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Conditional Use Permit No. 2019-10, 1801 South Main Street, Units D and E November 19, 2019 Page 2 41 to a Type 47 license to allow the sale of distilled spirits in addition to beer and wine currently available for on premise consumption. In addition, the applicant is proposing to expand the existing restaurant and is requesting approval to sell alcoholic beverages within the added floor area. The restaurant is currently selling alcohol under Land Use Certificate No. 1988-15, with the proposed license upgrade requiring the filing of an application for a conditional use permit. In addition, the applicant is requesting approval of Conditional Use Permit No. 2019-11, which is a request to allow the restaurant to operate until 1 a.m. on weekends and holidays. The Planning Commission voted to continue the after-hours request until early next year. Planning Commission Background and Action In April 2019, the Planning Commission held the first public hearing on this item. During the hearing, several speakers raised concerns with the existing operation of the restaurant. At the conclusion of the hearing, the Commission elected to continue the item and asked staff to follow- up with the community in an effort to obtain solutions to the issues raised during the public hearing. On June 24th, 2019, a community meeting was held with the Madison Park Board, City staff and representatives from Mariscos Hector. During this meeting, several issues were raised, including concerns that tequila shots were being served in violation of Mariscos Hector's current ABC license, concerns with the operation of the existing restaurant at McFadden and Standard Avenues, loud noise coming from the restaurant, economic incentives for upgrading the ABC license, and a perceived overconcentration of ABC licenses in the area. The applicant responded that hard liquor (tequila) was not being served but an agave wine product, that the applicant for this project (Ms. Sebold) is in the process of obtaining control over the majority of the Mariscos Hector restaurants in an effort to resolve issues at each restaurant, and that the ABC upgrade would ensure the restaurant remains competitive with similar restaurants in the area. At the conclusion of the meeting, the participants agreed to meet again to continue their dialogue. On July 29th, 2019, a follow-up meeting was held that also included interested groups including Santa Ana Healthy Neighborhood Alliance, Wilshire Square and Memorial Park Neighborhood representatives. Further discussion ensued on identifying additional ways to outreach to the community, the creation of a Google Does tool for residents to report incidents/impacts from the restaurant in -lieu of contacting the Police Department, and the need to transition the restaurant to one that caters to families. The applicant responded that changes such as revised hours of operation and incorporating breakfast items into the menu are being considered by the applicant. Following the July 29th community meeting, the Google Does tool was implemented to be used by interested community members to document restaurant related issues. Google Does also allowed the applicant and City staff to provide updates to the issues that were noted in the document. In reviewing the document, members of the community raised several concerns directly to staff between July 30th to August 20th. Of these concerns, only three were related to Mariscos Hector, with the other four concerning an adjacent restaurant and possible brothel. The Mariscos Hector complaints included possible after-hours activities being conducted without approval, drug sales occurring on the premises, and an unpermitted expansion. Staff has investigated these items and was not able to find supporting evidence substantiating the allegations. Staff requested Police Department assistance to determine if after-hours operations were occurring on the premises. A