Planning Commission Report

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1 Planning Commission Report Planning Commission Meeting: February 1, 2017 Agenda Item: 9-A To: From: Subject: Planning Commission Jing Yeo, AICP, City Planning Division Manager Conditional Use Permit (16ENT-0172) to allow the sale of alcohol with three Alcoholic Beverage Control (ABC) licenses in conjunction with the operation of a new grocery store with an ancillary restaurant located in the Mixed Use Boulevard Low (MUBL) District. Address: Applicant: 2121 Cloverfield Boulevard Mrs. Gooch s Natural Food Market, Inc. (DBA 365 by Whole Foods Market) Recommended Action It is recommended that the Planning Commission take the following actions subject to findings and conditions contained in Attachment B: 1. Approve application 16ENT Adopt the Statement of Official Action Executive Summary The applicant requests approval of a Conditional Use Permit (CUP) to allow the sale of alcohol with three Alcohol Beverage Control (ABC) licenses in conjunction with the operation of a new grocery store (365 by Whole Foods Market) with an ancillary restaurant; the license types a Type 21 Off-Sale General License, a Type 41 On-Sale Beer and Wine for a Bona Fide Eating Place License, and a Type 86 Instructional Tasting License. The project site was recently redeveloped from an office building to a grocery store. The new grocery store at this site has been designed to comply with all development standards in effect at the time the Administrative Approval for the site was approved in 2014 (14AA -002). A CUP is necessary for the proposal pursuant to Santa Monica Municipal Code (SMMC) Section (B) which requires a CUP for the dispensation of alcoholic beverages for off-site sale and consumption, on-site sale and consumption of alcoholic beverages, and instructional tasting. The grocery store s proposed hours of operation are from 6:00 a.m. to 12:00 a.m., daily. The ancillary restaurant s proposed hours of operation are from 7:00 a.m. to 12:00 a.m., 1

2 daily. The instructional tasting s proposed hours of operation are from 10:00 a.m. to 9:00 p.m., daily. The following issues should be considered by the Planning Commission in its review of the proposed project and are addressed in this report: The compatibility of the proposed sale of alcoholic beverages for off-site consumption with the surrounding neighborhood, The compatibility of the proposed 4,486 square-foot ancillary restaurant with a Type 41 alcohol license for on-site service and consumption of beer and wine with surrounding land uses, The compatibility of the proposed instructional tasting events on the premises with the surrounding neighborhood, and The effectiveness and appropriateness of the recommended conditions of approval in terms of mitigating potential alcohol-related adverse impacts on the area relating to the proposed Type 21, Type 41, and Type 86 alcohol licenses. Project / Site Information The following table provides a brief summary of the project location. Additional information regarding the project s compliance with applicable municipal regulations and the General Plan is available in Attachment A. Project and Site Information Table Zoning District: MUBL (Mixed-Use Boulevard Low) Land Use Mixed-Use Boulevard Element Low Designation: Parcel Area (SF): Approx. 90,275 SF Parcel Dimensions: Existing On-Site Improvements (Year Built): Rent Control Status: Adjacent Zoning Districts and Land Uses: Irregular 29,228 sq ft grocery store (2016). Exempt Commercial North: R2 (Low Density Residential Units) South: NC (Commercial and Retail Uses) East: R2 and MUBL (Low Density Residential Units and Commercial / Retail uses) West: OS (Virginia Avenue Park) Site Location Map 2

3 The subject property is located at the northeast corner of Pico Boulevard and Cloverfield Boulevard in the MUBL District. The subject site is approximately 90,275 square feet in size and is developed with two newly remodeled and integrated buildings containing a grocery store, ancillary restaurant, and a surface parking lot with access from Pico Boulevard and Cloverfield Boulevard. The building shell, parking, and landscaping has been completed by the developer and the tenant is still working on the tenant improvements on the interior. Background In 1978, the site was developed with a 38,746 square-foot, two-story office park development. In 2014, the Zoning Administrator approved an Administrative Approval (14AA-002) for the site to be redeveloped with a 29,228 square-foot grocery store and ancillary restaurant. Less than half of the office development was demolished and less than 7,500 square feet was reconstructed, which qualified for an AA in the Zoning Ordinance prior to the 2015 Zoning Ordinance Update. The new grocery store development is 9,518 square feet smaller than the prior office park development. Project Analysis The applicant requests approval of a CUP for three ABC Licenses: Type 21 Off-Sale General License, a Type 41 On-Sale Beer and Wine for a Bona Fide Eating Place License, and a Type 86 Instructional Tasting License. Pursuant to SMMC Section (B), a CUP is required for the dispensation of alcoholic beverages for on-site or off-site consumption, unless otherwise exempted pursuant to the provisions of SMMC Sections (D) and (E). 365 by Whole Foods Market is intending to be a streamlined version of a Whole Foods Market grocery store. As part of this concept, 365 is proposing to sell a variety of beer, wine, and distilled spirits for off-site consumption. Type 21 and Type 41 ABC License Whole Foods Market 365 proposes to offer alcohol for sale as an incidental offering of the primary grocery store use. In an effort to further enhance their customers shopping experience, Whole Foods Market 365 is proposing to offer an ancillary restaurant with alcohol service. Patrons would be able to order food and alcoholic beverages at the service counter and take them to their seats. In addition, patrons would be able to select from a variety of prepared food options that would be available inside the store, such as pizza, sushi, sandwiches, salad, etc. and then take those items to the restaurant area and order beer and wine. Both the restaurant s interior and exterior dining areas would be monitored and supervised by employees. As shown in Figure 1, a barrier would surround the outdoor dining area. Whole Foods Market 365 may also elect to contract with an outside company to staff the restaurant and prepare the food offerings. 3

