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HomeMy WebLinkAboutR-11364 denying an appeal and upholding the Planning Commission’s decision to approve a Minor Use Permit for The Hub (1701 Monterey St, APPL-0262-2022, USE-0103-2022)R 11364 RESOLUTION NO. 11364 (2022 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, DENYING AN APPEAL AND UPHOLDING THE PLANNING COMMISSION’S DECISION TO APPROVE A MINOR USE PERMIT TO ESTABLISH A MULTI-VENDOR FACILITY THAT INCLUDES A BAR/TAVERN, RESTAURANT, COMMERCIAL RECREATION, GENERAL RETAIL, INDOOR LIVE ENTERTAINMENT, AND FOOD TRUCKS. THE PROJECT INCLUDES A PARKING REDUCTION REQUEST AND IS CATEGORICALLY EXEMPT FROM ENVIRONMENTAL REVIEW; AS REPRESENTED IN THE CITY COUNCIL AGENDA REPORT AND ATTACHMENTS DATED SEPTEMBER 6, 2022 (1701 MONTEREY STREET, APPL-0262-2022) WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing on May 11, 2022, pursuant to a proceeding instituted under Minor Use Permit, USE-0103-2022, Monterey Street Brewing Company, LLC, applicant; and WHEREAS, the Planning Commission of the City of San Luis Obispo conditionally approved the Minor Use Permit, USE-0103-2022, after duly considering all evidence, including the testimony of the applicant, interested parties, and evaluation and recommendations by staff, presented at said hearing; and WHEREAS, Hana Novak filed an appeal of the Planning Commission’s decision to approve the Minor Use Permit, APPL-0262-2022, on May 19, 2022; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing on September 20, 2022 for the purpose of considering the appeal of the Planning Commission’s decision to approve the Minor Use Permit, APPL-0262-2022, and has duly considered all evidence, including the record of the Planning Commission hearing, staff’s evaluation and recommendation, and public testimony presented at said hearing; and WHEREAS, notices of said public hearings were made at the time and in the manner required by law. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: SECTION 1. Findings. The City Council hereby grants final approval to the project, based on the following findings: DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA Resolution No. 11364 (2022 Series) Page 2 R 11364 Minor Use Permit Findings 1. As conditioned, the proposed uses are consistent with the General Plan because the project would serve both short- and long-term visitors as intended by Policies 3.6.1 and 3.62 for the Tourist Commercial land use designation. The proposed multi-vendor facility includes complementary uses that provide amenities compatible with, and would not result in adverse impacts to, surrounding uses, which include hotels/motels, restaurants, vehicle repair services, residences, and the San Luis Obispo Creek. 2. The proposed uses are typically permitted or conditionally permitted within the Tourist Commercial zone and will comply with applicable provisions of these Zoning Regulations and the Municipal Code as conditioned. 3. The design, location, size, and operating characteristics of the proposed uses will be compatible with the existing and future land uses in the vicinity because the project operates in a building and within outdoor areas enclosed by solid fencing and/or buffered by existing buildings, provides complementary uses that serve patrons of nearby hotels/motels on upper Monterey Street, has adequate onsite parking, and complies with the Noise Ordinance. 4. The site is physically suitable in terms of (a) its design, location, size, and operating characteristics of the project, (b) traffic generation and the provision of public and emergency vehicle (e.g., fire and medical access), (c) public protection services, and (d) the provision of utilities (e.g., potable water, schools, solid waste collection and disposal, storm drainage, wastewater collection, treatment, and disposal, etc.). The project is located on and surrounded by other developed properties, has access to the City’s circulation system, and will be served by City utilities. The project does not include activities that generate service or utility demands beyond those anticipated with uses permitted in the vicinity. 5. The establishment and subsequent operation or conduct of the use will not, because of circumstances and conditions applied in the particular case, be detrimental to the health, safety, or welfare of the general public or persons residing or working in the neighborhood of the use, or be detrimental or injurious to property or improvements in the vicinity of the use because the project is required to submit a building permit for the change in occupancy of the building and operate in compliance with the Noise Ordinance. Alcohol Outlets Findings 6. As conditioned, the Bar/Tavern use shall be consistent with the Zoning Regulations and 2012 Alcohol Outlet Regulations to reduce public safety problems associated with alcoholic beverage sales and provide for properly maintained alcohol outlets so that negative impacts generated by these activities are not harmful to the surrounding environment. The use shall operate in compliance with standards identified in Section 17.86.050(B) (Alcohol Outlet Operational Requirements) of the Zoning Regulations. DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA Resolution No. 11364 (2022 Series) Page 3 R 11364 7. As conditioned, the Bar/Tavern use will not result in adverse effects to the health, peace, or safety of persons residing or working in the surrounding area or jeopardize or endanger the public health or safety of persons residing or working in the surrounding area because the project is required to minimize noise and safety impacts as well as impacts to police resources and the community. The Use Permit may be modified, or revoked, in response to substantiated evidence of violation of the terms of this permit or other applicable City regulations or standards. 