ITY OF LOS ANGELE CALIFORNIA

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1 MICHAEL LOCRANDE CHIEF ZONING ADMINISTRATOR ASSOCIATE ZONING ADMINISTRATORS R. NICOLAS BROWN SUE CHANG LARRY FRIEDMAN LOURDES GREEN LlNN K. WYAn MICHAEL S.Y. YOUNG MAYA E. ZAITZEVSKY /'- ITY OF LOS ANGELE CALIFORNIA ANTONIO R. VILLARAICOSA MAYOR DEPARTMENT OF CITY PLANNING 5. GAIL GOLDBERG, AlCP DIRECTOR OFFICE OF ZONING ADMINISTRATION 200 N. SPRING STREET, 7'" FLOOR Los ANCELES, CA (213) FAX: (213) January 28,201 0 David Gajda (A)(O) Hollywood Media Center LLC 1602 North Cahuenga Boulevard Los Angeles, CA Elizabeth Peterson (R) Elizabeth Peterson Group, Inc Industrial Street, Ste 606 Los Angeles, CA CASE NO. ZA (CUB)(CUX)(ZV) CONDI1-IONAL USE AND ZONE VARIANCE 1602 North Cahuenga Boulevard Hollywood Planning Area Zone : C4-2D-SN D. M. : 148-5A187 C.D. : 13 CEQA : ENV MND Legal Description: Lots 12, I I, FR Lot 10, Wilcox Tract Pursuant to Los Angeles Municipal Code Section W,l, 1 hereby APPROVE: a conditional use to permit the sale and dispensing for consideration of a full line of alcoholic beverages accessory to the operation of a restaurant, and Pursuant to Los Angeles Municipal Code Section W,l8, 1 hereby APPROVE: a conditional use to permit public dancing as a use accessory to the operation of a restaurant, and Pursuant to Charter Section 562 and Los Angeles Municipal Code Section 12.27,l hereby APPROVE: a variance from Section E of the Code to permit parking to be provided within 750 feet of the restaurant by lease in lieu of by covenant, upon the following additional terms and Conditions: 1. All other use, height and area regulations of the Municipal Code and all other applicable goverr~ment/regulatory agencies shall be strictly complied with in the development and use of the property, except as such regulations are herein specifically varied or required. AN EQUAL EMPLOYMENT OPPORTUNITY - AFFIRMATIVE ACTION EMPLOYER

2 CASE NO. ZA (CUB)(CUX)(ZV) PAGE 2 2. The use and development of the property shall be in substantial conformance with the plot plan submitted with the application and marked Exhibit "A", except as may be revised as a result of this action. 3. The authorized use shall be conducted at all times with due regard for the character of the surrounding district, and tlie right is reserved to the Zoning Administrator to impose additional corrective Conditions, if, in the Adrnir~istrator's opinion, such Conditions are proven necessary for the protection of persons in tlie neighborhood or occupants of adjacent property. 4. All graffiti on the site shall be removed or painted over to match the color of the surface to which it is applied within 24 hours of its occurrence. 5. A copy of the first pqge of this grant and all Conditions and/or any subsequent appeal of this grant and its resultant Conditions andlor letters of clarification shall be printed on the building plans submitted to the Zoning Administrator, Fire Department, and the Department of Building and Safety for purposes of having a building permit issued. 6. Indemnification. The applicant shall defend, indemnify and hold harmless the City, its agents, officers, or employees from any claim, action, or proceeding against the City or its agents, officers, or employees to attack, set aside, void or annul this approval which action is brought within the applicable limitation period. The City shall prorrlptly notify the applicant of any claim, action, or proceeding and the City shall cooperate fully in the defense. If tlie City fails to promptly notify the applicant of any claim action or proceeding, or if the City fails to cooperate fully in the defense, the applicant shall not thereafter be responsible to defend, indemnify, or hold harmless the City. 7. The grant made herein shall have a life of ten vears after which the grant entitlement shall be null and void and the applicant shall file for and win approval of a new grant from the Office of Zoning Administration in order to continue the sale of alcohol for on-site consumption. 8. Approved herein is the sale and dispensing of a full line of alcoholic beverages foronsite consumption, in corljunction with a 5,809 square-foot restaurant seating 221 patrons (68 patio seats). Hours of operation are 11 :00 a.m. to 4:00 a.m. Monday through Friday and 8:45 a.m. to 4:00 a.m. Saturday and Sunday. Hours of alcoholic beverage sales shall not exceed 11 a.m. to 1 :45 a.m., daily. (Applicant volunteered) 9. Use of the alley for any purpose authorized herein shall occur only if the applicant lias obtained final approval for its vacation or receives a revocable permit and provides a copy of such approval to the Zoniqg Administrator. In such event, the then former alley may accommodate not more than 68 seats. The outdoor seating area shall be substantially covered with a fire-resistant material to the satisfaction of the Fire Department. No amplified music, dancing or entertainment is permitted outside. Normal patron ingress to and egress from the outdoor seating area shall be only through the front door of the restaurant. Any required emergency exiting shall be to the satisfaction of the Fire Department.