4 Figure 1: Proposed Floor Plan with Ancillary Restaurant Area Highlighted. Type 86 ABC License Whole Foods Market 365 is also proposing an opportunity for its customers to learn about the distilled spirits, wines, and beers offered by the store. The instructional tastings would operate consistent with ABC requirements in that there will be no cost to customers and quantities will be limited to ¼ ounce for distilled spirits, 1 ounce for wine, and a total of 8 ounces of beer per individual in one day. The tastings will occur inside the building on the grocery store sales floor. Additional operational requirements, as detailed further below, must also be adhered to by the operator. Section of the California Business and Professions Code which became effective in 2011, provides for the Type 86 (Instructional Tasting) ABC license to be issued to holders of, and premises of, a Type 20 or Type 21 license and authorizes the tasting of alcoholic beverages sold from the off-sale premises on a limited basis. The 4

5 purpose of the tastings is for instructional services intended to educate the customer on the alcoholic beverages sold on the premises. The issuance of a Type 86 license comes with a standard set of conditions and standards from the ABC regulating the instructional tasting events to minimize their impacts and ensure that their instructional intent is maintained. Some examples of the conditions and standards in the State law including the following: The instructional tasting event shall only be conducted by an authorized licensee (e.g. winegrower, alcoholic beverage manufacturer, distributor, wholesaler) at the location of the retailer that holds a Type 20 or Type 21 off-sale alcohol license. The retailer shall not conduct the event on its own; Only one instructional tasting event may occur on the premises per day; There shall be no charge for the tastings at an instructional event; Unless otherwise restricted, instructional tasting events shall only be held between the hours of 10 a.m. and 9 p.m.; The Type 86 license does not authorize any on-sale retail alcohol sales to consumers; An instructional tasting event shall be limited to a single type of alcoholic beverage per event. Type of alcoholic beverage means distilled spirits, wine, or beer; A single tasting of distilled spirits shall not exceed 1/4 ounce and a single tasting of wine shall not exceed one ounce. The tasting of beer shall be limited to eight ounces of beer per person per day; No more than one authorized licensee may conduct an instructional tasting event at any individual premises per day; and A person under 21 years of age shall not serve, or be served wine, beer, or distilled spirits at the instructional tasting event. The Industry Advisory issued from the ABC is included as Attachment D to this staff report and details a comprehensive list of the requirements tied to a Type 86 license in addition to the above mentioned operating conditions. The Type 86 license is a unique type of license in that the holder of the license is not permitted to conduct the instructional tastings. The instructional tastings are to be conducted by a qualified supplier, and a supplier is not permitted to directly or indirectly pay, reimburse, or assist a retailer with obtaining a Type 86 ABC license. These standards and operational restrictions help to ensure the responsible operation and oversight of instructional tasting events. Neighborhood Compatibility The subject site is located along the Pico Boulevard commercial corridor which consists of retail and other commercial uses to the east and west, a park to the west, and multifamily residential uses to both the north and east of the subject site. The grocery store s off-sale of alcohol, restaurant alcohol service, and instructional tasting events would be compatible with other uses in the area in that the events would be an ancillary component of the primary grocery store use, would be unobservable from the exterior of the building, 5

6 will not present any significant intensification to the grocery store use, and would not result in any adverse impacts to the use or the surrounding area when operated in conjunction with the attached conditions of approval and ABC standards. To ensure that the primary use remains a general market use with alcohol sales, and that both the ancillary restaurant and instructional tasting events remain incidental to the primary use, staff recommends the following conditions of approval: Condition #2 limits the seating arrangements for the sit-down dining patrons in the restaurant area to not exceed an overall number of 51 seats which includes the proposed bar seating area; Condition #3 limits the hours of operation for the restaurant from 7:00 a.m. to 12:00 a.m., daily; Condition #4 limits instructional tastings to customers of 21 years of age or older; Condition #5 requires that the operator and possessor of the Type 86 ABC license shall meet all applicable code and operational requirements set forth in the California Business and Professions Code Sections and ; Condition #11 prohibits signs advertising brands and types of alcoholic beverages to be visible from the exterior of the premises. As conditioned, the off-sale of alcohol, on-sale of alcohol at the restaurant, and instructional tastings would be incidental components of the grocery store use and would be compatible with the surrounding uses. Staff attended a Pico Neighborhood Association (PNA) community meeting in August The PNA expressed concerns for the delivery trucks exiting onto Kansas Avenue as approved by the Administrative Approval. The applicant has voluntarily been working with the PNA to redesign the site to accommodate trucks exiting onto Pico Boulevard, which is preferred by the PNA. At the time this staff report was prepared, an agreement has been tentatively reached between the applicant and the PNA, and is under review by staff for compliance with turning radii for large trucks. Alcohol Outlets in the Area There are three (3) existing alcohol licenses within a 500-foot radius of the proposed project, as identified below. Establishment Address ABC License Type The Daily Pint 2310 Pico Boulevard Type 48 Rite Aid 2412 Pico Boulevard Type 21 Next Door by Josie 2424 Pico Boulevard Type 47 Type 58 6

