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10 - PH-1 - Review of Planning Commission Approval - 11/7/2017
CITY COUNCIL AGENDA REPORT MEETING DATE: NOVEMBER 7, 2017 ITEM NUMBER: PH -1 SUBJECT: REVIEW OF PLANNING COMMISSION APPROVAL OF A CONDITIONAL USE PERMIT FOR A MICROBREWERY (BREWING RESERVE OF CALIFORNIA) WITH A TASTING ROOM AND RETAIL SALES AND A CONDITIONAL USE PERMIT FOR THE SALE OF ALCOHOLIC BEVERAGES FOR ON-SITE CONSUMPTION AFTER 11 PM WITHIN 200 FEET OF A RESIDENTIAL ZONE AT 2930 COLLEGE AVENUE, UNIT D FROM: PLANNING DIVISION / DEVELOPMENT SERVICES DEPARTMENT PRESENTATION BY: JUSTIN ARIOS, ASSISTANT PLANNER DATE: OCTOBER 26, 2017 FOR FURTHER INFORMATION CONTACT: JUSTIN ARIOS (714) 754-5667 justin.arios@costamesaca.gov RECOMMENDATION The City Council should either uphold, uphold with revisions or reverse the Planning Commission's decision to approve Conditional Use Permits (CUP's) for a microbrewery (Brewing Reserve of California), with a tasting room. The business involves: • Retail sales of beer produced on the premises and related products. The microbrewery will not sell food. The proposed hours of operation are: o Microbrewery: Monday through Sunday: 5 AM to 5 PM o Tasting room/retail sales: ■ Monday through Wednesday: 5 PM to 10 PM ■ Thursday and Friday: 5 PM to 12 AM ■ Saturday: 11 AM to 12 AM ■ Sunday: 11 AM to 10 PM Operating past 11 PM within 200 feet of a residential zone. The project was approved by the Planning Commission on September 25, 2017, on a 3-1 vote, Commissioner Navarro Woods voting no and Commissioner Harlan absent. Two requests to review the action of the Planning Commission were filed on October 2, 2017. APPLICANT / REVIEW REQUESTS The applicant and business owner is Steven Aguilar, representing Tim Mullahey with MT Real Estate LLC, the property owner at the time of filing of the application. The current property owner is Andario LLC. The requests to review the action of the Planning Commission were submitted by Mayor Katrina Foley and Mayor Pro Tem Sandra Genis. BACKGROUND Project Site/Environs The subject property is located on the northeast corner of College Avenue and Logan Avenue. The site is zoned General Industrial (MG), and has a General Plan land use designation of Light Industrial. Physical on-site improvements of the property include two multi -tenant buildings (2930 and 2940 College Avenue) with a total of 73 parking spaces and three points of ingress/egress (one on College Avenue and two on Logan Avenue). The proposed use will occupy a 3,000 -square -foot tenant space in the building located along Logan Avenue. The subject property is surrounded by: • MG -zoned properties to the east, south (across Logan Avenue) and west (on the southern corner of College Avenue and Dale Way); • Local Business (C1) properties to the west (on the northern corner of College Avenue and Dale Way); and • Multiple -Family Residential (R3) properties to the north (across a public alley). There are currently no open Code Enforcement cases pending for the project location. However, it should be noted that there is illegal outdoor storage on-site in a portion of the parking lot, which is discussed later in this report. ANALYSIS Project Description The applicant is requesting approval of conditional use permits for a microbrewery (Brewing Reserve of California) operating past 11 PM within 200 feet of a residential zone. The 3,000 -square -foot microbrewery would include a tasting room and retail sales of beer produced on the premises as well as related products. The proposed floor plan consists of a 940 -square -foot tasting room, along with a brewery production area including a grist mill, cooler room, storage room, boiler room, office, and restrooms. The table below provides a breakdown of the floor plan. Unit Square Footage Breakdown Public Area Tasting Room Restrooms & Hallway 940 sf 200 sf Public Area Total 1,140 sf Industrial Area Cooler 120 sf Office Storage 72 sf 120 sf Brewery Production 1,548 sf Industrial Area Total 1,860 sf UNIT TOTAL 3,000 sf Hours of Operation The proposed hours of operation for the microbrewery operations (not open to the public) are Monday through Sunday, 5 AM to 5 PM. The proposed hours of operation for the tasting room (open to the general public) are: • Monday through Wednesday: 5 PM to 10 PM • Thursday and Friday: 5 PM to 12 AM • Saturday: 11 AM to 12 AM • Sunday: 11 AM to 10 PM Below is a tenant list of the balance of the property, with hours of operation of the existing and proposed businesses, as provided by the applicant: Parking The parking requirement for the proposed business is based on the areas of industrial/manufacturing and tasting room/public area uses. • The parking ratio for the industrial/manufacturing area is three spaces per 1,000 square feet of gross floor area, or six parking spaces for the 1,860 -square -foot area. • The parking ratio for the tasting room/public area is 10 spaces per 1,000 square feet of gross floor area (for establishments where food or beverages are served with more than 300 square feet of public area) or 11 parking spaces for the 1,140 -square -foot area. During normal weekday business hours, parking impacts are not anticipated since the microbrewery is not open to the public until 5 PM. During this time, the microbrewery will operate as a typical industrial use which requires six parking spaces. Tenant List / Hours of Operation Business Address MON TUE WED THURS FRI SAT SUN 8 AM — 8 AM — 8 AM — 8 AM — 8 AM — CLOSED CLOSED Giovani Metal 2940 College; Art Design Unit A 5 PM 5 PM 5 PM 5 PM 5 PM 8 AM — 8 AM — 8 AM — 8 AM — 8 AM — Absolutely 2940 College; Fabulous Events CLOSED CLOSED Unit B 5 PM 5 PM 5 PM 5 PM 5 PM & Productions Grower's Direct 2930 College; 7 AM — 7 AM — 7 AM — 7 AM — 7 AM — 7A -2P CLOSED Flowers Unit A/ B 4 PM 4 PM 4 PM 4 PM 4 PM 8 AM — 8 AM — 8 AM— 8 AM — 8 AM — CLOSED CLOSED Minuteman 2930 College; Press Unit C 5 PM 5 PM 5 PM 5 PM 5 PM BRC Brewery — 2930 College; 5 AM — 5 AM — 5 AM — 5 AM — 5 AM — 5 AM — 5 AM — Production Unit D 5 PM 5 PM 5 PM 5 PM 5 PM 5 PM 5 PM (PROPOSED) BRC Brewery— 2930 College; 5 PM — 5 PM — 5 P M— 5 PM — 5 PM — 11 AM— 11 AM— Tasting Room Unit D 10 PM 10 PM 10 PM 12 AM 12 AM 12 AM 10 PM (PROPOSED) Parking The parking requirement for the proposed business is based on the areas of industrial/manufacturing and tasting room/public area uses. • The parking ratio for the industrial/manufacturing area is three spaces per 1,000 square feet of gross floor area, or six parking spaces for the 1,860 -square -foot area. • The parking ratio for the tasting room/public area is 10 spaces per 1,000 square feet of gross floor area (for establishments where food or beverages are served with more than 300 square feet of public area) or 11 parking spaces for the 1,140 -square -foot area. During normal weekday business hours, parking impacts are not anticipated since the microbrewery is not open to the public until 5 PM. During this time, the microbrewery will operate as a typical industrial use which requires six parking spaces. After normal weekday business hours, when the tasting room is open, 11 parking spaces are required. Parking impacts are not anticipated because all the other business on-site close at 5 PM or earlier, leaving the entire parking lot (73 spaces) available for use by tasting room patrons. On weekends, parking impacts are not anticipated because only one of the tenants operates during these times. Grower's Direct Flowers is open on Saturdays from 7 AM to 2 PM. Taking into account the parking required by Code for its industrial use, Grower's Direct Flowers requires 12 parking spaces. A minimum of 61 spaces will be available for use by the tasting room during this time. If parking shortages or other parking -related problems develop, conditions of approval will require the business operator to institute appropriate operational measures necessary to minimize or eliminate the problem including, but not limited to, adjusting the operating hours of the business. Illegal Outdoor Storage On -Site / Parking Lot Condition The site plan indicates a total of 73 parking spaces on the site. However, upon inspection, staff identified illegal storage located in the northeast corner of the property. Staff also identified the need to restripe the parking lot. Per Code Requirement 2, staff will require that, within 30 days of City Council action, the illegal outdoor storage must be removed. In addition, Condition of Approval 2 requires the parking lot to be re -striped, subject to final planning inspection. Additional Discussion No food trucks are proposed to operate on this project site and no food service is provided as part of the brewery tasting room. However, due to the evolution of drop-off services (e.g. uber, lyft or uberEATS), these types of services to the site may occur during the tasting room hours of operation. As there is excess parking available during tasting room hours, it is not expected that drop-off services will negatively impact on-site parking. These services can, however, impact the flow of traffic and circulation within the center if it is not clear where food deliveries should occur. To mitigate any potential impacts from drop-off services, a condition of approval is included requiring the property to designate one parking space as a drop-off parking space. This results in one less space that is open at all times for patrons arriving in their own vehicle. However, the City allows the provision for bike racks to substitute for one required parking space. The applicant will provide the required bike racks, therefore meeting the parking requirement. Conditions of approval also requires the applicant to mitigate any future parking issues, if so required by the City. Noise The overall project site abuts a public alley which is adjacent to residentially -zoned properties. The proposed microbrewery suite is located less than 200 feet from the residential property, but is separated from the residential property by a 14,400 -square - foot industrial building. Adjacent to the industrial building is the public alley which is bordered by a solid block wall with no openings. There is no access to the residential property from the industrial property. The proposed use does not include live entertainment, amplified music, or music speakers outside. Background music within the tasting room area will be conducted entirely within the existing building and should not create a noise impact to the residential uses due to the buffering provided by the adjacent industrial building and the block wall with no openings. Furthermore, conditions of approval address restrictions on entertainment and noise to reduce impacts to adjacent residents. Alcoholic Beveraae Control (ABC) License Concentration The proposed use is required by the California Department of Alcoholic Beverage Control to hold a Small Beer Manufacturer (Type 23) license. This license allows the production of specialty beers with or without a pub or restaurant on the premises. Product may be consumed on or off the licensed premises. A Type 23 license is a non -retail license and under ABC regulations is not subject to Public Convenience or Necessity (PCN) Findings. Attachment 2 shows the locations of active on -sale, off -sale and non -retail ABC Licenses within the subject census tract. Planning Commission Action On September 25, 2017, the project was considered by the Planning Commission. Based on the evidence presented by the applicant and testimony during the hearing, the Planning Commission approved the project on a 3-1 vote, with Commissioner Navarro Woods voting no and Commissioner Harlan absent. A link to the Planning Commission staff report can be found on the City's website here (hardcopy also attached to this report): https://www. costamesaca.gov/ftp/p Ian ningcommission/agenda/2017/2017-09-25/PH-4.pdf Requests for Review Planning Commission Action On October 2, 2017, requests to review the action of the Planning Commission were filed; one by Mayor Foley and one by Mayor Pro Tem Genis. • Mayor Foley's request to review stated: To review concerns raised about compatibility and to determine whether the City Council desires to transform this industrial business area into an entertainment zone. • Mayor Pro Tem Genis' request to review stated: Concerned about the proximity to residences and operating characteristics in general. It is not clear as to whether a finding of public convenience or necessity would be needed at this location. However, it appears as the location may be in what is already an area of undue concentration. The City Council review of the Planning Commission's decision is a new public hearing and the Council may consider the project in its entirety. The Council is not restricted to only considering evidence previously presented to the Planning Commission or issues raised in the requests to review the project. LEGAL REVIEW The City Attorney has reviewed the draft resolutions and they have been approved as to form by