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HomeMy WebLinkAboutRESO 2021-05_3503 S. HARBOR BLVD._Revised 2.23.21jmf 2/25/21 Resolution No. 2021-05 Page 1 of 8 RESOLUTION NO. 2021-05 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SANTA ANA APPROVING CONDITIONAL USE PERMIT NO. 2020-22 AS CONDITIONED TO EXPAND THE SALE OF ALCOHOLIC BEVERAGES FOR ON-PREMISE CONSUMPTION AT THE OBSERVATORY LOCATED AT 3503 SOUTH HARBOR BOULEVARD BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Planning Commission of the City of Santa Ana hereby finds, determines and declares as follows: A.Ryan Blank (“Applicant”), representing Live Nation Worldwide, Inc., the current operator of The Observatory, is requesting approval of Conditional Use Permit No. 2020-22 to expand the existing sale and on-premise consumption of alcoholic beverages outdoors, to a newly converted front patio, at the existing indoor concert and dinner facility at 3503 South Harbor Boulevard. B.Santa Ana Municipal Code (“SAMC”) Section 41-196 requires approval of a conditional use permit for establishments wishing to sell alcohol for on- premises consumption. C.On October 17, 1994, the Planning Commission approved Conditional Use Permit No. 1994-16 to allow an indoor concert and dinner facility in conjunction with an alcoholic beverages control (ABC) license for the sale of alcoholic beverages for on-premises consumption (Type 47 – Beer, Wine and Distilled Spirits) for the property located at 3503 South Harbor Boulevard. D.On February 22, 2021, the Planning Commission held a duly noticed public hearing on Conditional Use Permit No. 2020-22. E.The Planning Commission determines that the following findings, which must be established in order to grant this Conditional Use Permit pursuant to SAMC Section 41-638, have been established for Conditional Use Permit No. 2020-22 to allow the expanded sale of alcoholic beverages for on- premises consumption: 1.That the proposed use will provide a service or facility, which will contribute to the general well being of the neighborhood or community. The Observatory is an existing indoor concert and dinner facility with approval for indoor sales of alcoholic beverages for on- premises consumption (Type 47 – Beer, Wine and Distilled Spirits) at 3503 South Harbor Boulevard. The operator recently jmf 2/25/21 Resolution No. 2021-05 Page 2 of 8 converted a former outdoor service yard into a fully permitted front patio, which is currently in use for consumption of food and non-alcoholic beverages. Expansion of the ABC license for outdoor sales and consumption on the front patio will not change the nature of the operation of the venue. The front patio has been fully finished and remodeled and is currently used by patrons to enjoy food and non-alcohol beverages (when the venue is operating). Expansion will allow patrons to enjoy their alcoholic beverages with their food in a relaxed outdoor setting, which will include ambient music. This will also facilitate the operations of the venue making the customer experience more pleasing, continuing the sale of alcoholic beverages. The proposed expansion of the sale of alcoholic beverages for outdoor consumption at this location will provide an ancillary service to the restaurant’s customers by allowing them the ability to purchase beer, wine, and distilled spirits with their meal. This will thereby benefit the community by providing a restaurant with an additional and complementary food related amenity. Operational standards applicable to the alcoholic beverage control license will mitigate any potential impacts created by the use and ensure that the use will not negatively affect the surrounding community. 2. That the proposed use will not, under the circumstances of the particular case, be detrimental to the health, safety, or general welfare of persons residing or working in the vicinity. The proposed expansion of the sale of alcoholic beverages for on-premises consumption at this location will not be detrimental to the health, safety, or general welfare of persons residing or working in the vicinity because the operational standards applicable to the alcoholic beverage control license will address any potential negative or adverse impacts created by the use. In addition, the subject site is not located within immediate proximity to parks, playgrounds, schools, or religious institutions and the building is located approximately 1,800 feet away from the nearest multi-family residences and approximately 0.5-miles from the nearest single-family residences. Moreover, the front patio is currently used for consumption of food and non-alcoholic beverages and consumption of alcoholic beverages is permitted inside the premises. The Observatory is intended to be an indoor concert and dinner facility and the expansion of outdoor alcohol sales and on-premise consumption will be ancillary to the main use. All of the operational standards identified in SAMC Sec. 41-196 will apply to this establishment. Finally, the sale of alcohol at this venue is intended to be incidental to jmf 2/25/21 Resolution No. 2021-05 Page 3 of 8 the primary use as an indoor concert and dinner facility and will occur within the premises. 