7 Parks and Schools in the Area There is one park and one school within a 500-foot radius of the proposed project, as identified below. Park or School Virginia Avenue Park Edison Elementary School Address 2200 Virginia Avenue 2402 Virginia Avenue Police Department Comments The Police Department has been notified of the project and at this time does not have any comments or objections to the request for alcohol as proposed by the applicant. Conformance with Land Use and Circulation Element (LUCE) The subject site is designated as Mixed-Use Boulevard Low in the City s Land Use and Circulation Element (LUCE) along Pico Boulevard, which is envisioned as an attractive, local-serving boulevard that provides an enhanced environment for pedestrians. The vision includes a wider choice of local-serving retail, expanded mobility, shared parking and enhanced pedestrian environment to create an attractive and cohesive streetscape. Specifically for this intersection, LUCE Policy B19.5 encourages retail land uses at the intersection of Pico Boulevard and Cloverfield Boulevard. The project site is consistent with this policy as it was redeveloped from an office park to a grocery store and ancillary restaurant. Grocery stores are a valuable use that provide a needed service to the surrounding residential and commercial uses in the neighborhood. Environmental Analysis This request is exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to Section (Class 1), Existing Facilities, of the State Implementation Guidelines in that the project involves the request for a Type 21 Off-Sale General License, a Type 41 On-Sale Beer and Wine for a Bona Fide Eating Place License, and a Type 86 Instructional Tasting License. There is no proposed addition to the existing structure with this CUP application. Alternative Actions: In addition to the recommended action, the Planning Commission could consider the following with respect to the project: A1. Continue the project for specific reasons consistent with applicable deadlines and with agreement from the applicant; A2. Articulate revised findings and/or conditions to Deny, with or without prejudice, the subject application. Conclusion The applicant requests approval of a Conditional Use Permit to allow the sale of alcohol with three Alcohol Beverage Control (ABC) licenses in conjunction with the operation of a new grocery store (365 by Whole Foods Market) and ancillary restaurant: Type 21 for 7

8 the sale of a full line of alcoholic beverages for off-site consumption, Type 86 for instructional tasting for a full line of alcoholic beverages, and Type 41 for the sale of beer and wine for on-site consumption. The proposed ancillary restaurant hours are from 7:00 a.m. 12:00 a.m., daily. The instructional tastings would occur between 10 a.m. and 9 p.m. The proposed restaurant is an ancillary use to the grocery store and the instructional tasting events are temporary in nature and are also ancillary to the primary use as a grocery store. Prepared by: Russell Bunim, Associate Planner Attachments A. General Plan and Municipal Code Compliance B. Draft Statement of Official Action C. Public Notification & Comment Material D. ABC Type 86 License Industry Advisory E. Project Plans 8

9 ATTACHMENT A GENERAL PLAN AND MUNICIPAL CODE COMPLIANCE WORKSHEET Project Location and Permit Processing Time Limits Project Address: 2121 Cloverfield Application Filing Date: October 6, 2016 CEQA Deadline: December 5, 2016 PSA Deadline: February 3, 2017 Total Process Review Time (Days): 118 days total days. 9 Attachment A General Plan & Municipal Code Compliance Worksheet

10 ATTACHMENT B DRAFT STATEMENT OF OFFICIAL ACTION City of Santa Monica City Planning Division PLANNING COMMISSION STATEMENT OF OFFICIAL ACTION PROJECT INFORMATION CASE NUMBER: LOCATION: APPLICANT: PROPERTY OWNER: CASE PLANNER: REQUEST: CEQA STATUS: Conditional Use Permit 16ENT Cloverfield Boulevard Mrs. Gooch s Natural Food Market, Inc. (DBA 365 by Whole Foods Market) GRT Portfolio Properties Cloverfield, LLC Russell Bunim, Associate Planner The applicant requests approval of a Conditional Use Permit to allow the sale of alcohol with three Alcoholic Beverage Control (ABC) licenses (Type 21, 41, and 86 License) in conjunction with the operation of a new grocery store and ancillary restaurant (365 by Whole Foods Market). This request is exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to Section (Class 1), Existing Facilities, of the State Implementation Guidelines in that the project involves the request for a Type 21 Off-Sale General License, a Type 41 On-Sale Beer and Wine for a Bona Fide Eating Place License, and a Type 86 Instructional Tasting License. There is no proposed addition to the existing structure with this CUP application. 10 Attachment B Draft Statement of Official Action

