Honorable Chair and Members of the Hermosa Beach Planning Commission
Regular Meeting of April 16, 2024
Title
REQUEST FOR A PRECISE DEVELOPMENT PLAN (PDP 24-02) AND CONDITIONAL USE PERMIT (CUP 24-03) TO ALLOW FOR A 2,015-SQUARE-FOOT COMMERCIAL TENANT IMPROVEMENT AND ON-SALE CONSUMPTION OF ALCOHOLIC BEVERAGES AT 1048 HERMOSA AVENUE IN THE DOWNTOWN COMMERCIAL (C-2) ZONE AND TO DETERMINE THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
(Assistant Planner Jake Whitney)
Body
Recommended Action:
Recommendation
Staff recommends that:
1. The Planning Commission adopt Resolution 24-04 determining that the project is categorically exempt from the California Environmental Quality Act (CEQA) and approve Precise Development Plan (PDP 24-02) allowing for a commercial tenant improvement at 1048 Hermosa Avenue.
2. The Planning Commission consider and provide direction on the request for a Conditional Use Permit (CUP 24-03) for sale of beer for on-site consumption, subject to conditions.
Body
Executive Summary:
The applicant (Racing Formula Partners LLC) is requesting a Precise Development Plan (PDP) for tenant improvement work over 1,500 square feet and a Conditional Use Permit for the on-site sale and consumption of beer on the premises. Staff recommends the Planning Commission approve the PDP to allow the internal renovation and the Planning Commission consider the CUP request for on-sale alcohol service.
Background:
The project site is located within the City’s downtown zone on Hermosa Avenue at its intersection with 11th street. The property is an existing commercial building which was most recently occupied by a dry-cleaning business (Rose Cleaners). The applicant proposes to renovate the site and rent out four race car simulators (entertainment or amusement machines) as the primary use at 1048 Hermosa Avenue in the Downtown Commercial (C-2) Zone, 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 8)
Past Board, Commission and Council Actions
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Meeting Date |
Description |
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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. |
Site Information Table:
The following table describes the existing site characteristics.
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Site Information |
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General Plan |
Community Commercial (CC) |
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Zoning |
Restricted Commercial (C-2) |
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Lot Size |
4,008 square feet |
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Existing Square Footage |
1,648 square feet (for the existing tenant space) |
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Surrounding Zoning |
North: C-2 |
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East: R-3 |
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South: C-2 |
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West: C-2 |
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Surrounding Uses |
North: Commercial |
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East: Residential |
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South: Commercial |
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West: Commercial |
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Other Site Information/Code Compliance:
HBMC Section 17.58.020 states that a Precise Development Plan (PDP) is required for remodels or additions of greater than 1,500 square feet which is triggered by this proposal. The purpose of the PDP is to: 1) promote excellence in design, layout to achieve quality, compatibility, in harmony with the community’s objectives; 2) ensure the development will be compatible with the existing and potential development in the area; and 3) supplement other city regulations and standards to ensure control of the physical features of development not otherwise addressed. All development must adhere to the minimum standards of the Zoning Ordinance, and on a case-by-case basis, the Planning Commission may impose standards above the minimum to improve the quality of the development and mitigate any environmental impacts.
Furthermore, the land use regulations for the C-2 Zone in HBMC Section 17.26.030 specify that a Conditional Use Permit (CUP) is required for on-sale alcoholic beverage establishments (excluding restaurants which serve beer and wine and close prior to 10:00 p.m.). In accordance with the Zoning Ordinance, the purpose of a conditional use permit is to allow for the individual review of specified uses: “1) to assure that the degree of compatibility shall be maintained with respect to the particular use on the particular site and in consideration of other existing and potential uses within the general area in which such use is proposed to be located; and 2) to recognize and compensate for variations and degree of technological processes and equipment as related to the factors of noise, smoke, dust, fumes, vibration, odors and hazards through the imposition of conditions of approval if found appropriate.” Due to the applicant's request for on-site consumption, the requirement for a CUP is triggered.
