Planning Commission Report

Planning Commission Report To: From: Subject: Planning Commission Amanda Schachter, City Planning Division Manager Planning Commission Meeting: November 12, 2014 Agenda Item: 7-A Conditional Use Permit 14-007 to allow for the expansion of Rusty s Surf Ranch, an existing restaurant and nightclub with alcohol service (Type 47), and an associated Reduced Parking Permit 14-002 to allow for shared parking facilities at the Santa Monica Pier. Address: Applicant: 256 Santa Monica Pier Hospitality Industry Management Group Recommended Action It is recommended that the Planning Commission take the following action subject to findings and conditions contained in Attachment B: 1. Approve Conditional Use Permit 14-007 2. Approve Reduced Parking Permit 14-002 3. Adopt the Statement of Official Action Executive Summary The applicant requests approval of a Conditional Use Permit for alcohol service and a Reduced Parking Permit in conjunction with a 2,082 square foot expansion to an existing 4,509 square foot restaurant and nightclub, Rusty s Surf Ranch. The existing restaurant has been in operation since July 1984 and obtained a Type 47 license prior to requirements for Conditional Use Permits. The subject restaurant space is located in the middle tenant space of the formerly named Billiards Building in the Oceanfront Land Use District and in the RVC (Residential-Visitor Commercial) Zoning District. Pursuant to SMMC Sections 9.04.10.18.020 and 9.04.08.12.040, a Conditional Use Permit is required for the dispensing and sale of alcoholic beverages within eating and drinking establishments. Pursuant to SMMC Section 9.04.20.26, the applicant also requests a Reduced Parking Permit to allow for the shared use of parking spaces on the subject property. The applicant proposes shared parking between the Pier deck and three other parking lots located at 1440 PCH, 1550 PCH and 1640 Appian Way. The applicant proposes to construct a new 680 square foot south second floor outdoor patio, a new 410 square foot north second floor outdoor patio, and as well as 1,063 square feet on the second floor within the existing building envelope, for a total indoor and outdoor increase of 2,082 square feet. This includes a 71 square foot reduction in the first floor area due to increased staircase area. Upon completion, Rusty s Surf Ranch will include 4,411 square feet of interior space and 2,180 square feet of exterior space, for a total of 6,591 square feet. The existing restaurant has three layouts for seating, including standard, banquet and concert, ranging from 183 to 241 seats. The proposed seating ranges from 384 to 438 seats, depending on the layout. The applicant requests to be open with alcohol service from 6am to 2am daily, although actual operating hours will vary greatly with seasonality and events. 1

The following issues should be considered by the Planning Commission in its review of the proposed project and are addressed in this report: Is the proposed incidental alcoholic beverage sale and consumption within an existing restaurant and nightclub space compatible with the surrounding neighborhood? Will the proposed conditions of approval mitigate potential alcohol-related adverse impacts on the area? Is the alcohol license in conjunction with the restaurant operations consistent with the Land Use Element of the General Plan and Zoning District? Background CUP 92-026 & RPP 92-002: On August 26, 1992, the Planning Commission approved a Conditional Use Permit and Reduced Parking Permit to facilitate an addition to a restaurant at 250 Santa Monica Pier (now Restaurante Al Mare). Upon appeal, on October 27, 1992, the City Council denied the appeal and upheld the Planning Commission approval. RPP 10-002: On September 23, 2010, the Zoning Administrator approved a Reduced Parking Permit for the shared use of parking spaces on the Santa Monica Pier in conjunction with the operation of Al Mare Restaurant. CUP 11-006: On November 16, 2011, the Planning Commission approved a Conditional Use Permit to facilitate an addition at Al Mare Restaurant. CA 14-003: On February 10, 2014, the Landmarks Commission approved a Certificate of Appropriateness for signage and a canopy over the first floor outdoor seating at Rusty s Surf Ranch. Project / Site Information The following table provides a brief summary of the project location. Additional information regarding the project s compliance with applicable municipal regulations and the General Plan is available in Attachment A. Project and Site Information Table Zoning District: Land Use Element Designation: Parcel Area (SF): Existing On-Site Improvements (Year Built): RVC (Residential-Visitor Commercial) District Ocean Front District Approx. 8.6 Acres The Santa Monica Pier is considered one parcel and is developed with multiple structures. (Billiard Building built 1903) 2

Adjacent Zoning Districts and Land Uses: Fees North: RVC, Pier platform & beach parking lot East: RVC, Carousel Building South: RVC, Pier parking West: RVC, Adjacent restaurant tenant space Cultural Arts Fee: N/A Childcare Linkage: N/A Transportation Impact Fee: $31.40/ SF 256 Santa Monica Pier Site Location Map The Santa Monica Pier and beach are iconic locations for the City and serve as a popular regional Southern California destination. The businesses on the Pier cater to the needs of visitors and residents by providing retail items, food and drink, games and entertainment. The subject restaurant tenant space is located within the center portion of the Billiard Building located on the Santa Monica Pier. The west side of the building contains The Albright, a seafood restaurant, while the east side of the building contains Restaurante Al Mare. Surrounding uses consist of the Pier platform and the beach parking lot to the north (RVC), the Pier platform parking area to the south (RVC) the Carousel Building to the east (RVC), and parking lot access followed by Pacific Park to the west (RVC). Environmental Analysis This request is exempt from the provision of the California Environmental Quality Act pursuant to Section 15301 (Class 1), Existing Facilities, of the State Implementation Guidelines in that the project will involve remodel and a minor addition of less than 2,500 square feet and less than 50% of the existing floor area to an existing restaurant as well as the provision of alcohol licensing in conjunction with restaurant operations. Project Analysis Proposed Project Operation The applicant requests a CUP to allow for an expansion of an existing eating and drinking establishment permitting alcohol service at Rusty s Surf Ranch. The restaurant, operated by Hospitality Industry Management Group, has been in operation since July 1984 after replacing a former restaurant in the tenant space. Rusty s Surf Ranch obtained a Type 47 liquor license prior to Conditional Use Permit requirements. Rusty s Surf Ranch operates as a full service sit down restaurant during breakfast, lunch and dinner, and turns into a nightclub with permitted dancing and live entertainment on certain evenings. While operating as both a restaurant and nightclub, only a Type 47 license for a full-service eating and drinking establishment is required 3

