Planning Commission Agenda Item TO: THRU: FROM: Chair Glasgow and Members of the Planning Commission Anna Pehoushek Assistant Community Development Director Monique Schwartz Associate Planner SUBJECT PUBLIC HEARING: Conditional Use Permit No. 3052-17 United Rose Deli and Pho Restaurant 808-816 E. Lincoln Avenue. SUMMARY The applicant is requesting to expand an existing dine-in restaurant and to sell alcoholic beverages under a Type 41 (On-Sale Beer and Wine - Eating Place) Alcoholic Beverage License in conjunction with the service of food. Conditional Use Permit (CUP) No. 3052-17 will replace existing CUP No. 451, which permitted the sale of beer and wine under an alcoholic beverage Type 41 (On-Sale Beer and Wine Eating Place) License within suites 812-816 E. Lincoln Avenue. RECOMMENDED ACTION Adopt Planning Commission Resolution No. PC 30-17 entitled: A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ORANGE APPROVING CONDITIONAL USE PERMIT NO. 3052-17 FOR THE SALE OF BEER AND WINE UNDER A TYPE 41 (ON-SALE BEER AND WINE EATING PLACE) ALCOHOLIC BEVERAGE CONTROL LICENSE WITHIN AN EXPANDED 2,074 SQUARE FOOT RESTAURANT, AND ACCEPTING THE VOLUNTARY SURRENDER OF CONDITIONAL USE PERMIT NO. 451, LOCATED AT 808-816 E. LINCOLN AVENUE.
Page 2 AUTHORIZATION/GUIDELINES Orange Municipal Code (OMC) Table 17.08.020.B, and Sections 17.10.030.C and 17.30.030 authorizes the Planning Commission to review and take action on Conditional Use Permits. A Conditional Use Permit is required for the sale of alcoholic beverages within a restaurant establishment in the Limited Business (C-1) zone. The final determination by the Planning Commission on these applications may be appealed to the City Council pursuant to the time periods and requirements established in the OMC for appeals. PUBLIC NOTICE On November 22, 2017, the City sent a Public Hearing Notice to a total of 116 property owners/tenants within a 300-foot radius of the project site, and persons specifically requesting notice. The project site was also posted in two locations with the notification on that same date. ENVIRONMENTAL REVIEW Categorical Exemption: 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 the operation and licensing of an existing private structure that involves a negligible or no expansion of the use beyond what currently exists. There is no environmental public review required for a categorical exemption. PROJECT BACKGROUND Applicant: Property Owner: Property Location: Existing General Plan Land Use Element designation: Existing Zoning Classification: Old Towne: Redevelopment Project Area: Specific Plan/PC: Site Size: Circulation: United Rose Deli and Pho Restaurant, Thuy Linh Holland BETTEC Corporation, c/o Landmark Properties 808-816 E. Lincoln Avenue (APN Nos. 374-491-04, 05, 06, 07, 08) General Commercial (GC) Limited Business (C-1) No No No 23,086 square feet (.53 acres) The United Rose Deli and Pho Restaurant site is located between North Anchor Avenue on the east and North Orange Olive Road on the west. The site is accessed via three driveway approaches off Lincoln Avenue. The City Master Plan of Streets & Highways identifies Lincoln Avenue as a major arterial with an ultimate width of 120 feet.