Project Description:
The applicant (Racing Formula Partners LLC) is to convert an existing 1,648-square-foot vacant commercial space last operated by a dry-cleaning use (Rose Cleaners) into a new commercial space. External work would consist of the removal of the existing awning, the creation of a new entryway, transparent glass overhead door, and window that is flush to the wall. The project also proposes new business signage containing the word “Drive” above the doorway. Internal work will consist of creating partitions for a new office, restroom, utility room, and storage area, as well as the legalization of an existing 280-square-foot upper-floor mezzanine. The commercial space will consist of four (4) race car simulators, a lounge area with televisions, and a bar area to serve canned beers, seltzers, pre-packaged snacks, non-alcoholic beverages, and coffee. Customers would be able to purchase hats, shirts, books, vintage racewear, and other racing memorabilia in the merchandise corner of the establishment. (Attachment 9)
To allow for the sale of alcohol, the applicant intends to seek a Type 40 license from the California Department of Alcoholic Beverage Control (ABC). The proposed hours of operation are Wednesday-Friday from 4 p.m.-9 p.m. and Saturday-Sunday from 11 a.m.-9 p.m. (Attachment 7)
Discussion:
Floor Plans
As depicted on the floor plans, (Attachment 2) the clientele will enter the ground floor level entryway from Hermosa Avenue into the 187-square-foot lobby and waiting area before proceeding to the 343-square-foot beverage and snack bar retail space. From there they will proceed past the merchandise corner towards two of the four driving simulators located in a 595-square-foot lounge and gaming area. Beyond that, there will be a hallway that leads to a 103-square-foot office for company personnel, as well as a 43-square-foot storage room, a 47-square-foot utility room, and a 49-square-foot unisex restroom for patrons and staff. Access to the second-floor mezzanine level is available via a stairway located adjacent to the ground floor simulator area and leads to the final two racing simulators and lounge area consisting of 280 square feet and is protected by a 42-inch-tall guard rail required by the Building Code for customer safety.
Departmental Review
As a customary part of the review procedures for entitlements, planning staff consulted with the Hermosa Beach Building and Safety Division, Public Works Department, Police Department, and Environmental Programs Manager from the City Manager’s office. Each department provided written comments expressing their concerns and recommendations based on their review of the project. Each of their respective memorandums are attached to this report and are summarized below.
The Building Official requested that the applicant acquire a business license prior to opening the business, that all review comments and final inspections be completed prior to opening, and that the applicant pay fines pertaining to an existing code enforcement case involving the start of demolition work without permits. The applicant has acknowledged these requirements and is working with the Building Official towards compliance with all three items. (Attachment 3) The Public Works Department requested that the applicant seek and obtain public right-of-way permits for any work occurring in the right of way. (Attachment 4) The Police Department has indicated that they are not in support of an on-sale alcohol (ABC License) citing the existing heavy saturation of alcohol-serving establishments in the downtown area. In case on-sale alcohol service is approved, the Police Department provided conditions of approval for consideration and incorporation. (Attachment 5) Lastly, the Environmental Programs Manager requested that the applicant provide an enclosure for the storage of solid waste containers pursuant to HBMC Section 8.12.220(C). (Attachment 6) Details of a proposed enclosure have been provided in the attached plan set. (Sheet A1.1B) The enclosure will be similar in nature to the adjacent enclosure at 1046 Hermosa Avenue and will contain wood fencing surrounding three sides of the existing trash receptacle and an accessible bolt to keep the front gates in place.
Impacts
As a part of the proposed tenant improvement work to remodel the existing building, there are anticipated impacts pertaining to construction noise, dust, and vibrations. These impacts are transitory in nature and would not pose a long-term nuisance to the neighboring tenants or surrounding residential properties. Most work would also be internal as well, which would help to mitigate these temporary impacts.
Once operational, the impacts from the sale of alcoholic beverages carry the potential to create disturbances to neighboring properties as well as quality of life concerns as identified in the Police Department Memorandum. The memorandum discusses the ongoing issues downtown including public intoxication, violent crime, and driving under the influence. Many of these issues stem from the concentration of alcohol-serving establishments in the downtown, particularly late-night serving establishments.
