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HomeMy WebLinkAbout03-20-2018 Item 13 Appeal of Planning Commission decision regarding business hours of Escape Room use Meeting Date: 3/20/2018 FROM: Michael Codron, Community Development Director Prepared By: Kyle Van Leeuwen. Planning Technician SUBJECT: REVIEW OF AN APPEAL (FILED BY THE APPLICANT, BCR DEVELOPMENTS) OF THE PLANNING COMMISSION’S DECISION TO APPROVE A NEW ESCAPE ROOM BUSINESS, A COMMERCIAL RECREATION FACILITY-INDOOR USE, WITH A CONDITION LIMITING HOURS OF OPERATION TO 8:00 P.M. SUNDAY THROUGH THURSDAY, AND 10:00 P.M. FRIDAY AND SATURDAY. RECOMMENDATION Adopt a Resolution (Attachment A) denying the appeal and upholding the Planning Commission’s approval of a Use Permit, with a categorical exemption from environmental review. SITE DATA Applicant BCR Developments Property Owner Javad Sani, Sarfar Properties LLC Appeal Date January 2, 2018 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 room”1 business in the tenant space located at 583 Marsh Street. This type of business is classified as a commercial recreation facility-indoor use. The Zoning Regulations Section 17.22 (Table 9) allows for this use within the Downtown Commercial (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 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. Packet Page 151 13 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 applicant’s original request was for operating hours until 10:00 p.m., Sunday through Thursday, and 11:30 p.m. on Friday and Saturday. On October 9, 2017, the Administrative Hearing Officer approved the Administrative Use Permit to establish the use (Attachment B). Leading up to the hearing, the City received correspondence from four residents of the development expressing concerns regarding the proposed business, with three residents in attendance at the hearing that voiced their concerns. These concerns primarily centered on noise the business would create and the hours of operation. To ensure compatibility between the business and residential uses at this location, the Use Permit included a condition limiting the hours of operation to between 8:00 a.m. and 8:00 p.m., Sunday through Thursday, and between 8:00 a.m. and 10:00 p.m., Friday and Saturday. This condition was intended to address potential noise impacts to the existing residents living above and adjacent to the commercial tenant space. The Use Permit also included a condition requiring review by the Hearing Officer six months from the date of occupancy of the business to evaluate the effectiveness of the conditions of the Use Permit and determine if any changes are necessary. Appeal Filed On October 19, 2017, the property owner filed an appeal of the Administrative Hearing Officer’s decision to approve the Use Permit (Attachment C). The intent of the appeal is to address Condition No. 3, which limits the hours of operation, and Condition No. 6 that requires a review of the permit after six months of occupancy of the business. The appellant asserted that these conditions added too much uncertainty and risk to the project. On December 20, 2017, the Planning Commission, on a 5-1 vote (Commissioner Malak voting against), denied in part and upheld in part the appeal of the Administrative Hearing Officer’s decision. The Planning Commission (PC) maintained the hours of operation that were approved by the Administrative Hearing Officer, but eliminated the condition requiring review by the Hearing Officer six months after the date of occupancy of the business (Attachment D). Three residents of the mixed-use development spoke at the hearing, and three sent in official correspondence, to express their concerns about possible extension of the hours of operation. On January 2, 2018, the applicant, BCR Developments, appealed the PC’s decision. The appellants request is to allow hours of operation of 8:00 a.m. to 9:00 p.m. Sunday through Thursday, and 8:00 a.m. to 11:00 p.m., Friday and Saturday. This would be one hour per day more than the PC resolution allows (Attachment E). The Council is being asked to review the PC approved Use Permit in consideration of the applicant’s appeal and provide a final determination on the project. DISCUSSION Applicant Appeal The appeal form filed by the applicant identifies the intent of the appeal is to specifically address Condition #2, which limits the hours of operation of the business (Attachment E). Packet Page 152 13 Condition #2 states, “business hours shall