Page 3 Existing conditions: Surrounding land uses and Zoning: Previous Applications/Entitlements: The site is developed with a two-level commercial shopping center known as the Olive Heights Center. The United Rose Deli and Pho Restaurant is located on the upper level towards the west end of the shopping center. North: Limited Business (C-1) / General Business (C2) South: Limited Business (C-1) / Single Family Residential 7,000 sq. ft. (R-1-7) East: Limited Business (C-1) / Single Family Residential 7,000 sq. ft. (R-1-7) West: Limited Business (C-1) On September 29, 1969, the Planning Commission approved Conditional Use Permit No. 451 to allow an ABC Type 41 (On-Sale Beer and Wine Eating Place) License for a pizza parlor located at 812-816 E. Lincoln Avenue. The Planning Commission has approved Conditional Use Permits for other on-site retailers and a bar within the Olive Heights Center. PROJECT DESCRIPTION United Rose Deli and Pho Restaurant is an existing 1,474 square foot restaurant located within Suite 816 of the Olive Heights Center, which is situated on the south side of east Lincoln Avenue, between North Orange Olive Road and North Anchor Avenue. The restaurant is currently permitted to sell beer and wine under a Department of Alcoholic Beverage Control Type 41 (On-Sale Beer and Wine Eating Place) License that was approved in 1969 under CUP No. 451. Because the applicant proposes a 600 sq. ft. expansion to incorporate Suite 808, the property owner will surrender existing CUP No. 451 and replace it with CUP No. 3052-17, which will allow the sale of beer and wine under a Type 41 (On-Sale Beer and Wine Eating Place) License within the newly expanded restaurant. The Olive Heights Center is occupied by a variety of commercial uses, including: a bar, laundromat, cleaners, market, beauty salon, hobby shop, and offices. United Rose Deli and Pho Restaurant is a family style Vietnamese restaurant that has been in operation since January 2016. The restaurant features a variety of Vietnamese and Danish style dishes, including menu items for children. The applicant would like to sell beer and wine in order to complement their menu and enhance the customers dining experience. The interior of the restaurant will be enlarged and configured to contain a 1,175 square foot dining area with table seating for approximately 62 people, a kitchen/food preparation area, and three restroom facilities. There will be no designated bar area. The main customer entrances/exits will be located on the north side, and a secondary exit will be located on the south side, adjacent to the restroom facilities. There will be no outdoor eating area, and alcoholic beverage storage will not be accessible to customers. The restaurant will have seven (7) employees, and the daily business operations will be managed by the business owner. The restaurant hours of operation are:
Page 4 Monday, Tuesday, Thursday, Friday: Wednesday: Saturday and Sunday: 11:00 a.m. to 3:00 p.m. 4:00 p.m. to 9:00 p.m. Closed 11:00 a.m. to 9:00 p.m. No changes are proposed to the exterior of the building or site; therefore, a comparison of the building to existing development standards has not been conducted. Staff has also determined that parking at the center can accommodate the conversion of the tenant space from retail to restaurant use. APPLICATION(S) REQUESTED/ REQUIRED FINDINGS Conditional Use Permit: CUP No. 3052-17 will replace existing CUP No. 451, and will permit the sale of beer and wine under a Type 41 (On-Sale Beer and Wine Eating Place) Alcoholic Beverage Control License within the expanded restaurant. Staff is requesting that approval of the project be subject to the recommended conditions of approval as included in Planning Commission Resolution No. PC 30-17. Required Findings: 1. A Conditional Use Permit shall be granted upon sound principles of land use and in response to services required by the community. 2. A Conditional Use Permit shall not be granted if it will cause deterioration of bordering land uses or create special problems for the area in which it is located. 3. A Conditional Use Permit must be considered in relationship to its effect on the community or neighborhood plan for the area in which it is located. 4. A Conditional Use Permit, if granted, shall be made subject to those conditions necessary to preserve the general welfare, not the individual welfare of any particular applicant. ANALYSIS/STATEMENT OF THE ISSUES Issue 1: Existing Licenses within 600 feet of the Site For information purposes, staff identified the following facilities selling alcoholic beverages that are located within a 600-foot proximity to the restaurant establishment s entrance (see Attachment 6, Planning Comission Evaluation Map).
Page 5 Existing Licenses Establishment Name License Type Address United Rose Deli and Pho Type 41 On-Sale Beer and Wine Eating Restaurant Place 808-816 E. Lincoln Avenue Hi Ho Liquor Type 21 Off-Sale General 824 E. Lincoln Avenue Olive Pit Type 48 On-Sale General - Public Premises (Bar, Nightclub) 834 E. Lincoln Avenue Chasers Lounge Type 47 On-Sale General - Eating Place 2765 N. Orange Olive Road Issue 2: Sensitive Receptors The OMC requires a Conditional Use Permit for the sale of alcoholic beverages to ensure there will be no adverse impact on surrounding land uses or allow the availability of alcoholic beverages to minors. When reviewing alcohol permits, the Zoning Ordinance details specific land uses that are sensitive to alcohol activities, but does not establish any specific distances for these uses. The State Alcoholic Beverage Control Board investigation requires applicants to identify the sensitive land uses within 600 feet of the site. Below are sensitive receptors in the vicinity of the subject property: Sensitive Receptors Establishment Name Address Distance To Project Site North Orange Christian Church 1001 E. Lincoln Avenue 348 feet Olive Elementary School 3038 Magnolia Avenue 585 feet Single Family Residences Duplex Family Residences Multiple Family Residences E. Whitecap Avenue Jib Street, Swell Street, Greenleaf Avenue Anchor Avenue Galley Street Gaff Street Ashwood Street Greenleaf Avenue/Orange Olive Road 2723-2745 N. Orange Olive Road. Santa Fe Place 0 feet 150 ft. 0 ft. 240 ft. 516 ft. 560 ft. 513 feet 300 ft. 400 feet While there are sensitive land uses within 600 feet of the site, the North Orange Christian Church, Olive Elementary School, single, and multiple family residential developments do not have direct access to the project site. The existing restaurant is currently permitted to sell beer and wine, which is a service that is expected within a full service restaurant establishment. In
