Planning Commission Report

Planning Commission Report To: From: Subject: Planning Commission Planning Commission Meeting: September 6, 2017 Jing Yeo, AICP, City Planning Division Manager Agenda Item: 8-C Conditional Use Permit (17ENT-0066) to allow the operation of a brewpub/tasting room (The Dudes Taproom Brewing Company) with onsite and off-site sale and consumption of beer (Type 23 alcohol license - Brewpub) in conjunction with an eating establishment within an existing restaurant tenant space with an outdoor seating area within the Santa Monica Place Mall. Address: 395 Santa Monica Place #304 Applicant: The Dudes Brewing Company, 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 17ENT-0066 2. Adopt the Statement of Official Action (STOA) Executive Summary The applicant requests approval of a Conditional Use Permit (CUP) to allow for the operation of a 175-seat (116 interior seats and 59 outdoor patio seats) beer sampling/tasting room offering on-site and off-site sale and consumption of craft beer. A Type 23 (Small Beer Manufacturer or Microbrewery) alcohol license is being requested. The use would operate in conjunction with a restaurant within an existing 3,794 square foot tenant space on the third floor of the Santa Monica Place mall formerly occupied by Pizza Antica. A CUP is required to ensure that the use is generally consistent with the purposes of the Zoning District where it is proposed but requires special consideration to ensure that it can be designed, located, and operated in a manner that would not interfere with the use and enjoyment of surrounding properties. In addition to the required CUP findings provided in this report, the following issues should be considered by the Planning Commission in its review of the proposed project and are addressed in this report: 1

The compatibility of on-site consumption of alcoholic beverages on the premises with the surrounding neighborhood. The effectiveness of the recommended conditions of approval in minimizing any potential adverse impacts that are alcohol related on the surrounding neighborhood in conjunction with the Type 23 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: Downtown Specific Plan (DSP) LUCE: Downtown Core Parcel Area (SF): On-Site Improvements (Year Built): Adjacent Zoning Districts and Land Uses: 215,075 sq. ft. (SM Place parcel) 475,736 square foot retail mall (1980, remodeled 2010) North:DSP (Retail, Office and Residential) South: DSP (former Retail) West: DSP (Retail, Office, Hotel) East: DSP (Retail, Office, Ken Edwards Center) Site Location Map The subject site is a third floor tenant space located within the Santa Monica Place shopping mall, which occupies a full city block bordered by Broadway, Colorado Avenue, 2 nd Street, and 4 th Street. 2

Figure 1 Santa Monica Place, Third Floor plan. Subject tenant space in red. Background The Dudes Brewing Company is proposing to operate within the Santa Monica Place shopping mall in the City s DSP (Downtown Specific Plan) zone. The recently adopted Downtown Community Plan identifies the entire Santa Monica Place site as being located within the Transit Adjacent downtown district where local and regional goods and services in proximity to transit serving residents and visitors are provided. Uses in the Transit Adjacent district are also intended to support the creation of community gathering spaces. The recently approved Downtown Community Plan further notes that Restaurant of the proposed size are permitted outright without any further entitlement. However, because this CUP application predates the effective date of the Downtown Community Plan, the proposed alcohol service is subject to the requirements specified in SMMC 9.04.10.18, the applicable Zoning Code section that was in effect at the time of application. The Dudes Brewing Company would operate in a tenant space that formerly hosted a restaurant, Pizza Antica, that opened in 2010 and ceased operation in 2016. This former restaurant was granted a Conditional Use Permit in 2010 for alcohol service and was issued a Type 41 alcohol license for the on-site sale and consumption of beer and wine. The applicant had contemplated operating under the restrictions of the current Conditional Use Permit in place for this specific tenant space (10CUP-003 and 11CUP-001) but chose to move forward with a new Conditional Use Permit to ensure that the all parameters and conditions were specifically aligned with The Dudes Brewing Company corporate model and operation. In particular, the applicant wanted there to be no question as to the operation of The Dudes Brewing Company as a brewpub subject to the benefits and limitations imposed as a Type 23 alcohol license. 3

