ITEM 7-C

Council Mtg:  September 29, 1992


TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Appeal of a Planning Commission Denial  of  Conditional
          Use  Permit  to  allow a Type 41, On-Sale Beer and Wine
          for Bona Fide Public Eating Place alcohol license for a
          proposed  2,275  sq.ft.,  100  seat  restaurant  in  an
          existing 6,570 sq.ft. commercial building.

          Address:    1333 Third Street Promenade
          Applicant:  Vic Watana
          Appellant:  Vic Watana

INTRODUCTION

This  is  an  appeal  of  a  Planning  Commission  denial  of   a
Conditional  Use Permit to allow a Type 41, On-Sale Beer and Wine
for Bona Fide Public Eating Place alcohol license for a  proposed
2,275  square  foot,  100  seat  restaurant  in an existing 6,570
sq.ft. commercial building at 1333 Third Street Promenade.

This report recommends that the City Council approve  the  appeal
and  approve  Conditional  Use  Permit 92-010 to allow a Type 41,
On-Sale Beer and Wine for Bona Fide Public Eating  Place  alcohol
license.

BACKGROUND

Conditional Use Permit 92-010 to allow a Type  41,  On-Sale  Beer
and  Wine for Bona Fide Public Eating Place alcohol license for a
proposed 2,275 square foot, 100 seat restaurant  in  an  existing
commercial building was denied by the Planning Commission on July
1, 1992 (Attachment A).  The Commission's action was a  technical
denial   as  the  motion  to  approve  with  staff  findings  and
conditions failed to pass with the required four votes.  The vote
was  3 to 2 (with two members absent) in favor of approval of the
CUP.

On April 20, 1992, an  Administrative  Approval  was  granted  to
permit a change of use from retail to a 100 seat restaurant in an
existing 6,750 square  foot  commercial  building.   The  CUP  is
necessary for on-site sale of alcohol.  A full-service restaurant
including an outdoor dining area with no  proposed  bar  area  or
entertainment is proposed.

APPEAL ISSUES

The applicant appealed the Commission's action on  July  6,  1992
(Attachment  B).   The  reasons for the appeal include:  that the
approval was recommended by the  Planning  and  Zoning  Division;
that   the  application  meets  all  City  ordinances;  that  the
restaurant  was  one  of  four   alcohol   applications   pending
Commission  review  and included in the Commission's limit on the
number of alcohol outlets  in  the  downtown  area;  and  that  a
similar  restaurant on the Third Street Promenade was approved at
the same Planning Commission hearing.

Staff had recommended that the Planning  Commission  approve  CUP
92-010  to  allow  a Type 41, On-Sale Beer and Wine for Bona Fide
Public Eating Place alcohol license for the proposed full-service
restaurant  (Attachment  C).   The  recommendation  was  based on
findings that the proposed on-sale of alcohol  was  ancillary  to
the  main  purpose  of  meal service, that there would be minimal
negative impacts on the surrounding  district,  as  there  is  no
proposed  bar  area  and  proposed  hours are 11:00 a.m. to 12:00
a.m., that restaurant uses are encouraged by the General Plan and
the  Third Street Mall Specific Plan and that the use is proposed
for an existing commercial building with  all  amenities  on-site
(Attachment  C).   The  proposal is similar to other full-service
restaurant alcohol outlets within a 500' site radius and  is  not
located  in  close  proximity  to  residential areas.  The Police
Department did not have an objection to the restaurant as long as
it remains a full-service restaurant.

At the time the Commission acted, the alcohol CUP application was
one   of   four  applications  pending  review  by  the  Planning
Commission.  The  Commission  proposed  changes  to  the  Bayside
District  Plan  on  June 17, 1992 including a recommendation that
the number of alcohol outlets  for  the  Third  Street  Promenade
remain  at  existing  levels, plus the possible addition of up to
four alcohol outlets (Attachment C), including this  application.
The  application  is exempt from the City Council's moratorium on
new restaurants in the Bayside District,  as  the  Administrative
Approval  was  granted for a change of use to restaurant prior to
August 11, 1992.

SUMMARY AND CONCLUSION

Conditional Use Permit 92-010 was subject to a  technical  denial
by  the  Planning  Commission  on  July  7,  1992.  The applicant
appealed the decision  based  on  the  staff  recommendation  for
approval  of  the application, that the restaurant was within the
limits of alcohol outlets proposed by  the  Planning  Commission,
and  that  a  similar restaurant on the Promenade was approved at
the July 7, 1992 hearing.  Limited alcohol service (beer and wine
only)  is  proposed  as an ancillary use to meals service for the
restaurant and no bar area or entertainment is proposed.