8. The Bar/Tavern use will not result in violations to any applicable provision of any other City, State, or Federal regulation, ordinance, or statute. Section 17.86.050(B) (Alcohol Outlet Operational Requirements) of the Zoning Regulations requires that the businesses be conducted in a manner that will not violate any provisions of the California Alcoholic Beverage Control Act. 9. The use is compatible with and will not adversely affect the livability or appropriate development of abutting properties and the surrounding neighborhood because conditions of approval for the Use Permit limit hours of operation and require business operations to minimize potential noise impacts. Special Considerations Overlay Findings 10. The project complies with Ordinance 1651 and conforms with the purpose, intent, and provisions of the S Overlay because it has been designed or conditioned to address potential impacts related to lighting and glare, privacy, noise, and traffic on the adjacent residences and San Luis Obispo Creek. The project will comply with Section 17.70.100 (Lighting and Night Sky Preservation) and utilize light fixtures that minimize spillover, operate in an existing building and screened outdoor areas, is conditioned to comply with Noise Ordinance, and has adequate parking onsite to accommodate the use. 11. As conditioned, the project will operate in compliance with maximum interior and exterior noise limits as indicated in Chapter 9.12 (Noise Control) of the Municipal Code and minimize potential impacts related to noise exposure on the adjacent residences and San Luis Obispo Creek. Conditions of approval for the Use Permit limit operations for live entertainment to indoors only on specific days with limited hours. Additionally, outdoor food, retail, and recreational activities operate at a noise level consistent with the City’s definition of ambient entertainment, are located a minimum of 180 feet away, and will be enclosed by solid fencing and/or buffered by existing buildings. DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA Resolution No. 11364 (2022 Series) Page 4 R 11364 SECTION 2. Environmental Review. The project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) described in Sections 15301 (Existing Facilities) and 15332 (In-Fill Development) of the CEQA Guidelines. The project is exempt under Section 15301 because it operates within an existing development with negligible expansion of the former retail use due to code requirements and conditions that address potential impacts related to traffic, noise, lighting, etc. to less than a significant level. The project is also exempt under Section 15332 because it is consistent with applicable General Plan policies and Zoning Regulations, is located on a site that is less than five acres in size (3.63 acres) surrounded by other urban uses (existing hotels/motels, restaurant, service station, and vehicle repair services), and is not a habitat for endangered, rare, or threatened species because it is a developed urban site. Approval of the project will not result in any significant effects relating to (1) traffic because the Traffic Division reviewed the project and determined that the proposed uses would not generate a number of trips that substantially exceeds trips associated with the former retail use (approximately 30 additional peak PM trips); (2) noise because proposed uses will occur within the project building and enclosed outdoor areas, which are buffered by existing buildings and accessory structures onsite. Proposed uses will occur a minimum of 180 feet away from the top of bank and approximately 250 feet away from the nearest residential property line to the south. The project shall comply with the noise thresholds outlined in the noise ordinance for the C-T zone, which are 60 dBA from 10 p.m. – 7:00 a.m. and 65 dBA from 7:00 a.m. – 10:00 p.m. To ensure ongoing compliance, Conditions No. 10–15 include limitations on indoor live entertainment and outdoor activities; (3) air quality because construction-related emissions associated with the project are temporary and limited to minor improvements to the project building and parking area. In addition, operation of the uses would not generate emissions that exceed thresholds outlined in the Climate Action Plan; or (4) water quality because the project is not proposing access to the creek. In addition, Condition No. 9 requires that any liquid discharge from the food trucks shall be contained and properly disposed of by the applicant. Lastly, the site is served by all required utilities and public services. SECTION 3. Action. 