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SR-101188-12A . "' L/tJ z~ otJ 7 \2-A CjED:PB:LM council Mtg: October II, 1988 rail" Santa Monica, CaLlfornia TO: Mayor and City council FROM: city Staff SUBJECT: Appeal of Planning commission Technical Denial of CUP 508, A Request to Permit the On-site sale of Alcohol at a 349 Room Hotel Located at 1700 Ocean Avenue. INTRODUCTION This report recommends that the City Council reverse the Planning Commission's denial of Conditional Use Permit (CUP) 508, and approve the request to serve alcohol at the 349 room hotel under construction at 1700 Ocean Avenue. At the August 17, 1988 meeting of the Planning Commission the the subject request was technically denied by a vote of 3-1. william Kamer, of the Law Offices of Cox, Castle and Nicholson, has appealed the Planning commission' 5 determination on behalf of the project applicant, Santa Monica Hotel Associates, Ltd. (Attachment A). BACKGROUND On August 17, 1988, the Planning commission denied Conditional Use Permit 508, a request to permit the on-site sale of alcohol in a 349 room hotel currently under construction at 1700 Ocean Avenue, by a vote of 3-1. Specifically, the Planning commission denied the applicant's request for a Master 48 alcohol license. A Master 48 license allows the sale of alcohol in all areas of a public hotel. Under the subject proposal, alcohol will be available in a 300 seat restaurant to be located on the first - 1 - '2-~ tX;T 1 1 198& , floor of the hotel, a first floor lobby lounge, nine meeting rooms to be located on floors one through four, a ballroom to be located on the second floor, at a bar to be located in the outdoor pool area, in all rooms through room-service, and in each room through the use of self serve mini-bars. Proposed hours of operation for all restaurant and bar areas will be from 6:00 a.m. to 2:00 a.m., 7 days a week. A more detailed description of the proj ect may be found in the Planning Commission staff report dated August 17, 1988 (Attachment B). The Planning commission denied the subject proposal based on the applicant's request to permit in-room mini-bars. The Planning Commission's main argument against the use of mini-bars was that alcohol could be obtained by minors, and that alcOhol would be available after alcohol service has been stopped at all public bars and restaurants. The Planning Commission stated that the possibility of minors obtaining alcohol from the in-room mini-bars, and the availability of alcohol after normal operating hours could possibly lead to greater incidents of public drunkenness at the beaches, and in the adj oining neighborhood, and that the CUP should be denied . ANALYSIS Planning staff feels that a Conditional Use Permit allowing on-site alcohol sales should be approved. The hotel, when originally approved by the City Council, included proposals to operate dining, ballroom and meeting rooms facilities and the on-site sale of alcohol was clearly intended. A condition of the - 2 - project's approval was that a Conditional Use Permit be obtained pursuant to Ordinance 1319 in order to serve alcohol in the hotel. The applicant is attempting to meet the requirements of Ordinance 1319 with the subject application. Planning staff feels that the Planning commission's concern over the potential use of the mini-bars by minors can be addressed. A condition requiring that the mini-bars have a key separate from the room key, and that the mini-bar key be issued upon check-in only to persons of legal age. This condition may be placed on the project by the Council if desired. Planning staff feels that on-site sale of alcohol has consistently been a part of this proposal and will not adversely impact the surrounding neighborhood, or contribute to an over-concentration of bars in the area. BUDGET/FINANCIAL IMPACT The recommendation presented in this report does not have any budget or fiscal impact. RECOMMENDATION It is respectfully recommended that the Council reverse the Planning Commission's denial of CUP 508, and approve the applicant's appeal. If the council reverses the Planning commission's determination, the findings and conditions contained in the August 17, 1988 Planning Commission staff report should be adopted (Attachment B). If the Council chooses to deny the appeal, and uphold the Planning Commission's determination, the - 3 - . . findings contained in the Planning Commission statement of Official Action (Attachment C) should be adopted. Prepared by: Larry Miner, Assistant Planner Paul Berlant, Director of Planning Planning Division Community and Economic Development Department Attachments: A. Appeal letter dated August 19, 1988 B. August 17, 1988 Planning Commission staff Report C. August 17, 1988 Planning Commission Statement of Official Action D. Project Plans LM:CA CUP508CC HP/Tempcc 09/22/88 - 4 - .kr1 N- t\ \~\t.N T :. B \0 \, 714 { CITY PLANNING DIVISION Community and Economic Development Department MEMORANDUM 7'bz-L/07 DATE: August 17. 