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PC Res 4522RESOLUTION NO. 4522 BEING A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CAMPBELL APPROVING A CONDITIONAL USE PERMIT (PLN2019-121) AND ADMINISTRATIVE PLANNED DEVELOPMENT PERMIT (PLN2019-122) TO ALLOW GENERAL ON -SALE ALCOHOL SERVICE ("LIQUOR ESTABLISHMENT") IN CONJUNCTION WITH AN APPROVED STANDARD RESTAURANT (FORMER STEAK N' SHAKE) ON PROPERTY LOCATED AT 501 E. CAMPBELL AVENUE IN THE P-D (PLANNED DEVELOPMENT) ZONING DISTRICT. FILE NO.: PLN2019-121/122 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 number PLN2019-121/122: The project site is a 1.4 acre shopping center commonly known as Lloyd Square, located along East Campbell Avenue between Foot and Page Streets, consisting of a 12,600 square -foot building towards the rear and a smaller 5,000 square -foot building at the southwest corner of the site, improved with 86 parking stalls. 2. The project site is within the Planned Development (P-D) Zoning District and the boundaries of the East Campbell Avenue Master Plan. 3. The East Campbell Avenue Master Plan was adopted by the City Council in 2007 "to tie historic Downtown Campbell to The Pruneyard office and shopping center, thereby creating a more connected, attractive, and functional corridor." 4. The East Campbell Avenue Master Plan was specifically intended to further the General Plan vision of an expanded Downtown, as articulated by the Downtown Development Plan Policy LU 6.1: Policy LU-6.1: Expansion of Downtown: Facilitate and encourage the evolution of the. Downtown beyond the loop streets, eastward to the Hwy 17 overpass and westward to the Community Center, through public improvements, urban design and land use patterns that connect, both visually and physically this stretch of Campbell Avenue. 5. The East Campbell Avenue Master Plan specifies that allowable land uses are the same as those allowed within the Historic Downtown core (i.e., within the C-3 Zoning District), with a specific emphasis on retail and restaurants on the ground floor: 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. [Pg. 30] 6. At its meeting of October 20, 2015, the City Council adopted Resolution No. 11902, upholding the Planning Commission's approval of an Administrative Planned Development Permit (PLN2014-309) and Parking Modification Permit (PLN2014-310) to ,allow establishment of a 'standard restaurant' with early morning operational hours Planning Commission Resolution No. 4522 Page 2 PLN2019-121/122 — Conditional Use Permit / Admin. P-D Permit 501 E. Campbell Avenue ('late -night activity'), and outdoor seating on a new patio, remodel of an existing commercial building, and a reduction in the number of required parking spaces for the restaurant. 7. The Proposed Project is an application for a Conditional Use Permit (PLN2019-121) and an Administrative Planned Development Permit (PLN2019-122) to allow general on -sale alcohol service ("liquor establishment") in conjunction with an approved standard restaurant (former Steak n' Shake). 8. The Proposed Project would supersede rather than modify the City Council's upholding of the Planning Commission's approval of the Administrative Planned Development that originally established the restaurant. Therefore, the Proposed Project need not be considered by the City Council. 9. The Proposed Project would maintain the approved seating capacity as specified by the City Council's approval (86 interior seats and 32 outdoor patio seats) and therefore not increase the parking demand of the use. As such, an application for a Parking Modification Permit is not required pursuant to CIVIC Sec. 21.28.040.D. 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', consistent with the goals and strategies 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. Conformance to the provisions of the Downtown Alcohol Beverage Policy is the basis by which the City reviews new and modified applications for alcohol beverage service. The Policy sets forth limitations to the hours of operation, amount of bar area seating, and alcohol beverage service that are necessary to protect the public health, safety and welfare. 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. 13.A public closing time of 10:00 PM for the restaurant is appropriate to ensure that alcohol service remains ancillary to food service and therefore would not result in an overconcentration of alcohol -serving (liquor) establishments. 14. The approval of a Conditional Use Permit incorporates applicable operational standards of the Downtown Alcohol Beverage Policy. Planning Commission Resolution No. 4522 Page 3 PLN2019-121/122 — Conditional Use Permit / Admin. P-D Permit 501 E. Campbell Avenue 15.Alcohol beverage service in the restaurant shall be ancillary and subordinate to the primary purpose of serving food. 16. In approving the original Conditional Use Permit (PLN2019-121) and Administrative Planned Development Permit (PLN2019-122) that established the subject restaurant, the Planning Commission and City Council considered the lack of alcoholic beverage service as a factor supporting approval. 