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Desk Item #10MEETING DATE: 8/19/13 ITEM NO: 10 DESK ITEM COUNCIL AGENDA REPORT DATE: AUGUST 19, 2013 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER SUBJECT: CONDITIONAL USE PERMIT APPLICATION U -13 -014. PROJECT LOCATION: 16212 LOS GATOS BOULEVARD. PROPERTY OWNER: 16212 LOS GATOS BOULEVARD LLC. APPLICANTS: JOSEPH PRANG AND CHRISTINE TRAN. CONSIDER A REQUEST OF APPROVAL TO OPERATE A RETAIL WINE, BEER, AND DISTILLED SPIRITS SHOP WITH SCHEDULED TASTINGS ON PROPERTY ZONED CH. 523 -06 -010 AND -011. DISCUSSION: Staff received several questions from Councilmembers regarding 1) the definition of the use and how it differs from a liquor store, 2) how the tastings would differ from a bar, 3) how many tastings are permitted, 4) what type of notification will the neighbors receive of the scheduled tastings, and 5) amplification of inside and outside music. In addition, the applicant submitted a letter addressing some of the concerns raised by the Planning Commission (Attachment 8). 1) While the application process and ABC license are the same for a liquor store and a retail wine, beer, and spirits shop, the main difference would be the hours of operation and the type of merchandise they would sell. While technically a liquor store could operate under the same CUP, for most, the hours of operation proposed for the subject CUP would be too restrictive. 2) While the current conditions of approval do not contain a maximum number of pours per patron (past CUP tasting approvals have not limited the number), the condition could be modified to restrict the total number. Only a selection of items will be available for tasting, a client would not be able to request a different item for tasting that is not part of the tasting. The Council could choose to regulate the number of pours or total amount served. The applicant has stated that a maximum of 10 oz. per patron would be sufficient for their operation if necessary. PREPARED BY: Sandy L. Baily, Director of Community Development Cd Reviewed by: M Assistant Town Manag Town Attorney Finance N: \DEV \TC REPORTS \2013\LGB 16212- desk.doex Reformatted: 5/30/02 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: 16212 Los Gatos Boulevard /U -13 -014 August 19, 2013 3) The Conditions of Approval do not currently limit the number of tasting events. The Plamling Commission discussed regulating the number of outdoor tastings and asked the applicant to address this potential limitation prior to the Town Council meeting. The applicant is proposing a maximum of 15 outdoor tastings a month. The Planning Commission did not discuss limitations for indoor tastings or total number of tasting events. The Council could condition the application regarding, indoor, outdoor, and or total number of tasting events if desired. 4) Staff recommends the applicant notify the occupants of the adjacent residences by mail. In order to better address questions 2, 3, and 4; condition 6 regarding the tasting events could be modified as follows: TASTING EVENTS /TIMES: Tastings shall be offered during the hours of 1:00 p.m. to 8:00 p.m. for a niaximurn of 3 hours a day, and only during operating hours listed above. No more than 15 outdoor tasting events are permitted per month. A list of provided beverages shall be established prior to the event, and tastings shall be restricted to this list. The tastings shall be controlled two ounce pours for beer and wine and '/4 ounce pours for distilled spirits. Each patron shall be limited to no more than ten ounces of beer and or wine, or two ounces of distilled spirits. Water shall be provided at no charge during all tasting events. The tasting events shall comply with maximum occupancy as set by the Santa Clara County Fire Marshall. The applicant shall notify immediately adjacent residential neighbors on Shannon Road and Magneson Loop of upcoming outdoor tasting events ten days prior to the event(s) and shall include a local phone number to call if an issue arises during an event. 5) The applicant stated that no permanent amplification would be installed but that a portable device such as an iPod dock may be used for ambiance. The site would be limited to the noise requirements within the Town's Noise Ordinance. The following condition could be added for further clarification: MUSIC: No live music is permitted. Permanent amplification is not permitted in the outdoor patio area. The maximum decibel level permitted during tasting hours is 64 Dbl. as established by the Town's Noise Ordinance. ABC LICENSES There has been some discussion by Councilmembers and Town staff regarding the types of ABC licenses that the applicant would apply for. At this time, the applicant is looking to apply for: - Type 20 (beer and wine only) or type 21 (beer, wine, and distilled spirits) for the offsite retail sales. The type of license will depend on availability with ABC; - Type 42 (beer and wine only) or type 48 (beer, wine, and distilled spirits) for onsite service. The type of license will depend on availability with ABC. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: 16212 Los Gatos Boulevard /U -13 -014 August 19, 2013 The combination of an onsite service /sales and offsite sales licenses is standard for most retail sales with tasting operations in the region. ABC created a new type of license in 2011 for instructional tastings (type 86). This type of license was created for large retail operators such as grocery stores to provide very limited tastings. The applicant recently discovered that this type of license would be not applicable to this type of operation. The applicant can speak. further in regards to this as well as the availability of certain ABC licenses. The Town does not include regulations on type of ABC license since these can change without the Town's knowledge. In the event of conflicting limitations between the CUP from the Town and ABC, the more restrictive limitation always applies. CONDITIONAL USE PERMITS 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. Attachments 1 -7 (previously received with staff report): 1. Required Findings 2. Resolution Approving the Conditional Use Permit 3. Resolution Denying the Conditional Use Permit 4. Recommended Conditions of Approval 5. Staff Report to the Planning Commission for the meeting of July 24, 2013 6. Desk Item to the Planning Commission for the meeting of July 24, 2013 7. Verbatim Minutes from the July 24, 2013, Planning Commission hearing. Attachment 8 (received with Desk Ttem 8. Response letter from applicant SLB:MM:ct N: \DEV \TC REPORTS \2013\1,GB16212- desk.doex THIS PAGE INTENTIONALLY' LEFT BI- JANK Joseph Prang 100 Sund Ave Los Gatos CA 95030 Aug 8, 2 013 E C E AUCI 1 Q' 20113 TOWN OF LOS GATOS PLANNING DIVISIOIN To: Los Gatos Planning Dept Subject: Responses from Public Meeting on CUP Application regarding Artisan Wine Depot Los Gatos at 16212 Los Gatos Blvd 1. Subject: Outdoor tasting area gate design suggestion. We have reviewed the design per the recommendation to make it more "Craftsman" style and agree to make that change in a style similar to the craftsman style gates shown below (only in white or color matching building exterior): ATTACHMENT 8 2. Subject: Exterior Lighting. We reiterate that there are no changes or additions planned to the existing exterior lighting on the property. We also re- confirm that all exterior lighting is timer controlled and can be turned off 1 hour after closing. 3. Subject. Outdoor tasting area schedule: We reiterate our plan to use the cordoned off area indicated in the CUP for tastings. After considering feedback from Planning Commissioners, we propose limiting the outdoor tasting to no more than 15 per month. This is consistent with our current practice and that of our competitors to allow us to drive enough business to be successful & generate our revenue and significant tax revenue. We appreciate your consideration of these matters, Joseph Prang Christine Tran Managers Artisan Wine Depot