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Home My WebLink About31B - CUP - 120 W 5TH STREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: APRIL 18, 2017 TITLE: CONDITIONAL USE PERMIT NO. 2017 -09 TO ALLOW THE SALE OF ALCOHOLIC BEVERAGES FOR ON- PREMISE CONSUMPTION AT ESPORTS CAFE LOCATED AT 120 WEST FIFTH STREET - TYLER ENDRES, APPLICANT (STRATEGIC PLAN NO. 3, 2, 4) CITJ MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: F11i0i]7OF-1 ❑ As Recommended ❑ As Amended ❑ Ordinance on 16' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Receive and file the staff report approving Conditional Use Permit No. 2017 -09 as conditioned. PLANNING COMMISSION ACTION At its regular meeting on March 27, 2017, by a vote of 6:0 (Alderete absent), the Planning Commission adopted a resolution approving Conditional Use Permit No. 2017 -09 which approved the sale of alcoholic beverages for on- premise consumption at eSports Cafe located at 120 West Fifth Street located in the Transit Zoning Code /Specific Development (SD -84) zoning district. The Planning Commission added a condition to require that hot foods be available for purchase at all times alcohol is offered for sale to patrons (Exhibit A). DISCUSSION The applicant proposes to construct a 440 - square -foot cafe that will operate as a bona -fide eating establishment within the existing footprint of the eSports Arena. The cafe and the availability of hot foods for purchase would allow the applicant to sell alcoholic beverages for on- premise consumption. The alcoholic beverages will be stored within a walk -in cooler at the back of the restaurant within the kitchen area, as well as at a front service counter (bar) and will consist of less than five percent of the floor area. No other construction, expansion of square footage, or outdoor component is proposed at this time. Full -sized site plans are available for public viewing in the Clerk of the Council Office. 31 B -1 Conditional Use Permit No. 2017 -09 — eSports Cafe at 120 West Fifth Street April 18, 2017 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, Objectives #2 (create new opportunities for business /job growth and encourage private development through new General Plan and Zoning Ordinance policies) and Objective #4 (continue to pursue objectives that shape downtown Santa Ana into a thriving, culturally diverse, shopping, dining and entertainment destination). FISCAL IMPACT There is no fiscal impact associated with this action. Hassan Hagha i, AI Executive Director Planning & Building Agency AP: rb ap \reports \Staff Reports for PC \CUP 17 -09 eSports Cafe ABC.cc Exhibit: A. Planning Commission Staff Report 31 B -2 REQUEST FOR Planning Commission Action PLANNING COMMISSION MEETING DATE: MARCH 27, 2017 TITLE: PUBLIC HEARING — FILED BY TYLER ENDRES FOR CONDITIONAL USE PERMIT NO. 2017-09 TO ALLOW THE SALE OF ALCOHOLIC BEVERAGES FOR ON- PREMISE CONSUMPTION AT ESPORTS CAFE LOCATED AT 120 WEST FIFTH STREET (STRATEGIC PLAN NO. 3, 2) Prepared by Ali Pezeshkpour_ PLANNING COMMISSION SECRETARY APPROVED • As Recommended • As Amended • Set Public Hearing For DENIED Zoning Designation • Applicant's Request • Staff Recommendation CONTINUED TO Executive Director J Planning Manager RECOMMENDED ACTION Adopt a resolution approving Conditional Use Permit No. 2017 -09. Executive Sumrnary Tyler Endres, representing eSports Cafe, is requesting approval of a conditional use permit (CUP) to allow the sale of alcoholic beverages for on- premise consumption at the eSports Arena, an existing indoor commercial recreation facility with a cafe proposed inside. Staff is recommending approval of the applicant's request due to the site's location away from sensitive land uses, the operator's history of compliance with the City codes, and consistency with similar indoor commercial recreation venues that offer food and ancillary on -site alcoholic beverage sales to customers. Table 1: Project and Location Information ltelrt Information Project Address 120 West Fifth Street Nearest Intersection Fifth and Sycamore streets General Plan Designation District Center (DC) Zoning Designation Specific Development (SD) No. 84 — Downtown land use district Surrounding Land Uses North Commercial East Parking structure South _ Commercial West Commercial Property Size 12,277 square feet 0.28 acres Existing Site Development The site contains the historic Ramona Building, a 35,000 - square foot structure of which the majority of floor area is occupied by the eSports Arena and administrative offices. Use Permissions Restaurant use is allowed by right; alcohol sales are allowed with a removal of conditional use permit (CUP) _ Zoning Code Sections Affected Uses I SAMC Section 41 -2007 O erational Standards I SAMC Section 41 -196 g) EXHIBIT A 31 B -3 