3 CASE NO. ZA (CUB)(CUX)(ZV) PAGE There shall be no speakers permitted on the patio. Any existing speakers on the patio must be removed The dance floor shall not exceed 11 0 square feet and shall be clearly demarcated by differentiation in flooring, enclosing "ropes", railing, or similar treatment. 12. The following are not permitted: hired dancers, any Adult Entertainment use [Los Angeles Municipal Code Section , karaoke, pool tables, and any video or coinoperated machines. 13. Live music, live entertainnient, recorded music, and dancing are permitted during all business hours inside the building as long as the music is inaudible outdoors or to adjoining tenants. 14. Maximum seating capacity shall be limited to 221 seats with the following distribution: 183 seats for the restaurant area (dining areas 1 and 2, and the patio area), and 38 seats for the bar area. 14. The applicant shall obtain signed approval by the Police Department of a security plan. The plan shall include at least one State-licensed sec~~rity guard for each 50 patrons from 8 p.m. until closing. All guards shall maintain hand held radios on their person for communication. All guards shall be employees of a State-licensed security company. They shall wear a distinctive uniform with a patch on each shoulder which reads "Private Security" and which contains the name of the private security company with whom the guards are employed in accordance with Section (f) of the Business and Professions Code. Their responsibility shall be the maintenance of order inside, prevention of any activity that would interfere with the quiet enjoyment of nearby persons and properties, crowd con.trol, and keeping the sidewalks clear for pedestrians. 15. The business operator shall provide an advanced calendar of events to the Police Department so that the Department can review and preclude specific performers. IVo rap or hip hop music is allowed. 16. The applicant shall install a closed circuit digital video camera system integrated with an alarm network to the satisfaction of the Police Department. The cameras shall provide coverage of all interior areas, including all entrances and exits. All tapes shall be maintained for at least 30 days and shall be made available to the Police Department upon request. 17. A copy of this grant shall be retained on the premises and be produced upon request of any Los Angeles Police Department officer. The manager, all employees involved in the sale or dispensirrg of alcoholic beverages, and all security personnel shall be made knowledgeable of the Conditions herein. 18. There shall be no cover charge (other than for bands), no prepayment required, nor shall there be a requirement to purchase a minimum number of drinks.

4 CASE NO. ZA (CUB)(CUX)(ZV) PAGE Coin operated games, pool tables or sirr~ilar game activities or equipment are not permitted. 20. The patio exterior door shall not be propped open but shall only open in order to permit the passage of patrons and staff. 21. The sale of alcoholic beverages is limited to on-site consumption. No patron may drink any beverage on the sidewalk. 22. No portable bar is permitted. 23. The premises shall be maintained as a bona fide restaurant with a kitchen, and shall provide a menu containing an assortment of foods normally offered in restaurants. Food service shall be available at all times during operating hours. (Applicant volunteered). 24. There shall be no exterior advertising of any kind or type, including advertising directly to the exterior from within, promotirlg or indicating the availability of alcoholic beverages, except for one standard size menu on the building wall. (Applicant volunteered) 25. The sale of alcoholic beverages shall be incidental to the sale of food. (Applicant volunteered) 26. Containers of distilled spirits shall not be stored on the premises after being sold to patrons for the purpose of later consumption nor sliall distilled spirits be sold by the full bottle. (Applicant volunteered) 27. No employee shall be permitted to solicit in or upon the licensed premises the purchase or sale of any drink, any part of which is for, or intended for, the consumption or use of such employee or to permit any employee to accept in or upon the prerr~ises any drink for, or intended for the consumption of any employee. No person employed as a waiter or waitress, host or hostess, shall be allowed to sit with patrons while in the establishment. (Applicant volunteered) 28. The quarterly gross sale of food shall exceed the gross sale of alcohol during the same period. The applicant shall maintain records which reflect separately the gross sales of food and the gross sales of alcoholic beverages. These records shall be kept no less frequently than on a quarterly basis and shall be made available to the Police Department uporl request. (Applicant volunteered) 29. The Conditions of this grant, a copy of the approved security plan, business license, dance hall permit, insurance information, and emergency contact phone numbers for the valet and security services shall be retained on the premises at all times and be immediately produced upon request of any Los Angeles Police officer or Department of Alcoholic Beverage Control investigator. The manager and all employees shall be knowledgeable of the Conditions herein.

