Planning Commission Report

Planning Commission Report To: From: Subject: Planning Commission Planning Commission Meeting: May 20, 2015 Amanda Schachter, City Planning Division Manager Agenda Item: 8-A A Conditional Use Permit (14CUP-015) request to allow the on-site and off-site sale of beer and wine (ABC License Type 41) in conjunction with the operation of a new 139-seat restaurant (Joan s on Third) and its ancillary retail component. Address: 1705 Ocean Ave, Unit 110 Applicant: JOTSM, LLC Recommended Action It is recommended that the Planning Commission take the following actions subject to findings and conditions contained in Attachment B: 1. Approve application 14CUP-015 2. Adopt the Statement of Official Action Executive Summary The applicant requests approval of a Conditional Use Permit to allow a Type 41 (On- Sale Beer and Wine for Bona Fide Public Eating Place) alcohol license in conjunction with a new 139-seat, 5,393 square foot restaurant with a retail component, including two outdoor dining areas. The subject tenant space is located within the Village at Santa Monica mixed-use development at the southeast corner of Ocean Avenue and Olympic Drive within the CC (Civic Center) zoning district. According to Section 2.8 of the Development Agreement executed for The Village at Santa Monica mixed-use development, no alcohol shall be sold or otherwise made available in any portion of the site unless a Conditional Use Permit (CUP) is issued by the City. The proposed restaurant offers a full-menu for dine-in and take-out consisting of sandwiches, salads, soups, and baked goods. There is also a retail component of the operation that offers gourmet grocery items and will include the off-site sale of beer and wine in a limited area. There is no bar area proposed as part of this Conditional Use Permit request. The proposed hours of operation are 7 a.m. 12 a.m. (closing) Sunday thru Thursday, and 7 a.m. 1 a.m. (closing) on Friday and Saturday. Alcohol sales and service are proposed during all hours of operation to provide increased beverage options to its customers that are ancillary to the primary restaurant use, and are intended to complement the use s limited retail component and the restaurant s various meal offerings throughout the day. As required by the CC&Rs of The Village mixed-use

development, food and alcohol service to the exterior patios will cease at 10:30 p.m. with full closure of the patio area at 11:00 p.m., seven days a week. The following issues should be considered by the Planning Commission in its review of the proposed project and are addressed in this report: The compatibility of on-site consumption of beer and wine and limited off-site sales on the premise with the surrounding neighborhood. The effectiveness of the recommended conditions of approval in minimizing any potential alcohol-related adverse impacts on the surrounding neighborhood relating to the proposed Type 41 alcohol license. Project / Site Information The following table provides a brief summary of the project location. Additional information regarding the project s compliance with applicable municipal regulations and the General Plan is available in Attachment A. Project and Site Information Table Zoning District: CC Civic Center District Site Location Map Land Use Element Designation: Existing On-Site Improvements (Year Built): Rent Control Status: Adjacent Zoning Districts and Land Uses: Institutional/Public Lands The Village at Santa Monica Mixed-Use Development Exempt Mixed-Use North CC / Public Park East CC / Govt. Offices South CC / Office West RVC / Hotel Subject Space The proposed restaurant with the incidental sale of beer and wine is located within a 4,492 square foot ground floor tenant space with two outdoor patio areas totaling 901 square feet in size. The subject tenant space is the ground floor corner unit with a 48- foot frontage on Ocean Avenue and a 142-foot frontage on Olympic Drive (Exhibit A). Exhibit A: Location Map 2

Environmental Analysis The proposed sale of alcoholic beverages in conjunction with restaurant operations within the existing commercial building is exempt from the provisions of the California Environmental Quality Act pursuant to CEQA Guideline Section 15301, Class 1 (Existing Facilities). The scope of the project involves the incidental sale of alcoholic beverages in conjunction with a bona fide restaurant use within a mixed-use development. As part of the environmental review and approval of the Development Agreement authorizing the construction of The Village mixed-use development, the subject tenant space was anticipated for a commercial foodservice use. The proposed sale of alcoholic beverages for on-site consumption along with meal service does not constitute a significant intensification to the restaurant use. Background A Development Agreement for The Village at Santa Monica was approved by the City Council on May 13, 2008, authorizing a mixed-use development consisting of up to 325 residential units, up to 20,000 square feet of commercial uses (and up to an additional 3,000 square feet of outdoor seating area for restaurant uses), publicly accessible open space, and 614 parking spaces. Construction of the project was recently completed and a Certificate of Occupancy was issued for the subject building on August 15, 2014. The leasing of the commercial spaces within the development has been pursued by the developer and some lessees are moving forward towards securing building permits and beginning construction for the necessary tenant improvements. Project Analysis The applicant is requesting a CUP to allow a Type 41 (On-Sale Beer and Wine for Bona Fide Public Eating Place) alcohol license in conjunction with a new 139-seat, 5,393 square foot restaurant consisting of 4,492 square feet of interior space, a 710 square foot outdoor dining area along the Ocean Avenue frontage, and a 191 square foot outdoor dining area on the Olympic Drive frontage. The off-site sale of beer and wine is also proposed as part of the restaurant s incidental retail component. Joan s on Third is a well-known eatery based out of Los Angeles that also incorporates a retail and to-go portion as part of its operation. The proposed restaurant is the company s third location and will be similar in style to the existing two establishments with a fast-casual concept and service counters offering specialty food items, such as baked goods and cheeses. The business retail component includes the off-site sale of specialty beer and wines, as well as gourmet grocery items such as jams, honeys, mustards, olive oils, vinegars, pastas, and handcrafted products. Additionally, a service counter offers the sale of artisanal cheeses, prepared meats, fresh baked pastries, desserts, sandwiches, and salads. A copy of an existing Joan s On Third menu is included as Attachment D to this staff report. Patrons will order and pay for food and drinks at the counter. Any pre-packaged items will be handed to the customer at that time. Customers will seat themselves at a table inside or outside, where an employee will then deliver the prepared food and any poured beverages to them. 3