Conditional Use Permit No. 2017 -09 March 27, 2017 Page 2 Project Description The applicant proposes to construct a 440 - square -foot cafe that will operate as a bona -fide eating establishment within the existing footprint of the eSports Arena. The proposed alcoholic beverages will be stored within a walk -in cooler at the back of the restaurant within the kitchen area, as well as at a front service counter (bar) and will consist of less than five percent of the floor area. No other construction, expansion of square footage, or outdoor component is proposed at this time. Table 2: Operational Standards 11W60 C5 Z,. ,, , Re oared qy SAMC: Provided_ . Eating Establishment Type Bona -Fide Complies Hours of Operation for ABC 8:00 am to 12:00 am CUP No. 2014 -11 allows operation of Sales the venue until 2:00 a.m. on select evenings. Alcoholic beverage sales will comply with the City's regulations that limit sales from 8:00 a.m. to 12:00 a.m. (midnight) Window Display 25% of Window Coverage Complies Live Entertainment Entertainment Permit No Entertainment Proposed Alcohol Storage and Dis la 5% of G.F.A. 3.9% of G.F.A. Exterior ele hone Prohibited None . ' :. The Ramona Building, constructed in 1922, currently contains the eSports Arena and several administrative offices. Following approval of CUP Nos. 2014 -11 and 2014 -12, the eSports Arena opened in late 2015. The facility currently operates as a computer gaming facility and arena for special events, and has two configurations: "game day" and "event day." During "event day" configurations, the interior of the facility is changed to function as a spectator venue in which patrons view live- action computer games and other forms of "e- gaming." Following its success as North America's first dedicated e- gaming venue, eSports Arena embarked on plans to expand services to its patrons. eSports Arena intends to construct a small cafe with a variety of hot and cold foods and snacks. As an ancillary component to its food sales, the facility is proposing to sell beer and wine through a Type 41 Alcoholic Beverage Control (ABC) license. The cafe will provide occupancy for 50 patrons while the existing eSports Arena will maintain its existing maximum occupancy of 880. Similar to Round 1 in Santa Ana and other indoor commercial recreation facilities such as bowling alleys, eSports Arena would allow customers to purchase food and beer and wine from the cafe and consume the products within the entire facility. 31 B -4 Conditional Use Permit No. 2017 -09 March 27, 2017 Page 3 Protect Analvsis 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. Staff has prepared the following analysis, which in turn forms the basis for the recommendation contained in this report. The purpose of regulating establishments that sell alcoholic beverages is to set forth operating practices and procedures, and to minimize impacts to surrounding areas. Staff has reviewed the applicant's request to obtain the on -sale ABC license. Since the proposed ABC license is intended to provide an added amenity to the facility and the sale of alcoholic beverages will be ancillary to the primary uses on site, staff recommends approval of the proposed CUP. The proposed sale of alcoholic beverages for on- premise consumption will not be detrimental to the health, safety, and welfare of the community. eSports Arena is located in a commercial district with commercial and public uses nearby. Since opening in late 2015, the site has operated in compliance with City codes and regulations and has established itself as a business that provides a novel and niche service to the community and visitors of the City. The proposed cafe and alcoholic beverage service will enhance the economic viability of the area and create a more attractive entertainment and dining opportunity for visitors and residents in the community. Moreover, eSports Arena will operate similar to Round 1 at MainPlace and other indoor commercial recreation venues. Like Round 1, which was approved for indoor commercial recreation and on- premise alcoholic beverage sales in 2014, eSports Arena will contain an onsite cafe with alcoholic beverage sales at which patrons may purchase food and drinks for consumption throughout the premises. On event day configurations, the sale of alcoholic beverages with food will allow eSports Arena to function similar to other sports arenas such as the Angel Stadium and the Honda Center that offer food and alcohol to patrons who attend sporting events. eSports Arena is located away from sensitive land uses such as residences, schools, and parks, and the proposed cafe will operate in compliance with all applicable regulations and standards imposed on a bona fide public eating establishment pursuant to Chapter 41 of the SAMC. Finally, the proposed CUP