1988 TO: The Honorable Planning Commission FROM: Planning Staff SUBJECT: Conditional Use Permit 508 Address: Applicant: 1700 Ocean Avenue Santa Monica Hotel Associates, Ltd. Loew's Hotel SUMMARY Action: Application for Conditional Use Permit to allow the on- site sale of alcohol in a 349 room hotel currently under con- struction at 1700 Ocean Avenue. Recommendation: Approval SITE LOCATION AND DESCRIPTION The subject property is a 2.68 acre parcel located on the west side of Ocean Avenue between Autoway and Vicente Place having a frontage of 400' along both Ocean Avenue and Appian Way. Sur- rounding uses consist of multi family residential to the north, south, and west (R4), and commercial uses to the east (CA). Zoning Districts: R4 Land Use Districts: Residential Visitor Commercial . Parcel Area: 2.68 acres PROPOSED PROJECT This is an application to permit the on-site sale of alcohol in a 349 room hotel currently under construction at 1700 Ocean Avenue. Hours of operation will be from 6 a.m. to 2 a.m. 7 days a week. Alcohol sales and service will occur within a first floor res- taurant (290 dining seats + 15 bar seats), the main lobby (118 lounge and bar seats), a meeting room on the first floor (1,710 square feet, 110 person maximum capacity), eight board rooms on floors 2 through 4 totaling 7,100 square feet, and a 6,342 square foot ballroom on the 2nd floor. In addition, alcohol will be available in the pool area, and in the individual hotel rooms through room service and in-room mini bars. Specifically, the - 1 - l" 1 ~ . .; '" -, , \ \. \ applicants will be requesting a master type 48 on-sale general spirits license for a bonafide eating place, and a type 66 license for in room mini bars from the Alcohol Beverage Control. According to the ABC, a master type 48 license allows alcohol service in all dining, lounge and meeting areas associated with a hotel establishment. MUNICIPAL CODE AND GENERAL PLAN CONFORMANCE The proposed project is consistent with the Municipal Code and in conformity with the General Plan as shown in Attachment A. CEQA STATUS The subject proposal is Categorically Exempt per the city of San- ta Monica Guidelines for the Implementation of CEQA, class 1(1). FEES The proposal is not subject to any housing or parks mitigation fees as required under Ordinance 1367. ANALYSIS Background The subject proposal was scheduled for the June 15, 1988 Planning Commission meeting. The applicant, however, requested a con- tinuance in order to discuss concerns over conditions contained within the staff report. On July S, 1988, staff met with the applicant and agreed to revise the staff report to reflect their concerns. The following revisions were made: 1. Condition 1 was revised from "There shal. be no alcohol service in the hotel lounge and bar area after mid- night. Alcohol service may continue after midnight in all dining areas so long as meals are being prepared and served. Alcohol service at the pool bar and through room service may continue as permitted by the Alcohol Beverage Control" to "There shall be no alcohol service in the pool area to the general pub I io after 10:30 p.m.... 2. Condition #4 I1In order to maintain the primary use of the premises for sit-down meal service, patrons shall not be permitted to use the restaurant bar unless they are waiting to be seated for meal service. Use of the lounge bar shall be limited to hotel patrons, and guests of hotel patrons."; condition #7 "Seating ar- rangements for sit-down patrons shall not exceed 305 seats, and the total number of seats shall not be ex- panded by more than 10% unless approved by the Director of planning.lI: and, condition #8 IINo additional seating shall be added unless additional parking is provided." have all been deleted. - 2 - t 1 , " j H : ~ - . \. " On May 21, 1985 the city Council, on appeal from the Planning Commission, approved the 5 story, 349 room hotel currently under construction at 17QO Ocean Avenue. That approval included 2 res- taurants with a combined total of 300 seats, a banquet room on the first floor, a lobby lounge on the first floor, board rooms totaling 7,100 square feet located on floors 2-4, and a ballroom of 6,324 square feet located on the second floor. A condition of approval required the applicants to meet the requirements of Or- dinance 1319 in order to serve alcohol on-site. Ordinance 1319 requires the granting of a cUP in order to serve alcoholic beverages in restaurants over 50 seats, and bars not classified as bona fide restaurants. Conditional Use Permit For Alcohol service Within a 500' radius of the hotel site there are 3 type 47 al- cohol licenses (on-site general spirits for bona fide eating place) 1 type 48 license (on-site general spirits for pUblic premises, bar) and 1 type 21 license (Off-site sales, general spirits). Based on 1980 census figures, the residential popula- tion within 500' of the hotel site is approximately 59B persons. The Alcohol Beverage Control guidelines state that an over con- centration of alcohol outlets may occur if an area has more than one on-site sale license for each 800 residents. Planning staff does not feel that these guidelines are appropriate in this case since the project is located within a visitor commercial serving area of the city, and the original project approvals took into account the possibility of alcohol sales and service associated with the hotel. The proposed on-site sale of alcohol will not adversely impact the neighborhood surrounding the hotel, or contribute to an over- concentration of bars in the area. The primary function of the lounge and poo' bars, and alcohol service in meeting rooms will be to serve hotel patrons. Alcohol service in the restaurant will be available during dining hours only, and as such is not considered a true bar. Adequate parking is provided so that the people using the restaurant and banquet rooms will not adversely impact the neighborhood. A previous condition of approval placed on the hotel requires that management: 1. Upon taking meeting/banquet room reservations, hotel management shall routinely encourage that vehicle occu- pancy among attendees be maximized; 2. Regulate meeting and banquet schedule to group sizes that can be accommodated with on-site parking capacity at times when additional off-site capacity cannot be secured~ and, 3. Provide a valet parking system in a portion of the parking garage during peak events to obtain additional aisle and tandem spaces. The layout shall be approved by the