5 CASE NO. ZA (CUB)(CUX)(ZV) PAGE Within 180 days from the effective date of,this grant, the applicant shall make arrangements with the Police Department to conduct STAR training for all employees who act in the capacity of manager or who serve alcoholic beverages. The applicant shall request written confirmation of completion of the initial training from the Police Department and shall concurrently submit a copy of such request to the Zoning Administrator. 32. An electronic age verification device which is used to determine the age of any person attempting to purchase alcoholic beverages shall be installed at each point of sale location. Each device shall be maintained in an operational condition and all employees shall be instructed in its use prior to the sale of any alcoholic beverage. 33. Private parties and special events shall be scheduled on not more than 24 days annually. The business operator shall provide a monthly advance calendar of events to the Los Angeles Police Department prior to any private party or special event. The Business owner shall be responsible for business operations at all times, and shall not relinquish business operations to any outside promoter or event production company at any time. Food shall be available during all special events and private parties. 34. Any public pay telephone on the property shall be located inside the facility, not outside. 35. The area adjacent to the premises shall be maintained free of litter during all business hours. 36. Partitions separating tables and lounge areas shall not exceed 54 inches in height. No obstructions shall be attached, fastened or co~i~iected to seating areas that restrict, limit or obstruct the clear observation of the occupants. 37. Signs shall be prominently posted stating that California State law prohibits sale of alcoholic beverages to persons who are under 21 years of age. "No Loitering or Public Drinking" signs shall be posted in and outside of the facility. 38. The applicant shall provide leases signed by applicable parties who control parking within 750 feet of the restaurant for a minimum of 40 parking spaces during all hours the restaurant is open for business. The leases shall be for minimum periods of one year and shall be maintained throughout the duration of the grant. The leases shall state that the applicable number of parking spaces are exclusively reserved for the applicant's facility shall be inclusive of all hours the restaurant is open for business. Each lessor shall provide a statement summarizing the number of parking spaces on each affected lot, the number for exclusive use of the facility, and the number of remaining spaces which the lessor controls. Off-site parking lot locations shall be to the satisfaction of the Zoning Administrator. Copies of each lease shall be provided to,the Zoning Administrator upon their execution. Failure to maintain active leases will be grounds for revocation.

6 CASE NO. ZA (CUB)(CUX)(ZV) PAGE All outdoor lighting shall be shielded so as to not produce any glare on other properties. 40 This approval is tied ENV MND. The applicant shall comply with all mitigation measures and conditions of approval identified in that case. 40. Prior to the clearance of anv conditions, the applicant shall show proof that all fees have been paid to the Department of City Planning, Expedited Processing Section. 41. Prior to issuance of any perrr~its relative to this matter, a covenant acknowledging and agreeing to comply with all the terms and conditions established herein shall be recorded in the County Recorder's Office. The qgreement (standard master covenant and agreement for CP-6770) shall run with the land and shall be binding on any subsequent owners, heirs or assigns. This agreement with tlie conditions attached must be submitted to the Department of City Planning for approval before being recorded. After recordation, a certified copy bearing the Recorder's number and date shall be provided to the Department of City Planning for attachment to the subject case file. OBSERVANCE OF CONDITIONS - TIME LIMIT - LAPSE OF PRIVILEGES - TIME EXTENSION All terms and conditions of the approval shall be fulfilled before the use may be established. The instant authorization is further conditional upon the privileges being utilized within two years after the effective date of approval and, if such privileges are not utilized or substantial physical constrl~ction work is not begun within said time and carried on diligently to completion, the authorization shall terminate and become void. A Zoning Administrator may extend the termination date for one additional period not to exceed one year, if a written request on appropriate forms, accompanied by the applicable fee is filed therefore with a public Office of the Department of City Plar~ning setting forth the reasons for said request and a Zoning Administrator determines that good and reasonable cause exists,therefore. TRANSFERABILITY This authorization runs with the land. In the event the property is to be sold, leased, rented or occupied by any person or corporation other than yourself, it is incumbent upon you to advise them regarding the conditions of this grant. VIOLATIONS OF THESE CONDI'TIONS, A MISDEMEANOR Section of the Los Angeles Municipal Code provides: "A variance, conditional use, adjustment, p~nblic benefit or other quasi-judicial approval, or any conditional approval granted by the Director, pursuant to the authority of this chapter shall become effective upon utilization of any portion of the privilege, and the owner and applicant shall immediately comply with its conditions. The violation of any valid condition imposed by the Director, Zoning Administrator,

7 CASE NO. ZA (CUB)(CUX)(ZV) PAGE 7 Area Planning Cornrrrission, City Planning Commission or City Council in connection with the granting of any action taken pursuant to,the authority of this chapter, shall constitute a violation of this chapter and shall be subject to the same penalties as any other violation of this Code.'' Every violation of this determination is punishable as a misdemeanor and shall be punishable by a fine of not more than $1,000 or by imprisonment in the county jail for a period of not more than six months, or by both such fine and imprisonment. APPEAL PERIOD - EFFECTIVE DATE The applicant's attention is called to the fact that,this grant is not a permit or license and that any permits and licenses required by law must be obtained from the proper public agency. Furthermore, if any condition of this grant is violated or if the same be not complied with, then the applicant or his successor in interest may be prosecuted for violating these conditions the same as for any violation of the requirements contained in the Municipal Code. The Zoning Administrator's determination in this matter will become effective after February 12,201 0, unless an appeal therefrom is filed with the City Planninq Department. It is strongly advised that appeals be filed early during the appeal period and in person so that imperfections/incompleteness may be corrected before the appeal period expires. Any appeal must be filed on the prescribed forms, accompanied by the required fee, a copy of the Zoning Administrator's action, and received and receipted at a public office of the Department of City Planning on or before the above date or the appeal will not be accepted. Forms are available on-line at Public offices are located at: Figueroa Plaza Marvin Braude San Fernando 201 North Figueroa Street, Valley Constituent Service Center 4th Floor 6262 Van lvuys Boulevard, Room 251 Los Angeles, CA Van Nuys, CA (213) (818) If you seek judicial review of any decision of the City pursuant to California Code of Civil Procedure Section , the petition for writ of mandate pursuant to that section must be filed no later than the 90th day following the date on which the City's decision became final pursuant to California Code of Civil Procedure Section There may be other time limits, which also affect your ability to seek judicial review. NOTICE The applicant is further advised that all subsequent contact with this office regarding this determination must be with the Zonirlg Administrator who acted on the case. This would include clarification, verification of condition compliance and plans or building permit applications, etc., and shall be accomplished BY APPOINTMENT ONLY, in order to assure that you receive service with a minimum amount of waiting. You should advise any consultant representing you of this requirement as well.

