CITY OF CITRUS HEIGHTS PLANNING DIVISION STAFF REPORT PLANNING COMMISSION MEETING April 12, Prepared by: Alison Bermudez, Associate Planner

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1 CITY OF CITRUS HEIGHTS PLANNING DIVISION STAFF REPORT PLANNING COMMISSION MEETING April 12, 2017 Prepared by: Alison Bermudez, Associate Planner REQUEST The applicant requests approval of a Use Permit that will allow for the reformatting of an existing restaurant and tavern into a restaurant and night club. Applicant: Felipe Olvera 100 Cashman Cir Sacramento, CA Owner: Inter-Cal Real Estate 540 Fulton Ave Sacramento CA SUMMARY RECOMMENDATION The Planning Division recommends that the Planning Commission: A. Approve the USE PERMIT for the Plush, located at 7942 Arcadia Drive subject to the findings and conditions of approval listed in the staff report. BACKGROUND The project site is located on the south side of Arcadia Drive, east of Sunrise Boulevard (see Vicinity Map Attachment 1). The property is zoned Shopping Center (SC). The General Plan designation is General Commercial. The project setting is summarized below: Location: 7942 Arcadia Drive, part of the Sunrise Festival Shopping Center (South side of Arcadia Drive, east of Sunrise Boulevard) File Number: UP Parcel Number: REACH Neighborhood: The project is within the boundaries of the Sunrise Oaks Neighborhood Association (#9). The Association reviewed the project and submitted an of concerns regarding the project (Attachment 4). The concerns expressed by the Association are discussed within the Public Outreach section of the report. The project site has been used as a night club for over 27 years. The site first opened as a night club in 1990, when Sacramento County approved a Conditional Use Permit for Paradise Beach. Over time the club has changed ownership several times. After being vacant for a period of time, in March 2012, the facility was issued a Use Permit for the operation of Miami Beach night club. Miami Beach operated without incidents until its closure mid-year of In 2015, the project applicant reopened the facility as Alley Katz, a restaurant serving food and drinks. The current request is to reformat the facility into a Latin themed night club with a restaurant,

2 April 12, 2017 Page 2 dancing and music. The proposal does not include any modifications to the interior or exterior of the building. ZONING AND LAND USES LOCATION ZONING GENERAL PLAN LAND USE ACTUAL USE OF PROPERTY On-Site Shopping Center (SC) General Commercial Restaurant/Tavern North South East West SC and Limited Commercial (LC) SC SC SC General Commercial General Commercial General Commercial General Commercial Golf course Miniature golf course (currently closed and proposed for housing development) Shopping Center Shopping Center/Retail Shopping Center/Retail PROJECT DESCRIPTION The applicant is requesting approval of a Use Permit that would allow for the reformatting of an existing restaurant/tavern to a restaurant/nightclub. The proposed hours of operation are Monday through Friday from 2:30 pm 2:00 am; Saturday and Sunday from 11:00 am to 2:00 am. The facility will operate with an age restriction of 18 and older at all times except for Friday and Saturday nights. Starting at 10:00 pm on Friday and Saturday nights the minimum age for patrons will be increased to 21 years of age. According to the applicant, the club will be one of the few Latin themed facilities in the area. The restaurant will offer an extensive menu of seafood dishes as shown in the sample menus provided (Attachment 3). Food will be available during all hours of operation. Plush will host a variety of Latin performers with a focus on dance music. The applicant states that based on his past experience, majority of the patrons will be couples who enjoy the Latin music and the salsa style dancing. The applicant has provided a Project Description (Exhibit A) that outlines the operational plan of the venue. The applicant has also provided a detailed Security Plan (Exhibit B) that provides information on the venue s operation of the outdoor patio, parking areas, dress code, door procedures, and patron management including how security will address noncompliant customers and when police will be called. Details of the security measures are discussed further in this report. The exterior of the building, as viewed from Arcadia Drive, will retain its existing appearance. The interior of the building will essentially remain as is. The facility has a large outdoor patio that has access from the interior of the building. The patio will provide cabanas/tables/chairs for patrons and the project is conditioned that the use of the patio area will only be for socializing. There will no events or music of any kind allowed on the patio including acoustical or amplified sounds.

