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PC Res 4388RESOLUTION NO. 4388 BEING A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CAMPBELL RECOMMENDING THAT THE CITY COUNCIL APPROVE A CONDITIONAL USE PERMIT (PLN2017- 161) AND A MODIFICATION TO A PREVIOUSLY APPROVED ADMINISTRATIVE PLANNED DEVELOPMENT PERMIT (PLN2015- 311) TO ALLOW BEER AND WINE SERVICE ("LIQUOR ESTABLISHMENT") IN CONJUNCTION WITH AN EXISTING RESTAURANT ON PROPERTY LOCATED AT 2125 S. WINCHESTER BLVD., STE. 120. FILE NO.: PLN2017-161 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 Planning Commission finds as follows with regard to file numbers PLN2017-161 The project site is the Merrill Gardens Residences at Campbell, amixed-use assisted living senior housing community located along Winchester Boulevard, which is composed of 126 age-restricted apartment units, a dementia care facility, and approximately 17,000 square-feet of ground floor retail space. 2. 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. 3. The project site is also within the boundaries of the Winchester Boulevard Master Plan. 4. 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". 5. The Master Plan was adopted pursuant to General Plan Strategy LUT-5.3j in furtherance 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. 6. 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. As such, the existing restaurant was found to be an allowable use, consistent with the Master Plan. ...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. Planning Commission Resolution No. 4388 Page 2 PLN2017-161- Conditional Use Permit /Mod. to Admin. P-D Permit 2125 S. Winchester Blvd., Ste. 120 7. On October 22, 2014, the Community Development Director approved an Administrative Planned Development Permit and Parking Modification Permit to allow establishment of Scramblz, a 49-seat breakfast and lunch restaurant. The approval did not provide for alcohol service, outdoor seating, or live entertainment, as stipulated by the conditions of approval. 8. The Community Development Director's approval of the Scramblz restaurant was predicated on the Planning Commission's acceptance of a shared parking arrangement between Scramblz and Bottle and Bottega. These two businesses operate with alternating business hours such that Scramblz is open to the public in the mornings and early afternoon (7 AM to 2 PM) while Bottle and Bottega hold its art classes in the later afternoon and evening (2 PM to 9 PM), minimizing parking overlap between the two uses. 9. The alternating hours arrangement was formalized through an agreement with the property ownership to only subsequently lease the restaurant and art studio spaces to tenants who can abide by the approved business hours, and to lease the remaining vacant tenant space to a retail tenant (or a use with a comparable or lesser parking demand). 10.On November 10, 2015, the Planning Commission adopted Resolution No. 4262 approving a Modification (PLN2015-311) to a previously approved Administrative Planned Development Permit (PLN2014-159) and a Parking Modification Permit (PLN2015-312) to allow outdoor seating, an increase in the number of approved seats, and a reduction in the number of required on-site parking spaces. 11.On February 2, 2016, the City Council adopted Resolution No. 11945, denying an appeal and upholding the Planning Commission's November 10, 2015 decision. 12. The Proposed Project is an application for a Conditional Use Permit (PLN2017-161) and a Modification to apreviously-approved Administrative Planned Development Permit (PLN2015-311) to allow beer and wine service ("liquor establishment") in conjunction with an existing restaurant. 13. Pursuant to the Winchester Boulevard Master Plan, a restaurant is an allowable land use subject to approval of an Administrative Planned Development Permit, except that alcohol service shall require approval of a Conditional Use permit 14. The approval of a Conditional Use Permit incorporates applicable operational standards of the Downtown Alcohol Beverage Policy. 15. Alcohol beverage service in the restaurant shall be ancillary and subordinate to the primary purpose of serving food. 16. 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 Planning Commission Resolution No. 4388 Page 3 PLN2017-161- Conditional Use Permit /Mod. to Admin. P-D Permit 2125 S. Winchester Blvd., Ste. 120 establishments, support for neighborhood-serving businesses, and protection of surrounding residential neighborhoods. 17. The over-concentration of late night alcohol serving establishments within a compact downtown district can create a cumulative impact that overwhelms the area creating an undesirable result such as drunk in public, vandalism, and disorderly conduct. 18. Alcohol beverage service in the restaurant shall be ancillary and subordinate to the primary purpose of serving food. 19.A public closing time of 2:00 PM for the restaurant will help ensure that alcohol service remains ancillary to food service. 