Page 6 addition, the sale of alcoholic beverages would only be in conjunction with meals and would be accessory to the sale of food. Issue 3: Census Tract Alcohol and Crime Statistics Information The Police Department reports that the business is located within a census tract that is not overconsidered with on-sale ABC licenses; however is over-concentrated with off-sale licenses as shown below: Alcohol Licenses Existing Allowed On-Sale Licenses 5 7 Off-Sale Licenses 4 3 Census tracts are defined as small geographical areas established by local committees and approved by the Census Bureau, which contain a population segment with relatively uniform economic and social characteristics and clearly identifiable boundaries averaging approximately 1,200 households. The ABC establishes an over concentration of alcohol licenses based on the average number of alcohol licenses versus the population in a given census tract. However, the ABC and the City recognize that licenses should be reviewed on a case-by-case basis to ensure that such sales will not adversely affect surrounding residents, businesses, and institutions and to ensure that any such use operates in a manner compatible with existing and future adjacent uses. This site is located within a commercial corridor in the City of Orange, where it is expected to have an overconcentration of alcohol licenses. Crime Statistics The Applicant is applying for an ABC license in a census tract that is considered a low crime area as follows: Census Tract Arrests Citywide Average Arrests Percent Difference 41 68 40% below average The Orange Police Department s Vice Unit reviewed the proposal and has provided a memo stating that current crime figures in Reporting District 67N show 41 crimes reported, with the average being 68. This is under the 20% threshold and is considered a low crime area. In reviewing police activity in the reporting district, the majority of reported crimes included commercial burglaries, petty theft, grand theft, and burglary. In 2016, reported crimes at the Olive Heights center included one commercial burglary at the United Rose Deli and Pho Restaurant (816 E. Lincoln Avenue), two commercial burglaries at New Destiny (844 E. Lincoln
Page 7 Avenue), and one commercial burglary at and Pro Wireless (846 E. Lincoln Avenue). In 2016, only 4 out of the 18 total arrests made in the reporting district were alcohol related. Two arrests were for driving under the influence of alcohol, one arrest was for disorderly conduct, and one arrest was for drinking in public. Strong consideration was given to the manner in which the existing restaurant establishment has been operating, the manner in which it will conduct its security, and that the business has not created a nuisance to the community or a burden on police services in almost 2 years of operation. The applicant has indicated that alcohol will be stored behind the customer counter and will not be accessible to the public. In addition, the applicant has completed a Business Establishment Alcohol Management and Education Program Agreement, which is included as part of Attachment 5 to this Staff Report. Further, United Deli and Pho Restaurant currently has a Type 41 (On-Sale Beer and Wine - Eating Place) Alcoholic Beverage Control License. Because Reporting District 67N is considered a low crime area, with 40% below the average reported crimes and the census tract is under concentrated with on-sale licenses, the Orange Police Department s Vice Unit did not have any objections to the issuance of a CUP for a Type 41 On-Sale Beer and Wine License. Should the Planning Commission approve the proposal, the Orange Police Department recommends conditions based on the City s Security Standards (see Attachment 5). Conditional Use Permit No. 3052-17 will replace existing Conditional Use Permit No. 451, which will allow the sale of beer and wine under a Type 41 (On-Sale Beer and Wine Eating Place) License within the newly expanded restaurant. ADVISORY BOARD RECOMMENDATION None required ATTACHMENTS/EXHIBITS Attachments to Report: 1. Planning Commission Resolution No. PC 30-17 (CUP No. 3052-17) 2. Existing Resolution No. PC-105-69 (CUP No. 451) 3. Vicinity Map 4. Applicants Letter of Explanation and Restaurant Menu 5. Orange Police Department Vice Unit s Memorandum with Conditions of Approval for CUP 3052-17 dated July 20, 2017, including Business Establishment Alcohol Management and Education Program Agreement and Site Photos. 6. Planning Commission Evaluation Map 7. Property Owner Letter of Voluntary Surrender of CUP No. 451 Exhibits provided to the Planning Commission: A. Submitted Plans stamped received June 29, 2017
Page 8 cc: Thuy Holland 230 E. Dunton Avenue Orange, CA 92865 BETTEC Corporation c/o Landmark Properties Attn: Kathleen Miller 25602 Alicia Parkway, #320 Laguna Hills, CA 92653 N:\CDD\PLNG\Applications\Conditional Use Permits\CUP 3052-17 United Rose Deli and Pho Restaurant\PC Staff Report.doc