by State Alcoholic Beverage Control, with a State requirement that gross sales from food exceed that of alcohol sales. Rusty s Surf Ranch occupies the middle tenant space of a three-tenant building on both the first and second floors of the Billiard s Building on the Santa Monica Pier. The applicant proposes to construct a new 680 square foot south second floor outdoor patio, a new 410 square foot north second floor outdoor patio, and as well as 1,063 square feet on the second floor within the existing building envelope, for a total indoor and outdoor increase of 2,046 square feet. This includes a 71 square foot reduction on the first floor due to a large staircase. The proposal also includes reconfiguring the north first floor patio to allow for central access to the restaurant, with no increase in patio area. Upon completion, Rusty s Surf Ranch will include 4,411 square feet of interior space and 2,180 square feet of exterior space, for a total of 6,591 square feet. The restaurant has three layouts for seating, including standard, banquet and concert, ranging from 183 to 241 seats. The proposed seats range from 384 to 438 seats, depending on the layout. The applicant requests to be open with alcohol service from 6am to 2am daily, although actual hours will vary greatly with seasonality and events. Proposed Seats for Standard, Banquet and Concert Seating Standard Seating Banquet Seating Concert Seating 1 st Floor Dining Room 122 seats 154 seats 120 seats 1 st Floor Bar 14 seats 0 seats 0 seats 1 st Floor Outdoor Dining 79 seats 95 seats 95 seats 2 nd Floor Dining Room 72 seats 76 seats 76 seats 2 nd Floor Bar 20 seats 20 seats 20 seats 2 nd Floor Outdoor Dining 77 seats 93 seats 93 seats TOTAL 384 seats 438 seats 404 seats Rusty s Surf Ranch: The Restaurant Generally, Rusty s Surf Ranch operates as a bona fide eating and drinking establishment, with full-service sit down meal service that includes alcohol service. The restaurant establishment would function as a full-service restaurant for sit-down meal service with ancillary music/entertainment in conformance with the restaurant definition per SMMC 9.04.02.030.730 during meal hours. Ancillary music/ entertainment within a restaurant use is permitted provided there is (1) sit down meal service provided at all times while the entertainment is taking place, (2) there is no dancing or dance floor, (3) there is no cover charge or minimum drink purchase requirement, and (4) the entertainment is provided only in the dining areas. As proposed, the restaurant meets the definition of a restaurant during meal hours. Current hours of operation range, but typically, the restaurant serves lunch and dinner from 11 am to 9 pm Sunday through Thursdays and 11 am to 10 pm Friday and Saturday. The existing standard restaurant layout contains 125 interior seats (111 dining room and 14 bar seats) and 71 outdoor dining seats, including 23 on the north patio and 48 seats on the south patio. The proposed standard restaurant layout contains 384 seats, including 228 indoor and 156 outdoor seats. The first floor restaurant layout contains 122 indoor dining seats, 14 bar seats, 14 outdoor dining seats on the northwest patio, 17 seats on the northeast patio (used for both waiting area and lounge), and 48 seats on the south patio. The second floor restaurant layout contains 8 bar seats, 12 indoor dining/ bar seats overlooking the floor below, 72 dining room seats, 48 south outdoor dining deck seats, and 29 north outdoor dining deck seats. 4

Rusty s Surf Ranch: Banquets When hosting large groups, the restaurant typically changes their layout to allow for banquet style seating. Banquet events range from open to the public fundraisers, weddings, bar mitzvahs, tour groups and schools. The existing restaurant has a maximum of 241 seats during banquet style seating, including 64 seats on the south patio, 23 seats on the north patio, and 154 interior dining room seats. The proposed banquet layout contains 438 seats, including 250 5

indoor and 188 outdoor seats. The first floor restaurant layout contains 154 indoor dining seats, 0 bar seats, 14 outdoor dining seats on the northwest patio, 17 seats on the northeast patio, and 64 seats on the south patio. The second floor restaurant layout contains 8 bar seats, 76 dining room seats, 12 indoor dining/bar seats overlooking the floor below, 64 south outdoor dining deck seats, and 29 north outdoor dining deck seat. Rusty s Surf Ranch: Nightclub Nightclubs are a permitted use in the RVC District. Depending on the season and day of the week, Rusty s Surf Ranch turns into a nightclub around 9 or 10pm. This includes dancing and 6

