HomeMy WebLinkAboutItem 3 - APPL-1135-2017 (583 Marsh) Appeal of Admin Hearing Officer decision on Escape RoomMeeting Date: December 20, 2017
Item Number: 3
2X
PLANNING COMMISSION AGENDA REPORT
SUBJECT: Review of an appeal of the Administrative Hearing Officer’s decision to approve a use
permit for an “Escape Room” business, a commercial recreation facility – indoor use, with conditions
limiting hours of operation and requiring a review of the use permit six months after occupancy of the
business, in the Downtown Commercial zone with a Mixed Use overlay.
PROJECT ADDRESS: 583 Marsh Street BY: Kyle Van Leeuwen, Planning Technician
Phone Number: (805) 781-7091
E-mail: kvanleeuwen@slocity.org
FILE NUMBER: APPL-1135-2017 FROM: Tyler Corey, Principal Planner
RECOMMENDATION: Adopt the Draft Resolution (Attachment 1) denying the appeal and upholding
the Administrative Hearing Officer’s decision to approve the Use Permit with conditions limiting hours
of operation and requiring a review of the use permit six months after occupancy of the business.
SITE DATA
Applicant BCR Developments
Property Owner Javad Sani, Sarfar Properties LLC
Appeal Date October 19, 2017
General Plan General Retail
Zoning Downtown Commercial (C-D-MU)
Mixed Use Overlay
Site Area ~1,900 square feet
Environmental
Status
Categorically exempt from
environmental review under CEQA
Guidelines section 15301 (Existing
Facilities)
Background
On, August 31, 2017, the applicant, BCR Developments, requested an Administrative Use Permit for an
“escape room1” business in a tenant space in the Marsh Street Commons Development located at 583
Marsh Street. This type of business is classified as a commercial recreation facility-indoor use. Zoning
Regulations section 17.22 (Table 9) allows for this use within the C-D zone with the approval of an
Administrative Use Permit. This tenant space is also located within a mixed-use development. Zoning
Regulations section 17.08.072 (Mixed Use Projects) requires a Director’s approval when a commercial
component of a mixed-use project will operate outside the hours of 8:00 a.m. to 6:00 p.m., to ensure that
the commercial use will not negatively impact the residential uses. The applicants original request was
1 An escape room game is one in which a group of participants (typically 4 to 10) have a limited amount of time
(usually one hour) to solve a series of puzzles of various types that provide clues leading the solution of a final
puzzle for “unlocking” the door of the room.
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APPL-1135-2017
583 Marsh Street
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for operating hours that would go until 10 p.m., Sunday through Thursday, and 11:30 p.m. on Friday and
Saturday.
On October 9, 2017, the Administrative Hearing Officer approved the use permit to allow an “Escape
Room” business. Leading up to the hearing, the City received emails from four residents of the
development expressing concerns about the proposed business, three other residents attended the hearing
to voice their concerns as well. These concerns primarily centered on noise the business would create
and the hours of operation. The Administrative Use Permit included Condition #3, which limits the hours
of operation to between 8 a.m. and 8 p.m. Sunday through Thursday, and between 8 a.m. and 10 p.m.
Friday and Saturday. This condition is intended to address potential noise impacts to the existing
residents living above and adjacent to the commercial tenant space. The Administrative Use Permit also
included Condition #6, which required the use permit to be reviewed by the Hearing Officer six months
from the date of occupancy of the business to ensure the conditions of the use permit appropriately
addressed the impacts and are not unnecessarily onerous. (Attachment 4, Administrative Hearing Staff
Report).
1.0 COMMISSION’S PURVIEW
The Planning Commission’s role is to determine if the hours of operation for the use are appropriate
within the Downtown and consistent with the Zoning Regulations, given its location and proximity to
existing residential dwelling units. The Planning Commission should also consider if the condition
requiring a review by the Hearing Officer, six months from the date of occupancy of the business, is
needed to re-assess the impacts and conditions applied to the business.
