CALIFORNIA ERIC GARCET T I MAYOR

'., UNNK.WYATI CHIEF ZONING ADMINISTRATOR CITY OF LOS ANGELES DEPARTMENT OF ASSOCIATE ZONING ADMINISTRATORS R. NICOLAS BROWN SUE CHANG LOURDES GREEN CHARLESJ. RAUSCH. JR. JIM TOKUNAGA FERNANDO TOVAR DAVIDS. W8NTRAU8 MAYA E. ZAITZEVSKY CALIFORNIA ERIC GARCET T I MAYOR CITY PLANNING MICHAEL J. LOGRANO OIRKTOR OFFICE OF ZONING ADMINISTRATION 200 N. S...,; SmEFT. 7 1 " FLOOR los ANGELES, CA 90012 (213) 978-1318 FAX: (213) 978-1334 www.planning.lacity.org January 28, 2015 Maguire Properties - One Cal Plaza, LLC (A) c/o Beacon Capital Partners 11755 Wilshire Boulevard, #1770 Los Angeles, CA 90025 Kate Bartolo (R) Kate Bartolo and Associates 8990 Lloyd Place West Hollywood, CA 90069 CASE NO. ZA 2014-1907(CUB) CONDITIONAL USE 300 South Grand Avenue, Suite LP-110 Central City Planning Area Zone C2-4D, R5-4D D. M. 130-5A211 C. D. 14 CEQA ENV 2014-1906-MND Legal Description: Lot 1, Tract 30804 Pursuant to Los Angeles Municipal Code Section 12.24-W, 1 and ZA 2007-5927(ZAI), I hereby APPROVE: a Conditional Use to permit the sale and dispensing of a full line of alcoholic beverages for off-site consumption, and to permit the sale and dispensing of beer and wine only.for on-site consumption, in conjunction with a proposed retail store with a tasting room, upon the following additional terms and conditions: 1. 2. 3. All other use, height and area regulations of the Municipal Code and all other applicable government/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. The use and development of the property shall be in substantial conformance with the plot plan stamp dated January 13, 2015 and floor plan submitted with the application, and marked Exhibit "A", except as may be revised as a result of this action. The authorized use shall be conducted at all times with due regard for the character of the surrounding district, and the right is reserved to the Zoning Administrator to impose additional corrective Conditions, if, in the Administrator's opinion, such Conditions are proven necessary for the protection of persons in the neighborhood or occupants of adjacent property. AN EQUAL EMPLOYMENT OPPORTUNITY -AFFIRMATIVE ACTION EMPLOYER

CASE NO. ZA 2014-1907(CUB) PAGE2 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 page of this grant and all Conditions and/or any subsequent appeal of this grant and its resultant Conditions and/or letters of clarification shall be printed on the building plans submitted to the Development Services Center and the Department of Building and Safety for purposes of having a building permit issued. 6. The applicant shall defend, indemnify and hold harmless the City, its agents, officers, or employees from any claim, action or proceedings against the City or its agents, officers, or employees relating to or to attack, set aside, void or annul this approval which action is brought within the applicable limitation period. The City shall promptly notify the applicant of any claim, action, or proceeding and the City shall cooperate fully in the defense. If the 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 retail store shall be limited to 2,425 square feet of floor area and 19 patron seats including 453 square feet and 14 seats on an outdoor patio located adjacent to the store and within the private property as shown on Exhibit "A". No outdoor patio within the public right-of-way has been requested or granted herein. The patron seats above shall not exceed the maximum capacity/occupancy permitted by the Los Angeles Fire Department and the Department of Building-and Safety. 8. The hours of operation shall be limited to hours between 9 a.m. and 9 p.m. daily. The operating hours shall be posted at the entrances of the store, on the outdoor patios and on the menu. After hours use of the facility, other than for routine cleanup and maintenance, is not permitted. 9. No deviation from the required parking has been requested or granted herein. The required parking shall be complied in compliance with the code. 1 0. Should there be a change in the ownership of the property/the store and/or the business operator, the property owner and the business owner/operator shall provide the prospective new property owner and the business owner/operator with a copy of the conditions of this action prior to the legal acquisition of the property and/or the business. Prior to the closing of the escrow for a potential change in the ownership of the property/business owner or operator, evidence showing that a copy of this determination including the conditions required herewith has been provided to the prospective owner/operator. shall be submitted to the satisfaction of the Zoning Administrator. 11. A barrier with a minimum height of 3 feet 6 inches shall be required to separate the patio area from a public walkway.

