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PLANNING COMMISSION AGENDA REPORT Planning and Building Department Agenda Item: Project Name: Request: Discretionary Actions: CEQA Recommendation: STAFF RECOMMENDATION: 6C Cardiff Seaside Market Beer and Wine License Change Request to upgrade an existing Alcohol Beverage Control (ABC) license for on-site wine and beer consumption associated with cooking classes, wine and beer tastings, community events, an ancillary café/seating area and private parties on the premises to allow employees of the market to serve alcohol. Minor Use Permit Modification (MINMOD) Coastal Development Permit (CDP) Exempt APPROVE Project Number: Location: Community: 16-268 MINMOD/CDP 2087 San Elijo Avenue Cardiff-by-the-Sea APN: 260-370-26 Applicant: Representative: Project Planner: Cardiff Seaside Market John Najjar Todd Mierau, Associate Planner tmierau@encinitasca.gov Commission Meeting Date: March 16, 2017 City Council Hearing Required? Report Approval: Recommended Actions: No Roy Sapa u, Senior Planner 1. Conduct the public hearing; and 2. Adopt the resolution and APPROVE the project, subject to conditions MARCH 16, 2017 ITEM 6C 1 of 54

PLANNING COMMISSION AGENDA ITEM 6C MARCH 16, 2017 SUMMARY AND KEY CONSIDERATIONS The project would upgrade an existing Type 42 Alcohol Beverage Control (ABC) license to a Type 41 ABC License for a bona fide public eating establishment to allow employees of the market to serve beer and wine on site during special events. The market, under Case No. 15-300 MIN/CDP, is authorized to serve wine and beer during cooking classes, wine and beer tastings, community events and private parties on the premises through a Type 42 ABC License. The Type 42 License does not allow Seaside Market employees to service alcohol to patrons on the premises. The Type 41 Beer and Wine license allows minors to be within the service areas and allows the employees of the Market to serve to their patrons within one of the Mezzanine areas only. The Type 42 Beer and Wine license will be replaced with a Type 41 ABC License. The proposed Type 41 ABC license will not change the operation characteristics of the existing use other than to allow service of beer and wine for these accessory uses to the principal market use. The Planning Commission is being asked to consider a Minor Use Permit Modification and Coastal Development Permit, modifying a previous license and service area previously approved by the Commission. PROJECT DESCRIPTION The applicant is requesting to change the current Type 42 ABC license to a Type 41 ABC license, which allows the Seaside Market employees to pour beer and wine for tastings and events and allows minors to be present (typical of a Grocery Store Market and public eating places) in one of the mezzanine areas only. An ancillary café (or seating area available to the public) will occupy the Mezzanine area as part of this modification, when the area is not being used for other related cooking classes, meetings, etc. The existing total market area is 19,644 square feet. There are two existing mezzanine areas located at the back of the market. One consists of 1,570 square feet and the other consists of 1,165 square feet. PROJECT ANALYSIS Background The City approved Case No. 14-054 DR/CDP to construct exterior improvements and an expansion of the existing Seaside Market within the Cardiff Town Center. Exterior improvements included modifications to the entrance of the market and existing courtyard including outdoor seating areas. As part of Case No. 14-054 DR/CDP approval, the market was authorized to use the 1,165-square foot mezzanine for cooking demonstrations, nutritional classes, wine and micro-brewery educational tasting sessions (which is consistent with their current alcohol beverage control license and is a permitted use), ancillary café/seating area and public meeting space for groups as ancillary uses to the market. The existing mezzanine consisting of 1,570 square feet will continue to be utilized as office space for the market. The Seaside Market currently possesses a Type 21 (Off-sale general) and a Type 86 (Educational Tasting License) ABC Licenses. The applicant had requested an ABC Type 42 license (Beer and Wine, Public Place), which was approved by the Planning Commission under MARCH 16, 2017 ITEM 6C 2 of 54