City Parking and Traffic Engineer. - 3 - t.. t~ , 'J: staff is concerned that the hotel lounge not evolve into a seper- ate bar operating apart from the hotel and restaurant. The use of the hotel lounge should be strictly regulated and food service required during all hours of operation. Any attempt to operate the lounge, as a seperate bar apart from the hotel and res- taurant, with seperate entrances will require further planning approvals. originally proposed were 2 seperate restaurants: 1) a coffee shop with 150 seats and 3,672 square feet of floor area, and 2) a speciality restaurant with 150 seats and 3,650 square feet of floor area (Attachment B). The subject request for a Conditional Use Permit to serve alcohol indicates that 1 restaurant with 72 patio dining seats, 132 main dining room seats and 86 private dining room seats is proposed. In addition, 15 seats are pro- posed for a bar within the restaurant. This puts the total num- ber of seats in the proposed restaurant at 305, or 5 over the original proposal. Staff feels that the decrease from 2 res- taurants to 1 should not adversely effect the proposal, and the increase in the number of seats can be approved by the Director of Planning as a minor amendment to the project. Conclusion The intent to serve alcohol within the full service hotel cur- rently under construction at 1700 Ocean Avenue was made known as part of the original proj ect proposal. General Plan Land Use Element Policy 1.5.4 encourages day and evening pedestrian ac- tivity along Ocean Avenue by requiring active uses oriented to walk-in traffic, especially retail and commercial recreation, small inns and restaurants. The subject proposal meets all ap- plicable Municipal Code requirements, and General Plan Land Use Policies, and, therefore, merits approval. RECOMMENDATION planning staff respectfully recommends approval of Conditional Use Permit 508 subject to the following findings and conditions: ALCOHOL OUTLET FINDINGS 1. The proposed use and location are in accordance with good zoning practice, in the public interest, and necessary that substantial justice be done in that the use is of a type specifically encouraged by the Land Use Element of the General Plan, incorporating a neighborhood as well as visitor serving commercial use which, with li~ited alcohol serving hours to the general public in the pool area will not adversely affect the adjoining neighborhood. 2. The proposed use is compatible with existing and potential uses wi thin the general area; traffic or parking congestions will not result; the publ ic health, safety, and general welfare are protected: and no harm to adjacent properties will result in that the use is permitted in the R4 zoning District and will complement - 4 - t \. the surrounding retail and surrounding visitor commercial uses. 3. The welfare of neighborhood residents will not be adversely affected in that there is sufficient parking available to meet the proposed banquet and restaurant uses. 4. The new alcohol license will not contribute to an undue concentration of alcohol outlets in the area in that this will be a full service hotel where food will be served during all hours of alcohol service and the principal users will be hotel clientele. 5. There will be no detrimental effect on nearby residentially zoned neighborhoods considering the distance of the alcohol outlet to residential buildings, churches, schools, hospitals, playgrounds, parks, and other existing alcohol outlets in that the restaurant is not located in an area with a large concentration of schools or churches, its hours of evening peak use will not coincide wi th school or church hours and the conditions of approval will minimize the potential effects on adjacent properties. ALCOHOL OUTLET CONDITIONS 1. There shall be no alcohol service in the pool area to the general public after 10:30 p.m.. 2. Parking lot illumination shall be provided and maintained. 3. The owner shall prohibit loitering in thp. parking area and shall control noisy partons leaving the restaurant. 4. The premises shall maintain a kitchen or food-serving area in which a variety of food is prepared and cooked on the premises. 5. The premises shall serve food to patrons during all hours the establishment is open for customers. 6. No alcoholic beverages shall be sold for consumption beyond the premises. 7. Final plans for any signage shall be subject to review and approval by the Architectural Board. 8. The rights granted herein shall be effective only when exercised within a period of one year from the effective date of approval. Upon written request of the applicant, the Director of Planning may extend this period up to an additional six months. - 5 - , t ( .. 9. The applicant shall comply with all legal requirements regarding provisions for the disabled, including those set forth in the California Government Code, Title 24, Part 2. i Prepared by: Larry Miner, Assistant Planner c Attachments: A. Radius Map B. Original 1st floor plans C. Statement of Official Action, OR 291, EIA 778 ZA 4880-A O. Applicant's operation pIan E. Project plans PC/CUPS08 PB:LM:nh 08/3/88 - 6 - ( ATTACHMENT A MUNICIPAL CODE AND GENERAL PLAN CONFORMANCE Category Permitted Use Parking Municipal Code Hotels wI incidental businesses 510 parking required Land Use Element visitor serving commercial - 8 - \. Project Proposal to allow alcohol service in a 349 room hotel. 510 parking spaces proposed .. #' - .... ~ -- .., n1, ...:;:....: ~ ( ( " ~! !'i.MAIN r e=:.. {-'- .,~--w ~.J. W" , T,- (. ... ,.. -.I . .- 'r J ~ ' ..... PQr-t...or- !), ....~-~ ...../~~I(.I... i;j , "" N ~ 1': 4. r1 I. J ~....e..1 ~..JO~'I " ftr 3S lI" JC'jI -1 - j :...... .. . . ... 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