Proposed Alcohol Service and Consumption Areas/Floor Plan The layout of the proposed restaurant with incidental beer and wine sales is shown in Exhibit B below and includes a total of 139 seats, which consists of 1,833 square feet of interior customer dining and retail area (65 seats), and two outdoor dining areas totaling 901 square feet (74 seats). The 710 square foot (48 seats) outdoor seating area along Ocean Avenue is located entirely within private property and is secured from the public right-of-way with perimeter railing. The outdoor seating area on Olympic Drive totals 191 square feet (26 seats) in size and is located entirely within the public right-of-way (i.e. sidewalk), which is outside the scope of the Development Agreement s regulatory authority. As such, the separate approval of a Minor Outdoor Dining permit from the City is required prior to the allowance of any encroachment onto the public right-of-way for restaurant or dining purposes. Additionally, no railing or physical barrier is proposed for the outdoor dining area along Olympic Drive; therefore, no alcohol service shall be permitted within this area, consistent with the requirements of the State Department of Alcoholic Beverage Control, which require a physical barrier between the general public and any outdoor dining areas with alcohol service. No bar or dance area is proposed as part of the floor plan and operations associated with this request. The off-site sale of beer and wine is also proposed as part of the restaurant s ancillary retail component to complement the other gourmet retail items offered. The area devoted to the retail display of beer and wine for off-site consumption shall be limited to a maximum of 50 square feet, which equates to less than three percent of the interior customer/dining area and approximately one percent of the overall interior tenant space. The State Department of Alcoholic Beverage Control allows the off-site sale of beer and wine in conjunction with a Type 41 (On-Sale Beer and Wine for Bona Fide Public Eating Place) alcohol license, pursuant to the approval of a Conditional Use Permit by the local agency. Exhibit B: Proposed Floor Plan 4

The proposed floor plan shown in Exhibit B above consists of the following square footage breakdown: Area Square Footage Seats Customer Dining/Retail Area 1,833sf 65 seats Kitchen/Service Area 2,659sf N/A Ocean Ave. Patio 710sf 48 seats Olympic Dr. Patio 191sf 26 seats Total 5,393sf 139 seats The applicant is proposing hours of operation for the restaurant from 7:00 a.m. 12:00 a.m. (closing), Sunday thru Thursday, and 7:00 a.m. 1:00 a.m., Friday and Saturday. Alcohol sales and service are proposed during all hours of operation to provide increased beverage options to its customers that are ancillary to the primary restaurant use, and are intended to complement the use s limited retail component and the restaurant s various meal offerings throughout the day. As required by the CC&Rs of The Village, food and alcohol service to the exterior patios will cease at 10:30 p.m. with full closure of the patio area at 11:00 p.m., seven days a week. Compliance with Development Agreement The Development Agreement for The Village at Santa Monica was approved by the City Council on May 13, 2008. As discussed previously, the Development Agreement authorizes a mixed-use development across three sites consisting of up to 325 residential units, up to 20,000 square feet of commercial and neighborhood serving uses and up to an additional 3,000 square feet of outdoor seating area for restaurant use, publicly accessible open space, and 614 parking spaces. To date, four commercial tenants secured by the developer at The Village have requested City approvals (i.e. building permits, land use entitlements). The use and size of the proposed restaurant, inclusive of the outdoor seating areas along Ocean Avenue and Olympic Drive, is encompassed in the square footage allocated for commercial uses in the Development Agreement. Additionally, the proposed location of the restaurant within the overall development is consistent with the site plan approved in conjunction with the Development Agreement. Lastly, the applicant s request for a Conditional Use Permit to allow incidental alcohol sales in conjunction with a restaurant use is in compliance with the provisions of the Development Agreement in that according to Section 2.8 of the Development Agreement, no alcohol shall be sold or otherwise made available in any portion of the site unless a Conditional Use Permit (CUP) is issued by the City. As proposed, the use, its design, location, and operation are in compliance with the stipulations set forth in the approved Development Agreement. 5

