Honorable Chair and Members of the Hermosa Beach Planning Commission
Regular Meeting of May 21, 2024
Title
CONDITIONAL USE PERMIT AMENDMENT REQUEST (APE 22-05) TO ALLOW ON-SITE SERVICE OF BEER, WINE, AND SPIRITS IN THE FIRST-FLOOR LOUNGE AREA FROM 7 A.M.-10 P.M., AND ON THE THIRD-FLOOR DECK FROM 9 A.M.-9 P.M. TO GUESTS AND REGISTERED GUESTS AND THEIR GUESTS, AT AN EXISTING HOTEL (H2O HOTEL) LOCATED AT 1429 HERMOSA AVENUE IN THE DOWNTOWN COMMERCIAL (C-2) ZONE, AND DETERMINE THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).
(Assistant Planner Johnathon Masi)
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Recommended Action:
Recommendation
Staff recommends that the Planning Commission:
1. Determine the project is categorically exempt from the California Environmental Quality Act (CEQA); and
2. Approve a Conditional Use Permit (CUP) amendment (APE 22-05) to allow on-site service of beer, wine, and spirits in the first-floor lounge between 7 a.m. -10 p.m., and third-floor deck between 9 a.m. and 9 p.m., to guests and guests of guests, at an existing hotel at 1429 Hermosa Avenue (H2O), subject to conditions.
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Executive Summary:
At its July 13, 2021 meeting, City Council adopted Resolution 21-7292 (Attachment 7), approving a CUP Amendment to allow on-site service of beer and wine within the first-floor lounge of a boutique hotel, limited to registered guests only. On December 15, 2022, the applicant filed an application for a CUP amendment, to allow full on-site service of beer, wine, and distilled spirits in the first-floor lounge between 7 a.m. and 10 p.m., and the third-floor deck area between 9 a.m. and 9 p.m., for registered guests and their guests.
Background:
The Planning Commission adopted Resolution 15-25 (Attachment 4) at its October 20, 2015 meeting, approving a Precise Development Plan (PDP 15-11) to allow a new 30,250-square-foot hotel with 30 guest rooms and common areas; a Conditional Use Permit (CUP 15-10) to allow on-sale general alcohol for hotel guests in guest rooms restricted to mini-bars; and a Parking Plan (PARK 15-7) to allow a valet program, with parking in a tandem configuration.
At its July 16, 2019 meeting, the Planning Commission adopted Resolution 19-10, amending PDP 15-11 to include a condition extending the term of expiration for the building permits for the project, until September 2, 2020.
At its April 20, 2021 meeting, the Planning Commission adopted Resolutions 21-03 and 21-04 (Attachments 5 and 6), denying a CUP amendment (CUP 20-08) request to provide on-sale service and consumption of beer, wine, and spirits indoors only, for registered guests, seven-days a week between 7 a.m. - 10 p.m., and approving a Parking Plan amendment (PARK 20-05) to allow the hotel to charge for onsite parking.
At its July 13, 2021 meeting, City Council held a hearing reconsidering the Planning Commission’s decision to deny a CUP amendment to allow onsite sale, service, and consumption of general alcohol within the lounge. After the City Council continued this item from the May 25, 2021 meeting, the applicant revised the request to only request beer and wine. The City Council adopted Resolution 21-7292 (Attachment 7), approving the applicant’s revised request to approve an amendment allowing on-site service of beer and wine, indoors within the first-floor lounge area only, limited to registered guests. The approval permitted the continued use of the first floor lounge, second floor multi-purpose room, and third-floor outdoor deck, by registered guests and their guests, with the addition of alcohol service in the first-floor lounge area.
The applicant submitted an application on December 15, 2022 for a CUP amendment request (APE 22-05) to: (1) expand alcohol service from beer and wine only to full onsite service of beer, wine, and distilled spirits in the first-floor lounge between 7 a.m. - 10 p.m.; (2) to allow service of alcohol on the third-floor deck area between 9 a.m. and 9 p.m.; and (3) to allow service of alcohol to registered guests and their guests. Through the course of review, the scope of the request changed from alcohol service to the public to registered guests and their guests only.
The property is developed with a 30,250-square-foot hotel with 30 guest rooms and common areas. The business currently holds a Type 70, On-Sale General - Restrictive Service, license from the Alcoholic Beverage Control (ABC), which allows the “sale or furnishing of beer, wine and distilled spirits for consumption on the premises to the establishment’s overnight transient occupancy guests or their invitees. This license is normally issued to “suite-type” hotels and motels, which exercise the license privileges for guests’ “complimentary” happy hour. Minors are allowed on the premises.” Though the property currently holds a Type 70 license, the existing CUP limits sale of alcohol to beer and wine only and prohibits service of alcohol to anyone other than registered guests.
