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File #: REPORT 24-0215    Version: 1 Name:
Type: Action Item Status: Passed
File created: 4/24/2024 In control: Planning Commission
On agenda: 5/21/2024 Final action: 5/21/2024
Title: ADOPTION OF A RESOLUTION APPROVING CONDITIONAL USE PERMIT (CUP 24-03) FOR THE ON-SALE CONSUMPTION OF ALCOHOL (BEER ONLY) WITHIN AN EXISTING BUILDING AT 1048 HERMOSA AVENUE IN THE DOWNTOWN COMMERCIAL (C-2) ZONE WITH CONDITIONS AND DETERMINE THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (Assistant Planner Jake Whitney)
Attachments: 1. 1. Draft Resolution #24-05, 2. 2. Link to Project Plans, 3. 3. Police Department Review Memorandum, 4. 4. Link to the December, 12 2023 City Council meeting confirming the Community Development Director's determination of similar use, 5. 5. Link to the April 16, 2024 Planning Commission meeting approving PDP 24-02 and providing guidance on CUP 24-03, 6. 6. SUPPLEMENTAL - Raymond Dussault eComment 5/21/24

Honorable Chair and Members of the Hermosa Beach Planning Commission

Regular Meeting of May 21, 2024

 

Title

ADOPTION OF A RESOLUTION APPROVING CONDITIONAL USE PERMIT (CUP 24-03) FOR THE ON-SALE CONSUMPTION OF ALCOHOL (BEER ONLY) WITHIN AN EXISTING BUILDING AT 1048 HERMOSA AVENUE IN THE DOWNTOWN COMMERCIAL (C-2) ZONE WITH CONDITIONS AND DETERMINE THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT

(Assistant Planner Jake Whitney)

 

Body

Recommended Action:

Recommendation

Staff recommends that Planning Commission adopt Resolution 24-05 determining that the project is categorically exempt from the California Environmental Quality Act (CEQA) and approving Conditional Use Permit (CUP 24-03) for the on-site sale and consumption of alcohol (beer only), subject to conditions at 1048 Hermosa Avenue.

 

Body

Executive Summary:

On April 16, 2024, the Planning Commission held a public hearing regarding a request from applicant Chris Frantz of Racing Formula Partners LLC for a Conditional Use Permit for the on-site sale and consumption of beer on the premises. The Planning Commission directed staff to prepare a Resolution approving the CUP with conditions. The attached resolution (Attachment 1) memorializes the Commission’s direction from April 16, 2024. Staff recommends the Planning Commission adopt the resolution approving the CUP.

 

Background:

The project site is located within the City’s Downtown Commercial (C-2) Zone on Hermosa Avenue at its intersection with 11th Street. The property is an existing commercial building most recently occupied by a dry-cleaning business (Rose Cleaners). The applicant will renovate the site and rent race car simulators (entertainment or amusement machines) as the primary use at 1048 Hermosa Avenue, a use not listed in the Zoning Ordinance. Hermosa Beach Municipal Code (HBMC) Section 17.26.040 specifies that all uses not specifically mentioned in the chapter are deemed prohibited unless determined by the Community Development Director to be similar to and not more objectionable than other uses listed in the chapter. On December 12, 2023, the City Council confirmed the determination of the Community Development Director that the rental of four or fewer racing car simulators was substantially similar to a billiard or pool hall use which is a permitted use in the Downtown (C-2) and General Commercial (C-3) Zoning Districts. Rental of four or fewer amusement devices is now allowed by right. This confirmation enabled the applicant to apply for entitlements needed to support the primary use. (Attachment 4)

 

On April 16, 2024, the Planning Commission held a public hearing, considered the staff report and public testimony, and approved a Precise Development Plan (PDP 24-02) to allow a 2,015-square-foot tenant improvement at the project site. The Planning Commission also directed staff to prepare a resolution to approve of the Conditional Use Permit for the on-site sale and consumption of alcohol with conditions. (Attachment 5)

 

Past Board, Commission and Council Actions

Meeting Date

Description

December 12, 2023

Confirmation of the Community Development Director’s determination that the rental of four or fewer racing car simulators are similar to the billiard or pool hall use which is permitted in C-2 and C-3 Commercial zones.

April 16, 2024

Planning Commission approval of a Precise Development Plan for a 2,015-square-foot tenant improvement and acted on a CUP request for on-sale alcohol service directing staff to return with a Resolution for approval.

 

Site Information Table:

The following table describes the existing site characteristics.

