ADMINISTRATIVE HEARING AGENDA REPORT

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Meeting Date: October 8, 2018 Item Number: 1 ADMINISTRATIVE HEARING AGENDA REPORT SUBJECT: Establish a Night Club use providing a disc jockey and dancing within an existing restaurant in the Downtown Commercial () Zone ADDRESS: 1023 Chorro FILE NUMBER: USE-1665-2018 BY: Walter Oetzell, Assistant Planner Phone: 781-7593 E-mail: woetzell@slocity.org FROM: Tyler Corey, Principal Planner SITE DATA Applicant Representative Robin Covey Craig Smith Complete Date August 15, 2017 General Plan Zoning Environmental Status General Retail Downtown Commercial () Exempt per CEQA Guidelines 15301 (Existing Facilities) BACKGROUND Robin Covey, represented by Craig Smith, has filed an application for an administrative use permit to allow Night Club activities to be conducted at the Luna Red Restaurant at 1023 Chorro. A Night Club may be allowed in the Downtown Commercial () Zone if the Community Development Director approves an administrative use permit (Zoning Regulations 17.22.010). Currently, no active use permit allows Night Club activities at this location. PROJECT INFORMATION Proposed activities. The entertainment activities proposed to be conducted under the Night Club use permit are set out in the Description of Entertainment Activities submitted by the applicant (Attachment 1), and are summarized in Table 1 below. They will be conducted on Friday and

USE-1665-2018 (1023 Chorro) Page 2 Saturday nights, and are limited to the main dining area of the restaurant. 1 No entertainment activities are proposed under this permit for the outdoor patio area. Table 1: Proposed Night Club entertainment 10:30 pm Provide amplified (DJ) music, with dancing in the main dining area, cleared of tables and chairs to create a dance floor 12:45 am Conclude amplified music and dancing and announce last call for service of alcoholic beverages 1:00 am Cease service of alcoholic beverages and conclude Night Club entertainment activities EVALUATION Downtown Goals and Policies. The Community Goals for Society and Economy set out in the Land Use Element (LUE) of the City s General Plan state that San Luis Obispo should serve as the County s hub for entertainment (Goal 27), and that Downtown serves as the entertainment center of the City for its residents, and providing for visitor appeal (LUE 4.1). Entertainment facilities, including nightclubs, shall be in the Downtown (LUE 4.3). The Downtown should be a pleasant and safe place at all times (LUE 4.8), and obtrusive sounds, including loud music, should be minimized. (LUE 4.18). Impacts from downtown drinking establishments are to be managed to ensure that the late-night environment is safe and pleasant (LUE 4.29). Noise. Luna Red is located in the Downtown, at the southwest corner of Chorro and Monterey Streets, in the Downtown-Commercial () Zone, just under 500 feet away from the nearest residential zone (see Attachment 3). The proposed entertainment activities are limited to the interior of the restaurant, minimizing the potential for obtrusive sound impacts, and operation of the business remains subject to compliance with the City s Noise Control regulations (SLOMC Ch. 9.12). A standard condition of approval (# 9) directs the applicant to make all reasonable efforts to minimize the potential for noise impacts by, for example, ensuring that windows and doors are closed during the conduct of entertainment activities. There is an outdoor patio area at the north side of the property, adjacent to Mission Plaza, and as noted above, no entertainment activities are proposed under this permit for the patio area. Any entertainment provided is thus limited to ambient entertainment allowing for normal conversation levels, as defined in the City s Zoning Regulations (Ch. 17.100 Definitions). Compatibility. Several standard conditions of approval are suggested in order to ensure that the night club activities are conducted in a manner that will be compatible with surrounding businesses and to provide a safe and pleasant environment. The applicant has submitted a Security Plan (Attachment 2) which will be implemented during conduct of entertainment activities 1 The location of entertainment activities under this permit are shown on Sheet C-0.0 (Overall Location of Proposed Entertainment) of the plans submitted with this application, within the area labeled Night Club, and a small adjacent area labeled as Proposed DJ Area.

USE-1665-2018 (1023 Chorro) Page 3 (Condition #1). Any queueing to enter the restaurant will be controlled so as to keep the sidewalk and entries to neighboring businesses clear (Condition #7). The applicant is directed to provide a point of contact for neighboring businesses and for City staff, to address complaints and minimize the need for Police response to minor issues (Condition #8). Should it be necessary, in response to public complaints or observation of nuisance conditions, the permit may be reviewed by the City, modified to address such problems and, if necessary to revoke the permit (Condition #11). RECOMMENDATION Approve the application, granting an administrative use permit allowing Night Club activities to be conducted at this location, based on the following findings and subject to the conditions of approval below: Findings 1. The proposed activities are consistent with applicable goals and policies of the General Plan. The Downtown location of the restaurant is consistent with Policies 4.1 and 4.3 of the Land Use Element, identifying Downtown as the entertainment center of the City and directing entertainment facilities, including nightclubs, to locate there. Conditions of approval requiring implementation of a Security Plan and noise control measures, limiting the location and nature of entertainment activities allowed and requiring neat and orderly maintenance of the site, further Policies 4.8, 4.18, and 4.29, encouraging Downtown as a place that is pleasant and safe at all times, minimizing obtrusive sounds, including loud music, and managing impacts to ensure that the late-night environment is safe and pleasant. 2. As conditioned, the proposed use will not be detrimental to the health, safety or welfare of persons working or living at the site or within the vicinity. Conditions of approval require the implementation of a Security Plan including provisions for crowd control, maintenance of clear exits and exit pathways, prevention of over-intoxication of patrons and service to underage patrons, noise reduction, and staff training. Entertainment activities allowed under this permit are limited to specified areas within the restaurant building and other entertainment is limited to ambient noise levels. The use permit is subject to review and modification or revocation in response to complaint or observation of violation of its terms and conditions. 3. The project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA). It consists of the continuing operation of a restaurant, with negligible expansion of the use to include Night Club entertainment activities; an Existing Facility as described in CEQA Guidelines 15301. Conditions 1. Security Plan. The Security Plan submitted with this permit application shall be implemented during the conduct of Night Club activities. The applicant shall notify the Community Development Director of proposed modifications to the Security Plan. Significant modifications of the plan, as determined by the Director, are subject to the review and approval of the Community Development Director, Police Chief, and Fire Marshal. The applicant shall be responsible for providing an up-to-date copy of the Security Plan for inclusion in the use permit record file.

