Final Minutes Planning Commission March 5, 2018 City of Orange Monday 7:00 p.m. PRESENT: STAFF PRESENT: Commissioners Correa, Glasgow, Gladson and Willits Anna Pehoushek, Assistant Community Development Director Gary Sheatz, Senior Assistant City Attorney Robert Garcia, Senior Planner Marissa Moshier, Historic Preservation Planner Simonne Fannin, Recording Secretary REGULAR SESSION 1.1 CALL TO ORDER: Chair Glasgow called the meeting to order at 7:00 p.m. 1.2 FLAG SALUTE: Chair Glasgow led the flag salute. 1.3 ROLL CALL: Commissioner absent 1.4 PUBLIC PARTICIPATION: 1.5 CONTINUED OR WITHDRAWN ITEMS: 1.6 PLANNING MANAGER REPORTS: Anna Pehoushek, Assistant Community Development Director announced that the Council Chamber will be renovated; therefore future Planning Commission meetings will be held in the Weimer Room until further notice. 2. CONSENT CALENDAR: 2.1 APPROVAL OF MINUTES FROM THE REGULARLY SCHEDULED MEETING OF FEBRUARY 21, 2018. Motion was made to approve the minutes as written: MOTION: SECOND: AYES: NOES: ABSTAIN: Commissioner Gladson Commissioner Willits Commissioners Correa, Gladson, Glasgow and Willits MOTION CARRIED. 1
3. NEW HEARING: 3.1 CONDITIONAL USE PERMIT 3055-17- TILTED KILT The applicant is requesting to modify certain existing conditions of approval associated with Conditional Use Permit (CUP) No. 2929-14 related to an Alcoholic Beverage Control (ABC) Type 47 License (On-Sale General for a Bona Fide Eating Place). LOCATION: 1625 WEST KATELLA AVENUE NOTE: The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State Guideline Section 15301 (Class 1 Existing Facilities) because the proposal only involves the modification of certain existing conditions of approval for the licensing of onsite sales and consumption of alcoholic beverages. There is no environmental public review required for a categorical exemption. RECOMMENDED ACTION: Staff recommends that the Planning Commission review the proposal and take the appropriate action. The Planning Commission can take one of the following actions: Direct staff to return with a resolution to approve one or more of the requested modifications to the existing conditions of approval with required findings and conditions. Direct staff to return with a resolution to deny the requested modifications to the existing conditions of approval with required findings. Robert Garcia, Senior Planner provided an explanation of the item consistent with the staff report. He explained the applicant is requesting modifications to Conditions 23, 26, 29 and 41, and noted that the Police Department is opposed to all of the requested modifications. Mr. Garcia also expressed Planning opposition to the modification of Condition 26 staff does support, as it has been the practice of the City to deny entrance fees for business with type 47 Licenses. The Commission and staff briefly discussed the following items: Placement and times that the portable bars would be utilized; the height of the glass walls and security of the portable bars while being used and where they would be stored when not in use. The City's history and view on cover charges. The genre and allowing up to three musicians with non-amplified music, along with a strict adherence to the cut off time. The Police Department's concerns about the request Boxing and UFC fights do not constitute a special event. 2
Michael Ayaz, the representative attorney of the applicant, OC Restaurant Group approached the podium. He explained the walls of the portable bars were measured from the outside because the Police Department wanted to make sure that people were not passing drinks over the wall. The bars are strategically located in order to avoid butting up the exterior walls. The portable would will only serve beer, no mixed drinks, be staffed at all times and would be used for excess flow on major events and holidays such as St. Patrick's Day. When not in use, bars would be securely stored and locked and will not have product inside of them. There would be a maximum of 24 events per year, but most likely it would be 14; the pay-perview events are one per month with an occasional month when there may be two events. The major reason for the request to allow a cover charge is to help offset charges for the sports driven events they show on their TVs that cost them $6-$12,000 per show. These pay-per-view events are a critical component of their sports themed business. Patrons of the Tilted Kilt have an expectation that the fights or pay-per-view events will be there. He reminded the Commissioners that minors would not be asked to pay a cover. The cover charge provides safeguards; it regulates the incoming people, and helps keep out the riffraff and people who go to their establishment and sit there all night without purchasing anything because they don't want to pay for the fight at home. There have been no major crimes in this area and the Tilted Kilt has been a responsible operator with no violations or overt calls for service. There is no nexus between fight night and criminal activity. After speaking with the Police Department about the cover charge, they developed suggested language to make the condition very specific; the requested language states they would only be allowed to charge a cover once or twice a month if the restaurant has to pay to view the event on their TVs. There are other establishments in the City that are illegally charging covers and they have done extensive research on other establishments in the City that have a cover charge. If Lucky Strike is allowed to have a cover charge because they provide a two week notice to the Police Department, then Tilted Kilt should be given the same opportunity and consideration. They would entertain the same noticing process in order to collect a cover. The State has no limitation for any type 47 License that prohibits a cover charge. The Stadium Promenade Center is an entertainment destination and The Tilted Kilt would like to provide 1 to 3 musicians for ambient sound on the weekends; there would be no dancing. They would operate under the noise ordinance and know they can be cited for violations. The City can always pull the CUP if they are in violation. They would make sure the time restrictions are strictly adhere to. They have a good relationship with other uses in the Center who are all supportive of the request. He asked the Commission to consider giving them a one-year trial period. The Commissioners voiced some of their concerns and opinions: Sound from patio music could possibly disrupt other local businesses and the planned apartment complex that will be built in the future. Providing pay-per-view events is a business decision and the Restaurant should be able to absorb the cost. Pay-per-view attract a different kind of crowd. 3