Project Analysis Conditional Use Permit The applicant requests approval of a CUP to permit the operation of a brewpub with a Type 23 alcohol license within a former restaurant space on the third floor of the Santa Monica Place mall. A Type 23 license allows for on-site consumption of beer in conjunction with a restaurant along with off-site alcohol sales. The subject tenant space has 3,794 square feet of interior space along with 963 square feet of outdoor patio space. The former restaurant tenant located in this space was granted a Conditional Use Permit in March 2010 to operate with a Type 41 license. The alcohol license is being requested in conjunction with a new eating establishment. According to Santa Monica Municipal Code (SMMC) Section 9.04.10.18.020, a CUP is required for the on-site sale and consumption of alcoholic beverages. Figure 2 Floor Plan, customer service/seating areas highlighted. The proposed Dudes Brewing Company would provide indoor and outdoor patio seating for a total of 175 patrons and would predominantly serve house beers that are brewed off-site (in Torrance) and hauled on-site in kegs and stored in a taproom. The floorplan includes a kitchen for food preparation where pizza is the primary offering to complement the beer. The interior seating area would include a service counters, tables with bench seating, and a large 15-person corner booth. The outdoor seating area is 963 square feet in size and would accommodate a maximum of 59 persons. Seating consists of long counters that face outward toward the public plazas of Santa Monica Place and twoperson tables along the exterior building wall. The outdoor space would be enclosed by 4

a decorative rail. improvements. A trellis would be constructed overhead as part of the tenant Wall-mounted televisions and shuffleboard would provide indoor entertainment. In addition, the application notes the intention to provide non-amplified live music once a week. There will not be any entertainment activities occurring with the outdoor seating area. Beer can be purchased for off-site consumption. All off-site sale of beer would consist of pre-packaged cans/bottles or growlers, which are half-gallon containers that the customer can purchase at the brewery. Customers would be able to return with their personal growlers to be refilled at the bar and taken home for consumption. The applicant is proposing to be open seven days a week between the hours of 11:00 a.m. until 12:00 a.m. (midnight). The proposed hours are more restrictive than what was previously permitted for the former tenant, Pizza Antica, whose hours of operation started one hour earlier at 10:00 a.m. with a closing time that extended an additional two hours until 2:00 a.m. the following day. The Santa Monica Place mall has numerous eating and entertainment establishment that also offer alcohol service. Table 1 summarizes the conditioned hours of operations for each of these tenants. Overall, the proposal for The Dudes Brewing Company is consistent with other mall tenants and should not create any hardships on their existing operations. TENANT The Dudes Brewing Company (Space #304) Pizza Antica (former tenant Space #304) Curious Palate (Space #s 321 and 323) Sonoma (Space #300) The Market ( 3 rd Floor Level) Cheesecake Factory (Space #s 305 and 306) True Foods (Space #172) Bazille Restaurant (at Nordstroms) CONDITIONED HOURS OF OPERATION 11am-12am daily 10am-2am daily Outdoor seating 10am-12:30am (Sunday-Thursday) 10am -1:30am (Friday, Saturday) 11am-11pm 10am-2am Outdoor seating 10am-12:30am (Sunday-Thursday) 10am -1:30am (Friday, Saturday) 10am-12am offsale 10am-2am onsite Outdoor seating 10am-12:30am (Sunday-Thursday) 10am -1:30am (Friday, Saturday) 10am-2am 10am-2am 10am-8:30pm (Monday-Saturday) 11am-6pm (Sunday) 5