be between 8:00 a.m. and 8:00 p.m. Sunday through Thursday, and between 8:00 a.m. and 10:00 p.m. Friday and Saturday.” The reason for the appeal as stated by the applicant has two specific points: 1) Due to the nature of the business, the condition requires that the last escape room sessions commence at 7:00 p.m. and 9:00 p.m. respectively, to comply with the approved hours of operation because each session lasts approximately one hour; and 2) The approved hours of operation of the business are too restrictive and will render the business economically unviable. The appeal is specifically requesting that the City Council approve hours of operation of 8:00 a.m. to 9:00 p.m., Sunday through Thursday, and 8:00 a.m. to 11:00 p.m., Friday and Saturday. This additional hour would allow for the final escape room session to begin at 8:00 p.m., Sunday through Thursday, and 10:00 p.m., Friday and Saturday. Appeal Evaluation 1. Land Use Element Goals & Policies Goals and policies in the General Plan Land Use Element state th at the Downtown should be the location of entertainment facilities, including nighttime entertainment (Goal 27, Policies 4.1, 4.3, 4.8). Land Use Element policies for the Downtown also call for residential uses to be interspersed with commercial projects and incorporated into new large projects (Policies 4.2, 4.2.1). 2. Noise Thresholds & Hours of Operation Noise Element The Noise Element of the General Plan sets noise exposure standards for noise-sensitive land uses, and performance standards for new commercial and industrial uses. Residences are considered a noise-sensitive land use and have specific thresholds for exposure. For reference, the maximum hourly noise exposure for a residence is 50 decibels between the hours of 7:00 a.m. and 10:00 p.m. (day) and 45 decibels from 10:00 p.m. to 7:00 a.m. (night). Zoning Regulations 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.” The requirement that a “commercial use will not negatively impact the residential uses” sets a strict standard for any use that may create impacts after 6:00 p.m. when located within a mixed-use development. This is especially true within the Downtown area where Land Use Element policies encourage both nighttime entertainment uses, and residential uses interspersed in new development. Packet Page 153 13 3. Analysis Hours of operation were carefully considered by both the Hearing Officer and the Planning Commission in their respective reviews and actions on the project. Given the General Plan noise thresholds, Zoning Regulations language on hours of operation for mixed-use projects, and correspondence and testimony given by the residents of the project site, both the Hearing Officer and Planning Commission determined the following hours for the proposed business was appropriate: Friday and Saturday: Allowing hours of operation to extend until 10:00 p.m., Friday and Saturday, is consistent with the decibel threshold change in the General Plan (10:00 pm). Sunday through Thursday: In considering the appropriate hours of operation Sunday through Thursday, a limit of 8:00 p.m. was established as the middle ground between the allowed hours per the Zoning Regulations (6:00 p.m.) and the decibel threshold change in the General Plan (10:00 p.m.). The Planning Commission also informed the applicant that they would be able to apply for a modification to the Use Permit once they demonstrate the business fits well with the neighbors and does not have a negative impact on residential uses. It should be noted that the applicant provided the CC&Rs for the com mercial tenant space as additional information included with their appeal documentation to the Planning Commission in support of later hours for the business. The CC&Rs for the commercial units prohibit businesses from operating between the hours of 11:00 p.m. and 6:00 a.m. However, the CC&Rs for the residential component of the development only contain a broad acknowledgement that increased noise, traffic, and other disturbances at all hours are expected when living in a downtown mixed- use project. The residential CC&Rs do not include language acknowledging specific hours of operation allowed in the commercial component. While the CC&Rs are legally binding in connection to the property, they are a civil agreement and do not take precedent over City ordinances and regulations and are not enforced by the City. 