 

Site Information

General Plan

Community Commercial (CC)

Zoning

Downtown Commercial (C-2)

Lot Size

4,008 square feet

Existing Square Footage

1,648 square feet (for the existing tenant space)

Surrounding Zoning

North: C-2

 

 

East: R-3

 

 

South: C-2

 

 

West: C-2

 

Surrounding Uses

North: Commercial

 

 

East: Residential

 

 

South: Commercial

 

 

West: Commercial

 

 

Discussion:

In addition to the Precise Development Plan approved on April 16, 2024 by the Planning Commission, the applicant (Racing Formula Partners LLC) requested approval of a Conditional Use Permit to allow for the on-site sale of alcohol. The applicant’s request proposed to operate Wednesday-Friday from 4 p.m.-9 p.m. and Saturday-Sunday from 11 a.m.-9 p.m.

 

The Planning Commission considered the staff report and public testimony at the April 16, 2024, meeting. At the hearing, the applicant requested to extend the hours of operation from its original application request. After deliberating, the Planning Commission approved the CUP subject to the following conditions: (i) the establishment is permitted to operate from 10 a.m.-10 p.m. daily; (ii) the establishment is permitted to operate from 5 a.m.-10 p.m. on officially scheduled Formula 1 race days; (iii) Sales of beer are restricted to the hours of 10 a.m.-10 p.m. on all days it is open for business (i.e., no sale of alcohol during the early morning hours).

 

Conditions of approval include those requested by the Police Department to ensure compatibility of the use now and into the future. The conditions of approval include, but are not limited to, requiring that substantial modifications to the approved floor plans must return to the Planning Commission for approval, the Planning Commission has the authority to amend or impose new conditions if deemed necessary to mitigate potential detrimental effects resulting from the use, and requiring minors 12 years of age or younger must be accompanied by a guardian 18 years of age or older. (Attachment 1)

 

Findings:

Conditional Use Permit (CUP)

In accordance with HBMC Section 17.26.030, on-sale alcoholic beverage serving establishments are subject to a Conditional Use Permit. In considering the granting of a Conditional Use Permit, general criteria for all uses shall be made pursuant to HBMC Section 17.40.020.

 

General Criteria for all CUP uses.

 

1.                     Distance from existing residential uses:

The subject site property is located approximately 20 feet away from the closest residential property as measured from the end of the commercial property line to the beginning of the nearest residential property line. Potentially negative effects from the scope of the CUP include potential noise or rowdy behavior from patrons due to the sale and service of alcoholic beverages.

 

2.                     The amount of existing or proposed off-street parking facilities, and its distance from the proposed use:

The project site currently has one parking space on the property and one space will remain after the completion of work.  The business is permitted to contain no more than four entertainment amusement machines and is classified as a general retail commercial use, resulting in no net change in the parking demand as compared to the prior dry-cleaning use. Furthermore, the project site is exempt from providing any additional off-street parking due to Hermosa Beach Municipal Code Sections 17.44.015 (C)(1) & (D)(1). These code sections allow for no new parking to be provided for the first 5,000 square feet of ground floor, non-residential, non-office, and non-late night alcohol establishment uses. While alcohol is being proposed with the CUP request, the parking exemption still applies because the establishment will not be considered late-night due to the proposed closing time of 10 p.m. In summary, the approval of this CUP would not alter the parking requirement or number of spaces.

 

3.                     Location of and distance to churches, schools, hospitals, and public playgrounds:

The subject site is located approximately 0.6 miles to the nearest school (Hermosa Valley School), approximately 6.7 miles from the nearest hospital (Kindred Hospital), approximately 0.3 miles from the nearest church (Christian Science Church), and 0.6 miles from the nearest public playground (South Park). The presence of this establishment will not have a significant effect on these uses.

 

4.                     The combination of uses proposed:

The corridor along Hermosa Ave is currently comprised of a variety of retail, restaurant, and personal service type uses. This new driving simulator business along with on-sale alcohol would be consistent with the type of uses currently in the adjacent vicinity. This use was also found to be similar to the pool and billiard hall use classification which is currently allowed by right in C-2 and C-3 zones in a determination of the Community Development Director. The Planning Commission must also approve any substantial modifications to the approved floor plan pursuant to Condition #1 of the draft resolution.

 

5.                     Precautions taken by the owner or operator of the proposed establishment to assure the compatibility of the use with surrounding uses:

Due to the sale and service of alcohol, there is a potential for boisterous and rowdy behavior by patrons of the business. However, the proposed establishment intends to close at 10 p.m. and is not proposing to sell liquor or distilled spirits. These considerations/precautions will help ensure that the establishment is compatible with the surrounding commercial and residential uses and will not contribute to an increase in late-night alcohol-serving establishments.

 

6.                     The relationship of the proposed business-generated traffic volume and the size of streets serving the area:

There will not be a greatly increased volume of traffic as a result of the approval of this project. This proposal is consistent with similar other commercial establishments in the surrounding area and does not feature any characteristics that would result in an unusual or disproportionate traffic impact.