20. Winchester Boulevard has far fewer alcohol-serving establishments than Downtown Campbell proper, according to ABC records. Within 500 feet of the project site, there are only two restaurants with alcohol service; Casa Lupe and Coach's Sports Bar and Grill, both of which maintain "general" Type 47 license allowing service of distilled spirits. Bottle and Bodega, at Merrill Gardens, also maintains a Type 42 license allowing service of beer and wine in association with art classes. As a result, the distribution of alcohol-serving establishments in the immediate vicinity does not pose an overconcentration, particularly as the proposal would allow only beer and wine service. 21. The Planning Commission's review of the proposed project encompassed zoning and General Plan land use conformance, noise impacts, parking, property maintenance, odors, security and enforcement. Based upon the foregoing findings of fact, the Planning Commission further finds and concludes that: 1. The proposed use is allowed within the applicable zoning district with Conditional Use Permit approval, and complies with all other applicable provisions of this Zoning Code and the Campbell Municipal Code; 2. The proposed use is consistent with the General Plan; 3. The proposed site is adequate in terms of size and shape to accommodate the fences and walls, landscaping, parking and loading facilities, yards, and other development features required in order to integrate the use with uses in the surrounding area; 4. The proposed site is adequately served by streets of sufficient capacity to carry the kind and quantity of traffic the use would be expected to generate; 5. The design, location, size, and operating characteristics of the proposed use are compatible with the existing and future land uses on-site and in the vicinity of the subject property; 6. The establishment, maintenance, or operation of the proposed use at the location proposed will not be detrimental to the comfort, health, morals, peace, safety, or Planning Commission Resolution No. 4388 Page 4 PLN2017-161- Conditional Use Permit /Mod. to Admin. P-D Permit 2125 S. Winchester Blvd., Ste. 120 general welfare of persons residing or working in the neighborhood of the proposed use, or be detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the city; 7. The establishment will be consistent with the Campbell Downtown Alcohol Policy; 8. As conditioned, the establishment will not result in an over-concentration of these uses in the surrounding area; 9. As conditioned, the establishment will not create a nuisance due to litter, noise, traffic, vandalism, or other factors; 10.As conditioned, the establishment will not significantly disturb the peace and enjoyment of the nearby residential neighborhood; 11. As conditioned, the establishment will not significantly increase the demand on city services; 12. The proposed development or uses clearly would result in a more desirable environment and use of land than would be possible under any other zoning district classification; 13. The proposed development would be compatible with the general plan and will aid in the harmonious development of the immediate area; 14. The proposed development would not be detrimental to the health, safety or welfare of the neighborhood or of the city as a whole; and 15. The project is Categorically Exempt under Section 15060(c)(2) of the California Environment Quality Act (CEQA), pertaining to activities that will not result in a direct or reasonably foreseeable indirect physical change to the environment. THEREFORE, BE IT RESOLVED that the Planning Commission recommends that the City Council approve a Conditional Use Permit (PLN2017-161) and a Modification to a previously-approved Administrative Planned Development Permit (PLN2015-311) to allow beer and wine service ("liquor establishment") in conjunction with an existing restaurant on property located at 2125 S. Winchester Blvd., Ste. 120, subject to the attached Recommended Conditions of Approval (attached Exhibit "A"). PASSED AND ADOPTED this 27th day of June, 2017, by the following roll call vote: AYES: Commissioners: Reynolds, Kendall, Hernandez, Rivlin, Young, and Dodd NOES: Commissioners: ABSENT: Commissioners: Rich ABSTAIN: Commissioners: Planning Commission Resolution No. 4388 Page 5 PLN2017-161- Conditional Use Permit /Mod. to Admin. P-D Permit 2125 S. Winchester Blvd., Ste. 120 /~ APPROVED: %~~~'~ ~ ~~~~ ~r ~~~ vonne Kendall, Chair ATTEST: Paul Kermoyan, Secretary EXHIBIT A RECOMMENDED CONDITIONS OF APPROVAL Conditional Use Permit (PLN2017-161) Modification to an Administrative Planned Development Permit Where approval by the Director of Community Development, City Engineer, Public Works Director, City Attorney or Fire Department is required, that review shall be for compliance with all applicable conditions of approval, adopted policies and guidelines, ordinances, laws and regulations and accepted engineering practices for the item under review. Additionally, the applicant is hereby notified that he/she is required to comply with all applicable Codes or Ordinances of the City of Campbell and the State of California that pertain to this development and are not herein specified. COMMUNITY DEVELOPMENT DEPARTMENT Planning Division Approved Project: Approval is granted for a Conditional Use Permit (PLN2017-161) and a Modification to apreviously-approved Administrative Planned Development Permit (PLN2015-311) to allow beer and wine service ("liquor establishment") in conjunction with an existing restaurant on property located at 2125 S. Winchester Blvd., Ste. 120. The project shall substantially conform to the Project Plans and Project Description stamped as received by the Planning Division on May 18, 2017, respectively, except as may be modified by the conditions of approval contained herein. 