music/entertainment that occurs after dinner service has ceased. This typically corresponds with the closure of the kitchen, although the kitchen may remain open later depending on the need. To convert to a nightclub, a section of dining room seating is removed and a stage is added on the first floor. Generally, one or more bands play, and a cover charge may be charged at the door. When a cover charge is enacted, IDs are typically checked at the door to avoid serving underage patrons. While typical restaurant conditions require food service during all hours of operation, the applicant requests the ability to serve alcohol without food during the late evening hours. The existing restaurant has a maximum of 183 seats during banquet style seating, including 64 seats on the south patio, 23 seats on the north patio, and 96 interior dining room seats. The proposed banquet layout contains 414 seats, including 216 indoor and 188 outdoor seats. The first floor restaurant layout contains 120 indoor dining seats 14 outdoor dining seats on the northwest patio, 17 seats on the northeast patio, and 64 seats on the south patio. The second floor restaurant layout contains 8 bar seats, 76 dining room seats, 12 indoor dining seats overlooking the floor below, 64 floor south outdoor dining deck seats, and 28 floor north outdoor dining deck seat (see banquet 2 nd floor for layout). Rusty s Surf Ranch proposes to be permitted to operate between 6AM and 2AM daily, although actual operating hours may range within that timeframe. This would allow Rusty s Surf Ranch to be open for breakfast, lunch, dinner and nightclub operations. The request includes the ability for patrons to purchase and consume alcoholic beverages during the hours of operation of the restaurant and nightclub, with or without purchase of food. While typical restaurant conditions require food service during all hours of operation, nightclubs do not have similar requirements. The applicant requests the ability to serve alcohol without food during the late evening hours. To ensure food is served during restaurant operations, Condition No. 22 requires that the kitchen serve food until 9PM daily. This business has operated a restaurant and nightclub in this location for 30 years and has not had any complaints or code compliance issues. As a result, Staff believes the continuation of this operation under an expanded floor plan is warranted without additional restaurant requirements. To ensure that the business operation does maintain the restaurant use, Condition No. 19 requires that no more than 50% of total 7

gross revenues per year be from alcohol sales. California ABC has the same requirement to ensure restaurants that operate as nightclubs at night remain primary bona fide eating and drinking establishments. The restaurant s outdoor dining areas comprise approximately 33% of the total restaurant floor area. Alcohol service will complement the full scale meal service with ancillary bar area on the first and second floors during restaurant hours. Staff does not have any concerns with alcohol services of the proposed restaurant and nightclub given its location on the Santa Monica Pier adjacent to the primary pedestrian path and the Pier Deck Parking, in close proximity to other restaurants that serve a full-line of alcoholic beverages as part of their operations. A restaurant use with outdoor dining areas and alcohol service adds to the dining opportunities on the Pier, and is consistent with the intent of the RVC District to maintain and enhance the area for both residents and visitors. Further, a nightclub use, which is already in existence, provides an entertainment use in a non-residential setting for both residents and tourists. To further ensure compatibility, staff recommends a condition requiring the outdoor dining areas to close at 1 AM. Parking The applicant requests a Reduced Parking Permit based on the shared parking scenario that occurs on the Santa Monica Pier. All pier businesses and patrons utilize any of the four parking lots associated with the subject parcel, including the Pier deck and three other parking lots located at 1440 PCH, 1550 PCH and 1640 Appian Way. Pursuant to SMMC 9.04.20.26.030, a Reduced Parking Permit may be granted for shared parking for facilities with multiple uses where there is a sufficient number of spaces provided to meet the greater parking demand and a lack of conflict between uses is demonstrated. The proposed remodel and addition to Rusty s Surf Ranch results in a 32 parking space requirement. In order to demonstrate the availability of parking at the Pier, the property owner, the City of Santa Monica, provided parking data from May and August 2014. City staff conducted a parking utilization survey on three out of the four parking lots that have counting systems (Pier Deck, 1550 PCH and 1440 PCH) in order to determine the number of parking spaces occupied between 10:00 A.M and 10:00 P.M. in three of the four parking lots serving the beach and Pier (the parking lot located at 1640 Appian Way has 66 spaces but does not have a counting system). The parking utilization survey included counts done on typical weekdays (Tuesday May 6, 2014, Wednesday May 14, 2014, Tuesday August 5, 2014 & Wednesday August 20, 2014), on a typical weekend day (Sunday May 18, 2014 and Saturday August 16, 2014) and on the Sunday of Memorial Day and Labor Day Weekends (Sunday May 25, 2014 and Sunday August 31, 2014). The survey indicated that parking demand was higher on weekends and on the Sundays before Memorial Day and Labor Day. On all days surveyed, there was adequate parking available to meet the needs of the Rusty s Surf Ranch expansion, except for two hours the Sunday before Memorial Day and one hour on the Sunday before Labor Day. On the Sunday before Labor Day, the data shows 100% occupancy only at the 4:00 pm hour in the 1550 and 1440 PCH parking lots due in part to the temporary closure of the 240-space Pier Deck lot. The study showed that during weekdays, parking demand was less: 44% occupancy (799 spaces available) on Tuesday, May 6, 2014 and 63% occupancy (524 spaces available) on Wednesday, May 14, 2014. In August, weekday parking had higher occupancy, with 91% occupancy (125 spaces available) at 3:00pm on Tuesday August 5, 2014, and 85% occupancy (212 spaces available) at 4:00pm on Wednesday August 20, 2014. On Saturday August 16, 2014, there was a maximum of 93% occupancy (97 spaces available). In summary, the parking analysis conducted by City staff found that there is sufficient parking to meet the greater parking demand of the existing and proposed uses by meeting the daily needs of uses throughout the year. Based on the above data, a sufficient number of spaces are provided in the four parking 8