2.0 APPEAL
The appeal form filed by the property owner identifies the intent of the appeal is to specifically address
Condition #3, which limits the hours of operation, and Condition #6, which requires a review of the
permit after six months of occupancy of the business. (Attachment 2, Appeal Form and Attachment).
Condition #3 states, “business hours shall be between 8 a.m. and 8 p.m. Sunday through Thursday, and
between 8 a.m. and 10 p.m. Friday and Saturday.” The appellant has provided a section of the Covenants,
Conditions, and Restrictions (CC&Rs) for the commercial condominiums of the development. The
CC&Rs have provisions for businesses to operate from 6:00 a.m. to 11:00 p.m. The appellant is asking
to allow the business to be open from 8:00 a.m. to 11:00 p.m., consistent with the CC&Rs.
Condition #6 states, “the use permit shall be reviewed by the Hearing Officer six months from the date
of occupancy. At the review hearing, the Hearing Officer may add, delete, or modify conditions of
approval.” The appellant asserts that this condition adds too much uncertainty to the project. As any
stricter conditions would potentially make the business unsustainable, which adds too much risk to the
initial investment.
3.0 APPEAL EVALUATION
Hours of Operation
Multiple City goals and policies in the Land Use Element of the General Plan state that the Downtown
should be the location of entertainment facilities, including nighttime entertainment (Goal 27, Policy
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APPL-1135-2017
583 Marsh Street
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4.1, 4.3, 4.8). Land Use policies for the Downtown also call for residential uses to be interspersed with
commercial projects and incorporated into new large projects (Policy 4.2, 4.2.1).
The Zoning Regulations, section 17.08.072, states “A mixed-use project proposing a commercial
component that will operate outside of the hours from 8:00 a.m. to 6:00 p.m. shall require the Director's
approval to ensure that the commercial use will not negatively impact the residential uses within the
project.” In this case, the requirement that a “commercial use will not negatively impact the residential
uses” sets a strict standard to meet for a use that may create additional noise in a mixed-use development.
This is especially true within the Downtown area where both nighttime entertainment and residential
uses are encouraged.
Given the somewhat conflicting nature of the Land Use policies and the Zoning Regulations, and the
concerns raised by residents of the Marsh Street Commons development, the Administrative Hearing
Officer approved hours of operation until 8:00 p.m. Sunday through Thursday, and until 10:00 p.m.
Friday and Saturday. Allowing hours of operation to extend until 10 p.m., Friday and Saturday, is
consistent with the Noise Element of the General Plan and the City’s Noise Ordinance. Both of which
require lower noise levels starting at 10 p.m. daily. In considering the appropriate hours of operation
Sunday through Thursday, a limit of 8:00 p.m. was established. These days are typically a larger concern
for residents, and 8:00 p.m. is the middle ground between the allowed hours per the Zoning Regulations,
6 p.m., and the Noise Element and Ordinance standard of 10 p.m.
The applicant has provided the CC&Rs for the commercial tenant space as additional information in
support of later hours for the business. Although the CC&Rs are legally binding in connection to the
property, they are a civil agreement and do not take precedent over City ordinances or regulations, and
are not within the City purview in review of applications. The CC&Rs for the residential component of
the development contain a broad acknowledgement that increased noise, traffic, and other disturbances
at all hours are expected when living in a mixed-use project, but it does not have language acknowledging
specific hours of operation allowed in the commercial component of the development.
Six Month Review
The Administrative Hearing Officer added Condition #6 requiring a review after six months of
occupancy of the business. This was in response to the concerns raised both in writing and at the October
9, 2017, Administrative Hearing by the residents of the Marsh Street Commons development as to
potential noise impacts the use would have on residents. Since there are no examples locally of an
Escape Room business in operation, the actual noise impacts are somewhat unknown. Requiring a six-
month review would allow for potential impacts to be observed, and conditions added, removed, or
modified appropriately. These changes could potentially include a reduction or expansion in the
approved operating hours for the business depending on impacts.