All Food Court Tenants (3 rd Floor Level) Indoor/Outdoor Seating 10am-12:30am (Sunday-Thursday) 10am -1:30am (Friday, Saturday) Table 1 Santa Monica Place Conditioned Hours of Operation Compliance with Zoning Ordinance The Dudes Brewing Company is proposing to operate within the Santa Monica Place shopping mall which is located in the City s DSP (Downtown Specific Plan) zone. However, because this application predates the effective date of the Downtown Community Plan, the proposal is subject to the C3C (Downtown Overlay) zoning district requirements, and the ancillary alcohol service is subject to the requirements specified in SMMC 9.04.10.18 which are the Zoning Code sections that were in effect at the time of application. The subject property is within the City s Downtown area. This district is intended to provide for a concentrated mixture of activities that encourage a sense of human scale and pedestrian-oriented character. Retail and cultural uses in addition to complementary uses such as hotels, offices, and residential uses are encouraged. The operation of a brew pub is consistent with the intent of the zoning district by providing a unique use that is not common within the Downtown neighborhood. Parking Analysis In August 2010, in conjunction with the remodel of Santa Monica Place, the City approved a parking variance (10VAR-017) allowing an overall reduction in the total number of parking spaces to be provided. Currently the City s Parking Structures #7 and #8 have parking for 2,199 vehicles and provide all required parking for Santa Monica Place. At the time the variance was considered, the subject space was contemplated as a restaurant use. Since the request would continue this type of operation and would not include any additional floor area, no additional parking would be required to be provided as a result. Vehicular access to Parking Structures #7 is available from 4 th Street and Broadway, and Parking Structure #8 takes access from 2 nd Street and Colorado Avenue. In addition, Santa Monica Place provides for pedestrian points of entry on all facades including anchor tenant entrances. The subject tenant space is located on the third level of the mall and is centrally located to parking and pedestrian access points to the adjacent streets. Neighborhood Compatibility Santa Monica s Downtown functions as the City s center of commerce, retail, dining, transit, and entertainment. The area serves as a destination for local residents, regional visitors, and tourists from abroad. Goal D7 and Policy D7.1 of the Land Use and Circulation Element call for a balanced mix of uses that activate and support the greatest concentration of activity for the City. Furthermore, the vision includes Santa Monica Place to complement the Civic Center and terminus station of the Expo Line light rail system. Continuing to provide amenities such as alcohol service would attract visitors and catalyze the district s shopping and dining opportunities. The service of beer in a 6

tasting room environment is a unique operation in Santa Monica that could attract more visitors to Santa Monica Place, heightening its overall economic vitality. The Dudes Brewing Company would be located within a controlled retail mall environment that employs its own security force to assist should there be any safety issues or concerns. Additionally, Condition Nos. 34 and 35 require that the applicant submit and obtain approval of a security plan and submit a copy of the restaurant employees Alcohol Awareness Training program prior to the commencement of alcohol service at the restaurant Additionally, Santa Monica Place is located within the City s Downtown where alcohol service is currently permitted as part of their respective operations. Table 2 below identifies the locations and license types of other alcohol serving outlets within the immediate vicinity of the subject site. Staff believes that the proposed operational limitations being offered for the subject application and as recommended in this report coincide with those outlets currently in operation and would not adversely impact the City s important Downtown neighborhood. Establishment Address License Type Hours of Alcohol License Steak n Shake 1455 3 rd Street Type 41, 9am 12am Promenade (Sunday Thursday) The Independence 201-205 Broadway Thai Dishes on Broadway Type 47, On-sale general eating place 123 Broadway Type 47, On-sale general eating place Copa d Oro 217 Broadway Type 47, On-sale general eating place 9am-1am (Friday Saturday) Patio closes at Midnight Daily 9am 1am 10am 12:30am (Sunday Thursday) 10am 1:30am (Friday- Saturday) 1pm 2am Craftsman Bar & Kitchen 119 Broadway Type 47, On-sale general 11am 1am eating place Frank s Liquor 115 Broadway Type 21, Off-sale general Legal Non-Conforming Store grocery ABC Hours Shore Hotel 1515 Ocean Ave. Type 70, On-sale general 10am 10pm restrictive service, Type 66 Controlled access cabinet 7

Establishment Address License Type Hours of Alcohol License Chloe 1449 2 nd St. Type 47, On-sale general 5pm 2am eating place Café Crepe 1460 3 rd Street Type 47, On-sale general 9am 12am Promenade eating place 9am 1am (Friday-Saturday) North Italia 1442 2 nd St. Type 47, On-sale general 12pm 12am eating place Ivy at the Shore 1535 Ocean Ave. Type 47, On-sale general 11am 11pm eating place Blue Plate Taco 1515 Ocean Ave. Ste. A Type 47, On-sale general eating place West 4 th Jane 1432 Unit A 4 th St. Type 41, On-sale beer & wine eating place Ma kai 101 Broadway Type 47, On-sale general eating place Wyndham 120 Colorado Ave Type 47, On-sale general eating place 7am 2am (Weekends and Holidays) 10am 2am (Weekdays) 12pm 2am (Monday Saturday) 10am 1am (Sunday) 7am 12am (Sunday-Wednesday) 7AM 2 AM (Thursday-Saturday) Legal Non-Conforming ABC Hours General Plan Consistency The proposed use is consistent with the goals, objectives, and policies of the General Plan, in that Goal D1 of the Land Use and Circulation Element (LUCE) says to, maintain Downtown s competitive advantage as a premier local and regional shopping, dining, and entertainment destination, and support its evolution in order to respond to changing market conditions. Furthermore, Land Use Element Goal D7 and Policy D7.1 supports creating a balanced mix of uses in the downtown that reinforces its role as the greatest concentration of activity in the City and encouraging a broad mix of uses that create dynamic activity in both the daytime and evening hours. Staff believes that the Dudes Brewing Company use supports this overall goal for this part of Downtown Santa Monica, and that the provision of ancillary alcohol service in close proximity to transit is a positive step in reducing alcohol-induced driving incidents. The proposed CUP for alcohol service would allow the restaurant patrons to have beverage options, similar to other food serving establishments within the Santa Monica Place Mall and downtown area and establishes a complementary component to Santa Monica Place s restaurant operations that would attract patrons to the area. 8