the City Attorney's Office. ALTERNATIVES The City Council may take the following actions: 1. Uphold the Planning Commission's decision and approve the project; 2. Approve the project, subject to revised conditions of approval; or 3. Reverse the Planning Commission's decision and deny the project. CONCLUSION The project was approved by the Planning Commission on September 25, 2017. Two requests for the City Council to review the Planning Commission decision were filed on October 2, 2017. The City Council may choose to uphold, reverse or modify the Planning Commission decision to approve the project. JUSTIN ARIOS BARRY CURTIS, AICP Assistant Planner Economic Development & Development Services Director Attachments: 1. Location MaD. Zonina Map. and 500' Radius Ma 2. Map of Active Alcoholic Beverage Control (ABC) Licenses (Census Tract 639.02) 3. Site Photos 4. Requests for Review 5. Correspondence from Public (from September 25th Meeting) 6. Applicant's Project Description 7. Draft Resolutions and Exhibits 8. September 25th Planning Commission Staff Report 9. Planning Commission Resolution 10. Project Plans Applicant: Steven Aguilar 1 Bormes Irvine, CA 92614 Property Owner: Tim Mullahey MT Real Estate LLC 4620 E. Cerro Vista Dr. Anaheim, CA 92807 Costa Mesa q W it o y z ca J 1 V y r A v �saK ER ST -.. z S W BAKER 5T' W BAKER ST , -w ! ° AVE _ LOGAN AVE w* LOGAN W - ' O Tt1 i Q VILLAGE WAY V t I A G E WAY i rt4. wy f % L M Y WIv 1: 4,407 0.1 0 0.07 0.1 Miles This map is a user generated static output from an Internet snapping site and is f reference only. Data layers that appear cn this map may or may rtes be accural WGS_198 Web_Mercator}luxiliary_Sphere currenL or otherwise +eliab G latitude Geographies Group Ltd. THIS MAF IS NOT TO BE USED FOR N"IGATIC Legend ❑ Costa Mesa Notes rn Z —16 . C3 Legend ❑ Costa Mesa Notes rn Z —16 If 00 I Costa Mesa O tY 0 co VV BAKER ST W BAKER ST DALE WAY VILLAGE WAY M f LU fz z LU z LU 0 Ji 0 01: 101 x 100 BAKER ST z Z o LOGANAVE >4& 40 LU 0 Uj iJ 1-06AN AVE . M 0.1 0 007 0.1 "Ifles his map is a user generated static output from an Internet mapping site and is for reference only. Data layers that appear an this map may or may not be accurate, WGS_1 994_Web_Mercator_Auxiltary-Sphere current, or otherwise reliable. 0 Latitude Ge"raphics Group Ltd. THIS MAP IS NOT TO BE USED FOR NAVIGATION Legend E] Costa Mesa Zoning ❑ AP ci , Az cl-8 C2 CL I&R, I&R-S mr, LJ 'AP P POC Ej P01 POR -1-10 POR -LD PPR -MD POR -NCM El R1 R2410 R2 -MD R3 TC Notes _ � .�' �r�rfr �.��n(3s .fyvifr�p�n rm s»risc m[,��Yv90tfwaEs fG 3ii 4T�'•rr 99 78-15 fq JNA fk[5 a'[ 2..Ri4CN ..•fM3 1[iQifP O'CO"a �r WqP <aM.F f54IC0• AY x •fJ�J\A f£T ,. CTm r I i . 1 Gd1WA► LAW _ • Q 59 141-19 n�� � NRltR.Jf a GRIFFITNJS 21 Ar- ---------- G �— ----- _ _ —! S— -- 92! 1 1 03 G 05 s' (D O Jx! c (D'f O1 '.x 164 O ® a n 165 of B 99 78-15 f£T r r I i IS rl t -'J '1Gl k p I t 1 .• f F I 141-19 n�� � NRltR.Jf a GRIFFITNJS 21 Ar- ---------- G �— ----- _ _ —! 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AMfIRNY � Ss GULEIR 120 Si Yd' 30 FD --t 0 MILNERY PR010CI1gV 0 6406 IF 0 0 ol SipRAGE I20 SF. 0957 MEL � S! 80Em ROOM I0 IF 400 AY° EIEC ------- -.._.i PARE PLMC AWA TA57M ROOM 910 IF. M5700M5l RWLRRY - 200SF. -0' TOTAL = CNO SF. 92X45nM. AAYA 00w - 010 SF. EIA¢ = 72 SF. STORAGE = 00 S.F. B EWIRY ER000CIM= (548 SF. (9C1 LW MF ERLL / sam) TOTAL = 4860 IF. B R C BREWERY — UNIT D P R O P O S E D F L 0 0 R P L A N C O L L E G E A V E. ATTACHMENT 10 EXISTING ORIF APPROACH 1 41 ez ax eA es eE e� it Ai m TL Tz TJ I MIT A 20M MLECE AM PWLCC k-rcR GOVANI KETAL COSTA IESt CA k ART DESYW (0.000 SE.) W LAWT A/D GRONER'S DIRECT FIONERS (4.000 SF.) LWT C M 7EVAN PRESS (3,000 SFJ INT ❑ 9PC 9R7CRY WF, 8-5 CFF, B-5 9 H Sr. EXISTING DRIVE Q 299 C1LEmE AM = 0000 IF. MIA4IRAL III BUINE C AREA ® ® I � I 290 COIL AM = K400 IF 077 - 72 IF BLOW AREA J i' IID Sr. 70TAL BELLOW AIEI EXISTING DRIVE • L51B SF. (M2IDR am REL / Dam) FRDECT AREA 3,000 SF. 9DUSTRE4 TOTAL = (960 IF (MRC BRIERY - SLOE D) PUWC PANONC . It PAW PAINOW RECOM - A WAGES AT 10/1000 IF. (3,/1000 SO AF70 )MM N. 150 151. 2910 COLLEGE AM COM LESt CA (14,400 SF.) �- MIT A 20M MLECE AM PWLCC k-rcR GOVANI KETAL COSTA IESt CA k ART DESYW (0.000 SE.) W LAWT A/D GRONER'S DIRECT FIONERS (4.000 SF.) LWT C M 7EVAN PRESS (3,000 SFJ INT ❑ 9PC 9R7CRY WF, 8-5 CFF, B-5 9 H Sr. ZONm 4C (Cf7Ym AEww 06' wo Q N. 150 151. 2910 COLLEGE AM COM LESt CA (14,400 SF.) �- MIT A UNIT B PWLCC k-rcR GOVANI KETAL ANSOLUIELY FABULOUS k ART DESYW EVENTS ! PRWUCRLWS W (3,600 SF.) 00,800 SF.) M -F, 8-5 M -F, 8-5 u EX 15 TI NG DRIVE !2 SL JA 15 M SI Y AN a II 12 Y K % 41. 4 1 EOSTING RRASN BRC AR[IRRY- AM SF TOTAL pRdECT SUMMARY DATE: 05/10/17 PWLCC k-rcR TASENC ROOM 940 IF. PROECT AGOR M : 2970 COLLEGE AM SLOE D RESIROM INNLIVAY 200 IF COM MESA CA 92626 PUEW TOTAL 9 H Sr. ZONm 4C (Cf7Ym AEww 06' wo Q 299 C1LEmE AM = 0000 IF. MIA4IRAL Z BUINE C AREA mm = 20 IF. 290 COIL AM = K400 IF 077 - 72 IF BLOW AREA A-1 SAGE IID Sr. 70TAL BELLOW AIEI = 24,400 IF MERRY PRODCCIM • L51B SF. (M2IDR am REL / Dam) FRDECT AREA 3,000 SF. 9DUSTRE4 TOTAL = (960 IF (MRC BRIERY - SLOE D) PUWC PANONC . It PAW PAINOW RECOM - A WAGES AT 10/1000 IF. (3,/1000 SO AF70 )MM PATRON( FROWED = 7J SPACES ML57AL PARORG - 6 SPACES AT J/{OTD SF. Sri_ sw:EXISTING SITE PLAN DATE: 05/10/17 JOB NO. 17-14 DRAWN: C.W. Q CHECKED: D.M. Z SCALE: NOTED SHEET A-1 SCALE: 1'=20� O" OF SHEETS ATTACHMENT 2 ACTIVE ABC LICENSES WITHIN THE SUBJECT CENSUS TRACT (639.02) 1 639.02 47 Census Tract 3030 HARBOR BIVD Off -Sale OActive ABC Licenses F� Active On -Sale 41 ABC Licenses 1450 BAKER ST, STE E Project Site ATTACHMENT 2 ACTIVE ABC LICENSES WITHIN THE SUBJECT CENSUS TRACT (639.02) 1 381495 47 WINGNUTS 3030 HARBOR BIVD 01/28/2002 12/31/2017 WILD BLUE YONDER LLC 2 50%80 41 SUSHI TERI 1450 BAKER ST, STE E 05/25/2031 04/30/2018 ASAHI SYSTEMS INC. 3 534370 41 NIMMAN THAI CUISINE 1450 BAKER ST, STE C 09/04/2013 08/31/2018 AKENAVIN CORPORATION 4 571306 41 FULL MOON SUSHI 1420 BAKER ST, STE 1A 08/19/2016 09/30/2017 HLCM INC. 5 521407 41 RANCES CHICAGO PIZZA 1420 BAKER ST, STE B 08/24/2012 07/31/2018 RANCE'S CHICAGO PIZZA, LLC 6 530336 41 HONDA YA BOX 2959 FAIRVIEW RD 05/02/2013 04/30/2018 H - Y BOX INC 7 553556 47 SUPER As MEXICAN FOOD 2949 FAIRVIEW RD 07/13/2015 06/30/2018 LA FAMILIA SANDOVAL, LLC 8 84564 41 DOJOS 1148 2750 HAR80R BLVD 08/05/1988 12/3112017 DOJOS RESTAURANTS INC IA'd 1 II(INS1 35 11(IN�I HUSINI SS NAM[ 1CHEVRON PRF MIS[ S ADDR 3390 HARBOR BLVD ORIG ISS. DAH 04/36/1999 F XPIR [)AT t 03/31/2018 PRIMARYOWN[R CHEVRON STAT IONS INC 2 402842 21 TARGET T1293 3030 HARBOR BLVD, STEA 06/18/2004 07/31/2018 TARGET CORPORATION 3 459974 21 SPROUTS FARMERS MARKETS 3030 HARBOR BLVD, STE D 12/17/2007 11/30/2017 HENRYS HOLDINGS LLC 4 515695 20 CIRCLE K 9456 3006 HARBOR BLVD 02/28/2012 06/30/2018 CIRCLE K STORES INC 5 506106 21 MR BUCKS LIQUOR 2989 FAIRVIEW RD 01/06/2011 06/30/2018 CHANG, JENNY HUICHEN 6 523772 21 IONS UQUOR 2790 HARBOR BLVD, 101 & 102 09/20/2012 08/31/2018 SHANDILYA ENTERPRISE INC. 'queryrun on 10/13/2017 Proposed Project Unit POJ2Ct Sit,' PCrrlang Lor ENT Two Buildings On-site 2940 College Avenue Building Alley Abutting Project Site Parking Behind Building �� icu t4l Mesl-1 City of Costa Mesa ATTACHMENT 4 ❑ Appeal of Commissio�'10"�ic[n'!::$A, Ao F ❑ Appeal of Zoning AdrA I trator/9taff D .kion - $690.00 (FEES NIUST BE PAID IN FULL AT TIV1E OF FILING APPEAL) APPLICATION FOR APPEAL OR REVIEW Applicant Name' I ow- �p -Q u Address: Phone: Representing: REQUEST FOR: ❑ APPEAL M REVIEW Decision of which appeal or review is requested: (give application number, if applicable, and the date of the decision, if known.) 1 q - 3✓ew my 9:0s x\1e of Ct. 2-�i3o Co(tfnc pw--e- Decision by: Reasons for requesting appeal or review: TO nQ,vi&J Cu-oc&qv-e- ah-c� dc6v- k";v� Date: (A I" I ! ;�— Signature: "If you are serving as the agent for another person, please identify the perso our pre—sWnt and provide proof of authorization. —Review may be requested only by Commissions, Commission Members, Cityuntil, or City Council Members. For office use only— do not write below this line REV 9-1-t5 SCHEDULED FOR THE CITY COUNCIUCOMMISSION MEETING OF: —1-4— Applicant Name* Address Phone REQUEST FOR: CITY CLE;RK City of Costa Mesa Appeal of Planning Commission Decision/Rehearing: $1,220.00 -2 PM 3.5 Appeal of Zoning Administrator/ Building Official /Fire Marshal / Staff Decision $690 00 APPLICATION FOR APPEAL OR REVIEW Sandra L. Genis 77 Fair, Costa Mesa, Ca 714-754-0814 APPEAL REVIEW* Decision of which appeal or review is requested: (give application number, if applicable, and the date of the decision, known.) A-17-19, conditional use permit for a microbrewery (Brewing Reserve of California), with a tasting room. he business proposes to occupy 3,000 square feet at 2930 College Avenue. Decision by: Planning Commission Reasons for requesting appeal or review: 'If you are serving as the agent for another person, please identify the person you represent and provide proof of "Review may be requested only by Planning Commission, Planning Commission Member, City Council, or City Council Member For office use only — do not write below this line SCHEDULED FOR THE CITY COUNCIL/PLANNING COMMISSION MEETING OF: If appeal, rehearing, or review is for a person or body other than City Council/Planning Commission, date of hearing of appeal, rehearing, or review: September 22, 2017 City of Costa Mesa Attn: Planning Division 77 Fair Drive, Costa Mesa, CA 92626 RE: CUP Application No PA -17-19 To whom it may concern: ATTACHMENT As a property owner of an industrial property in the immediate area to the location of the proposed micro - brewery, I want to convey my opposition to this application. The area where this brewery is proposed is located among non -retail businesses. I feel the additional vehicular and pedestrian that will come from this micro -brewery will be a disruption to many of the businesses along Logan Avenue as well as increasing the risk of vandalism or burglary. Also of concern is the likelihood that the patrons of the proposed establishment will be leaving the location while under the influence, thus causing a hazard around my property, and to the general public at large. Your consideration of my opposition in this matter. S i er y, Donald B. Ayres, Jr. Chairman of the Board Ayres Group Received City of Costa Mesa Development Services Department SEP 25 2017 COLGAN, JULIE From: Minuteman Press <costamesa@minutemanpress.com> Sent: Friday, September 22, 2017 3:19 PM To: PLANNING COMMISSION Subject: Voicing our Support PA -17-19 Dear Planning Commission, We fully support the opening of a microbrewery at 2930 College Avenue, Unit D, Costa Mesa, CA 92626. We are the neighbors (next suite) and have absolutely "no objection" to the opening of this business. We feel it would enhance the business environment in the area. Warm Rgds, Dave Bhasin President Minuteman Press of Costa Mesa 2930 College Avenue, Unit C Costa Mesa, CA 92626 P: 714-662-1000 F: 714-662-1002 ,.,eia.minutemanpress. ccr., SERVING COSTA MESA / NEWPORT BEACH SINCE 1977 ATTACHMENT 6 , 11111' 1. 11 1� !�ea�,forn.,a CONDITIONAL USE PERMIT: BREWING RESERVE OF CALIFORNIA APPLICANT STATEMENT Project Description TSArchigelago, LLC will be operating as "Brewing Reserve of California," a production craft brewery of approximately 3,000 square feet, including an ancillary retail space to permit the sale of craft beer brewed on the premises for on-site and off-site consumption. Brewing Reserve of California proposes the manufacturing of small batch indie craft beer subject to federal approval through the Alcohol and Tobacco Tax and Trade Bureau (TTB) and California state Alcohol Beverage Control (ABC) license type 23 - small beer manufacturer. The proposed brewery is located in an industrial area at 2930 College Ave. Costa Mesa, 92626. The applicants are Steve Aguilar and Teryle Aguilar representing TSArchigelago, LLC as managing members. We are an agent of property owner Tim Mullahey of MT Real Estate LLC. Executive Summary The explosion of craft beer has led to a significant number of breweries opening throughout the US. The craft beer industry is estimated to have 12.2% market share of beer sales in 2015 which is up from 6.5% in 2012. Revenue growth is expected to continue to grow 5.5% a year between 2015 and 2020. California has been a hotbed of the craft beer movement but Orange County has often been overlooked for other locations in San Diego, Los Angeles, and San Francisco. Currently, there are over 100 breweries in San Diego alone. This means there is 1 brewery for every 13,500 people living in San Diego. Costa Mesa recently had its second craft brewery approved by the city making the ratio 1 brewery for every 56,000 people living in Costa Mesa. This is a conservative estimate since it does not consider the nearby city of Newport Beach. 