** NOTE: If approved, this conditional use permit will supersede the previously approved CUP #15-004, which was granted on January 6, 2016.

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Town of Duck, North Carolina Department of Community Development CUP 16-002, Duck Deli Outdoor Dining (revised) 1221 & 1223 Duck Road Agenda Item 3a TO: Chairman Blakaitis and Members of the Duck Planning Board FROM: Joe Heard, AICP, Director of Community Development DATE: March 9, 2016 RE: Staff Report for CUP 16-002, 1221 & 1223 Duck Road (Duck Deli) Application Information Application #: CUP 16-002 Project Location: 1221 & 1223 Duck Road Dare County PIN: 985912766311 Zoning: Village Commercial (V-C) Property Owner: Forlano Properties, LLC Applicant/Contact: Ronald & Kenneth Forlano, Duck Deli Public Meeting Advertised: March 2, 2016 (Coastland Times) Public Meeting Notices Sent: February 25, 2016 Public Meeting Sign Posted: March 4, 2016 Public Meeting Town Website: February 25, 2016 Public Meeting Town Hall Posted: February 25, 2016 Proposal As outlined in the application materials for the proposed project (Attachments B and C), the applicant is requesting approval of a conditional use permit to convert an existing storage shed into a bar/beverage center as part of the recently approved seasonal outdoor dining/entertainment area for Duck Deli in the yard between the restaurant at 1223 Duck Road and adjoining residence at 1221 Duck Road. The existing shed is 130 square feet (9.5 x 13.7 ) in size and already abuts the edge of the outdoor dining/entertainment area. The shed is not proposed to be moved as part of the project. ** NOTE: If approved, this conditional use permit will supersede the previously approved CUP #15-004, which was granted on January 6, 2016. Property Information The two properties at 1221 and 1223 Duck Road were recently combined into a single parcel of land. This combined parcel is 25,161 square feet (0.58 acre) in size and zoned Village Commercial (V-C). Constructed in 1981, the Duck Deli restaurant building at 1223 Duck Road is 1,698 square 1

Town of Duck, North Carolina Department of Community Development CUP 16-002, Duck Deli Outdoor Dining (revised) 1221 & 1223 Duck Road Agenda Item 3a feet in size and presently contains seating for 44 customers. The adjoining three-bedroom residence at 1221 Duck Road was constructed in 1983 and is 1,848 square feet in size. The residence is presently occupied by the owners family. An approximately 1,000 square foot outdoor dining/entertainment area is located in the yard between the two buildings. The adjoining property to the south is zoned Single-Family Residential (RS-1) and contains a single-family residence. Four (4) parcels situated on a bluff nearly 30 feet above the property abut the rear of the subject property to the east. These properties are zoned RS-1 and each contains a single-family residence fronting on Gifford Circle. Another adjoining property to the east is zoned Single-Family Residential (RS-1) and contains a single-family residence fronting on Marlin Drive. Across Duck Road to the west are a couple of properties zoned Village Commercial (V-C). The smaller property contains an office for Stan White Realty. The larger property contains the Waterfront Shops shopping center. Prior Approval History Based on a conversation with the applicants, the Duck Deli restaurant building was originally constructed as a residence, but was later converted to retail use over time. Following purchase of the property, the applicants obtained building permits to remodel the interior of the building, relocate the deck, and add a 140 square foot storage building in 1988. Additional remodeling of the kitchen occurred in 1998. CUP 12-001: In 2012, the Duck Town Council granted approval of a conditional use permit for a project that would have involved combining the subject property with the adjoining lot at 1221 Duck Road, demolishing the existing restaurant at 1223 Duck Road and residence at 1221 Duck Road, construction of a new 44 seat restaurant, and installation of a 17 space parking area. The applicants have combined the two properties, but were unable to proceed with the approved project. Earlier this year, the applicants instead completed significant renovations to the existing restaurant building that included the installation of a new septic system in the lawn area to the south of the restaurant. CUP 15-004: In January 2016, the Duck Town Council granted approval of a conditional use permit to add a seasonal outdoor dining/entertainment area for Duck Deli in the yard between the restaurant at 1223 Duck Road and adjoining residence at 1221 Duck Road. The approved project includes the addition of up to 18 seats in an outdoor dining/entertainment area on the lawn between the buildings, installation of an 84 square foot entertainment stage at the rear of this area, and addition of two (2) turfstone parking spaces for employee use in the front yard of the residence. Staff Analysis Proposed Use 156.036(B): Expansion of the outdoor dining/entertainment area for Duck Deli restaurant. A restaurant is a 2