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 the project. The City Council hereby grants final approval to the project with incorporation of the following conditions: Planning Division – Community Development Department 1. Plans submitted for a building permit shall be in substantial conformance with the submitted project description and plans and incorporate the following conditions of approval. A separate, full-sized sheet shall be included in the working drawings submitted for a building permit that lists all conditions of approval. Reference shall be made in the margin of listed items as to where the requirements are addressed in the plans. DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA Resolution No. 11364 (2022 Series) Page 5 R 11364 2. The Use Permit shall be reviewed by the Community Development Director for compliance with conditions of approval, or to determine whether a modification to the Use Permit, is necessary upon significant change to the project as represented in the Staff Report dated September 20, 2022, or in the event of a change in ownership which may result in deviation from the project description or approved plans. 3. This Use Permit shall be reviewed by the Planning Commission if the City receives substantiated written complaints from any citizen, Code Enforcement Officer, or Police Department employee, which contains information and/or evidence supporting a conclusion that a violation of this Use Permit, or of City Ordinances, regulations, or Police Department resources (i.e., calls for service) applicable to operation of the business has occurred. At the time of the Use Permit review, to ensure on-going compatibility with nearby uses, conditions of approval may be added, modified, or removed, or the Use Permit may be revoked. 4. To address potential complaints and minimize the need for Police Department response to minor issues, an owner, manager, or designated representative shall be on the premises at all times and be available for contact by a City representative and/or adjacent property owner or tenant. The applicant shall provide and regularly update contact information to the City’s Police, Fire, and Community Development Departments. 5. The applicant shall be responsible for on-going security and safety training to accommodate changes in personnel. 6. The bar/tavern is not required to provide full menu service when alcohol is served. Food service shall instead be provided by the accompanying restaurant and food truck vendors. No alcohol may be served if no food service is provided. 7. The applicant is responsible at all times for verifying the legal age of patrons, for declining access to any person under the age of twenty-one (21) years old, for monitoring patrons’ on-site alcohol consumption, and for declining to serve alcohol to patrons who demonstrate signs of intoxication or impairment associated with alcohol consumption, based on training provided to all staff. 8. The applicant shall not permit its patrons to leave the licensed premises with any alcoholic beverage or to consume alcoholic beverages on any property adjacent to the licensed premises not under the control of the licensee(s). 9. The premises shall be maintained in a clean and orderly manner at all times. Liquid discharge (e.g., water, grease, oil, etc.) from the food trucks onto or into City streets, storm drains, catch basins, sewer facilities, or creek is not permitted. Any discharge shall be contained and properly disposed of by the applicant. 10. Amplified sound is not permitted outdoors. All doors and windows shall remain closed between the hours of 10:00 p.m. and 7:00 a.m. DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA Resolution No. 11364 (2022 Series) Page 6 R 11364 11. All outdoor activities, including the retail, recreational activities, and food trucks, shall cease by 10:00 p.m. nightly. 12. Live entertainment is only permitted in the indoor recreational area as shown on the floor plan represented in the submitted application materials and staff report dated May 11, 2022. Live entertainment shall only occur between the hours of 1:00 p.m. and 8:00 p.m. on Thursdays through Sundays. 13. Doors and windows shall remain closed at all times when live entertainment is occurring. 14. At all hours of operation outside the approved live entertainment hours of operation, entertainment shall maintain at an ambient level which is clearly incidental and allows for normal conversation levels, and for which no cover fee or ticket is required. 15. Live or amplified entertainment shall not be allowed in any outdoor areas. 16. Tables, chairs, and the general floor plan layout shall remain consistent with approved plans and may not be removed or modified for late night operation or special events unless approved by the Community Development Director in advance, or if approved by separate permit. 