Furthermore, the City is concerned that the sale and service of alcohol at a business exclusively geared for virtual race car driving may desensitize patrons to the combination of driving while under the influence of alcohol. This combination may unintentionally lead to patrons believing they are capable of driving under the influence outside of a controlled and simulated environment which may pose a public safety risk. This, combined with the City’s ongoing issues with driving under the influence, leads to significant concerns about allowing alcohol service as part of this business. (Attachment 5)
Findings:
Precise Development Plan
HBMC Section 17.58.030 establishes the standard of review for all PDPs. The Planning Commission must affirmatively make the following findings to approve or conditionally approve this portion of the project:
1. Distance from existing residential uses in relation to negative effects:
The subject property is approximately 20 feet from the closest residential property, measured from the east property line to the beginning of the nearest residential property line across the alley. Potentially negative effects from the scope of the PDP include temporary disruptions associated with construction such as noise, traffic, and potential dust or debris.
2. The amount of existing or proposed off-street parking in relation to actual need:
The project site currently has one parking space on the property and one space will remain after the completion of work. The project site is exempt from providing any additional off-street parking due to HBMC Sections 17.44.015 (C)(1) and (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. They also allow for no new parking to be provided for additions of less than 10 percent or 500 square feet. Because the new mezzanine addition on the second floor is an addition of less than 500 square feet, no new parking is needed.
3. The combination of uses proposed, as they relate to compatibility:
The corridor along this segment of Hermosa Avenue is currently comprised of a variety of retail, restaurant, and personal service type uses. The proposed design and floor-plan layout resulting from the tenant improvement scope of work would not have an effect on the use of the site or its compatibility with its surroundings.
4. The relationship of the estimated generated traffic volume and the capacity and safety 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 similar in size and scale with other commercial establishments in the surrounding area and does not feature any characteristics which would result in an unusual or disproportionate traffic impact. Furthermore, aside from the revised entry points and front-facing window, all work will be internal and thus the size of the building will not significantly expand.
5. The proposed exterior signs and decor, and the compatibility thereof with existing establishments in the area:
The proposed exterior signage and décor is consistent with the surrounding establishments in the area and would not deviate substantially from what is seen along Hermosa Ave. The exterior changes consist of alterations to the entryway where the doorway would be flush with the exterior walls, a transparent glass overhead door would be installed, and the existing awning would be removed. New signage would be added featuring the word “Drive” and would be required to comply with HBMC Section 17.50.130 regarding signage in the C-2 Zone.
6. Building and driveway orientation in relation to sensitive uses, e.g., residences, schools, churches, hospitals, and playgrounds:
The building and driveway orientation of the site is not proposed to change in any way and therefore would have no impact on the sensitive uses identified above.
7. Noise, odor, dust and/or vibration that may be generated by the proposed use:
The project would generate noise, dust, and vibrations consistent with other commercial tenant improvements along Hermosa Avenue and must comply with all applicable City codes. These negative effects would be temporary and limited due to the majority of the work occurring from within the existing walls of the building.
8. Impact of the proposed use to the city’s infrastructure, and/or services:
The proposed commercial space is not anticipated to have substantial impacts on the City’s infrastructure or services. The commercial site is existing, and the proposed use would not have substantially greater infrastructure or service needs than the prior dry-cleaning use.
9. Adequacy of mitigation measures to minimize environmental impacts in quantitative terms:
The project does not create adverse environmental impacts because the commercial site is already in existence and the majority of work will be internal.
10. 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.
To ensure compatibility and compliance with the HBMC, a trash enclosure is included as a condition of approval. Satisfaction of this condition will bring the property into compliance with HBMC Section 8.12.220(C) which requires all residential and commercial structures to provide an enclosure for all solid waste containers. The addition of this proposed condition as well as the inclusion of the trash enclosure into the proposed plan set shall ensure that the enclosure is built diligently pursuant to City standards.