8 CASE NO. ZA (CUB)(CUX)(ZV) PAGE 8 FINDINGS OF FACT After thorough consideration of the statements contained in,the application, the plans submitted therewith, the report of the Zoning Analyst thereon, the statements made at the public hearing on December 16,2009, all of which are by reference made a part hereof, as well as knowledge of the property and surrounding district, I find that the requireme~its for authorizing a conditional use permit under the provisions of Section W have been established by the following facts: BACKGROUND The property is a level, rectangular-shaped, corner parcel of land having 11 0 linear feet of frontage on the east side of Cahuenga Boulevard and 80 linear feet along the north side of Selma Avenue. The easterly property line abuts a 15-foot wide alley and the northerly property line abuts another commercially zone property. The property is developed with a two-story commercial multi-tenant building that was constructed in 1926 and currently occupied by the following uses: 6371 Selma Avenue restaurant (Cafe Etc.) 1600 Cahuenga Boulevard restaurant (Citizen Smith) 1604 Cahuenga Bouevard 2nd floor offices (Hollywood Media Center) 1606 Cahuenga Bo~~levard proposed bar addition (Citizen Smith) 1610 Cahuenga Boulevard Kitchen Twenty-four In 1926, the project site was developed without a parking area and during the years, the property has been used without on-site parking. The applicant proposes to provide the code required parking through a lease agreement with the Los Angeles Community Redevelopment Agency for use of its parking facility located at 6360 Sunset Boulevard (variance request is part of the application request), instead of a recorded covenant. The adjoining 15-foot wide alley has been partially taken out of City service. The alley, which intersects with Selma Avenue, is closed and gated. The gated alley area will be used as the outdoor patio area for the subject restaurant with patron access provided only through the restaurant. No entrance tothe patio is proposed from Selma Avenue. The alley extends north to the southeast corner of the parcel located at 1620 Cahuenga Boulevard which provides vehicular ingresslegress to a private parking lot. The alley abuts another private parking lot that has an easterly frontage and entrance along Cosmo Street. The Hollywood Corr~munity Plan Map designates the property for Regional Center Commercial land uses with corresponding zones of C2 and Height District No. 2D. The property is not within the area of any Specific Plan. However, the project site is within the Hollywood Redevelopment Project Area, the Hollywood Signage Supplemental Use District, the Los Angeles State Enterprise Zone, and the Central City Revitalization Zone.

9 CASE NO. ZA (CUB)(CUX)(ZV) PAGE 9 Parking Information: Cahuenqa Boulevard - both sides of the street observe metered parking East side of the street West side of the street 1 Hour Parking, 8 a.m. to 6 p.m., except Sunday 1 Hour Parking, 8 a.m. to 6 p.m., except Sunday Selma Avenue North side of the street South side of the street 2 Hour Parking, 8 a.m. to 6 p.m., except Sunday Tow Away, No parking 6 a.m. to 3 p.m., Sunday Only 2 Hour Parking, 8 a.m. to 6 p.m., except Sunday Cosmo Street West side of street 1 Hour Parking, 8 a.m. to 8 p.m., Monday - Thursday 1 Hour Parking, 8 a.m. to 12 a.m., Friday - Saturday 1 Hour Parking, 3 p.m. to 8 p.m., Sunday Public Transit: For transit dependent customers/patrons/residents, the site is adequately served by public transit. The MTA operates the Metro Rail Red Line, and Bus Route Numbers 2 and 302 that run along Sunset Boulevard, which is one block south of the site. There is a bus strop and shelter located at the intersection of Sunset Boulevard and Vine Street. Surrounding Properties: Adjoiniqg property to the north is zoned C4-2D-SN and is developed with a one-story commercial building occupied by a one-tenant nightclub (La Velvet Margarita). Beyond that to the north is a one story commercial building occupied by a restaurant and a small surface parking area. Property to the south, across Selma Avenue, is zoned C4-2D-SN and is developed with a one-story multi-tenant corr~mercial building occ~~pied by a cafe, nail shop, medical supply business, and two restaurants which do not dispense alcoholic beverages. Properties to the east, across the 15-foot wide partially improved alley which has been taken out of City service, are zoned C4-2D-SN and developed with a two-story commercial building occupied by an sound studio and a recently completed four-story multi-family creative space building. Beyond that is a one-story warehouse. Properties to the west, across Cahuenga Boulevard, are zoned C4-2D-SN and are developed with a twostory masonry building with offices on the second floor and a bar (The Spot Light Room) on the first floor. Beyond that to the north is a two-story multi-tenant building occupied by a thrift shop, art studio and a theater. Cahuenqa Boulevard, adjoining the property to the west, is a designated Secondary Highway dedicated a width of 75 feet and is improved. Selma Avenue, adjoining the property to.the south, is a Local Street dedicated a width of 60 feet and is improved.