17. The overconcentration 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. For purposes of its overconcentration analysis, the Planning Commission recognizes the "special project areas" described by Campbell General Plan Figure LUT-8, including the East Campbell Master Plan Area. 19. Approval of the Proposed Project would result in five alcohol -serving establishments in the East Campbell Master Plan area, or approximately one per three acres. In comparison, the Downtown Development Plan area currently encompasses approximately one alcohol -serving establishment per acre. Similarly, pursuant to its Master Use Permit, The Pruneyard Shopping Center is permitted 25 alcohol -serving establishments or approximately one per acre. 20. The Downtown Alcohol Beverage Policy provides that all Conditional Use Permits issued to establishments for alcoholic beverage service on -site are 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 Conditional Use Permit if it is determined that the sale of alcohol has become a nuisance to the City's public health, safety or welfare. 21. In review of the proposed project, the Planning Commission considered the proposed project's traffic safety, traffic congestion, site circulation, landscaping, structure design, and site layout. 22. The Planning Commission's review of the proposed project further encompassed zoning and General Plan land use conformance, noise impacts, parking, property maintenance, odors, security and enforcement, and neighborhood impacts. 23.The Planning Commission also weighed the public need for, and the benefit to be derived from, the project, against any impacts it may cause. 24. No substantial evidence has been presented which shows that the project, as currently presented and subject to the required conditions of approval, will have a significant adverse impact on the environment. Planning Commission Resolution No. 4522 Page 4 PLN2019-121/122 — Conditional Use Permit / Admin. P-D Permit 501 E. Campbell Avenue Based upon the foregoing findings of fact, the Planning Commission further finds and concludes that: Conditional Use Permit Findings (CIVIC Sec. 21.46.040): 1. As conditioned, 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. As conditioned, the proposed use is consistent with the General Plan; 3. As conditioned, 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. As conditioned, 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. As conditioned, 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. As conditioned, 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 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; Liquor Establishment Findings (CIVIC Sec. 21.46.070) 7. As conditioned, the establishment will not result in an over -concentration of these uses in the surrounding area; 8. As conditioned, the establishment will not create a nuisance due to litter, noise, traffic, vandalism, or other factors; 9. As conditioned, the establishment will not significantly disturb the peace and enjoyment of the nearby residential neighborhood; 10.As conditioned, the establishment will not significantly increase the demand on city services; Administrative Planned Development Permit Findings (CIVIC Sec. 21.12.030.H.6): 11.As conditioned, 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; Planning Commission Resolution No. 4522 Page 5 PLN2019-121/122 — Conditional Use Permit / Admin. P-D Permit 501 E. Campbell Avenue 12.As conditioned, the proposed development would be compatible with the general plan and will aid in the harmonious development of the immediate area; 13.As conditioned, the proposed development would not be detrimental to the health, safety or welfare of the neighborhood or of the city as a whole; Undue Concentration Findina (BPC Sec. 23958): 14. The public convenience or necessity would be served by the issuance of an on -sale general liquor license. Environmental Findings (CMC Sec. 21.38.050): 15. The project is Categorically Exempt under Section 15301 Class 1 of the California Environmental Quality Act (CEQA) pertaining to minor alterations to an existing private structure, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. THEREFORE, BE IT RESOLVED that the Planning Commission approves a Conditional Use Permit (PLN2019-121) and Administrative Planned Development Permit (PLN2019- 122) to allow on -sale general, alcohol service ("liquor establishment") in conjunction with an approved standard restaurant (former Steak n' Shake), subject to the attached Conditions of Approval (attached Exhibit A). PASSED AND ADOPTED this 13th day of August, 2018, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN ATTEST: Commissioners: Krey, Ching, Buchbinder, Hines, and Rivlin Commissioners: Commissioners: Ostrowski Commissioners: Paul Kermoyan, Secretary VED: Exhibit A CONDITIONS OF APPROVAL Conditional Use Permit/Admin. P-D Permit (PLN2019-121/122) 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 1. Approved Project: Approval is granted for a Conditional Use Permit (PLN2019-121) and Administrative Planned Development Permit (PLN2019-122) to allow on -sale general