PLANNING COMMISSION AGENDA ITEM 6C MARCH 16, 2017 Case No. 15-300 MIN/CDP for the market expansion, including the mezzanine area. The applicant is requesting a Type 41 license to replace the Type 42 license. Project Site Characteristics: General Plan: General Commercial (GC) Specific Plan: Cardiff Specific Plan (CSP) Zoning District: C-GC1 (General Commercial 1) Zoning Overlay: Coastal Overlay Community Character Context: Village Center Other Key City Plan: None Notable State or Regional Plan and Law: None The project site is zoned General Commercial 1 (C-GC1) in the Cardiff-by-the-Sea Specific Plan area. The C-GC1 zone is intended to provide for a wide range of general commercial developments including restaurants, office and general retail uses. The project site is previously developed and is located within the Village Center Community Character Context. The Village Center Community Character Context consists of primarily retail land uses, mixed-use commercial/residential uses and stand-alone single-family and twinhome residential uses. The existing Seaside Market is located in an in-line shop within a commercial center on San Elijo Avenue. Adjacent Area: Direction General Plan & Community Character Land Use Zoning District Context North GC/C-GC1 Village Center Commercial retail South GC/C-GC1 Village Center Commercial retail East GC/C-GC2 Village Center Commercial retail West TC/TC Village Center Rail Corridor The existing land uses surrounding the project site include a mix of commercial development to the north, south and east. The rail corridor is to the west across San Elijo Avenue. General Plan Consistency The Cardiff-by-the-Sea Specific Plan applies to the project site. The General Plan and Local Coastal Plan Compliance is associated with Chapter 8.0 of the Cardiff-by-the-Sea Specific Plan. The existing market use is consistent with the General Commercial (GC) General Plan designation. Given that the market is existing and a Type 42 alcohol license is present on the premises, the proposed change of alcohol license, consisting of a Type 41 alcohol license to allow Seaside Market employees to serve alcohol for various cooking classes, wine and beer tastings, community events, ancillary café/seating area and private parties on the premises within the second story mezzanine area is consistent with the existing condition and the General Plan. MARCH 16, 2017 ITEM 6C 3 of 54

PLANNING COMMISSION AGENDA ITEM 6C MARCH 16, 2017 General Plan Goal or Policy of DESP LU Policy 1.14: The City will maintain and enhance the Hwy 101 commercial corridor by providing appropriate community-serving tourist-related and pedestrianoriented uses. LU Policy 6.5: The design of future development shall consider the constraints and opportunities that are provided by adjacent existing development. Explanation of Project Conformance The proposed use, as conditioned, will provide a diversified experience as it relates to various tastings and cooking classes for those living in the community. The use will complement the commercial activities that exist within the Cardiff area and specifically, those uses located on the street frontage of San Elijo Avenue. The proposed alcohol service is compatible with the existing surrounding commercial uses, and as conditioned, will not negatively affect the residential development that is located to the east of the project site. An alcohol license already exists on this property. Municipal Code Analysis The project proposes to modify the existing Minor Use Permit for the existing market to authorize a Type 41 ABC License allowing the market employees to serve wine and beer for on site consumption associated with cooking classes, wine and beer tastings, community events and private parties, and utilize it as a small cafe within the Seaside Market. Development Standard Project Proposed Complies? Land Use Pursuant to the Cardiff Specific Plan (Zoning Use Matrix) markets with ancillary sale of alcohol require approval of a Minor Use Permit in the C-GC1 zone. (See Minor Use Permit discussion below) Yes No Setbacks, Lot Coverage, FAR, The existing market conforms to the C- Yes No and Building Height GC1 requirements. Parking No additional parking required. Yes No Parking No new floor area proposed with this request. Therefore, no additional parking is required. The mezzanine areas, along with the expansion of the market, which occurred as part of Case No. 14-054 DR/CDP factored in and grandfathered parking for these areas. However, the existing parking spaces must remain and shall not be reduced without approval from the Planning and Building Department. Minor Use Permit Modification The project is requesting approval of a Minor Use Permit Modification and Coastal Development Permit to allow on site consumption of beer and wine associated with cooking classes, wine and beer tastings, community events and private parties within the Seaside Market. These ancillary uses with the onsite sale of beer and wine with Type 41 ABC license is requires a public restaurant component, which is being shown within the mezzanine area. This area was previously approved, however; the ABC license Type 42 ABC license was not the correct type associated for the use as it is currently proposed. MARCH 16, 2017 ITEM 6C 4 of 54