3. That the proposed use will not adversely affect the present economic stability or future economic development of properties surrounding the area. This venue has operated as an indoor concert and dinner facility at 3503 South Harbor Boulevard since 1994 under the names The Galaxy Concert Theatre and most recently under The Observatory (2011) and has included indoor sales of beer, wine, and distilled spirits for on-premise consumption. The proposed expansion will not adversely affect the economic stability of the area, but will instead allow the venue to compete with other nearby restaurants that offer a full selection of alcoholic beverages for sale to their customers. The venue employs approximately 100 people during normal operating times, with approximately 50-60 working on show nights and at special events. Expanding the licensed premises to include the patio will not increase the footprint of the venue and will not in any way negatively impact the current economic stability of the surrounding property. Conversely, expansion of the licensed premises to the patio will encourage more food consumption, which will increase total wages (and tips) paid to employees, thus aiding in economic stability in the area. 4. That the proposed use will comply with the regulations and conditions specified in Chapter 41 of the SAMC for such use. The proposed conditional use permit will be in compliance with all applicable regulations and operational standards imposed on a restaurant selling alcoholic beverages for on-premises consumption pursuant to Chapter 41 of the SAMC. The facility will be maintained as a full-service, bona-fide eating establishment, having suitable kitchen facilities and supplying an assortment of foods. Additionally, the restaurant will utilize less than five (5) percent of the gross floor area for display and storage of alcoholic beverages, which is the maximum threshold established by the Santa Ana Municipal Code. Operational standards will ensure the project remains in compliance with all applicable codes and regulations related to alcohol sales to ensure that the use does not impact neighboring properties or create an attractive nuisance. 5. That the proposed use will not adversely affect the General Plan of the city or any specific plan applicable to the area of the proposed use. The proposed sale of alcoholic beverages for on-premises consumption at this location will not adversely affect the jmf 2/25/21 Resolution No. 2021-05 Page 4 of 8 General Plan or any specific plan. The granting of this conditional use permit supports several policies contained in the General Plan. Policy 2.2 of the Land Use Element encourages land uses that accommodate the City’s needs for goods and services. Providing a variety of full-service venues that provide alcoholic beverages as part of their menu offers additional dining options for Santa Ana residents and visitors. Furthermore, Policy 2.9 of the Land Use Element supports developments that create a business environment that is safe and attractive. Operational standards for the proposed ABC license will maintain a safe and attractive environment in the neighborhood. Policy 5.5 of the Land Use Element encourages development that is compatible with and supporting of surrounding land uses. The Observatory is located within a professional office area and its operations will be compatible with the surrounding commercial businesses. Section 2. In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the recommended action is exempt from CEQA per Section 15301 – Class 1 (Existing Facilities). The request for a conditional use permit for a Type 47 alcoholic beverage control (ABC) license consists of the permitting or minor alteration of an existing private structure involving negligible or no expansion of the use beyond that existing at the time of the lead agency’s determination. The project proposes to expand the operation of an alcoholic beverage control license to sell alcoholic beverages at an existing indoor concert and dinner facility. Therefore, there is no reasonable possibility that the project will have a significant effect on the environment due to the facility having the necessary infrastructure to operate the proposed use, and minor expansion of the existing building is proposed. Based on this analysis, a Notice of Exemption, Environmental Review No. 2020-88 will be filed for this project. Section 3. The Applicant shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, referendum, and other proceedings (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively “Actions”), brought against the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve the legal counsel providing the City’s defense, and that Applicant shall reimburse the City 02-22-2021 jmf 2/25/21 Resolution No. 2021-05 Page 6 of 8 EXHIBIT A Conditions of Approval for Conditional Use Permit Nos. 2020-22 Conditional Use Permit No. 2020-22 to allow the outdoor expansion of the sale of alcoholic beverages for on-premise consumption is approved subject to compliance, to the reasonable satisfaction of the Planning Manager, with all applicable sections of the Santa Ana Municipal Code, the California Building Standards Code and all other applicable regulations. The Applicant must comply in full with each and every condition listed below prior to exercising the rights conferred by this conditional use permit. The Applicant must remain in compliance with all conditions listed below throughout the life of the conditional use permit. Failure to comply with each and every condition may result in the revocation of the conditional use permit. 1.The sales, service, and consumption of alcoholic beverages shall be permitted in accordance with the operational standards for on-sale establishments pursuant to Section 41-196(g) of the SAMC, in accordance with the provisions of an on - premises alcohol license by the California Department of Alcoholic Beverage Control (ABC), and in accordance with the site and floor plans attached to the staff report documenting the approved scope of the project. 