Perhaps the City could allow no more than one event per month with a six-month review. The Resolution and conditions of approval should be fine-tuned in order for the proposed changes to be acceptable. A not to exceed amount needs to be determined for the cover charge. Commissioner Willits stated he conducted a site review and was pleasantly surprised to find a higher caliber clientele, and neat and clean facility. He does not have any problems with the requested changes to the conditions and thinks it's time to look at updating City expectations. He agrees with the sixmonth timeframe and supports the request. Commissioner Glasgow is supportive of one to three non-amplified musicians on Friday Saturday and Sunday; Thursday night should be cut out unless it is a holiday. He understands the business would like to recoup some of its outlay; however he doesn't think the cover would reduce the number of clientele who just go to watch the fight without a purchase. He is supportive of the two week notice to the Police Department for larger events in order to allow the Police Department to step up enforcement if needed. Commissioner Gladson stated she would like to see the revised language of the conditions and she directed staff to bring back a final resolution and conditions for the Commission's approval. Gary Sheatz, Senior Assistant City Attorney, explained that Lucky Strike obtained approval of special events with two week advance notice to the Police Department in order to provide the Department time to prepare for the additional enforcement that may be needed. He stated that, Condition 5 of the Tilted Kilt proposed Resolution places a one-year review on the Conditional Use Permit; however, the Commission has the latitude to impose a six-month review if they choose to do so. Rick Blake, attorney and partner of Mr.Ayaz spent 10 years with the Department of Alcoholic Beverage Control. He stated that it is evident that when fights are televised at the restaurant, people come in, sit and nurse a beverage throughout the entire fight and take up space that a paying customer would use. The cover is not a money making proposition; it is designed to help offset the costs. Tilted Kilt is a public eating establishment with a Type 47 License which allows for the purchase of alcohol with or without food. Lieut. Dennis Gomez, Orange Police Department, stated the Police Department is not opposed to the having a solo, non-amplified performer on the patio consistent with the other establishments in the Stadium Promenade Center. He stated that the Police Department is not opposed to the location of the portable bars, but would like to know how they will be secured. The Police Department stands strong in opposing the cover charge because it has proven to not be a good practice in the City and is not consistent with what they have implemented with other businesses 4
in the City. He added he has not seen a request for a special event permit from Lucky Strike in the last two and half years and Buffalo Wild Wings does not promote the cover charge. If the Tilted Kilt would like to have events with the two week notice, he needed to review that request and return with a final decision at a later date. A motion was made to direct staff to return with a resolution to approve all of the changes relating to the Conditions of Approval requesting modifications with the required findings, particularly Condition number 26 regarding increasing security personnel; modifying condition number 5 to one event per month, and requiring with a six-month review period for the CUP. MOTION: SECOND: AYES: NOES: ABSTAIN: Commissioner Gladson Commissioner Willits Commissioners Correa, Gladson, Glasgow and Willits MOTION CARRIED. 5
3.2 CONDITIONAL USE PERMIT 3055-17-URTH CAFFE The applicant is requesting an Alcoholic Beverage Control (ABC) Type 41 License (On-Sale Beer and Wine Eating Place) to serve beer and wine at a new restaurant (Urth Caffe) in the Plaza. LOCATION: NOTE: 100 W. CHAPMAN AVENUE The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines 15301 (Class 1 Existing Facilities) because the project consists of licensing the sale of alcoholic beverages at an existing restaurant and results in negligible or no expansion of use beyond that existing at the time of the City s determination. RECOMMENDED ACTION: Adopt Planning Commission Resolution No. PC 06-18 approving Conditional Use Permit No. 3055-17 for the sale of beer and wine under a type 41 (on-sale beer and wine eating place) alcoholic beverage control license within a new restaurant at 100 w. Chapman Avenue. Marissa Moshier, Historic Preservation Planner, provided an explanation of the item consistent with the staff report. She stated the Police Department is in opposition due to the higher than average crime rate, an over concentration of ABC licenses in the area and its close proximity to several establishments with a type 48 license. Steve Rawlings, representative for the Urth Café, stated they concur with staff's findings and draft conditions of approval. He stated they find more and more people are using other methods of transportation rather than driving to the location and looking for a parking spot, thus reducing the need for as much parking. He added there will be no alcohol on the outside patio. Commissioner Gladson asked the restaurant to limit alcohol-related window signage visible through the windows. Officer Murphy, Orange Police Department, stated the Police Department do not support the request due to the over concentration in licenses and crime statistics with alcohol related arrests and concerns that the limited parking will cause patrons that have been drinking to overflow into the residential neighborhoods and possibly create disturbances. 6
A motion was made to Adopt Planning Commission Resolution No. PC 06-18 approving Conditional Use Permit No. 3055-17 for the sale of beer and wine under a Type 41 (on-sale beer and wine eating place) alcoholic beverage control license within a new restaurant at 100 W. Chapman Avenue. MOTION: SECOND: AYES: NOES: ABSTAIN: Commissioner Correa Commissioner Gladson Commissioners Correa, Gladson, Glasgow and Willits MOTION CARRIED. 7
4. ADJOURNMENT: A motion was made to adjourn at 9:30 p.m. The next regular meeting is scheduled on Wednesday, March 19, 2018, at 7:00 p.m. MOTION: SECOND: AYES: NOES: Commissioner Glasgow Commissioner Correa Commissioners Correa, Gladson, Glasgow and Willits Meeting adjourned at 9:30 p.m. MOTION CARRIED. 8