Police Department & Community Cultural Services Department The Santa Monica Police Department & Community Cultural Services Department have been contacted regarding this proposal. The Police and Community Cultural Service Departments did not express comments or objections to the proposal or changes to the hours of operation. Environmental Analysis 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 improvements to an existing tenant space in order to establish a brew pub with on-site sale of beer for consumption on the premises in conjunction with a restaurant and the off-site sale of beer. The scope of the improvements would occur within an existing tenant space and involve only minor alterations. 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 Approve OR Deny, with or without prejudice, the subject application Conclusion The Dudes Brewing Company requests approval of a Conditional Use Permit to allow for ancillary alcohol service (Type 23) as a tasting room with food service with a total of 175 indoor and outdoor seats and an overall size of 3,794 square feet in an existing third-floor tenant space within the Santa Monica Place shopping mall. The project site is located in Downtown Santa Monica. Conditions of approval have been included to mitigate any potential operational and alcohol-related impacts. The proposal is complimentary to other dining and entertainment uses within Santa Monica Place and compatible with the surrounding neighborhood context which has multiple restaurants serving beer, wine, distilled spirts with comparable or later hours of operation. The proposed alcohol sales and service at the restaurant is not anticipated to create any negative impacts to the surrounding area. 9

Prepared by: Scott Albright, Senior Planner Tony Kim, Principal Planner Attachments A. General Plan and Municipal Code Compliance Worksheet B. Draft Statement of Official Action C. Public Notification & Comment Material D. Project Plans 10

ATTACHMENT A GENERAL PLAN AND MUNICIPAL CODE COMPLIANCE WORKSHEET Project Location and Permit Processing Time Limits Project Address: 395 Santa Monica Place, Tenant Space #304 Application Filing Date: May 16, 2017 CEQA Deadline: July 15, 2017 PSA Deadline: September 13, 2017 Total Process Review Time (Days): May 16, 2017 to September 6, 2017 113 days total General Plan and Municipal Code Compliance Worksheet CATEGORY LAND USE ELEMENT MUNICIPAL CODE PROJECT Permitted Use N/A Alcohol outlets with a Type 23 alcohol license require a Conditional Use Permit. [SMMC 9.31.040B] Applicant requests a Conditional Use Permit for a Type 23 (Brewpub) to operate with on-site sale and consumption of beer in conjunction with a bona fide eating establishment and for the off-site sale of beer. 11

ATTACHMENT B DRAFT STATEMENT OF OFFICIAL ACTION City of Santa Monica City Planning Division PLANNING COMMISSION STATEMENT OF OFFICIAL ACTION PROJECT INFORMATION CASE NUMBER: LOCATION: APPLICANT: PROPERTY OWNER: CASE PLANNER: REQUEST: CEQA STATUS: Conditional Use Permit 17ENT-0066 395 Santa Monica Place The Dudes Brewing Company, LLC Macerich Santa Monica, LP Scott Albright, Senior Planner Approval of a Conditional Use Permit (17ENT-0066) to allow the operation of a brewpub/tasting room (The Dudes Taproom Brewing Company) with on-site and off-site sale and consumption of beer (Type 23 alcohol license - Brewpub) in conjunction with an eating establishment within an existing restaurant tenant space with an outdoor seating area within the Santa Monica Place Mall. 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 improvements to an existing building to allow the operation of a tasting room with on-site and off-site sale and consumption of beer The scope of the improvements will occur within an existing tenant space and involve only minor alterations. 12

