Planning Commission Agenda Item TO: THRU: FROM: Chair Glasgow and Members of the Planning Commission Anna Pehoushek Assistant Community Development Director Vidal F. Márquez Assistant Planner SUBJECT PUBLIC HEARING: Conditional Use Permit No. 3050-17 Emporio Sushi y Mariscos Restaurant, 150 S. Hewes Street, Units 101& 102 SUMMARY The applicant is requesting an Alcoholic Beverage Control (ABC) Type 41 License (On-Sale Beer and Wine Eating Place) to serve beer and wine beverages at an existing restaurant with an outdoor patio (Emporio Sushi y Mariscos). RECOMMENDED ACTION Adopt Planning Commission Resolution No. PC 28-17 entitled: A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ORANGE APPROVING CONDITIONAL USE PERMIT NO. 3050-17 AUTHORIZING THE SALE OF ALCOHOLIC BEVERAGES (TYPE 41 LICENSE ON-SALE BEER AND WINE-EATING PLACE) AT A RESTAURANT WITH AN OUTDOOR DINING PATIO LOCATED AT 150 S. HEWES STREET UNITS 101 & 102 AUTHORIZATION/GUIDELINES Orange Municipal Code (OMC) Section 17.30.030.C. and Table 17.08.020 authorize the Planning Commission to review and take action on Conditional Use Permits for eating establishments with the sale of alcohol beverages.
Page 2 PUBLIC NOTICE On October 27, 2017, the City sent a Public Hearing Notice to a total of 102 property owners and occupants within a 300-foot radius of the project site. The project site was also posted in one location with notification on that same date. ENVIRONMENTAL REVIEW Categorical Exemption: The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines 15301 (Class 1 Existing Facilities) because the project consists of licensing the sale of alcoholic beverages at an existing restaurant and results in negligible or no expansion of use beyond that existing at the time of the City s determination. PROJECT BACKGROUND Applicant: Hernan A. Uriarte of Emporio Sushi y Mariscos Property Owner: Martinez Family Trust c/o AIM Properties Property Location: 150 S. Hewes Street, Units 101 & 102 Existing General Plan General Commercial (GC) Land Use Element designation: Existing Zoning Limited Business (C-1) Classification: Old Towne: No Specific Plan/PC: No Site Size: 12,500 SF lot; 3,565 SF building Circulation: Site access off south Hewes Street Existing conditions: The site is developed with a freestanding single story multi-tenant commercial building with a surface parking lot. Surrounding land uses Surrounding properties to the north, south, and east are and Zoning: located within the Limited Business (C-1) zone and include a mix of commercial uses and residential uses. Properties located to the west and southwest are located within the Residential Multiple Family (R-2-6) zones Previous Applications/Entitlements: and consist of residential uses. N/A
Page 3 PROJECT DESCRIPTION Alcoholic Beverage Control Type 41 License Emporio Sushi y Mariscos is a family owned Mexican seafood restaurant that has been operating for two years at 150 S. Hewes Street. The applicants now propose to serve beer and wine at the dine-in restaurant under a State Alcohol and Beverage Control (ABC) Type 41 License. The tenant area is approximately 1,824 square feet. Seating is provided for a maximum of 54 customers; all seating is provided at tables and booths. There is no bar area or related seating but there is an existing outdoor patio with seating for 9 patrons enclosed by a wrought iron fence and gate. The hours of operation are Sunday through Friday 10:00 AM to 11:00 PM, and Saturday 9:00 AM to midnight. The applicant s letter of justification is included in Attachment 3 of this report. The subject site is located near the east Chapman Avenue commercial corridor in the El Modena neighborhood. Restaurants are permitted by right in the C-1 zoning district, and the subject site conforms to all applicable development standards for operation of a restaurant in the location. The tenant is located within a small in-line commercial building fronting Hewes Street. There is one main entrance and two exits at the front of the restaurant. The building is setback 5 feet from the westerly adjacent residential property, with a 6 foot high block wall between them and is abutting the recently constructed Encore Hewes senior apartments to the north. Development Standards No changes are proposed to the lot size, building square footage, building height, or parking as part of this application. Therefore, a comparison of the building to existing development standards has not been conducted. APPLICATION(S) REQUESTED/REQUIRED FINDINGS Conditional Use Permit: The applicant is requesting a Conditional Use Permit to serve beer and wine at a restaurant under an Alcoholic Beverage Control (ABC) Type 41 License. Required Findings: 1. A Conditional Use Permit shall be granted upon sound principles of land use and in response to services required by the community. 2. A Conditional Use Permit shall not be granted if it will cause deterioration of bordering land uses or create special problems for the area in which it is located. 3. A Conditional Use Permit must be considered in relationship to its effect on the community or neighborhood plan for the area in which it is located. 4. A Conditional Use Permit, if granted, shall be made subject to those conditions necessary to preserve the general welfare, not the individual welfare of any particular applicant.