4.0 ALTERNATIVES
1. Continue the project with direction to the applicant and staff on pertinent issues.
2. Approve the project by upholding the appeal and allowing later hours of operation of the business
and removing the requirement for a six-month review of the project.
5.0 ATTACHMENTS
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APPL-1135-2017
583 Marsh Street
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1. Draft Resolution
2. Appeal Form and Attachment
3. Applicant Submitted Documents
4. Administrative Hearing Staff Report (October 9, 2017)
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RESOLUTION NO. PC-XXXX-17
A RESOLUTION OF THE SAN LUIS OBISPO PLANNING COMMISSION
DENYING AN APPEAL OF THE ADMINISTRATIVE HEARING
OFFICER’S DECISION TO APPROVE A USE PERMIT FOR AN ESCAPE
ROOM BUSINESS, CLASSIFIED AS A COMMERCIAL RECREATION
FACILITY – INDOOR, WITH CONDITIONS LIMITING HOURS OF
OPERATION AND REQUIRING A REVIEW OF THE USE PERMIT SIX
MONTHS AFTER OCCUPANCY OF THE BUSINESS, IN THE
DOWNTOWN COMMERCIAL ZONE WITH A MIXED USE OVERLAY,
AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS
DATED DECEMBER 20, 2017 (583 MARCH STREET APPL-1135-2017)
WHEREAS, the Administrative Hearing Officer of the City of San Luis Obispo conducted
a public hearing in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo,
California, on October 9, 2017, pursuant to a proceeding instituted under USE-1024-2017, BCR
Developments, applicant; and
WHEREAS, On October 19, 2017, Javad Sani, as the owner of the subject property, filed
an appeal of the Administrative Hearing Officer’s action; and
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public
hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on
December 20, 2017, pursuant to a proceeding instituted under APPL-1135-2017, Javad Sani,
appellant; and
WHEREAS, the Planning Commission of the City of San Luis Obispo has duly considered
all evidence, including the testimony of the applicant, interested parties, and evaluation and
recommendations by staff, presented at said hearing.
WHEREAS, notices of said public hearing were made at the time and in the manner
required by law; and
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of San
Luis Obispo as follows:
SECTION 1. Findings. The Planning Commission does hereby deny an appeal (APPL-
1135-2017) of the Administrative Hearing Officer’s decision DECISION TO APPROVE A USE
PERMIT FOR AN ESCAPE ROOM BUSINESS, CLASSIFIED AS A COMMERCIAL RECREATION
FACILITY – INDOOR, WITH CONDITIONS LIMITING HOURS OF OPERATION AND REQUIRING A
REVIEW OF THE USE PERMIT SIX MONTHS AFTER OCCUPANCY OF THE BUSINESS, IN THE
DOWNTOWN COMMERCIAL ZONE WITH A MIXED USE OVERLAY, (USE-1024-2017), based on
the following findings:
1. As conditioned, the use will not harm the general health, safety, and welfare of people living
or working in the vicinity because the use will be entirely inside an existing building and will
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Resolution No. PC-XXXX-17
583 Marsh Street, APPL-1135-2017
Page 2
meet all code requirements.
2. The proposed use is consistent with Land Use Element goal #27 for the City to serve as the
County’s hub for entertainment and cultural services, and Land Use Element policies (4.1,
4.3, and 4.8) that call for the Downtown to be the location of entertainment facilities including
nighttime entertainment.
3. The proposed use is consistent with the Zoning Regulations, Chapter 17.42, which states that
the C-D zone is intended to provide for a wide range of retail sales, services, and
entertainment uses.
4. As conditioned, the proposed use will not negatively impact the residential uses in the
development because the business will have operating hours of 8:00 a.m. to 8:00 p.m., Sunday
through Thursday, and 8:00 to 10:00 p.m. Friday and Saturday, and noise levels created by
the use during business hours will be within allowable limits as described in the Municipal
Code.