11 Pa e I Brewing Reserve of California is an indie craft brewery looking to deliver to the underserved Costa Mesa market. Unlike traditional beer, small batch beer brewing requires a significant time commitment and a greater level of artistry not seen in customary beer brewing. This leads to a premium being paid for craft beer making the target market a more mature affluent market. Furthermore, clientele see this as a location to gather with their friends or work while enjoying a delicious and unique beer. We believe this location will be perfectly situated to serve local patrons and become a destination location for those in surrounding cities. The craft beer community is a sophisticated consumer that is looking for an experience. Drinking unique and fresh beer is critical to the experience as well as being on -location where the beer is made and meeting those who made it. A location where friends and families can gather is just as important as the beer. Mission California is a special place we are proud to call home. The name Brewing Reserve of California embodies those things we appreciate most about California such as the diversity of landscapes, people, and ideas. Our location serves as a meeting place to bring our community together and our beer will celebrate this vision by offering a wide range of beer styles. We also want to give back to the community so we are partnering with four conservation groups that represent the distinct landscapes of California: Ocean, Desert, Forest, Mountains. A landscape will be chosen for each beer we brew that it best represents. Proceeds of that sale will be donated to the partner we are working with. Here are our partners: Save Our Shores is a nonprofit marine conservation organization in Santa Cruz, California. Our mission is caring for the marine environment through ocean awareness, advocacy, and citizen action. Since 1993, the Sierra Nevada Alliance has been protecting and restoring Sierra lands, water, wildlife, and communities. Our mission is to protect and restore the natural resources of the Sierra Nevada for future generations while promoting sustainable communities. We provide resources and networking opportunities to regional conservation groups, implement the Sierra Nevada AmeriCorps Program, and advocate on behalf of "The Range of Light." in— Team The Desert Tortoise Preserve Committee is dedicated to the recovery and conservation of the Desert Tortoise (Gopherus agassizii) and other rare and endangered species inhabiting the Mojave and western Sonoran deserts. To be determined Steven Aguilar, Founder Steven Aguilar is one of two founders of Brewing Reserve of California and will serve as the day-to-day lead of the business. Steven has five years' experience honing his home brewing abilities by entering in countless contests and receiving feedback from both judges and consumers alike. He continues to experiment with a variety of styles and flavors that will keep his customers coming back. Currently, Steven serves as the Sr. Director, Compensation and Benefits for Pandora Media in Oakland, CA. He works directly with the board of directors and executive level positions to determine the corporate rewards strategy for acquisition and retention of top talent. Prior to Pandora Media, Steven has worked for companies such as Disney, Texas Instruments, and Amgen. Steven currently holds two masters degrees including an MBA from Pepperdine. <<Steven Aguilar resume included>> Teryle Aguilar, Founder Teryle is the second founding member of Brewing Reserve of California. Teryle brings her marketing and operational expertise to the business. As a prior business owner, Teryle knows what it entails to start and successfully manage a business. Teryle will continue to work as the Head of Human Resources for Fisher & Paykel, a premium appliance company based in Costa Mesa, but will provide consulting services to the brewery as needed. Prior to her currently role, Teryle worked as VP Marketing and HR for VigLink an Ad Technology company, then worked at Pandora and held continuously progressive roles within NBC and General Electric. «Teryle Aguilar resume included>> 20- Steve Aguilar Experience Zendesk, San Francisco, CA Head of Total Rewards Apr 2016 -Present Managing Zendesk's global total rewards operations in 13 countries. Ensuring reward programs are competitive, effective, easy to understand, and consistent with business strategy • Create material and present to board members of the Compensation Committee in support of evolving rewards strategy • Created and implemented career framework to provide clear career paths, job expectations, and tied rewards to framework for consistent and fair administration • Managed annual merit cycle including introduction of new compensation management tool, extending planning deeper into the organization, and training for managers Pandora Media, Oakland, CA Sr. Director, Compensation & Benefits Oct 2013 -Jan 2016 Disney Interactive Media Group, Palo Alto, CA/Glendale, CA Senior Manager, Compensation Dec 2011 -Oct 2013 Texas Instruments, Dallas, TX Manager, Compensation Jul 2010 -Dec 2011 Activision Blizzard, Santa Monica, CA Manager, Compensation May 2007 -May 2009 Amgen, Inc., Thousand Oaks, CA Manager, Executive Compensation Oct 2007 -May 2009 Manager, Data Analysis Jul 2005 -Oct 2007 Education 2014 Pepperdine University, MBA Malibu, CA 2005 CSU Long Beach MA, 1/0 Psychology Long Beach, CA 2003 San Diego State University BA, Psychology San Diego, CA 41 - i - - io Teryle Lynn Aguilar Experience FISHER & PAYKEL APPLIANCES. — COSTA MESA Head of Human Resources & Marketing (Interim)— Dec/16—Present Responsible for all aspects of Human Resources strategy across North America & Europe. Ensuring operational excellence, high employee engagement and compliance across these regions. Supporting Marketing activities for North America on a interim basis. • Create and develop human practices for North America • Oversee all Health & Safety for all manufacturing and Warehouse locations across North America VIGLINK INC. – SAN FRANCISCO VP, Human Resources & Marketing —July/15-Dec/16 PANDORA MEDIA –NEW YORK/SAN FRANCISCO Sr. Director, Human Resources - May/14-July/15 GE/ NBC UNIVERSAL/COMCAST– NEW YORK/VANCOUVER Director, Human Resources, Ad Sales (Feb/13- May/14) Director, Human Resources, NBC News Digital & Corporate Functions (Feb/11-Feb/13) Transition Manager- GE Corporate/NBC Universal (Mar/10-Feb/11) HR Project Manager — NBC Sports & Olympics (Feb/09-Apr/10) HRLDP - GE Capital Canada (3 month contract) WEBTECH WIRELESS INC. - Sept/07- November/08 Human Resources Manager —Vancouver, Canada Education & Training University of Calgary, Calgary, Alberta BSc. (Hon.) - December 2005 Faculty of Science, Major in Biochemistry PHR & SPHR Certification GE Crotonville- Human Resources Leadership Program SI_ — Conditional Use Permit The property at 2930 College Ave. is zoned MG - general industrial and has a general plan land use designation of light industrial. The property is located at the corner of College Ave. and Logan Ave. The mixed-use surrounding area consists of industrial use such as a metal shop and manufacturing including Minuteman Press and Growers Direct which share the surface parking lot for 2930 College Ave. The lot contains 32 parking spaces to service the entire 10,000 square foot building. The proposed floor plan includes a public area of 1,140 square feet and industrial area of 1,860 square feet. This would require a total of 17 parking spaces to service the needs of the brewery. However, the tasting room will be open after regular business hours of the other businesses that share the parking lot leaving more than enough room with 32 parking spaces available. No food service will be provided, however, delivery of food for on-site consumption is being proposed from nearby businesses. We will designate two parking spots for food delivery service drop-off making the total need 19. This still leaves 13 spaces available. The proposed hours of operation are broken down in the table below and separated by category. Production indicates the beer production which will be done during the morning to afternoon hours (SAM-5PM). The tasting room opening will be 5PM during the weekdays and 11AM on the weekend. Food service will only be available after the other businesses have closed eliminating the potential for traffic. The hours for the business that share the parking lot have also been included for reference as well as the businesses at 2940 College Ave. Hours of Operation Activity Mon Tues Wed Thurs Fri Sat Sun Production 5AM-5PM 5AM-5PM 5AM-5PM 5AM-5PM 5AM-5PM 5AM-5PM 5AM-5PM Tasting 5PM-10PM 5PM-10PM 5PM-10PM 5PM-12AM 5PM-12AM 11AM-12AM 11AM-10PM Food Service 5PM-10PM 5PM-10PM 5PM-10PM 5PM-12AM 5PM-12AM 11AM-12AM 11AM-10PM Growers Direct* 7AM-4PM 7AM-4PM 7AM-4PM 7AM-4PM 7AM-4PM 7AM-2PM Closed Minuteman Press* 8AM-5PM 8AM-5PM 8AM-5PM 8AM-5PM 8AM-5PM Closed Closed Giovani Metal Art 8AM-5PM 8AM-5PM 8AM-5PM SAM-5PM 8AM-5PM Closed Closed AbFab Events 8AM-5PM 8AM-5PM 8AM-5PM 8AM-5PM SAM-5PM Closed Closed *Businesses that share parking lot 6 1 P a RESOLUTION NO. 17 - ATTACHMENT 7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA UPHOLDING THE PLANNING COMMISSION'S DECISION AND APPROVING CONDITIONAL USE PERMIT PA -17-19 FOR A MICROBREWERY (BREWING RESERVE OF CALIFORNIA) WITH A TASTING ROOM AND RETAIL SALES AND A CONDITIONAL USE PERMIT FOR THE SALE OF ALCOHOLIC BEVERAGES FOR ON-SITE CONSUMPTION AFTER 11 PM WITHIN 200 FEET OF A RESIDENTIAL ZONE AT 2930 COLLEGE AVENUE, UNIT D THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY RESOLVES AS FOLLOWS: WHEREAS, an application was filed by Steven Aguilar, applicant and business owner for the property owner at the time of filing, Tim Mullahey with MT Real Estate LLC requesting approval of approval of conditional use permits for a microbrewery (Brewing Reserve of California) operating past 11 PM within 200 feet of a residential zone with a tasting room and retail sales of beer produced on the premises and related products within a 3,000 sq. ft. tenant space. Proposed hours of operation for the microbrewery are Monday through Sunday: 5 AM to 5 PM; and proposed hours of operation for the tasting room are: Monday through Wednesday: 5 PM to 10 PM; Thursday and Friday: 5 PM to 12 AM; Saturday: 11 AM to 12 AM; and Sunday: 11 AM to 10 PM; and WHEREAS, a duly noticed public hearing held by the Planning Commission on September 25, 2017 with all persons having the opportunity to speak for and against the proposal, and the project was approved by the Commission on a 3-1 vote. WHEREAS, a review of the Planning Commission's approval of the project was filed on October 2, 2017. WHEREAS, a duly noticed public hearing held by the City Council on November 7, 2017, with all persons having the opportunity to speak for and against the proposal. WHEREAS, the project has been reviewed for compliance with the California Environmental Quality Act (CEQA), the CEQA Guidelines, and the City environmental procedures, and has been found to be exempt from CEQA under Section 15301 for Existing Facilities. WHEREAS, the CEQA categorical exemption for this project reflects the independent judgment of the City of Costa Mesa. BE IT RESOLVED that, based on the evidence in the record and the findings contained in Exhibit A, and subject to the conditions of contained within Exhibit B, the City Council hereby APPROVES Conditional Use Permit PA -17-19 with respect to the use described above. BE IT FURTHER RESOLVED that the Costa Mesa City Council does hereby find and determine that adoption of this Resolution is expressly predicated upon the activity as described in the staff report for Conditional Use Permit PA -17-19, and upon the applicant's compliance with each and all of the conditions in Exhibit B, and compliance of all applicable federal, state, and local laws. Any approval granted by this resolution shall be subject to review, modification or revocation if there is a material change that occurs in the operation, or if the applicant fails to comply with any of the conditions of approval and/or mitigation measures. BE IT FURTHER RESOLVED that if any section, division, sentence, clause, phrase or portion of this resolution, or the documents in the record in support of this resolution, are for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions. PASSED AND ADOPTED this 7th day of November, 2017. ATTEST: CITY CLERK OF THE CITY OF COSTA MESA KATRINA FOLEY Mayor, City of Costa Mesa APPROVED AS TO FORM: CITY ATTORNEY -215- STATE OF CALIFORNIA) )ss COUNTY OF ORANGE ) I, BRENDA GREEN, City Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa, hereby certify that the above Council Resolution Number 17_ as considered at a regular meeting of said City Council held on the 7th day of November, 2017, and thereafter passed and adopted as a whole at the regular meeting of said City Council held on the 7th day of November, 2017, by the following roll call vote: AYES: NOES: ABSENT: IN WITNESS WHEREOF, I have hereby set my hand and affixed the Seal of the City of Costa Mesa this day of 2017 ,-2(c-- EXHIBIT