Page 4 ANALYSIS/STATEMENT OF THE ISSUES Alcohol beverage sales are a customary accessory use for many restaurants, complementary to the primary use. The subject property does not currently have an ABC licensed establishment and it will be the first Type 41 ABC on-sale license for a restaurant on this site. Based on their experiences and analysis with the restaurant business in this location the Orange Police Department does not oppose the application. Given the location of the restaurant adjacent to a major commercial corridor, within a commercial zone, Planning Staff recommends approval of the application. However, three issue items were identified for this project, and analysis is provided below. Issue 1: Existing Licenses within 600 feet of the Site For information purposes, staff identified the following facilities selling alcoholic beverages that are located within a 600-foot proximity to the restaurant s entrance (See Attachment 4 - Planning Commission Evaluation Map). Existing Licenses Establishment Name License Type Address Albertson s Grocery Store 21 4550 E. Chapman Ave Red Carpet Liquors 21 4536 E. Chapman Ave Moreno s Restaurant 41 4328 E. Chapman Ave Bagel Me (Former White Tortilla) 41 4420 E. Chapman Ave Ostioneria Bahia 41 4429 E. Chapman Ave La Morenita Market 20 4304 E. Washington Ave 7-Eleven 20 4427 E. Chapman Ave Issue 2: Sensitive Receptors The OMC requires a Conditional Use Permit for the sale of alcoholic beverages to ensure there will be no adverse impact on surrounding land uses or allow the availability of alcoholic beverages to minors. When reviewing alcohol permits, OMC 17.30.030 details specific land uses that are sensitive to alcohol activities, but does not establish any specific distances for these uses. The State Alcoholic Beverage Control (ABC) Board investigation requires applicants to identify the sensitive land uses within 600 feet of the site. The following sensitive receptors are in the vicinity of the subject property: Sensitive Receptors Establishment Name Address Distance To Project Site Encore Hewes senior apartments 140 S. Hewes Street 0 feet
Multiple-Family Residential uses to the west, southwest and south of project site Various properties Planning Commission Staff Report Page 5 110 feet Issue 3: Census Tract Alcohol and Crime Statistics Information Census tracts are defined as small geographical areas established by local committees and approved by the Census Bureau, which contain a population segment with relatively uniform economic and social characteristics and clearly identifiable boundaries averaging approximately 1,200 households. The subject property is located in Reporting District (RD) 44n. The ABC determines the concentration of ABC licenses based on the average number of alcohol licenses per capita in a given census tract. However, the ABC and the City recognize that licenses should be reviewed on a case-by-case basis to ensure that such sales will not adversely affect surrounding residents, businesses, and institutions and to ensure that any such use operates in a manner compatible with existing and future adjacent uses. The Orange Police Department s (OPD) Vice Unit reviewed the proposal and found that the subject property is located in an area that is not over-concentrated with alcohol licenses: Alcohol Licenses Existing Allowed On-Sale Licenses 4 10 Off-Sale Licenses 5 4 RD 44n is considered a low crime area. (High-crime is considered more than 20% above average reported crime for all reporting districts in the City. The Orange Police Department Analysis Memo and Recommendation (Attachment 5) states that 76 crimes were reported in RD 44n in 2016. The average reported number of crimes per district citywide was 68; RD 44n had 12% above the average reported crimes than the average within all reporting districts in the City: Crime Statistics Reporting District Citywide Average Percent Difference Reported Crimes Reported Crimes 76 68 12% above average According to OPD statistics, a total of 50 arrests were made in RD 44n and 18 were related to alcohol, including Driving under the Influence and Drinking in Public. The majority of crimes that occurred were commercial burglary, petty theft, grand theft and burglary. There were no reported crimes at Emporio Sushi y Mariscos or the commercial property where it is located. OPD does not oppose the applicant s request for a Type 41 license if the applicant withdraws live entertainment from the application. The applicant has provided a letter of withdrawal for live
Page 6 entertainment (Attachment 3). Also the restaurant is located in an area that is not over-concentrated with on-sale ABC licenses and is in a low-crime rate reporting district. OPD believes that because the license is in conjunction with a bona fide restaurant it will not create an undue burden on public safety resources and have an adverse impact on the surrounding community. Attachment 5 provides additional details related to the analysis prepared by OPD. ADVISORY BOARD RECOMMENDATION No advisory board review occurred for this application because the Planning Division and Police Department, Vice Division are the responsible departments for reviewing alcohol permit requests. ATTACHMENTS/EXHIBITS Attachments to Report: 1. Planning Commission Resolution PC 28-17 2. Vicinity Map 3. Applicant Letter of Justification and Photos 4. Planning Commission Evaluation Map 5. Police Department Analysis Memo and Recommendation 6. Menu Exhibits provided to the Planning Commission: A. Site and Floor Plan received June 21, 2017 CC: Hernan A. Uriarte Emporio Sushi 150 S. Hewes St. Units 101 & 102 Orange, CA 92869 urihernan@gmail.com Carlos A. Guaman El Triunfo Corporation 1415 E. 17 th Street Suite 260 Santa Ana, CA 92705 cguaman@eltriunfo.com N:\CDD\PLNG\Applications\Conditional Use Permits\CUP 3050-17 Emporio ABC Type 41\CUP 3050-17 PC Staff Report.Docx