Past Board, Commission and Council Actions
|
Meeting Date |
Description |
|
October 20, 2015 |
Planning Commission adopted Resolution 15-25, approving PDP 15-11; CUP 15-10, and Parking Plan 15-7 to allow construction of a new hotel with mini bar alcohol service, and a valet program with parking in tandem. |
|
July 16, 2019 |
Planning Commission adopted Resolution 19-10, approving a time extension with an expiration date of September 2, 2020. |
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March 16, 2021 |
Planning Commission holds a public hearing for a CUP amendment (CUP 20-08) to allow onsite service of beer, wine, and spirits, indoors only, for registered guests, as well as a Parking Plan amendment (PARK 20-05) to allow the hotel to charge for onsite parking. Planning Commission directed staff to bring a resolution of denial to its April 20, 2021 meeting. |
|
April 20, 2021 |
Planning Commission adopts Resolutions 23-03 and 23-04, approving a Parking Plan amendment (PARK 20-05) to allow for the hotel to charge for onsite parking, and denying a CUP amendment (CUP 20-08) that would allow onsite service of beer, wine, and spirits, indoors only, for registered guests. |
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May 25, 2021 |
City Council holds a public hearing to reconsider Planning Commission denial of a CUP amendment. The item is continued to the July 13, 2021 City Council meeting. |
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July 13, 2021 |
City Council reconsiders Planning Commission denial of a CUP amendment (CUP 20-08). The applicant formally revised their request to only allowing service of beer and wine, indoors only, for registered guests. City Council approves a CUP amendment, allowing onsite service of beer and wine, in the first-floor lounge, to registered guests only. |
Site Information Table:
The following table describes the existing site characteristics.
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Site Information |
|
General Plan |
Recreational Commercial (RC) |
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Zoning |
Downtown Commercial (C-2) |
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Lot Size |
11,526 sq. ft. |
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Existing Square Footage |
30,250 sq. ft. (with 30 guest rooms) |
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Surrounding Zoning |
North: |
C-2/R-3 |
|
|
East: |
R-3 |
|
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South: |
C-2 |
|
|
West: |
R-3 |
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Surrounding Uses |
North: |
Commercial/Residential |
|
|
East: |
Residential |
|
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South: |
Commercial |
|
|
West: |
Residential |
Other Site Information/History:
The property is located in the Downtown Commercial (C-2) Zone. The subject site is bound by 15th Court to the south, Hermosa Avenue to the east, and 15th Street to the north. The property is within the Coastal Zone, and is subject to the Coastal Act, California Public Resources Code, Division 20.
Project Description:
The project proposes to expand service of alcohol to registered guests and their guests, consistent with the provisions of their Type 70 license, and allow sale and consumption of alcohol on the third-floor deck. The project does not propose any physical changes to the site, nor changes to the allowable occupancy in the first-floor lounge, second-floor multi-purpose room, and third-floor outdoor deck.
Discussion:
The project does not propose physical changes to the existing hotel, or modification to Planning Commission Resolution 15-25, Conditions 15 and 16 concerning the maximum capacity of common areas, and entertainment provided on the third-floor deck. Rather, the project proposes modifying Condition 14 of City Council Resolution 21-7292, to expand service of alcohol to registered guests and their guests, consistent with the provisions of their Type 70 license, and allow sale and consumption of alcohol on the third-floor deck. Further, the project proposes modifying Condition 16 of Planning Commission Resolution 15-25 to reduce hours of the third-floor deck, from 7 a.m. - 10 p.m. to 9 a.m.- 9 p.m.
The first-floor lounge area and third-floor deck are existing spaces utilized by registered guests and their guests during the approved hours of operation. Consistent with City Council Resolution 21-7292 (Attachment 7) the hotel currently offers beer and wine to registered guests in the first-floor lounge only. Further, Planning Commission Resolution 15-25 requires that no more than 20 people occupy the first-floor lounge, second-floor multi-purpose room, or third-floor outdoor deck at any one time.
The applicant is not proposing any change to the existing limited-use occupancy of the first-floor lounge, second-floor multi-purpose room, or third-floor outdoor deck. The applicant proposes to expand service in the first-floor lounge to include spirits, and to allow full service of alcohol on the third-floor deck. The applicant proposes maintaining service in the first-floor lounge between 7 a.m. -10 p.m., and to reduce any potential impacts to adjacent properties, proposes limiting alcohol service on the third-floor deck to 9 a.m. - 9 p.m. To access either the first-floor lounge or the third-floor outdoor deck, visitors must pass through the lobby area, where a staff member is present to greet them.
As part of the review process, the application was routed to the Police Department for comments (Attachment 3). Between April 2023 and April 2024, the Police Department had 12 calls for service to the business excluding alarm calls. There were no incidents that were cause for significant concern. Specifically, calls for service for the property included illegal parking in the right-of-way, found property, and minor disturbances. Several of the calls were either unfounded or could not be located by the responding Officer and cleared without further incident.