Conformance with General Plan Land Use Element Goal D15 supports the development of the Civic Center as an institutional and cultural center of the City by utilizing the assets of the surrounding area such as the diverse Main Street District. Specifically, Policy D15.1 encourages the creation of a diverse mix of uses and activities in the Civic Center, including government uses, parks and open space, and retail uses. Policy D15.3 seeks to activate the retail along Main Street in conjunction with the expansion of the Civic Auditorium. The proposed use is part of the transformation of the Civic Center district into its intended urban setting and allows the offering of alcoholic beverages in conjunction with a pedestrian-oriented use that will activate the new Village development and complement the services provided to employees, residents, visitors, and tourists in the area. Parking The Village mixed-use development consists of three sites that include a total of 614 offstreet parking spaces within two subterranean parking garages, as required by the approved Development Agreement. The site where Joan s on Third is proposed provides 180 subterranean parking spaces. The retail and guest parking spaces for this building are provided on the first level of the subterranean parking structure. The 20,000 square feet of commercial area, and additional 3,000 square feet of outdoor seating area for restaurant use authorized as part of the Development Agreement for the site was considered in the determination and inclusion of the number of off-street parking spaces required for the overall project. Therefore, the required parking for the proposed restaurant is provided on-site in compliance with the approved Development Agreement. Alcohol Outlets in the Area There are seven existing alcohol license within a 500 radius of the proposed project. The following is a list of the establishment names, addresses, hours of alcohol sales, and alcohol license type: Establishment Address Hours of Operation ABC License Type Chez Jay 1657 Ocean Ave Monday: Tue-Fri: Sat-Sun: Bruno s Italian Restaurant 1652 Ocean Ave Sun-Thurs Fri & Sat Casa Martin 1654 Ocean Ave Sun - Thurs Fri & Sat The Lobster 1602 Ocean Ave Sun-Thurs Fri & Sat Loews Beach 1700 Ocean Ave Seven days a Hotel week Le Merigot Hotel 1740 Ocean Ave Seven days a week The Viceroy Hotel 1819 Ocean Ave Seven days a week 2:00pm-12:00am 11:30am-2:00 am 9:00 am-2:00am Type 47 Type 77 9:00am-12:00am Type 41 9:00am- 1:00am 7:00am-12:00am Type 47 7:00am-1:00am 10:00am-12:00am Type 47 10:00am-1:00am 6:00am-2:00am Type 47 Type 58 Type 66 6:00am-2:00am Type 47 Type 68 6:00am-2:00am Type 47 Type 58 Type 66 City Approval 06AE-005 11CUP-011 97CUP-027 98AD-009 Legal Non- Conforming Legal Non- Conforming 13AD-007 03CUP-007 6

Type 41 (On-Sale Beer & Wine, Bona Fide Public Eating Place) Type 47 (On-Sale General, Bona Fide Public Eating Place) Type 58 (Caterer s Permit) Type 66 (Controlled Access Cabinet Permit) Type 68 (Portable Bar) Type 77 (Event Permit) There are also two current Conditional Use Permit requests pending for two other forthcoming restaurants within The Village at Santa Monica mixed-used development, as identified in the following table: Establishment Address Proposed Hours of Operation elovate 1705 Ocean Ave, Unit 111 Sun-Thurs Fri & Sat 7:00am-12:00am 7:00am-1:00 am ABC License Type Type 47 City Approval Pending (15ENT-0040) Herringbone 1755 Ocean Ave Unit 103 Sun-Thurs Fri & Sat 7:00am-12:00am 7:00am-1:00 am Type 47 Pending (15ENT-0004) The proposed hours of alcohol service from 7:00 a.m. 12:00 a.m. (closing), Sunday Thru Thursday, and 7:00 a.m. 1:00 a.m. (closing), Friday and Saturday are consistent with the existing alcohol establishments in the area and the other proposed alcohol establishments within The Village at Santa Monica. As such, the proposed alcohol sales are not expected to adversely impact nearby uses. The recommended conditions of approval (Condition #2 and #3) regulating the hours of alcohol sales, requiring that the outdoor patio areas close no later than 11 p.m., seven days a week, and restricting alcohol service within the outdoor patio along the Olympic Drive frontage will further lessen any potential alcohol related impacts from the proposed use on the residential occupants of the development and other surrounding uses. Additionally, the area devoted to the retail sale and display of beer and wine for off-site consumption shall be limited to a maximum of 50 square feet (Condition #5). Complete closure and all employees must have left the premises within one hour after closing (Condition #2). Neighborhood Compatibility The Village mixed-use development includes up to 325 residential units and up to 20,000 square feet of commercial space. Additionally, the surrounding neighborhood is made up primarily of government and professional offices, residential uses, Tongva Park, and hotel development along Ocean Avenue. There are no churches or schools located within a 500-foot radius of the project site. Based on the project s location and existing uses in the area, the proposed alcohol service in conjunction with a bona fide restaurant will not result in negative impacts to the surrounding neighborhood. The proposed use will provide a beneficial service to all users in the area, will increase pedestrian activity, and the outdoor patio areas will effectively activate the southeast corner of Ocean Avenue and Olympic Drive. The operations plan submitted illustrates a responsible operation with respect to alcohol service in that the primary use of the space will be a restaurant. Conditions of approval are recommended that require that the primary use of the premises remain a restaurant, that food service be available in all 7

