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Conditional Use Permit for 81 W Main StMEETING DATE: 5/5/14 ITEM NO: COUNCIL AGENDA REPORT DATE: APRIL 9, 2014 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER SUBJECT: CONDITIONAL USE PERMIT APPLICATION U -14 -002. PROJECT LOCATION: 81 W. MAIN STREET. PROPERTY OWNER: VERMONT BUILDING, LLC /SUE FARWELL. APPLICANT: ANNA PIZZO. CONSIDER A REQUEST TO MODIFY A CONDITIONAL USE PERMIT TO INCREASE SEATING AND PROVIDE FULL ALCOHOLIC BEVERAGE SERVICE FOR A RESTAURANT (ZONA ROSA) ON PROPERTY ZONED C- 2:LHP. APN 529 -01 -025. PLANNING COMMISSION RECOMMENDATION: The Planning Commission recommended that the Town Council: 1. Make the required findings (Attachment 1) and approve Conditional Use Permit U -14 -002 with modifications as recommended by the Planning Commission (motion required); and 2. Adopt a Resolution of approval with recommended conditions for a Conditional Use Permit (CUP) to modify a Conditional Use Permit to increase seating and provide full alcoholic beverage service for a restaurant (Zona Rosa) on property zoned C -2:LHP (Attachment 2) (motion required). ALTERNATIVES: Instead of the aforementioned action, the Council may: Approve the application subject to modified or additional conditions of approval (motion required); or Continue the project to a date certain with specific direction (motion required); or PREPARED BY: SANDY L. BAILY Jd' Director of Community Development Reviewed by: Assistant Town Manager Oown Attorney Finance N:\DEV\rC REP0RTS\2014 \WMain81.dmx Reformatted: 5 /30102 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: 81 W. MAIN STREET/U -14 -002 April 9, 2014 Remand the project to the Planning Commission with specific direction (Attachment 3) (motion required); or Deny the application (Attachment 4) (motion required). BACKGROUND: The proposed project would occupy a commercial space previously occupied by a restaurant, MMoon Empanadas. The subject space is one of five commercial spaces located on the property. The current Alcoholic Beverage Policy (ABP) (Attachment 6) was adopted by the Town Council in September 2001. A map of nearby alcohol serving and selling establishments is attached as Exhibit 5 of Attachment 7. The purpose of the ABP is to provide parameters for alcoholic beverage service and direction through a General Policy and a Specific Policy. Staff analyzed the proposed Conditional Use Permit (CUP) against the ABP. When reviewing a Conditional Use Permit (CUP), the deciding and recommending bodies should consider the information in the applicant's business plan; however, the key consideration should be the explicit proposed use since the business plan can change from owner to owner. The explicit use may be, and is often, defined in the Recommended Conditions of Approval as a "use" condition. The CUP runs with the land, and the deciding and recommending bodies should review applications based on the explicit use, as opposed to the applicant or the applicant's business plan. DISCUSSION: A. Project Summa The applicant is requesting approval to modify the existing CUP to increase the number of seats and provide full alcoholic beverage service. The applicant is proposing to increase the seating from six seats to 26 seats. The current CUP does not permit alcoholic beverage service; the applicant is proposing full alcoholic beverage service. The current CUP allows operation between 6:00 a.m. and 11:00 p.m., seven days a week; the proposed hours of operation are 10:00 a.m. to 10:00 p.m., seven days a week. The applicant provided a written description (Exhibit 6 of Attachment 7) and development plans (Exhibit 7 of Attachment 7) describing the proposal. See Attachment 7 for a thorough description of the project. B. Planning Commission On March 26, 2014, the Planning Commission considered the subject application. See Attachment 10 for the Commission's full discussion. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: 81 W. MAIN STREET/U -14 -002 April 9, 2014 The Planning Commission recommended approval of the CUP. The Planning Commission recommendation included additional and modified conditions as follows (new wording is underlined and deleted wording is s efiii -e gk): USE: The approved use is a high turnover sit -down restaurant with full alcoholic beverage service. A standalone bar or counter is not permitted TRASH AND RECYCLING DISPOSAL HOURS: Trash and recycling from the business shall only be emptied between 9:00 a.m. and 9.00 p.m. to limit the noise impacts COMMUNITY BENEFIT: The applicant has offered the following community benefit to offset traffic impacts created by the proposed project: to be detemiine d a public bench. The community benefit shall be provided to the Town prior to issuance of building permits or commencement of operation, whichever occurs first. ELECTRONIC PAGERS: The applicant shall consider the use of electronic pagers for patrons waiting to be seated. CONCLUSION: The project would allow the modification of an existing CUP to expand seating and provide fall alcoholic beverage service for a new restaurant. As conditioned, the site has adequate parking to accommodate the existing and proposed uses. The proposed use would close by 10:00 p.m. The proposed application is in conformance with Town Code and is supported by the General Plan. The Alcoholic Beverage Policy gives the hearing body discretion to approve alcoholic beverage service when the proposal would not negatively affect residential neighbors, alcohol related incidents would not occur, and when the application would provide a positive impact to the commercial area. The Planning Commission believes this application meets the aforementioned parameters and recommended approval of the application subject to the new and modified condition discussed above. When reviewing a Conditional Use Permit (CUP), the deciding body should consider the information in the applicant's business plan; however, the key consideration should be the explicit proposed use since the business plan can change from owner to owner. The explicit use may be, and is often, defined in the recommended conditions of approval as a "use" condition. The CUP runs with the land, and the deciding body should review applications based on the explicit use as opposed to the applicant or the applicant's business plan. Additionally, if the deciding body believes there is merit, it can include, as a condition of approval, a requirement that the CUP be reevaluated within one year or six months from occupancy (i.e. the commencement of the use). If the Town Council finds merit to include such a condition, the deciding body may consider the following condition: PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: 81 W. MAIN STREET/U -14 -002 April 9, 2014 REVIEW: The Planning Commission shall review the application one year from final occupancy to ensure the conditions imposed are mitigating potential impacts and/or to ensure compliance. This review shall be noticed as a public hearing. ENVIRONMENTAL ASSESSMENT: The project is Categorically Exempt according to Section 15301 of CEQA as adopted by the Town, which exempts permitting an existing facility involving negligible use beyond the existing use. No significant effect on the environment will occur since the project uses an existing structure with no increase in floor area. FISCAL IMPACT: None. Attachments: 1. Required Findings 2. Resolution Approving the Conditional Use Permit (with Exhibit A) 3. Resolution Remanding the Conditional Use Permit to the Planning Commission 4. Resolution Denying the Conditional Use Permit 5. Recommended Conditions of Approval 6. Alcoholic Beverage Policy (with Exhibit A) 7. Report to the Planning Commission for the meeting of March 26, 2014 8. Desk Item to the Planning Commission for the meeting of March 26, 2014 9. Desk Item 2 to the Planning Commission for the meeting of March 26, 2014 10. Excerpt of the Planning Commission verbatim meeting minutes of March 26, 2014 11. Public comments received March 26, 2014, through 12:00 p.m., Thursday, May 1, 2014. Distribution: cc: Anna Pizzo, 1411 The Alameda, San Jose, CA 95126 Vermont Building, LLC /Sue Farwell, 113 Edelen Avenue, Los Gatos, CA 95030 SLB:JS:ct