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AGENDA ITEM: 4. DATE: 02-26-18 STAFF REPORT CONDITIONAL USE PERMIT NO. 17-32 DATE: TO: FROM: APPLICANT: Lancaster Planning Commission Development Services Department, Community Development Division Daniel Tufts, Complexity Wine LOCATION: 2010 West Avenue J-8, Suite 101 REQUEST: The applicant is requesting a conditional use permit (CUP) to allow the sale of wine for off-site and on-site consumption (Type 20, Type 41 and Type 42 Alcoholic Beverage Control (ABC) license) within an existing space approximately 2,000 square-foot tenant space and a waiver for distance requirements, in the Commercial Planned Development (CPD) Zone RECOMMENDATION: Adopt Resolution No. 18-04 approving Conditional Use Permit No. 17-32. BACKGROUND: On April 18, 2005, the Planning Commission approved CUP 04-10 for the construction of a 177,830 square-foot commercial retail center with a four story hotel. In 2015, the multi-tenant shopping center, approximately 12,916 square feet in size, was constructed on the subject property. On November 16, 2015, the Planning Commission approved a CUP for onsale beer and wine, ABC License Type 41, for Gold Fish restaurant, a bona fide restaurant in Suite 113 within the constructed shopping center. Red Salmon restaurant is currently operating under the approved CUP and ABC License. GENERAL PLAN DESIGNATION, EXISTING ZONING AND LAND USE: The subject location is designated C (Commercial) by the General Plan, is zoned CPD (Commercial Planned Development), and is an existing vacant tenant space. The General Plan designation, zoning, and land use of the surrounding properties are as follows:

PC Staff Report Page 2 GENERAL PLAN ZONING EXISTING USE NORTH C C Gas Station SOUTH C CPD Vacant Land EAST C CPD Vacant Land WEST C CPD Hotel ANALYSIS: Project Description The applicant, Complexity Wine, is requesting a CUP in order to sell wine for on-site and off-site consumption for a 2,000 square-foot tenant space within a multi-tenant shopping center. Complexity Wine would operate as a wine lounge and cheese shop that would provide a full food menu, variety of wines, and wine education where employees would educate patrons on how to cook with wine and pair wine with food. The tenant space comprises of a 1,503 square-foot wine lounge, a 17 square-foot wine tasting counter, and a 100 square feet of retail sales and display of wine. The remainder of the tenant space would be utilized for ancillary purposes, such as the bathroom, kitchen, office, and service counter. Hours of Operation: The proposed hours of operations would be Monday through Thursday 3:00 p.m. to 10:00 p.m., Friday from 3:00 p.m. to 11:00 p.m., Saturday from 12:00 p.m. to 11:00 p.m., and Sunday from 12:00 p.m. to 8:00 p.m. Licensing: The applicant is requesting three different types of ABC licenses: Type 20-Off Sale Beer and Wine Type 41-On Sale Beer and Wine-Eating Place Type 42-On Sale Beer and Wine- Public Premises The ABC licenses are correlated to the three different areas within the tenant space: wine lounge, wine tasting counter, and the wine retail sales and display. The Type 41 license is required for the wine lounge, which includes 617 square feet of an indoor lounge, 577 square feet of an outdoor patio, and a 309 square-foot cellar area. These areas would operate as a full-service restaurant, serving food and wine. The Type 42 license is required for the wine tasting counter, where no food would be consumed. The Type 20 license is required for the retail sale and display of wine that would only use five percent of the total square footage of the tenant space. General Plan Consistency The proposed project was analyzed for consistency with the City of Lancaster General Plan 2030. The proposed sale of wine for on-site and off-site consumption would be consistent with the C General Plan land use designation and the types of uses envisioned therein. The C land use designation includes a broad spectrum of uses, including regional, community, neighborhood, and highwayoriented uses (General Plan Objective 17.1). The proposed use is consistent with the following Goals and Actions of the General Plan:

PC Staff Report Page 3 Specific Action 16.1.3(d): Specific Action 16.1.3(f): Goal 17: Specific Action 17.1.1(a): Specific Action 17.1.3(a): To revitalize and enhance local commerce, encourage the establishment and expansion of local businesses, and development of commercial and industrial properties which produce retail sales taxes, transient occupancy taxes, and assessed valuation by providing assistance with financing, processing, and negotiating. By providing financing, processing negotiating assistance, and streamlining of the development review process as feasible, encourage the attraction of desirable retail uses that offer goods and services not now locally available. To establish a variety of land uses which serve to develop Lancaster into a balanced and complete community in which people live, work, shop, and play. Through the development review process, ensure that all proposed development is consistent with the General Plan text, land use map, and the intensity standards outlined in Table VIII-1. Review the land uses and development requirements of commercial zones to ensure that they consistent with the objective of creating a functional hierarchy of neighborhood, community, and regional commercial centers, along with appropriate freestanding commercial uses. The proposed project would promote the local economy by permitting a wine lounge and cheese shop in an appropriate location that would not negatively affect the surrounding properties. The proposed location is within an existing shopping center. The proposed use would be a compatible fit within the multi-tenant building because it would provide similar services. Complexity Wine would be the first wine lounge and cheese shop within the City of Lancaster, providing a new type of business. Approving the request would also support economic opportunities for small business and new businesses and provide for a diverse local economy. Compliance with the Lancaster Municipal Code (LMC) The proposed project is consistent with the zoning designation of CPD. The proposed use would operate within an existing building with the addition of an outdoor patio area. The project complies with all applicable development standards and guidelines including, but not limited to, lot dimension, building height, and setbacks, as the building was previously approved and permitted. While the existing building is in compliance with the LMC, the proposed alcohol sales require the approval of a CUP by the Planning Commission. Separation Distance Requirements The City s alcohol ordinance, LMC Section 17.42.040, established separation distance requirements between certain types of alcohol sellers and uses identified as sensitive uses and from other alcohol sellers. This provision in the ordinance has enacted regulations for alcohol sales, to deal with the potential negative external effects on the adjacent areas that certain alcohol establishments can create. These effects can include noise, loitering, trash, and debris, or increased need for police services, but

PC Staff Report Page 4 are not intended to include more social concerns (whether the consumption of alcohol in the community is good or bad, for example). A distance waiver is required due to the proximity of an existing primary alcoholic beverage establishment within the 500-foot separation requirement. The Shell gas station (44015 20 th Street West) currently has an active Type 20 ABC license, which is approximately 109 feet away from the proposed use. Therefore, approval of the CUP will require a waiver from this requirement. Request for Waiver LMC Section 17.42.040. contains a provision to allow for a waiver from the normal distance requirements of the alcohol ordinance. This provision allows discretion to be applied when an application of the requirements would not follow the intent of the ordinance. The waiver requires that two findings are made: The alcoholic beverage establishment will serve a specific community need; The distance waiver approved for the alcoholic beverage establishment is not expected to result in an adverse effect on adjacent property, uses, or residents The proposed use would serve a specific community need, as it is the first wine lounge and cheese shop to locate within the City of Lancaster. It would provide a combination of services, including a full-service restaurant, wine tasting, wine education, and retail sales and display of wine. The 1,503 square-foot full-service restaurant area would utilize the majority of the tenant space that would offer wine tasting and a full food menu that includes items such as salads, paninis, flat breads, macaroni and cheese, and grilled meats and veggies. This area would also provide services where employees would educate the patrons on how to use wine in cooking and paring with meals. The wine tasting area would limited to 17 square feet. Retail sales and display of wine would be dedicated to only five percent of the floor space. Complexity Wine is not expected to result in an adverse effect on adjacent properties, uses, or residents. The proposed project is located within a multi-tenant building intended for commercial uses, such as eating and drinking establishments, retail stores, offices, and personal services. Properties adjacent to the proposed project are zoned CPD and the closest residential uses are approximately 355 feet away from the proposed use. TownPlace Suites is also located between the residential uses and the proposed project that provide screening and obscures the view between the two uses. The applicant would be limited to their proposed hour of operations and live entertainment would not be permitted. Safety The proposed project is located in the CPD Zone, which permits alcoholic beverages to be sold, served, or given away for off-sale and on-sale consumption, as the case may be, upon obtaining a CUP. Planning staff has consulted with the Lancaster Sheriff s Station regarding the sale of alcohol at this location. The Lancaster Sheriff s Station provided conditions to the proposed project that are implemented in the conditions of approval. As long as the applicant agrees with the conditions of approval, then the Lancaster Sheriff s Station would not have any concerns. Based on the information provided by the Lancaster Sheriff s Station, staff does not anticipate the issuance of an ABC license at this location would adversely affect the nearby residents and facilities primarily devoted to use by children, families, and the general public.