seating areas at all times alcohol is available, and prohibiting dancing and live entertainment. In addition to the conditions stated above, staff recommends the following operational conditions: Condition #1 limits the total seating to 139 seats (indoor and outdoor). Condition #2 limits alcohol service from 7 a.m. 12 a.m., Sunday thru Thursday, and 7 a.m. 1 a.m. on Friday and Saturday. Condition #2 requires closure of the outdoor patio areas no later than 11 p.m., seven days a week. Condition #3 prohibits the service and consumption of any alcoholic beverages within the 26-seat outdoor patio area along the Olympic Drive frontage. Condition #4 requires the approval of a Minor Outdoor Dining Permit for the proposed 26-seat, 191 square foot outdoor dining area along the Olympic Drive frontage. Condition #5 limits the display area devoted to the retail sale of beer and wine to a maximum of 50 square feet. Condition #20 restricts total gross revenues of alcohol sales compared to food sales to a maximum of 35% per year. A standard condition of approval previously applied to this type of alcohol request requiring that alcohol sales be made only to patrons intending to purchase meals is not included as part of staff s recommendation in this report, consistent with City Council direction regarding standard alcohol conditions in the Zoning Ordinance Update to not require it as part of on-site alcohol sales in conjunction with a bona-fide restaurant use. In the past, this specific condition of approval presented practical and operational difficulties for uses and was problematic from an enforcement and monitoring perspective. As conditioned, the limitation on gross revenues of alcohol sales along with other operational restrictions will continue to ensure the primary use of the space remains a bona-fide restaurant. The proposed on-site alcohol sales in conjunction with a bona-fide restaurant will be compatible with the existing institutional, commercial, and residential uses in the neighborhood, as alcohol-related impacts are generally not associated with this type of alcohol outlet. Community and Cultural Services Department Police Department Comments The Community and Cultural Services and Police Departments have been notified of the project and both departments do not have comments or objections to the request for alcohol as proposed by the applicant. Community Meeting and Public Input The applicant notified the residents of The Village mixed-use development of the proposed project and held a public meeting at the site for interested individuals on May 6, 2015. The meeting included restaurant representatives from all three pending Conditional Use Permit requests for alcohol sales at The Village (i.e. Joan s on Third, Herringbone, elovate), and provided a chance for residents to meet the chefs, learn 8

about the restaurants, and ask general questions. Approximately 200 people attended the meeting. Some concerns were expressed related to potential odors and noise impacts; however, the restrictions on the outdoor patio hours were presented, and it was clarified that all cooking facilities are vented to the roof, which satisfactorily addressed both of these concerns. There was no significant opposition to the proposals expressed. Letters and a petition of support were provided and are included as Attachment E to this staff report. The applicant is also scheduled to present the project to the Pico Neighborhood Association on May 14, 2015. Alternative Actions: In addition to the recommended action, the Planning Commission could consider the following with respect to the project: A1. Continue the project for specific reasons consistent with applicable deadlines and with agreement from the applicant; A2. Articulate revised findings and/or conditions to Deny, with or without prejudice, the subject application. Prepared by: Ariel Socarras, Associate Planner Paul Foley, Principal Planner Attachments A. General Plan and Municipal Code Compliance B. C. Public Notification D. Sample Menu E. Petition / Letters of Support F. Project Plans 9

ATTACHMENT A GENERAL PLAN AND MUNICIPAL CODE COMPLIANCE WORKSHEET Project Location and Permit Processing Time Limits Project Address: 1705 Ocean Avenue, Unit 110 Application Filing Date: October 16, 2014 CEQA Deadline: November 16, 2014 PSA Deadline: January 16, 2015 Total Process Review Time (Days): May 20, 2015 (217 days) General Plan and Municipal Code Compliance Worksheet CATEGORY LAND USE ELEMENT MUNICIPAL CODE PROJECT Permitted Use N/A Alcohol outlets with a Type 41 alcohol license require a Conditional Use Permit. [SMMC 9.04.10.18.020] Applicant requests a Conditional Use Permit for a Type 41 (On-Sale Beer and Wine for Bona Fide Eating Place) to allow the on-site sale and consumption of beer and wine in conjunction with a restaurant, and the limited off-site sale of beer and wine. 10 Attachment A General Plan & Municipal Code Compliance Worksheet

ATTACHMENT B DRAFT STATEMENT OF OFFICIAL ACTION City of Santa Monica City Planning Division PLANNING COMMISSION STATEMENT OF OFFICIAL ACTION PROJECT INFORMATION CASE NUMBER: Conditional Use Permit 14-015 LOCATION: 1705 Ocean Avenue, Unit 110 APPLICANT: PROPERTY OWNER: CASE PLANNER: REQUEST: CEQA STATUS: JOTSM, LLC Santa Monica Urban Housing A, LLC Ariel Socarras, Associate Planner A Conditional Use Permit (14CUP-015) request to allow the on-site and off-site sale of beer and wine (ABC License Type 41) in conjunction with the operation of a new 139-seat restaurant (Joan s on Third) and its ancillary retail component. This request is exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to Section 15301 (Class 1), Existing Facilities, of the State Implementation Guidelines in that the project involves the incidental sale of alcoholic beverages in conjunction with the operation of a bona fide restaurant within an existing mixed-use development. As part of the environmental review and approval of the Development Agreement authorizing the construction of The Village mixed-use development, the subject tenant space was anticipated for a commercial foodservice use. The sale of alcoholic beverages as an incidental component to a restaurant use does not constitute a significant intensification to the restaurant use. 11 Attachment B

