City of San Juan Capistrano Agenda Report. Honorable Mayor and Members of the City Council. Joel Rojas, Development Services Director ~ )P

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10/17/2017 F1b TO: FROM: SUBMITTED BY: City of San Juan Capistrano Agenda Report Honorable Mayor and Members of the City Council ~n Siegel, City Manager Joel Rojas, Development Services Director ~ )P PREPARED BY: DATE: SUBJECT: Paul M. Garcia, Associate Planner ~ M q October 17, 2017 Consideration of Initiation of the Discretionary Use Permit (DUP) Review Process for a Proposed Drive-through Facility Related to an Eating and Drinking Establishment Located at 32291 Camino Capistrano (DUP 17-001 )(S&D Enterprises, LP). RECOMMENDATION: Initiate a Discretionary Use Permit (DUP 17-001) review process for a proposed drivethrough facility involving an approximately 2,000 square foot eating and drinking establishment located at 32291 Camino Capistrano (S&D Enterprises, LP). EXECUTIVE SUMMARY: The City's Land Use Code requires the approval of a Discretionary Use Permit (DUP) for the establishment of a new drive-through facility in any of the City's Commercial Zoning Districts. The Code also requires that the City Council review a DUP application prior to formal review by the Design Review Committee and the Planning Commission. The property owner of an existing stand-alone vacant building located within the Plaza Del Rio Shopping Center is seeking to convert the building to a coffee shop with a drivethrough lane. As a result, the City Council is being asked to initiate the DUP review process for the proposed project. Initiation of the review process does not bind the City Council to future approval of the DUP. This item was originally heard by the City Council on October 3, 2017, and was continued to October 17, 2017. The item was continued to allow for courtesy notifications to be provided to property owners within 1,000 feet of the subject site, which was completed.

City Council Agenda Report October 17, 2017 Page 2 of 3 DISCUSSION/ANALYSIS: The subject site consists of a 4,280 sq. ft. stand-alone building, formerly utilized by several banking establishments with no drive-through service, located within the Plaza Del Rio Shopping Center on the west side of Camino Capistrano (Attachment 1). As described in the applicant's Letter of Intent (Attachment 2), the proposal calls for decreasing the size of the existing building down to ±2,000 sq. ft. to accommodate a coffee shop with a drive-through lane. This is an allowed use under the current zoning. At this time, the applicant is currently in negotiation with a potential tenant which is pending on the City Council's decision to allow a drive-through. The conceptual site plan (Enclosure 1) anticipates a U-shaped drive-through lane with the drive-through window on the west elevation of the building that faces inward toward the parking lot area. The site plan also details a new trash enclosure, new landscaping, and eighteen (18) parking stalls. The integrated shopping center has shared driveways, drive aisles, and general circulation pattern. The subject site has a General Plan Land Use Designation and a Zoning Designation of General Commercial. The review process for DUP applications is governed by Section 9-2.318 of the City's Land Use Code (Attachment 3), which states that "Prior to formal review, the City Council shall review the application pursuant to Section 9-2.301.c." Although a coffee shop is an allowed use, a DUP is required for a new drive-through use. For the preliminary review, the applicant submits a conceptual site plan and other pertinent materials showing proposed land uses, structures, and other site characteristics. The purpose of the preliminary review, in short, is to acquaint the applicant with zoning requirements, applicable policies and procedures, design guidelines, and to identify any significant development opportunities or constraints on the site. Staff believes that the information provided in the Applicant's Letter of Intent and conceptual site plan satisfies the requirement for preliminary review. From this information, staff can conclude that the proposed drive-through facility use would be consistent with the Land Use Element of the General Plan as a retail use serving a community-wide area and would comply with the General Commercial Zoning District as a conditionally permitted use. Furthermore, staff has not identified any significant development constraints that would preclude a drive-through facility on the site. As a result, staff is recommending that the City Council initiate the DUP review process. Initiation of the DUP review process would allow the applicant to submit the necessary entitlement applications to begin a comprehensive study of the applicant's proposal. The comprehensive study would address the project's compliance with any applicable development standards and architectural guidelines, and would include a detailed traffic impact analysis and compliance with the California Environmental Quality Act (CEQA). More specifically, the applicant would formally submit development plans for an Architectural Control (AC) application, a Conditional Use Permit (CUP) application, and a Discretionary Use Permit (DUP) for review by the Design Review Committee and