PLANNING COMMISSION AGENDA ITEM 6C MARCH 16, 2017 The project complies with all applicable policies of the General Plan, applicable provisions of the Municipal Code and the Cardiff Specific Plan. The project would be required to comply with all applicable Building and Fire codes through reliance on this Minor Use Permit Modification. The existing market with on-site service and consumption of beer and wine is currently operating without specific operational conditions. The original approval was under County jurisdiction and did not include these conditions since it was not required at the time of approval. The proposed request includes operational conditions that contain specific operation characteristics and alcohol service limitations for the market space. Specific operation characteristics include: The proposed hours of operation for the market Mezzanine area is: o Monday thru Sunday from 7 a.m. to 10 p.m. on the interior (existing hours/no change). No live entertainment is proposed. Only house music would be present within the market and mezzanine area. The Sheriff reviewed the project and had no comments. As a condition, the applicant is required to obtain a Type 41 license from the Department of Alcoholic Beverage Control (ABC) to authorize the site to allow employees to pour alcohol for tastings and events with the Seaside Market retail operation and allow minors to be present within the Market area. The Type 41 ABC license authorizes the sale of beer and wine for consumption and must be obtained prior to initiating any use in reliance on this minor use permit. A small café/seating area is proposed within the existing mezzanine space on the second floor which is considered ancillary to the existing market. The café will allow existing market customers to utilize a portion of seating inside the market area when it is not being used for cooking classes, meetings, etc. Coastal Development Permit The proposed project is located within the Coastal Zone of the City of Encinitas and requires approval of a regular Coastal Development Permit. Adherence to the development standards within the Encinitas Municipal Code, Cardiff Specific Plan and the goals and policies of the Encinitas General Plan the project will be consistent with the City s adopted Local Coastal Program. The project is not within the Coastal Commission s appeal jurisdiction. PUBLIC NOTICE AND PARTICIPATION Public Notice Notice of this public hearing was mailed on March 3, 2017, to all property owners and occupants within 500 feet of the project site and to anyone who requested such notice in writing, in compliance with Municipal Code Section 30.01.070 and Government Code Sections 65090, 65091 and 65092, as applicable. Additionally, as a courtesy, the notice was posted at City Hall and on the Planning and Building Department s Internet site under Public Notices and via e- Project Source. MARCH 16, 2017 ITEM 6C 5 of 54

PLANNING COMMISSION AGENDA ITEM 6C MARCH 16, 2017 Citizen Participation Program The applicant submitted a Citizen s Participation Program (CPP) in accordance with Section 23.06 of the Municipal Code. All owners and tenants were notified of the CPP meeting and proposed project. The neighborhood meeting was held on Saturday, December 16, 2016, at 6:00 p.m. According to the CPP Final Report (Attachment PC-5), no members of the public attended the meeting. ENVIRONMENTAL CONSIDERATIONS It has been determined that the proposed project is exempt from environmental review pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15301(a). Section 15301(a) exempts projects involving negligible or interior alterations to an existing space. The proposed project is a change of alcohol service within an existing market and mezzanine area and the proposed project allows the additional use of an ancillary cafe, as it is merely modifying an existing service, which is accessory to the principal use. None of the exceptions listed in Section 15300.2 exist for the proposed project. DISCUSSION The proposed Minor Use Permit Modification and Coastal Development Permit will authorize the sale of beer and wine for on-site consumption within an existing market mezzanine area. The project site is zoned C-GC1. According to the zoning standards of the Cardiff Specific Plan, the C-GC1 zone is intended to provide a wide range of mixed-use activities, including retailing, and service uses, to accommodate Citywide or regional needs. The existing market is located on San Elijo Avenue, which contributes to the day-to-day commercial needs of the community. Land Use Compatibility The purpose of this Minor Use Permit Modification is to review the proposed project, which may involve special site or design requirements, operating characteristics, or may have potential adverse effects on the surrounding area, and impose special conditions of approval as necessary. The operational characteristics of the use have been reviewed and analyzed and it has been determined that the proposed use (ancillary alcohol service within an existing market) will not adversely affect adjacent uses, residences, buildings, structures, or natural resources. The existing market with mezzanine structures located on the second floor area is compatible with the surrounding uses. Several other general retail establishments, commercial services, and restaurant uses are located along San Elijo Avenue. The closest residential uses are located to the east behind existing commercial uses. No adverse impacts to the adjacent residential uses are anticipated. The San Diego Sheriff s Department reviewed the proposed project and had no comments. Additionally, there are no code enforcement complaints on file for this establishment. MARCH 16, 2017 ITEM 6C 6 of 54

PLANNING COMMISSION AGENDA ITEM 6C MARCH 16, 2017 FINDINGS Based on the findings for a Use Permit as per Encinitas Municipal Code Section 30.74.070 and the aforementioned analysis, staff has made the following findings to support the recommendation of approval, with conditions: Finding for Use Permit 1. The location, size, design or operating characteristics of the proposed project will be incompatible with or will adversely affect or will be materially detrimental to adjacent uses, residences, buildings, structures or natural resources, with consideration given to, but not limited to: a. The inadequacy of public facilities, services and utilities to serve the proposed project, b. The unsuitability of the site for the type and intensity of use or development which is proposed, and Explanation of Finding The site is an existing market and all public utilities are in place to serve the project. The operational characteristics of the use have been reviewed and analyzed in consideration of the suitability of the site, and it has been determined that the proposed allowance of onsite wine and beer consumption associated with cooking classes, wine and beer tastings, community events, private parties and ancillary café within the mezzanine space on the premises within an existing market will not adversely affect adjacent uses, residences, buildings, structures, or natural resources. Due to the physical separation of the proposed project site to the nearest residential use to the east, no adverse impacts to the adjacent residential uses are anticipated. The operating characteristics and hours of operation of the use present no evidence of incompatibility with the site or surrounding development. No live entertainment is proposed and the project is conditioned to limit the use from 7 a.m. to 10 p.m., minimizing any potential impacts to the surrounding businesses and residential uses. c. The harmful effect, if any, upon environmental quality and natural resources of the City; The project will not have a harmful effect on environmental quality or natural resources. The site is surrounded by previously developed properties. There are no environmental issues associated with the project. It has been determined that the project is exempt from environmental review. MARCH 16, 2017 ITEM 6C 7 of 54