11 PLANNING COMMISSION ACTION February 1, 2017 X Determination Date Approved based on the following findings and subject to the conditions below. Denied. Other: EFFECTIVE DATES OF ACTIONS IF NOT APPEALED: EXPIRATION DATE OF ANY PERMITS GRANTED: LENGTH OF ANY POSSIBLE EXTENSION OF EXPIRATION DATES*: February 16, 2017 February 16, months * Any request for an extension of the expiration date must be received in the City Planning Division prior to expiration of this permit. Each and all of the findings and determinations are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the Project. All summaries of information contained herein or in the findings are based on the substantial evidence in the record. The absence of any particular fact from any such summary is not an indication that a particular finding is not based in part on that fact. FINDINGS: CONDITIONAL USE PERMIT FINDINGS 1. The proposed use is one conditionally allowed within the applicable Zoning District and complies with all other applicable provisions of the Zoning Ordinance and all other titles of the Municipal Code in that alcohol licenses for the sale or dispensation of alcohol is conditionally permitted citywide, pursuant to SMMC Section (B), unless otherwise exempted pursuant to the provisions of Sections (D) and (E). As proposed, the request to allow the sale of alcohol with three Alcohol Beverage Control (ABC) licenses in conjunction with the operation of a new grocery store (365 by Whole Foods Market): Type 21 Off- Sale General License, a Type 41 On-Sale Beer and Wine for a Bona Fide Eating Place License, and a Type 86 Instructional Tasting License. 2. The proposed use is consistent with the General Plan and any applicable specific plan in that the subject site is designated as Mixed-Use Boulevard Low in the City s Land Use and Circulation Element (LUCE) along Pico Boulevard, which is envisioned as an attractive, local-serving boulevard that provides an enhanced environment for pedestrians. The vision includes a wider choice of local-serving retail, expanded mobility, shared parking, and enhanced pedestrian environment to create an attractive and cohesive streetscape. Specifically for this intersection, 11 Attachment B Draft Statement of Official Action

12 LUCE Policy B19.5 encourages retail land uses at the intersection of Pico Boulevard and Cloverfield Boulevard. The project site is consistent with this policy as it was redeveloped from an office park to a grocery store development. Grocery stores are a valuable uses that provide a needed service to the surrounding residential and commercial uses in the neighborhood, and the sale of alcohol at the grocery store will be incidental to the primary use. 3. The subject parcel is physically suitable for the type of land use being proposed in that the property was recently redeveloped from an office park to a grocery store with an ancillary restaurant, which is a permitted use in the Mixed Use Boulevard Low (MUBL) District. The introduction of alcohol sales and tastings will be incidental to the primary grocery use and will not intensify or significantly alter the grocery store operation. No adverse impacts will be created to the surrounding neighborhood as the operation will be consistent with the recommended conditions of approval and the requirements of the State of California Department of Alcoholic Beverage Control. The proposed instructional tasting events are limited in nature and are incidental to the primary use as a grocery store. 4. The proposed use is compatible with any of the land uses presently on the subject parcel if the land uses are to remain. The property was recently redeveloped from an office park to a grocery store with an ancillary restaurant. The new grocery store at this site has been designed to comply with all development standards in effect at the time the Administrative Approval (14AA-002) for the site was approved in The introduction of alcohol sales and tastings will be incidental to the primary grocery use and will not intensify or significantly alter the grocery store operation. No adverse impacts to the surrounding neighborhood as the operation will be consistent with the recommended conditions of approval and the requirements of the State of California Department of Alcoholic Beverage Control. The proposed instructional tasting events are limited in nature and are incidental to the primary use as a grocery store. 5. The proposed use is compatible with the existing and permissible land uses within the District and the general area in which the proposed use is to be located which may include but not be limited to size, intensity, hours of operation, number of employees, or the nature of the operation. The proposed alcohol sales and instructional tasting will be incidental to the primary grocery store use and ancillary restaurant use, both permitted uses in the MUBL zone. The new grocery store at this site has been designed to comply with all development standards in effect at the time the Administrative Approval (14AA-002) for the site was approved in The proposed introduction of alcohol sales at the grocery store and ancillary restaurant does not involve any new square footage or building volume. Existing land uses within the immediate vicinity are include local-serving commercial and residential uses. The new grocery store and ancillary restaurant would expand on the existing mix of uses in the area, in particular retail and dining options. Furthermore, the proposed request to introduce alcohol sales, consumption and tasting will be ancillary to the primary grocery store and restaurant use and is 12 Attachment B Draft Statement of Official Action