City Council Agenda Report October 17, 2017 Page 3 of 3 Planning Commission. The Planning Commission, at a duly noticed public hearing, would act on the AC and CUP applications, and make a recommendation on the DUP application to the City Council. The DUP would then return to the City Council for a public hearing to consider the Planning Commission's recommendation. FISCAL IMPACT: There is no fiscal impact associated with the recommended action. The cost for processing the proposed entitlement applications would be charged to the development deposit paid by the applicant. ENVIRONMENTAL IMPACT: The initiation of this Discretionary Use Permit has been determined to be exempt from the California Environmental Quality Act (CEQA). The activity of initiating the application is governed by the general rule that CEQA only applies to projects which have the potential for causing a significant effect on the environment. The proposed project will be reviewed under CEQA individually for any potential environmental impacts. PRIOR CITY COUNCIL REVIEW: The City Council considered the project on October 3, 2017, and continued the item to October 17, 2017, to allow for courtesy notices to be provided to property owners within 1,000 feet of the subject property. COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: Not applicable. NOTIFICATION: S&D Enterprises, LP (Applicant) Courtesy notices were provided to Property Owners within 1,000 feet of the subject property. ATTACHMENTS: 1. Aerial of Project Site 2. Applicant's Letter of Intent 3. SJCMC Section 9-2.318 ENCLOSURE: 1. Conceptual Site Plan

Site Map- ATTACHMENT 1

S & D Enterprises, LP rriie «.~ lt~ II~#[!~ It» AUG 1 7 2017 August 17th, 2017 To the Mayor and City Council: Re: Letter of Intent for 32291 Camino Capistrano The Applicant, S & D Enterprises, LP, is the owner of a stand-alone building located in the Plaza Del Rio Shopping Center at 32291 Camino Capistrano. The building is currently a 4,280 square foot vacant Bank building, previously occupied by Independence Bank and Pacific Premier Bank. We are proposing to replace the building with a smaller 2,000 square foot building which would be a coffee house with a drive through. This proposed drive-through coffee house is specifically allowed by the CC&Rs of the Shopping Center for our parcel. Additionally, this parcel has its own separate ingress and egress. We are currently in negotiations with a coffee house, pending approval from the City Council to move forward with the project. S & D Enterprises, LP is familiar the City of San Juan Capistrano, as the previous owner of Marbella Plaza Shopping Center, and had a successful relationship with the City. We are aware of the City's concerns regarding architecture, traffic and overall consistency with the City's planning goals. We are more than willing to work with the City in terms of location of the proposed building and queuing of customer cars. We have conducted a parking study which shows that there is a surplus of available parking in the Center. In addition, the building has dedicated parking of 13 parking spaces along with reciprocal parking rights with the Center. We have a preliminary plan for a drive-through coffee house that would allow for an ample number of cars in the queuing. We are open to input from the City Staff on the best location for the proposed building and queuing. We believe that the proposed coffee house would provide an uplift and add new synergy to the Shopping Center as well as providing a convenience for the residents and patrons of the City of San Juan Capistrano. We look forward to working with the City of San Juan Capistrano towards developing a successful project that will enhance the Plaza Del Rio Center and provide a benefit to the residents of San Juan Capistrano. Thank you for your consideration of this Project, sl::f.~~~f;c!- s & D Enterprises, LP 2415 Campus Dr., Suite 130, Irvine, CA 92612-8530 Ph: (949) 333-3887 Fax: (949) 296-2816 ATTACHMENT 2