will be consistent with several goals and policies of the General Plan, including Goal 2 of the Land Use Element, which encourages land uses that enhance the City's economic and fiscal viability. eSports proposes to provide an additional amenity as part of the facility's operations by serving alcoholic beverages to guests and residents of the City. 31 B -5 Conditional Use Permit No. 2017 -09 March 27, 2017 Page 4 Table 3: Police Department Analysis and Criteria for Recommendation Police Department Analysis and Gnteria for Redommend" itian Police Grid No. and Police Grid No. 165; ranked 1 out of 103 Police Reporting 1" p g Grids { percentile) Rank Threshold for High This reporting district is above the 20 percent threshold established by the State Crime for high crime Police Department The Police Department contends that the operational standards applicable to Recommendation on- premise ABC licenses will mitigate any potential Impacts to the surrounding community and therefore does not oppose the granting of a CUP. The Police Department reviews conditional use permit applications for the sale and service of alcoholic beverages in order to ensure that the potential crime and nuisance behaviors associated with alcohol consumption are mitigated to the greatest extent possible. For on -sale licenses, the Police Department analyzes the crime rate in the area using the standards and definitions contained in the Business and Professions Code Section 23948.4(c)(2), which also are utilized by the State Department of Alcoholic Beverage Control (ABC). This section defines "reported crimes" as criminal homicide, forcible rape, robbery, aggravated assault, burglary, larceny theft, and motor vehicle theft, combined with all arrests for other crimes, both felonies and misdemeanors, except traffic citations. The Police Department then compares the number of such crimes in the reporting district as compared to the number of crimes in other reporting districts. In keeping with the standard used by the State ABC and Business and Professions Code, should the Police Department determine that the reporting district has a 20 percent greater number of reported crimes than the average number found in all reporting districts, the Police Department will consider this information in making its recommendation. Table 4: CEQA. Strategic Plan Alignment and Public Notification & Community Outreach CEQA, Strategic Plan Alignment „and Public Notification & Community Outreach CEQ_A CEQA Type General Rule Section 15061 b 3 Reasons) This exemption applies to projects where it can be seen with certainty that there is Exempt or Analysis no possibility that the activity in question may have a significant effect on the environment. This is an existing eating establishment and no significant alterations are bemg,proposed at this time. Strategic Plan Alignment Goal(s) and Approval of this item supports the City's efforts to meet Goal No.3 (Economic Policy($) Development) Objective No. 2 of creating new opportunities for business /job growth and encourage private development through new General Plan and Zoning Ordinance policies. MEW Conditional Use Permit No. 2017 -09 March 27, 2017 Page 5 t'ubtic Notification & Community Outreach Required Measures A public noticed was posted on the project site on March 17, 2017. Notification by mail was mailed to all property owners and occupants within 500 feet of the project site on March 17, 2017. Newspaper posting was published in the Orange County Reporter on March 17, 2017. The Downtown Neighborhood Association was contacted by phone on March 9, Additional Measures 2017 to identify any areas of concern. At the time this report was printed, no issues of concern were raised re ardinc this application. Based on the analysis provided within this report, staff recommends that the Planning Commission approve Conditional Use Permit No. 2017.09. Ali Pezeshkpour, AICP Senior Planner AP:jm ap \reports \Staff Reports for PC \CUP17 -09 e5porls Cafe ABC, pc Attachments: Exhibit 1 — General Vicinity Map Exhibit 2 — Existing Land Use Map Exhibit 3 — Site Photo Exhibit 4 — Site Plan Exhibit 5 — Floor Plan Exhibit 6 -- Floor Plan Detail 31 B -7 SEVENTEENTH ! Cl Cs tin Rl At El -IF A All r ST. SP -3 vaa7183na Spa R0141 RI RI pnt R2 xon.I W E, m R, Still 'SP-3 3 1 SP-3 I,.,, rs 1 7 RI R Rl SP-3 CD sm S11.3 �kl� R2 112 E, srl SD. 75 Rp P SEE 2 RE RI R1 at reo all P p P P sp.3 5P.3 SP -3 SP-3 FICA GC u NZ UN2 El pp t'! GI VA UN2 DT GC ■ �M_xc __ oT 189191 UC UN2 N2 ut DT UN2 UN2 DT DT D'f I 6 ilmus tic Em DT .1 E: ROJE bD!Ll E�Tuu N, ��-ke SO 13 SD.2 LJ f 1 1) 1 1 11 DT 1 1E T DT UNI LAC 1 Of CDR I r-Im r---1 i-1 I Tr If rI r--1 St. FlR At GENERAL AGRIOULTURALt OF DOWNTOWN R2 TWO FAMILY RESIDENCE -R PARKING MODIFICATION F FLOORAREAIAM AS