3 Use Permit Analysis of Request Plush 7942 Arcadia Drive File # UP April 12, 2017 Page 3 The Citrus Heights Zoning Code requires a Use Permit to operate a night club. Even though the project will have alcohol licensing as a restaurant and serve food, the ancillary actions of dancing and other events warrant the facility to be classified as a night club therefore requiring a Use Permit. Section of the Zoning Code requires that findings be made by the Planning Commission in order to approve a Use Permit. The required findings are listed below in bold italics and are followed by an evaluation of the applicant s request in relation to the required findings. The proposed use as a night club is allowed within the SC (Shopping Center) zoning district and complies with all other applicable provision of the Zoning Code and the Municipal Code; The proposed use as a night club is consistent with the General Plan; The project site is zoned Shopping Center (SC); night clubs are a conditional use within the SC zone. The project site is designated General Commercial (GC) by the General Plan which permits night clubs within this designation. The project site is within the boundaries of the Sunrise MarketPlace. The General Plan identifies the Sunrise MarketPlace as the heart of commercial activity in Citrus Heights. One of the action items of the General Plan is to identify opportunities to expand entertainment, restaurant, lodging and leisure activities that complement and support retail uses in Sunrise MarketPlace. The proposed use is consistent with the City s policies for the Sunrise MarketPlace. The parcel is located within a larger shopping center that has reciprocal parking and access agreements. With a maximum occupancy of 500 persons, the project would have adequate parking. The proposal meets all the minimum requirements of the Zoning Code. The design, location, size, and operating characteristics of the night club are compatible with the existing and future land uses in the vicinity; The site is physically suitable for a night club including access, utility, and the absence of physical constraints; Granting the permit would not be detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to person, property, or improvements in the vicinity and the zoning district in which the property is located. The project site is within an existing commercial center at the intersection of Greenback Lane and Sunrise Boulevard. Arcadia Drive runs along the rear (north and east side) of the shopping center. Within the center are a number of commercial businesses including large retail stores and restaurants. Plush will be located within the shopping center in an existing building adjacent to Arcadia Drive. The closest residential properties are approximately 700 feet away, at the intersection of Sunrise Boulevard and Sun Hill Drive. In November 2016, the City received an application to develop nearby golf course property (across Arcadia Drive) into a variety of housing including single-family homes. Due to the close proximity to the existing residences and the future development of the nearby golf course, staff was concerned about the potential for noise, especially from the patio area. Based upon these concerns, staff met with the applicant in regards to the patio use. Based upon these discussions, the project has been

4 April 12, 2017 Page 4 conditioned that the patio will only be used for socializing. There will be no activities or music of any kind on the patio (Conditions 14 through 16). These conditions should reduce the potential for noise to impact the nearby neighborhoods. Furthermore, the applicant has provided information on their parking plan that will utilize parking lot attendants on Friday and Saturday nights to direct patrons to park in the parking area on the Greenback Lane side of the center. At closing time, the attendants will direct exiting vehicles towards Greenback Lane, away from the Arcadia Drive, all in efforts to reduce noise into the neighborhood. In addition to the parking attendants, on the parking lot will be monitored by uniformed security personnel on Friday, Saturday, and Sunday nights in an effort to discourage patrons from congregating within the parking areas. The Police Department reviewed the project and their comments are provided as Attachment 2. The Police Department felt strongly that in order for a business such as Plush to operate and not be a detriment to the community, the following points should be discussed: The maximum number of patrons allowed within the facility at any one time must be a number that the Police Department believes is manageable. The on-site security and business practices must be complimentary and reinforce the goals of the Police Department. A minimum number of properly licensed and trained security personnel must be present on weekend evenings. Promotional partnerships shall clearly define who is responsible for the event. If the night club is going to contract with a promoter, it should be clear who is responsible for the "event". The location of live bands during concert events to maintain the appropriate noise levels for the surroundings. Below is a discussion of each of the above items. 1. Maximum number of occupants. Due to the size of the building, including the second floor mezzanine and the outdoor patio area, the occupant load of the facility could exceed 900 patrons. Large crowds within this building have been problematic in the past. To provide the Police Department with some comfort the crowd would be manageable, the project has been conditioned to limit the total club capacity to 500 persons (Condition 11). This maximum occupancy limit was also a condition on the Use Permit for the former night clubs that have operated in this location. The applicant supports the Police Departments occupancy limit and will monitor patron entrance/exit to ensure they adhere to this restriction. 2. On-site Security. Due to the expansive size of this building as well as the City s past experience with night clubs, this use clearly has the potential to create problems within the neighborhood and to create a burden on the Police Department if the establishment triggers too many calls for service. The manner in which a facility is managed is a significant factor in whether the business is a positive or negative addition to the community. A key part of the management is the on-site security program. The Police Department has reviewed the applicant s Security Plan (Exhibit B) that outlines their door procedures and parking lot monitoring plan. In addition to the information provided by the applicant, the Police Department has provided additional measures for security as discussed below.