PLANNING COMMISSION ACTION September 6, 2017 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*: September 21, 2017 March 21, 2019 6 months Commission approval * 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: 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 Element and Zoning Ordinance, in that alcohol licenses in conjunction with eating and drinking establishments are conditionally permitted in the C3C (Downtown Overlay) district. More specifically requests for new alcohol licenses require Conditional Use Permit approval consistent with SMMC Section 9.04.10.18.020. 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 beer tasting room will be operated in conjunction with a restaurant, which are encouraged in the Land Use Element. Conditions of approval have been included to mitigate any potential impacts associated with alcohol sales and consumption. 3. The subject parcel is physically suitable for the type of land use being proposed, in that the parcel is approximately 45,271 square feet and developed with a shopping mall. Vehicular and pedestrian activity is available to the site and is adequately served by multiple mall entrances and existing parking structures. The service of beer does not require any additional construction and will be an ancillary 13

component of the restaurant use. 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 site serves as a regional shopping center that provides for a variety of retail and dining opportunities within the structure. The issuance of an alcohol license for beer service is consistent and compatible with other operations existing within Santa Monica Place. The proposed conditions of approval further ensure that the use operates in a harmonious manner with the other land uses in the general vicinity. 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 alcohol service is conditionally permitted by the Zoning Ordinance and is proposed in an existing restaurant space that previously had existing alcohol service located in an open air shopping center. As conditioned, the hours of alcohol service are no more intense than other uses within Santa Monica Place and also within the immediate Downtown area. The conditions of approval will ensure that the use operates in a harmonious manner with the adjacent land uses and will not create any alcohol-related problems in the area in that the alcohol service for The Dudes Brewing Company will be consistent with other operations within Santa Monica Place that also offer alcohol service. 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 health and safety, in that that the alcohol service is conditionally permitted by the Zoning Ordinance and is proposed within an existing restaurant space located within Santa Monica Place. 7. Public access to the proposed use will be adequate, in that vehicular access to the public parking structures are available from Colorado Avenue, 2 nd Street, 4 th Street, and Broadway. Pedestrian points of entry to the mall are also provided at these same public streets. 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 proposed service of beer will be in conjunction with an existing full-service restaurant space that previously offered alcohol service located inside Santa Monica Place, a controlled environment with routine security and operating standards. Additionally, the use is consistent within the Downtown where a Type 23 license does not contribute significantly to alcohol related problems. 9. The proposed use is consistent with the goals, objectives, and policies of the General Plan, in that Goal D1 of the Land Use and Circulation Element (LUCE) says to, maintain Downtown s competitive advantage as a premier local and regional shopping, dining, and entertainment destination, and support its evolution in order to respond to changing market conditions. Furthermore, Land Use 14

Element Goal D7 and Policy D7.1 supports creating a balanced mix of uses in the downtown that reinforces its role as the greatest concentration of activity in the City and encouraging a broad mix of uses that create dynamic activity in both the daytime and evening hours. The proposed CUP for alcohol service will allow the restaurant patrons to have beverage options, similar to other food serving establishments within the Santa Monica Place Mall and downtown area and establishes a complementary component to Santa Monica Place s restaurant operations that will attract patrons to the area. 10. The proposed use would not be detrimental to the public interest, health, safety, convenience, or general welfare, in that the proposed use is consistent with the Zoning Ordinance and the Land Use Element of the General Plan, and alcohol specific conditions have been added to mitigate any potential adverse impacts 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 Zoning Ordinance, in that 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 alcohol license will be for a restaurant space located in the Santa Monica Place with prior alcohol service serving local residents and visitors. The general vicinity is frequented by large numbers of local residents, shoppers, visitors, and tourists. This type of outlet has not contributed significantly to alcohol related problems in the area, and it is anticipated that the incorporation of various conditions of approval will minimize impacts and intrusions into any adjacent residential neighborhoods. ALCOHOL OUTLET FINDINGS 1. The proposed use will not adversely affect the welfare of neighborhood residents in a significant manner in that the alcohol service will be located within an existing establishment in a controlled environment, away from any major residential uses. The latest hour for serving alcoholic beverages will be 12 a.m. (midnight) which is more restrictive than most establishments within Santa Monica Place that had also been granted alcohol licenses. 2. The proposed use will not contribute to an undue concentration of alcohol outlets in the area in that The Dudes Brewing Company will be located in a shopping center that is not typically considered to contribute to objectionable problems associated with alcohol outlets. The restaurant is located in the downtown area of Santa Monica and is frequented by large numbers of local residents, office workers, shoppers, visitors, and tourists. Furthermore, this type of outlet has not contributed significantly to alcohol related problems in the area. 15