MULTIPLE-FAMIURESIOENCE C.W COMMEROM SOUTH MAIN GC GOVERNMENT CENTER RA SUBURBAN APARTMENTS Cl COMMUNITY COMMERCIAL All LIGHTINDUSTRIAL HE RESIDENUALESTATE CHMD COMM. COMMERCIMUMUSEUM DISTRICT M2 HEAWINDUSTRIAL SO SPECIFIC DEVELOPMENT C2 GENDRALCOMIMERCIAL 0 ONE[SPACE SIP 5PECFICPUN C4 PUNNED SHOPPING CENTER P PROFESSIONAL TV ITANSIRVILLAG12 C5 ARTERIALCOMMERCIAL PRO PUNNED RESIDENTIAL DEVELOPMENT uc URBAN CENTER CDR CORRIDOR 11 SINGLE FAMILY RESIDENCE UN-1 URBAN NEIGHBORHOOD I CA COMMERCIAL RESIDENTIAL UN-2 URBAN NEIGHBORHOOD I CUP 2017-09 ESPORTS ARENA ON-PREMISE ABC _ 120 WEST FIFTH STREET 500 Fe=7 1" = 1000 FEET P L A N N I N G A N D B U I L D I N G A G E N 0 Y EXHIBIT I VICINITY MAP Maw: COURTHOUSE �� L� SANTA ANA BOULEVARD COMM. w < ¢ w w v u m w COMMERCIAL I- w H COMM RCIAL PARKING ^ 2 ,n GARAGE O 0 5TH STREET COMM. >- w ¢ m GOVERNMENT a ER COMM CIAL Q Q C) V C M, m >- m Ln 4TH STREET 0 MER AL COMMERCIAL io iAL ONiME I Z R PARKING d F7,, I AL GARAGE O :2 V 3RD STREET CUP 2017 -09 ESPORTS ARENA ON- PREMISE ABC 120 WEST FIFTH STREET P L A N N I N G A N U B U I L D I N G A G E N C Y LAND USE MAP EXHIBIT 2 31 B -9 ,R�tOJEGT `51TE F} CUP 2017 -09 ESPORTS ARENA ON- PREMISE ABC 120 WEST FIFTH STREET P L A N N I N G A N U B U I L D I N G A G E N C Y LAND USE MAP EXHIBIT 2 31 B -9 - � v: ` � � 2 ®� ^ , , � § ,� : ~��\ � .�� » a � ° 2.�/ /�� < � ^��y :& � ,«( §§ \L§.y� ��> \ � /�� _ - � � � � \:. ° ��/ . � � � � . �� y� � \. ��\ , _� � 2 . � � d<° � . \ �� : � � < -� � � �� % � ..\ � ry�� -� \: >� . .y �` \ :� \ � \ } �� G# _,mmrmJ.�E \ ' .�( _ma_)� \ {. e E +VO s1a \ a , r] §•� ƒ § � B � 31 B.11 A 11h, C? VN3UV SDAOdS 3 3AI la VN 91 NI 11h, C? m EXHIBIT 6 31 B -13 I LS 3.27.17 RESOLUTION NO. 2017 -12 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SANTA ANA APPROVING CONDITIONAL USE PERMIT NO. 2017 -09, AS CONDITIONED, TO ALLOW THE SALE OF ALCOHOLIC BEVERAGES FOR ON- PREMISE CONSUMPTION AT ESPORTS CAFE LOCATED AT 120 WEST FIFTH STREET 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. Applicant is requesting approval of Conditional Use Permit No. 2017 -09 to allow the sale of alcoholic beverages for on- premise consumption for the property located at 120 West Fifth Street. B. Santa Ana Municipal Code Section 41 -2007 (Table 2A) requires a conditional use permit for the sale or consumption of alcoholic beverages. C. On March 27, 2017, the Planning Commission held a duly noticed public hearing on Conditional Use Permit No. 2017 -09. D. The Planning Commission determines that the following findings, which must be established in order to grant this Conditional Use Permit pursuant to Santa Ana Municipal Code (SAMC) Section 41 -638, have been established for Conditional Use Permit No. 2017 -09 to allow for sale of alcoholic beverages for on- premise consumption: 1. That the proposed use will provide a service or facility which will contribute to the general well being of the neighborhood or the community. The proposed sale of alcoholic beverages for on- premise consumption at this location will provide an ancillary service to eSports Arena and its patrons by allowing them the ability to purchase a variety of food and alcoholic beverages at the entertainment venue. This will thereby benefit the community by providing a full- service entertainment and recreation facility with an additional and complementary food - related amenity. Standards are applicable to the alcoholic beverage control license and the proposed on -site cafe which will address any potential impacts created by the Resolution No. 2017 -12 Page 1 of 5 31B-14 sale of alcoholic beverages and ensure that the uses will not negatively affect the surrounding community. 2. That the proposed use under the circumstances of the particular case will not be detrimental to the health, safety, or general welfare of persons residing or working in the vicinity. The proposed sale of alcoholic beverages for on- premise consumption at this location will not be detrimental to persons residing or working in the vicinity because operational standards applicable to the alcoholic beverage control license will address any potential negative or adverse impacts created by the use. The subject facility operates primarily as a computer gaming facility and spectator arena with the sale of alcoholic beverages for on -site consumption at the proposed cafe as an added amenity. The addition of alcohol will be ancillary to the main uses on site. Moreover, the site's location away from sensitive land uses reduces any potential impacts to others in the vicinity. Finally, the sale of alcohol at the cafe is intended to be incidental to the primary use as an eating establishment 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. The proposed use will not adversely affect the economic stability of the