5 April 12, 2017 Page 5 3. Security Personnel. The Police Department considers it imperative that security for the venue utilize uniformed and state licensed security guards. All security guards shall be licensed by the State Department of Consumer Affairs and have a valid guard card in their possession at all times. The project is required to provide the following minimum security personnel: Daily: A minimum of two (2) licensed and uniformed security guards shall be on duty from 9:00 PM until 2:30 AM (or until the crowd disperses, whichever is later). One additional guard shall be provided for each additional 100 patrons, up to a total of 6 security guards at 500 patrons. Parking Area: On Friday Sunday: An additional two (2) guards are required for parking lot security on Friday Sunday nights from 9:00 PM 2:30 AM. If patron size exceeds one-hundred (100), two (2) guards are also required for parking lot security from 9:00 PM 2:30 AM regardless of weekday. It should also be noted that the above security requirements is the minimum number of security personnel required. It will be the responsibility of the club s owner to provide additional guards if the nature of the event or the number of patrons on site requires additional security. Patio Security. The large patio area is also a concern for the Police Department. This area has the ability to accommodate a large number of patrons as well as potentially create excessive outdoor noise. To help detour unruly behavior on the patio, the Police Department is requiring that an additional licensed and uniformed security guard be assigned to monitor the patio door from 9:00 pm to close anytime the patio is open. The applicant has reviewed the security requirements of the Police Department and has included the requirements into their Security Plan that is provided as Exhibit B. 4. Promotional Partnerships. Night clubs may sometimes partner with a promoter for special events. The City has experienced some difficulty defining who is responsible when issues have arose at these promotional events; therefore, the Police Department has conditioned the project to require that a responsible person for the business must be on site and that no third party promotions will be allowed (Condition 13). 5. Noise. The Police Department has concerns about potential for noise coming from the site, especially if the outdoor patio is used for more than socializing. To alleviate this concern, the project has been conditioned that all events (including DJ s and live music) must be held indoors and at all times the venue must comply with the City s Noise Ordinance. (Condition 8). According to the applicant, his existing business that operates at the site (Alley Katz) has had events where attendance has reached 500 and there has been no reported issues including noise complaints. Large events that have been held at the facility include several UFC and boxing pay-per-view nights and two large Halloween parties. Provided that the Planning Commission adopts all of the recommendations from the Police Department, staff believes the proposed use will not be a nuisance or detriment to persons or property within the neighborhood.

6 Use Permit - Conclusion Plush 7942 Arcadia Drive File # UP April 12, 2017 Page 6 The findings required to approve a Use Permit were provided in the prior section. These findings were followed by an evaluation of the applicant s request in relation to the required findings. Staff believes that as currently proposed and conditioned, the findings are present to approve the Use Permit. Staff therefore recommends that the Planning Commission approve the Use Permit, subject to the findings and conditions of approval contained in the staff report. PUBLIC OUTREACH A public hearing notice for the proposed project was published in a general circulating newspaper and mailed to property owners within 500 feet of the project boundaries. As noted previously, the project is within the boundaries of the Sunrise Oaks Neighborhood Association (#9). The Neighborhood Association reviewed the project submitted an of concerns regarding the project (Attachment 4). The concerns included the proposed capacity, parking, and security. Staff believes that concerns presented from the association were addressed through the conditions of approval including the reduction in occupancy, requirement to post and enforce a dress code and through the security plan ENVIRONMENTAL DETERMINATION This project is Categorically Exempt from the requirements of the California Environmental Quality Act under Section Existing Facilities. RECOMMENDATION The Planning Department recommends that the Planning Commission take the following action: A. Approve the USE PERMIT request for Plush as described herein and located at 7942 Arcadia Drive, (File # UP-16-06) subject to the Findings and Conditions of Approval listed below: FINDINGS PLUSH USE PERMIT (FILE # UP-16-06): The proposed use as a night club is allowed within the SC (Shopping Center) zoning district and complies with all other applicable provisions of the Zoning Code and the Municipal Code; The proposed use as a night club consistent with the General Plan land use as night clubs are an allowed use within the General Commercial land use; The design, location, size, operating characteristics, along with the proposed conditions of approval, will provide the operation of the night club as compatible use with the existing and future land uses in the vicinity; The site is currently developed as commercial shopping center and is physically suitable for a night club including access, utility, and the absence of physical constraints; Based upon the proposed conditions of approval to reduce the potential for outdoor noise, the granting of the permit would not be detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to person, property, or improvements in the vicinity and the zoning district in which the property is located.