10 CASE NO. ZA (CUB)(CUX)(ZV) PAGE 10 The alley adjoining the property to the east, is a partial through alley, improved with asphalt pavement and concrete gutter, within a 15-foot wide dedication. Previous Cases, Affidavits, Permits, and Orders on the Applicant's Property: Case No. ZA (CUB)(CUX)(ZV): On July 16, 2004, the Zoning Administrator approved a conditional use for the sale and dispensing of a full line of alcoholic beverages and to permit public dancing as an accessory use to the operation of a restaurant; also a variance to permit parking within 750 feet of the restaurant by a lease agreement in lieu of a covenant. Case No. ZA (CUB)(ZV): On July 11,2007, the Zoning Adrr~irristrator approved a conditional use for the sale and dispensing of a full line of alcoholic beverages for on-site consumption in conjunction with a 3,376 square-foot restaurant located at and a variance from Section E, 5 of the Los Angeles Municipal Code to permit two required parking spaces to be provided within 750 feet of the restaurant by a lease agreement in lieu of a recorded covenant Previous zoning related actions on surrounding properties include: Case IVo. ZA (CUB): - On February 2,2009, the Zoning Admirristrator approved a conditional use to permit for the sale and dispensing of a full line of alcoholic beverages for on-site consumption in conjunction with a proposed new restaurantlbar having a 2,845 square feet of interior space, located at Cahuenga Boulevard. Case No ZA (CUB)(A/): - On July 16,2008, the Zoning Administrator: I ) denied a request for a conditional use for the sale and dispensing of a full line of alcohol beverages for on-site consumption and 2) denied a variance request to provide zero parking in lieu of the required 12 parking Case No. ZA (CUB(CUX): - On March 20, 2008, the Zoning Administrator approved a conditional use perrr~it for the sale of a fill line of alcoholic beverages and live entertainment and dancing within a 2,407 square-foot, 65-seat cocktail barllounge, located as 1646 North Cosmo Street. Case No. ZA (CUB)(ZV) - On May 26,2005, the Zoning Administrator approved a request for a conditional use permit, authorizing the sale of a full line of alcoholic beverages for on-site consurr~ption within a 3,400 square feet restaurant and a variance allowing up to 40 off-site parking spaces through a lease agreement in lieu of a recorded covenant, located at North Cahue~iga Boulevard. Case IVo. ZA (CUB)(CUX) - On June 24, 2004, the Zoning Administrator disn-~issed a request for a conditional use permit for public dancing and live entertainment in conjunction with a proposed 6,600 square-foot restaurant as an accessory use. The Zoning Administrator approved a conditional use for the sale of a full line of alcoholic beverages for on-site consumption, in conjunction with a proposed 6,600 square-foot restaurant, and a variance for,the use of 10 off-site parking spaces through lease agreement in lieu of a recorded covenant, located at 1615 North Cahuenga Boulevard.

11 CASE NO. ZA (CUB)(CUX)(ZV) PAGE 11 Public Hearinq The public hearing was held on December 16,2009 in City Hall. The hearing was attended by the applicant, his representative, a neighboring property owner, and an officer from LAPD Vice. Elizabeth Peterson described the proposed request stating that the applicant has an existing approval for the sale of alcohol, patron dancing, and off-site parking by lease agreement pursuant to Case No. ZA (CUB)(CUX)(ZV). The term of the grants expired on August 1,2009. The applicant is requesting to continue the operation of "Citizen Smith" restaurant and bar. The restaurant was one of the first in the area and a catalyst for the restaurant row on Cahuenga Boulevard. -They are expanding what use to be storage space into 507 additional square feet with 38 seats. There is an existing patio seating area that was permitted via a revocable permit. The applicant has an active liquor license. -The request is supported by the Chamber of Commerce and the Central Hollywood Neigl-~borhood Council. She requested that the Zoning Administrator modify: Condition No. 6 to allow for seating via revocable permit; Condition No. 18 to permit the applicant to charge a cover when they have jazz performances; Condition No. 20 which requires doors to be closed; delete Condition No. 22 which prohibits happy hours; modify Condition No. 33 to occasionally rent out the space for parties; and to delete Condition No. 39 which requires one hour of parking validation. Dave Gajada, the ownerlapplicant stated that when they have jazz groups perform they have to pay them equity wages and would like to be allowed to charge a cover to recoup the cost. He stated that the he was aware,that the previous operator in the space did not run the place well and there were complaints about noise from nearby properties. He intends to remedy that situation and make sure the conditions are complied with. Jonathan Hodges owns the property next door which has music studios that operate late at night. He stated that tenants have moved out because of the noise from tlie subject use. He said there are speakers on the patio that blare music, and his tenants have called LAPD. He wanted to know how the applicant has the right to use the whole alley without compensating him for his half. Officer Ritchie from LAPD stated that they had a letter of non-opposition pending. He was opposed to the cover charge as it was an LAPD policy. He wanted the doors to remain closed due to noise complaints, and does not want the entire restaurant shut down for private parties and operated as purely a nightclub. They did not object to deleting the happy hour restriction because it involved the service of alcohol and it was beyond their control to regulate. Elizabeth Peterson stated in response that the kitchen would always remain open when they were private functions. They were expecting to have approximately 30 events for rap parties and they would not be run by club promoters. She said the alley use to be a source of drugs and prostitution and that it is proposed to be converted into a pedestrian alleywith outdoor seatiug. BASIS FOR CONDITIONAL USE PERMITS A particular type of development is subject to the conditional use process because it has been determined that such use of property should not be permitted by right in a particular