A FINDINGS (APPROVAL) A. The proposed project complies with Costa Mesa Municipal Code Section 13-29(e) because: Finding: Compatible and harmonious relationship between the proposed building and site development, and use(s), and the building and site developments, and uses that exist or have been approved for the general neighborhood. Facts in Support of Findings: Compliance with the conditions of approval will allow this use to operate with minimal impact on surrounding properties and uses. The proposed use is located in an industrial area which includes a variety of industrial uses, including a print shop, wholesale distribution business (Growers Direct), an event planning business, and a metal fabrication business. Residential uses are protected from any noise or nuisance associated with the microbrewery and tasting room because all uses will be conducted underroof, the separation between the two uses, as well as the block wall existing on the north property line. Conditions of approval require noise sources be conducted in a manner that will allow the quiet enjoyment of the surrounding neighborhood. In addition, adequate on- site parking is provided for the proposed use. For the industrial brewing and other miscellaneous business activities during the day, parking impacts are not anticipated because the industrial operation provides sufficient parking and the business is not open to the public during normal business hours. Due to the off -set hours of operation for the tasting room, in relation to the other industrial uses on-site, sufficient parking is provided because the tasting room operates when other uses are closed. Finding: Safety and compatibility of the design of the parking areas, landscaping, luminaries, and other site features including functional aspects of the site development such as automobile and pedestrian circulation. Facts in Support of Findings: A condition of approval is included requiring the proposed restriping of the parking lot, in accordance to the site plan (which shows a total of 73 parking spaces). Finding: Compliance with any performance standards as prescribed elsewhere in this Zoning Code. Facts in Support of Findings: The General Plan land use designation of the property is Light Industrial. The Light Industrial land use designation applies to areas intended for a variety of light and general industrial uses. Uses are limited to small manufacturing and service industries, as well as larger industrial operations that can demonstrate design features or restricted operations that limit disruptions to surrounding uses. The proposed microbrewery with ancillary tasting room is not considered a use that will increase density or intensity allowed per the General Plan designation and is a compatible use for this land use designation. Furthermore, the proposed project is consistent with General Plan Land Use Policies LU -1.1, LU -3.1 and LU -6.15 in that the proposed project will provide a new entrepreneurial business and provide new employment opportunities in the community, will allow for incubation of growing industry in different parts of the City and, with compliance with conditions of approval, will ensure compatibility with the nearby residential neighborhood. Finding: The planning application is for a project -specific case and does not establish a precedent for future development. Facts in Support of Findings: Approval will apply to this project -specific location. Conditions of approval have been included that are specific to the proposed project. B. The information presented substantially complies with Costa Mesa Municipal Code Section 13-29(g)(2) in that: Finding: The proposed use is substantially compatible with developments in the same general area and would not be materially detrimental to other properties within the area. Facts in Support of Findings: The proposed use, as conditioned, is compatible with the uses in the surrounding area. Compliance with the conditions of approval will allow this use to operate with minimal impact on surrounding properties and uses. Residential uses are protected from any noise or nuisance associated with the microbrewery because residential uses are buffered by a 14,400 -square -foot industrial building, with a block wall between the subject property and the public alley. Furthermore, conditions of approval address restrictions on entertainment and noise to reduce impacts to adjacent residents. In addition, adequate on-site parking is provided for the proposed use. For the industrial brewing and other miscellaneous business activities during the day, parking impacts are not anticipated because the industrial operation provides sufficient parking and the business is not open to the public during normal business hours. Due to the off -set hours of operation for the tasting room, in relation to the other industrial uses on-site, sufficient parking is provided because the tasting room operates when other uses are closed. Finding: Granting the conditional use permit will not be materially detrimental to the health, safety and general welfare of the public or otherwise injurious to property or improvements within the immediate neighborhood. Facts in Support of Findings: The proposed use, as conditioned, will not generate adverse noise, traffic, or parking impacts that are unusual for industrially -zoned properties. Residential uses are protected from any noise or nuisance associated with the microbrewery and tasting room because all uses will be conducted underroof. Conditions of approval require noise sources be conducted in a manner that will allow the quiet enjoyment of the surrounding neighborhood. In addition, standard conditions of approval for Z �— establishments with off -sale retail alcohol sales are included to minimize impacts to adjacent properties and will be required to comply with the requirements of the Alcoholic Beverage Control Department. Furthermore, the proposed project is conditioned to restripe the parking lot, in accordance to the site plan (which shows a total of 73 parking spaces). Finding: Granting the conditional use permit will not allow a use, density, or intensity which is not in accordance with the General Plan designation and any applicable specific plan for the property. Facts in Support of Findings: The General Plan land use designation of the property is Light Industrial. The Light Industrial land use designation applies to areas intended for a variety of light and general industrial uses. Uses are limited to small manufacturing and service industries, as well as larger industrial operations that can demonstrate design features or restricted operations that limit disruptions to surrounding uses. The proposed microbrewery with ancillary tasting room is not considered a use that will increase density or intensity allowed per the General Plan designation and is a compatible use for this land use designation. Furthermore, the proposed project is consistent with General Plan Land Use Policies LU -1.1, LU -3.1 and LU -6.15 in that the proposed project will provide a new entrepreneurial business and provide new employment opportunities in the community, will allow for incubation of growing industry in different parts of the City and, with compliance with conditions of approval, will ensure compatibility with the nearby residential neighborhood. C. The project is exempt from the provisions of the California Environmental Quality Act under Section 15301 for Existing Facilities. D. The project, as conditioned, is consistent with Chapter XII, Article 3, Transportation System Management, of Title 13 of the Costa Mesa Municipal Code in that the development project's traffic impacts will be mitigated by the payment of traffic impact fees. Hoop Bike Rack A. Setbacks 1. Wall Setback: For Hoops set parallel to the wall, a minimum of 24" should be left between the wall and the rack. 36" is the recommended setback. For Hoops installed perpendicular to the wall, a 28" setback is the minimum distance. 36" is recommended. 2. Distance Between Racks: 24" is the minimum distance between racks. 36" is recommended. 3. Street Setback: 24" is the minimum distance between the street and the rack. 36" is recommended. The foot -mounted Hoop Rack has a 2.5" x 6" x .25" foot which is installed onto a concrete base with 4 masonry anchors. The foot - mounted Hoop Rack is generally less expensive to install and easier to remove than the in -ground mount model, while still maintaining the same EXHIBIT B CONDITIONS OF APPROVAL Ping. 1. The use shall be limited to the type of operation described in this staff report, which includes a microbrewery (Brewing Reserve of California) operating past 11 PM within 200 feet of a residential zone with ancillary use of a tasting room and retail sales of beer produced on the premises and related products within a 3,000 sq. ft. tenant space. Hours of operation for the microbrewery are Monday through Sunday, 5 AM to 5 PM; and proposed hours of operation for the tasting room/retail sales are Monday through Wednesday: 5 PM to 10 PM; Thursday and Friday: 5 PM to 12 AM; Saturday: 11 AM to 12 AM; and Sunday: 11 AM to 10 PM. Any change in the operational characteristics including, but not limited to, increased hours of operation, or provision for live entertainment, will require approval of an amendment to the conditional use permit, subject to Planning Commission approval. 2. Prior to final Planning Inspection, the parking lot shall be re -striped in accordance to the approved site plan. 3. The property shall designate one parking stall as drop-off parking spaces with permanent sign. The sign shall specify that the drop-off space will only be used by such services, and not for the use of patrons visiting the site. 4. Pick-up and drop-off parking space shall be designated with permanent freestanding signage that is approved by the Development Services Department. 5. Two hoop bike racks shall be installed and meet Transportation's specifications for materials, finishes, and placement. Materials 1.5" schedule 40 uncoated pipe (1.90" OD) Installation Methods: In -ground mount is embedded into concrete base. Flange mount has two 2.5" x 6" x .25" feet - 4 anchors. Finishes A rubbery PVC dip. Blue is standard. Hoop Bike Rack A. Setbacks 1. Wall Setback: For Hoops set parallel to the wall, a minimum of 24" should be left between the wall and the rack. 36" is the recommended setback. For Hoops installed perpendicular to the wall, a 28" setback is the minimum distance. 36" is recommended. 2. Distance Between Racks: 24" is the minimum distance between racks. 36" is recommended. 3. Street Setback: 24" is the minimum distance between the street and the rack. 36" is recommended. The foot -mounted Hoop Rack has a 2.5" x 6" x .25" foot which is installed onto a concrete base with 4 masonry anchors. The foot - mounted Hoop Rack is generally less expensive to install and easier to remove than the in -ground mount model, while still maintaining the same degree of security. 6. All uses shall be conducted within the tenant space (underroof). 7. This Conditional Use Permit does not include the allowance for live entertainment. Live entertainment may only be permitted subject to approval of a Conditional Use Permit and issuance of a "Public Entertainment Permit." Please contact Planning and Code Enforcement for application information. 8. All special events shall be reviewed by Planning Division for approval prior to the event, and may require a "Special Event Permit" from the Finance Department prior to the event. 9. No on-site food preparation is permitted. Food catering for special events may be allowed after such an event is reviewed by the Planning Division for approval prior to the event, and may require a "Special Event Permit" from the Finance Department prior to the event. 10. Prior to issuing the Building permit the conditions of approval shall be required to be incorporated on the approved plans. 11. The licensee shall not employ or use the services of any full- or part-time active or reserve peace officer currently employed by the City of Costa Mesa or any contiguous agency for security purposes. 12. The maximum occupancy, as determined by provisions of the Uniform Building Code or other applicable codes, shall be posted in public view within the premises, and it shall be the responsibility of management to ensure that this limit is not exceeded at any time. Occupant loads for the open patio area and the enclosed building area shall be calculated and posted separately. 13. The parking lot shall be posted with signs directing customers and employees to use consideration when entering their cars and leaving the parking lot. 14. The business shall be conducted, at all times, in a manner that will allow the quiet enjoyment of the surrounding neighborhood. The applicant and/or business owner shall institute whatever security and operational measures are necessary to comply with this requirement. 