CASE NO. ZA 2014-1907(CUB) PAGE3 12. Background music is permitted at a low volume such that any music playing shall not be audible beyond the subject premises. No live entertainment, no amplified music, no public address system shall be permitted on an outdoor patio. Noise generated on-site shall not exceed the decibel levels stated in the Citywide Noise Ordinance. 13. The premises shall provide a menu containing an assortment of foods, which shall be available at all times during operating hours. ' ' 14. The Conditions of this grant shall be retained on the premises at all times and be immediately provided upon request of any Los Angeles Police officer or ABC investigator. The manager and all employees shall be knowledgeable of the conditions required herein. 15. The conditions of the subject grant shall be provided to employees for their review. Prior to the utilization of the grant, a statement signed by the employees stating that they reviewed and agree to comply with the conditions shall be submitted to the Zoning Administrator. 16. All personnel acting in the capacity of a managerofthe premise and all parttirne. and full time employees who serve alcoholic beverages shall complete the. STAR (Standardized Training for Alcohol Retailers) session sponsored by the Los Angeles.., Police Department. Ail employees who serve a'hx>ho.lic' beverages shall.attend follow-up' STAR classes.: ever)t24 months. The STAR training shall be ronductedror al! new hires withintwp months of their employment. Prior to the utilization of the grant, a list of employees who serve alcoholic beverages, their hire date and written confirmation of their STAR training shall be submitted to the Zoning Administrator and shall be retained on the premises at all times and be immediately made available upon request of any los Angeles Police officer or Department of Alcoholic Beverage Control investigator. 17. The applicant/business operator shall be responsible for maintaining free of litter, the area adjacent to the premises over which they have control including the adjoining alley where trash bins for the subject store are located. 18. The applicant shall establish a designated driver program that may include signs on each table alerting patrons of the program, including a statement in the menus, or post signs in prominent locations in the store including outdoor patio area. Prior to the utilization of this grant, a written statement of the program shall be submitted to the satisfaction of the Zoning Administrator prior to the utilization of the grant.

CASE NO. ZA 2014-1907(CUB) PAGE4 19. The business operator shalf comply with Section 6404.5(b) of the Labor Code which prohibits smoking within any place of employment and outside adjacent to the store. There shall be no ashtrays or other receptacles used for the purpose of collecting ash or cigarette/cigar butts inside the store, bathrooms or outside adjacent to the store. 20. Loitering shall be prohibited on or around these premises or this area under the control of the licensee. 21. The applicant I the store operator shall identify a contact person and provide a 24- hour "hot line" telephone number for any inquiries or complaints from the community regarding the subject facility. Prior to the utilization of this grant, the phone number shall be posted on the site so that is readily visible to any interested party. The hot line shall be: posted at the entrance, responded to within 24 hours of any complaints/inquiries received on this hot line, and documented in a log and available for review by the Los Angeles Police Department and the Zoning Administrator upon request on when the calls were received, returned and the action taken at a minimum. 22. No p~ri"nants, banners, ribbons, streamers, spinners or balloon signs shall be permitted. The exterior windows and glass doors of the store shall.be maintained substantially free of signs and other materials from the ground to at least 6 feet above the ground so as to permit surv~illance into the store by Police and security personnel. 23. An electronic age verification device shall be retained on the premises available for use during operational hours. This device shall. be maintained in operational condition and all employees shall be instructed in its use. 24. Prior to the utilization of the subject grant or the sign off of the plans by the Zoning Administrator, a Certificate of Occupancy for the subject store including the patio shall be submitted to the Zoning Administrator for inclusion in the case file. 25. The following mitigation measures included in Case No. ENV 2014-1906-MND shall be complied with. a. Aesthetics (Signage) 1) On-site signs shall be limited to the maximum allowable under the Municipal Code. 2) Multiple temporary signs in store windows and a tong building walls are not permitted.

