ITEM 8-B

Council Mtg:  September 8, 1992

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Text Amendment 92-006 to conditionally permit  existing
          drive-in,   drive-through,   fast  food,  and  take-out
          restaurants to remain open after 10:00 p.m. after  they
          have been substantially remodeled or reconstructed

          Applicant:  Fancher Development Services for Taco Bell,
                      Inc.

INTRODUCTION

This report recommends that  the  City  Council  approve  a  text
amendment   which   is   a  modified  version  of  the  amendment
recommended for approval by the Planning Commission.

BACKGROUND AND PLANNING COMMISSION ACTION

Application Chronology

The applicant originally applied for  a  Conditional  Use  Permit
(CUP  91-027)  on  July  2,  1991, to allow the demolition of the
existing walk-in Taco Bell at  2207  Lincoln  Boulevard  and  the
construction  of  a  new  fast  food structure with drive-through
capacity.  On December 11, 1991, the Planning Commission approved
CUP  91-027 to permit the demolition of the existing 1,352 square
foot, 46-seat restaurant and the construction of a  1,568  square
foot,  44-seat restaurant with drive-through capacity (Attachment
A).

At the Planning Commission public hearing  for  CUP  91-027,  the
applicant  asked  the  Planning  Commission to allow the proposed
drive-through to remain open until 12:00 midnight, which  is  two
hours  later than the hours permitted for fast food/drive-through
establishments pursuant to SMMC Section 9055.10(b).  In  response
to  this  request,  the  Planning  Commission  suggested that the
applicant apply for a Text Amendment to SMMC  Section  9055.10(b)
to  allow  for  such  a  closing  time.   The applicant did so on
January 23, 1992 (TA 92-006).

Existing Code Requirement

The applicant seeks to amend SMMC Section 9055.10(b).  This is  a
sub-section  of  Subchapter  7  of  the Zoning Ordinance, wherein
"Special Conditions for Conditional Uses"  are  specified  for  a
number  of  conditionally permitted uses in addition to fast food
establishments, such as child day  care  centers  and  automobile
repair  facilities.   When Subchapter 7 applies to a use which is
approved by the  Planning  Commission  or  the  City  Council  on
appeal,  the special conditions contained therein must be applied
to the Conditional Use Permit.

Within Subchapter 7, SMMC Section 9055.10(b) applies specifically
to "drive-in, drive-through, fast-food, and take-out restaurants"
and is one of several requirements which is  intended  to  ensure
that  these  uses  "do  not result in adverse impacts on adjacent
properties and  residents  or  on  surrounding  neighborhoods  by
reason   of   customer   and  employee  parking  demand,  traffic
generation, noise, light, litter, or cumulative  impact  of  such
demands  in  one  area, consistent with the goals, objectives and
policies of the General Plan."

Specifically, SMMC Section 9055.10(b) reads as follows:
       (b)   Hours of Operation.  When located on a site adjacent
       to or separated by an alley from any  residentially  zoned
       property, a drive-in, drive-through, fast-food or take-out
       restaurant shall not open prior to 7:00 A.M. nor shall  it
       remain open after 10:00 P.M.
It should be noted that the C4 (Highway Commercial)  District  is
the  only  zone  in  which  fast  food/  drive-through  uses  are
permitted (conditionally  or  otherwise),  and  that  nearly  all
parcels in that District are adjacent to or across the alley from
a residential district.

Other sub-sections of Section  9055.10  govern  the  minimum  lot
size,  driveway  and  parking standards, refuse storage location,
pick-up of litter, noise-generating equipment, and placement  and
type  of  speaker  box.   CUP  91-027 is subject to each of these
conditions, including the condition of  closure  prior  by  10:00
P.M.  The applicant is aware that if a Text Amendment is approved
by the City Council,  a new CUP  application  must  be  filed  in
order to amend CUP 91-027.

Planning Commission Decision Regarding the Text Amendment

In its review  of  TA  92-006  on  June  3,  1992,  the  Planning
Commission  recommended an amendment which differed from both the
applicant's request and staff's recommendation (Attachment C).