 

7.                     The number of similar establishments or uses within close proximity to the proposed establishment:

The subject site is surrounded by a variety of food, beverage, fitness, retail, and personal service type uses. While many businesses have similar components in the surrounding area such as alcohol service, none offer controlled simulation experiences such as what is being offered at this site.

 

8.                     Noise, odor, dust and/or vibration that may be generated by the proposed use:

Potentially negative effects from the scope of the CUP include potential noise or rowdy behavior from patrons due to the sale and service of alcoholic beverages.

 

9.                     Impact of the proposed use to the city’s infrastructure, and/or services:

The sale of alcoholic beverages has the potential to impact public safety services. However, the establishments’ sale of alcoholic beverages will be limited to beer only in contrast to the other alcohol-serving establishments in the surrounding area that offer distilled spirits. The lower ABV content of the beverages sold on site is expected to result in a reduced demand for public safety services relative to surrounding establishments due to the lessened potential for patrons to reach heightened levels of intoxication.

 

10.                     Will the establishment contribute to a concentration of similar outlets in the area:

The subject site is surrounded by a variety of food, beverage, fitness, retail, and personal service type uses. While many businesses have similar business components in the surrounding area such as on-sale alcohol, none offer controlled driving simulation experiences such as what is being offered at this site. Furthermore, the alcohol serving business component is considered secondary to the primary use of the simulator experiences.

 

11.                     Other considerations that, in the judgment of the planning commission, are necessary to assure compatibility with the surrounding uses, and the city as a whole.

As a result of the Planning Commission’s deliberations at the April 16, 2024, meeting, conditions of approval have been included in the draft resolution which prohibit minors 12 years of age or younger from receiving goods or services from the establishment unless accompanied by an adult age 18 years or older. The hours of operation shall be limited to 10 a.m.-10 p.m. daily and from 5 a.m. to 10 p.m. on officially designated Formula 1 racing days in which the owner shall furnish the City with a written schedule of early opening days at least three (3) weeks in advance of the planned early opening.

 

 

General Plan Consistency:

This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below:

 

General Plan Consistency

Land Use Element

Findings

Goal 1. Create a sustainable urban form and land use patterns that support a robust economy and high quality of life for residents.

The proposal put forth is consistent with policy 1.5, as the project promotes quality coastal uses, with minimal impact to adjacent residential properties. Specifically, the project proposes serving alcohol to registered guests and their guests only, ensuring visitors can enjoy the full accommodations of a hotel without generating a nuisance for adjacent residential properties.

Policy 1.7 Balance resident and visitor needs. Ensure land uses and businesses provide for the needs of residents as well as visitors.

 

Goal 3. A series of unique, destination-oriented districts throughout Hermosa Beach

This project contributes to a diverse retail landscape by offering residents and visitors a brand-new high-tech recreation/retail center which is currently not offered anywhere in the City or surrounding area.

Policy 3.3 Provide incentives to transform existing single-use commercial properties that are accessible into retail destinations by adding a diversity of uses, providing new pedestrian connections to adjacent residential areas, reducing the visual prominence of parking lots, making the centers more pedestrian-friendly and enhancing the definition and character of street frontage and associated streetscapes.

 

 

Environmental Determination:

Pursuant to the California Environmental Quality Act (CEQA), the proposed project qualifies for a Class 1 categorical exemption, Existing Facilities, as defined in section 15301 of the CEQA Guidelines, as the scope of the CUP would not affect the physical condition of the site. Moreover, none of the exceptions to the categorical exemption(s) apply, nor would the project result in a significant cumulative impact of successive projects of the same type in the same place over time or have a significant effect on the environment due to unusual circumstances or damage a scenic highway or scenic resources within a state scenic highway.

 

Public Notification:

Public notice was given for the April 16, 2024, hearing by the Planning Commission; a total of 768 public hearing notices were mailed to the applicant, and occupants and property owners of properties within a 500-foot radius on April 3, 2024.  A legal ad was published on April 4, 2024, in the Easy Reader, a newspaper of general circulation.  Additionally, the applicant received a notice poster to post on-site and provided proof of posting a minimum of ten days in advance of the April 16 public hearing, in accordance with HBMC Section 17.68.050. A separate public notice for the Resolution was not required by the Planning Commission.

 

Attachments:

1.                     Draft Resolution #24-05

2.                     Link to Project Plans

3.                     Police Department Review Memorandum

4.                     Link to December 12, 2023, City Council meeting

5.                     Link to April 16, 2024, Planning Commission meeting

6.                     SUPPLEMENTAL - Raymond Dussault eComment 5/21/24

 

 

Respectfully Submitted by: Jake Whitney, Assistant Planner

Concur: Alexis Oropeza, Planning Manager

Legal Review: Patrick Donegan, City Attorney

Approved: Carrie Tai, AICP, Community Development Department