CITY OF PISMO BEACH PLANNING COMMISSION AGENDA REPORT

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CITY OF PISMO BEACH PLANNING COMMISSION AGENDA REPORT October 9, 2018 Honorable Chair and Planning Commission City of Pismo Beach California RECOMMENDATION: 1) Approve the revocation of Coastal Development Permit and Architectural Review Permit P18-000049 which permitted the demolition of 350 squarefeet of floor area, an addition of 225 square feet of outdoor dining, and an exterior renovation. The project is located at 853 Shell Beach Road (APN 010-371-032) within the Shell Beach (H) Planning Area (Commercial District) and C-1 (Retail Commercial, 1983 Code) Zoning District. The project is located inside the Coastal Zone and is appealable to the Coastal Commission. APPLICANTS: Playa Dulce, LLC 853 Shell Beach Road Pismo Beach, CA 93449 Permit Number P18-000049 EXECUTIVE SUMMARY In light of the recent unpermitted demolition of the entire Alex Bar-B-Q structure, Staff is requesting revocation of Coastal Development Permit and Architectural Review Permit P18-000049 that allowed for the demolition of 350 square-feet of floor area, an addition of 225 square feet of outdoor dining, and an exterior renovation to the existing restaurant building. The project is located at 853 Shell Beach Road (APN 010-371-032) within the Shell Beach (H) Planning Area (Commercial District) and C-1 (Retail Commercial, 1983 Code) Zoning District. The project is located inside the Coastal Zone and is appealable to the Coastal Commission. The proposed revocation is due to the unpermitted demolition of the entire structure on September 18, 2018. PROJECT DESCRIPTION & APPLICATIONS Per Municipal Code 17.121.180, revocation of permits may be approved by the Planning Commission if any of the conditions or terms of such permits are violated. Planning Commission Meeting 10-09-2018 Page 1 of 20

On May 4, 2015, Building Permit B14-000439 was issued for an interior remodel, which included demolition of interior areas only. Under this permit, the contractor was working on interior demolition. On August 13, 2018, a building permit application (B18-000356) was submitted for the 350 square-foot demolition, interior revisions, and the exterior renovation for project P18-000049. This permit was in review and not issued as of September 18, 2018. Existing Structure in 2015 photo STAFF ANALYSIS On June 12, 2018, the Planning Commission approved Coastal Development permit and Architectural Review Permit P18-000049 to allow the demolition of 350 square-feet along the front wall of the existing building in order to create 225 square-feet of new outdoor dining area and to accommodate an exterior renovation. On September 18, 2018, the terms of the approved Coastal Development Permit were violated by demolishing approximately 3,500 square feet, which was the entire main structure. The 400 square-foot detached shed and the chimney structure are the only remaining structures on site. Planning Commission Meeting 10-09-2018 Page 2 of 20

Site as of September 18, 2018 The Planning Commission has the authority to revoke permits if the terms of the permit are violated. The violation was the removal of the structure without Coastal Development permits or building permits. A citation for work without permits was issued by the City on September 25, 2018. An Emergency Coastal Development permit to remove the destruction debris was approved by the Community Development Director on October 1, 2018 and the required Building Permit for the debris removal was approved on October 3, 2018. The required findings for permit revocation are: 17.121.180 Revocation of permits. Any permit granted in accordance with the terms of this Title may be revoked by the planning commission in the manner hereinafter set forth, if any of the conditions or terms of such permits are violated, or if the following findings are made. A. In Connection With Use Permits. The continuance of the use would be detrimental to the health, safety, morals, comfort and general welfare of the persons residing or working in the neighborhood of such use, or would be injurious or detrimental to property and improvements in the neighborhood or to the general welfare of the city. Planning Commission Meeting 10-09-2018 Page 3 of 20

B. In Connection With Variances. Continued relief from the strict application of the terms of this Title would be contrary to the public interest, safety, health and welfare. The terms of the approval for P18-000049 were: 1) The removal of the front 350 square-feet; and (Figure 1) 2) To retain the remainder of the existing building and detached storage structure. 3) Obtain Building permits for work to be performed. The violation: 1) Demolition of 3,500 square feet without Planning or Building permits. Figure 1. Per PC approval - Enclosed porch and approved awning to be removed and existing structure to remain. The existing tower room and detached garage were approved to be used for storage, and the iconic roof-top Alex sign was proposed to remain. During demolition of the interior portion of the building approved for demolition, the contractor notified City staff that the tower structure was unsafe, and City staff authorized emergency demolition of the tower structure. Staff did not approve any further demolition. Due to the demolition of the entire existing structure, which was non-conforming due to insufficient onsite parking, the site is now considered vacant. A vacant site is subject to all current development standards. The Municipal Code applying to the replacement of a building destroyed more than 50% is found in Municipal Code 17.118.070 and refers to destruction by fire, explosion, or other casualty or Act of God. Though this building was not destroyed by an act of nature, it was destroyed more than 50% and therefore any new construction must meet current development standards. 17.118.070 Destroyed buildings. A nonconforming building verified to have been destroyed to the extent of more than fifty percent of its reasonable value at the time of its destruction by fire, explosion, or other casualty or Act of God, may be restored, reconstructed and used only in compliance with the regulations existing in the district wherein it is Planning Commission Meeting 10-09-2018 Page 4 of 20