13 becoming more commonplace for grocery stores and with ancillary restaurants in urban settings. No adverse impacts will be created to the surrounding neighborhood as the operation will be consistent with the recommended conditions of approval and the requirements of the State of California Department of Alcoholic Beverage Control, which include limiting the hours in which the instructional tastings may occur. 6. The physical location or placement of the use on the site is compatible with and relates harmoniously to the surrounding neighborhood. The proposed alcohol sales and instructional tasting will be incidental to the primary grocery store use and ancillary restaurant use, both permitted uses in the MUBL zone. The new grocery store market at this site has been designed to comply with all development standards in effect at the time the Administrative Approval (14AA-002) for the site was approved in The alcohol sales area and instructional tastings will be fully integrated into the interior floor plan of the market and does not involve any new square footage or building volume. There would be no observable differences to the primary grocery use or the grocery operation. No adverse impacts will be created to the surrounding neighborhood as the operation will be consistent with the recommended conditions of approval and the requirements of the State of California Department of Alcoholic Beverage Control. The new restaurant and grocery store will remain compatible with the surrounding neighborhood and will continue to provide a service to the surrounding residential and commercial uses. 7. Based on environmental review, the proposed project has no potentially significant environmental impacts or any potentially significant environmental impacts have been reduced to less than significant levels because of mitigation measures incorporated in the project or a Statement of Overriding Considerations has been adopted. The request to introduce a Type 21 Off-Sale General License, a Type 41 On-Sale Beer and Wine for a Bona Fide Eating Place License, and a Type 86 Instructional Tasting License is exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to Section (Class 1), Existing Facilities, of the State Implementation Guidelines. There is no proposed addition to the existing structure or use, and there will be no intensification of the grocery store use. 8. The proposed use and related project features would not be detrimental to the public interest, health, safety, convenience, or general welfare. The new grocery store market at this site has been designed to comply with all development standards in effect at the time the Administrative Approval was approved in 2014 (14AA-002). The proposal includes the introduction of a Type 21 Off-Sale General License, a Type 41 On-Sale Beer and Wine for a Bona Fide Eating Place License, and a Type 86 Instructional Tasting License. The proposed introduction of alcohol at the grocery store with sales and tastings does not involve any new square footage or building volume. No adverse impacts will be created to the surrounding neighborhood as the operation will be consistent with the recommended conditions of approval and the requirements of the State of California Department of Alcoholic 13 Attachment B Draft Statement of Official Action

14 Beverage Control. ALCOHOL OUTLET FINDINGS 1. The proposed alcohol sales will not adversely affect the welfare of neighborhood residents in a significant manner in that the primary use of the site is a grocery store and ancillary restaurant, and the introduction of a Type 21 Off-Sale General License, a Type 41 On-Sale Beer and Wine for a Bona Fide Eating Place License, and a Type 86 Instructional Tasting License will not change the primary use of the grocery store. The instructional tasting will be limited to specific hours and additional other requirements such as restricting the size/quantity of servings, age of customers served, and prohibiting more than one instructional tasting event per day. There will be no observable differences to the primary grocery store use as a result of the incidental alcohol sales and instructional tastings and no adverse impacts will be created to the surrounding neighborhood as the operation will be consistent with the recommended conditions of approval and the requirements of the State of California Department of Alcoholic Beverage Control. 2. The proposed alcohol sales will not contribute to an undue concentration of alcohol outlets in the area. There are only three other alcohol outlet within a 500-foot radius of the subject site: The Daily Pint with Type 48 License, Rite Aid with a Type 21 License, and Next Door by Josie with a Type 47 and Type 58 Licenses. The applicant will operate an establishment with a Type 21 Off-Sale General License, a Type 41 On-Sale Beer and Wine for a Bona Fide Eating Place License, and a Type 86 Instructional Tasting License. In this case, the grocery store will add one more alcohol outlet in the neighborhood which would not result in an undue concentration of alcohol outlets in the area. 3. The proposed alcohol sales will not detrimentally affect nearby neighborhoods, considering the distance of the alcohol outlet to residential buildings, churches, schools, hospitals, playgrounds, parks, and other existing alcohol outlets. The subject site is located within a 500-foot radius of Virginia Avenue Park at 2200 Virginia Avenue and Edison Elementary School at 2402 Virginia Avenue. The requested Type 21 Off-Sale General License, a Type 41 On-Sale Beer and Wine for a Bona Fide Eating Place License, and a Type 86 Instructional Tasting License will not adversely impact the existing sensitive uses in the area as a result of the grocery store and ancillary restaurant with incidental alcohol sales when operated consistent with the recommended conditions of approval and the mandatory requirements of the State of California Alcoholic Beverage Control. Recommended conditions of approval include, but are not limited to limiting hours of operation, maximum number of seats, and providing service. The alcohol sales, consumption, and tasting events will be an ancillary component of the grocery store use that will be unnoticeable from the exterior of the structure. 4. The sale of alcohol will not increase traffic congestion or generate a demand for parking that will adversely affect surrounding businesses and residents in that the proposed restaurant use, sale of alcohol, and instructional tasting events will 14 Attachment B Draft Statement of Official Action