7 April 12, 2017 Page 7 CONDITIONS OF APPROVAL PLUSH USE PERMIT (FILE # UP-16-06): General Conditions 1. The approved action is operation of a restaurant with dancing and entertainment in compliance with the project specifications provided herein including the Project Description (Exhibit A) and the Security Plan (Exhibit B) and as described within this staff report. (All) 2. The applicant shall comply with all City of Citrus Heights Codes and Regulations, including but not limited to the Citrus Heights Municipal Code and Zoning Code, Uniform Building Code; Uniform Fire Code and Sacramento County Environmental Health Department standards. (All) 3. The business shall participate in an organic waste recycling service if 4 cubic yards or more of organic waste are generated each week as required by Mandatory Organics Recycling (MORe). For additional information visit CalRecyle website (GSD) 4. The applicant shall comply with all conditions of the CA State Department of Alcoholic Beverage Control. (Planning) 5. The conditions contained within the staff report supersede any previous Use Permits issued to this site including CUP-99-06, CUP-00-07, CUPMOD and UP (Planning) 6. Sacramento Area Sewer District s Design Standards apply to any sewer construction and/or modification. (SASD) 7. Sacramento Area Sewer District and Sacramento Regional County Sanitation District may require additional sewer impact fee payments in accordance with each District s Ordinance. Fees are to be paid prior to the issuance of building permits. Applicant should contact Permit Services Unit at (916) for sewer impact fee information. (SASD) 8. Any modifications to the building including changes to the seating layout, installation of facilities, or other changes, will require a building permit. Please contact the Building Division at (916) prior to doing any work. (Building) Operational Conditions 9. The patio area may be opened and used by the public only if approved by Sacramento Fire Metropolitan Fire District for proper exiting. (Fire) 10. The upstairs mezzanine may be opened and used by the public only if approved by the Building Division and Sacramento Metropolitan Fire District. (Building, Fire) 11. The applicant is required to use door tracking system to ensure maximum number of patrons allowed within the facility (which includes the patio area) at any one time is limited to 500. (Police, Planning)

8 April 12, 2017 Page The business, including the activities on the patio, shall comply with the Citrus Heights Noise Ordinance at all times. (Planning) 13. At all times the club is open, a responsible party (which shall be an owner or person in a management position) from Plush shall be on site. The venue shall not host any third party promotions. Any nuisance activity will be the responsibility of the business owner. (Planning, Police) 14. To reduce the potential for noise to be heard outside of the building, all exterior doors shall remain closed (unless required by other State, Federal code/law) during business hours. Doors to the patio from inside the venue shall also remain closed at all times. (Planning, Police) 15. All events, including DJ s and live music, must be held indoors and at all times the venue must comply with the City s Noise Ordinance as stated in Citrus Heights Municipal Code Chapter 34 Environment, Article III - Noise Control, Section (Planning, Police) 16. The outdoor patio shall be used for socializing only. No organized activities or events and or music of any kind shall be held on the patio area. (Planning) 17. The submitted Dress Code shall be posted and enforced. (Planning, Police) Security Measures 18. Security Personnel must complete the Livescan Fingerprint Process with the City of Citrus Heights in order to obtain a permit. The permit must be reprocessed annually. (Police) 19. The following minimum number of permitted security personnel must be present: a) A minimum of two (2) licensed and uniformed security guards shall be on duty from 9:00 PM until 2:30 AM (or until the crowd disperses, whichever is later). Additional guards are needed as follows: patrons require total of three (3) licensed and uniformed security guards patrons require total of four (4) licensed and uniformed security guards patrons require total of five (5) licensed and uniformed security guards patrons require total of six (6) licensed and uniformed security guards b) In addition to the above requirements, a minimum of two (2) additional security guards shall monitor the parking lot as follows: 9:00 PM 2:30 AM Friday Sunday nights 9:00 PM 2:30 AM Any weekday the patron size exceeds one-hundred (100) c) It shall be the responsibility of the business owner to provide additional guards if the nature of the event or the number of patrons on site requires additional security. d) To help detour unruly behavior on the patio, an additional permitted and uniformed security guard be assigned to monitor the patio anytime the patio is open. (Police)