PC Staff Report Page 5 PUBLIC IMPROVEMENTS: The project site is south of West Avenue J-8, and east of 20 th Street West, which are improved with two travel lanes in each direction. All utilities are available to serve the site. ENVIRONMENTAL REVIEW: The proposed project is not subject to the California Environmental Quality Act (CEQA) per Section 15061(b)(3), which states that where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. As the proposed project is a use permit for the sale of alcohol in a vacant tenant space within an existing building, it would not create any impacts on environmental resources. LEGAL NOTICE: Notice of Public Hearing was mailed to all property owners within a 500-foot radius of the project, posted in three places, posted on the subject property, and noticed in a newspaper of general circulation per prescribed procedure. CONCLUSION: The proposed wine sales for on-site and off-site consumption is compatible with the kinds of uses envisioned for the CPD zoning and the C General Plan land use designation, as outlined in the LMC and the General Plan, and is not expected to adversely affect nearby residences or businesses. The conditions of approval would ensure that the safety and general welfare of the surrounding area would be maintained. Therefore, staff is recommending approval of the proposed request. Respectfully submitted, Cynthia Campaña, Associate Planner Attachment: Resolution No. 18-04 cc: Applicant Engineer

RESOLUTION NO. 18-04 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LANCASTER, CALIFORNIA, APPROVING CONDITIONAL USE PERMIT NO. 17-32; TO ALLOW FOR THE SALE OF WINE FOR OFF-SITE AND ON-SITE CONSUMPTION (TYPE 20, TYPE 41, TYPE 42 ABC LICENSE) LOCATED AT 2010 WEST AVENUE J-8, SUITE 101 (APN: 3129-017-043) WHEREAS, a conditional use permit has been requested by Daniel Tuft, Complexity Wine, to allow the sale of wine for off-site and on-site consumption for (Type 20, Type 41 and Type 42 Alcoholic Beverage Control (ABC) license) within an approximately 2,000 square-foot tenant space and a waiver for distance requirements, in the Commercial Planned Development (CPD) Zone. WHEREAS, an application for the above-described conditional use permit has been filed pursuant to the regulations contained in Article I of Chapter 17.32 and Chapter 17.42, of the Lancaster Municipal Code; and WHEREAS, a notice of intention to consider the granting of a conditional use permit has been given, as required in Article V of Chapter 17.32 of the Lancaster Municipal Code, and in Section 65905 of the Government Code of the State of California; and WHEREAS, staff has performed the necessary investigations, prepared a written report, and recommended approval of this conditional use application, subject to conditions; and WHEREAS, public notice was provided as required by law, and a public hearing was held on ; and WHEREAS, the proposed project is not subject to the California Environmental Quality Act (CEQA) per Section 15061(b)(3), which states that "where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA." The proposed project is a use permit for off-sale and on-sale of wine in a vacant tenant space within an existing building; therefore, no impacts on environmental resources would be expected to occur; and WHEREAS, this Commission hereby adopts the following conditional use permit findings, per Section 17.32.040 in support of approval of this application: 1. The proposed use will not be in substantial conflict with the adopted general plan for the area because the proposed project would be in conformance with the General Plan land use designation of C (Commercial) for the subject property.

PC Resolution No. 18-04 Page 2 2. The requested at the location proposed will not: a. Adversely affect the health, peace, comfort, or welfare of persons residing or working in the surrounding area because the proposed location is within a multi-tenant building intended for commercial uses. The adjacent properties are zoned CPD with commercial development. The applicant is also conditioned to comply with a list of standard conditions from the alcohol ordinance to ensure a nuisance-free operation of the proposed use. b. Be materially detrimental to the use, enjoyment, or valuation of property of other persons located in the vicinity of the site because the proposed project would be located within an existing building within the CPD zone. The CPD zone allows for commercial uses, such as drinking and eating establishments, retail stores and offices, and personal services. The proposed use would be consistent with the zone and surrounding properties. c. Jeopardize, endanger, or otherwise constitute a menace to the public health, safety, or general welfare because the applicant would install simple safe security within the tenant space and on-site staff would be trained to handle any noise concerns, or any other malicious behavior. In addition, adequate sewer, water, drainage, and improvements are available to serve the project. 3. The proposed project is adequate in size and shape to accommodate the yards, walls, fences, parking and loading facilities, landscaping, and other development features because the existing building was previously approved and permitted complying with development standards and guidelines. 4. The proposed site is adequately served: a. By 20 th Street West and additionally by West Avenue J-8, which are of sufficient width and improved to carry the daily vehicle trips generated by proposed use and b. By other public or private service facilities, including sewer, water, fire, and police services, as required. WHEREAS, this Commission hereby adopts the following conditional use permit findings, per Section 17.42.050 in support of approval of this application: 1. The proposed use with a Type 20, Type 41, and Type 42 ABC license would be located in the CPD zone, which permits alcoholic beverages to be sold, served, or given away for onsale or off-sale consumption upon obtaining a conditional use permit. 2. The proposed use will not adversely affect the nearby facilities primarily devoted to use by children, families, and the general public after giving consideration to distance or proximity of the proposed alcoholic beverage establishment to residential districts, school (public or private), day care centers, public parks, playgrounds and other recreations facilities, churches or other places of religious worship, hospitals, clinics, or other health care