2. Approval Expiration: The Approval granted herein shall be valid for one year from the date of City Council action. Within this one-year period a Type 41 (On-Sale Beer and Wine for Bona Fide Public Eating Place) license from the Department of Alcoholic Beverage Control (ABC) must be secured. Failure to meet this deadline will result in the Approval being rendered void. Once established, this Approval shall be valid in perpetuity on the property, subject to continued maintenance of the Type 41 License. Discontinuation of alcohol service for a continuous period of twelve months, as evidenced by surrender or revocation of the ABC license, shall void the Approval. If this Approval expires or is voided, operation of the restaurant shall revert back to the Modified Administrative Planned Development Permit (PLN2015-311) as approved by City Council Resolution No. 11945. 3. Previous Conditions of Approval: Upon the effective date of this Approval, the previously approved Conditions of Approval provided in City Council Resolution No. 11945- upholding the Planning Commission's approval of a Modified Administrative Planned Development Permit (PLN2015-311)-shall be void and shall permanently be superseded in their entirety by the Conditions of Approval specified herein, except as noted by Condition No. 2. 4. Parkin : As stated in the letter from Merrill Gardens at Campbell, LLC (William D. Pettit Jr.), stamped as received by the Planning Division on September 16, 2014, the property agrees to the following restrictions in association with the Parking Modification Permit: a. The restaurant use in Building A, Suite 120, will be restricted to a 2:00 p.m. closing time or earlier. If the current tenant is replaced by another restaurant, the same closing time restriction will continue to apply. Exhibit A -Conditions of Approval ~ 2125 S. Winchester Blvd., Ste. 120 PLN2017-161 ~ Conditional Use Permit /Modification to a Admin. P-D Permit Paae 2 b. The large studio use in Building A, Suite 110/160, will be restricted to a 2:00 pm. opening time or later. If the current tenant is replaced by another use, the same opening time restriction will continue to apply. c. The property owner agrees to inform future potential tenants of these two tenant spaces of the time restrictions and any other conditions imposed as part of the Parking Modification Permits prior to leasing, and to include the restrictions in future lease agreements for these spaces as applicable. d. The property owner understands and agrees that remaining vacant tenant spaces will need to be leased to retail uses, or uses with the same or lower parking demand than retail. No additional restaurant uses will be allowed. 5. Operational Standards: Consistent with Downtown Alcohol Beverage Policy and other City standards, any restaurant operating pursuant to the Conditional Use Permit approved herein shall conform to the following operational standards. Significant deviations from these standards, as determined by the Community Development Director, shall require the appropriate approval(s) by the City Council: a. Approved Use: The approved use is a "restaurants or cafe" with ancillary beer and wine sales ("liquor establishment") as defined by the Campbell Municipal Code. At no time shall the restaurant be operated as a "fast food" restaurant or as a stand-alone bar/tavern. b. Restaurant Seating/Patron Occupancy: Total indoor patron occupancy shall be limited to seventy-five (75) seated persons, subject to the maximum occupancy capacities of certain rooms as determined by the California Building Code (CBC). At no time shall there be more than 75 patrons within the establishment, excluding those waiting for service. It is the responsibility of the business owner to provide adequate entrance controls to ensure that patron occupancy is not exceeded. c. Maximum Occupancy Sign: The business owner shall install a new maximum occupancy sign of a size to be determined by the Community Development Director, conspicuously posted within the premises, which shall include the maximum occupancy noted herein and include a visual depiction of the Floor Plan approved by the Community Development Director. d. Bar Area Seating: No bar area, as defined by the Campbell Municipal Code, is permitted in association with the restaurant. The dining counter is part of the restaurant's dining area and shall not be considered a bar. e. Floor Plan: All chairs and tables shall consistent of standard-height furniture (i.e., not "high-top"). All tables and chairs shall be placed in such a manner to allow sufficient area for dining and shall not be stacked or removed from the dining area or placed outside. At no time shall the seating be reconfigured to created large open spaces for patrons to congregate, dance, drink, or socialize. Exhibit A -Conditions of Approval ~ 2125 S. Winchester Blvd., Ste. 120 PLN2017-161 ~ Conditional Use Permit /Modification to a Admin. P-D Permit Page 3 Hours of Operation: Hours of operation shall be as follows. By the end of 'Business Hours' all patrons shall have exited the restaurant. By the end of the 'Operational Hours' all employees