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CUP No. 2022-10 - The Observatory July 25, 2022 Page 3 2 6 9 9 In October 1994, CUP No. 1994-16 was approved to allow an indoor concert and dinner facility and Type 47 ABC license. At the time of the approval, the facility was proposed to operate as the Coach House. However, after receiving approval the facility began to operate as the Galaxy Concert Theatre. The venue operated as Galaxy Concert Theatre until October 2011 when the venue changed to The Observatory. In May 2019, Live Nation took over the concert operations for the location. In February 2021, CUP No. 2020- 22 was approved to allow the expansion of the sale of alcoholic beverages for on-premise consumption to an outside patio area, in conjunction with the existing concert facility. Project Analysis CUP requests are governed by Section 41-638 of the SAMC. CUPs 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 CUP. Conversely, the inability to make these findings would result in a denial. The purpose of regulating banquet facilities is to set forth operating practices and procedures and to minimize impacts to surrounding areas. Staff has reviewed the applicant’s request to allow for an ancillary banquet facility use for private events and has determined that the proposed CUP will not be detrimental to the health, safety, and welfare of the community. The subject site is not located within immediate proximity to parks, playgrounds, schools, or religious institutions. In addition, the building is located approximately 1,800 feet away from the nearest multi-family residences in Costa Mesa and approximately 0.5-miles (2,640 feet) from the nearest single-family residences in Santa Ana. As a result, the granting of the CUP will not negatively impact any sensitive land uses that may be nearby. The use of banquet facility/private events will allow the applicant to maximize the use of the venue and remain economically viable and competitive with similar establishments that provide private event options. In addition, the private events are intended to provide a service ancillary to the primary entertainment and restaurant use. Banquet facilities as primary or ancillary uses are subject to development and operations standards outlined in Section 41-199.1 of the SAMC. These include the facility providing: (1) full service kitchen facilities; (2) sanitation facilities in compliance with the California Building Code building standards; (3) uniformed state licensed security guard; and (4) exterior lighting in compliance with police department requirements. As an existing entertainment and restaurant use, the venue meets the above-mentioned development and operational standards. Moreover, recommended conditions of approval will ensure that uniformed security in compliance with Section 41-199.1 of the SAMC will be provided for all private events. Finally, the CUP will be consistent with several goals and policies of the General Plan. Policy LU-2.3 of the Land Use Element encourages a diversity of land uses that support 7/25/2022 Planning Commission 2 –3