lots serving the beach and Pier (1,426 spaces) to meet the greater parking demand of the participating uses including existing beach and Pier uses and the proposed restaurant. Further, satisfactory evidence has been submitted by the parties operating the shared parking facility, describing the nature of the uses and times when the uses operate so as to demonstrate a lack of conflict between them. Specifically, the City of Santa Monica operates all parking lots involved in the parking calculations and a shared parking analysis was conducted by City staff, which indicated that supply exceeded demand when the project was considered together with existing uses with the exception of one day a year. The parking demand expected to be generated by the proposed restaurant was estimated using data obtained from the Urban Land Institute s (ULI) Shared Parking (2005) guidelines, which describes the hourly weekday and weekend variation of parking demand for a restaurant. The hourly variation in parking demand generated by the current users of the surrounding parking lots and the projected parking demand expected to be generated by the proposed project were combined to estimate the existing- plus-project parking demand for parking in the vicinity of the project site. The data indicated different parking demand periods between existing uses (beach and Pier visitors) and what is projected for the proposed restaurant use. The peak parking demand for the beach and Pier uses occurs between 12:00 P.M. and 4:00 P.M on weekdays and between 1:00 P.M and 6:00 P.M on weekends (typical summer Sunday). In contrast, the projected peak parking demand for a restaurant use is expected to occur between 6:00 P.M. and 10:00 P.M. on weekdays and between 6:00 P.M. and 11:00 P.M. on weekends, while nightclub peak parking demand is 8:00 P.M. to 12:00 A.M. This peak demand was further confirmed by a Santa Monica Parking Demand Analysis conducted by Gibson Transportation Consulting in 2012 in preparation for the Zoning Ordinance Update. Community and Cultural Services (CCS) and Police Department (PD) CCS and PD have been notified of the project. There have been no comments or objections to the proposal from CCS; however, PD has suggested conditions of approval in an effort to limit impacts to residential uses in the Oceanfront area related to loud noises, disturbances and public intoxication. The suggested conditions are listed below and are included as conditions of approval for the project. All alcoholic beverages and patrons shall vacate the outdoor seating areas no later than 1:00 AM daily. Neighborhood Compatibility The pier is the prime location in the City for a nightclub, as it is an entertainment mecca that serves local, regional and tourist interest. The Oceanfront District is intended to maintain and enhance the district as an important visitor-serving destination with lodging, restaurants, shopping and recreation, while protecting the existing residential uses in the area. The proposed remodel of the existing restaurant would continue to provide visitor-oriented uses on the Santa Monica Pier. The proposed use would not affect the existing residential mix because it is located within the visitor-commercial portion of the RVC zone, far enough away to avoid light, noise and glare impacts. Furthermore, customers leaving the Pier and beach parking lots would exit directly onto major thoroughfares (Ocean Avenue or PCH) and not onto smaller residential streets. Therefore, the proposal is consistent with this intention. The Santa Monica Pier is developed with a strong pedestrian orientation. Uses developed along the Pier s main walkway such as the proposed restaurant add interest and variety to the visitor s experience. The restaurant s north and south elevations includes outdoor dining patios and balconies, which establish a connection with the Pier s pedestrian visitors that are not restaurant 9

customers. The proposed outdoor dining seating also provides opportunities for watching activities and people on the Pier as well as providing a connection with the surrounding coastal area. A full-service restaurant use with accessory alcoholic beverage service and a nightclub are compatible with other Pier activities and will add vitality to the Pier, consistent with the General Plan s goals for the Santa Monica Pier and Oceanfront District. Alcohol Outlets in the Area Dining establishments on and adjacent to the Santa Monica Pier are typically paired with alcohol licenses. Additionally, outdoor seating is encouraged for restaurants exterior spaces. The following table identifies the location, license type and hours of other alcohol serving outlets within 500-feet of the subject site: Establishment Address License Type Hours of Alcohol License Bubba Gump Shrimp Co. 301 Santa Monica Pier Type 47, On-Sale General Eating Place 9AM Midnight, Sun- Wed 9AM 1AM, Thur-Sat Surf View Café (Previously) 330 Santa Monica Pier Type 40, On-Sale Beer Legal Non-Conforming ABC Hours (2:00 AM) Marisol Restaurant 401 Santa Monica Pier Type 47, On-Sale General Eating Place The Albright 258 Santa Monica Pier Type 41, On-Sale Beer and Wine Eating Place Restaurante Al 256 Santa Monica Type 47, On-Sale General Mare Pier Eating Place The Lobster 1602 Ocean Ave. Type 47, On-Sale General Eating Place Bruno s Italian 1652 Ocean Ave. Type 41, On-Sale Beer Restaurant & Deli and Wine Eating Place Big Deans Ocean 1615 Ocean Front Type 41 On-Sale Beer Front Café Walk and Wine Eating Place Lowes Santa 1700 Ocean Ave. Type 47, On-Sale General Monica Beach Eating Place Hotel 9AM Midnight, Sun- Thur 6AM- 1AM, Fri-Sat Legal Non-Conforming ABC Hours (2:00 AM) 7AM 2AM Daily 10AM-11AM Mon-Fri 10AM 1AM, Sat-Sun Legal Non-Conforming ABC Hours (2:00 AM) 10AM 2AM Daily 6AM 2AM Daily Conformance with Land Use Element The project is located on the Santa Monica Pier and within the City s Beach and Oceanfront District that serves the city and the region as a well-used public recreation amenity. The proposed project is in keeping with City Wide Goal LU18, which states that the Beach and Oceanfront is to be celebrated as the City s most valuable natural, recreational and public asset and is further supported by policy D18.8 which encourages visitor-serving uses in commercial areas west of Ocean Avenue between Colorado Avenue and Pico Boulevard. The proposed project upholds the goals and policies by expanding a visitor-serving restaurant and nightclub use with alcohol service. As proposed, the expansion of the outdoor dining area along the north side creates an opportunity for more interaction with pedestrians while allowing the Pier Deck to be fully utilized by pedestrians and bicyclists. City Wide Policy E5 encourages the creation of a local business-friendly environment that supports the retention of locally-owned and operated small businesses and Policy E6 encourages visitor-serving uses in the City that support 10

