planning Commission Meeting of November 8, 2011. Campbell Planning Commission Minutes for October 25, 2011 Page 23 SUBMITTED BY: orin inn, Recording Secretary APPROVED BY: r, ~Cvat~ Bob Rosebe~.c,,Chair ATTEST: ~~ Kirl~einricH~s, Secretary