PLANNING COMMISSION AGENDA ITEM 6C MARCH 16, 2017 Finding for Use Permit 2. The impacts of the proposed project will adversely affect the policies of the Encinitas General Plan or the provisions of this Code; or 3. The project fails to comply with any other regulations, conditions or policies imposed by this Code. Explanation of Finding The proposed use, as conditioned, is consistent with the policies of the General Plan, Cardiff-by-the-Sea Specific Plan and applicable provisions of the Encinitas Municipal Code. The operational characteristics of the use have been reviewed and analyzed and it has been determined that the proposed use, as conditioned, will not adversely affect adjacent uses, residences, buildings, structures, or natural resources. The project is subject to conditions, which include limitations and requirements for the use. The proposed project will be required to comply with the City s noise regulations outlined in EMC Chapter 9.32 and Section 8.7 of the Cardiff Specific Plan. Based on the findings for a Coastal Development Permit as per Encinitas Municipal Code Section 30.80.090 (Coastal Development Permit) and the aforementioned analysis, staff has made the following findings to support the recommendation of approval, with conditions: Finding for Coastal Development Permit 1. The proposed project is consistent with the certified Local Coastal Program of the City of Encinitas. 2. The proposed development conforms with Public Resources Code Section 21000 and following (CEQA) and that there are no feasible mitigation measures or feasible alternatives available which would substantially lessen any significant adverse impact that the activity may have on the environment. 3. For projects involving development between the sea or other body of water and the nearest public road, approval shall include a specific finding that such development is in conformity with the public access and public recreation policies of Section 30200 et seq. of the Coastal Act. Explanation of Finding With approval of the Minor Use Permit Modification and Coastal Development Permit, the project conforms to the Cardiff-by-the-Sea Specific Plan and the Local Coastal program of the City of Encinitas. The project as proposed complies with applicable development standards for the subject C-GC1 zone. The project will not have a harmful effect on environmental quality or natural resources. It has been determined that the project is exempt from environmental review. The project site is located on the east side of San Elijo Avenue, which is not between the first public road and the sea. MARCH 16, 2017 ITEM 6C 8 of 54

PLANNING COMMISSION AGENDA ITEM 6C MARCH 16, 2017 CONCLUSION The proposed project will not adversely affect the policies of the Encinitas General Plan or the provisions of the Municipal Code and Cardiff-by-the-Sea Specific Plan. With approval of the Minor Use Permit Modification and Coastal Development Permit application, as conditioned, the project as proposed will comply with all regulations, conditions, and policies of the Cardiff-bythe-Sea Specific Plan and the Municipal Code. Staff recommends that the Planning Commission approve Case No. 16-268 MINMOD/CDP based upon the findings and conditions contained in the attached draft Resolution of Approval (Attachment PC-1). ATTACHMENTS PC-1 Proposed Resolution PC-2 Vicinity Map with Aerial Image PC-3 Application and Disclosure Statement PC-4 Public Notice and 500-foot radius map PC-5 Citizen Participation Program PC-6 On-Sale ABC Licenses Map PC-7 Project Drawings PC-8 Correspondence MARCH 16, 2017 ITEM 6C 9 of 54

PLANNING COMMISSION AGENDA ITEM 6C MARCH 16, 2017 ATTACHMENT PC-1 Proposed Planning Commission Resolution MARCH 16, 2017 ITEM 6C 10 of 54