economic sustainability that are consistent with traffic reducing incentives. The granting of the CUP would allow the restaurant an opportunity to serve more visitors at the Santa Monica Pier which attracts patrons using alternative modes of transportation like walking and biking to the Pier. Alternative Actions: In addition to the recommended action, the Planning Commission could consider the following with respect to the project: A1. Continue the project for specific reasons, consistent with applicable deadlines and with agreement from the applicant; A2. Articulate revised findings and/or conditions to Approve OR Deny, with or without prejudice, the subject application. Conclusion The project proposes the expansion of an existing restaurant and nightclub to supplement the business operations with incidental alcohol sale and service in the Residential-Visitor Commercial District. The restaurant establishment would be open from 6 AM to 2 AM daily. Operational and alcohol related conditions of approval are included to mitigate potential adverse impacts and to ensure the use s harmonious compatibility with the surrounding neighborhood. The proposed use is consistent with the LUCE which encourages visitor-serving activity on and around the Pier area. Dining destinations serve the local residents as well as visitors to the Santa Monica Pier during day and evening hours. The full-service restaurant with incidental alcohol service will provide meal service throughout the day and a nightclub in the evening to residents and visitors and enhance the goals and intent established for the district. Further, the shared parking scenario at the Santa Monica Pier and associated data substantiate the issuance of a Shared Parking Permit for Rusty s Surf Ranch. Prepared by: Rachel Dimond, AICP, Associate Planner Bradley J. Misner, Principal Planner Attachments A. General Plan and Municipal Code Compliance Worksheet B. Draft Statement of Official Action C. Public Notification D. Parking Utilization Data E. Rendering, Photographs and Project Plans 11

ATTACHMENT A GENERAL PLAN AND MUNICIPAL CODE COMPLIANCE WORKSHEET Project Location and Permit Processing Time Limits Project Address: 256 Santa Monica Pier Application Filing Date: June 10, 2014 CEQA Deadline: July 10, 2014 PSA Deadline: December 7, 2014 Total Process Review Time (Days): 155 days General Plan and Municipal Code Compliance Worksheet CATEGORY LAND USE ELEMENT MUNICIPAL CODE PROJECT Permitted Use NA A Conditional Use Permit is required for the dispensing and sale of alcoholic beverages. [SMMC Section 9.04.10.18.020] Applicant requests a Conditional Use Permit to allow for the expansion of an existing restaurant with on-site sale and consumption of alcohol. A Conditional Use Permit is required for eating and drinking establishments permitting alcoholic beverages. [SMMC Section 9.04.08.12.040] A Nightclub is a permitted use. [SMMC Section 9.04.08.12.030] Parking NA 1 parking space / 80 SF seating area 1 parking space/ 300 SF support area 1 parking space / 50 SF nightclub and bar areas Existing modified area: 71 SF reduction on 1 st floor (@ 1/300)= 0.23 spaces 985 SF existing 2 nd Floor (@ 1/300)= 3.28 spaces Total credit= 3.51 spaces 1962 SF dining (@1/75)= 12 Attachment A General Plan & Municipal Code Compliance Worksheet

26.16 spaces 303 SF bar (@ 1/50)= 6.06 spaces 873 SF BOH (@1/300)= 2.91 spaces Total 35.13 spaces 3.51 credit= 31.62 parking spaces required Round up: 32 parking spaces required 13 Attachment A General Plan & Municipal Code Compliance Worksheet

ATTACHMENT B DRAFT STATEMENT OF OFFICIAL ACTION City of Santa Monica City Planning Division PLANNING COMMISSION STATEMENT OF OFFICIAL ACTION PROJECT INFORMATION CASE NUMBER: Conditional Use Permit 14-007 Reduced Parking Permit 14-002 LOCATION: APPLICANT: PROPERTY OWNER: CASE PLANNER: REQUEST: CEQA STATUS: 256 Santa Monica Pier Hospitality Industry Management Group City of Santa Monica Rachel Dimond, Associate Planner Conditional Use Permit 14-007 to allow for the expansion of Rusty s Surf Ranch, an existing restaurant and nightclub with alcohol service (Type 47), and an associated Reduced Parking Permit 14-002 to allow for shared parking facilities at the Santa Monica Pier. The project is categorically exempt from the provisions of CEQA, Section 15301 (Class 1), Existing Facilities, of the State Implementation Guidelines in that the project will involve restaurant interior improvements and minor additions to an existing tenant space to allow alcohol licensing in conjunction with restaurant operations. PLANNING COMMISSION ACTION November 12, 2014 X Determination Date Approved based on the following findings and subject to the conditions below. Denied. Other: 14 Attachment B Draft Statement of Official Action