15 provide an ancillary amenity to customers who are visiting the site for its primary use as a grocery store. The addition of the restaurant, sale of alcoholic beverages, and instructional tasting events will not result in a significant increase of patrons, in and of itself, and therefore will not generate an increased traffic or parking demand that would adversely affect surrounding businesses and residents. CONDITIONS OF APPROVAL: PLANNING AND COMMUNITY DEVELOPMENT Project Specific Conditions 1. This approval is for a Type 21 Off-Sale General License, a Type 41 On-Sale Beer and Wine for a Bona Fide Eating Place License, and a Type 86 Instructional Tasting License. Any request to modify these license types shall require approval from the Planning Commission. 2. Seating arrangements for the sit-down dining patrons in the dining area shall not exceed an overall number of 51 seats. 3. The permitted hours of operation for the restaurant shall be from 7:00 a.m. to 12:00 a.m., daily. The permitted hours for the instructional tasting events shall be between the hours of 10:00 a.m. to 9:00 p.m., daily, with complete closure and all employees vacated from the building within one hour after closing. No after hours of the cafe operations shall be permitted. Alcohol Outlet Conditions 4. Instructional tastings shall only be provided to customers 21 years of age or older. 5. The operator and possessor of the Type 86 ABC license shall meet all applicable code and operational requirements set forth in the California Business and Professions Code Sections and Instructional tasting events shall only occur between the hours of 10 a.m. 9 p.m., daily, and stall be limited to no more than one tasting per day. 7. No exterior activity such as trash disposal, disposal of bottles or noise generating trash, deliveries, or other maintenance activity generating noise audible from the exterior of the building shall occur during the hours of 11:00pm to 7:00am daily. In addition, there shall be no outdoor cleaning of the property with pressurized or mechanical equipment during the hours of 9:00pm to 7:00am, daily. Trash containers shall be secured with locks. 8. The operator and possessor of the Type 86 ABC license shall inform the authorized licensee hosting the instructional tasting of the conditions of approval 15 Attachment B Draft Statement of Official Action

16 of this Conditional Use Permit prior to the commencement of any instructional tasting event. 9. The grocery store s ancillary restaurant s primary use shall be for limited service and take-out meal service to patrons, who may also sit in the dining area. 10. If a counter service area is provided, food service shall be available at all hours the counter is open for patrons. 11. Window or other signage visible from the public right-of-way that advertises beer or alcohol shall not be permitted. 12. Customers shall be permitted to order meals at all times and at all locations where alcohol is being served. The establishment shall serve food to patrons during all hours the establishment is open for customers. 13. The establishment shall maintain a kitchen or food-serving area in which a variety of food is prepared on the premises. 14. Except for special events, alcohol shall not be served in any disposable containers such as disposable plastic or paper cups. 15. No more than three television screens including video projectors or similar audio/visual devices shall be utilized on the premises. None of these televisions or projection surfaces shall exceed 60 inches measured diagonally. 16. No video or other amusement games shall be permitted on the premises. 17. Entertainment may only be permitted in the manner set forth in Section , Restaurants with Entertainment. 18. The operation shall at all times be conducted in a manner not detrimental to surrounding properties by reason of lights, noise, activities or other actions. The operator shall control noisy patrons leaving the restaurant. 19. No more than 35% of total gross revenues per year shall be from alcohol sales. The operator shall maintain records of gross revenue sources which shall be submitted annually to the City of Santa Monica City Planning Division at the beginning of the calendar year and also available to the City of Santa Monica and the State ABC upon request. 20. No organized queuing of patrons at the entry or checking of identification to control entry into and within the establishment shall be permitted. There shall not be any age limitation imposed restricting access to any portion of the restaurant. 16 Attachment B Draft Statement of Official Action

17 21. The establishment shall not organize or participate in organized pub-crawl events where participants or customers pre-purchase tickets or tokens to be exchanged for alcoholic beverages at the restaurant. 22. Establishments with amplified music shall be required to comply with Section 4.12, Noise, of the Santa Monica Municipal Code. 23. Parking lot illumination shall be provided and maintained. 24. Applicant is on notice that all temporary signage is subject to the restrictions of the City sign ordinance. 25. Prior to occupancy, a security plan shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues. 26. Prior to occupancy, the operator shall submit a plan for approval by the Director regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol-awareness training program for all employees having contact with the public and shall state management s policies addressing alcohol consumption and inebriation. The program shall require all employees having contact with the public to complete an ABC-sponsored alcohol awareness training program within ninety days of the effective date of the exemption determination. In the case of new employees, the employee shall attend the alcohol awareness training within ninety days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved by the Director. The operator shall provide the City with an annual report regarding compliance with this requirement. The operator shall be subject to any future citywide alcohol awareness training program affecting similar establishments. 27. Within 30 days from the date of approval of this CUP, the applicant shall provide a copy of the signed CUP to the local office of the State ABC. 28. Prior to occupancy, the operator shall submit a plan describing the establishment s designated driver program, which shall be offered by the operator to the establishment s patrons. The plan shall specify how the operator will inform patrons of the program, such as offering on the menu a free non-alcoholic drink for every party of 2 or more ordering alcoholic beverages. 29. Notices shall be prominently displayed urging patrons to leave the premises and neighborhood in a quiet, peaceful, and orderly fashion and to please not litter or block driveways in the neighborhood. 17 Attachment B Draft Statement of Official Action