shall be off the premises. • Business Hours: 7:00 AM - 2:00 PM, Daily • Operational Hours: 6:00 AM - 4:00 PM, Daily These hours are restricted in perpetuity, in accordance with the letter from Merrill Gardens, such that the business/public hours between this use/tenant space and art studio use in Suite 110 shall not overlap. g. Food Service: Full menu food service shall be provided at all times during the Business Hours (i.e., the kitchen shall not be closed). h. Alcohol Beverage Service: Alcohol beverage service shall only be allowed in conjunction with food service. Live Entertainment: No live entertainment is permitted as part of the Modified Administrative Planned Development Permit approval, including live music, disc jockey, karaoke, and dancing. Liquor License: The applicant shall obtain and maintain in good standing a Type 41 (On-Sale Beer and Wine for Bona Fide Public Eating Place) license from the State Department of Alcoholic Beverage Control for the sale of beer and wine beverages in conjunction with the restaurant. The license shall include the Business Hour restrictions consistent with the Conditional Use Permit approved herein. A copy of the issued license shall be provided to the Community Development Department prior to issuance of a Business License. k. Employee Training: The establishment shall use an employee training manual that addresses alcoholic beverage service consistent with the standards of the California Restaurant Association and the Department of Alcoholic Beverage Control. Designated Driver Program: If required by the Community Development Director, the establishment shall maintain and actively promote a designated driver program (e.g., complimentary non-alcoholic beverages for designated drivers), including posting in a conspicuous place contact information for local designated driver services. m. Employee Training: The establishment shall use an employee training manual that addresses alcoholic beverage service consistent with the standards of the California Restaurant Association and the, Department of Alcoholic Beverage Control. n. Taxicab Service: The establishment shall post in a conspicuous place the telephone numbers of local taxicab services. Exhibit A -Conditions of Approval ~ 2125 S. Winchester Blvd., Ste. 120 PLN2017-161 ~ Conditional Use Permit /Modification to a Admin. P-D Permit Page 4 o. Outdoor Seating: Outdoor seating shall be subject to the following standards: Outdoor seating shall be limited to the front of the restaurant, along S. Winchester Boulevard, and shall not be permitted in the rear parking lot area. ii. Total patron occupancy shall not exceed twelve (12) seated patrons. iii. The design, make, and location of all furniture (chairs, tables, and umbrellas, barriers, etc.) shall be subject to review and approval by the Community Development Director. Umbrellas shall not have wording, logos, or other signage. iv. During non-business hours, chairs and tables shall be stacked, stored inside, or otherwise secured to prevent unauthorized use v. All outdoor furniture shall be kept clean and in good repair and replaced and/or fixed as necessary. vi. Exterior heaters shall be electric or natural gas; propane heaters are prohibited. p. Parking Management: In the event that three (3) verifiable complaints are received by the City regarding parking, the Community Development Director may reduce the permitted occupancy, limit the hours of operation, require additional parking management strategies and/or forward the project to the Planning Commission for review. q. Smoking: "No Smoking" signs shall be posted on the premises in compliance with CMC 6.11.060. Noise: Outdoor speakers are prohibited. Unreasonable levels of noise, sounds and/or voices, including but not limited to indoor amplified sounds, indoor loud speakers, sounds from indoor audio sound systems or music, and/or indoor public address system, generated by the establishment shall not be audible to a person of normal hearing capacity from outside the enclosed tenant space. s. Delivery and Garbage Pick-Up Hours: Delivery and garbage pick-up hours shall be restricted to 8:00 AM to 8:00 PM, daily. signage shall be installed at service doors regarding the restriction of delivery and garbage pick-up hours. (Per Condition of Approval #26 of approved P-D Permit for Merrill Gardens, PLN2011-45) t. Loitering: There shall be no loitering allowed outside the business and within the outside dining area. The business owner is responsible for monitoring the premises to prevent loitering. u. Outdoor Cooking: No outdoor cooking is permitted in association with the establishment. Exhibit A -Conditions of Approval ~ 2125 S. Winchester Blvd., Ste. 120 PLN2017-161 ~ Conditional Use Permit /Modification to a Admin. P-D Permit Paae 5 6. Tenant Space Orientation: The business's main entrance shall be located along the building's Winchester Boulevard frontage. 