alcoholic service ("liquor establishment") in conjunction with an approved standard restaurant (former Steak n' Shake) on property located at 501 E. Campbell Avenue. The project shall substantially conform to the Revised Project Plans and Written Description stamped as received by the Planning Division on July 26, 2019 and July 3, 2019, 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 effective date of Planning Commission action (expiring August 23, 2020). Within this one- year period a Type 41 (On -Sale Beer and Wine for Bona Fide Public Eating Place) license or a Type 47 (On -Sale General 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 a Type 41 or Type 47 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 original Administrative Planned Development Permit (PLN2014-309) as approved by City Council Resolution 11902. 3. Previous Conditions of Approval: Upon the effective date of this Approval, the previously approved Conditions of Approval provided in City Council Resolution 11902 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. Signage: No signage has been approved as part of this development application. New signage shall not be installed prior to approval of a sign permit as required by the Campbell Municipal Code. New signs shall conform to the Lloyd Square Center Master Sign Plan. 5. Wall Graphics: The east wall shall incorporate graphical wall panels presenting non- commercial photographs or artwork, as approved by the Community Development Director. These panels are architectural/art elements and shall not be utilizes as signs (as defined by the Campbell Municipal Code). Conditions of Approval PLN2019-121/122 — 501 E. Campbell Ave. Page 2 6. Floor Plan Layout: The construction plans submitted for a building permit shall incorporate a floor plan that does not expand the size of the dining room. The area behind the former cashier counter may be used for storage and/or kitchen activities. 7. Plan Revisions: The construction plans submitted for a building permit shall incorporate appropriate notes and details to demonstrate compliance with Condition of Approval No. 5 (Wall Graphics) and No. 6 (Floor Plan Layout) and the relevant requirements of Condition of Approval No. 8 (Operational Standards). These Conditions of Approval shall also be printed on a separate sheet behind the cover sheet. 8. Operational Standards: Consistent with the Downtown Alcohol Beverage Policy and other City standards, any restaurant operating pursuant to this Approval shall conform to the following operational standards. a. Approved Use: The approved use is a "restaurant, standard" with ancillary general alcohol sales ("liquor establishment") and 'outdoor seating", as defined by the Campbell Municipal Code and limited by the operational standards listed herein. At no time shall the restaurant be operated as a "fast food restaurant" or as a stand-alone bar/tavern. This shall require the restaurant to include a host station, wait staff, table service, individual menus, and non -disposable plates, cutlery, and drink -ware. a. Restaurant Seating/Patron Occupancy: Total indoor patron occupancy shall be limited to 86 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 86 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. b. Bar Area Seating: The bar area shall be composed of no more than fifteen (15) seats. No part of the dining area shall be considered part of the bar area. 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 included in the approved construction drawings submitted for a building permit. d. Floor Plan: All chairs and tables within the dining area shall consistent of standard -height furniture (i.e., not "high -top"). However, booth seating along the southerly (Campbell Avenue) wall is prohibited. 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. e. Alcohol Beverage Service: Alcohol beverage service shall only be allowed in conjunction with food service within the dining area. Conditions of Approval Page 3 PLN2019-121/122 — 501 E. Campbell Ave. f. Food Service: Full menu food service shall be provided at all times during the Business Hours (i.e., the kitchen shall not be closed). g. 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 — 10:00 PM, daily • Operational Hours 6:00 AM — 11:00 PM, daily h. Live Entertainment: No live entertainment is permitted as part of this Approval, including live music, disc jockey, karaoke, and dancing. Future requests for live entertainment shall require approval by the Planning Commission. i. Transit Passes: The business owner shall pay 50% of the cost of a monthly VTA transit pass for any employee (part- or full-time) who wishes take public transportation to work. j. Outdoor Seating: Outdoor seating shall be subject to the following standards: i. Total patron occupancy in the outdoor seating area shall be limited to 32 seated patrons, within the approved patio area. ii. The design and make of all furniture (chairs, tables, planters, and umbrellas, etc.) shall be subject to review and approval by the Community Development Director. iii. During non -business hours, chairs and tables shall be stacked, stored