The applicant requested language which would add  a  sentence  to
the end of the current language as follows:
       (b)  Hours of Operation.  When located on a site  adjacent
       to  or  separated by an alley from any residentially zoned
       property, a drive-in, drive-through, fast-food or take-out
       restaurant  shall not open prior to 7:00 A.M. nor shall it
       remain   open   after   10:00   P.M.    If   a   drive-in,
       drive-through,  fast-food,  or  take-out restaurant exists
       and has existed since the effective date of this  Chapter,
       the existing hours of operation may be maintained.
If approved, this Text Amendment would, as a  matter  of  course,
allow  conditionally-permitted  drive-through/fast  food  uses to
maintain their  legal  nonconforming  hours  of  operation  after
undergoing  a  substantial remodel or change in mode or character
of operation.

The Planning Commission staff report for  TA  92-006  recommended
language  which  was  intended to allow legal nonconforming hours
for the existing portion of the use  to  be  maintained  after  a
substantial  remodel  or  change  in  mode  of  operation.   This
suggested  language  would   have   conditionally   allowed   the
proprietor  of  the  Lincoln  Boulevard Taco Bell to maintain the
existing midnight closing time for the  walk-in  use,  but  would
have  required  a  10:00  p.m.  closing  time  for  the  proposed
drive-through portion of the project.   (The  current  Taco  Bell
does  not  have a drive-through facility.)  As staff is no longer
recommending this language it is not reproduced here, but it  may
be  reviewed  in  the  attached  Planning Commission staff report
(Attachment B).

The Planning Commission recommended a Text Amendment which  makes
any  extension  of  the  permitted  hours  of  operation  a clear
discretionary action on the part of the Commission or, on appeal,
the City Council, as follows:
          9055.10(b)  Hours of Operation.  When located on a site
          adjacent   to   or  separated  by  an  alley  from  any
          residentially    zoned    property,     a     drive-in,
          drive-through,  fast food, or take-out restaurant shall
          not open prior to 7:00 a.m. nor shall  it  remain  open
          after  10:00  p.m.   If a drive-in, drive-through, fast
          food, and/or take-out restaurant was  in  existence  on
          the  effective  date  of  this  Chapter  and  has  been
          continually in existence since then, and is proposed to
          be demolished, substantially remodeled or expanded, the
          Planning Commission  or  City  Council  on  appeal  may
          establish  hours  of  operation which extend beyond the
          above time limitations.
In  making  this  recommendation,  Commissioners noted that their
proposed language gave them more discretion than that proposed by
the  applicant  and  was more clear than the language proposed by
staff.  Because the Commission's provision for the  extension  of
hours of operation did not hinge on retaining "existing" hours of
operation, their proposed amendment did not create  an  incentive
for  fast  food establishments to extend their hours of operation
prior to filing for a Conditional Use Permit in order  to  become
"vested"  to  remain  open  after 10:00 p.m.  The Commission also
made the required  Text  Amendment  findings  that  the  proposed
amendment is consistent with the General Plan and is required for
the public health, safety and general welfare of the City.

ANALYSIS

Revised Staff Recommendation

Staff agrees with the applicant and the Planning Commission  that
a  Text  Amendment  may be warranted in this case, but suggests a
version which is both more specific in intention and more limited
in  scope.   Staff recommendation regarding the Text Amendment is
as follows:
       9055.10(b)   Hours  of  Operation.  When located on a site
       adjacent  to  or  separated   by   an   alley   from   any
       residentially  zoned  property, a drive-in, drive-through,
       fast food, or take-out restaurant shall not open prior  to
       7:00  a.m. nor shall it remain open after 10:00 p.m.  If a
       drive-in,  drive-through,  fast  food,   and/or   take-out
       restaurant  was in existence on the effective date of this
       Chapter and has been continually in existence since  then,
       and  is proposed to be demolished, substantially remodeled
       or expanded, the Planning Commission or  City  Council  on
       appeal  may  establish  hours  of  operation  which extend
       beyond the above time limitations for walk-in customers of
       fast  food  and/or take-out components only, provided that
       the following findings are made:
          1)   the  hours  of  operation  are consistent with the
          goals, objectives, and policies of the General Plan;
          2)   the hours of operation would not be detrimental to
          the public interest,  health  safety,  convenience,  or
          general welfare;
          3)  the hours of operation  would  not  create  adverse
          impacts on nearby residential uses.