12 CASE NO. ZA (CUB)(CUX)(ZV) PAGE 12 zone. All uses requiring a conditional use permit from the Zoning Administrator are located within Section W of the Los Angeles Municipal Code. In order for the sale of a full line of alcoholic beverages for on-site consumption with dancing and live entertainment to be authorized, certain designated findings have to be made. In these cases, there are additional findings in lieu of the four standard findings for most other conditional use categories. MANDATED FINDINGS Following (highlighted) is a delineation of the findings and the application of the relevant facts to same: 1. The proposed location will be desirable to the public convenience or welfare. The present req~~est for a Conditional Use Permit is for the continued use and operation of an existing restaurant serving alcoholic beverages with live entertainment and dancing that was originally granted approval in 2004 but the term limit expired on August 1, The Applicant remains the same and the restaurant is still "Citizen Smith" and the requests are identical to the previous grants. The only change is a proposed 507 square-foot barllounge expansion that will add 38 seats for a total of 221 seats (restaurant and bar). The continued operation of the restaurant and event space will ensure continued service of a restaurant that has become a neighborhood staple and is desirable for public convenience and welfare. The venue "Citizen Smith" has been servicing both local residents and tourists, in addition to hosting private events for the American Film Institute, movie studios, and various movie premiere events and corporate functions. The restaurant will continue its operation with incidental public dancing and live entertainment as well. The restaurant is located on the east side of Cahuenga Boulevard one block south of Hollywood Boulevard and one block north of Sunset Boulevard both heavily traveled commercial corridors in the heart of the Hollywood entertainment area making the location convenient to both area residents and tourists. Restaurants with entertainment is an appropriate use for this site and the zoning on site permits such use provided conditions can be placed to insure that the use not be a nuisance. The location is proper in relation to adjacent uses or the development of the community. Based on the radius map, adjacent uses are predominantly commercial. On the subject block face and the one to the south, there are no residential uses. Across Cahuenga Boulevard is a small hotel, but there are no other residential uses on the west side of either the 1500 or 1600 block of Caliuenga Boulevard. Further east is the Hollywood Regional Library and some multi-family residential uses. There have been a large number of building conversions, changes of occupancy, change of ownership in Hollywood during the past ten years. A resurgence of entertainment uses and nightlife along Hollywood Boulevard and Sunset Boulevard makes.this site

13 CASE NO. ZA (CUB)(CUX)(ZV) PAGE 13 especially attractive as it is sited between these two major boulevards. Because of existing foot traffic in the area of tourists and non-area residents, some of the restaurant patrons may be captured by those not necessarily coming to "Citizen Smith" but from those who happen to walk by and decide to patronize the business. In this regard parking on-site is not necessary since the customer may have parked elsewhere or is on foot from area hotels. While the applicant's property is properlyzoned for restaurant use and the proposed off-site parkiqg location is properly zoned for parking, the business operator needs to impress upon the security staff the responsibility of maintaining a quiet atmosphere among patrons and their vehicles in order to avoid complaints from affected neighbors and businesses and possible abatement response by the City. Interior noise should not impact tenants on the second floor and elsewhere nearby as long as amplified music is properly modulated, and the patio door remains closed other than to permit passage of patrons and staff. The dance floor is not large and there is no formal stage so one may rightfully conclude that dancing and entertainment will be incidental and not the main draw. 3. The use will not be materially detrimental to the character of the development in the immediate neighborhood. The grant requires a strong security presence as the location is neither on Hollywood nor Sunset Boulevards where visibility and police presence is greater, and because there is no assurance that the combination of alcohol, dancing and live entertainment will be conducted with appropriate oversight. The Conditions, many of which were volu~iteered by the applicant, or proposed by the Police Department, or are from similar cases in Hollywood, are intended to help focus the restaurant's mission of providing a fine evening of good food, with secondarily, responsible drinking, dancing and entertainment in a congenial atmosphere. In so doing, the hoped-for eclectic entertainment character of Hollywood should be enhanced. Tlie provision of security guards should maintain safety for patrons and unrelated properties, pedestrians and vehicles. The mere presence of uniformed guards outside should give the public a sense of public safety. This spillover benefit is good for neighboring businesses, the public welfare at large, and tourism in general. Based on the success of the previous approval as well as support from the Hollywood Chamber of Commerce and the Central Hollywood IVeighborhood Council, the Zoning Administrator at this time does not believe that the restaurant will negatively affect the neighborhood character, as conditioned. 4. The proposed location will be in harmony with the various elements and objectives of the General Plan. The Hollywood Plan Map designates the property for Regional Center Commercial land uses for which the C4 Zone is a corresponding classification. The sale of alcoholic beverages and public dancing are not addressed in the Plan Text. The property is also located within the Hollywood Redevelopment project area which is also silent with respect to alcoholic beverage sales and dancing. In such cases, the