PC Resolution No. 18-04 Page 3 facilities. The applicant would comply with a list of standard conditions from the alcohol ordinance for off-sale and on-sale beverage establishments. It would not adversely affect the nearby residences because the sale wine would be restricted to between the hours of Monday through Thursday 3:00 p.m. to 10:00 p.m., Friday from 3:00 p.m. to 11:00 p.m., Saturday from 12:00 p.m. to 11:00 p.m., and Sunday from 12:00 p.m. to 8:00 p.m. The majority of the space within the proposed project would operate as a full-service restaurant with 17 square feet of wine tasting and only five percent of the total square footage of the tenant space would be dedicated to retail sale and display of wine. The proposed project is also not located within the distance requirement for schools, parks, and residential uses. 3. The proposed use serves the public convenience and necessity based on all factors outlined in Section 17.42.060 of the LMC. NOW, THEREFORE, BE IT RESOLVED: 1. This Commission hereby approves Conditional Use Permit No. 17-32, subject to the conditions attached hereto and incorporated herein. PASSED, APPROVED and ADOPTED this 26 th day of February 2018, by the following vote: AYES: NOES: ABSTAIN: RECUSED: ABSENT: ATTEST: JAMES D. VOSE, Chairman Lancaster Planning Commission LARISSA DE LA CRUZ, Community Development Manager City of Lancaster

ATTACHMENT TO PC RESOLUTION NO. 18-04 CONDITIONAL USE PERMIT NO. 17-32 CONDITIONS LIST GENERAL ADVISORY 1. All standard conditions as set forth in Planning Commission Resolution No. 15-28 for conditional use permits shall apply except for Condition Nos. 6 and 19-23. 2. All standard conditions as set forth in Planning Commission Resolution No. 15-29 for conditional use permits shall apply except for Condition Nos. 22-24 and 26-27. ALCOHOL CONDITIONS 3. The applicant is hereby granted approval for the sale of wine for on-site and off-site consumption in a 2,000 square-foot tenant space, located at 2010 West Avenue J-8, Suite 101. The applicant is permitted to only sell wine in accordance with the approved plans and project description on file at the City s Development Services Department-Planning Section. 4. The Type 20, 41, and 42 Alcohol Beverage Control (ABC) licenses are limited to: Type 20 ABC license is limited to 100 square feet Type 41 ABC license is limited to 1,503 square feet Type 42 ABC license is limited to 17 square feet 5. This approval shall not permit the subject tenant space to be used as a bar, tavern, or other establishment used primarily for the sale of dispensing of alcoholic beverages for on-site consumption. 6. The on-site and off-site sale and consumption of wine shall be limited to the hours of operation of Complexity Wine. Standard hours of operation are Monday through Thursday 3:00 p.m. to 10:00 p.m., Friday from 3:00 p.m. to 11:00 p.m., Saturday from 12:00 p.m. to 11:00 p.m., and Sunday from 12:00 p.m. to 8:00 p.m. Any changes in the hours of operation are subject to approval of the Development Services Director and may require further review. 7. All employees who serve or sell alcoholic beverages shall successfully complete a responsible beverage service training provided by the Department of Alcoholic Beverage Control, or equivalent training within 90 days of hire. Records of such training shall be maintained on the premises and are made available to the City of Lancaster, or the Los Angeles County Sheriff s Department upon request. 8. Alcoholic beverages shall not be permitted to be consumed in the parking area or other exterior areas of the premises, except for designated outdoor areas approved as part of application and licensed by the Department of Alcoholic Beverage Control.

Attachment to PC Resolution No. 18-04 Page 2 9. Special events/night club type entertainment shall not be permitted. 10. Loitering shall be prohibited on or around the premises or the area under control of the owner. Professional-quality signs shall be posted. 11. The exterior of the premises shall be kept free of litter, and graffiti shall be removed within 72 hours. 12. Security cameras shall be installed that cover the interior eating area and outdoor parking area and the tapes/cds/recordings shall be kept for at least two weeks and be made available to the Los Angeles County Sheriff s Department upon request.