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. FISCAL IMPACT When the General Plan was prepared, it was accompanied by a fiscal impact analysis, which found that overall the General Plan was fiscally balanced. Accordingly, since the proposed project is consistent with the General Plan, it has a neutral fiscal impact. There is no fiscal impact associated with the approval of this project. Packet Page 154 13 ALTERNATIVES 1. Uphold the appeal. The Council can uphold the appeal and approve the project with hours of operation between 8 a.m. and 9 p.m., Sunday through Thursday, and between 8 a.m. and 11 p.m., Friday and Saturday. 2. Uphold the appeal in part, approving the project with modifications. The Council can approve the project with modifications as appropriate, based on findings of consistency with applicable policies and regulations. Attachments: a - Draft Resolution b - Administrative Hearing Agenda Report c - Appeal of Hearing Officer's Decision d - Planning Commission Resolution e - Appeal of Planning Commission Decision f - Planning Commission Minutes g - Project Description & Site Plan Packet Page 155 13 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, DENYING AN APPEAL OF THE PLANNING COMMISSION’S DECISION TO APPROVE A USE PERMIT FOR AN ESCAPE ROOM BUSINESS, CLASSIFIED AS A COMMERCIAL RECREATION FACILITY – INDOOR, WITH A CONDITION LIMITING HOURS OF OPERATION, IN THE DOWNTOWN COMMERCIAL ZONE WITH A MIXED USE OVERLAY, AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED MARCH 20, 2018 (583 MARCH STREET APPL-1324-2018) WHEREAS, on October 9, 2017, the Administrative Hearing Officer of the City of San Luis Obispo approved an Administrative Use Permit at a public hearing in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo, California, 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, on December 20, 2017, the Planning Commission of the City of San Luis Obispo adopted Resolution PC-1013-17, denying in part and upholding in part an appeal of the Administrative Hearing Officer’s decision at a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, pursuant to a proceeding instituted under APPL- 1135-2017, Javad Sani, appellant; and WHEREAS, On January 2, 2018, BCR Developments, the applicant, filed an appeal of the Planning Commission’s action; and WHEREAS, On March 20, 2018, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo, California, pursuant to a proceeding instituted under the appeal of the Planning Commission’s decision APPL-1324-2018, BCR Developments, applicant/appellant; and WHEREAS, the City Council 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, and WHEREAS, notices of said public hearings were made at the time and in the manner required by law; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings: Packet Page 156 13 Resolution No. _____ (2018 Series) Page 2 R ______ 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 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. 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 City Council does hereby grant 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. 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. Indemnification 4. 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 Packet Page 157 13 Resolution No. _____ (2018 Series) Page 3 R ______ 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. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2018. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Carrie Gallagher City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ____________________________________ Carrie Gallagher City Clerk Packet Page 158 13 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 Packet Page 159 13 USE-1024-2017 583 Marsh Street Page 2 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 Packet Page 160 13 USE-1024-2017 583 Marsh Street Page 3 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. Packet Page 161 13 USE-1024-2017 583 Marsh Street Page 4 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. Packet Page 162 13 USE-1024-2017 583 Marsh Street Page 5  Approve  Approve as modified  Deny  Continue to: ______________________ to allow __________________________________ _____________________________________________________________________________ _____________________________________________________________________________  Continue indefinitely to allow: _________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ ___________________________________ Hearing Officer Packet Page 163 13 Packet Page 164 13 Packet Page 165 13 Packet Page 166 13 