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 restaurant is located in a controlled environment and the conditions for approval, such as the hours of operation and compliance with the provisions of the Noise Ordinance, will minimize the potential effect on other uses in the vicinity. The Police Department and Community Cultural Services Department have reviewed the project and have not indicated any objections to the proposal. 4. The proposed use is compatible with existing and potential uses within the general area in that the restaurant will be located within an existing space in Santa Monica Place, located in the City s Downtown Overlay district. The restaurant operation in conjunction with an alcohol license is compatible with other restaurant uses with alcohol service in the immediate area. 5. Traffic and parking congestion will not result from the proposed use in that parking for the use is available in public Parking Structures No. 7 and 8. 6. The public health, safety, and general welfare are protected in that the proposed use is consistent with the Zoning Ordinance and the Land Use Element of the General Plan, and alcohol specific conditions have been added to mitigate any potential adverse impacts. A restaurant with alcohol sales is compatible with the surrounding regional shopping center and Downtown development. 7. No harm to adjacent properties will result in that in that the conditions of approval will ensure that the establishment operates in a manner which protects adjacent neighbors. 8. The proposed use is consistent with the objectives of the General Plan in that the Land Use Element of the General Plan designates the area as part of the City s Downtown. Specifically Goal D1 of the Land Use and Circulation Element (LUCE) says to, maintain Downtown s competitive advantage as a premier local and regional shopping, dining, and entertainment destination, and support its evolution in order to respond to changing market conditions. Furthermore, Land Use Element Goal D7 and Policy D7.1 supports creating a balanced mix of uses in the downtown that reinforces its role as the greatest concentration of activity in the City and encouraging a broad mix of uses that create dynamic activity in both the daytime and evening hours. The proposed conditional use permit for alcohol service would allow the restaurant patrons to have additional beverage options, similar to other food serving establishments within the downtown and establishes a complementary component to Santa Monica Place restaurant operations that will attract patrons to the area. 16

CONDITIONS OF APPROVAL: PLANNING AND COMMUNITY DEVELOPMENT Project Specific Conditions 1. This approval is for a Type 23 (Brewpub) alcohol license only. Any request to modify the license type shall require approval from the Planning Commission. 2. Seating arrangements for restaurant patrons shall not exceed 175 seats. 3. The permitted hours of alcohol service shall be daily from 11AM to 12AM (midnight) with complete closure and all employees vacated from the restaurant by 1AM. No "after hours" operations shall be permitted. Administrative 4. 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. An appeal of the approval, conditions of approval, or denial of a subdivision map must be filed with the City Clerk within ten consecutive days following the date of Planning Commission determination in the manner provided in Part 9.20.14, Section 9.20.14.070. 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 commencement of alcohol service or issuance of an alcohol license from the State of California. 5. 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 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. 6. Within thirty (30) days after final approval of the project, a sign shall be posted on site stating the date and nature of the approval. The sign shall be posted in accordance with the Zoning Administrator guidelines and shall remain in place until a building permit is issued for the project. The sign shall be removed promptly when a building permit is issued for the project or upon expiration of the Design Compatibility Permit. 17

7. Prior to issuance of a final inspection, the applicant shall post a notice at the restaurant 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. 8. 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. 9. Prior to issuance of a Certificate of Occupancy, or a business license, or commencement of alcohol service as applicable, 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. 10. Prior to issuance of a Certificate of Occupancy, or a business license, or commencement of alcohol service as applicable, 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 on the menu a free non-alcoholic drink for every party of two or more ordering alcoholic beverages. 11. 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. 12. Applicant is advised that projects in the California Coastal Zone may need approval of the California Coastal Commission prior to issuance of any building permits by the City of Santa Monica. Applicant is responsible for obtaining any such permits. 18