Findings:
Hermosa Beach Municipal Code (HBMC) Section 17.40.020 outlines general criteria for all uses which require a CUP.
Distance from existing residential uses;
The project site is located on Hermosa Avenue in the C-2 zone. Multi-family residences are located to the northwest, and west of the site as well as to the east on the opposite side of Hermosa Avenue. The residences located directly adjacent to the property are buffered from the site, as the entrance to the property is located on the east side of the building, and the only exterior service of alcohol is located on a third-floor deck which faces north and east. The applicant is proposing a reduction of service hours within the outdoor area.
The amount of existing or proposed off-street parking facilities, and its distance from the proposed use;
The property is subject to a Parking Plan per Planning Commission Resolutions 15-25 and 21-03. The property offers 37 parking spaces and proposes no change to the provision, or operation of, existing facilities. City Council Resolution 21-7292 maintained both registered guests and their guests are permitted in the first-floor lounge area, second-floor multi-purpose room, and the third-floor outdoor deck. The proposed modification does not expand the number of individuals in any of the three areas beyond what was previously approved.
Location of and distance to churches, schools, hospitals and public playgrounds;
The proposed change to the hotel will not affect neighboring schools, churches, and community centers due to the distance and limited alcohol operations of the establishment. Hermosa Valley School is located 0.7 miles to the east, Christian Science Church is located 0.1 miles to the east, and the Community Center is located 0.9 miles to the east. The distance between the establishment and the various uses provides a buffer to minimize impacts. Additionally, the hotel proposes restricted service of alcohol to registered guests and their guests.
The combination of uses proposed;
The proposed use modification is consistent with the desired development pattern and uses within the C-2 zone. The proposed modification will provide more amenities for visitors in the Downtown District, to bolster the City’s economic base, with minimal impact on adjacent properties. Specifically, allowing alcohol on the third-floor deck, in a manner which considers adjacent residential properties, will allow the business to fully utilize its close proximity to the coast.
Precautions taken by the owner or operator of the proposed establishment to assure the compatibility of the use with surrounding uses;
The existing hotel is subject to conditions prescribed by Planning Commission Resolution 15-25 and City Council Resolution 21-7292. The applicant is proposing a reduction of hours on the third-floor deck from between 7 a.m. - 10 p.m., to 9 a.m.- 9 p.m. Further, the applicant is not proposing any changes to existing conditions limiting the number of customers in the first-floor lounge, second-floor multi-function room, and third-floor deck at any time.
The relationship of the proposed business-generated traffic volume and the size of streets serving the area;
The proposed modification would not affect existing streets or significantly impact traffic volume, as the proposal involves no change in the hotel capacity and intensity. The modification includes expanding existing alcohol service to include beer, wine, and distilled spirits to registered guests and their guests. The property previously received approval to allow registered guests and their guests in the first-floor lounge area, second-floor multi-purpose area, and the third-floor outdoor deck. The proposed modification will not expand services to anyone beyond individuals already allowed in the above spaces.
The proposed exterior signs and decor, and the compatibility thereof with existing establishments in the area;
The project proposes no change to the exterior signs or décor. As such, aesthetics would continue to remain compatible with existing establishments in the area.
The number of similar establishments or uses within close proximity to the proposed establishment;
There are two similar establishments nearby with existing Type 70 licenses.
|
Hotel Name |
Address |
Alcoholic Beverage Control License Type |
CUP Provisions |
|
Beach House |
1300 The Strand |
Type 70 |
On-sale alcohol in guest rooms (mini-bars) and in meeting rooms. Hours not specified. |
|
Sea Sprite Hotel |
1016 The Strand |
Type 70 |
No CUP conditions |
Noise, odor, dust and/or vibration that may be generated by the proposed use;
The proposed modification would not generate a significant change in noise, odor, dust and/or vibration, as the proposal involves no change in the hotel capacity and intensity. Further, the applicant is proposing a reduction in hours of operation for the outside deck from between 7 a.m.- 10 p.m. to 9 a.m.- 9 p.m.
Impact of the proposed use to the city’s infrastructure, and/or services;
The existing hotel use and capacity would be maintained, and the current infrastructure is adequate. Since opening in 2020, the property has had no complaints concerning utilities and services. The existing infrastructure will be sufficient and there are no anticipated impacts.
Will the establishment contribute to a concentration of similar outlets in the area;
The requested modification would not add to the concentration of similar outlets in this area because the project does not propose public service. Further, hotel uses with alcohol are not common in the Downtown District.
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.
No other issues are identified.