9/22/2017 Sec. 9-2.318. Discretionary use permit. San Juan Capistrano Municipal Code Up Previous Next Main Search Print No Frames TITLE 9. LAND USE CHAPTER 2. ADMINISTRATION Article 3. Development Reylew Procedures Sec. 9-2.318. Discretlona (a) Purpose and intent. Chapter 3 (Zoning Districts and Standards) of this title contains listings ofland uses that are permitted within the various zoning districts upon approval of a discretionary use permit (DUP). Such uses require approval of a DUP for their establishment because, although such uses may be deemed consistent with the purpose and intent of the district, they typically have characteristics that require special regulation in order to avoid or minimize potential adverse impacts on surrounding properties. Therefore, each such proposed discretionary use shall be reviewed individually to determine whether the subject land use should be permitted at the particular location proposed and what special conditions should be placed on the establishment and operation of an approved discretionary use permit. The discretionary use permit process is intended to provide an opportunity for public review and evaluation of site-specific requirements and characteristics; to provide adequate mitigation of any potentially adverse impacts; and to ensure that all site development regulations and performance standards are provided in accordance with this Land Use Code. In addition, the discretionary use permit provides a means of monitoring compliance with conditions of operation that may be applied to the use in order to protect public health, safety, and welfare, and to ensure compliance with the General Plan. (b) Applicability. Only those uses listed in the District Regulations of Chapter 3 Zoning Districts and Standards of this title as permitted discretionary uses or those uses added to such listing by "determination of use" (ref. Article 2 District Regulations: General Provisions of Chapter 3 of this title) may be approved within a given district by means of a DUP. No person shall undertake, conduct or use, or cause to be undertaken, conducted or used, any development projects that require a discretionary use permit, without having first complied with the provisions of this section. (c) Discretionary use permit review process. (1) Applications for discretionary use permits may be filed with the Department of Planning Services by a record owner of the property in question or by the owner's authorized agent. The Planning Director shall prescribe the form of application and the supporting information required to initiate both environmental review (pursuant to Article 2 Environmental Review Procedures of Chapter 2 of this title) and the Discretionary Use Application review. A preliminary development review meeting between city staff and the applicant may be conducted prior to the ftling of the formal application, pursuant to Section 9-2.301(c). (2) Each applicant for a DUP shall submit information deemed necessary to complete environmental review and the consideration of the application itself, along with the required fee or deposit as established by City Council resolution. The application shall be accompanied by the required number of site plan maps, floor plans, elevations, and other documentation on site conditions as required by staff to review the proposal. (3) Once an application is received by the Department of Planning Services, the application will be reviewed for completeness and processed pursuant to the timelines established in Section 9-2.301 (4) Prior to formal review, the City Council shall review the application pursuant to Section 9-2.301(c). Thereafter, the Design Review Committee shall review and make recommendations to DUP applicants on the design of projects for compliance with the goals and policies ofthe City's General Plan Community Design Element and adopted architectural design guidelines and other policies regarding the design of projects that are processed in accordance with Title 9, Chapter 2, Article 2, Section 9-2.313 of this Code. The Transportation Commission shall study and make recommendations to the Planning Commission on matters related to the proposed DUP, including public transportation, traffic regulations and standards for parking, vehicular and public safety in accordance with Title 2, Chapter 2, Article 8, Section 2-2.803. The Planning Commission shall consider the proposed DUP noticed public hearing pursuant to Section 9-2.302(f). The Planning Commission shall adopt a resolution recommending final action on the DUP to the City Council, including findings supporting their recommendation. (5) The City Council shall consider the proposed DUP at a noticed public hearing pursuant to Section 9-2.302(f). The City Council may approve, deny, or modify the proposed DUP application. http://www.qcode.us/codes/sanjuancapistrano/ ATTACHMENT 3