CASE NO. ZA 2014-1907(CUB) PAGE5 b. Public Services (Police) The plans shall incorporate the design guidelines relative to security, semipublic and private spaces, which may include but not be limited to access control to building, secured parking facilities, walls/fences with key systems, well-illuminated public and semi-public space designed with a minimum of dead space to eliminate areas of concealment, location of toilet facilities or building entrances in high-foot traffic areas, and provision of security guard patrol throughout the project site if needed. Please refer to "Design out Crime Guidelines: Crime Prevention Through Environmental Design" published by the Los Angeles Police Department. Contact the Community Relations Division, located at 100 West 1st Street, #250, Los Angeles, CA 90012; (213} 4.86-6000. These measures shall be approved by the Police Department prior to the issuance of building permits. c. Utilities (Solid Waste) (Operational) Recycling bins shall be provided at appropriate locations to promote recycling of paper, metal, glass, and other recyclable material. These bins shall be emptied and recycled accordingly as a part of the project's regular solid waste disposal program. 26.. The privileges granted for the sale of alcoholic beverages for on- and off-site. consumption shall be for a period of seven years from the effective date of the subject grant, after which a new grantsflould be-"approved" to continue the sale of alcohol. The new entitlement application shall include condition camp liance review with. supporting. documents. showing that: the required conditions have. been complied with.,, '. Further, at any time during the period of.validity of thi.s grant,.should documented evidence be submitted showing a violation of any coridition(s} of this grant resulting in a disruption or interference with the peaceful enjoyment of the adjoining and neighboring properties, the Zoning Administrator reserves the right to require the applicant to file for a plan approval application together with associated fees, the purpose of which will be to hold a public hearing to review the applicant's compliance with and the effectiveness of these conditions. The applicant/petitioner(s) shall provide a summary and supporting documentation of how compliance with each condition of the grant has been attained. Upon this review the Zoning Administrator may modify, add or delete conditions, and reserves the right to conduct the public hearing for nuisance abatement/revocation purposes. 27. Within 30 days of the effective date of this grant, the property owner shall record a covenant acknowledging and agreeing to comply with all the terms and conditions established herein in the County Recorder's Office. The agreement (standard master covenant and agreement form CP-6770) shall run with the land and shall be binding on any subsequent owners, heirs or assigns. The agreement with the conditions attached must be submitted to the Development Services Center for

CASE NO. ZA 2014-1907(CUB} PAGE6 approval before being recorded. After recordation, a certified copy bearing the Recorder's number and date shall be provided to the Zoning Administrator for attachment to the subject case file. OBSERVANCE OF CONDITIONS- TIME LIMIT~ LAPSE OF PRIVILEGES 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 three years after the effective date of approval and, if such privileges are not utilized or substantial physical construction work is not begun within said time and carried on diligently to completion, the authorization shall terminate and become void. 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 CONDITIONS, A MISDEMEANOR Section 12.29 of the Los Angeles Municipal Code provides: "A variance, conditional use, adjustment, public benefit or other quasi-judicial. approval, or any conditional approval granted by the Director, pursuant to the authority of this chapter shailbecome effective upon utilization of any portion ofthe privilege, and the owner and applicant shall immediately comply with its Conditions.,. The violation of any valid Condition imposed by the Director, Zoning Administrator, Area Planning Commission, City Planning Commission or City Council in connection with the granting of any action taken pursuant to the authority ofthis 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 $2,500 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, 2015, unless an appeal therefrom is filed with the City Planning Department. It is strongly advised that appeals be filed early during the appeal period and in person so that imperfections/incompleteness may be correct~d before the appeal period expires. Any appeal must be filed on the prescribed forms, accompanied by