15. The applicant shall defend, indemnify, and hold harmless the City, its elected and appointed officials, agents, officers and employees from any claim, action, or proceeding (collectively referred to as "proceeding") brought against the City, its elected and appointed officials, agents, officers or employees arising out of (1) City's approval of the project, including but not limited to any proceeding under the California Environmental Quality Act. The indemnification shall include, but not be limited to, damages, fees and/or costs awarded against the City, if any, and cost of suit, attorney's fees, and other costs, liabilities and expenses incurred in connection with such proceeding whether incurred by the applicant, the City and/or the parties initiating or bringing such proceeding. This indemnity provision shall include the applicant's obligation to indemnify the City for all the City's costs, fees, and damages that the City incurs in enforcing the indemnification provisions set forth in this section. 16. All sales and service staff (within 90 days of hire) shall complete Responsible Beverage Service (RBS) training with a provider approved by the California Department of Alcoholic Beverage Control. A copy of the training certificates shall be kept on premises and presented to any authorized City official upon request. 17. The applicant shall maintain free of litter all areas of the premises under which the applicant has control. 18. Any new exterior lighting proposed shall be shielded and/or directed away from residential areas. 19. Prior to issuance of Certificate of Occupancy (C of O) the applicant shall provide a scaled and dimensioned digital site plan(s) for the project site, on either a CD or thumb drive, to the Planning Division. All site plans shall include an accurate and precise drawing of all building footprints and property line locations for the entire project site. All buildings shall be annotated with its corresponding address and suites if applicable. CODE REQUIREMENTS The following list of federal, state and local laws applicable to the project has been compiled by staff for the applicant's reference. Any reference to "City" pertains to the City of Costa Mesa. Ping. 1. Once the use is legally established, the planning application herein approved shall be valid until revoked. The Development Services Director or his designee may refer the planning application to the Planning Commission for modification or revocation at any time if, in his opinion, any of the following circumstances exist: 1) the use is being operated in violation of the conditions of approval; 2) the use is being operated in violation of applicable laws or ordinances or 3) one or more of the findings upon which the approval was based are no longer applicable. 2. Within 30 days of City Council action, the illegal outdoor storage shall be removed, or a Code Enforcement Case will be opened, which is subject to fines. 3. Permits shall be obtained for all signs according to the provisions of the Costa Mesa Sign Ordinance. 4. Any trash facilities shall be screened from view and designed and located appropriately to minimize potential noise and odor impacts to any adjacent residential areas. Bldg. 5. Comply with the requirements of the following adopted codes: 2016 California Residential Code, 2016 California Building Code, 2016 California Electrical Code, 2016 California Mechanical Code, 2016 California Plumbing Code, 2016 California Green Building Standards Code and 2016 California Energy Code (or the applicable adopted, California Residential Code, California Building Code, California Electrical Code, California Mechanical Code, California Plumbing Code, California Green Building Standards and California Energy Code at the time of plan submittal or permit issuance) and California Code of Regulations also known as the California Building Standards Code, as amended by the City of Costa Mesa. Requirements for accessibility to sites, facilities, buildings and elements by individuals with disability shall - 3Z- comply with chapter 11 B of the 2016 California Building Code. Bus. 6. All contractors and subcontractors must have valid business licenses to Lic. do business in the City of Costa Mesa. Final inspections, final occupancy and utility releases will not be granted until all such licenses have been obtained. 7. Business license shall be obtained prior to the initiation the business. Trans. 8. The applicant shall submit a $16,123 Traffic Impact Fee to the Transportation Division prior to the effective date of the conditional use permit. The traffic impact fee is based upon the average daily trip generation rate for the proposed use. The fee is required to fulfill mitigation of off-site traffic impacts pursuant to the prevailing schedule of charges adopted by the City Council. The traffic impact fee is calculated and includes credits for existing uses. NOTE: The Traffic Impact Fee will be recalculated at the time of issuance of the minor conditional use permit based upon any changes in the prevailing schedule of charges adopted by the City Council and in effect at that time. SPECIAL DISTRICT REQUIREMENTS The requirements of the following special districts are hereby forwarded to the applicant: Sani. 1. Prior to the Building Division (AQMD) issuing a demolition permit, contact South Coast Air Quality Management District located at: 21865 Copley Dr. Diamond Bar, CA 91765-4178 Tel: 909-396-2000 OR Visit their web site: http://www.costamesaca.gov/modules/showdocument.aspx?documentid =23381 The Building Division will not issue a demolition permit until an identification number is provided by AQMD. OCHA 2. Provide a plan to the County of Orange Health Dept. for review and approval. RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA DENYING CONDITIONAL USE PERMIT PA - 17 -19 FOR A MICROBREWERY (BREWING RESERVE OF CALIFORNIA) WITH A TASTING ROOM AND RETAIL SALES AND A CONDITIONAL USE PERMIT FOR THE SALE OF ALCOHOLIC BEVERAGES FOR ON-SITE CONSUMPTION AFTER 11 PM WITHIN 200 FEET OF A RESIDENTIAL ZONE AT 2930 COLLEGE AVENUE, UNIT D THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY RESOLVES AS FOLLOWS: WHEREAS, an application was filed by Steven Aguilar, applicant and business owner for the property owner at the time of filing, Tim Mullahey with MT Real Estate LLC requesting approval of approval of conditional use permits for a microbrewery (Brewing Reserve of California) operating past 11 PM within 200 feet of a residential zone with a tasting room and retail sales of beer produced on the premises and related products within a 3,000 sq. ft. tenant space. Proposed hours of operation for the microbrewery are Monday through Sunday: 5 AM to 5 PM; and proposed hours of operation for the tasting room are: Monday through Wednesday: 5 PM to 10 PM; Thursday and Friday: 5 PM to 12 AM; Saturday: 11 AM to 12 AM; and Sunday: 11 AM to 10 PM; and WHEREAS, a duly noticed public hearing held by the Planning Commission on September 25, 2017 with all persons having the opportunity to speak for and against the proposal, and the project was approved by the Commission on a 3-1 vote. WHEREAS, a review of the Planning Commission's approval of the project was filed on October 2, 2017. WHEREAS, a duly noticed public hearing held by the City Council on November 7, 2017, with all persons having the opportunity to speak for and against the proposal. WHEREAS, the project has been reviewed for compliance with the California Environmental Quality Act (CEQA), the CEQA Guidelines, and the City environmental procedures, and CEQA does not apply to this project because it has been rejected and will not be carried out, pursuant to Public Resources Code Section 21080(b)(5) and CEQA Guidelines Section 15270(a). WHEREAS, the CEQA categorical exemption for this project reflects the independent judgment of the City of Costa Mesa. BE IT RESOLVED that, based on the evidence in the record and the findings contained in Exhibit A, the City Council DENIES Conditional Use Permit PA -17-19 with respect to the use described above. BE IT FURTHER RESOLVED that if any section, division, sentence, clause, phrase or portion of this resolution, or the documents in the record in support of this resolution, are for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions. PASSED AND ADOPTED this 7th day of November, 2017. ATTEST: CITY CLERK OF THE CITY OF COSTA MESA KATRINA FOLEY Mayor, City of Costa Mesa APPROVED AS TO FORM: CITY ATTORNEY STATE OF CALIFORNIA) )ss COUNTY OF ORANGE ) I, BRENDA GREEN, City Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa, hereby certify that the above Council Resolution Number 17-_ as considered at a regular meeting of said City Council held on the 7th day of November, 2017, and thereafter passed and adopted as a whole at the regular meeting of said City Council held on the 7th day of November, 2017, by the following roll call vote: AYES: NOES: ABSENT: IN WITNESS WHEREOF, I have hereby set my hand and affixed the Seal of the City of Costa Mesa this day of , 2017 3Cv` EXHIBIT A FINDINGS (DENIAL) A. The information presented does not comply with Costa Mesa Municipal Code Section 13-29(g)(2) in that: Finding: The proposed project is not compatible with developments in the same general area and would be materially detrimental to other properties within the area. Finding: Granting approval of the project will be materially detrimental to the health, safety, and general welfare of the public or otherwise injurious to property or improvements within the immediate neighborhood. Finding: Granting approval of the project will allow a use, density, or intensity which is not in accordance with the General plan designation. B. The project has been reviewed for compliance with the California Environmental Quality Act (CEQA), the CEQA Guidelines, and the City's environmental procedures. Pursuant to Public Resources Code Section 21080(b)(5) and CEQA Guidelines Section 15270(a), CEQA does not apply to this project because it has been rejected and will not be carried out. C. The project is exempt from Chapter XII, Article 3, Transportation System Management, of Title 13 of the Costa Mesa Municipal Code. ATTACHMENT 8 PLANNING COMM/SS/ON AGENDA REPORT MEETING DATE: SEPTEMBER 25, 2017 ITEM NUMBER: SUBJECT: PLANNING APPLICATION PA -17-19 FOR A CONDITIONAL USE PERMIT FOR A MICROBREWERY (BREWING RESERVE OF CALIFORNIA) WITH A TASTING ROOM AND RETAIL SALES AND A CONDITIONAL USE PERMIT FOR THE SALE OF ALCOHOLIC BEVERAGES FOR ON-SITE CONSUMPTION AFTER 11 PM WITHIN 200 FEET OF A RESIDENTIAL ZONE AT 2930 COLLEGE AVENUE, UNIT D DATE: SEPTEMBER 14, 2017 FROM: PLANNING DIVISION / DEVELOPMENT SERVICES DEPARTMENT PRESENTATION BY: JUSTIN ARIOS, ASSISTANT PLANNER FOR FURTHER INFORMATION CONTACT: JUSTIN ARIOS (714) 754-5667 justin.arios@costamesaca.gov DESCRIPTION The proposed project involves conditional use permits for a microbrewery (Brewing Reserve of California), with a tasting room. The business proposes to occupy 3,000 square feet at 2930 College Avenue. The business involves: • Retail sales of beer produced on the premises and related products. The microbrewery will not sell food. • The proposed hours of operation are: o The microbrewery: Monday through Sunday, 5 AM to 5 PM o The tasting room/retail sales: ■ Monday through Wednesday from 5 PM to 10 PM; ■ Thursday and Friday from 5 PM to 12 AM; ■ Saturday from 11 AM to 12 AM; and ■ Sunday from 11 AM to 10 PM. • Operating past 11 PM within 200 feet of a residential zone. APPLICANT OR AUTHORIZED AGENT Steven Aguilar is the applicant/business owner for the property owner, Tim Mullahey with MT Real Estate LLC. RECOMMENDATION 1. Find that the project is categorically exempt from the provisions of the California Environmental Quality Act section 15301; and 2. Adopt a resolution to approve Planning Application PA -17-19, subject to conditions of approval. BACKGROUND The subject property is located on the northeast corner of College Avenue and Logan Avenue. The site zoned General Industrial (MG), and has a General Plan land use designation of Light Industrial. Physical on-site improvements of the property include two multi -tenant buildings (2930 and 2940 College Avenue) with a total of 73 parking spaces and three points of ingress/egress (one on College Avenue and two on Logan Avenue). The proposed use will occupy a 3,000 -square -foot tenant space, located in one of the suites in the southern building on the property (along Logan Avenue). The subject property is surrounded by MG -zoned properties to the east, south (across Logan Avenue) and west (on the southern corner of College Avenue and Dale Way); Local Business (Cl) properties to the west (on the northern corner of College Avenue and Dale Way); and Multiple -Family Residential (R3) properties to the north (across a public alley). There are currently no open Code Enforcement cases pending for the project location. However, it should be noted that there is illegal outdoor storage on-site in a portion of the parking lot, which is discussed later in