Packet Page 167 13 Packet Page 168 13 Packet Page 169 13 Packet Page 170 13 Packet Page 171 13 Packet Page 172 13 Packet Page 173 13 Packet Page 174 13 City of San Luis Obispo, Council Agenda, City Hall, 990 Palm Street, San Luis Obispo Planning Commission Minutes Wednesday, December 20, 2017 Regular Meeting of the Planning Commission CALL TO ORDER A Regular Meeting of the San Luis Obispo Planning Commission was called to order on Wednesday, December 20, 2017 at 6:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis Obispo, California, by Chair Stevenson. ROLL CALL Commissioners Present: Commissioners Kim Bisheff, Hemalata Dandekar, Ronald Malak, Nicholas Ostebur, Vice-Chair John Fowler and Chair Charles Stevenson. Commissioners None Absent: City Staff Present: Community Development Deputy Director Davidson, Assistant City Attorney Jon Ansolabehere, Principal Planner Tyler Corey, Associate Planner Kyle Bell; Planning Technician Kyle Van Leeuwen, Assistant Planner Walter Oetzell; Recording Secretary Teresa Purrington. Pledge of Allegiance Chair Stevenson led the Pledge of Allegiance. Chair Stevenson requested to reorder the agenda to hear Item 5 Part A and B after Item 2. By consensus, the Planning Commission reordered the agenda as requested. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA None Packet Page 175 13 Planning Commission Meeting Minutes December 20, 2017 Page 2 of 7 APPROVAL OF MINUTES 1. Minutes of the Regular Planning Commission Meetings of September 27, 2017, October 11, 2017 and October 25, 2017 ACTION: MOTION BY COMMISSIONER DANDEKAR, SECOND BY VICE CHAIR FOWLER, CARRIED 6-0 to approve the minutes of September 27, 2017, as presented MOTION BY COMMISSIONER MALAK, SECOND BY COMMISSIONER DANDEKAR, CARRIED 6-0 to approve the minutes of October 11, 2017 as presented. MOTION BY COMMISSIONER BISHEFF, SECOND BY COMMISSIONER MALAK, CARRIED 5-0-1 (Vice Chair Fowler abstained due to conflict of interest) to approve the minutes of October 25, 2017, as presented. PUBLIC HEARINGS 2. 600 Perkins; Review of a tentative parcel map to create two lots, with a requested exception to the minimum lot size requirements, including a Negative Declaration of environmental review; Case #: SBDV-0626-2017, R-2-S zone; Neils Grether, applicant. Associate Planner Kyle Bell presented the staff report and responded to Commission inquiries. Applicant Neil Grether, summarized the project. Mike Stanton, Project Engineer, provided information regarding the engineering for the project. PUBLIC COMMENT Elaine Cormier Alex McClure --End of Public Comment-- ACTION: MOTION BY COMMISSIONER MALAK, SECONDED BY COMMISSIONER DANDEKAR to approve the recommendation to adopt a Resolution entitled: “A RESOLUTION OF THE SAN LUIS OBISPO PLANNING COMMISSION APPROVING A TENTATIVE PARCEL MAP TO CREATE TWO LOTS, WITH A REQUESTED EXCEPTION TO THE MINIMUM LOT SIZE REQUIREMENTS (SLO 17-0013), INCLUDING A NEGATIVE DECLARATION OF ENVIRONMENTAL REVIEW, AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED NOVEMBER 15, 2017 (600 PERKINS, SBDV-0626-2017, EID-0628-2017)” Packet Page 176 13 Planning Commission Meeting Minutes December 20, 2017 Page 3 of 7 Motion passed 6-0-0-0- on the following roll call vote: AYES: COMMISSIONERS BISHEFF, DANDEKAR, MALAK, OSTEBUR, VICE- CHAIR FOWLER AND CHAIR STEVENSON NOES: NONE ABSENT: NONE MOTION CARRIED. Item 5 A and B heard at this time. See Item 5 below for direction provided. RECESS: The Commission recessed at 7:36 p.m. and reconvened at 7:41 p.m. with all Commissioners present. 3. 583 Marsh St. 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. Case #: USE-1024-2017; C-D-MU zone, Javad Sani, applicant. Planning Technician Kyle Van Leeuwen presented the staff report and responded to Commission inquiries. Applicant Brian Lacertosa, summarized the project and explained the request for expanded hours. PUBLIC COMMENT Robert Spector Cinda Fox Sabastian Ponce Barry Jones John Hans --End of Public Comment-- ACTION: MOTION BY VICE CHAIR FOWLER, SECONDED BY COMMISSIONER OSTERBUR TO approve the recommendation to adopt a Resolution entitled: Packet Page 177 13 Planning Commission Meeting Minutes December 20, 2017 Page 4 of 7 “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)” With the elimination of Planning Condition #5. Motion passed 5-1-0 on the following roll call vote: AYES: COMMISSIONERS BISHEFF, DANDEKAR, OSTEBUR, VICE-CHAIR FOWLER AND CHAIR STEVENSON NOES: COMMISSIONER MALAK ABSENT: NONE 4. 