PLANNING COMMISSION ACTION May 20, 2015 X Determination Date Approved based on the following findings and subject to the conditions below. Denied. Other: EFFECTIVE DATES OF ACTIONS IF NOT APPEALED: EXPIRATION DATE OF ANY PERMITS GRANTED: LENGTH OF ANY POSSIBLE EXTENSION OF EXPIRATION DATES*: June 4, 2015 December 4, 2016 6 months * Any request for an extension of the expiration date must be received in the City Planning Division prior to expiration of this permit. Each and all of the findings and determinations are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the Project. All summaries of information contained herein or in the findings are based on the substantial evidence in the record. The absence of any particular fact from any such summary is not an indication that a particular finding is not based in part on that fact. FINDINGS: CONDITIONAL USE PERMIT FINDINGS 1. The proposed use is one conditionally permitted within the subject district and complies with all of the applicable provisions of the "City of Santa Monica Comprehensive Land Use and Zoning Ordinance", in that an alcohol license is conditionally permitted citywide. SMMC Section 9.04.10.18.020 provides that a Conditional Use Permit is required for the sale and consumption of alcoholic beverages. 2. The proposed use would not impair the integrity and character of the district in which it is to be established or located, in that the proposed alcohol sales will be incidental to the primary use of the business as a bona fide restaurant. Additionally, the Civic Center district encourages this type of use to create an urban neighborhood setting and to provide neighborhood serving uses for the employees, regional visitors, tourists, and residents in the area. Although alcohol-related impacts are not generally associated with this type of use with alcohol service, conditions of approval have been included to mitigate any potential alcohol-related impacts such as restricting the hours of alcohol sales, prohibiting alcohol sales within the Olympic Drive outdoor seating area, and limiting the hours that alcohol sales shall be permitted in the Ocean Avenue 12 Attachment B

outdoor seating area. Furthermore, to ensure that the proposed primary use remains as a restaurant, Condition No. 20 requires that no more than 35% of total gross revenues per year shall be from alcohol sales. As conditioned, it is anticipated that the proposed alcohol service will not impair the integrity and character of the district. 3. The subject parcel is physically suitable for the type of land use being proposed, in that the site is located in an urban setting with all necessary infrastructure in place. The site is currently developed with a mixed-use project that includes up to 20,000 square feet of commercial space, and an additional 3,000 square feet of outdoor patio area for restaurants. There are no unusual characteristics that would preclude or restrict the establishment of a restaurant with incidental alcohol service on the subject parcel. 4. The proposed use is compatible with any of the land uses presently on the subject parcel if the present land uses are to remain, in that the subject site is currently developed as a mixed-use development consisting of up to 325 residential units, up to 20,000 square feet of commercial and neighborhood serving uses (and up to an additional 3,000 square feet of outdoor seating area for restaurant use), publicly accessible open space, and 614 parking spaces. It is the intent of the Civic Center district and the stipulations of the approved Development Agreement for The Village at Santa Monica to create an urban neighborhood setting with a variety of neighborhood serving uses for the employees, visitors, and residents to the area. The proposed restaurant use with incidental beer and wine sales implements this goal and is compatible with mix of land uses on the subject parcel. Furthermore, the proposed alcohol service will occur in conjunction with food service as an incidental component to the primary use as a restaurant, and alcohol-related problems are not generally associated with this type of alcohol outlet. The conditions of approval associated with the Conditional Use Permit approval, including but not limited to, restricting the hours of alcohol sales, prohibiting alcohol sales within the Olympic Drive outdoor seating area, and limiting the hours that alcohol sales shall be permitted in the Ocean Avenue outdoor seating area will further promote compatibility with uses on the subject parcel, including the residential units. 5. The proposed use would be compatible with existing and permissible land uses within the district and the general area in which the proposed use is to be located, in that the Zoning Ordinance conditionally permits restaurants with alcohol service in the Civic Center district. The proposed use is compatible to the existing government offices and cultural uses in the area, as well as the anticipated uses that include a mix of restaurants, retail, and urban housing. Conditions of approval have been included to mitigate operational and alcoholrelated impacts. 6. There are adequate provisions for water, sanitation, and public utilities and services to ensure that the proposed use would not be detrimental to public 13 Attachment B

health and safety, in that the site is located in an urbanized area adequately served by existing infrastructure. 7. Public access to the proposed use will be adequate, in that vehicular access to the building s subterranean garage is provided from Ocean Avenue, and pedestrian access is provided along Ocean Avenue and Olympic Drive. 8. The physical location or placement of the use on the site is compatible with and relates harmoniously to the surrounding neighborhood, in that the restaurant with incidental alcohol service is proposed within The Village At Santa Monica mixeduse development, which consists of up to 325 residential units, up to 20,000 square feet of commercial and neighborhood serving uses (and up to an additional 3,000 square feet of outdoor seating area for restaurant use), publicly accessible open space, and 614 parking spaces. The proposed use with incidental alcohol service and the overall development is designed as an active pedestrian-oriented area that will encourage a walkable destination for employees, visitors, tourists, and residents to the development. Furthermore, the proposed use with alcohol sales, and the overall development in general, will serve to enhance the Civic Center district to promote activity and provide interconnectivity with the neighboring Downtown and Main Street districts. 9. The proposed use is consistent with the goals, objectives, and policies of the Land Use and Circulation Element (LUCE), in that Land Use Element Goal D15 supports the development of the Civic Center as an institutional and cultural center of the City by utilizing the assets of the surrounding area such as the diverse Main Street District. Specifically, Policy D15.1 encourages the creation of a diverse mix of uses and activities in the Civic Center, including government uses, parks and open space, and retail uses. The proposed use is a valuable neighborhood serving use that achieves these goals and enhances the pedestrian activity in the area. Additionally, Policy D15.3 seeks to activate the retail along Main Street in conjunction with the expansion of the Civic Auditorium. The proposed use will contribute to the improvements occurring in the Civic Center district to establish its intended urban setting. 10. The proposed use would not be detrimental to the public interest, health, safety, convenience, or general welfare, in that alcohol-specific conditions have been added to mitigate any potential adverse impacts, including but not limited to limitations on alcohol service hours on the premises, that would minimize any noise-related issues associated with serving and consuming alcohol on the premises. As conditioned, the proposed alcohol use would be compatible with existing residential uses on the premises and permissible land uses within the district and the general area. 11. The proposed use conforms precisely to the applicable performance standards contained in Subchapter 9.04.12 and special conditions outlined in Subchapter 9.04.14 of the City of Santa Monica Comprehensive Land Use and Zoning 14 Attachment B