this report. ONAI YSIS Conditional Use Permit The applicant is requesting approval of conditional use permits for a microbrewery (Brewing Reserve of California) operating past 11 PM within 200 feet of a residential zone with a tasting room and retail sales of beer produced on the premises, as well as related products within a 3,000 sq. ft. tenant space. The proposed floor plan consists of a 940 -square -foot tasting room, brewery production area including a grist mill, cooler room, storage room, boiler room, office, and restrooms. The table below provides a breakdown of the floor plan. FootageUnit Square .. Public Area Tasting Room 940 sf Restrooms &Hallway 200 sf Public Area Total 1,140 sf Industrial Area Cooler 120 sf Office 72 sf Storage 120 sf Brewery Production (including grist mill & broiler 1,548 sf Industrial Area Total 1,860 sf UNIT TOTAL 3,000 sf 73G -- Hours of Operation The proposed hours of operation for the microbrewery operations (not open to the public) are Monday through Sunday, 5 AM to 5 PM. The proposed hours of operation for the tasting room (open to the general public) are: • Monday through Wednesday from 5 PM to 10 PM; • Thursday and Friday from 5 PM to 12 AM; • Saturday from 11 AM to 12 AM; and • Sunday from 11 AM to 10 PM. Below is a tenant list of the balance of the property, with hours of operation of the existing and proposed businesses, as provided by the applicant: Parking The parking requirement for the proposed business is based on the industrial/manufacturing area and the tasting room/public area. • The parking ratio for the industrial/manufacturing area is parked at three spaces per 1,000 square feet of gross floor area, or six parking spaces for the 1,860 -square -foot area. The parking ratio for the tasting room/public area is parked at 10 spaces per 1,000 square feet of gross floor area (for establishments where food or beverages are served with more than 300 square feet of public area) or 11 parking spaces for the 1,140 -square -foot area. During normal business hours during the week (8 AM to 5 PM Monday through Friday), parking impacts are not anticipated since the microbrewery is not open to the public. During --4o-- Tenant List / Hours of Operation Business Address MON TUE WED THURS FRI SAT SUN Giovani Metal 2940 8AM— CU In 8AM— 8AM— 8 AM — 8 AM — CLOSED CLOSED Art Design t A 5 PM 5 PM 5 PM 5 PM 5 PM Absolutely Fabulous 2940 8AM— 8AM— 8AM— 8AM— 8AM— Events & College; 5 PM 5 PM 5 PM 5 PM 5 PMM CLOSED CLOSED Productions Unit B Grower's 2930 College; 7 AM — 7 AM — 7 AM — 7 AM — 7 AM — 7 A— 2 P CLOSED Direct Flowers Unit A/B 4 PM 4 PM 4 PM 4 PM 4 PM Minuteman 2930 College; 8AM — 8AM — 8 AM— 8 AM — 8AM— CLOSED CLOSED Press Unit C 5 PM 5 PMM 5 PM 5 PM 5 PM BRC Brewery 2930 — Production 5AM— 5AM— 5AM— College; 5AM— 5AM— 5AM-5 5AM-5 (PROPOSED) 5 PM 5 PM 5 PM Unit D 5 PM 5 PM PM PM BRC Brewery 2930 — Tasting College; 5 PM — 5 PM — 5 P M— 5 PM — 5 PM — 11 AM —12 11 AM — Room Unit t D 10 PM 10 PM 10 PM 12 AM 12 AM AM 10 PM (PROPOSED) Parking The parking requirement for the proposed business is based on the industrial/manufacturing area and the tasting room/public area. • The parking ratio for the industrial/manufacturing area is parked at three spaces per 1,000 square feet of gross floor area, or six parking spaces for the 1,860 -square -foot area. The parking ratio for the tasting room/public area is parked at 10 spaces per 1,000 square feet of gross floor area (for establishments where food or beverages are served with more than 300 square feet of public area) or 11 parking spaces for the 1,140 -square -foot area. During normal business hours during the week (8 AM to 5 PM Monday through Friday), parking impacts are not anticipated since the microbrewery is not open to the public. During --4o-- this time, the microbrewery will operate as a typical industrial use which only requires six parking spaces. After normal business hours during the week when the tasting room is open (from 5 PM to 10 PM), 11 parking spaces are required. Parking impacts are not anticipated because all the other business on-site close at 5 PM or earlier, leaving the entire parking lot (73 spaces) available for use by tasting room patrons. On the weekends, parking impacts are not anticipated because only one of the tenants operate on the weekends. Grower's Direct Flowers is open on Saturdays from 7 AM to 2 PM. Taking into account the parking required by Code for its industrial use, Grower's Direct Flowers requires 12 parking spaces. A minimum of 61 spaces will be available for use by the tasting room during this time. If parking shortages or other parking -related problems develop, conditions of approval will require the business operator to institute appropriate operational measures necessary to minimize or eliminate the problem including, but not limited to, reducing the operating hours of the business. Illegal Outdoor Storage On -Site /Parking Lot Condition As noted on the site plan, a total of 73 parking spaces are shown. However, upon inspection of the site, staff noticed illegal storage located in the northeast corner of the property, as well as the need of the parking spaces in the parking lot to be re -striped. The illegal storage shall be removed. Per Code Requirement 3, within 30 days of final Planning Commission action, the illegal outdoor storage shall be removed, or a Code Enforcement Case will be opened, which is subject to fines. In addition, Condition of Approval 2 requires the parking lot to be re -striped, subject to final planning inspection. Additional Discussion No food trucks are proposed to operate on this project site and no food service is provided as part of the brewery tasting room. However, due to the evolution of drop-off services (e.g. uber, lyft or uberEATS), these types of services to the site may occur during the tasting room hours of operation. As there is excess parking available during tasting room hours, it is not expected that drop-off services will cause any parking concerns. But, these services can impact the flow of traffic and circulation within the center if it is not clear where food deliveries should be dropped off. To mitigate any potential impacts from drop-off services, a condition of approval is included requiring the property to designate one parking space as a drop-off parking space. This results in one less space that is open at all times for patrons arriving in their own vehicle. However, the City allows the provision for bike racks to substitute for one required parking space. The applicant will provide bike racks required by the City and therefore meet code required parking. The condition of approval also requires the applicant to mitigate any future parking issues if required by the city. - .11- Noise The proposed use and property is located less than 200 feet from a residentially -zoned property. The project site abuts a public alley, which is adjacent to residentially -zoned property. Although the subject property abuts residential zones, the unit the microbrewery will be occupying is buffered by a 14,400 -square -foot industrial building, with a block wall between the subject property and the public alley. The proposed use does not include live entertainment, amplified music, or music speakers outside. Background music within the tasting room area could be considered a noise source; however, the background music will be conducted entirely within the existing building. Furthermore, conditions of approval address restrictions on entertainment and noise to reduce impacts to adjacent residents. Staff Justifications for Approval Staff supports the above requests based on the following: • The proposed use, as conditioned, is compatible with the uses in the surrounding area. Compliance with the conditions of approval will allow this use to operate with minimal impact on surrounding properties and uses. Residential uses are protected from any noise or nuisance associated with the microbrewery because residential uses are buffered by a 14,400 -square -foot industrial building, with a block wall between the subject property and the public alley. Furthermore, conditions of approval address restrictions on entertainment and noise to reduce impacts to the adjacent residents. The proposed microbrewery with ancillary tasting room is not considered a use that will increase density or intensity allowed per the General Plan designation. The General Plan designation of the property is Light Industrial, which allows for general industrial uses, as well as certain commercial uses, provided the that the commercial use is determined to be complementary to the industrial uses. As such, the proposed use, as conditioned, will not generate adverse noise, traffic, or parking impacts that are unusual for industrially -zoned properties and the tasting room is a complementary use to the microbrewery. Conditions of approval require noise sources be conducted in a manner that will allow the quiet enjoyment of the surrounding neighborhood. In addition, standard conditions of approval for establishments with off -sale retail alcohol sales are included to minimize impacts to adjacent properties and will be required to comply with the requirements of the Alcoholic Beverage Control Department. CONDITION #6: All uses shall be conducted within the tenant space (underroof). CONDITION #12: The business shall be conducted, at all times, in a manner that will allow the quiet enjoyment of the surrounding neighborhood. The applicant and/or business owner shall institute whatever security and operational measures are necessary to comply with this requirement. • The Police Department does not have any objection to the use. The Police Department has reviewed the proposed use and has no objections to the approval of the application. As of the date of this report, the City has not received any complaints from the public regarding the proposed use. No adverse parking impacts are anticipated. For the industrial brewing and other miscellaneous business activities during the day, parking impacts are not anticipated because the industrial operation provides sufficient parking and the business is not open to the public during normal business hours (Monday through Sunday 5 AM to 5 PM). Due to the off -set hours of operation for the tasting room, in relation to the other industrial uses on-site, sufficient parking is provided because the tasting room operates when other uses are closed and sufficient parking is provided for the use. Furthermore, conditions of approval will minimize the potential for parking and/or circulation impacts from the proposed use and any food delivery services. CONDITION #3: The property shall designate one parking stall as drop-off parking spaces with permanent sign. The sign shall specify that the drop- off space will only be used by such services, and not for the use of patrons visiting the site. GENERAL PLAN CONFORMANCE The proposed microbrewery is permitted in the MG zone, subject to approval of a conditional use permit. Subject to conditions of approval, the proposed use is in conformance with the 2015-2035 General Plan. Specifically, the project complies with the following Land Use Objectives and Policies: Policy LU -1.1: Provide for the development of a mix and balance of housing opportunities, commercial goods and services and employment opportunities in consideration of the need of the business and residential segments of the community. Consistency: The proposed use will provide a new entrepreneurial business in Costa Mesa and provide new employment opportunities in the community. 2. Policy LU -3.1: Protect existing stabilized residential neighborhoods, including mobile home parks (and manufactured housing parks), from the encroachment of incompatible or potentially disruptive land uses and/or activities. Consistency: The proposed use is conditioned so that all uses shall be conducted within the tenant space (underroof). Furthermore, conditions of approval address restrictions on entertainment and noise to reduce impacts to the adjacent residents. 