17. Prior to building permit issuance, the applicant shall provide a security plan to include a site plan/floor plan detailing the locations and duties of staff and shall include the proposed patron routes and regular maintenance/patrol of these routes, to the satisfaction of the Community Development Director, Police Chief, and Fire Chief. The applicant shall maintain and operate a video recording system that records activity at all entrances and exits during all business hours. The video shall be of a quality suitable for later identification of customers and staff. It will be recorded in a manner that may be retrieved and provided to police immediately upon demand. Video data shall be retained for a minimum of 72 hours or as otherwise required by law. This plan shall be reviewed and commented upon by the Police Department and Fire Department on an annual basis. 18. The maximum posted occupant load for each space shall not be exceeded at any time. This permit is strictly limited to allow only the occupant load for the premises as approved by the City of San Luis Obispo Fire Department. Occupant loads approved by the City of San Luis Obispo Fire Department shall be posted at all times. 19. The property owner shall be responsible for maintaining and updating the current parking calculation for the project upon the submittal of Planning and Building permits for tenant changes or improvements, and/or each business license, to ensure the site does not become under-parked. 20. All surface parking spaces must be available for common use and not exclusively assigned to any individual use. DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA Resolution No. 11364 (2022 Series) Page 7 R 11364 21. Plans submitted for a building permit shall clearly depict the location of all required short and long-term bicycle parking for all intended uses. Bicycle parking shall include the 30 additional bicycle spaces for the requested parking reduction. Plans shall show all areas designated for long-term bicycle parking such as bicycle lockers, interior spaces, or storage rooms. Short-term bicycle racks shall be consistent with the City Active Transportation Plan Design Guidelines and feature “hi-low style” campus racks (such as “Peak Racks”) or City-approved equivalent (inverted “U” rack designs shall not be permitted) and shall be installed in close proximity to, and visible from, the main entries into the buildings. Sufficient detail shall be provided about the placement and design of bike racks, lockers, and interior spaces to demonstrate compliance with relevant Engineering Standards and Community Design Guidelines, to the satisfaction of the Public Works and Community Development Directors. 22. The building permit submittal shall clearly indicate the location where food trucks will be parked and operated. Food trucks shall not park in an area that will impede into existing parking spaces or hinder maneuverability of the parking lot. 23. The building permit submittal shall include new six-foot-high solid fencing to enclose the outdoor recreational area labeled as Zone A on the project plans. Required fencing shall be of a material, finish, and color that is complementary to the existing development to the satisfaction of the Community Development Director. 24. Any new proposed signage shall be reviewed by the Planning Division to ensure appropriateness for the site and compliance with the Sign Regulations. Signage shall coordinate with building architecture and the type of land use. The Director may refer signage to the Architectural Review Commission for review if it is deemed excessive or out of character with the project. 25. The property owner shall enter into an open space agreement with the City to dedicate a portion of the commercial lot which lies within the C/OS zone as an open space easement. Prior to building permit issuance, the open space agreement shall be recorded in the office of the County Recorder. 26. Submit a line-of-sight analysis to confirm that the existing building is not visible from residential neighbors across the creek to the south. If it is visible, provide screening to restore and enhance the creekside vegetation. 27. Plans submitted for a building permit shall identify the location of commercial loading areas and hours of operation. 28. Provide a barrier at the rear of the site to block visibility of the parking area from residential neighbors across the creek to the south, to the satisfaction of the Community Development Director. 29. Truck deliveries to and from the site shall only occur between the hours of 7:00 a.m. and 10:00 p.m. for the project. DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA Resolution No. 11364 (2022 Series) Page 8 R 11364 30. Prior to final Planning inspection, sound attenuation features shall be incorporated in the proposed indoor recreation area to ensure compliance with the City’s Noise Ordinance. The sound attenuation features shall be utilized at all times when live entertainment is occurring. Engineering Division – Community Development / Public Works Departments 31. The proposed parking lot alterations require a building permit. The site improvements may be included with a standard tenant improvement submittal or could be by a separate parking lot permit. 