2.The sales, service, and consumption of alcoholic beverages shall be limited from 8:00 a.m. and 2:00 a.m., Monday through Sunday. 3.All Conditions of Approval approved by the City of Santa Ana Planning Commission on October 17, 1994, for Conditional Use Permit No. 1994-16 shall remain in effect. 4.Any noise or music associated with the use of the outdoor patio shall be kept to ambient noise levels for purposes of providing a relaxed outdoor setting. At no time shall the ambient noise levels exceed the City of Santa Ana Noise Ordinance requirements. 5.Live entertainment or amplified musical performances shall not be permitted within any outdoor patio areas. Musical performances is are limited to acoustic music only. – Modified by Planning Commission on February 22, 2021. 6.Conditional Use Permit No. 2020-22 is subject to review by the Planning Division within one (1) year of its adoption date. Should there be a noticeable increase in the calls for Police Department and/or Code Enforcement service to the site, or complaints from the surrounding community, the City may reschedule the CUP for Planning Commission reconsideration and/or condition modification at the full expense of the property owner and Applicant. jmf 2/25/21 Resolution No. 2021-05 Page 7 of 8 7.Expansion of the outdoor sales and on -premise consumption of alcoholic beverages onto the outdoor patio shall not increase the maximum permitted occupancy for the concert venue. The use of the outdoor patio shall be ancillary to the primary concert venue, shall not operate independently, and shall be in full compliance with City of Santa Ana building permit number 101101767 . – Added by Planning Commission on February 22, 2021. 8.Within 90 days of approval of CUP No. 2020 -22, a Property Maintenance Agreement must be recorded against the property. The agreement will be subject to review and applicability by the Planning and Building Agency, the Community Development Agency, the Public Works Agency, and the City Attorney to ensure that the property and all improvements located thereupon are properly maintained, Applicant (and the owner of the property upon which the authorized use and/or authorized improvements are located if different from the Applicant) shall execute a maintenance agreement with the City of Santa Ana which shall be recorded against the property and which shall be in a form reasonably satisfactory to the City Attorney. The maintenance agreement shall contain covenants, conditions and restrictions relating to the following: (a) Compliance with operational conditions applicable during any period(s) of construction or major repair (e.g., proper screening and securing of the construction site; implementation of proper erosion control, dust control and noise mitigation measure; adherence to approved project phasing etc.); (b) Compliance with ongoing operational conditions, requirements and restrictions, as applicable (including but not limited to hours of operation, security requirements, the proper storage and disposal of trash and debris, enforcement of the parking management plan, and/or restrictions on certain uses); (c) Ongoing compliance with approved design and construction parameters, signage parameters and restrictions as well as landscape designs, as applicable; (d) Ongoing maintenance, repair and upkeep of the property and all improvements located thereupon (including but not limited to controls on the proliferation of trash and debris about and immediately adjacent to the property; the proper and timely removal of graffiti; the timely maintenance, repair and upkeep of damaged, vandalized and/or weathered buildings, structures and/or improvements; the timely maintenance, repair and upkeep of exterior paint, parking striping, lighting and irrigation fixtures, walls and fencing, publicly accessible bathrooms and bathroom fixtures, landscaping and related landscape improvements and the like, as applicable); (e) If Applicant and the owner of the property are different (e.g., if the Applicant is a tenant or licensee of the property or any portion thereof), both the Applicant and the owner of the property shall be signatories to the maintenance agreement and both shall be jointly and severally liable for compliance with its terms. jmf 2/25/21 Resolution No. 2021-05 Page 8 of 8 (f) The maintenance agreement shall further provide that any party responsible for complying with its terms shall not assign its ownership interest in the property or any interest in any lease, sublease, license or sublicense, unless the prospective assignee agrees in writing to assume all of the duties, obligations and responsibilities set forth under the maintenance agreement. (g) The maintenance agreement shall contain provisions relating to the enforcement of its conditions by the City and shall also contain provisions authorizing the City to recover costs and expenses which the City may incur arising out of any enforcement and/or remediation efforts which the City may undertake in order to cure any deficiency in maintenance, repair or upkeep or to enforce any restrictions or conditions upon the use of the property. The maintenance agreement shall further provide that any unreimbursed costs and/or expenses incurred by the City to cure a deficiency in maintenance or to enforce use restrictions shall become a lien upon the property in an amount equivalent to the actual costs and/or expense incurred by the City. (h) The execution and recordation of the maintenance agreement shall be a condition precedent to the issuance of final approval for any construction permit related to this entitlement.