3. Policy LU -6.15: Promote unique and specialized commercial and industrial districts within the City which allow for incubation of new or growing businesses and industries. Consistency: The proposed use is a growing industry and is proposed in a location where there are currently no microbreweries; therefore, approval encourages new businesses and entrepreneurial opportunities in a different area of the City. ENVIRONMENTAL DETERMINATION The project is exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15301, for Existing Facilities. If the use is denied, they would be exempt from the provisions of the CEQA under Section 15270(a) for projects which are disapproved. LEGAL REVIEW The draft resolutions have been reviewed and approved as to form by the City Attorney's Office. PUBLIC NOTICE Pursuant to Title 13, Section 13-29(d), of the Costa Mesa Municipal Code, three types of public notification have been completed no less than 10 days prior to the date of the public hearing: 1. Mailed notice. A public notice was mailed to all property owners within a 500 -foot radius of the project site. The required notice radius is measured from the external boundaries of the property. (See attached Notification Radius Map.) 2. On-site posting. A public notice was posted on each street frontage of the project site. 3. Newspaper publication. A public notice was published once in the Daily Pilot newspaper. As of this report, no communications have been received regarding this proposal. Any public comments received prior to the September 25, 2017 Planning Commission will be provided in a supplemental memo. ALTERNATIVES 1. Recommend approval of the project with modifications. The Planning Commission may suggest specific changes that are necessary to alleviate concerns. If any of the additional requested changes are substantial, the item should be continued to a future meeting to allow a redesign or additional analysis. In the event of significant modification to the proposal, should the Planning Commission choose to do so, staff will return with a revised resolution incorporating new findings and/or conditions. 2. Recommend Denial of the project. If the Planning Commission believes there are insufficient facts to support the findings of approval, Planning Commission must recommend denial of the application and provide facts in support of denial to be included in a resolution for denial. If the project were denied, the applicant could not submit substantially the same type of application for six months. CONCLUSION The proposed project requests conditional use permits for a microbrewery (Brewing Reserve of California) operating past 11 PM within 200 feet of a residential zone with ancillary use of a tasting room and retail sales of beer produced on the premises and related products within a 3,000 sq. ft. tenant space. The proposed use, with the recommended conditions of approval, will be consistent with City's Zoning Code and General Plan, and should generate minimal impact to surrounding properties. Therefore, staff recommends approval of the proposed project. JU TIN ARIOS Assistant Planner pzv, -,/ 4-h9,a -�h ARf I , AICP Economic Development & Development Services Director Attachments: 1. p 2. 3. 4. 5. "llom cc: Development Services Department Consultant Interim Assistant Development Services Director Sr. Deputy City Attorney Public Services Director City Engineer Transportation Services Manager Fire Protection Analyst File (2) Applicant: Steven Aguilar 1 Bormes Irvine, CA 92614 Property Owner: Tim Mullahey MT Real Estate LLC 4620 E Cerro Vista Dr. Anaheim, CA 92807 —45— ATTACHMENT 9 CITY OF COSTA MESA P.O. BOX 1200 • 77 FAIR DRIVE • CALIFORNIA 92628 - 1200 DEVELOPMENT SERVICES DEPARTMENT NOTICE OF DECISION PLANNING COMMISSION ACTION DATE: September 26, 2017 PROJECT NO: PA -17-19 SITE ADDRESS: 2930 College Avenue, Unit D FINAL ACTION: At a noticed public hearing on September 25, 2017 the Planning Commission approved this application, subject to conditions, by adoption of Planning Commission Resolution PC -17-40. The final resolution is attached. APPEAL PERIOD: This decision will become final unless appealed by 5 p.m., October 2, 2017 by the filing of the necessary form and fees with the City Clerk's office, located at 77 Fair Drive, Costa Mesa. PLANNING CONTACT: Justin Arios, Assistant Planner, (714) 754-5667 justin.arios@costamesaca.gov If you have any questions or comments regarding this notice of decision, please contact the project planner (above) or me at 714-754-5278. Sincerely, BARRY CURTIS, AICP Economic and Development Services Director DISTRIBUTION: Steven Aguilar Tim Mullahey 1 Bormes MT Real Estate LLC Irvine, CA 92614 4620 E Cerro Vista Drive Anaheim, CA 92807 Building Division (714) 754-5273 • Code Enforcement & Community Improvement Division (714) 754-5623 Housing & Community Development (714) 754-4870 • Planning Division (714) 754-5245 FAX (714) 7544856 • www.costamesaca.gov RESOLUTION NO. PC -17-40 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF COSTA MESA APPROVING A CONDITIONAL USE PERMIT FOR A MICROBREWERY (BREWING RESERVE OF CALIFORNIA) WITH A TASTING ROOM AND RETAIL SALES AND A CONDITIONAL USE PERMIT FOR THE SALE OF ALCOHOLIC BEVERAGES FOR ON-SITE CONSUMPTION AFTER 11 PM WITHIN 200 FEET OF A RESIDENTIAL ZONE AT 2930 COLLEGE AVENUE, UNIT D THE PLANNING COMMISSION OF THE CITY OF COSTA MESA HEREBY RESOLVES AS FOLLOWS: WHEREAS, an application was filed by Steven Aguilar, applicant and business owner for the property owner, Tim Mullahey with MT Real Estate LLC, requesting approval of conditional use permits for a microbrewery (Brewing Reserve of California) operating past 11 PM within 200 feet of a residential zone with a tasting room and retail sales of beer produced on the premises and related products within a 3,000 square foot tenant space. Proposed hours of operation for the microbrewery are Monday through Sunday, 5 AM to 5 PM; and proposed hours of operation for the tasting room are: Monday through Wednesday from 5 PM to 10 PM; Thursday and Friday from 5 PM to 12 AM; Saturday from 11 AM to 12 AM; and Sunday from 11 AM to 10 PM; and WHEREAS, a duly noticed public hearing held by the Planning Commission on September 25, 2017 with all persons having the opportunity to speak for and against the proposal; WHEREAS, pursuant to the California Environmental Quality Act (CEQA), the project is exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15301 for Existing Facilities. WHEREAS, the CEQA categorical exemption for this projects reflects the independent judgement of the City of Costa Mesa. BE IT RESOLVED that, based on the evidence in the record and the findings contained in Exhibit A, and subject to the conditions of approval contained within Exhibit B, the Planning Commission hereby APPROVES Planning Application PA -17-19 with respect to the property described above. — 49 BE IT FURTHER RESOLVED that the Costa Mesa Planning Commission does hereby find and determine that adoption of this Resolution is expressly predicated upon the activity as described in the staff report for Planning Application PA -17-19 and upon applicant's compliance with each and all of the conditions in Exhibit B, and compliance of all applicable federal, state, and local laws. Any approval granted by this resolution shall be subject to review, modification or revocation if there is a material change that occurs in the operation, or if the applicant fails to comply with any of the conditions of approval. BE IT FURTHER RESOLVED that if any section, division, sentence, clause, phrase or portion of this resolution, or the document in the record in support of this resolution, are for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions. PASSED AND ADOPTED this 251h day of September, 2017. Stephan Andranian, Chair Costa Mesa Planning Commission STATE OF CALIFORNIA ) COUNTY OF ORANGE )ss CITY OF COSTA MESA ) I, Barry Curtis, Secretary to the Planning Commission of the City of Costa Mesa, do hereby certify that the foregoing Resolution No. PC -17-40 was passed and adopted at a regular meeting of the City of Costa Mesa Planning Commission held on September 25, 2017 by the following votes: AYES: Andranian, de Arakal, Kerins NOES: Navarro Woods ABSENT: Harlan ABSTAIN: None czy ti barry6Cdag, Secretary Costa Mesa Planning Commission Resolution No. PC -17-40 FINDINGS A. The proposed project complies with Costa Mesa Municipal Code Section 13-29(e) because: Finding: Compatible and harmonious relationship between the proposed building and site development, and use(s), and the building and site developments, and uses that exist or have been approved for the general neighborhood. Facts in Support of Findings: Compliance with the conditions of approval will allow this use to operate with minimal impact on surrounding properties and uses. The proposed use is located in an industrial area which includes a variety of industrial uses, including a print shop, wholesale distribution business (Growers Direct), an event planning business, and a metal fabrication business. Residential uses are protected from any noise or nuisance associated with the microbrewery and tasting room because all uses will be conducted underroof, the separation between the two uses, as well as the block wall existing on the north property line. Conditions of approval require noise sources be conducted in a manner that will allow the quiet enjoyment of the surrounding neighborhood. In addition, adequate on-site parking is provided for the proposed use. For the industrial brewing and other miscellaneous business activities during the day, parking impacts are not anticipated because the industrial operation provides sufficient parking and the business is not open to the public during normal business hours. Due to the off -set hours of operation for the tasting room, in relation to the other industrial uses on-site, sufficient parking is provided because the tasting room operates when other uses are closed. Finding: Safety and compatibility of the design of the parking areas, landscaping, luminaries, and other site features including functional aspects of the site development such as automobile and pedestrian circulation. Facts in Support of Findings: A condition of approval is included requiring the proposed restriping of the parking lot, in accordance to the site plan (which shows a total of 73 parking spaces). Finding: Compliance with any performance standards as prescribed elsewhere in this Zoning Code. Facts in Support of Findings: The General Plan land use designation of the property is Light Industrial. The Light Industrial land use designation applies to areas intended for a variety of light and general industrial uses. Uses are limited to small manufacturing and service industries, as well as larger industrial operations that can demonstrate design features or restricted operations that limit disruptions to surrounding uses. The proposed microbrewery with ancillary tasting room is not considered a use that will increase density or intensity allowed per the General Plan designation and is a compatible use for this land use designation. Furthermore, the proposed project is consistent with General Plan Land Use Policies LU -1.1, LU -3.1 and LU -6.15 in that the - So-- proposed project will provide a new entrepreneurial business and provide new employment opportunities in the community, will allow for incubation of growing industry in different parts of the City and, with compliance with conditions of approval, will ensure compatibility with the nearby residential neighborhood. Finding: The planning application is for a project -specific case and does not establish a precedent for future development. Facts in Support of Findings: Approval will apply to this project -specific location. Conditions of approval have been included that are specific to the proposed project. B. The information presented substantially complies with Costa Mesa Municipal Code Section 13-29(g)(2) in that: Finding: The proposed use is substantially compatible with developments in the same general area and would not be materially detrimental to other properties within the area. Facts in Support of Findings: The proposed use, as conditioned, is compatible with the uses in the surrounding area. Compliance with the conditions of approval will allow this use to operate with minimal impact on surrounding properties and uses. Residential uses are protected from any noise or nuisance associated with the microbrewery because residential uses are buffered by a 14,400 -square -foot industrial building, with a block wall between the subject property and the public alley. Furthermore, conditions of approval address restrictions on entertainment and noise to reduce impacts to adjacent residents. In addition, adequate on-site parking is provided forthe proposed use. For the industrial brewing and other miscellaneous business activities during the day, parking impacts are not anticipated because the industrial operation provides sufficient parking and the business is not open to the public during normal business hours. Due to the off -set hours of operation for the tasting room, in relation to the other industrial uses on-site, sufficient parking is provided because the tasting room operates when other uses are closed. Finding: Granting the conditional use permit will not be materially detrimental to the health, safety and general welfare of the public or otherwise injurious to property or improvements within the immediate neighborhood. Facts in Support of Findings: The proposed use, as conditioned, will not generate adverse noise, traffic, or parking impacts that are unusual for industrially -zoned properties. Residential uses are protected from any noise or nuisance associated with the microbrewery and tasting room because all uses will be conducted underroof. Conditions of approval require noise sources be conducted in a manner that will allow the quiet enjoyment of the