1460 Calle Joaquin; Consideration of an amendment to the City’s Zoning Map to designate property at 1460 Calle Joaquin to be within a Tourist Commercial (C-T) Zone; construction of a new two-story commercial building; an exception to the Creek Setback requirement to allow six (6) uncovered parking spaces within the setback; and a Mitigated Negative Declaration of environmental review. Case # RZ-0015-2017 & EID-0016-2017; No Zone (C-T Zone proposed); AuzCo Development, LLC, applicant Assistant Planner Walter Oetzell, presented the staff report and responded to Commission inquiries. Applicant Representative, George Garcia, provided an overview of the project. PUBLIC COMMENT None --End of Public Comment-- RECESS: The Commission recessed at 9:39 p.m. and reconvened at 9:53 p.m. with all Commissioners present. Packet Page 178 13 Planning Commission Meeting Minutes December 20, 2017 Page 5 of 7 ACTION: MOTION BY COMMISSIONER MALAK, SECOND BY VICE CHAIR FOWLER, based on the record and the testimony presented, including the visual simulations, the PC hereby recommends that the City Council amend the Zoning Map to designate the subject property as being within a Tourist Commercial (C-T) Zone, consistent with its General Plan designation, but not adopt the Mitigated Negative Declaration, based on potential significant environmental impacts to aesthetics, specifically, blocking of views of Irish Hills and the scenic corridor, and further recommends that the City Council not approve the creek exception. Motion passed 5-1-0 on the following roll call vote: AYES: COMMISSIONERS DANDEKAR, MALAK, OSTEBUR, VICE-CHAIR FOWLER AND CHAIR STEVENSON NOES: COMMISSIONERS BISHEFF ABSENT: NONE BUSINESS ITEM 5. Zoning Regulations Update. The Zoning Regulations Update is focused on implementing the policies and programs of the Land Use and Circulation Elements (LUCE). This will be a standing item on the Planning Commission agenda from June 14, 2017 through completion of the Update of the Zoning Regulations, tentatively scheduled for completion in March 2018. This will be an opportunity for staff to update the Commission on the status of the Zoning Regulations Update and for the Commission to listen to ongoing public testimony and discuss any such updates as they come forward. As a standing item, sometimes there will be nothing to report; other times staff will give a brief update with limited discussion; and at certain points, such as review of the Land Use Table, Parking Requirements, and the Reformatted Outline, there will be more substantive discussion on the item. When materials are associated with the Update, as with the White Papers associated with the Update, such information will be made available to the public and Commission prior to the meeting. Specific Items for Consideration are: 1. Draft White Paper: Case Studies in Local Adult-Use and Medical Marijuana Regulations 2. Alcohol Outlet Regulations Effectiveness Update (to inform implementation of Land Use Element 4.32) Deputy Community Development Director Doug Davidson, and Associate Planner Kyle Bell, presented the staff report and responded to Commission inquiries. PUBLIC COMMENT Jody Belsher Lisa Guy Vivian Soul Packet Page 179 13 Planning Commission Meeting Minutes December 20, 2017 Page 6 of 7 Gail Ryff Mila Vujovich-LaBarre John Belsher Sean Donahue --End of Public Comment-- The following discussions/questions were provided: Local Adult Use and Medical Marijuana Regulations: • Like to know what the State has done regarding regulatory control and what’s coming up in the future to help better understand the issue. • Highlight state regulations regarding this issue. • Have we seen any expressed interest in cultivation, manufacturing and testing or is this all about retail? • Can the city regulate the type of goods sold? For example, candy and soda • Is there other data we can obtain from other cities that allow the sale of cannabis? • Concerned how we will decouple the physical and social impacts when we are trying to determine size and location from schools and that we are reviewing this in a silo. Will struggle with this when we don’t have all the information. • Suggest that if there is time on the schedule in January for another study session to get answers to some of the questions asked tonight. • Is the State of California looking to form a bank to handle the money that other banks won’t, since the money can’t be deposited in a federal bank. • What sorts of facilities are we talking about and where