CASE NO. ZA 2014-1907(CUB) PAGE? 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 http:/lplanning.lacitv.org. Public offices are located at: Figueroa Plaza 201 North Figueroa Street, 4th Floor Los Angeles, CA 90012 (213) 482-7077 Marvin Braude San Fernando Valley Constituent Service Center 6262 Van Nuys Boulevard, Room 251 Van Nuys, CA 91401 (818) 374-5050 If you seek judicial review of any decision of the City pursuant to California Code of Civil Procedure Section 1094.5, 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 1094.6. 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 Zoning Administrator who acted on the case. This would include clarification, verification of condition compliance and plans or building. perm~t applications, etc., and shall be accomplished BY APPOINTMENT ONLY, in order to assi:jr:e that you receive service with a minimum amount of waiting. You should advise any consultant. representing you of this requirement as well.,.. ' FINDINGS of FACT After thorough consideration of the statements contained in the application, the plans submitted therewith, and the statements made.atthe publi.c hearing on January 6, 2015, all of which are by reference made a part hereof. as well as knowledge of the property and surrounding district, I find that the requirements for authorizing a conditional use permit under the provisions of Section 12.24-W have been established by the following facts: BACKGROUND The subject property consists of a rectangular, flat, interior lot with a total lot area of 94, 327 square feet. The subject property consists of six record lots tied by use and ownership and has dimensions of 495 feet on the southeast side of Olive Street, 315 feet on the southwest side of 4th Street, and 350 feet on the northwest side of Grand Avenue. The property is a part of the existing California Plaza mixed-use project consisting of two levels of retail, two high-rise office buildings, a central water court, the Museum of Contemporary Arts, the Omni Hotel, the Museum Tower Apartments, and six levels of subterranean parking. The proposed project will occupy 1,972 square feet of tenant space, which is currently vacant. The subject tenant space [Suite #LP-11 0] is not visible from the street level and is located at the back end of a lower plaza level space that includes a waterfall feature and

CASE NO. ZA 2014-1907(CUB) PAGES spiral steps leading to the main plaza level and up to the street level. Public access to the subject property is available through the lower level plaza space from elevators adjacent to the subject premises entrance. The proposed hours for the sale of a full line of alcoholic beverages for off-site consumption are from 9 a.m. to 9 p.m. dajiy, and the hours for the sale of beer and wine on-site consumption are from 2 p.m. to 9 p.m. daily. Properties to the northeast are zoned R5-4D and are improved with multi-level commercial buildings. Properties to the northwest are zoned C2-4D and are improved with multi-level commercial buildings. Properties to the southeast are zoned C2-4D and are improved with multi-level commercial buildings. Properties to the southwest are zoned R5-4D and C2-40 and are improved with multi-level commercial buildings. Grand Avenue adjoining the property to the northwest. is a Major Highway CJass II, dedicated to a right-of-way width of 84 feet and improved with curb, gutter and sidewalk on both sides of the street. "Upper Grand Avenue" is an elevated street that is the street frontage for businesses along it. "Lower Grand Avenue" is an underground street.whose functions are service to the abutting properties... Olive Street adjoining the property to the southeast; is a Secondary Highway, dedicated to a right-of-way width of 90 feet and improved with curb, gutter and sidewalk on both sides of the street..... Previous zoning related actions on the sut>j~ct p~operty and in the area include: Subject Property: Case No. ZA 94-0518(CUB) -On October 25, 1994, the Zoning Administrator approved a conditional use to permit the sale and dispensing of a full line of alcoholic beverages for on-site consumption, in conjunction with a proposed. Case No. ZA 88-0653(CU8) - On August 18, 1988, the Zoning Administrator approved a conditional use to permit the sale and dispensing of a full line of alcoholic beverages for on-site consumption, in conjunction with a proposed restaurant in the C2-4 Zone. Surrounding Property: Case No. ZA 2013-0828(CUB) - On July 24, 2013, the Zoning Administrator approved a conditional use to permit the sale and dispensing of a full line of alcoholic beverages for on-site consumption in conjunction with a proposed new