RESOLUTION NO. PC 2017- A RESOLUTION OF THE CITY OF ENCINITAS PLANNING COMMISSION APPROVING A MINOR USE PERMIT MODIFICATION AND COASTAL DEVELOPMENT PERMIT TO AUTHORIZE A TYPE 41 ABC LICENSE FOR ON-SITE WINE AND BEER CONSUMPTION ASSOCIATED WITH COOKING CLASSES, WINE AND BEER TASTINGS, COMMUNITY EVENTS, PRIVATE PARTIES AND ANCILLARY CAFE ON THE PREMISES AT AN EXISTING MARKET LOCATED AT 2087 SAN ELIJO AVENUE (CASE NO. 16-268 MINMOD/CDP; APN: 260-370-26) WHEREAS, Cardiff Seaside Market submitted an application for a Minor Use Permit Modification and Coastal Development Permit to authorize on-site wine and beer consumption associated with a Type 41 ABC license within an existing mezzanine space for cooking classes, wine and beer tastings, community events, private parties and ancillary cafe on the premises at an existing market located at 2087 San Elijo Avenue, legally described as: THE LEGAL DESCRIPTION OF THE LOT IS AS DESCRIBED IN THE SEPTEMBER 19, 2002 INSTRUMENT NO. 2002-0803438 OF OFFICIAL RECORDS IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA. WHEREAS, the Planning Commission conducted a duly noticed public hearing on March 16, 2017; NOW, THEREFORE, BE IT RESOLVED that the Encinitas Planning Commission hereby APPROVES Case No. 16-268 MINMOD/CDP based on the following Environmental Determination and Findings: Section 1. California Environmental Quality Act Determination It has been determined that the proposed project is exempt from environmental review pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15301(a). Section 15301(a) exempts projects involving negligible or interior alterations to an existing space. The proposed project is a change of alcohol service within an existing market and mezzanine area and the proposed project allows the additional use of an ancillary cafe, as it is merely modifying an existing service, which is accessory to the principal use. None of the exceptions listed in Section 15300.2 exist for the proposed project. Section 2. Discretionary Action(s) Findings MARCH 16, 2017 ITEM 6C 11 of 54

FINDINGS Based on the findings for a Use Permit as per Encinitas Municipal Code Section 30.74.070 and the aforementioned analysis, the Planning Commission has made the following findings to support the approval, with conditions: Finding for Use Permit 1. The location, size, design or operating characteristics of the proposed project will be incompatible with or will adversely affect or will be materially detrimental to adjacent uses, residences, buildings, structures or natural resources, with consideration given to, but not limited to: a. The inadequacy of public facilities, services and utilities to serve the proposed project, b. The unsuitability of the site for the type and intensity of use or development which is proposed, and Explanation of Finding The site is an existing market and all public utilities are in place to serve the project. The operational characteristics of the use have been reviewed and analyzed in consideration of the suitability of the site, and it has been determined that the proposed allowance of onsite wine and beer consumption associated with cooking classes, wine and beer tastings, community events, private parties and ancillary café within the mezzanine space on the premises within an existing market will not adversely affect adjacent uses, residences, buildings, structures, or natural resources. Due to the physical separation of the proposed project site to the nearest residential use to the east, no adverse impacts to the adjacent residential uses are anticipated. The operating characteristics and hours of operation of the use present no evidence of incompatibility with the site or surrounding development. No live entertainment is proposed and the project is conditioned to limit the use from 7 a.m. to 10 p.m., minimizing any potential impacts to the surrounding businesses and residential uses. c. The harmful effect, if any, upon environmental quality and natural resources of the City; 2. The impacts of the proposed project will adversely affect the policies of the The project will not have a harmful effect on environmental quality or natural resources. The site is surrounded by previously developed properties. There are no environmental issues associated with the project. It has been determined that the project is exempt from environmental review. The proposed use, as conditioned, is consistent with the policies of the General MARCH 16, 2017 ITEM 6C 12 of 54

Finding for Use Permit Encinitas General Plan or the provisions of this Code; or 3. The project fails to comply with any other regulations, conditions or policies imposed by this Code. Explanation of Finding Plan, Cardiff-by-the-Sea Specific Plan and applicable provisions of the Encinitas Municipal Code. The operational characteristics of the use have been reviewed and analyzed and it has been determined that the proposed use, as conditioned, will not adversely affect adjacent uses, residences, buildings, structures, or natural resources. The project is subject to conditions, which include limitations and requirements for the use. The proposed project will be required to comply with the City s noise regulations outlined in EMC Chapter 9.32 and Section 8.7 of the Cardiff Specific Plan. Based on the findings for a Coastal Development Permit as per Encinitas Municipal Code Section 30.80.090 (Coastal Development Permit) and the aforementioned analysis, the Planning Commission has made the following findings to support the approval, with conditions: Finding for Coastal Development Permit 1. The proposed project is consistent with the certified Local Coastal Program of the City of Encinitas. 2. The proposed development conforms with Public Resources Code Section 21000 and following (CEQA) and that there are no feasible mitigation measures or feasible alternatives available which would substantially lessen any significant adverse impact that the activity may have on the environment. 3. For projects involving development between the sea or other body of water and the nearest public road, approval shall include a specific finding that such development is in conformity with the public access and public recreation policies of Section 30200 et seq. of the Coastal Act. Explanation of Finding With approval of the Minor Use Permit Modification and Coastal Development Permit, the project conforms to the Cardiff-by-the-Sea Specific Plan and the Local Coastal program of the City of Encinitas. The project as proposed complies with applicable development standards for the subject C-GC1 zone. The project will not have a harmful effect on environmental quality or natural resources. It has been determined that the project is exempt from environmental review. The project site is located on the east side of San Elijo Avenue, which is not between the first public road and the sea. MARCH 16, 2017 ITEM 6C 13 of 54