Town of Duck, North Carolina Department of Community Development CUP 16-002, Duck Deli Outdoor Dining (revised) 1221 & 1223 Duck Road Agenda Item 3a conditional use in the Village Commercial (V-C) zoning district. Outdoor seating and entertainment areas are permitted as part of a restaurant subject to certain conditions. Lot Area 156.036(D)(1): The recently combined parcel at 1221/1223 Duck Road is 25,161 square feet (0.58 acre) in size, which complies with the minimum lot size of 20,000 square feet for the V-C district. Lot Coverage 156.036(D)(5): The proposed project involves the conversion of an existing building to a new use and will not change the existing lot coverage of the site. The approved lot coverage for the subject property is as follows: Approved Lot Coverage (estimated): Driveway/Parking/Walkways Turfstone Driveway/Parking (851 x 60%) Buildings/Structures TOTAL 5,134 s.f. 510 s.f. 3,486 s.f. 9,130 s.f. (36.3% lot coverage) The maximum lot coverage requirement in the V-C district is 60%. With an estimated lot coverage of 36.3%, the subject property complies with this standard. Building Setbacks - 156.036(D)(2), (3) & (4): The proposed project will not involve the expansion or change the location of any existing buildings on site. The storage shed proposed for renovation as a bar/beverage center has the following setbacks: Setback Distance Minimum Setback Front (Duck Road) 55 feet 15 feet Rear 8 feet 20 feet South Side 100 feet 10 feet The existing storage shed complies with the Town s minimum setback standards from the front and side property lines, but encroaches twelve feet (12 ) into the rear setback. As the building was erected prior to July 3, 2002, the location of the building is legally nonconforming (grandfathered) and may continue to be used in its present location. Conversion of the building to another use does not impact or negate the status of its legal, nonconforming location. The existing restaurant building at 1223 Duck Road has the following setbacks: Setback Distance Minimum Setback Front (Duck Road) 18 feet 15 feet Rear 5 feet 20 feet South Side 102 feet 10 feet 3

Town of Duck, North Carolina Department of Community Development CUP 16-002, Duck Deli Outdoor Dining (revised) 1221 & 1223 Duck Road Agenda Item 3a The restaurant building complies with the Town s minimum setback standards from the front and side property lines, but encroaches into the rear setback. As the building was constructed in 1981, prior to Town standards, the location of the building is legally nonconforming and does not present any issues regarding its continued use. The existing residence at 1221 Duck Road has the following setbacks: Setback Distance Minimum Setback Front (Duck Road) 36 feet 15 feet Rear 38 feet 20 feet South Side 41 feet 10 feet The residence complies with all applicable setback standards. Access 156.093(G) & 156.112: The proposed project converting the shed to a bar/beverage stand will not involve any changes to the site access. There are access improvements that will be made to the site as part of the prior approval of CUP 15-004: 1. The driveway by the residence will be widened from eleven feet (11 ) to twenty feet (20 ) in width to allow proper ingress and egress for the site. The new entrance will include a ten foot (10 ) concrete apron to the edge of Duck Road, followed by a stretch of turfstone connecting to parking spaces at the front and rear of the property.. 2. A five foot (5 ) wide sidewalk will be constructed along the front of the restaurant parking area in the location and according to the design specifications prepared by VHB Engineering by the end of January 2017. 3. The existing pea gravel parking area will be replaced with permeable paving by the end of January 2017. Parking Spaces (156.093 & 156.094): Conversion of the existing shed to a bar/beverage center will not increase the number of seats for the restaurant and, therefore, will not result in any change to the parking requirements for the subject property. The number of parking spaces required under the recently approved conditional use permit (CUP 15-004) is calculated below: Approved Uses Size Ratio # Spaces Restaurant (Duck Deli) 37 seats (indoor) 1/3 seats 12.3 spaces 18 seats (outdoor) none required 0.0 spaces 8 employees 1/3 employees 2.7 spaces 4

Town of Duck, North Carolina Department of Community Development CUP 16-002, Duck Deli Outdoor Dining (revised) 1221 & 1223 Duck Road Residence (3 bedrooms) 6 occupancy 1/2 occupants 3.0 spaces TOTAL 18.0 spaces Agenda Item 3a With the approved addition of two (2) turfstone parking spaces in the front yard of the residence, the applicant is providing a total of 18 parking spaces on the subject property. Therefore, the proposed development will comply with the Town s minimum parking standards. As one of the existing parking spaces in front of the restaurant is ADA compliant and adjoins an ADA accessible ramp, standards for handicapped access are already met on site. As a condition of the recent conditional use permit approval (CUP 15-004), the applicants have agreed to add a five foot (5 ) wide sidewalk within the right-of-way in front of the parking area that would serve a dual purpose as a sidewalk and concrete apron. The location and specifications for this sidewalk must be consistent with the designs of VHB, the design/engineering firm working on implementation of the Town s Pedestrian Plan. The applicants have agreed to install the sidewalk and replace the existing pea gravel parking area with permeable paving by the end of January, 2017. Health Department (156.125): Duck Deli is presently served by an on-site septic system that was installed as part of the recent improvements to the restaurant. The applicant has obtained approval from the Dare County Environmental Health Department to disconnect the residence from its existing septic system and tie into the commercial septic system for the restaurant. The recently obtained Health Department approval allows up to 37 seats in the restaurant and 18 seats in the outdoor dining area. Conversion of the storage shed to a bar/beverage stand will require approval from the Dare County Environmental Health Department. The applicants have prepared an application for submittal to the Health Department. The applicants must obtain a permit from the Dare County Environmental Health Department prior to conversion of the storage shed to the bar/beverage center. Signs (156.130): The applicants are considering a small directional sign for the outdoor dining/entertainment area, which would be permitted by Town standards. Such sign would require review and approval by the Community Development Department. No other sign changes are proposed. Outdoor Dining Standards - 156.129(c) In addition to compliance with the traditional development standards, outdoor dining areas are subject to the following specific standards for this type of use: 1. Covered outdoor dining areas shall not be enclosed with permanent sidewalls and shall not be air conditioned. Any permanently enclosed space shall be considered part of the interior 5