CASE NO. ZA 2014-1907(CUB) PAGE 9 restaurant in the C2-4D Zone. Located at 400 South Hope Street/401-425 South Grand Avenue. Case No. ZA 2013-0679(CUB} - On July 24, 2013, the Zoning Administrator approved a conditional use to permit the sale and dispensing of a full line of alcoholic beverages for on-site consumption in conjunction with a proposed new restaurant in the C2-4D Zone. Located at 400 South Hope Street/ 401-425 South Grand Avenue. Case No. ZA 2011-2165{CUB) - On June 14, 2012, the Zoning Administrator approved a conditional use to permit an extension of hours for an existing convenience market which is currently authorized to sell beer and wine for off-site consumption. Located at 350 South Grand Avenue, #R-28. Case No. ZA 2008-2250(CU8) - On March 6, 2009, the Zoning Administrator approved a conditional use to permit the sale and dispensing of beer and wine only for off-site consumption in conjunction with an existing 3,079 square-foot convenience market within the California Plaza high-rise office and retail complex. Located at 350 South Grand Avenue #R-2. The project planner conducted a site visit on December 29, 2014 at approximately 2:30p.m. The retail store/tasting room site is currently vacant. The site plan substantially conformed. to on-site observations...the following was received to thejile:.......,.. ' '.. A letter dated November 11, 2014 from the Downtown Los 'Angeles Neighborhood Council in support of the subject application. CONDITIONS IDENTIFIED FOR CONSIDERATION BY THE STATE DEPARTMENTOF ALCOHOLIC BEVERAGE CONTROLRELATIVETO THE SALE AND DISTRIBUTION OF ALCOHOLIC BEVERAGES In approving the instant grant, the Zoning Administrator has not imposed Conditions specific to the sale or distribution of alcoholic beverages, even if such Conditions have been volunteered or negotiated by the applicant, in that the Office of Zoning Administration has no direct authority to regulate or enforce Conditions assigned to alcohol sales or distribution. The Zoning Administrator has identified a set of Conditions related to alcohol sales and distribution for further consideration by the State of California Department of Alcoholic Beverage Control (ABC). In identifying these conditions, the Office of Zoning Administration acknowledges the ABC as the responsible agency for establishing and enforcing Conditions specific to alcohol sales and distribution. The Conditions identified below are based on testimony and/or other evidence established in the administrative record, and provide the ABC an opportunity to address the specific conduct of alcohol sales and distribution in association with the Conditional Use granted herein by the Zoning Administrator.

CASE NO. ZA 2014-1907(CUB) PAGE 10 No "Happy Hour" type of reduced-price alcoholic beverage or "2 for 1" promotion shall be allowed at any time. Discounted food promotions are encouraged. The sale of beer and wine for on-site consumption will be limited from 2 p.m. to 9 p.m. daily. No cocktail lounge shall be maintained on the premises separate from the dining area. No alcohol shall be allowed to be consumed on any adjacent property under the control of the applicant. Except for a tenant sign, no signs are permitted on the outside of the building or directed from the inside to the outside which display or advertise the availability of alcoholic beverages. 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 zone. All uses requiring a conditional use permit from the Zoning Administrator are located within Section 12.24-W of the Los Angeles Municipal Code. In order for the sale of a full line of alcoholic beverages for off-site consumption and the sale of beer and wine for onsite consumption to be authorized, certain designated findings have to be made. In these cases, there are additional findings in lieu of the standard findings for most other conditional use categories. FINDINGS Following (highlighted) is a delineation of the findings and the application of the relevant facts to same: 1. The project will e nhance the built environment in the surrounding neighborhood or will perform a function or provide a service that is essential or beneficial to the community, city or region. The subject application entails a conditional use permit to allow the sale and dispensing of a full line of alcoholic beverages for off-site consumption and the sale and dispensing of beer and wine for on-site consumption, in conjunction with a proposed retail store. The proposed store contains approximately 2,425 square feet of floor area and 19 patron seats including 453 square feet and 14 outdoor seats on an outdoor patio that is located adjacent to the store. The hours of operation for the store will be 9 a.m. to 9 p.m. daily; however, the applicant proposes the sale of beer and wine for on-site consumption from 2 p.m. to 9 p.m. daily. The applicant stated at the hearing that there will be no kitchen facilities at the site; however, food will be available during all hours of operation. The applicant had