14 CASE NO. ZA (CUB)(CUX)(ZV) PAGE 14 Zoning Administrator must interpret the intent of the Plan. Given the content of the Conditions reflecting those of previous grants at other locations and additional limitations imposed by the Zoning Administrator, surrou~iding properties should be protected from predictable impacts of the proposed use. The proposed use is consistent with the desire set forth in these Plans to promote an entertair~ment district. Therefore, the request is in harmony with the General Plan. 5. The proposed use will not adversely affect the welfare of the pertinent community. The proposed on-site alcohol sales and dancing and live entertainment as part of the restaurant and barllounge areas is consistelit with adjacent uses in that it is located in a highly urbanized setting characterized by a wide mix of retail, commercial, restaurant, theater, parking and some multiple-family residential uses. The restaurant and bar was previously conditionally approved and has proven to be a successful and well run business with no record of violations or complaints. The restaurant is already an existing establishment and is part of the significant redevelopment of the Hollywood community. The selling of alcoholic beverages as well as allowing dan,cing and entertainment provides a desired amenity for patrons as well as residents and is consistent with the goal of providing a diversity of uses in the Hollywood area. 6. The granting of the application will not result in an undue concentration of premises for the sale or dispensing for consideration of alcoholic beverages, including beer and wine, in the area of the City involved, giving consideration to applicable State laws and to the California Department of Alcoliolic Beverage Control's guidelines for undue concentration; and also giving consideration to the number and proximity of these establishments within a one thousand foot radius of the site, the crime rate in the area (especially those crimes involving public drunkenness, the illegal sale or use of narcotics, drugs or alcohol, disturbing the peace and disorderly conduct), and whether revocation or nuisance proceedings have been initiated for any use in the area. According to the California State Department of Alcoholic Beverage Control Retail Licenses Report, sixty-five (65) on-site sale and three (3) off-site sale licenses are allocated to the subject Census Tract No. 1907, which has a population of 3269 according the most recent census report. The nearest liquor store with off-site general alcohol sales is located in the 6400 block of Sunset Boulevard, which is one block southeast of the subject site. The applicant has an active liquor license, and as such, the proposed conditional use permit will not lead to an undue concentration of liquor licenses. Statistics from the Los Angeles Police Department's Hollywood Division Vice Unit revealed that in Crime Reporting District No. 646, which has jul-isdiction over the subject property, a total of 852 crimes were reported in 2008, compared to the citywide average of 235 crimes and the high crime reporting district average of 282

15 CASE NO. ZA (CUB)(CUX)(ZV) PAGE 15 crimes for the same period. Crimes reported by LAPD for District 646 include Robbery (94), Aggravated Assault (58), Burglary (22), Larceny (289), Auto Theft (50), Other Assaults (1 54), Forgery (6), Embezzlement (4), Vandalism (82), Other Sex Offense (16), Disorderly Conduct (3), and All Other Violations (52). The conditions imposed in this determination are critical in order to justify the co~itinued operation of on-site facility. The applicant has volunteered numerous conditions related to the service of alcohol that will further reduce any potential crime issues. The manager is advised to strictly observe the Conditions and to meet with the Police Department and neighbors as needed. 7. The proposed use will not detrimentally affect nearby residentially zoned communities in the area of the City involved, after giving consideration to the distance of the proposed use from residential buildings, churches, schools, hospitals, public playgrounds and other similar uses, and other establishments dispensing, for sale or other consideration, alcoholic beverages, including beer and wine. There are six sensitive uses located within 500 feet of the subject property. 1. Senior Housing Complex 1602 lvar Street 2. Los Angeles Public Library 1623 lvar Street 3. U.S Post Office 1627 Wilcox Avenue 4. Los Angeles Film School 1545 Vine Street 5.. Mission Cristiana Church 1546 Wilcox Avenue 6. Church of Scientology 1702 lvar Street Findings established in the previous approval pursuant to Case No. ZA CUB-CUX-ZV are re-affirmed herein since the use of the subject site as a restaurant with live entertainment and dancing were previously approved however the term grant has since expired. Although there are sensitive uses including residential and studio uses within and surrounding the subject restaurant, the restaurant is an existing use. The adjacent property owner complained about existing noise problems and the Zoning Administrator has required the speakers on the patio to be removed. Noise generation in the proposed outdoor patio from dancing, entertainment, and music - live or recorded, is not allowed. The selling of alcoholic beverages and having entertainment as part of the restaurant has been successful and the Applicant wishes to continue the operation. VARIANCE FINDINGS In order for a variance to be granted, all five of the legally mandated findings delineated in City Charter Section 562 must be made in the affirmative. Following (highlighted) is a delineation of the findings and the application of the relevant facts of the case to same: 8. The strict application of the provisions of the Zoning Ordinance would result in practical difficulties or unnecessary hardships inconsistent with the general purpose and intent of the zoning regulations.