Staff recommends approval of PDP as the PDP criteria described above can be satisfied with the incorporation of conditions of approval. The recommended conditions of approval identified in the Draft Resolution include: 1) condition of approval number 7 that ensures accountability and quality control by giving the Planning Commission the authority to amend the conditions or impose new ones if deemed necessary to mitigate detrimental effects on the neighborhood resulting from the design, materials, or site improvements; 2) condition of approval number 11 which requires the construction of a trash enclosure prior to the issuance of certificate of occupancy; 3) condition of approval number 12 prohibiting the installation of reflective or mirrored tint on the storefront windows; and 4) condition of approval number 13 that prohibits the service of alcohol unless approved by the Planning Commission in a subsequent CUP resolution.
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:
2. The amount of existing or proposed off-street parking facilities, and its distance from the proposed use:.
3. Location of and distance to churches, schools, hospitals, and public playgrounds:
4. The combination of uses proposed:
5. Precautions taken by the owner or operator of the proposed establishment to assure the compatibility of the use with surrounding uses:
6. The relationship of the proposed business-generated traffic volume and the size of streets serving the area:
7. The number of similar establishments or uses within close proximity to the proposed establishment:
8. Noise, odor, dust and/or vibration that may be generated by the proposed use:
9. Impact of the proposed use to the city’s infrastructure, and/or services:
10. Will the establishment contribute to a concentration of similar outlets in the area:
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.
CUP Specific Criteria
The CUP specific criteria which differs from the PDP includes the following: the location of the establishment and distance to nearby churches, schools, hospitals, and public playgrounds; precautions taken by the owner or operator of the proposed establishment to assure compatibility of the use with surrounding uses; the number of similar establishments or uses within close proximity to the proposed establishment; and if the establishment will contribute to a concentration of similar outlets in the area.
Should the Planning Commission find that the aforementioned criteria can affirmatively be made to approve the CUP for on-site alcohol, then it should consider the conditions of approval recommended by the Police Department and any other it deems necessary to ensure the use operates in a manner compatible with existing and future uses in the area. The HBMC Section 17.40.080, does establish the following minimum conditions and standards for all on-sale alcohol beverage establishments.
1. The establishment shall not adversely affect the welfare of the residents, and/or commercial establishments nearby.
2. The business shall prevent loitering, unruliness and boisterous activities of the patrons outside the business or in the immediate area.
3. The Police Chief may determine that a continuing police problem exists and may, subject to appeal to the Planning Commission <http://online.encodeplus.com/regs/hermosabeach-ca/doc-view.aspx?pn=0&ajax=0&secid=1997>, 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 <http://online.encodeplus.com/regs/hermosabeach-ca/doc-view.aspx?pn=0&ajax=0&secid=23> 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 <http://online.encodeplus.com/regs/hermosabeach-ca/doc-view.aspx?pn=0&ajax=0&secid=2071> permit.
4. The exterior of the premises shall be maintained in a neat and clean manner, and maintained free of graffiti at all times.
5. 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.
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:
Land Use Element
Goal 1. Create a sustainable urban form and land use patterns that support a robust economy and a high quality of life for residents.
Policies:
• 1.7 Compatibility of uses. Ensure the placement of new uses does not create or exacerbate nuisance between different types of land uses.
This project maintains compatibility of uses by ensuring that the Hermosa Ave corridor continues to function as a regional destination for retail, recreation, and entertainment. This establishment will seamlessly integrate into the existing commercial fabric of the area and provide guests with another high-quality option for leisure which is characteristic of the other uses along the corridor.
Goal 3. A series of unique, destination-oriented districts throughout Hermosa Beach
Policies:
• 3.3 Diverse retail and office centers. 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.
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.
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 it consists of mostly internal work and an addition of less than 50% of the floor area of the existing structures before the addition. 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 April 16, 2024, Planning Commission hearing, 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 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 #24-04
2. Project Plans
3. Building & Safety Review Memorandum
4. Public Works Review Memorandum
5. Police Department Review Memorandum
6. Environmental Programs Manager Memorandum
7. Company Business Plan
8. Link to December 12, 2023 City Council meeting confirming the Community Development Directors Determination of Similar Use
9. Renderings
10. Public Notification Package
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