they can be located. What are the consequences on the street for enforcement. Feel very uneducated on this, would like to hear from the Police Chief. Alcohol licensing Would like to hear from Chief Cantrell regarding experience in the downtown and incidents of alcohol related crime which are significant. Item 5 C through E were heard at this time. 3. Table 9 (Uses Allowed by Zone) Follow-up Discussion 4. Tentative Schedule for Zoning Regulations Update 5. Director Action and Use Permit Requirements Doug Davidson, Deputy Director presented the staff report and responded to Commission inquiries. PUBLIC COMMENT None Packet Page 180 13 Planning Commission Meeting Minutes December 20, 2017 Page 7 of 7 --End of Public Comment-- NO ACTION: Commissioners discussed and provided general direction. COMMENT AND DISCUSSION 6. Agenda Forecast – Deputy Community Development Director Doug Davidson provided an update of upcoming projects. ADJOURNMENT The meeting was adjourned at 10:10 p.m. The next Regular meeting of the Planning Commission is scheduled for Wednesday, January 10, 2018 at 6:00 p.m., in the location, 990 Palm Street, San Luis Obispo, California. APPROVED BY THE ADVISORY BODY NAME: 01/10/2018 Packet Page 181 13 AH1 - 5Packet Page 182 13 AH1 - 6Packet Page 183 13 AH1 - 7Packet Page 184 13 AH1 - 8 Packet Page 18513 AH1 - 9Packet Page 186 13 RECE VI ED MAR 14 2018 Newspaper of the Central Coa5t 3825 South Higuera • Post Office Box 112 - San Luis Obispo, California 93406-0112 - (805) 781-7800 In The Superior Court of The State of California In and for the County of San Luis Obispo CITY of AD #3561563 WO WRI'als,o po CITY OF SAN LUIS OBISPO SAN LUIS OBISPO CITY'COUNCIL NOTICE OF PUBLIC HEARING OFFICE OF THE CITY CLERK The San Luis Obispo City Council invites all interested persons to attend a public hearing on Tuesday, March 20, 2018, at STATE OF CALIFORNIA 6:00 p.m. in the City Hall Council Cham - ber, 990 Palm Street, San Luis Obispo, ss. California, relative to the following: County of San Luis Obispo REVIEW PF AN APPEAL_ (NLEP BY THE APPLICANT BCH pEVE�ILOP- MEMS] O THS PLANN(Nr, CO__MO MIS - I am a citizen of the United States and a resident of the 19IQN TO APPROVE, A NEW MAN'S 1EC^ Coun aforesaid I am over the a e of ei hteen and not g g M ESCAPE RPOHV15fNESS A. CO0 M6M- CIAL RECi4E EON FACII-gy INDINDODR interested in the above entitled matter; I am now, and at usE,__WITH A PON�LrtQN LIMITING all times embraced in the publication herein mentioned HOURS,AF �PERAT��:04 P.fN. SUNDAY THROUGH THURSDAY, AND was, the principal clerk of the printers and publishers of 10:00 P.M. FRIDAY AND SATURDAY. THE TRIBUNE, a newspaper of general Circulation, A public hearing to adopt a resolution deny - printed and published daily at the City of San Luis Ing an appeal and upholding the Planning Commission's approval of a Use Permit, Obispo in the above named county and state; that notice with a categorical exemption from environ - at which the annexed clippings is a true copy, was mental review. published in the above-named newspaper and not in any For more information, you are invited to supplement thereof — on the following dates to wit;; contact Kyle Van Leeuwen-of the City's Community Development Department at, MARCH 10, 2018 that said news a er was dui and p p Y (805) 761-7091 or by email at kvanlee uslocs,o� regularly ascertained and established a newspaper of general circulation by Decree entered in the Superior The City Council may also discuss other hearings or business items before or after Court of San Luis Obispo County, State of California, on the Items tided above. If you challengethe the propos ed project In court, you mayy bhe June 9, 1952, Case #19139 under the Government Code ed to ralsing Only those issues you or of the State of California. Someone else ralsed at the public hearing described in this notice, or in written corre- spondence delivered to the City Council at, I certify (or declare) under the penalty of perjury that the or prior to, the public hearing. foregoing is true and correct. Reports for this meeting will be available for review in the City Clerk's Office and on. line at vn-nv.sl001ty am an Wednesday, March 14, 2018. Please Call the City cter- H k's Office at (805) 781-7100 for more Infor- (Sighiture of Principal Clerk) Mallon.'17he City COUncll meeling will be DATE: MARCH 10, 2018 televised five on Charter Cable Channel 2fl and live streaming on www.slocity.org. AD COST: $171.68 Carrie Gallagher, CMC City