BE IT FURTHER RESOLVED that based on the Environmental Determination and Findings hereinbefore adopted by the Planning Commission, Case No. 16-268 MINMOD/CDP is hereby approved subject to the conditions in Exhibit A. PASSED AND ADOPTED this 16 th day of March, 2017, by the following vote, to wit: AYES: NOES: ABSTAIN: ABSENT: Michael Glenn O Grady, Chair ATTEST: Roy Sapa u Secretary NOTE: This action is subject to Chapter 1.04 of the Municipal Code, which specifies time limits for legal challenges. MARCH 16, 2017 ITEM 6C 14 of 54

EXHIBIT "A" Resolution No. PC 2017- Case No. 16-268 MINMOD/CDP Applicant: Cardiff Seaside Market Location: 2087 San Elijo Avenue (APN: 258-370-26) SC1 SPECIFIC CONDITIONS: SC2 SC5 SCA At any time after two years from the date of this approval, on March 16, 2019, at 5 p.m., or the expiration date of any extension granted in accordance with the Municipal Code, the City may require a noticed public hearing to be scheduled before the authorized agency to determine if there has been demonstrated a good faith intent to proceed in reliance on this approval. If the authorized agency finds that a good faith intent to proceed has not been demonstrated, the application shall be deemed expired as of the above date (or the expiration date of any extension). The determination of the authorized agency may be appealed to the City Council within 15 days of the date of the determination. This project is conditionally approved as set forth on the application and project drawings stamped received by the City on October 25, 2016, consisting of three sheets including a Cover Sheet (Sheet TS), Floor Plan (Sheet A1.0) and Site Plan all designated as approved by the Planning Commission on March 16, 2017, and shall not be altered without express authorization by the Planning and Building Department. The following conditions shall be completed and/or fulfilled to the satisfaction of the Planning and Building Department: 1. This use permit authorizes the on-site sales and consumption of beer and wine as an accessory use to the existing market use. This use permit approval shall be null and void when/if the existing market use ceases. 2. The serving and consumption of alcohol shall be limited to the interior upstairs mezzanine consisting of a 1,165-square foot area in accordance with the floor plan dated October 25, 2016. No service of alcohol for on-site consumption shall take place in any other areas in the market and any outdoor areas not specifically authorized herein. 3. The hours of operation with on-site service and consumption of beer and wine within the mezzanine shall be limited to 7 a.m. to 10 p.m., seven days a week. 4. The market shall comply with Chapter 9.32 (Noise Abatement and Control) of the Municipal Code at all times, as it relates to noise thresholds as measured at the property line. 5. The requirements and restrictions of an ABC license shall be in addition to this approval. 6. All requirements of the Alcohol Beverage Control (ABC) shall be complied with, including that all areas licensed for the sale of alcohol shall meet the criteria of the ABC. MARCH 16, 2017 ITEM 6C 15 of 54

7. Any modifications to the alcohol service areas, licensing, operations and hours of operations as approved herein and depicted on the project plans dated received by the City on October 25, 2016, shall be reviewed by the Planning and Building Department for compliance with conditions of approval of this use permit, and determine whether a modification to the use permit is necessary. 8. No live music shall be allowed and no other music shall be audible outside of the market. Incidental music shall be allowed within the market and the mezzanine during the hours of operation. 9. No dancing shall be permitted on the premises at any time. 10. The operation as approved herein shall not be converted to any other use including but not limited to a bar, dance floor, band stage/station, Disc Jockey station, etc., unless a modification to the use permit is approved to the satisfaction of the Planning and Building Department. 11. All conditions of Planning Commission Resolution No. 2014-29 associated with Case No. 14-054 DR/CDP shall remain in full force and effect unless specifically modified herein by this resolution. 12. All conditions of Planning Commission Resolution No. PC 2016-19 associated with Case No. 15-300 MIN/CDP shall be null and void with this modified resolution herein. SCB The Fire Department shall inspect service area prior to final of occupancy. G1 STANDARD CONDITIONS: CONTACT THE PLANNING AND BUILDING DEPARTMENT REGARDING COMPLIANCE WITH THE FOLLOWING CONDITION(S): G2 G4 G5 G6 This approval may be appealed to the City Council within 15 calendar days from the date of this approval in accordance with Chapter 1.12 of the Municipal Code. Prior to initiating use in reliance on this permit, the owner shall cause a covenant regarding real property to be recorded. Said covenant shall set forth the terms and conditions of this grant of approval and shall be of a form and content satisfactory to the Planning and Building Director. The Owner(s) agree, in acceptance of the conditions of this approval, to waive any claims of liability against the City and agrees to indemnify, hold harmless and defend the City and City's employees relative to the action to approve the project. Approval of this request shall not waive compliance with any sections of the Municipal Code and all other applicable City regulations in effect at the time of Building Permit issuance unless specifically waived herein. Permits from other agencies will be required as follows: State Alcoholic Beverage Control MARCH 16, 2017 ITEM 6C 16 of 54