16 CASE NO. ZA (CUB)(CUX)(ZV) PAGE 16 The Municipal Code requires one parking space for each 100 gross square feet of floor area for restaurants (and less in the redevelopment area). The applicant seeks to continue use of the restaurant with a lease agreement recognizing that there is no on-site parking. The Applicant is unable to produce a covenant for offsite parking within 750 feet of the site, an alternative allowed by the Code as a matter of right. However, code required parking can be provided off-site by lease agreement with the Community Redevelopment Agency structure located at 6360 Sunset Boulevard approxiniately 1,500 feet south of the site. The request is reasonable as it does not seek a waiver altogether of the parking requirement, but rather the substitution of one legal instrument for another in order to secure the parking spaces. Denial of the request would prevent the restaurant from continued operation of a successful establishment. This is an unnecessary hardship inasmuch as safe, secure, convenient, and exclusive parking forthe restaurant is obtainable in the area and the Applicant has shown that a lease agreement is available. Charter Section 562 states that a variance shall neither be used to grant a special privilege nor to permit a use substantially inconsistent with the limitation on other properties. The grant is consistent with many other variances to permit parking secured by lease in lieu of parking secured on-site or by covenant in Hollywood for restaurants and bars. A variance is an appropriate nieans to seek relief from a condition that is not self-imposed as parking on-site is not physically possible. 9. There are special circumstances applicable to the subject property such as size, shape, topography, location or surroundings that do not apply generally to other property in the same zone and vicinity. Citizen Smith is an existing restaurant continuing to operate in a building built in 1926 without parking. -The property is improved, lot line to lot line, with a two-story building. It is physically impossible to provide on-site parking short of demolition of all or a part of the historic building. The Code allows applicants to satisfy the parking requirement by obtaining parking within 750 feet of the site if the owner of the property offering the parking records a covenant to that effect. The applicant has not been able to obtain a covenant however the applicant has been operating under a lease agreement with the CRA and providing required parking at a facility within 1,500 feet of the restaurant. Thus, while other properties meet the parking requirements by providing the required parking on site, or through nonconforming provisions of the Code, or through recorded covenants this applicant does not and can not provide the same. The leases appear to be relatively equivalent in function, assuring the business operator of the availability of these spaces during all hours of operation. 10. Such variance is necessary for the preservation and enjoyment of a substantial property right or use generally possessed by other property in the same zone and vicinity but which, because of such special circumstances and practical difficulties or unnecessary hardships, is denied the property in question.

17 CASE NO. ZA (CUB)(CUX)(ZV) PAGE I 7 The applicant is not requesting perrr~ission from total relief of parking requirements, but rather to provide an alternative means of securing the parking associated with that use. The right to continue operation of the restaurant is predicated on the provision of off-street parking. There is no appreciable land use impact if the guarantee of that parking is by one legal instrument or another, as long as the lease is specific as to time and obligations of the parties. Granting a variance in such context would not have the effect of bestowing a special privilege to one use not enjoyed by others. 11. The granting of such variance will not be materially detrimental to the public welfare or injurious to the property or improvements in the same zone or vicinity in which the property is located. Patrons who drive to the restaurant can park at a CRA owned structure located at 6360 Sunset Boulevard approximately 1,500 feet south of the site at the Cinerama Dome entertainment center. While the location is not on-site, it is within walking distance of the restaurant. The restaurant has been operating under a lease agreement and the variance will continue such operation. 12. The granting of the variance will not adversely affect any element of the General Plan. The property is located within the Hollywood Plan, a component of the Land Use Elenient of the General Plan. The Hollywood Plan Map designates the property for Regional Center commercial land uses. The C4-2D-SN Zone classification of the property is consistent with that land use designation. The Plan Text does not discuss parking by lease in lieu of by covenant as the Plan is more general than the specificity of the instant request. The Plan is predicated upon sufficient parking for each land use. Given the proximity of the proposed parking location to the restaurant, the availability of valet service, and validation for patron parking, there should be every expectation that patrons will utilize it. Therefore, as no spillover parking onto public streets is envisioned, the provision of parking, as conditioned, will not be adverse to the General Plan. ADDITIONAL MANDATORY FINDINGS 13. The National Flood Insurance Program rate maps, which are a part of the Flood Hazard Management Specific Plan adopted by the City Council by Ordinance No. 172,081, have been reviewed and it has been determined that this project is located in Zone C, areas of minimal flooding. 14. On October 14,2009, the Department of City Planning issued Negative Declaration No. ENV MND. This Mitigated Negative Declaration reflects the independent judgment of the lead agency and determined that this project would not have a significant effect upon the environment provided the potential impacts are mitigated to a less than significant level. I hereby adopt that action. The custodian of the documents or other material which constitute the record of proceedings upon which the decision is based are located with the City of Los Angeles, Planning

18 CASE NO. ZA (CUB)(CUX)(ZV) PAGE 18 Departnient located at 200 North Spring Street, Room 750, Los Angeles, California I concur with the report prepared by Jim Tokunaga, Planning Staff for the Office of Zoning Administration, on this application and approve same. Jim Tokunaga Senior City Plan~ier (2 13) cw)l MAYA ZAITZEVSKY Associate Zoning Administrator MZ: JT:jjq cc: Councilmember Eric Garcetti Thirteenth District Adjoining Property Owners

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