SECTION 2. Environmental Review. The project is categorically exempt under Class 1,
Existing Facilities; Section 15301 of the CEQA Guidelines, because the project consists of the
permitting and minor alterations of an existing private structure.
SECTION 3. Action. The Planning Commission hereby grants final approval to the
project with incorporation of the following conditions:
Planning Division
1. A building plan check submittal for tenant improvements that incorporates the following
conditions of approval, shall be submitted for review and approval of the Community
Development Department. A separate, full-size sheet shall be included in working drawings
submitted for a building permit that lists all conditions of project approval. Reference shall
be made in the margin of listed items as to where in plans requirements are addressed.
2. Business hours shall be between 8 a.m. and 8 p.m. Sunday through Thursday, and between 8
a.m. and 10 p.m. Friday and Saturday.
3. To further reduce the likelihood of noise negatively impacting surrounding residential units,
customers entering and exiting the business shall be monitored by staff for compliance with
noise restrictions.
4. The security door that exits into the residential entryway shall be removed or permanently
secured to ensure that access by customers or employees to the residential corridor is not
possible.
5. The use permit shall be reviewed by the Hearing Officer six months from the date of
occupancy of the business. At the review hearing, the Hearing Officer may add, delete, or
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Resolution No. PC-XXXX-17
583 Marsh Street, APPL-1135-2017
Page 3
modify conditions of approval.
6. This Use Permit shall be reviewed by the Administrative Hearing Officer if the City receives
substantiated written complaints from any citizen, Code Enforcement Officer, or Police
Department employee, which includes information and/or evidence supporting a conclusion
that a violation of this Use Permit, or of City ordinances, regulations or Police Department
resources (calls for service) applicable to the property or the operation of the business, has
occurred. At the time of the Use Permit review, to insure on-going compatibility of the uses
on the project site, conditions of approval may be added, deleted, modified, or the Use Permit
may be revoked.
Indemnification
7. The Owner/Applicant shall defend, indemnify and hold harmless the City or its agents or
officers and employees from any claim, action or proceeding against the City or its agents,
officers or employees, to attack, set aside, void, or annul, in whole or in part, the City's
approval of this project. In the event that the City fails to promptly notify the Owner/Applicant
of any such claim, action or proceeding, or that the City fails to cooperate fully in the defense
of said claim, this condition shall thereafter be of no further force or effect.
On motion by Commissioner ___________, seconded by Commissioner _____________,
and on the following roll call vote:
AYES:
NOES:
REFRAIN:
ABSENT:
The foregoing resolution was passed and adopted this 20th day of December 2017.
_____________________________
Doug Davidson, Secretary
Planning Commission
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ADMINISTRATIVE HEARING AGENDA REPORT
SUBJECT: Review of an Administrative Use Permit to operate an escape room, a physical adventure
game in which players solve a series of puzzles using clues, hints and strategy to complete the
objectives at hand, in the C-D-MU zone. This project includes a request to allow hours of operation
until 10 p.m. Sunday through Thursday, and 11:30 p.m. on Friday and Saturday, where a commercial
component of a mixed-use development is limited to the hours of 8:00 a.m. to 6:00 p.m. daily, with a
categorical exemption from environmental review.
PROJECT ADDRESS: 583 Marsh Street BY: Kyle Van Leeuwen, Planning Technician
Phone Number: (805) 781-7091
E-mail: kvanleeuwen@slocity.org
FILE NUMBER: USE-1024-2017 FROM: Tyler Corey, Principal Planner
RECOMMENDATION
Approve the Administrative Use Permit to operate an escape room, a commercial recreation facility
use, in the C-D-MU zone, based on findings and subject to conditions.