G12 Prior to any use of the project site pursuant to this permit, all conditions of approval contained herein shall be completed or secured to the satisfaction of the Planning and Building Department. SIGNS S1 Any signs proposed for this development shall be designed and approved in conformance with Encinitas Municipal Code Chapter 30.60. USE PERMITS U1 U3 U4 U5 U7 At all times during the effective period of this permit, the responsible party shall obtain and maintain in valid force and effect, each and every license and permit required by a governmental agency for the operation of the authorized activity. Upon a showing of compelling public necessity demonstrated at a noticed hearing, the City of Encinitas, acting through the authorized agency, may add, amend, or delete conditions and regulations contained in this permit. Nothing in this permit shall relieve the applicant from complying with conditions and regulations generally imposed upon activities similar in nature to the activity authorized by this permit. Nothing in this permit shall authorize the applicant to intensify the authorized activity beyond that which is specifically described in this permit. Any future modifications to the approved project will be reviewed relative to the findings for substantial conformance with a use permit contained in Section 30.74.105 of the Municipal Code. Modifications beyond the scope described therein will require submittal of an amendment to the use permit and approval by the authorized agency. USE PERMITS FOR ON-SALE ALCOHOL UA1 UA2 UA5 UA6 The use shall operate within the scale, scope and limitations as described in the approved project plans and associated documentation. Upon receipt of any substantial complaint(s) regarding the operation of the business which is the subject of this permit, the City may, upon proper notification of the owner and/or applicant and acting through the authorized agency, conduct a hearing to determine if the conditions of approval need to be modified or whether the permit should be revoked. The quarterly gross sales of alcoholic beverages shall not exceed 50% of the quarterly gross sales of all food products during the same period. Business shall be conducted in a manner that will not violate any provisions of the California Alcoholic Beverage Control Act, providing against the sale of alcohol to minors; maintaining the public health, morals, convenience, and safety; and taking reasonable steps to correct any objectionable conditions on the premises and immediately adjacent to the premises. MARCH 16, 2017 ITEM 6C 17 of 54

UA7 UA8 UA9 This permit is strictly limited to allow only the occupant load for the premises as approved by the City of Encinitas Fire Department. Any improvements that will result in an increase in current occupancy load shall require a modification to the use permit. Occupant loads approved by the City of Encinitas Fire Department shall be posted at all times. Upon a change to the business model as represented in the project description, the use permit shall be reviewed by the Planning and Building Director for compliance with conditions of approval or to determine whether a modification to the use permit is necessary. The applicant is responsible at all times for verifying the legal age of patrons, monitoring the behavior of patrons, and taking appropriate actions to deter conduct that may threaten the health, safety or welfare of patrons or property. UA10 The applicant shall ensure that no patron exhibiting observable signs or behaviors consistent with intoxication is furnished with alcohol and that bar policies shall reserve the right of the establishment to deny alcohol service to any patron. UA11 No individual under 21 years of age, or without proper identification, shall be served or sold alcohol. UA12 The site shall be maintained in a neat and orderly manner at all times. MARCH 16, 2017 ITEM 6C 18 of 54

PLANNING COMMISSION AGENDA ITEM 6C MARCH 16, 2017 ATTACHMENT PC-2 Vicinity Map and Aerial Image MARCH 16, 2017 ITEM 6C 19 of 54

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PLANNING COMMISSION AGENDA ITEM 6C MARCH 16, 2017 ATTACHMENT PC-3 Application and Disclosure Statement MARCH 16, 2017 ITEM 6C 21 of 54

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PLANNING COMMISSION AGENDA ITEM 6C MARCH 16, 2017 ATTACHMENT PC-4 Public Notice and 500-foot Radius Map MARCH 16, 2017 ITEM 6C 38 of 54