surrounding neighborhood. In addition, standard conditions of approval for establishments with off -sale retail alcohol sales are included to minimize impacts to adjacent properties and will be required to comply with the requirements of the Alcoholic Beverage Control Department. Furthermore, - 5 i the proposed project is conditioned to restripe the parking lot, in accordance to the site plan (which shows a total of 73 parking spaces). Finding: Granting the conditional use permit will not allow a use, density, or intensity which is not in accordance with the General Plan designation and any applicable specific plan for the property. Facts in Support of Findings: The General Plan land use designation of the property is Light Industrial. The Light Industrial land use designation applies to areas intended for a variety of light and general industrial uses. Uses are limited to small manufacturing and service industries, as well as larger industrial operations that can demonstrate design features or restricted operations that limit disruptions to surrounding uses. The proposed microbrewery with ancillary tasting room is not considered a use that will increase density or intensity allowed per the General Plan designation and is a compatible use for this land use designation. Furthermore, the proposed project is consistent with General Plan Land Use Policies LU -1.1, LU -3.1 and LU -6.15 in that the proposed project will provide a new entrepreneurial business and provide new employment opportunities in the community, will allow for incubation of growing industry in different parts of the City and, with compliance with conditions of approval, will ensure compatibility with the nearby residential neighborhood. C. The project is exempt from the provisions of the California Environmental Quality Act under Section 15301 for Existing Facilities. D. The project, as conditioned, is consistent with Chapter XII, Article 3, Transportation System Management, of Title 13 of the Costa Mesa Municipal Code in that the development project's traffic impacts will be mitigated by the payment of traffic impact fees. EXHIBIT B CONDITIONS OF APPROVAL Ping. 1. The use shall be limited to the type of operation described in this staff report, which includes a microbrewery (Brewing Reserve of California) operating past 11 PM within 200 feet of a residential zone with ancillary use of a tasting room and retail sales of beer produced on the premises and related products within a 3,000 sq. ft. tenant space. Hours of operation for the microbrewery are Monday through Sunday, 5 AM to 5 PM; and proposed hours of operation for the tasting room/retail sales are Monday through Wednesday from 5 PM to 10 PM; Thursday and Friday from 5 PM to 12 AM; Saturday from 11 AM to 12 AM; and Sunday from 11 AM to 10 PM. Any change in the operational characteristics including, but not limited to, increased hours of operation, or provision for live entertainment, will require approval of an amendment to the conditional use permit, subject to Planning Commission approval. 2. Prior to final Planning Inspection, the parking lot shall be re -striped in accordance to the approved site plan. 3. The property shall designate one parking stall as drop-off parking spaces with permanent sign. The sign shall specify that the drop-off space will only be used by such services, and not for the use of patrons visiting the site. 4. Pick-up and drop-off parking space shall be designated with permanent freestanding signage that is approved by the Development Services Department. 5. Two hoop bike racks shall be installed and meet Transportation's specifications for materials, finishes, and placement. Materials 1.5" schedule 40 uncoated pipe (1.90" OD) Installation Methods: In -ground mount is embedded into concrete base. Flange mount has two 2.5" x 6" x .25" feet - 4 anchors. Finishes A rubbery PVC dip. Blue is standard. Hoop Bike Rack A. Setbacks 1. Wall Setback: For Hoops set parallel to the wall, a minimum of 24" should be left between the wall and the rack. 36" is the recommended setback. For Hoops installed perpendicular to the wall, a 28" setback is the minimum distance. 36" is recommended. 2. Distance Between Racks: 24" is the minimum distance between racks. 36" is recommended. 3. Street Setback: 24" is the minimum distance between the street and the rack. 36" is recommended. The foot -mounted Hoop Rack has a 2.5" x 6" x .25" foot which is installed onto a concrete base with 4 masonry anchors. The foot -mounted Hoop —5�3— Rack is generally less expensive to install and easier to remove than the in -ground mount model, while still maintaining the same degree of security. 6. All uses shall be conducted within the tenant space (underroof). 7. This Conditional Use Permit does not include the allowance for live entertainment. Live entertainment may only be permitted subject to approval of a Conditional Use Permit and issuance of a "Public Entertainment Permit." Please contact Planning and Code Enforcement for application information. 8. All special events shall be reviewed by Planning Division for approval prior to the event, and may require a "Special Event Permit" from the Finance Department prior to the event. 9. No on-site food preparation is permitted. Food catering for special events may be allowed after such an event is reviewed by the Planning Division for approval prior to the event, and may require a "Special Event Permit" from the Finance Department prior to the event. 10. Prior to issuing the Building permit the conditions of approval shall be required to be incorporated on the approved plans. 11. The licensee shall not employ or use the services of any full- or part-time active or reserve peace officer currently employed by the City of Costa Mesa or any contiguous agency for security purposes. 12. The maximum occupancy, as determined by provisions of the Uniform Building Code or other applicable codes, shall be posted in public view within the premises, and it shall be the responsibility of management to ensure that this limit is not exceeded at any time. Occupant loads for the open patio area and the enclosed building area shall be calculated and posted separately. 13. The parking lot shall be posted with signs directing customers and employees to use consideration when entering their cars and leaving the parking lot. 14. The business shall be conducted, at all times, in a manner that will allow the quiet enjoyment of the surrounding neighborhood. The applicant and/or business owner shall institute whatever security and operational measures are necessary to comply with this requirement. 15. The applicant shall defend, indemnify, and hold harmless the City, its elected and appointed officials, agents, officers and employees from any claim, action, or proceeding (collectively referred to as "proceeding") brought against the City, its elected and appointed officials, agents, officers or employees arising out of (1) City's approval of the project, including but not limited to any proceeding under the California Environmental Quality Act. The indemnification shall include, but not be limited to, damages, fees and/or costs awarded against the City, if any, and cost of suit, attorney's fees, and other costs, liabilities and expenses incurred in connection with such proceeding whether incurred by the applicant, the City and/or the parties initiating or bringing such proceeding. This indemnity provision shall include the applicant's obligation to indemnify the City for all the City's costs, fees, and damages that the City incurs in enforcing the indemnification provisions set forth in this section. S-1 16. All sales and service staff (within 90 days of hire) shall complete Responsible Beverage Service (RBS) training with a provider approved by the California Department of Alcoholic Beverage Control. A copy of the training certificates shall be kept on premises and presented to any authorized City official upon request. 17. The applicant shall maintain free of litter all areas of the premises under which the applicant has control. 18. Any new exterior lighting proposed shall be shielded and/or directed away from residential areas. 19. Prior to issuance of Certificate of Occupancy (C of O) the applicant shall provide a scaled and dimensioned digital site plan(s) for the project site, on either a CD or thumb drive, to the Planning Division. All site plans shall include an accurate and precise drawing of all building footprints and property line locations for the entire project site. All buildings shall be annotated with its corresponding address and suites if applicable. CODE REQUIREMENTS The following list of federal, state and local laws applicable to the project has been compiled by staff for the applicant's reference. Any reference to "City" pertains to the City of Costa Mesa. Ping. 1. Approval of the planning application is valid for one year from the effective date of this approval (October 2, 2017) and will expire at the end of that period (October 2, 2018) unless applicant establishes the use by obtaining a business license reflecting the group counseling. If the applicant is unable to obtain the business license within the one-year time period, the applicant may request an extension of time. The Planning Division must receive a written request for the time extension prior to the expiration of the planning application. 2. Once the use is legally established, the planning application herein approved shall be valid until revoked. The Development Services Director or his designee may refer the planning application to the Planning Commission for modification or revocation at any time if, in his opinion, any of the following circumstances exist: 1) the use is being operated in violation of the conditions of approval; 2) the use is being operated in violation of applicable laws or ordinances or 3) one or more of the findings upon which the approval was based are no longer applicable. 3. Within 30 days of final Planning Commission action, the illegal outdoor storage shall be removed, or a Code Enforcement Case will be opened, which is subject to fines. 4. Permits shall be obtained for all signs according to the provisions of the Costa Mesa Sign Ordinance. 5. Any trash facilities shall be screened from view and designed and located appropriately to minimize potential noise and odor impacts to any adjacent residential areas. Bldg. 6. Comply with the requirements of the following adopted codes: 2016 California Residential Code, 2016 California Building Code, 2016 California Electrical Code, 2016 California Mechanical Code, 2016 California Plumbing Code, 2016 California Green Building Standards Code and 2016 California Energy Code (or the applicable adopted, California Residential Code, California Building Code, California Electrical Code, California Mechanical Code, California Plumbing Code, California Green Building Standards and California Energy Code at the time of plan submittal or permit issuance) and California Code of Regulations also known as the California Building Standards Code, as amended by the City of Costa Mesa. Requirements for accessibility to sites, facilities, buildings and elements by individuals with disability shall comply with chapter 11 B of the 2016 California Building Code. Bus. 7. All contractors and subcontractors must have valid business licenses to do Lic. business in the City of Costa Mesa. Final inspections, final occupancy and utility releases will not be granted until all such licenses have been obtained. 8. Business license shall be obtained prior to the initiation the business. Trans. 9. The applicant may be subject to a Traffic Impact Fee to the Transportation Division prior to the effective date of the conditional use permit. The applicant shall contact the Transportation Division to determine if a Traffic Impact Fee is applicable. The traffic impact fee is based upon the average daily trip generation rate for the proposed use. The fee is required to fulfill mitigation of off-site traffic impacts pursuant to the prevailing schedule of charges adopted by the City Council. The traffic impact fee is calculated and includes credits for existing uses. NOTE: The Traffic Impact Fee will be recalculated at the time of issuance of the minor conditional use permit based upon any changes in the prevailing schedule of charges adopted by the City Council and in effect at that time. SPECIAL DISTRICT REQUIREMENTS The requirements of the following special districts are hereby forwarded to the applicant: Sani. 1. Prior to the Building Division (AQMD) issuing a demolition permit, contact South Coast Air Quality Management District located at: 21865 Copley Dr. Diamond Bar, CA 91765-4178 Tel: 909-396-2000 OR Visit their web site: http://www.costamesaca.gov/modules/showdocument.aspx?documentid =23381 The Building Division will not issue a demolition permit until an identification number is provided by AQMD. OCHA 2. Provide a plan to the County of Orange Health Dept. for review and approval. 5