912212017 Sec. 9-2.318. Discretionary use permit. (6) Following the denial of an application for a DUP, an application for the same or substantially same application shall not be accepted within one year of the date of denial, except as initiated by the City Council. (d) Findings. Prior to taking an action to approve or recommend approval of a DUP, the reviewing authority shall find that all of the following findings can be made: (1) The proposed use and design are consistent with the maps and policies of the General Plan; (2) The proposed use and design are consistent with the purpose, intent, and standards of the Land Use Code and any applicable specific plan or comprehensive development plan, except as otherwise approved; (3) The site for the proposed use is adequate in size and shape to accommodate all yards, open spaces, setbacks, walls and fences, parking and loading areas, fire and building code considerations, trash and recycling enclosures, and other features pertaining to the application; (4) The proposed use and ongoing operation of the use are compatible with abutting properties and the permitted uses thereof, and will not generate excessive light, noise, vibration, odors, visual blight, traffic, or other disturbances, nuisances, or hazards; and (5) The site for the proposed use has adequate access and parking to support the use. ( 6) The proposed use provides sufficient economic value and convenience to the community to justify approval of a discretionary use permit such as community investment, job creation, increase in sales taxes collected, or increase in customer convenience. (e) Conditions of approval. In granting any discretionary use permit, the reviewing authority shall affix those conditions that it deems necessary in order to safeguard the public health, safety and general welfare of the district and to ensure compliance with the General Plan. Where the proposed use, adjacent land uses, environmental effects or limitations, topography, or traffic circulation is found to so require, the reviewing authority may establish more stringent regulations than those otherwise specified for the zone district in which the project is located. The City may require dedication ofland or easements for public use, provided that there is a reasonable relationship between the required dedication and the impact of the proposed development, and that the required dedication is related both in nature and extent to the impact of the proposed development In order to mitigate the possible adverse impact of a discretionary-permitted use on surrounding properties and to ensure overall consistency of the use with the Land Use Code and the General Plan, conditions may include, but are not limited to, restrictions on hours of operation; types of activities; noise levels; lighting levels and hours; provision and maintenance of buffer areas, yards and spaces; provision and maintenance of landscaping; regulation of ingress and egress; regulation of signs; required site maintenance; parking management; waste management; or other operational considerations as deemed appropriate by the reviewing authority. 1 (f) Establishment ofuse. Use of property as authorized by an approved discretionary use permit shall adhere to the following requirements: (1) Time period for establishment. Discretionary use permits, when approved, authorize the establishment and operation of a particular land use at a particular location. As such, the establishment and development of an approved discretionary use permit must be diligently pursued. Therefore, the discretionary use must be established at the approved location within a time period specified in the DUP approval by the reviewing authority, which shall not exceed two (2) years. Establishment of the use shall be deemed to consist of the satisfaction of all relevant DUP conditions of approval and one of the following four ( 4) actions: (i) the issuance of a building permit for new construction (if said permit expires, approval of discretionary use permit shall become null and void); (ii) the issuance of a certificate of use and occupancy for the establishment of a discretionary use in an existing structure; (iii) the commencement of operation of the discretionary use permit in cases where no construction or existing structure is involved (e.g., resource extraction); or (iv) the issuance of a grading permit. If the preceding requirements are not met within the time period specified in the DUP approval, the discretionary use permit shall be rendered null and void. The Zoning Administrator may extend the time period for meeting the preceding requirements for establishment of the use up to one additional year, after holding a public hearing noticed pursuant to Section 9-2.302(f). Additional conditions may be imposed on a DUP in conjunction with a time extension, provided that such new conditions may only be imposed following a public hearing to receive testimony on the proposed additional conditions. (2) Change of ownership. Discretionary use permit approval shall apply only to the property for which the application was made, and shall apply to that property as long as the use for which approval was granted is in effect, regardless of changes in ownership. http://www.qcode.us/codes/sanjuancapistranol 214