inside, or otherwise secured to prevent unauthorized use iv. All outdoor furniture shall be kept clean and in good repair and replaced and/or fixed as necessary. v. The business owner shall maintain comprehensive liability insurance and list the City as an "additionally insured". Before the issuance of a Business License, the business owner shall furnish to the city a certificate of insurance. vi. Exterior heaters shall be electric or natural gas. Propane heaters are prohibited unless the Community Development Director approves a propone canister enclosure. k. Loitering: There shall be no loitering allowed outside the business. The business owner is responsible for monitoring the premises to prevent loitering. Noise: Unreasonable levels of noise, sounds and/or voices generated by the establishment shall not audible to a person of normal hearing capacity from any residential property. In the event verified complaints are received by the City regarding such noise, the Community Development Director may immediately curtail the Hours of Operation, pursuant to Condition of Approval No. 9 (Revocation of Permit). Conditions of Approval PLN2019-121/122 — 501 E. Campbell Ave. Page 4 m. Smoking: "No Smoking" signs shall be posted on the premises in compliance with CIVIC Section 6.11.060. n. Trash & Clean Up: All trash, normal clean up, carpet cleaning, etc. shall occur during the approved `Operational Hours'. Refuse and recycling receptacles shall be kept within the enclosure except during collection in compliance with CIVIC Ch. 6.04 (Garbage and Refuse Disposal). o. 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 or a Type 47 (On -Sale General for Bona Fide Public Eating Place) license from the Department of Alcoholic Beverage Control for the sale of alcoholic beverages in conjunction with the restaurant. p. 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 ABC. q. Designated Driver Program: 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. Parking and Driveways: All parking and driveway areas shall be maintained in compliance with the standards provided in CIVIC Ch. 21.28 (Parking and Loading). The property owner shall maintain one (1) parking stall marked as time -limited "Take Out Parking Only" and a bicycle rack accommodating a minimum of five (5) bicycles. s. Property Maintenance: The business owner shall maintain all exterior areas of the business free from graffiti, trash, and rubbish. t. Outdoor Activity: Other than outdoor seating, no outdoor activity (e.g., cooking) is permitted in association with the establishment. u. Storefront Glazing: All storefront glazing shall remain unobscured, except for the 25% of window area permitted to be occupied with window signage. v. Walk -Up Window: A "walk-up", "to -go", or "pick-up" window is prohibited. w. City Meetings: At the discretion of the Chief of Police, periodic meetings will be conducted with representatives from the Police Department/Alcohol Beverage Control for on -going employee training on alcoholic beverage service to the general public. x. Landscape Maintenance: The owner/operator of the property shall provide on- going maintenance of the required landscaping for the project. y. Security: The business owner shall maintain a security camera system with visibility around the building, the parking lot, and onto Foot Street. Page 5 Conditions of Approval PLN2019-121/122 — 501 E. Campbell Ave. 9. Revocation of Permit: Operation of the restaurant with alcohol service pursuant to this Approval 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 Conditional 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 this Approval or any standards, codes, or ordinances of the City of Campbell. At the discretion of the Community Development Director, if the establishment generates three (3) verifiable complaints related to violations of conditions of approval (e.g., noise, etc.) and/or related to the service of alcohol within a twelve (12) month period, a public hearing before the Planning Commission may be scheduled to consider modifying conditions of approval or revoking of the Approval. The Community Development Director may commence proceedings for the revocation or modification of the Approval upon the occurrence of less than three (3) complaints if the Community Development Director determines that the alleged violation warrants such an action. The Director may also at such time immediately restrict the establishment's Hours of Operation to address noise complaint in a timely manner. In exercising this authority, the decision making body may consider the following factors, among others: a. 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; b. The number of complaints received from residents, business owners and other citizens concerning the operation of an establishment, c. The number of arrests for alcohol, drug, disturbing the peace, fighting and public nuisance violations associated with an establishment; d. The number and kinds of complaints received from the State Alcoholic Beverage Control office and the County Health Department; and e. Violation of conditions of approval.