EFFECTIVE DATES OF ACTIONS IF NOT November 24, 2014 APPEALED: EXPIRATION DATE OF ANY PERMITS May 24, 2016 GRANTED: LENGTH OF ANY POSSIBLE EXTENSION 6 months OF EXPIRATION DATES*: * Any request for an extension of the expiration date must be received in the City Planning Division prior to expiration of this permit. Each and all of the findings and determinations are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the Project. All summaries of information contained herein or in the findings are based on the substantial evidence in the record. The absence of any particular fact from any such summary is not an indication that a particular finding is not based in part on that fact. FINDINGS: CONDITIONAL USE PERMIT FINDINGS 1. The proposed use is one conditionally permitted within the subject district and complies with all of the applicable provisions of the "City of Santa Monica Comprehensive Land Use and Zoning Ordinance", in that eating and drinking establishments with alcohol service are conditionally permitted in the RVC (Residential-Visitor Commercial) District of the Zoning Ordinance. 2. The proposed use would not impair the integrity and character of the district in which it is to be established or located, in that the RVC District s intent is to protect the existing residential mix in the area while providing for the concentration and expansion of coastal-related, lodging, dining, recreation, and shopping needs of tourists and others in the oceanfront area. Expanding an existing restaurant and nightclub adds to the mix of the food serving and entertainment establishments for both local residents and visitors to the area. The hybrid restaurant and nightclub has been in operation for 30 years and has not had any code compliance issues or ABC issues. Because of the separation between the pier and the rest of the City, alcohol-related problems are not generally a problem, and conditions of approval have been included to mitigate potential impacts related to the serving and consuming alcohol on the tenant s premises. 3. The subject parcel is physically suitable for the type of land use being proposed, in that the parcel is the Santa Monica Pier and the existing restaurant and nightclub with alcoholic beverage service is in between two other restaurants. Further, the entertainment nature of the Santa Monica Pier makes it an ideal location for the expansion of a restaurant and nightclub. 4. The proposed use is compatible with any of the land uses presently on the subject parcel if the present land uses are to remain, in that the expansion of the restaurant and nightclub with alcohol license is compatible with the allowed restaurant and nightclub use and with other uses on the Santa Monica Pier. The restaurant and nightclub have been in operation for thirty years and is compatible with typical restaurant operations existing on the Santa Monica Pier and in the immediate area. 15 Attachment B Draft Statement of Official Action

5. The proposed use would be compatible with existing and permissible land uses within the district and the general area in which the proposed use is to be located, in that the area is characterized by a variety of entertainment and dining establishments with similar licensing and dining hours. As proposed, the hours of alcohol service are no more intense than typical restaurants in the RVC and neighboring C3 and Bayside Districts. The Conditions of Approval will ensure that the use operates in a harmonious manner with the adjacent land uses and will not create alcohol-related problems in the area. 6. There are adequate provisions for water, sanitation, and public utilities and services to ensure that the expanded restaurant use would not be detrimental to public health and safety, in that the alcohol licensing is conditionally permitted in the Zoning Ordinance and is proposed for a restaurant tenant space located within an existing development with restaurant use. 7. Public access to the proposed use will be adequate in that parking will be provided in the Pier deck parking lot and in surrounding beach lots and adequate pedestrian and bike access is provided from the Pier deck. 8. The physical location or placement of the use on the site is compatible with and relates harmoniously to the surrounding neighborhood, in that the existing restaurant will expand the second floor within the existing building footprint and add second floor decks above existing ground floor patios. The proposed alcohol licensing will be in conjunction with a full-service, sit-down restaurant during the day and a nightclub in the evening in an area developed with other dining and entertainment establishments. 9. The proposed use is consistent with the goals, objectives, and policies of the General Plan, in that the project is located on the Santa Monica Pier and within the City s Beach and Oceanfront District that serves the city and the region as a well-used public recreation amenity. The proposed project is in keeping with City Wide Goal LU18, which states that the Beach and Oceanfront is to be celebrated as the City s most valuable natural, recreational and public asset and is further supported by policy D18.8 which encourages visitor-serving uses in commercial areas west of Ocean Avenue between Colorado Avenue and Pico Boulevard. The proposed project upholds the goals and policies by enhancing an existing tenant space with a visitor-serving nightclub and restaurant use with incidental alcohol service. City Wide Policy E5 encourages the creation of a local business-friendly environment that supports the retention of locallyowned and operated small businesses and Policy E6 encourages visitor-serving uses in the City that support economic sustainability that are consistent with traffic reducing incentives. The granting of the CUP would allow the restaurant business the opportunity to serve more visitors to the Santa Monica Pier which attracts patrons using alternative modes of transportation like walking and biking to the Pier. 10. The proposed use would not be detrimental to the public interest, health, safety, convenience, or general welfare, in that the proposed use is consistent with the Zoning Ordinance and the Land Use Element of the General Plan, and conditions to mitigate any potential adverse impacts such as limiting the operator to 50% of total gross revenues on the percentage of alcohol sales per year and ensuring that the primary business operations involve a full-service restaurant with sit-down meal service during meal hours 16 Attachment B Draft Statement of Official Action