Ordinance, in that no performance standard permit is required. 12. The proposed use will not result in an over concentration of such uses in the immediate vicinity, in that the proposed use with alcohol service is located in the City s Civic Center district, which includes a mix of government offices, cultural activities, open space, and the forthcoming The Village at Santa Monica mixeduse development that will include residential, retail, and restaurant uses. The general vicinity is highly frequented by local employees, regional visitors, and tourists. There are seven alcohol related uses within 500 feet of the proposed use, none of which have contributed significantly to alcohol-related problems in the area. Additionally, it is anticipated that the implementation of the recommended conditions of approval will minimize any impacts on the surrounding neighborhood and general vicinity. Furthermore, alcohol-related impacts are generally not associated with this type of alcohol outlet. ALCOHOL OUTLET FINDINGS 1. The proposed use will not adversely affect the welfare of neighborhood residents in a significant manner in that the use will be located in the Civic Center district, which is intended to foster an urban setting and contains a mix of government offices, cultural activities, open space, and The Village at Santa Monica mixeduse development. The Type 41 ABC license would allow for the sale of beer and wine in conjunction with food service associated with the primary restaurant use. Furthermore, the off-site sale of beer and wine is also permitted by the State of California Alcoholic Beverage Control with a Type 41 License and the approval of a Conditional Use Permit by the local agency. The proposed off-site sale of beer and wine is associated with the restaurant s limited retail component and is intended to complement the various other gourmet retail items offered. Conditions have been added to mitigate potential impacts associated with alcohol consumption, including but not limited to, restricting the hours of alcohol sales, restricting the size of retail area devoted to the display of beer and wine, prohibiting alcohol sales within the Olympic Drive outdoor seating area, and limiting the hours that alcohol sales shall be permitted in the Ocean Avenue outdoor seating area. 2. The proposed use will not contribute to an undue concentration of alcohol outlets in the area in that the proposed use with alcohol service is located in the City s Civic Center district, which includes a mix of government offices, cultural activities, open space, and The Village at Santa Monica mixed-use development that includes residential, retail, and restaurant uses. The general vicinity is highly frequented by local employees, regional visitors, and tourists. There are seven alcohol related uses within 500 feet of the proposed use that have not contributed significantly to alcohol-related problems in the area. Additionally, it is anticipated that the implementation of the recommended conditions of approval will minimize any impacts on the surrounding neighborhood and general vicinity. Furthermore, alcohol-related impacts are generally not associated with this type 15 Attachment B

of alcohol outlet. 3. The proposed use will not detrimentally affect nearby neighborhoods considering the distance of the alcohol outlet to residential buildings, churches, schools, hospitals, playgrounds, parks, and other existing alcohol outlets in that the conditions for approval, such as restricting the hours of alcohol sales, prohibiting alcohol sales within the Olympic Drive outdoor seating area, limiting the hours that alcohol sales shall be permitted in the Ocean Avenue outdoor seating area, and limiting the alcohol to food purchase ratio to a rate of 35 percent will minimize the potential effect on residential uses in the vicinity. As conditioned, the proposed alcohol use would be compatible with existing residential uses located on the premises, and other permissible land uses within the district and the general area. 4. The proposed use is compatible with existing and potential uses within the general area in that the use is located in the Civic Center district, which encourages this type of use to foster an urban neighborhood setting and to provide neighborhood serving uses for the employees, visitors, tourists, and residents in the area. The proposed restaurant with incidental alcohol service is compatible with, and will effectively serve, the uses in the surrounding vicinity. Furthermore, the recommended alcohol-specific conditions of approval, including but not limited to restricting the hours of alcohol sales, prohibiting alcohol sales within the Olympic Drive outdoor seating area, limiting the hours that alcohol sales shall be permitted in the Ocean Avenue outdoor seating area, and limiting the alcohol to food purchase ratio to a rate of 35 percent will minimize any noiserelated issues associated with serving and consuming alcohol on the premises. As conditioned, the proposed alcohol use would be compatible with existing residential uses located on the premises, and other permissible land uses within the district and the general area. 5. Traffic and parking congestion will not result from the proposed use in that the parking demand and traffic patterns in the neighborhood will not change due to the provision of incidental alcohol sales in conjunction with the primary use of the subject tenant space as a 139-seat restaurant. Including alcoholic beverages to an establishment s menu increases its product offerings and beverage choices; however, the offering of alcoholic beverages as a service component of a restaurant does not, in and of itself, increase traffic and parking demand in the neighborhood. Furthermore, the proposed restaurant use was an anticipated use for this tenant space in the review, consideration, and adoption of the Development Agreement for The Village at Santa Monica mixed-use project, which included an environmental review and analysis of traffic conditions as well as operational and circulation characteristics. All required parking for the proposed use is provided on the first subterranean parking level of the site, as approved in the Development Agreement. 16 Attachment B