7. Tenant Improvements: Any storefront doorway not used to access the tenant space shall be replaced with a storefront window consistent with the building's architecture in such a manner that it may be returned to an entryway as necessary in the future, unless required for fire and/or emergency access or otherwise approved by the Community Development Director. (Per Condition of Approval #5 of approved P-D Permit for Merrill Gardens, PLN2011-45) 8. Storefront Clearance: At no time shall an obscure wall or barrier (i.e. drapery, window tinting, blinds, signage, advertisement posters or placards, furniture, inventory, shelving units, storage of any kind, or similar) be installed along, behind or attached to storefront windows or doorways that blocks visual access to the tenant space or blocks natural light. (Per Condition of Approval #6 of approved P-D Permit for Merrill Gardens, PLN2011-45) 9. Property Maintenance: The owner/operator of the subject property shall maintain all exterior areas of the business free from graffiti, trash, rubbish, posters and stickers placed on the property. Exterior areas of the business shall include not only the parking lot and private landscape areas, but also include the public right-of-way adjacent to the business. Trash receptacles shall be maintained within their approved enclosures at all times. 10. Landscape Maintenance: All landscaped areas shall be continuously maintained in accordance with City Landscaping Requirements (CMC 21.26). Landscaped areas shall be watered on a regular basis so as to maintain healthy plants. Landscaped areas shall be kept free of weeds, trash, and litter. Dead or unhealthy plants shall be replaced with healthy plants of the same or similar type. 11. signage: No signage is approved as part of the development application approved herein. New signage shall not be installed prior to approval of a sign permit. All signage shall be installed and maintained consistent with the provisions of the Merrill Gardens Master Sign Plan. 12. Location of Mechanical Equipment: No roof-mounted mechanical equipment (i.e. air conditioning units, ventilation ducts or vents), shall be added to the existing building without providing screening of the mechanical equipment from public view and surrounding properties. The screening material and method shall be architecturally compatible with the building and requires review and approval by the Community Development Director and Building Division prior to installation of such screening. 13.Outdoor Storage: No outdoor storage is permitted on the subject property. No equipment, materials or business vehicles shall be parked and/or stored outside the building or within the parking lot. Exhibit A -Conditions of Approval ~ 2125 S. Winchester Blvd., Ste. 120 PLN2017-161 ~ Conditional Use Permit /Modification to a Admin. P-D Permit Page 6 14. Parking and Driveways: All parking and driveway areas shall be maintained in compliance with the standards in Chapter 21.28 (Parking & Loading) of the Campbell Municipal Code. Parking spaces shall be free of debris or other obstructions. 15. Compliance with Other Conditions of Approval: The proposed use shall be in compliance with all other conditions of approval for the Merrill Gardens development, including Planned Development Permit PLN2011-45 and other approved permits for the site. 16. Exhaust Venting: All required kitchen venting shall either be vented vertically through the roof or out the rear of the property. Venting directed towards the storefront or penetrating any portion of the storefront or any portion of the wall, glazing, or any other portion of the building's exterior facing South Winchester Boulevard is prohibited. 17. Revocation of Permit: Operation of the restaurant with beer and wine service pursuant to the Approval granted herein is subject to Sections 21.68.020, 21.68.030 and 21.68.040 of the Campbell Municipal Code authorizing the appropriate decision making body to modify or revoke a land use permit if it is determined that the sale of alcohol has become a nuisance to the City's public health, safety or welfare or for violation of the Conditional Use Permit or any standards, codes, or ordinances of the City of Campbell. At the discretion of the Community Development Director, if the establishment generates one (1) verifiable complaint related to violations of conditions of approval and/or related to the service of alcohol, public hearings before the Planning Commission and City Council may be scheduled to consider modifying conditions of approval or revoking the Conditional Use Permit/ Administrative Planned Development Permit. In exercising this authority, the decision making body may consider the following factors, among others: a. The number and types of noise complaints at or near the establishment that are reasonably determined to be a direct result of patrons actions or facility equipment; b. The number of parking complaints received from residents, business owners and other citizens concerning the operation of an establishment; c. Compliance with the approved seating configuration and capacity; d. The number and types of Police Department calls for service at or near the establishment that are reasonably determined to be a direct result of patrons actions; e. The number of complaints received from residents, business owners and other citizens concerning the operation of an establishment, f. The number of arrests for alcohol, drug, disturbing the peace, fighting and public nuisance violations associated with an establishment; g. The number and kinds of complaints received from the State Alcoholic Beverage Control office and the County Health Department; and h. Violation of other conditions of approval.