9 April 12, 2017 Page The Police Chief retains the right to order the business owner to pay for one (1) or two (2) sworn police officers to patrol the interior and exterior of the business if the Department deems necessary to reduce, prevent or curtail criminal activity at the establishment. The Police Department may demand this on a recurring basis or a selective basis. (Police) 21. Security assigned to parking must be assigned exclusively to parking lot security. (Police) 22. The Police Chief may restrict or deny certain event if there is knowledge of civil unrest, violence or public safety hazard has surrounded the subject matter in the past. If there is reason to believe the event may pose risk public safety, the Chief reserves the right to deny and/or cancel the event. (Police) 23. The applicant is responsible for notifying the Police Department 30 days in advance of all scheduled events to include, DJ events, live music, concerts and special events. (Police) 24. Parking lot attendants shall direct patron parking on Friday and Saturday nights to the parking area on the Greenback Lane side of the shopping center. Attendants shall also direct patrons to exit towards Greenback Lane to minimize traffic along Arcadia Drive. 25. The Police Chief, in consultation with the Community and Economic Development Director, has the authority to increase/decrease the number of security personnel by issuance of written notice should the Police Chief believe the conditions warrant such a modification. (Police, Planning) 26. All security personnel shall be made aware of all conditions of approval, including all City and ABC-imposed conditions regarding the consumption of alcoholic beverages. It is the responsibility of the applicant to make all security personnel aware of the conditions of approval. (Planning, Police) Facility Conditions 27. A copy of the approved Use Permit and the conditions shall be kept on site and presented to law enforcement upon request. (Police) 28. All existing landscaping on the site shall be maintained. Any missing, dead or dying plants shall be replaced. All irrigation systems shall be inspected to ensure they are in working order and if not, be replaced. (Planning) 29. All evidence of graffiti shall be removed within 48 hours and the exterior finishes of the building restored to its original appearance. (Planning) 30. The trash enclosure shall maintain gates made of solid metal and remain in good working order. (Planning) 31. The site shall maintain all exterior lighting in good working order. Should any new light fixtures be installed, they shall be designed to minimize off-site light and glare and receive approval of the Planning Department. (Police, Planning)

10 April 12, 2017 Page Any violation of these conditions of approval is strictly prohibited. Any violations could result in the revocation or modification of the conditional use permit and/or the imposition of fines and penalties as allowed under Title 16B of the Municipal Code. 33. Minor modifications to the Use Permit may be approved by the Community and Economic Development Director, with the concurrence of the Police Chief, provided such changes are consistent with the operations of the facility as described herein. Major modifications to the Use Permit will require Planning Commission approval. (Planning) 34. Applicant agrees to indemnify, defend, and hold harmless the City, its officials, officers, employees, agents and consultants from any and all administrative, legal or equitable actions or other proceedings instituted by any person not a party to this permit challenging the validity of the Permit or any Project Approval or any Subsequent Project Approval, or otherwise arising out of or stemming from this Permit. Applicant may select its own legal counsel to represent Developer s interests at Applicant s sole cost and expense. The parties shall cooperate in defending such action or proceeding. Applicant shall pay for City's costs of defense, whether directly or by timely reimbursement on a monthly basis. Such costs shall include, but not be limited to, all court costs and attorneys' fees expended by City in defense of any such action or other proceeding, plus staff and City Attorney time spent in regard to defense of the action or proceeding. The parties shall use best efforts to select mutually agreeable defense counsel but, if the parties cannot reach agreement, City may select its own legal counsel and Applicant agrees to pay directly or timely reimburse on a monthly basis City for all such court costs, attorney fees, and time referenced herein. (City Attorney) ALTERNATIVE ACTIONS The following alternative actions are available to the Planning Commission: 1. Continue the request, if the Commission has additional concerns that cannot be addressed by amending or adding conditions, or if the Commission desires additional information. 2. Deny the request if the Commission cannot find that the proposal is consistent with the findings of Section of the Citrus Heights Zoning Code. Attachments: 1. Vicinity Map 2. Citrus Heights Police Department Memo 3. Sample Food Menu 4. from NA #9 5. Floor Plan 6. Resumes and letters provided by applicant Exhibits: A. Project Description B. Security Plan