Staff believes that the proposed language addresses two issues of
concern  which  were  not  addressed  in previous versions of the
proposed amendment.   First,  staff's  suggested  language  would
continue   to  prohibit  drive-through  and  drive-in  uses  from
operating after 10:00 p.m.  As drive-through  and  drive-in  uses
have  the  greatest  potential  to  cause noise and air pollution
which may become particularly bothersome to neighbors in the late
evening  hours,  staff believes it is prudent to maintain a 10:00
p.m. closing time for these uses but  allow  walk-in  uses  after
10:00  p.m.  on  a  case-by-case  basis.  Secondly, the suggested
language requires that the Commission or Council on  appeal  make
findings that the proposed hours are consistent with General Plan
objectives and not detrimental to the  surrounding  neighborhood.
These  additional  findings  would  require  both  staff  and the
Commission or Council to carefully evaluate each  proposal  based
on its location and potential merits and/or problems.

General Plan Consistency

Staff believes  that  the  amendment  language  proposed  by  the
applicant  is  inconsistent  with  the  General Plan Land Use and
Circulation Element (LUCE) Objective 1.6, which states  that  the
City  should  "accommodate  commercial uses which serve regional,
community  and  local  needs  while   respecting   the   adjacent
residential  neighborhoods."   However,  the  language  currently
recommended by staff would meet this objective because  it  would
accommodate  fast  food  establishments  wishing to upgrade their
existing facilities without allowing these businesses to  operate
the  most  potentially  disruptive  uses  (ie., drive-through and
drive-in) after 10:00 p.m.

An alternative interpretation could be made  that  any  new  fast
food  or  take  out  use  which  remains open after 10:00 p.m. is
potentially detrimental to the adjacent residential  neighborhood
and  would therefore contradict LUCE Objective 1.6.   If the City
Council makes this interpretation, the  proposed  Text  Amendment
should be denied.

By allowing the Commission or Council increased  flexibility  for
hours  of  operation  at  existing fast food establishments which
make  improvements,  staff's  proposed  language  addresses   the
concern of the applicant that the current SMMC Section 9055.10(b)
effectively penalizes  businesses  for  improving  and  upgrading
their existing facilities.

Conclusion

The  current  SMMC  Section  9055.10(b)  is  one  result  of   an
extensive, multi-year public process which culminated in the City
Council's adoption of the Zoning Ordinance  on  August  9,  1988.
Like other sections of the Zoning Ordinance, it must be carefully
evaluated before amending.  The  Planning  Commission  and  staff
understand  that  the  Council's original 7:00 a.m. to 10:00 p.m.
limitations on fast  food/drive-through  uses  were  intended  to
limit  adverse impacts on adjacent residential neighborhoods, and
staff's  recommended  language  is  intended  to  maintain  these
protections  while  providing  a  measure  of flexibility.  Staff
concurs with the  Planning  Commission  and  the  applicant  that
Section 9055.10(b) can be improved upon, and therefore recommends
that the  City  Council  adopt  the  amended  text  and  findings
contained herein as proposed by staff.

Public Notification

Because this proposal is not site specific  (it  would  apply  to
multiple  parcels  throughout  the  C4  District), no radius map,
signage or mailing notification is required.  A legal notice  was
published  in  The  Outlook.   Staff  notified  the  Neighborhood
Support Center of the Council hearing date on August 18, 1992.

BUDGET/FINANCIAL IMPACT

The recommendation presented in this report  does  not  have  any
budget or fiscal impact.

RECOMMENDATION

It  is  respectfully  recommended  that  the  Council  make   the
following  findings and introduce for first reading the ordinance
attached as Attachment D:

FINDINGS

1.     The proposed amendment is consistent in principle with the
       goals,  objectives,  policies,  land  uses,  and  programs
       specified in the adopted  General  Plan,  in  that  it  is
       consistent with Land Use and Circulation Element Objective
       1.6,  which  states  that  the  City  should   allow   the
       development  of regional- and community-serving commercial
       uses while protecting adjacent residential uses.

2.     The public health, safety, and  general  welfare  requires
       the  adoption  of  the  proposed  amendment,  in  that the
       amendment allows existing  drive-in,  drive-through,  fast
       food,  and  take-out  facilities  in  the  C4  District to
       improve their facilities without reducing their  hours  of
       operation  for walk-in customers of existing uses, subject
       to approval by the Planning Commission or City Council  on
       appeal.

Prepared by:  D. Kenyon Webster, Planning Manager
              Drummond Buckley, Assistant Planner
              Planning Division
              Land Use and Transportation Management Department

ATTACHMENTS:

       A.  Planning Commission Staff Report for CUP 91-027
           (including attachments)
       B.  Planning Commission Staff Report for TA 92-006
           (including attachments)
       C.  Planning Commission Statement of Official Action
           for TA 92-006
       D.  Ordinance Amending SMMC Section 9055.10(b)