6. The public health, safety, and general welfare are protected in that alcoholspecific conditions have been added to mitigate any potential adverse impacts, including but not limited to, restricting the hours of alcohol sales, prohibiting alcohol sales within the Olympic Drive outdoor seating area, limiting the hours that alcohol sales shall be permitted in the Ocean Avenue outdoor seating area, and limiting the alcohol to food purchase ratio to a rate of 35 percent, that would minimize any noise-related issues associated with serving and consuming alcohol on the premises. Additionally, the alcohol sales are an incidental component of the primary use of the site as a restaurant and no bar area is proposed. As conditioned, the proposed alcohol use would be compatible with existing residential uses on the premises and will not adversely impact the public health, safety, and general welfare of the employees, visitors, tourists, residents, and others in the general area. 7. No harm to adjacent properties will result in that the proposed use will operate primarily as a restaurant. Alcohol sales are an incidental component of the primary use as a bona-fide restaurant. Additionally, there is no bar area proposed to encourage any deviation from the primary use as a restaurant. Although alcohol-related impacts are not generally associated with these types of establishments that provide alcohol service, conditions of approval have been included to mitigate any potential alcohol-related impacts such as restricting the hours of alcohol sales, limiting the hours that alcohol sales shall be permitted in the outdoor seating area, restricting the floor plan to prohibit a bar area, and limiting the alcohol to food purchase ratio to a rate of 35 percent. 8. The proposed use is consistent with the goals, objectives, and policies of the Land Use and Circulation Element (LUCE), in that Land Use Element Goal D15 supports the development of the Civic Center as an institutional and cultural center of the City by utilizing the assets of the surrounding area such as the diverse Main Street District. Specifically, Policy D15.1 encourages the creation of a diverse mix of uses and activities in the Civic Center, including government uses, parks and open space, and retail uses. The proposed use is a valuable neighborhood serving use that achieves these goals and enhances the pedestrian activity in the area. Additionally, Policy D15.3 seeks to activate the retail along Main Street in conjunction with the expansion of the Civic Auditorium. The proposed use is part of the transformation of the Civic Center district into its intended urban setting and allows a newly established restaurant to offer alcohol beverages to complement the services provided to employees, residents, and visitors in the area. 17 Attachment B

CONDITIONS OF APPROVAL: PLANNING AND COMMUNITY DEVELOPMENT Project Specific Conditions 1. Seating arrangements for sit-down patrons shall not exceed 139 seats. Interior seating shall not exceed 65 seats, seating in the outdoor patio area along Ocean Avenue shall not exceed 48 seats, and seating in the outdoor patio area along Olympic Drive shall not exceed 26 seats. 2. The permitted hours of alcohol service shall be 7:00 a.m. 12:00 a.m. (closing) Sunday thru Thursday, and 7:00 a.m. 1:00 a.m. (closing) Friday & Saturday, with complete closure and all employees vacated from the building within one hour after closing. No "after hours" operations shall be permitted. The outdoor patio areas shall close at 11:00 p.m., seven days a week. 3. There shall be no service or consumption of alcoholic beverages to customers within the outdoor patio along the Olympic Drive building frontage. 4. The review and approval of a Minor Outdoor Dining Permit shall be required prior to the allowance of any encroachment onto the public right-of-way along the Olympic Drive frontage for use as a 26-seat, 191 square foot outdoor dining area. 5. The display area devoted to the retail sale of beer and wine for off-site consumption shall not exceed a maximum of 50 square feet. Administrative 6. The Planning Commission s approval, conditions of approval, or denial of this application may be appealed to the City Council if the appeal is filed with the Zoning Administrator within fourteen consecutive days following the date of the Planning Commission s determination in the manner provided in Part 9.04.20.24, Sections 9.04.20.24.010 through 9.04.20.24.040 of the SMMC. Any appeal must be made in the form required by the Zoning Administrator. The approval of this permit shall expire if the rights granted are not exercised within 18 months from the permit s effective date. Exercise of rights shall mean issuance of a building permit to commence construction, or actual commencement of the use granted by this Conditional Use Permit if a building permit is not required. 7. The rights associated with this approval shall expire if the establishment ceases alcohol service for more than one year. 8. Within ten days of City Planning Division transmittal of the Statement of Official Action, project applicant shall sign and return a copy of the Statement of Official Action prepared by the City Planning Division, agreeing to the conditions of 18 Attachment B