18 30. Employees of the establishment shall walk a 100-foot radius from the facility at some point prior to 30 minutes after closing and shall pick up and dispose of any discarded beverage containers and other trash left by patrons. 31. The CUP shall apply to approved and dated plans, a copy of which shall be maintained in the files of the City Planning Division. Project development shall be consistent with such plans, except as otherwise specified in these conditions of approval. Minor amendments to the plans shall be subject to approval by the Director. Administrative 32. The Planning Commission s approval, conditions of approval, or denial of this application may be appealed to the City Council if the appeal is filed with the Zoning Administrator within fourteen consecutive days following the date of the Planning Commission s determination in the manner provided in Section of the SMMC. An appeal of the approval, conditions of approval, or denial of a subdivision map must be filed with the City Clerk within ten consecutive days following the date of Planning Commission determination in the manner provided in Section (G). Any appeal must be made in the form required by the Zoning Administrator. The approval of this permit shall expire if the rights granted are not exercised within 30 months from the permit s effective date. Exercise of rights shall mean issuance of a building permit to commence construction, or actual commencement of the use granted by this Conditional Use Permit if a building permit is not required. 33. Within ten days of City Planning Division transmittal of the Statement of Official Action, project applicant shall sign and return a copy of the Statement of Official Action prepared by the City Planning Division, agreeing to the conditions of approval and acknowledging that failure to comply with such conditions shall constitute grounds for potential revocation of the permit approval. By signing same, applicant shall not thereby waive any legal rights applicant may possess regarding said conditions. The signed Statement shall be returned to the City Planning Division. Failure to comply with this condition shall constitute grounds for potential permit revocation. 34. Prior to commencement of alcohol service, the applicant shall post a notice at the building entry, within the restaurant and seating area, and during any instructional tasting event stating that the site is regulated by a Conditional Use Permit and the Statement of Official Action, which includes the establishment s conditions of approval, is available upon request. This notice shall remain posted at all times the establishment is in operation. 35. Within thirty (30) days from date of the approval of the Statement of Official Action, the applicant shall provide a copy of the approved Statement of Official Action for this project to the local office of the State Alcoholic Beverage Control department. 18 Attachment B Draft Statement of Official Action

19 36. Prior to issuance of a Certificate of Occupancy, or a business license, or commencement of rights granted by this approval, the operator shall submit a plan for approval by the Director of Planning regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol awareness training program for all employees having contact with the public and shall state management's policies addressing alcohol consumption and inebriation. The program shall require all employees having contact with the public to complete a California Department of Alcoholic Beverage Control (ABC) sponsored alcohol awareness training program within 90 days of the effective date of this approval. In the case of new employees, the employee shall attend the alcohol awareness training within 90 days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved by the Director of Planning and Community Development. The operator shall provide the City with an annual report regarding compliance with this condition. This project shall be subject to any future City-wide alcohol awareness training program condition affecting similar establishments. 37. Prior to issuance of a Certificate of Occupancy, or a business license, or commencement of rights granted by this approval, the operator shall also submit a plan describing the establishment's designated driver program, which shall be offered by the operator to the establishment's patrons. The plan shall specify how the operator will inform patrons of the program, such as offering a free nonalcoholic drink for every party of two or more ordering alcoholic beverages. 38. In the event permittee violates or fails to comply with any conditions of approval of this permit, no further permits, licenses, approvals or certificates of occupancy shall be issued until such violation has been fully remedied. Indemnity 43. Applicant shall defend, indemnify, and hold harmless the City and its boards, commissions, agents, officers, and employees (collectively, "City") from any claims, actions, or proceedings (individually referenced as "Claim" and collectively referenced as "Claims") against the City to attack, set aside, void, or annul, the approval of 16ENT-0091 or any Claims brought against the City due to the acts or omissions in any way connected to the Applicant's project. City shall promptly notify the applicant of any Claim and shall cooperate fully in the defense. Nothing contained in this paragraph prohibits the City from participating in the defense of any Claims, if both of the following occur: (A) The City bears its own attorney's fees and costs. (B) The City defends the action in good faith. 19 Attachment B Draft Statement of Official Action

20 Applicant shall not be required to pay or perform any settlement unless the settlement is approved by the Applicant. In the event any such action is commenced to attack, set aside, void or annul all, or any, provisions of any approvals granted for the Project, or is commenced for any other reason against the City for the act or omissions relating to the Applicant's project, within fourteen (14) days following notice of such action from the City, the Applicant shall file with the City a performance bond or irrevocable letter of credit, or other form of security satisfactory to the City ("the Security") in a form satisfactory to the City, and in the amount of $100,000 to ensure applicant's performance of its defense, indemnity and hold harmless obligations to City. The Security amount shall not limit the Applicant's obligations to the City hereunder. The failure of the Applicant to provide the Security shall be deemed an express acknowledgment and agreement by the Applicant that the City shall have the authority and right, without consent of the Applicant, to revoke the approvals granted hereunder Conformance with Approved Plans 39. This approval is for those plans dated May 26, 2016, a copy of which shall be maintained in the files of the City Planning Division. Project development shall be consistent with such plans, except as otherwise specified in these conditions of approval. 40. Minor amendments to the plans shall be subject to approval by the Director of Planning. An increase of more than 5% of the floor area of the premises, 5% increase in the number of seats, or 10% increase in shelf area used for the display of alcoholic beverages, or a significant change in the approved concept shall be subject to Planning Commission Review. Construction shall be in substantial conformance with the plans submitted or as modified by the Planning Commission, Architectural Review Board, or Director of Planning. No expansion in number of seats, intensity of operation, or outdoor areas shall occur without prior approval from the City of Santa Monica and State ABC. Standard Conditions 41. The property owner shall insure any graffiti on the site is promptly removed through compliance with the City s graffiti removal program. Police 42. Prior to the commencement of alcohol service, a security plan shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues. 20 Attachment B Draft Statement of Official Action