Indemnity 13. Applicant shall defend, indemnify, and hold harmless the City and its boards, commissions, agents, officers, and employees (collectively, "City") from any claims, actions, or proceedings (individually referenced as "Claim" and collectively referenced as "Claims") against the City to attack, set aside, void, or annul, the approval of 17ENT-0066 or any Claims brought against the City due to the acts or omissions in any way connected to the Applicant's project. City shall promptly notify the applicant of any Claim and shall cooperate fully in the defense. Nothing contained in this paragraph prohibits the City from participating in the defense of any Claims, if both of the following occur: 1. The City bears its own attorney's fees and costs. 2. The City defends the action in good faith. 3. Applicant shall not be required to pay or perform any settlement unless the settlement is approved by the Applicant. 4. In the event any such action is commenced to attack, set aside, void or annul all, or any, provisions of any approvals granted for the Project, or is commenced for any other reason against the City for the act or omissions relating to the Applicant's project, within fourteen (14) days following notice of such action from the City, the Applicant shall file with the City a performance bond or irrevocable letter of credit, or other form of security satisfactory to the City ("the Security") in a form satisfactory to the City, and in the amount of $100,000 to ensure applicant's performance of its defense, indemnity and hold harmless obligations to City. The Security amount shall not limit the Applicant's obligations to the City hereunder. The failure of the Applicant to provide the Security shall be deemed an express acknowledgment and agreement by the Applicant that the City shall have the authority and right, without consent of the Applicant, to revoke the approvals granted hereunder. Conformance with Approved Plans 14. This approval is for those plans dated July 14, 2017, 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. A significant change in the approved concept shall be subject to Planning Commission Review. Construction shall be in conformance with the plans submitted or as modified by the Planning Commission, Architectural Review Board or Director of Planning. 16. 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, and increase of 19

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. 17. Project plans shall be subject to complete Code Compliance review when the building plans are submitted for plan check and shall comply with all applicable provisions of Article IX of the Municipal Code and all other pertinent ordinances and General Plan policies of the City of Santa Monica prior to building permit issuance. 18. 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 19. The primary use of the premises shall be a beer tasting room in conjunction with sit-down meal service to patrons. 20. If a counter service area is provided, food service shall be available at all hours the counter is open for patrons. 21. Window or other signage visible from the public right-of-way that advertises beer or alcohol shall not be permitted. 22. Customers shall be permitted to order meals at all times and at all locations where alcohol is being served. The establishment shall serve food to patrons during all hours the establishment is open for customers. 23. The establishment shall maintain a kitchen or food-serving area in which a variety of food is prepared on the premises. 24. Take out service shall be only incidental to the primary sit-down use. 25. Except for special events, alcohol shall not be served in any disposable container such as disposable plastic or paper cups. 20

26. No more than three television screens, including video projectors or similar audio/visual devices, shall be utilized on the premises. None of these televisions or projections surfaces shall exceed 60 inches measured diagonally. 27. No video games shall be permitted on the premises. No more than two shuffleboard tables shall be permitted as shown on the plans. 28. No dancing or live entertainment beyond that allowed in restaurant definition contained in Section 9.04.02.030.730. Specifically, a restaurant may provide music or other entertainment if: 1) there is sit down meal service provided at all times while the entertainment is taking place; 2) there is no dancing or dance floor; 3) there is no cover charge or minimum drink purchase requirement; and 4) the entertainment is provided only in the dining areas. 29. 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. 30. 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. 31. The establishment 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 restaurant. 32. There shall be no cover charge or minimum drink purchase requirement. 33. The project shall at all times comply with the provisions of the Noise Ordinance (SMMC Chapter 4.12). Police 34. Prior to issuance of a Certificate of Occupancy, or a business license, or commencement of alcohol service as applicable, a security plan shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues. 35. Prior to the commencement of alcohol service, the applicant shall participate in the Santa Monica Alcohol Awareness for Retailers Training (S.M.A.A.R.T) program conducted by the Santa Monica Police Department 36. The applicant authorizes reasonable City inspection of the property to ensure compliance with the conditions of approval imposed by the City in approving this project and will bear the reasonable cost of these inspections as established by Santa Monica Municipal Code Section 2.72.010 and Resolution No. 9905 (CCS) 21