Clerk City of San Luis Obispo March 10, 2018 3561563 3/21/2018 1 583 Marsh Street APPL-1324-2018 REVIEW OF AN APPEAL OF THE PLANNING COMMISSION’S DECISION TO APPROVE A NEW ESCAPE ROOM BUSINESS, LIMITING HOURS OF OPERATION TO 8:00 P.M. SUNDAY THROUGH THURSDAY, AND 10:00 P.M. FRIDAY AND SATURDAY. March 20, 2018 Appellant: BRC Developments, LLC Recommendation 2 Adopt a Resolution denying the appeal and upholding the Planning Commission’s approval of the Use Permit. Staff Presentation - Item #13 3/21/2018 2 3 4 Staff Presentation - Item #13 3/21/2018 3 Background Administrative Hearing – October 9, 2017 Approved Use Permit Set hours: 8 am to 8 pm, Sun – Thurs 8 am to 10 pm, Fri & Sat Included a condition requiring a six-month review Appeal Filed by Property Owner – October 20, 2107 5 Background Planning Commission Hearing – December 20, 2017 Denied in part and upheld in part the appeal Maintained hours of operation as approved by the Hearing Officer Removed condition requiring six-moth review Appeal Filed by Business Owner – January 2, 2018 6 Staff Presentation - Item #13 3/21/2018 4 Appeal – January 2, 2018 The appeal’s intent is to address Condition #2 of the PC’s resolution, limiting the hours of operation. The appellant is requesting the hours of operation be extended one hour. 7 Appeal – January 2, 2018 PC approved hours: 8 am to 8 pm, Sun – Thurs 8 am to 10 pm, Fri & Sat Appellant Requested hours: 8 am to 9 pm, Sun – Thurs 8 am to 11 pm, Fri & Sat 8 Staff Presentation - Item #13 3/21/2018 5 Evaluation Land Use Element Goals & Policies The Downtown should be the location of entertainment facilities, including nighttime entertainment Residential uses to be interspersed with commercial projects and incorporated into new large projects 9 Evaluation Noise Thresholds Residences are considered a noise-sensitive land use and have specific thresholds for exposure Noise limit thresholds become stricter at 10 pm 10 Staff Presentation - Item #13 3/21/2018 6 Evaluation Zoning Regulations A mixed-use project proposing a commercial component that will operate outside of the hours from 8 am to 6 pm shall require approval to ensure that the commercial use will not negatively impact the residential uses within the project 11 Evaluation Correspondence and Testimony Both the Hearing Officer and PC received correspondence and heard testimony from residents of the development expressing concerns primarily centered on the noise the business would create and the hours of operation. 12 Staff Presentation - Item #13 3/21/2018 7 Evaluation Both Hearing Officer and PC determined appropriate hours to be: Friday and Saturday: limit of 10 pm, consistent with the change in decibel threshold in the General Plan (10 pm) for noise sensitive land uses (residences) Sunday through Thursday: limit of 8:00 pm, middle ground between allowed hours per the Zoning Regulations (6 pm) and the decibel threshold change in the General Plan (10 pm) 13 Recommendation 14 Adopt a Resolution denying the appeal and upholding the Planning Commission’s approval of a Use Permit. Staff Presentation - Item #13 3/21/2018 8 Additional Information 16 The tenant space is constructed of concrete on four sides. This type of construction material is known for its sound attenuation properties. Interior noise attenuation measures were included for the entire development as conditions of approval (ARC 36- 06), which included specific requirements for units that face Marsh Street Staff Presentation - Item #13 3/21/2018 9 Appeal Evaluation - Hours of Operation 17 Land Use Element Goals & Policies Policy 4.8: Downtown as Focal Point: The Downtown should remain the focus for nighttime entertainment, cultural events and related activities. It should be a pleasant and safe place at all times. 4.2.1. C. Dwellings should be interspersed with commercial uses (Downtown). 4.2.1. D. All new, large commercial projects should include residential uses (Downtown). Appeal Evaluation - Hours of Operation 18 Zoning Regulations 7.08.072: 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. Staff Presentation - Item #13 TO: Brian Lacertosa BCR Developments 15418 Mooney Ave Bakersfield, CA 93314 INVOICE NUMBER INVOICE DATE i INVOICE DUE DATE INVOICE STATUS INVOICE DESCRIPTION 00011752 01/02/2018 1 l i 02/01/2018 Paid In Full NONE REFERENCE NUMBER DESCR%IPTION TOTAL APPL-1324-2018 Tier 1 Appeal - Applicant IT Surcharge $1,516.75 $40.25 SUB TOTAL $1,557.00 TOTAL j $1,557.00 January 08, 201-4--1 Page 1 of 1