approval and acknowledging that failure to comply with such conditions shall constitute grounds for potential revocation of the permit approval. By signing same, applicant shall not thereby waive any legal rights applicant may possess regarding said conditions. The signed Statement shall be returned to the City Planning Division. Failure to comply with this condition shall constitute grounds for potential permit revocation. 9. Prior to commencement of alcohol service, the applicant shall post a notice at the building entry stating that the site is regulated by a Conditional Use Permit and the Statement of Official Action, which includes the establishment s conditions of approval, is available upon request. This notice shall remain posted at all times the establishment is in operation. 10. Within thirty (30) days from date of the approval of the Statement of Official Action, the applicant shall provide a copy of the approved Statement of Official Action for this project to the local office of the State Alcoholic Beverage Control department. 11. Prior to commencement of alcohol service, the operator shall submit a plan for approval by the Director of Planning regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol awareness training program for all employees having contact with the public and shall state management's policies addressing alcohol consumption and inebriation. The program shall require all employees having contact with the public to complete a California Department of Alcoholic Beverage Control (ABC) sponsored alcohol awareness training program within 90 days of the effective date of this approval. In the case of new employees, the employee shall attend the alcohol awareness training within 90 days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved by the Director of Planning and Community Development. The operator shall provide the City with an annual report regarding compliance with this condition. This project shall be subject to any future City-wide alcohol awareness training program condition affecting similar establishments. 12. Prior to commencement of alcohol service, the operator shall also submit a plan describing the establishment's designated driver program, which shall be offered by the operator to the establishment's patrons. The plan shall specify how the operator will inform patrons of the program, such as offering a free non-alcoholic drink for every party of two or more ordering alcoholic beverages. 13. In the event permittee violates or fails to comply with any conditions of approval of this permit, no further permits, licenses, approvals or certificates of occupancy shall be issued until such violation has been fully remedied. 19 Attachment B

Conformance with Approved Plans 14. This approval is for those plans dated April 21, 2014, a copy of which shall be maintained in the files of the City Planning Division. Project development shall be consistent with such plans, except as otherwise specified in these conditions of approval. 15. Minor amendments to the plans shall be subject to approval by the Director of Planning. An increase of more than 10% of the square footage, an increase of seating, or a significant change in the approved concept shall be subject to Planning Commission review. Construction shall be in substantial conformance with the plans submitted or as modified by the Planning Commission, Architectural Review Board, or Director of Planning. No expansion in number of seats, intensity of operation, or outdoor areas shall occur without prior approval from the City of Santa Monica and State ABC. Fees 16. As required by California Government Code Section 66020, the project applicant is hereby notified that the 90-day period has begun as of the date of the approval of this application, in which the applicant may protest any fees, dedications, reservations, or other exactions imposed by the City as part of the approval or as a condition of approval of this development. The fees, dedications, reservations, or other exactions are described in the approved plans, conditions of approval, and/or adopted city fee schedule. Project Operations 17. The operation shall at all times be conducted in a manner not detrimental to surrounding properties or residents by reason of lights, noise, activities, parking or other actions. 18. No exterior activity such as trash disposal, disposal of bottles or noise generating trash, deliveries, or other maintenance activity generating noise audible from the exterior of the building shall occur during the hours of 11:00pm to 7:00am daily. In addition, there shall be no outdoor cleaning of the property with pressurized or mechanical equipment during the hours of 9:00pm to 7:00am, daily. Trash containers shall be secured with locks. 19. Except for special events, alcohol shall not be served in any disposable container such as disposable plastic or paper cups. 20. No more than 35% of total gross revenues per year shall be from alcohol sales. The operator shall maintain records of gross revenue sources which shall be submitted annually to the City of Santa Monica City Planning Division at the 20 Attachment B

beginning of the calendar year and also available to the City of Santa Monica and the State ABC upon request. 21. The primary use of the premises shall be for sit-down meal service to patrons. 22. Liquor bottle service shall be prohibited. Wine and beer bottle service shall not be available to patrons unless full meal service is provided concurrent with the bottle service. All food items shall be available from the full service menu. Bottle service shall mean the service of any full bottle of liquor, wine, or beer, of more than 375 ml, along with glassware, mixers, garnishes, etc., in which patrons are able to then make their own drinks or pour their own wine or beer. 23. The establishment shall maintain a kitchen or food-serving area in which a variety of food is prepared or cooked on the premises. 24. The establishment shall serve food to patrons during all hours the establishment is open for customers. 25. There shall be no cover charge or minimum drink purchase requirement. 26. Any minimum purchase requirement may be satisfied by the purchase of beverages or food. 27. The primary use of the outdoor dining area shall be for customer seating. Patrons who are standing in the outdoor seating area shall not be served. 28. No dancing or live entertainment beyond that allowed in the restaurant definition contained in the Zoning Ordinance shall be permitted on the premises. 29. No organized queuing of patrons at the entry or checking of identification to control entry into and within the establishment shall be permitted. There shall not be any age limitation imposed restricting access to any portion of the restaurant. 30. The restaurant shall not organize or participate in organized pub-crawl events where participants or customers pre-purchase tickets or tokens to be exchanged for alcoholic beverages at the establishment. 31. No video or other amusement games shall be permitted on the premises. 32. No more than three television screens, including video projectors or similar audio/visual devices, shall be on the premises. None of these televisions or projections surfaces shall exceed 60 inches measured diagonally. 33. The owner shall prohibit loitering in the parking area and shall control noisy patrons leaving the establishment. 21 Attachment B