or any successor legislation thereto. These inspections shall be no more intrusive than necessary to ensure compliance with conditions of approval. VOTE Ayes: Nays: Abstain: Absent: NOTICE If this is a final decision not subject to further appeal under the City of Santa Monica Comprehensive Land Use and Zoning Ordinance, the time within which judicial review of this decision must be sought is governed by Code of Civil Procedure Section 1094.6, which provision has been adopted by the City pursuant to Municipal Code Section 1.16.010. I hereby certify that this Statement of Official Action accurately reflects the final determination of the Planning Commission of the City of Santa Monica. Amy N. Anderson, Chairperson Date Acknowledgement by Permit Holder I hereby agree to the above conditions of approval and acknowledge that failure to comply with such conditions shall constitute grounds for potential revocation of the permit approval. Print Name and Title Date Applicant s Signature 22

ATTACHMENT C PUBLIC NOTIFICATION INFORMATION Consistent with SMMC 9.04.20.22.050, notice of the subject application was published in a newspaper of general circulation (Santa Monica Daily Press) and mailed to owners and occupants within 500 feet of the property, at least fourteen days prior to the hearing. In addition, a copy of the notice was posted on the City s website, on the City s bulletin board, and copies of the agenda mailed to all City-recognized neighborhood groups prior to the hearing. On July 11, 2017, the applicant was notified by phone and in writing of the subject hearing date. The applicant provided the following information regarding attempts to contact area property owners, residents, and recognized neighborhood associations: No information from the applicant was provided to staff in regards to contacting property owners, residents, or recognized neighborhood associations. 23

NOTICE OF A PUBLIC HEARING BEFORE THE SANTA MONICA PLANNING COMMISSION SUBJECT: 17ENT-0066 (Conditional Use Permit) 395 Santa Monica Place #304 APPLICANT: The Dudes Brewing Company, LLC PROPERTY OWNER: Macerich Santa Monica, LLC A public hearing will be held by the Planning Commission to consider the following request: The applicant requests approval of a Conditional Use Permit (17ENT-0066) to allow the operation of a brewpub/tasting room (The Dudes Taproom Brewing Company) with onsite and off-site sale and consumption of beer (Type 23 alcohol license - Brewpub) in conjunction with an eating establishment within an existing restaurant tenant space with an outdoor seating area within the Santa Monica Place Mall. DATE/TIME: LOCATION: WEDNESDAY, SEPTEMBER 6, 2017 AT 7:00 PM City Council Chambers, Second Floor, Santa Monica City Hall 1685 Main Street, Santa Monica, California HOW TO COMMENT The City of Santa Monica encourages public comment. You may comment at the Planning Commission public hearing, or by writing a letter. Written information will be given to the Planning Commission at the meeting. Address your letters to: Scott Albright, Senior Planner Re: 17ENT-0066 City Planning Division 1685 Main Street, Room 212 Santa Monica, CA 90401 MORE INFORMATION If you want more information about this project or wish to review the project file, please contact Scott Albright at (310) 458-8341, or by e-mail at scott.albright@smgov.net. The Zoning Ordinance is available at the Planning Counter during business hours and on the City s web site at www.smgov.net. The meeting facility is wheelchair accessible. For disability-related accommodations, please contact (310) 458-8341 or (310) 458-8696 TTY at least 72 hours in advance. Every attempt will made to provide the requested accommodation. All written materials are available in alternate format upon request. Santa Monica Big Blue Bus Lines #1, #2, #3, Rapid #3, #7, #8, #9, Rapid #10, and #18 service City Hall and the Civic Center area. The Expo Line terminus is at Colorado Avenue and Fourth Street, a short walk to City Hall. 24

Public parking is available in front of City Hall, on Olympic Drive, and in the Civic Center Parking Structure (validation free). Pursuant to California Government Code Section 65009(b), if this matter is subsequently challenged in Court, the challenge may be limited to only those issues raised at the public hearing described in this notice, or in written correspondence delivered to the City of Santa Monica at, or prior to, the public hearing. ESPAÑOL Esto es una noticia de una audiencia pública para revisar applicaciónes proponiendo desarrollo en Santa Monica. Si deseas más información, favor de llamar a Carmen Gutierrez en la División de Planificación al número (310) 458-8341. APPROVED AS TO FORM: Tony Kim Principal Planner 25