CITY OF ENCINITAS PLANNING AND BUILDING DEPARTMENT LEGAL NOTICE OF PUBLIC HEARING By The Planning Commission PLACE OF MEETING: Council Chambers, Civic Center 505 South Vulcan Avenue Encinitas, CA 92024 THE ABOVE MENTIONED AGENCY IS AN EQUAL OPPORTUNITY PUBLIC ENTITY AND DOES NOT DISCRIMINATE ON THE BASIS OF RACE, COLOR, ETHNIC ORIGIN, NATIONAL ORIGIN, SEX, RELIGION, VETERANS STATUS OR PHYSICAL OR MENTAL DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICE. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT/SECTION 504 REHABILITATION ACT OF 1973, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEETING, PLEASE CONTACT THE PLANNING AND BUILDING DEPARTMENT AT (760) 633-2710. It is hereby given that a Public Hearing will be held on Thursday, the 16 st day of March, 2016, at 6:00 p.m., or as soon as possible thereafter, by the Encinitas Planning Commission to discuss the following hearing item of the City of Encinitas: PROJECT NAME: Cardiff Seaside Market Beer and Wine CASE NUMBER: 16-268 MINMOD/CDP FILING DATE: October 17, 2016 APPLICANT: John Najjar (Cardiff Seaside Market) LOCATION: 2087 San Elijo Avenue (APN: 260-370-26) PROJECT DESCRIPTION: Public hearing to consider a Minor Use Permit Modification and Coastal Development Permit to upgrade an existing Alcohol Beverage Control (ABC) license to allow on site wine and beer consumption associated with cooking classes, wine and beer tastings, community events, cafe and private parties on the premises. ZONING/OVERLAY: The project site is located in the Cardiff-by-the-Sea Specific Plan General Commercial-1 (C-GC-1) zone and within the Coastal Zone. ENVIRONMENTAL STATUS: The project is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines. An appeal of the Planning Commission determination, accompanied by the appropriate filing fee, may be filed by 5:00 p.m. on the 15 th calendar day following the date of the Commission s determination. Appeals will be considered by the City Council pursuant to Chapter 1.12 of the Municipal Code. Any filing of an appeal will suspend this action as well as any processing of permits in reliance thereon in accordance with Encinitas Municipal Code Section 1.12.020(D)(1) until such time as an action is taken on the appeal. The above item is located within the Coastal Zone and requires issuance of a regular Coastal Development Permit. The action of the Planning Commission or City Council may not be appealed to the California Coastal Commission. Under California Government Code Section 65009, if you challenge the nature of the proposed action in court, you may be limited to raising only the issues you or someone else raised regarding the matter described in this notice or written correspondence delivered to the City at or before the time and date of the determination. For further information, or to review the application prior to the hearing, please contact Todd Mierau, Associate Planner, at (760) 633-2693 or by email at tmierau@encinitasca.gov; or contact the Planning and Building Department, 505 South Vulcan Avenue, Encinitas, CA 92024 at (760) 633-2710 or by email at planning@encinitasca.gov. PBD/TGM/T:LEGALS/Attachment 4 MARCH 16, 2017 ITEM 6C 39 of 54

VICINITY MAP 2087 San Elijo Avenue Encinitas, CA 92024 PROJECT SITE PBD/TGM/T:LEGALS/Attachment 4 MARCH 16, 2017 ITEM 6C 40 of 54

PLANNING COMMISSION AGENDA ITEM 6C MARCH 16, 2017 ATTACHMENT PC-5 Citizen Participation Program MARCH 16, 2017 ITEM 6C 41 of 54

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PLANNING COMMISSION AGENDA ITEM 6C MARCH 16, 2017 ATTACHMENT PC-6 On-Sale ABC Licenses Map MARCH 16, 2017 ITEM 6C 47 of 54

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PLANNING COMMISSION AGENDA ITEM 6C MARCH 16, 2017 ATTACHMENT PC-7 Project Drawings MARCH 16, 2017 ITEM 6C 49 of 54

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PLANNING COMMISSION AGENDA ITEM 6C MARCH 16, 2017 ATTACHMENT PC-8 Correspondence MARCH 16, 2017 ITEM 6C 53 of 54

Deana Gay From: Sent: To: Subject: Deana Gay Wednesday, March 08, 2017 9:36 AM Deana Gay Case #16-268 MINMOD/CDP From: Elena Thompson [~~ ~~~] Sent: Wednesday, March 08, 2017 6:46 AM To: Planning; Todd Mierau Subject: Case #16-268 MINMOD/CDP Hello, In response to the notice regarding minor use modification for new activities at the market, our only comments would be: -Seaside Market has been a very good neighbor -We have concerns about activities going on at the market past 10 PM-think there should be a curfew to protect and preserve quality of life in the immediate neighborhood -All, most parking, for these additional activities should be on site, to every extent possible Thank you, Elena and John Thompson 2024 Manchester Avenue Cardiff 1 MARCH 16, 2017 ITEM 6C 54 of 54