11. The proposed use conforms precisely to the applicable performance standards contained in Subchapter 9.04.12 and special conditions outlined in Subchapter 9.04.14 of the City of Santa Monica Comprehensive Land Use and Zoning Ordinance, in that no performance standard permit is required. 12. The proposed use will not result in an over concentration of such uses in the immediate vicinity, in that the proposed project is an expansion of an existing restaurant and nightclub with alcohol service with the same Type-47 alcohol license and is located in a district that encourages commercial recreation and visitor serving uses and activities. This type of alcohol outlet has not contributed significantly to alcohol related problems in the area and it is anticipated that the incorporation of various conditions of approval will minimize any potential adverse impacts. ALCOHOL OUTLET FINDINGS 1. The proposed use will not adversely affect the welfare of neighborhood residents in a significant manner in that the use will be located on the Santa Monica Pier, away from any major residential uses and is conditioned herein to mitigate any impacts. 2. The proposed use will not contribute to an undue concentration of alcohol outlets in the area in that the project proposed to expand an existing restaurant and nightclub with alcohol service. In addition, the subject restaurant is located on the Santa Monica Pier which is frequented by large number of local residents as well as office workers, shoppers and visitors from outside the area. 3. The proposed use will not detrimentally affect nearby neighborhoods considering the distance of the alcohol outlet to residential buildings, churches, schools, hospitals, playgrounds, parks, and other existing alcohol outlets in that the Pier location provides sufficient distance from sensitive residential and community uses and the conditions of approval will minimize the potential affect on the residential uses in the vicinity. 4. The proposed use is compatible with existing and potential uses within the general area in that the restaurant is located on the Santa Monica Pier in the RVC district, and a restaurant with an alcohol license is compatible with other permitted uses on the Pier such as Restaurante Al Mare and The Albright within the same building as well as Marisol and Bubba Gump, all of which provide alcohol services incidental to food service. Furthermore, the proposed use is compatible with other Pier activities with alcoholic beverage services. 5. Traffic and parking congestion will not result from the proposed use in that parking for the use is available on the Pier deck lot and adjacent beach lots. 6. The public health, safety, and general welfare are protected in that the project is consistent with the provisions of the Zoning Ordinance and the Land Use Element of the General Plan, and alcohol outlet specific conditions have been added to mitigate any potential adverse impacts. 7. No harm to adjacent properties will result in that the conditions of approval will ensure that the establishment operates as a full-service, sit-down restaurant with incidental alcohol sales during the day and a nightclub in the evening. Further, adjacent properties 17 Attachment B Draft Statement of Official Action

operate under similar hours of operation. The overall entertainment nature of the Santa Monica Pier further ensures no harm will result to adjacent properties. 8. The proposed use is consistent with the goals, objectives, and policies of the General Plan, in that the project is located on the Santa Monica Pier and within the City s Beach and Oceanfront District that serves the city and the region as a well-used public recreation amenity. The proposed project is in keeping with City Wide Goal LU18, which states that the Beach and Oceanfront is to be celebrated as the City s most valuable natural, recreational and public asset and is further supported by policy D18.8 which encourages visitor-serving uses in commercial areas west of Ocean Avenue between Colorado Avenue and Pico Boulevard. The variety of food serving tenants provide for an assortment of visitor-serving uses ranging from fast-casual eateries and full-service, sitdown restaurants. The proposed hours of alcohol service allows the restaurant to stay competitive by offering beverages that are comparable to those served in the neighboring restaurants located on the Santa Monica Pier and Ocean Avenue. REDUCED PARKING PERMIT FINDING 1. A sufficient number of spaces are provided in the four parking lots serving the beach and Pier (1,482 spaces) to meet the greater parking demand of the participating uses including existing beach and Pier uses and the proposed restaurant. City staff conducted a parking utilization survey on three out of the four parking lots that have counting systems (Pier Deck, 1550 PCH and 1440 PCH) in May and August of 2014 to determine the number of parking spaces occupied between 10:00 A.M and 10:00 P.M. in three of the four parking lots serving the beach and Pier (the parking lot located at 1640 Appian Way has 66 spaces but does not have a counting system). The parking utilization survey included counts done on typical weekdays (Tuesday May 6, 2014, Wednesday May 14, 2014, Tuesday August 5, 2014 & Wednesday August 20, 2014), on a typical weekend day (Sunday May 18, 2014 and Saturday August 16, 2014) and on the Sunday of Memorial Day and Labor Day Weekends (Sunday May 25, 2014 and Sunday August 31, 2014). The survey indicated that parking demand was higher on weekends and on the Sunday before Memorial Day. On August 31, 2014, the data shows 100% occupancy in the 1550 and 1440 PCH parking lots due in part to the temporary closure of the 240-space Pier Deck lot for one hour. On August 16, 2014, peak occupancy was 93%, with 97 parking spaces available. The study also showed that during weekdays, parking demand was less: 91% occupancy on Tuesday, August 5, 2014 (125 spaces available) and 85% occupancy (212 spaces available) on August 20, 2014. In summary, the parking analysis conducted by City staff found that there is sufficient parking to meet the greater parking demand of the existing and proposed uses by meeting the daily needs of uses, for most days of the year. An exception would be the Sunday before Labor Day; however, in the case of the beach and Pier parking lots which are commonly used by patrons who park once and then visit multiple destinations (e.g., the beach, the Pier amusement park, and a restaurant on the Pier), City policy has been to plan for the typical needs of a project and not for the peak day exception. 2. Satisfactory evidence has been submitted by the parties operating the shared parking facility, describing the nature of the uses and times when the uses operate so as to demonstrate a lack of conflict between them. Specifically, the City of Santa Monica operates all parking lots involved in the parking calculations and a shared parking analysis was conducted by City staff, which indicated that supply exceeded demand 18 Attachment B Draft Statement of Official Action

