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occur within the premises and is incidental to the primary restaurant use. 3. Will the proposed use adversely affect the present economic stability or future economic development of properties surrounding the area? The proposed use will not adversely affect the economic stability of the area, but will instead allow the restaurants to compete with other nearby restaurants that also offer banquet facility for special events and private parties. Moreover, the banquet use will allow the restaurants to remain economically viable and contribute to the overall success of the downtown area in which it is located, helping to decrease the number of vacant tenant spaces that may affect the economic viability of the site. 4. Will the proposed use comply with the regulations and conditions specified in Chapter 41 for such use? As conditioned, the proposed project will be in compliance with all applicable regulations and conditions imposed on a banquet hall. 5. Will the proposed use adversely affect the General Plan or any specific plan of the City? The proposed use will not adversely affect the General Plan. Policy 2.2 of the Land Use Element encourages land uses that accommodate the City's varied needs for goods and services. Restaurants that offer the potential for private parties and banquets provide an essential service for local patrons and regional visitors including the business community. Policy 2.9 of the Land Use Element supports developments that create a business environment that is safe and attractive. Policy 5.5 of the Land Use Element encourages development that is compatible with and supporting of surrounding land uses. The proposed McFadden Public Market will be located in a commercial corridor and is compatible with surrounding land uses. Restaurants with an ancillary alcohol license provide a dining service to the residents of Santa Ana. G. In accordance with the California Environmental Quality Act (CEQA) the recommended action is exempt from further review per Section 15061 (b)(3). This exemption allows the project to be exempt from CEQA where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Categorical Exemption Environmental Review No. 2017 -01 will be filed for this project. Section 2. The applicant agrees to indemnify, hold harmless, and defend the City of Santa Ana, its officials, officers, agents, and employees, from any and all liability, claims, actions or proceedings that may be brought arising out of its approval of this project, and any approvals associated with the project, including, without limitation, any environmental review or approval, except to the extent caused by the sole negligence of the City of Santa Ana. Resolution No. 2017 -05 31A-18 Page 5 of 9