CASE NO. ZA 2014-1907(CUB) PAGE 11 operated the specialty wine stores similar to the proposed store in the Downtown Los Angeles area for approximately 32 years. Since the store lease was not extended at the prior location, the applicant plans to relocate the subject wine store at the subject location. The existing location is in a prime area that represents a commercial and regional center. Other retail establishments as well as office buildings and restaurants are located in the vicinity. As proposed, the request does not represent the introduction of use not common to the area. The use will serve a public convenience and welfare and as sited, the location is compatible with the character of the surrounding uses. In addition, the subject grant in conjunction with the imposition of a number of conditions addressing operational issues will safeguard public welfare and enhance public convenience. As such, the project will continue to enhance the surrounding neighborhood or will perform a function or provide a service that is essential or beneficial to the community, city, or region. 2. The project's location, size, height, operations and other significant features will be compatible with and will not adversely affect or further degrade adjacent properties, the surrounding neighborhood, or the public health, welfare and safety. The wine specialty store is located in Downtown Los Angeles characterized by high quality shopping and dining. The grant authorized herein incorporates conditions specifically related to alcohol sales that have been volunteered by the applicant These conditions seek to establish and promote a use that wih remain compatible with other uses in the surrounding community. Employees are required to undergo training regarding sale of alcohol conducted by the Los Angeles Police Department. The store hours are 9 a.m. to 9 p.m. daily; however, the sale of beer and wi ne for on-site consumption is limited 2 p.m. to 9 p.m. daily as proposed by the applicant. The subject grant for alcohol sales is authorized for a term of seven years after which time the applicant will have to request authorization to continue the sale of alcohol. This allows the City an opportunity to review the operation of the store anew. If the operation has been conducted.appropriat~ly.and without creating problems, then a subsequent decision to allow the continuation of such sales may take that into favorable consideration. A record of poor compliance and/or nuisance complaints would allow the City the discretion to not continue the requested use and thus avoid the need to proceed with prolonged nuisance abatement proceedings. Thus, as conditioned the use is anticipated to be compatible with the surrounding area and will not adversely affect or further degrade adjacent properties, the surrounding neighborhood, or the public health, welfare and safety. 3. The project substantially conforms with the purpose, intent and provisions of the General Plan, the applicable community plan, and any specific plan. The subject property is located within the Central City Community Plan, which designates the site for Regional Commercial land use. corresponding to the CR, C1.5, C2, C4, C5, R3, R4, R5, RAS3 and RAS4 Zones, and Height Districts 3D and

CASE NO. ZA 2014-1907(CUB) PAGE 12 40. The existing C2-4D zoning and the proposed commercial and residential uses are consistent with this designation. The subject property is planned and zoned for commercial use. The conditional authorization for the sale of alcoholic beverages for on- and off-site consumption is allowed through the approval of the Zoning Administrator subject to certain findings. The required findings in support have been made herein. 4. The proposed use will not adversely affect the welfare of the pertinent community Permitting the continued sale of alcoholic beverages at any location raises the possibility that other properties will be negatively impacted by intoxicated patrons driving under the influence or causing other inappropriate behavior on foot The approval, as conditioned, is intended to avert any substantial impact on the welfare of residents in the area by including a provision that requires limited operating hours and the monitoring of loitering/nuisance activities on and around the site. The subject store is located within an established commercial district in an area designated and zoned for such uses. The store will have no live entertainment, dancing, or video games. There will be no exterior advertising of the availability of alcoholic beverages and sales of beer and wine for on-site consumption will be secondary to the store operation in conjunction with wine tasting. The store has on-site parking. The Zoning Administrator has also imposed numerous other conditions of approval to help prevent adverse environmental impacts. As conditioned, the proposed use with the sale of alcoholic beverages is compatible with the surrounding development and will not adversely affect the welfare of the surrounding community. 5. 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 Alcoholic 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 State of California Department of Alcoholic Beverage Control (ABC) licensing criteria, 2 on-sale and 1 off-sale licenses are allocated to subject Census Tract No. 2075.02 There are currently 20 on-site and 3 off-site licenses in this Census Tract. Within a 1,000-foot radius of the subject property, the following types of alcoholic beverage licenses are active or pending:

CASE NO. ZA 2014-1907(CUB) PAGE 13 (2) Type 20- Off Sale Beer & Wine (1) Type 21- Off-Sale General (6) Type 41 -On-Sale- Beer and Wine- Bona Fide Public Eating Place (11) Type 47- On-Sale General- Eating Place ( 1) Type 48 - On-Sale General - Public Premises (2) Type 57 -Special On Sale General (1) Type 75- On- Sale General- Brewpub Alcohol establishments within 600 feet are noted as: Red Cat Lounge 631 West 2nd Street Walt Disney Concert Hall Cafe 141 South Grand Avenue Lemonade 250 South Grand Avenue Famima 350 South Grand Avenue, #R-28 Trimana Express 330 South Hope Street Blue Cow Kitchen & Bar 350 South Grand Avenue Omni Hotel 251 South Olive Street California Pizza Kitchen 330 South Hope Street Taipan 330 South Hope Street Nick & Stef's 330 South Hope Street Based upon the numbers noted above, the subject grant will result in an increase in the number of on- and off-site alcoholic beverage outlets beyond the number of alcoho.l licenses allocated in the Census Tract. The subject grant includes operating conditions to mitigate potential impacts associated with the sale of alcoholic beverages at the subject location. It is also recognized that the subject site is located in a commercial corridor where a concentration of stores/restaurants that sell alcoholic beverages is evident and thu~ the higher number of alcoholic beverage licenses is anticipated. According to statistics provided by the Los Angeles Police Department, within Crime Reporting District No. 142, which has jurisdiction over the subject property, a total of 232 crimes were reported in 2013, compared to the citywide average of 180 crimes and the high crime reporting district average of 216 crimes for the same period. In 2013, there were 14 Narcotics, 9 Liquor Law, 13 Public Drunkenness, 0 Disturbing the Peace, 94 Disorderly Conduct, and 4 OWl related arrests. These numbers do not reflect the total number of arrests in the subject reporting district over the accountable year. Arrests for this calendar year may reflect crimes reported in previous years. ~ " ~ ~ ~ ~ I l f! l I i l! I! i l j l I l i ~ ' i I! I i! I I l j! ~

CASE NO_ ZA 2014-1907(CUB) PAGE14 The crime rate numbers are much lower than those rates identified for the City. Nonetheless, the public safety measures to mitigate nuisance and criminal activities have been incorporated into the grant to assure better oversight. 6. 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. The following sensitive uses were observed within a 1, 000-foot radius of the subject property: YMCA 401 South Hope Street Guadalupe Wedding Chapel 237 South Broadway LA Cathedral Wedding Chapel 251 South Broadway The Colburn School 200 South Grand Avenue Angel's Knoll Park Northwest corner of South Hill and West 4th Street No correspondence was received from any of these institutions noted above. There are residential dwelling units located north of the subject site. As noted, since the site is located in a prime commercial corridor, the diversity amongst the uses is not uncommon. This grant has placed numerous conditions on the proposed project. Such imposition of conditions, as well as the imposition of a seven-year term grant, will make the use a more compatible and accountable neighbor to the surrounding uses than would otherwise be the case. The Zoning Administrator believes the restrictions established herein will protect any unspoken legitimate interests of those groups. ADDITIONAL MANDATORY FINDINGS 7. 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 X, areas determined to be outside the floodplain. 8. On November 26, 2014, a Mitigated Negative Declaration (ENV 2014-1906-MND) was prepared for the proposed project. On the basis of the whole of the record before the lead agency including any comments received, the lead agency finds that with imposition of the mitigation measures described in the MND (and identified in this determination), there is no substantial evidence that the proposed project will have a significant effect on the environment. I hereby adopt that action. This Mitigated Negative Declaration reflects the lead agency's independent judgment and

CASE NO. ZA 2014-1907(CUB) PAGE15 analysis. The records upon which this decision is based are with the Environmental Review Section of the Planning Department in Room 750,200 North Spring Street. Inquiries regarding this matter shall be directed to Matthew Quan, Planning Staff for the Office of Zoning Administration at (213) 978-1320. SUE CHANG Associate Zoning Administrator l I! I I l i SC:MQ:Imc cc: Councilmember Jose Huizar Fourteenth District Adjoining Property Owners