USE-1665-2018 (1023 Chorro) Page 4 2. Location and type of entertainment. Entertainment shall be located only in the area(s) specified on the floor plans approved by the Community Development Department under this application, and shall be limited to only those types of entertainment described in the approved project description. 3. Ambient entertainment. Except as described in the approved project description and otherwise provided in these conditions of project approval, all entertainment shall be limited to Ambient entertainment as described in the City s Zoning Regulations (Chapter 17.100 Definitions) 4. Other entertainment. Entertainment that is described in the approved project description and which exceeds sound levels described in the definition of Ambient entertainment provided in the City s Zoning Regulations (Chapter 17.100 Definitions) shall only be conducted on Friday and Saturday nights between the hours of 10:30 p.m. and 12:45 a.m. 5. Noise Control. Entertainment under this permit shall be conducted in a manner compatible with nearby residences and businesses. Any violation of the City s Noise Control regulations (SLOMC Ch. 9.12) committed in the course of conducting entertainment activities under this use permit shall constitute grounds for suspension or revocation of the permit, pursuant to Zoning Regulations 17.72.020 (Enforcement Violations). 6. Noise and crowd impacts. The applicant shall make all reasonable efforts to minimize the potential for adverse noise and crowd impacts on adjacent establishments and nearby residences, including, but not limited to, ensuring that windows and doors are closed during the conduct of entertainment activities. 7. Queuing. The applicant shall manage and control outdoor crowds and queuing that result from conduct of entertainment under this permit. Any line of patrons awaiting entry shall be maintained in an orderly manner that does not block public access to, or use of, the sidewalk, street, or other public right-of-way. A clear area for queueing shall be delineated. This area shall generally maintain a 6-foot clear area for pedestrian passage, but may be reduced to not less than a 4-foot clear area where sidewalk furniture, trees, or other obstructions will not reasonably allow for a larger clear area for passage. The queue shall not block or impair entry into or exit from operating businesses in the vicinity and shall have gaps, as appropriate, to allow pedestrians to circulate unobstructed through and across the line. 8. Point of contact. To address complaints and minimize the need for police response to minor issues, an owner or manager shall be on premises at all times when entertainment activities are conducted under this permit, and shall be available to be contacted by a City representative 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 and adjacent property owners and tenants. 9. Neat and orderly. The site shall be maintained in a neat and orderly manner at all times, including daily cleanup maintenance of public space adjacent to the business. Failure to adequately maintain the premises in this manner shall constitute grounds for revocation of this use permit. 10. Modification or change. The applicant shall notify the Community Development Director of modification or change in the entertainment activities conducted under this permit, such

USE-1665-2018 (1023 Chorro) Page 5 as their type(s), location(s), frequency, or duration. Changes or modifications that significantly deviate from the approved project description or approved plans, as determined by the Director, are subject to the approval of the Director by formal modification of this use permit or by consideration of a new use permit. 11. Review, modification, and revocation. A review hearing may be scheduled at any time upon receipt of substantiated written complaints or other evidence from citizens or from the Police Department or other City staff that the conduct of entertainment activities is not in compliance with the terms and conditions of this use permit, with City ordinances or regulations, or with other applicable regulations. The Hearing Officer will determine if the use is operating in compliance with said terms, conditions, ordinances, or regulations, and may modify the terms and conditions of this permit, or may, pursuant to Zoning Regulations 17.72.020 (B) (2), revoke the use permit. ATTACHMENTS 1. Description of Entertainment Activities (Applicant) 2. Security Plan 3. Aerial view of vicinity ACTION: Approve Approve as modified Deny Continue to: to allow Continue indefinitely to allow: Hearing Officer

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ATTACHMENT 3 R-3 R-2 R-3 LL MI BR R-4 R-4-H L PA M R-4 -S-H CH OR A SE ER TE RE N MO Y SH PF-H O IFI C BR OA RO D R GA DE O R-3 O C PA -PD T UR R MA R MO 500 feet PF-H GU HI RO R-3-H PF-H N O S D Y -S-H DE R GA CO OA RE R-3-H-MU TE O OS R-3-H R-3 O-H N MO -S-H PF-H PO NI M O N RO