Recommendation:
Staff recommends approval of the CUP as the aforementioned findings can affirmatively be made in support of the request with the incorporation of conditions of approval (Attachment 1). The draft conditions of approval include the following general provisions applicable to on-sale alcohol sales:
• The establishment shall not adversely affect the welfare of the residents, and/or commercial establishments nearby.
• The business shall prevent loitering, unruliness and boisterous activities of the patrons outside the business or in the immediate area.
• The Police Chief may determine that a continuing police problem exists and may, subject to appeal to the Planning Commission, direct the presence of a police- approved doorman and/or security personnel to eliminate the problem. An appeal to the Planning Commission shall be heard within sixty (60) days of filing the appeal. The Police Chief’s determination will not be stayed during the pendency of the appeal. If the problem persists, the Police Chief then shall submit a report to the Planning Commission, which will automatically initiate a review of the conditional use permit.
• The exterior of the premises shall be maintained in a neat and clean manner and maintained free of graffiti at all times.
In addition to the general provisions, the following highlights a few additional conditions of approval necessary to ensure the use is operated in a manner compatible with its surroundings. The proposed conditions may modify existing conditions the property is subject to, where applicable:
• Any changes to the interior or exterior layout which alter the primary function of the business shall be subject to review and approval by the Planning Commission.
• Alcoholic beverage service shall be available for registered guests and their guests only.
• Service of alcohol is limited to the first-floor lounge and the third-floor deck.
• Live entertainment (including but not limited to amplified music, disc jockeys, live music whether acoustic or amplified, and live performances of all kinds) is prohibited.
a. Speakers, televisions, or any device that may generate noise inconsistent with the nature of this approval are explicitly prohibited on the third-floor deck.
• The lounge area on the first floor, and the multi-function room on the second floor may be utilized between 7 a.m. - 10 p.m., seven days per week. The third-floor deck may be utilized between 9 a.m. and 9 p.m., seven days per week. Each of these spaces may be occupied by not more than 20 people at any one time, (excluding staff) unless further restricted by code. These three spaces may be used for activities limited to registered guests and their guests.
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. |
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Policy 1.7 Balance resident and visitor needs. Ensure land uses and businesses provide for the needs of residents as well as visitors. |
|
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Goal 4. A variety of corridors throughout the city provide opportunities for shopping, recreation, commerce, employment and circulation. |
The project is consistent with policy 4.8. Specifically, the applicant proposes reduced hours on the third-floor deck to minimize noise impacts to adjacent properties. Further, the service of alcohol is limited to registered guests and their guests, with no more than 20 persons present in either the first-floor lounge or the third-floor deck at any time, excluding staff. |
|
Policy 4.8 Neighborhood buffer. Encourage all commercial property owners bordering residential areas to mitigate impacts and use appropriate landscaping and buffering of residential neighborhoods. |
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Environmental Determination:
Pursuant to the California Environmental Quality Act (CEQA), the proposed project qualifies for a Class One categorical exemption, Existing Facilities as defined in section 15301 of the CEQA Guidelines, as it consists of a minor alteration to an existing use. 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:
For the May 21, 2024 Planning Commission hearing, a total of 886 public hearing notices were mailed to the applicant, and occupants and property owners of properties within a 500-foot radius on May 9, 2024. A legal ad was published on May 9, 2024 in the Beach Reporter, 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 public hearing, in accordance with HBMC 17.68.050. Public notification materials are included as Attachment 10. As of the writing of the report, staff has received no public comments.
Attachments:
1. Draft Resolution #24-07
2. Project Narrative
3. SUPPLEMENTAL - Site Plans
4. Police Department Memo
5. Planning Commission Resolution 15-25
6. Planning Commission Resolution 21-03
7. Planning Commission 21-04
8. City Council Resolution 21-7292
9. Zoning Map
10. Public Notification Package
11. Link to October 20, 2015 Planning Commission Staff Report
12. Link to July 16, 2019 Planning Commission Staff Report
13. Link to March 16, 2021 Planning Commission Staff Report
14. Link to April 20, 2021 Planning Commission Staff Report (Parking Plan)
15. Link to April 20, 2021 Planning Commission Staff Report (CUP Amendment)
16. Link to May 25, 2021 City Council Staff Report
17. Link to July 13, 2021 City Council Staff Report
18. SUPPLEMENTAL - Jessica Accamando eComment 5/16/24
19. SUPPLEMENTAL - Fiona Fleming eComment 5/17/24
20. SUPPLEMENTAL - Michelle Crispin eComment 5/20/24
21. SUPPLEMENTAL - Raymond Dussault eComment 5/21/24
22. SUPPLEMENTAL - Laura Pena eComment 5/21/24
Respectfully Submitted by: Johnathon Masi, Assistant Planner
Concur: Alexis Oropeza, Planning Manager
Legal Review: Patrick Donegan, City Attorney
Approved: Carrie Tai, AICP, Community Development Director