located. Provided, however, that any single family R-1 nonconforming use may be rebuilt on it original foundation by only the owner-occupant at that time of destruction within a period of one year from the time of destruction, regardless of the percentage of destruction. ENVIRONMENTAL REVIEW Revocation of the Coastal Development permit will negate the accepted Categorical Exemption No. 2018-010 for the project which was based on the approved minor alteration of the existing structure and negligible expansion of use. PUBLIC NOTIFICATION A notice of public hearing was posted at City Hall, on the City s website, at the project site and mailed to all property owners within 300 of the project site by September 28, 2018. The notice was published in the newspaper on September 27, 2018. The meeting agenda and staff report were posted at City Hall and on the City s website on October 5, 2018 in accordance with Government Code Section 54954.2. At the time of the report publication, two comments have been received by staff (Exhibit 3) RECOMMENDATION Adopt the attached resolution (Exhibit 2) approving revocation of Permit P18-000049 and negating Categorical Exemption No. 2018-010. ALTERNATIVES 1. Do not adopt a resolution revoking the permit. 2. Provide direction to Staff. Attachments: Exhibit 1 Vicinity Map Exhibit 2 Resolution Exhibit 3 Letters Exhibit 4 Resolution No. PC-R-2018-020 approved June 12, 2018 Prepared by: Aileen Nygaard, Associate Planner Meeting Date: October 9, 2018 Community Development Director Approval: Jeff Winklepleck, AICP Planning Commission Meeting 10-09-2018 Page 5 of 20

EXHIBIT 1 VICINITY MAP Project Property EXHIBIT 2 Planning Commission Meeting 10-09-2018 Page 6 of 20

RESOLUTION NO. PC-R-2018- REVOCATION OF PROJECT NO. P18-000049 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PISMO BEACH REVOKING A COASTAL DEVELOPMENT PERMIT AND ARCHITECTURAL REVIEW PERMIT FOR THE DEMOLITION OF 350 SQUARE FEET, 225 SQUARE FEET OF NEW OUTDOOR DINING AND AN EXTERIOR RENOVATION LOCATED AT 853 SHELL BEACH ROAD; APN 010-371-032 WHEREAS, Mitch Woolpert, Playa Dulce, the "Applicant" submitted an application to the City of Pismo Beach for a Coastal Development Permit and Architectural Review Permit for the demolition of 350 square feet, 225 square feet of new outdoor dining area, and an exterior renovation; and WHEREAS, the Planning Commission approved Coastal Development Permit No. P18-000049 on June 12, 2018; and WHEREAS, the entire structure at the project site was demolished on September 18, 2018 without authorization, and WHEREAS, the Planning Commission held a duly-noticed public hearing on October 9, 2018 at which all interested persons were given the opportunity to be heard; and WHEREAS, the Planning Commission determines that the terms of the permit were violated by the demolition of 3,500 square feet of structure; and WHEREAS, the Planning Commission has determined that the minor alteration exemption under CEQA was also violated and rendered invalid. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Pismo Beach, California as follows: A. FINDINGS FOR THE REVOCATION OF THE COASTAL DEVELOPMENT PERMIT AND ARCHITECTURAL REVIEW PERMIT: 1. The demolition of 3,500 square feet of structure performed was not permitted by a building permit and was not permitted by Coastal Development Permit P18-000049. The Planning Commission does hereby revoke the Coastal Development Permit Architectural Review Permit. UPON MOTION of Commissioner seconded by Commissioner the foregoing Resolution is hereby approved and adopted the 9th day of October, 2018, by the following roll call vote, to wit: AYES: NOES: Commissioners: Commissioners: Planning Commission Meeting 10-09-2018 Page 7 of 20

ABSTAIN: Commissioners: ABSENT: Commissioners: APPROVED: Doreen Curtze, Chair ATTEST: Elsa Perez, CMC Administrative Secretary Planning Commission Meeting 10-09-2018 Page 8 of 20

EXHIBIT 3 LETTERS Wed 9/19/2018 5:56 PM We are extremely disturbed and upset by the tragic demolition of Alex BBQ in Shell Beach. We feel violated and feel strongly that a thorough investigation into this irresponsible action is warranted. The person or persons responsible for this action need to not only be fined, but also need to be prosecuted and have their license revoked. Don t let this behavior be just the cost of doing business. Punitive costs must be paid to make a point that this behavior will not be tolerated as a standard business practice. This action reflects a callous disregard for the charm and history of this area. There is no way to replace the history that has been lost at this site. Larry and Linda Scarborough Boeker Street Residents Mon 10/1/2018 9:25 PM Members of City Council, Planning Commission and Mr. Lewis, Please don't allow Compass Health to manipulate the facts in order to avoid repercussions. Alex's was an iconic building, it was a landmark, Compass Health should receive the most stringent financial fines that the law allows. Any qualified engineer would be able to see that the structure was in bad condition, they could have and should have dismantled the sections that they were permitted to demolish by hand, they could have shored up the frame. If the structure was unsafe then they should have fenced it off and waited to go through the proper channels through the city. The contractor and the engineer should have known better, there are many old and historic buildings in similar and even worse condition that have been properly refurbished/restored, it happens all the time. Compass Health should now go through the permit process for a new building and for a new restaurant. As it is there isn't enough parking in Shell Beach, Compass Health should be forced to follow codes ie providing adequate parking. If Compass Health is unable provide enough parking then they need to build something else that allows for more parking spaces or else sell property, but parking should be a priority for a new building. That being said, by blaming the City for their own incompetence and not taking responsibility for their actions demonstrates that perhaps Compass Health can't be trusted or aren't competent enough to build in our city. How many other codes and regulations will they skip if they know that they are able to get away with this? Thank you for your time, Susan Testa Pismo Beach Planning Commission Meeting 10-09-2018 Page 9 of 20

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