9/22/2017 Sec. 9-2.318. Discretionary use permit. (3) Duration of a discretionary use. The reviewing authority may establish a reasonable time period for the duration of a discretionary use permit on a site, based on substantial evidence that establishing an expiration date is necessary to protect public health, safety, and welfare and comply with applicable provisions of the General Plan and Land Use Code. Where no expiration date is established by the reviewing authority, the discretionary use may continue to operate provided that it is in compliance with all conditions of approval and other applicable Code requirements, for a time period of no longer than thirty (30) years. (g) Discretionary uses existing on the effective date of this Code amendment. (1) Any use existing on the effective date of this Code or the Official Zoning Map or any amendment thereto that was permitted subject to an approved discretionary use permit, shall be deemed a pre-existing discretionary use. Such use may continue in accordance with this Code, provided that the use is operated and maintained in compliance with the conditions prescribed at the time of its establishment, if any. (2) Any expansion, substantial remodel or reconstruction of a use or building containing a previously approved drivethrough window which has become nonconforming due to adoption of this Code or any subsequent amendments thereto shall be allowed if it does not expand the aspect of nonconformity or creates a new impact. If a modification of an existing facility results in either an expansion of a nonconformity element or the creation of a new impact, the establishment shall comply with Section 9-3.533 regulating nonconforming uses, until such use is brought into conformance with the Land Use Code. A substantial remodel to pre-existing drive-through facilities consists of any onsite building or property alterations, improvements, and additions requiring a building, grading or demolition permit which have a construction value of fifty-one (51) percent, cumulative over a period of twelve (12) months, of the current year assessed improvement value. (3) Any use existing on the effective date of this Code or the Official Zoning Map or amendments thereto which would require approval of a discretionary use permit to be established in that zone, but for which such approval has not been obtained, shall be deemed a nonconforming use and regulated by Section 9-3.533, except that the owner may file an application for a discretionary use permit to legalize the use along with any proposed expansion, alternation, or reconstructions which comply with the requirements of this Code. Approval of any such DUP application would eliminate the classification of the property as "nonconforming." (h) Minor modifications. Revisions or modification of an approved discretionary use permit may be requested by the applicant in accordance with this section. Minor revisions to an approved DUP which will not increase or change the use or intensity of the use or impact fire and life safety, may be reviewed administratively pursuant to Section 9-2.303, Administrative Approvals. Major revisions or modifications to an approved DUP such as a change in conditions, expansion, intensification, location, hours of operation, or any change which may have the potential to imp~ct fire and life safety, shall be reviewed by the Planning Commission pursuant to the same procedure used for a new DUP. Modifications shall be consistent with the City's General Plan and surrounding community character. (i) Discontinuance of, discretionary use. if the use for which the discretionary use permit was issued has ceased or been suspended for a period of two (2) years or more, the discretionary use permit granted for said use shall expire, and any proposal to re-establish the same use on the same property will be subject to issuance of a new discretionary use permit pursuant to the standards and requirements in effect as of the date of such subsequent approval. (j) Appeals. Decisions on discretionary use permit applications may be appealed to the City Council in accordance with Section 9-2.311, Appeals. (k) Consistency with approved plans. A discretionary use permit approval shall pertain only to those plans reviewed and approved with the DUP. Further, all plans approved with a DUP shall be considered an integral part of the DUP approval. The Planning Director shall ensure that any final working drawings for grading or construction authorized by a DUP approval are consistent with said previously-reviewed plans prior to release of working drawings for plan check. (1) Periodic review. The Planning Commission may periodically review any discretionary use permit to ensure that it is being operated in a manner consistent with conditions of approval or in a manner that is not detrimental to the public health, safety, or welfare, or materially injurious to persons or properties in the vicinity. If, after review, the Planning Commission deems that there is sufficient evidence to warrant a full examination, then the Planning Commission shall recommend a public hearing to the reviewing authority, and a public hearing shall be set pursuant to Section 9-2.302(m). (m) City revocation or modification. (1) Any discretionary use permit granted pursuant to this section, or granted under any prior Land Use Code of the City, may be revoked upon a finding by the City Council that one or more of the following conditions exist: http://www.qcode.us/codes/sanjuancapistrano/ 3/4

9/22/2017 Sec. 9-2.318. Discretionary use permit. (A) That the use is detrimental to the public health or safety; (B) That the permit or approval was obtained through misrepresentation on submittal documents, plans and/or other information provided to the City; (C) That the applicant in interest has not complied with one or more of the approval requirements. (2) Any such finding by the City Council shall be made after a public hearing of which the initial applicant (or any successor of record whose address has been furnished) shall be given ten (10) days of advance written notice by first class mail directed to the applicant's address of record (or such successor's address so furnished). Said notice shall contain a notification of the reasons that the revocation is being considered. The finding of the City Council and the determination pursuant thereto, shall be subject to appeal pursuant to Section 9-2.311. Action ofthe City Council on appeal, shall be by resolution, and shall contain specific findings and actions relative to the revocation. (3) Notwithstanding the provisions set forth above, the City Council on appeal, may act to modify the conditions of approval, and/or may grant a period of time within which the use may be reactivated, or within which time period noncompliance with conditions may be remedied. (n) New application following denial or revocation. Following the denial or revocation of a discretionary use permit application, no application for a discretionary use permit for the same or substantially the same use and design, on the same or substantially the same site, shall be filed within one year from the date of denial or revocation. (Ord. No. 971, 1, 5-18-2010) View the mobile version. http://www.qcode.us/codes/sanjuancapistrano/ 414