21 43. The applicant authorizes reasonable City inspection of the property to ensure compliance with the conditions of approval imposed by the City in approving this project and will bear the reasonable cost of these inspections as established by Santa Monica Municipal Code Section and Resolution No (CCS) or any successor legislation thereto. These inspections shall be no more intrusive than necessary to ensure compliance with conditions of approval. VOTE Ayes: Nays: Abstain: Absent: NOTICE If this is a final decision not subject to further appeal under the City of Santa Monica Comprehensive Land Use and Zoning Ordinance, the time within which judicial review of this decision must be sought is governed by Code of Civil Procedure Section , which provision has been adopted by the City pursuant to Municipal Code Section I hereby certify that this Statement of Official Action accurately reflects the final determination of the Planning Commission of the City of Santa Monica. Amy Anderson, Chairperson Date Acknowledgement by Permit Holder I hereby agree to the above conditions of approval and acknowledge that failure to comply with such conditions shall constitute grounds for potential revocation of the permit approval. Print Name and Title Date Applicant s Signature 21 Attachment B Draft Statement of Official Action

22 ATTACHMENT C PUBLIC NOTIFICATION INFORMATION Pursuant to Municipal Code Section (E), and in accordance with the posting requirements set forth by the Zoning Administrator, the applicant posted a sign on the property regarding the subject application within 15 days of submittal of the discretionary permit application. At least 8 weeks prior to the public hearing date, the applicant submitted a photograph to verify the site posting and to demonstrate that the sign provides the following information: Project case number, brief project description, name and telephone number of applicant, site address, date, time and location of public hearing, and the City Planning Division phone number. It is the applicant's responsibility to update the hearing date if it is changed after posting. In addition, pursuant to Municipal Code Section , notice of the public hearing was mailed to all owners and residential and commercial tenants of property located within a 750 foot radius of the project and published in the Santa Monica Daily Press at least 14 consecutive calendar days prior to the hearing. On December 16, 2016, the applicant was notified in writing of the subject hearing date. The applicant provided the following information regarding attempts to contact area property owners, residents, and recognized neighborhood associations: Neighborhood Association: Pico Neighborhood Association The applicant met with staff and the leaders from the Pico Neighborhood multiple times. 22 Attachment C Public Notification Information

23 NOTICE OF A PUBLIC HEARING BEFORE THE SANTA MONICA PLANNING COMMISSION SUBJECT: Conditional Use Permit 16ENT-0172 ADDRESS: 2121 Cloverfield Boulevard APPLICANT: Mrs. Gooch s Natural Food Market, Inc. (DBA 365 by Whole Foods Market) PROPERTY OWNER: GRT Portfolio Properties Cloverfield, LLC A public hearing will be held by the Planning Commission to consider the following request: The applicant requests approval of a Conditional Use Permit to allow the sale of alcohol with three Alcoholic Beverage Control (ABC) licenses (Type 21, 41, and 86 Licenses) in conjunction with the operation of a new grocery store (365 by Whole Foods Market) and ancillary restaurant located in the Mixed Use Boulevard Low (MUBL) District. Pursuant to Santa Monica Municipal Code (SMMC) Section (B), a Conditional Use Permit (CUP) is required for the sale and dispensation of alcoholic beverages. DATE/TIME: LOCATION: WEDNESDAY, FEBRUARY 1, 2017 AT 7:00 PM City Council Chambers, Second Floor, Santa Monica City Hall 1685 Main Street, Santa Monica, California HOW TO COMMENT The City of Santa Monica encourages public comment. You may comment at the Planning Commission public hearing, or by writing a letter. Written information will be given to the Planning Commission at the meeting. Address your letters to: Russell Bunim, Associate Planner Re: 16ENT-0172 City Planning Division 1685 Main Street, Room 212 Santa Monica, CA MORE INFORMATION If you want more information about this project or wish to review the project file, please contact Russell Bunim at (310) , or by at russell.bunim@smgov.net. The Zoning Ordinance is available at the Planning Counter during business hours and on the City s web site at The meeting facility is wheelchair accessible. For disability-related accommodations, please contact (310) or (310) TTY at least 72 hours in advance. Every attempt will be made to provide the requested accommodation. All written materials are available in alternate format upon request. Santa Monica Big Blue Bus Lines #1, #2, #3, Rapid 3, #7, #8, #9, Rapid 10, and #18 service City Hall and the Civic Center area. The Expo Line terminus is located at Colorado Avenue and Fourth Street and is a short walk to City Hall. Public parking is available in front of City Hall, on Olympic Drive, and in the Civic Center Parking Structure (validation free). Pursuant to California Government Code Section 65009(b), if this matter is subsequently challenged in Court, the challenge may be limited to only those issues raised at the public hearing described in this notice, or in written correspondence delivered to the City of Santa Monica at, or prior to, the public hearing. ESPAÑOL 23 Attachment C Draft Statement of Official Action