SITE DATA
SUMMARY
The applicant, BCR Developments, has applied for an Administrative Use Permit requesting approval
of an “escape room” business in the tenant space located at 583 Marsh Street. An escape room is a
physical adventure game in which players solve a series of puzzles using clues, hints and strategy to
complete the objectives with a set time limit. This type of business is classified as a commercial
recreation facility-indoor use. Zoning Regulations section 17.22 (Table 9) allows for a commercial
recreation facility-indoor use within the C-D zone with the approval of an Administrative Use Permit.
This tenant space is also located within a mixed-use development. Zoning Regulations section
17.08.072 (Mixed Use Projects) requires a Director’s approval when a commercial component of a
mixed-use project will operate outside the hours of 8:00 a.m. to 6:00 p.m., to ensure that the
Applicant BCR Developments
Complete Date September 15, 2017
General Plan General Retail
Zoning Downtown Commercial, Mixed Use
overlay (C-D-MU)
Commercial Area ~1,900 square feet
Environmental
Status
Categorically exempt from
environmental review under CEQA
Guidelines section 15301 (Existing
Facilities)
Meeting Date: October 9, 2017
Item Number: 1
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commercial use will not negatively impact the residential uses. The applicant is requesting operating
hours that would go until 10 p.m. Sunday through Thursday, and 11:30 p.m. on Friday and Saturday.
1.0 PROJECT INFORMATION
1.1 Site Information/Setting
The project site is a mixed-use development with commercial tenant spaces on the ground floor
fronting Marsh Street. The residential units of the site are located on the upper floors and behind
the commercial spaces. The tenant space proposed for the escape room is approximately 1,900
square feet, and is currently vacant. The other three commercial tenant spaces in the structure are
occupied by a furniture store, hair salon, and an additional vacant tenant space. The development
also includes 12 residential units, of which one unit is located directly above the proposed use.
This area along Marsh Street is comprised entirely of Downtown Commercial (C-D) zoning, with
High-Density Residential (R-4) zoning on the opposite side of the block facing Pacific Street.
1.2 Project Description
The applicant has proposed to establish an “Escape Room” in an existing commercial tenant space
in the Downtown Commercial (C-D) zone. This type of use, a commercial recreation facility-
indoor, is allowed in this zone with the approval of an Administrative Use Permit (Zoning
Regulations, Table 9). The new business proposes hours of operation of Noon to 10 p.m., Monday
through Thursday, 11 a.m. to 11:30 p.m. Friday and Saturday, and 11 a.m. to 10 p.m. on Sunday.
The business offers interactive experiences for groups of 2-10 people. These groups will enter one
of the four themed rooms in the facility and work together to solve large, multi -faceted puzzles.
The puzzles require communication and critical thinking skills to advance through the game, and
groups have one hour to solve the challenges and “escape” the room. The business does not
physically lock participants in the room. The facility would typically have three employees on
site at any given time.
2.0 PROJECT ANALYSIS
2.1 Consistency with General Plan and Zoning Regulations
Commercial Recreation Facility-Indoor Use: An Administrative Use Permit is required, per Table
9 of the Zoning Regulations, for a commercial recreation facility-indoor use to operate in the C-
D zone. This specific type of indoor recreation facility, which provides a unique entertainment
experience, is consistent with a number of goals and policies found in the Land Use Element of
the General Plan. These goals and policies call for San Luis Obispo to be the County’s hub for
entertainment (Community Goal #27), and more specifically for entertainment facilities to be
located in the downtown area (Policy #4.1, 4.3, & 4.8). The use at this location is also consistent
with Zoning Regulations, Chapter 17.42, which establishes that the C-D zone is intended to
provide for a wide range of retail sales, services, and entertainment uses.