area, but will instead allow eSports Arena to enhance its services to its customers, similar to other indoor commercial recreation facilities in Santa Ana and surrounding communities. Offering alcoholic beverages will allow eSports Arena to remain economically viable and compete with other indoor commercial recreation venues in the vicinity and contribute to the overall success of the City of Santa Ana. 4. That the proposed use shall comply with the regulations and conditions specified in Chapter 41 for such use. The proposed project will be in compliance with all applicable regulations and conditions imposed on an eating establishment selling alcoholic beverages for on- premise consumption pursuant to Chapter 41 of the Santa Ana Municipal Code. The facility will contain a full - service, bona - fide eating establishment, having suitable kitchen facilities and supplying an assortment of foods commonly ordered at various hours of the day. Additionally, the cafe will utilize less than five (5) percent of the gross floor area for the display and Resolution No. 2017 -12 Page 2 of 5 31 B -15 storage of alcoholic beverages, which is the maximum threshold established by the Santa Ana Municipal Code. 5. That the proposed use will not adversely affect the General Plan or any specific plan of the City. The proposed sale of alcoholic beverage for on- premise consumption at this location will not adversely affect the General 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 recreation venues such as arenas, gaming facilities, bowling alleys, and the subject facility that feature alcoholic beverages with food offers additional entertainment options for Santa Ana residents and visitors. Finally, Policy 5.5 of the Land Use Element encourages development that is compatible with and supporting of surrounding land uses. eSports arena is located in a commercial area and its operation will be compatible with the surrounding commercial businesses. E. In accordance with the California Environmental Quality Act (CEQA) the recommended action is exempt from CEQA per Section 15061(b)(3). This exemption applies to projects 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. The project proposes to allow the on- premise sale of alcoholic beverages at an eating establishment proposed within an indoor recreation use. It has been found by the City that the use will not create any adverse impacts such as noise, traffic, or safety concerns. The cumulative impact of this project will not be significant as the use will be complementary with the nearby commercial uses in the area. 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. Categorical Exemption Environmental Review No. 2017 -11 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. Section 3. The Planning Commission of the City of Santa Ana after conducting the public hearing hereby approves Conditional Use Permit No. 2017 -09 as conditioned Resolution No. 2017 -12 Page 3 of 5 31 B -16 in Exhibit "A" attached hereto and incorporated herein. This decision evidence submitted at the abovesaid hearing, which includes, but is Request for Planning Commission Action dated March 27, 2017, an d thereto; and the public testimony, all of which are incorporated herein ADOPTED this 27th day of March, 2017 by the following vote: is based upon the not limited to: the exhibits attached by this reference. AYES: Commissioners: BACERRA, CONTRERAS -LEO, MCCLOUGHLIN, MENDOZA, NGUYEN, VERINO (6) NOES: Commissioners: ABSENT: Commissioners: ALDERETE (1) ABSTENTIONS: Commissioners: Lynnette Verino Chairperson APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney Bv: Lisa Storck Assistant City Attorney CERTIFICATE OF ATTESTATION AND ORIGINALITY I, SARAH BERNAL, Commission Secretary, do hereby attest to and certify the attached Resolution No. 2017 -12 to be the original resolution adopted by the Planning Commission of the City of Santa Ana on March 27, 2017. Date: Commission Secretary City of Santa Ana 31 B -17 Resolution No. 2017 -12 Page 4 of 5 EXHIBIT A Conditions for Approval Conditional Use Permit No. 2017 -09 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 Administrative Code, the California Building Standards Code and all other applicable regulations. The applicant must comply in full with each and every condition listed below rip or to exercising the rights conferred by this site plan review approval. The applicant must remain in compliance with all conditions listed below throughout the life of the site plan review approval. Failure to comply with each and every condition may result in the revocation of the site plan review approval. A. Planning Division Hot foods shall be available for purchase at all times during which alcohol is offered for sale to patrons. Resolution No. 2017 -12 Page 5 of 5 31 B -18