Town of Duck, North Carolina Department of Community Development CUP 16-002, Duck Deli Outdoor Dining (revised) 1221 & 1223 Duck Road portion of the eating establishment. The proposed outdoor dining area is an open-air space with no roof or walls. Agenda Item 3a 2. Parking shall be provided for outdoor dining areas in accordance with the standards in Section 156.094. The applicant shall delineate the outdoor dining area on a floor plan, drawn to scale, and shall provide a calculation of the square footage of this area. The recently approved project (CUP 15-004) will provide enough parking to accommodate the existing and proposed development on the property. 3. Outdoor dining areas located in the common space of group developments shall be directly contiguous to the frontage of the unit containing the eating establishment. This standard is not applicable as the subject property is not defined as a group development. 4. The location and use of the outdoor dining area shall not obstruct the movement of pedestrians, goods or vehicles, and shall not be located in driveways or parking areas. The proposed bar/beverage center and approved outdoor dining/entertainment area are located away from the parking area and walkways. 5. Outdoor dining areas shall not be located in required front yards and landscape or buffer areas. The proposed bar/beverage center and approved outdoor dining/entertainment area are located in a side yard and are not within a required buffer area. 6. Adequate solid waste and recycling containers shall be provided and shall be serviced and maintained in a neat and clean manner. Outdoor dining areas shall be kept free of litter, debris and food refuse at all times. The applicants plan to provide the containers and comply with these standards. 7. Live music and other forms of entertainment conducted in outdoor dining areas shall not occur after 10:00 p.m. Per the applicants proposal and the recommended condition, the applicants intend to comply with this standard. Consistency w/ CAMA Land Use Plan The Town of Duck s adopted CAMA Land Use Plan contains the following policy and objective: POLICIES #4c/12b: Duck will review and analyze development and redevelopment proposals for consistency with the future land use map included in this land use plan. OBJECTIVE #12c: Enforce, and amend as necessary, the Town zoning ordinance which 6

Town of Duck, North Carolina Department of Community Development CUP 16-002, Duck Deli Outdoor Dining (revised) 1221 & 1223 Duck Road includes designation(s) of permitted and conditional uses intensity and density criteria. Agenda Item 3a In addition, the adopted Land Use Plan contains a Future Land Use Map that shows the former property at 1223 Duck Road as a Village Commercial area and the former property at 1221 Duck Road as a Transitional area. The property at 1221 Duck Road was rezoned to the Village- Commercial (V-C) district in 2012 and the two parcels were recently combined into a single parcel of land. Staff Recommendation Staff recommends APPROVAL of the conditional use permit to expand the approved outdoor dining and entertainment area at 1221 & 1223 Duck Road by converting a storage shed into a bar beverage center, subject to the following conditions: 1. The two parking spaces in front of the residence (noted as spaces 14 and 15 on the site plan) are to be designated for staff parking. 2. The applicants must construct a five foot wide sidewalk in the specified location, according to the design specifications prepared by VHB, and replace the existing pea gravel parking area with permeable paving by the end of January 2017. 3. The applicants must submit an as-built survey documenting all of the site improvements at the completion of the work described in Condition 2. 4. The applicants must obtain approval from the Community Development Department prior to installation of any exterior lighting, which must comply with the Town s lighting standards and may require a building permit. 5. Any signage to be added must comply with the Town s Zoning Ordinance and be permitted by the Community Development Department prior to installation. 6. The applicants must obtain a permit from the Dare County Environmental Health Department prior to conversion of the storage shed to the bar/beverage center. 7. All work relating to conversion of the storage shed to the bar/beverage center must be properly permitted and comply with standards of the N.C. Building Code. 8. Entertainment activities must comply with all applicable Town standards, including the noise ordinance. ATTACHMENTS Attachment A Attachment B Attachment C Attachment D Conditional Use Application and Cover Letter Location Map and Property Information Site Plan Floor Plan for Bar/Beverage Center 7

Attachment B 102 122 Town of Duck, North Carolina Property Location: 1221-1223 Duck Road 120 Prepared by the Town of Duck Last Updated November 6, 2015 118B 1221 100 118A ² 1223 Duck Deli DUCK RD