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Conditional Use Permit No. 2019-10, 1801 South Main Street, Units D and E November 19, 2019 Page 4 Item Information East Residential South Commercial West Commercial Property Size 20,038 s . ft. Existing Site Development The site is developed with a 6,650 square -foot commercial building. Use Permissions Allowed with a conditional use permit CUP Zoning Code Sections Affected Uses I Section 41-196 & 41-521 SAMC Operational Standards I Section 41-196 (g) SAMC PROJECT BACKGROUND AND CHRONOLOGY In 1986, a five -unit, 6,650 square foot commercial building was constructed on the site. In 1988, Mariscos Hector replaced the former restaurant within Unit E and began selling beer and wine for on premise consumption as allowed by Land Use Certificate No. 1988-15. The current owner of Mariscos Hector #1 has been operating the South Main Street restaurant since 2005. There are three other Mariscos Hector restaurants in the City that the owner is affiliated with. Two are wholly owned by the applicant, with the applicant having majority control of the third establishment. In 2014, a conditional use permit application was submitted to expand the restaurant and beer and wine sales into the adjacent tenant space (Unit D); however, the applicant elected to withdraw the application prior to scheduling the item for a Planning Commission public hearing. In early 2017, the applicant received authorization from the Department of Alcoholic Beverage Control (ABC) to upgrade from a Type 41 to a Type 47 alcoholic beverage license and allow the sale of distilled spirits in addition to beer and wine. Around the same time, the adjacent 600 square foot space (Unit D) became vacant, with the restaurant leasing the space for future expansion. In response, the applicant submitted a conditional use permit application to the Planning Division. In March 2017, a public hearing was held by the Planning Commission for Conditional Use Permit No. 2017-03. After receiving public testimony on the application, the Commission denied the request to upgrade the license. The denial was based on feedback from the community that included concerns with noise, crime, on -site disturbances, on operational issues occurring at the restaurant. Since the denial, the applicant has secured a new management team and has submitted a new application for the ABC license upgrade. PROJECT ANALYSIS Conditional use permit requests are governed by Section 41-638 of the SAMC. Conditional use permits may be granted when it can be shown that the proposed project will not adversely impact the community. If these findings can be made, then it is appropriate to grant the conditional use permit. Conversely, the inability to make these findings would result in a denial. The purpose of regulating establishments that sell alcoholic beverages is to set forth operating practices and procedures, and to minimize impacts to surrounding areas. In analyzing the applicant's request, staff analyzed several specific elements, including a review of the site to