when the project was considered together with existing uses with the exception of one day a year. The parking demand expected to be generated by the proposed restaurant was estimated using data obtained from the Urban Land Institute s (ULI) Shared Parking (2005) guidelines, which describes the hourly weekday and weekend variation of parking demand for a restaurant. The hourly variation in parking demand generated by the current users of the surrounding parking lots and the projected parking demand expected to be generated by the proposed project were combined to estimate the existing- plus-project parking demand for parking in the vicinity of the project site. The data indicated different parking demand periods between existing uses (beach and Pier visitors) and what is projected for the proposed restaurant use. In contrast, the projected peak parking demand for a restaurant use is expected to occur between 6:00 P.M. and 10:00 P.M. on weekdays and between 6:00 P.M. and 11:00 P.M. on weekends, while nightclub peak parking demand is 8:00 P.M. to 12:00 A.M. This peak demand was further confirmed by a Santa Monica Parking Demand Analysis conducted by Gibson Transportation Consulting in 2012 in preparation for the Zoning Ordinance Update. 3. Additional documents, covenants, deed restrictions or other agreements as may be deemed necessary by the Zoning Administrator are executed to assure that the required parking spaces provided are maintained and uses with similar hours and parking requirements as those uses sharing the parking remain for the life of the building in that the proposed use is on the Pier and served by parking lots that are all operated by the City of Santa Monica. The City will continue to operate these lots to serve all beach and Pier uses, as is required by previous City and Coastal Commission permits as well as lease agreements held between the City and Pier tenants. CONDITIONS OF APPROVAL: PLANNING AND COMMUNITY DEVELOPMENT Project Specific Conditions 1. Seating arrangements for sit-down patrons shall not exceed 455 seats. 2. The permitted hours of alcohol consumption shall be from 6:00 AM to 2:00 AM, daily with complete closure and all employees vacated from the tenant space by 3:00 AM. No "after hours" operations shall be permitted. Alcohol service to any outdoor seating area adjacent to a public street or sidewalk shall cease one hour in advance of the operating hours otherwise permitted. Administrative 3. The Planning Commission s approval, conditions of approval, or denial of this application may be appealed to the City Council if the appeal is filed with the Zoning Administrator within fourteen consecutive days following the date of the Planning Commission s determination in the manner provided in Part 9.04.20.24, Sections 9.04.20.24.010 through 9.04.20.24.040. Any appeal must be made in the form required by the Zoning Administrator. The approval of this permit shall expire if the rights granted are not exercised within 18 months from the permit s effective date. Exercise of rights shall mean issuance of a building permit to commence construction or actual commencement of the use granted by this Conditional Use Permit if a building permit is not required. 19 Attachment B Draft Statement of Official Action

4. Within ten days of City Planning Division transmittal of the Statement of Official Action, project applicant shall sign and return a copy of the Statement of Official Action prepared by the City Planning Division, agreeing to the conditions of approval and acknowledging that failure to comply with such conditions shall constitute grounds for potential revocation of the permit approval. By signing same, applicant shall not thereby waive any legal rights applicant may possess regarding said conditions. The signed Statement shall be returned to the City Planning Division. Failure to comply with this condition shall constitute grounds for potential permit revocation. 5. Prior to issuance of a final inspection, the applicant shall post a notice at the building entry stating that the site is regulated by a Conditional Use Permit and the Statement of Official Action, which includes the establishment s conditions of approval, and the establishment s approved floor plan, is available upon request. This notice shall remain posted at all times the establishment is in operation. 6. Within thirty (30) days from date of the approval of the Statement of Official Action, the applicant shall provide a copy of the approved Statement of Official Action for this project to the local office of the State Alcoholic Beverage Control department. 7. Prior to issuance of a Certificate of Occupancy, or a business license, or commencement of alcohol service as applicable, the operator shall submit a plan for approval by the Director of Planning regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol awareness training program for all employees having contact with the public and shall state management's policies addressing alcohol consumption and inebriation. The program shall require all employees having contact with the public to complete a California Department of Alcoholic Beverage Control (ABC) sponsored alcohol awareness training program within 90 days of the effective date of this approval. In the case of new employees, the employee shall attend the alcohol awareness training within 90 days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved by the Director of Planning and Community Development. The operator shall provide the City with an annual report regarding compliance with this condition. This project shall be subject to any future City-wide alcohol awareness training program condition affecting similar establishments. 8. Prior to issuance of a Certificate of Occupancy, or a business license, or commencement of alcohol service as applicable, the operator shall also submit a plan describing the establishment's designated driver program, which shall be offered by the operator to the establishment's patrons. The plan shall specify how the operator will inform patrons of the program, such as offering on the menu a free non-alcoholic drink for every party of two or more ordering alcoholic beverages. 9. In the event permittee violates or fails to comply with any conditions of approval of this permit, no further permits, licenses, approvals or certificates of occupancy shall be issued until such violation has been fully remedied. 10. Applicant is advised that projects in the California Coastal Zone may need approval of the California Coastal Commission prior to issuance of any building permits by the City of Santa Monica. Applicant is responsible for obtaining any such permits. 20 Attachment B Draft Statement of Official Action