Hours of Operation: The applicant proposal includes hours of operation for the business that
would extend into the evening, past 6:00 p.m. Per section 17.08.072 of the Zoning Regulations,
“A mixed-use project proposing a commercial component that will operate outside of the hours
from 8:00 a.m. to 6:00 p.m. shall require the Director's approval to ensure that the commercial
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use will not negatively impact the residential uses within the project.” Staff finds that the potential
negative impact to surrounding residents created by the use are properly addressed with the
inclusion of specific conditions of approval. These conditions include limiting the hours of
operation to 10 p.m. daily for the business and requires staff to monitor customers for compliance
with noise restrictions. This is consistent with the City’s noise exposure limits as stated in the
Municipal Code for commercial zones, which require lower noise levels starting at 10 p.m.
3.0 ATTACHMENTS
1. Applicant Submitted Documents
4.0 ACTION
The Administrative Hearing Officer does hereby approve the Administrative Use Permit (USE-1024-
2017), to establish an “escape room”, a commercial recreation facility-indoor use, in the C-D-MU
zone, with hours of operation not to exceed 10 p.m. daily, based on findings and subject to conditions
of approval.
Findings
1. The use will not harm the general health, safety, and welfare of people living or working in
the vicinity because the use will be entirely inside an existing building and will meet all code
requirements.
2. The proposed commercial recreation facility is consistent with the policies of the General
Plan, which calls for entertainment facilities to be in the downtown area.
3. The proposed use is consistent with the Zoning Regulations, Chapter 17.42, which states that
the C-D zone is intended to provide for a wide range of retail sales, services, and entertainment
uses.
4. As conditioned, the proposed use will not negatively impact the residential uses in the
development because the business is required to close at 10:00 p.m. daily and noise levels
created by the use during business hours will be within allowable limits as described in the
Municipal Code.
5. The project is categorically exempt from environmental review because the project consists
of the permitting and minor alterations of an existing private structure. (Class 1, Section
15301, Existing Facilities, CEQA Guidelines).
Conditions
Please note the project conditions of approval do not include mandatory code requirements. Code
compliance will be verified during the plan check process, which may include additional requirements
applicable to your project.
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Planning Division
1. The Owner/Applicant shall defend, indemnify and hold harmless the City or its agents or
officers and employees from any claim, action or proceeding against the City or its agents,
officers or employees, to attack, set aside, void, or annul, in whole or in part, the City's
approval of this project. In the event that the City fails to promptly notify the Owner/Applicant
of any such claim, action or proceeding, or that the City fails to cooperate fully in the defense
of said claim, this condition shall thereafter be of no further force or effect.
2. A building plan check submittal for tenant improvements that incorporates the following
conditions of approval, shall be submitted for review and approval of the Community
Development Department. A separate, full-size sheet shall be included in working drawings
submitted for a building permit that lists all conditions of project approval. Reference shall
be made in the margin of listed items as to where in plans requirements are addressed.
3. Business hours shall be between 8 a.m. and 8 p.m. Sunday through Thursday, and between 8
a.m. and 10 p.m. Friday and Saturday.
4. To further reduce the likelihood of noise negatively impacting surrounding residential units,
customers entering and exiting the business shall be monitored by staff for compliance with
noise restrictions.
5. The security door that exits into the residential entryway shall be removed or permanently
secured to ensure that access by customers or employees to the residential corridor is not
possible.
6. The use permit shall be reviewed by the Hearing Officer six months from the date of
occupancy. At the review hearing, the Hearing Officer may add, delete, or modify conditions
of approval
7. This Use Permit shall be reviewed by the Administrative Hearing Officer if the City receives
substantiated written complaints from any citizen, Code Enforcement Officer, or Police
Department employee, which includes information and/or evidence supporting a conclusion
that a violation of this Use Permit, or of City ordinances, regulations or Police Department
resources (calls for service) applicable to the property or the operation of the business, has
occurred. At the time of the Use Permit review, to insure on-going compatibility of the uses on
the project site, conditions of approval may be added, deleted, modified, or the Use Permit may
be revoked.
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Approve
Approve as modified
Deny
Continue to: ______________________ to allow __________________________________
_____________________________________________________________________________
_____________________________________________________________________________
Continue indefinitely to allow: _________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
___________________________________
Hearing Officer
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