32. The proposed parking lot layout, striping, and circulation shall comply with the City Parking and Driveway Standards unless a design exception is specifically approved. 33. The building permit/parking lot plan submittal shall include an overall campus plan to show all existing buildings, utilities, parking, driveway approaches, circulation aisles, site improvements, frontage improvements, fencing, access restrictions, and all trash enclosure areas, etc. for reference. 34. The site plan shall show the proposed commercial truck circulation and delivery areas, mobile food vendor truck storage and staging, and customer parking and circulation for reference. The proposed circulation plans shall be approved to the satisfaction of the Public Works and Community Development Departments. 35. The parking lot plan shall show the existing and/or proposed drainage systems for reference. The building plan submittal shall include a summary of any existing passive water quality treatment systems. A drainage system upgrade and/or Operation and Maintenance plan shall be included to ensure that a reasonable level of water quality treatment is provided prior to discharge to San Luis Creek. This item shall be reviewed and approved to the satisfaction of the Community Development and Utilities departments prior to building permit issuance. Utilities Department 36. If commercial uses in the project include food preparation, provisions for grease interceptors and FOG (fats, oils, and grease) storage within solid waste enclosure(s) shall be provided with the design upon submittal of the building permit. These commercial facilities shall also provide an area to wash floor mats, equipment, and trash cans. The wash area shall be inside, drained to the sanitary sewer, and an Industrial Wastewater Discharge Survey and Permit Application shall be submitted and permit obtained prior to issuance of occupancy permit. 37. In order to be reused, any existing sewer laterals proposed to serve the project must pass a video inspection, including repair or replacement, as part of the project. The CCTV inspection shall be submitted during the building permit review process to the Permit Technician in Community Development, Engineering Development Review for review and approval by the Utilities Department prior to issuance of a building permit. Existing laterals that are not proposed to be reused shall be abandoned at the City main consistent with City standards. DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA Resolution No. 11364 (2022 Series) Page 9 R 11364 38. The construction plans for sewer and water services shall be in accordance with the engineering design standards in effect at the time the building permit is approved. 39. Trash enclosure(s) shall conform the requirements by the San Luis Garbage Company and refuse bins shall be sized to provide a reasonable level of service. Separate refuse bins shall be accommodated within the site for the three (3) waste streams, trash, recycling, and organics. Enclosures shall be shown on plans prior to issuance of a building permit. Fire Department 40. Fire sprinklers conforming to NFPA 13 Standards are required for change of use. Fire sprinkler riser shall be located in an interior riser room with exterior door access. Backflow preventor and fire department connection shall be within 20 feet of Monterey right of way. 41. Exiting shall comply with Chapter 10 CBC for assembly occupancies. Required exiting from a public assembly space shall not pass through a storage area or S1 occupancy. DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA Resolution No. 11364 (2022 Series) Page 10 R 11364 Indemnification 42. The applicant shall defend, indemnify, and hold harmless the City and/or its agents, officers and employees from any claim, action or proceeding against the City and/or its agents, officers or employees to attack, set aside, void or annul, the approval by the City of this project, and all actions relating thereto, including but not limited to environmental review (“Indemnified Claims”). The City shall promptly notify the applicant of any Indemnified Claim upon being presented with the Indemnified Claim and the City shall fully cooperate in the defense against an Indemnified Claim. Upon motion of Vice Mayor Christianson, seconded by Council Member Marx, and on the following roll call vote: AYES: Council Member Marx, Pease, Shoresman, Vice Mayor Christianson, and Mayor Stewart NOES: None ABSENT: None The foregoing resolution was adopted this 20th day of September 2022. _________________________________ Mayor Erica A. Stewart ATTEST: _____________________________ Teresa Purrington 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 on ___________________. ___________________________ Teresa Purrington City Clerk DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA 9/26/2022 | 11:22 AM PDT