BUDGET/FINANCIAL IMPACT

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

REQUIRED NOTIFICATION

Pursuant to Municipal Code Section 9131.5,  notice  of  the  City
Council  meeting  was  mailed  to  all owners and residential and
commercial tenants of property located within a 500  foot  radius
of  the  project  at least ten consecutive calendar days prior to
the City Council meeting.  A copy of the notice is  contained  in
Attachment A.

RECOMMENDATION

It is respectfully  recommended  that  the  Council  approve  the
appeal  and approve Conditional Use Permit 92-010 to allow a Type
41, On-Sale Beer and Wine  for  Bona  Fide  Public  Eating  Place
alcohol  license  for the proposed 2,275 square foot full service
restaurant at 1333 Third  Street  Promenade  with  the  following
findings and conditions:

CONDITIONAL USE PERMIT FINDINGS

1.     The proposed use is one conditionally permitted within the
       subject  district  and complies with all of the applicable
       provisions of the "City of Santa Monica Comprehensive Land
       Use  and  Zoning  Ordinance"  and  the  Third  Street Mall
       Specific Plan, in that sale of alcohol as a  complimentary
       item  with meal service for the proposed restaurant should
       not result in adverse conditions.

2.     The proposed  use  would  not  impair  the  integrity  and
       character of the district in which it is to be established
       or located, in that restaurant uses are encouraged for the
       C3-C  Downtown  Overlay  District.  The primary use of the
       2,275 sq.ft., 100 seat restaurant will be to provide  bona
       fide meal service with ancillary alcohol service.  The on-
       site alcohol use should not impair  the  surrounding  dis-
       trict  provided  that  the  alcohol  use  does  not become
       primary in nature and remains ancillary to that of dining.

3.     The subject parcel is physically suitable for the type  of
       land  use  being  proposed, in that the proposal is for an
       existing 6,750 sq.ft.  commercial  structure  on  a  level
       parcel.

4.     The proposed use is compatible with any of the  land  uses
       presently  on  the subject parcel if the present land uses
       are to remain, in that the proposal  is  for  an  existing
       6,750  sq.ft.  commercial structure with no alterations to
       the existing structure.

5.     The proposed use would be  compatible  with  existing  and
       permissible  land uses within the district and the general
       area in which the proposed use is to be located,  in  that
       the proposal is for a permiited 100 seat restaurant within
       an existing 6,750 sq.ft. commercial  structure  conforming
       and  on-site  sale of alcohol ancillary to the primary use
       of meals service.

6.     There are adequate provisions for water,  sanitation,  and
       public  utilities and services to ensure that the proposed
       use would not be detrimental to public health and  safety,
       in  that  all  amenities  will be provided on-site for the
       proposal.

7.     Public access to the proposed use  will  be  adequate,  in
       that  the proposed restaurant will be adequately served by
       Municipal Parking Structure No.  3  to  the  east  of  the
       parcel.

8.     The physical location or placement of the use on the  site
       is  compatible  with  and relates harmoniously to the sur-
       rounding neighborhood, in that  the  100  seat  restaurant
       with  a  Type  41 On-Sale Beer & Wine for Bona Fide Public
       Eating Place alcohol license is for an existing commercial
       structure,  in  that permitted restaurant uses in the C3-C
       district are encouraged by the General Plan and the  Third
       Street Mall Specific Plan and in that the proposed on-sale
       of alcohol is incidental to that of meal service.

9.     The proposed use is consistent with the goals, objectives,
       and  policies of the General Plan, in that uses which pro-
       mote economic  activity,  including  permitted  restaurant
       uses  in  the C3-C district, are encouraged by the General
       Plan and the Third Street Mall Specific Plan and  in  that
       the  proposed  alcohol  use is incidental and ancillary to
       that of meal service.

10.    The proposed use would not be detrimental  to  the  public
       interest, health, safety, convenience, or general welfare,
       in that the hours of operation do not exceed 11 a.m. to 12
       p.m.,  Monday through Sunday, no bar area or entertainment
       is proposed and conditions of  approval  for  the  alcohol
       license  would  mitigate possible negative impacts on sur-
       rounding uses.

11.    The proposed use conforms precisely to the applicable per-
       formance standards contained in Subchapter 6, Section 9050
       and special conditions outlined in Subchapter  7,  Section
       9055  of  the  City of Santa Monica Comprehensive Land Use
       and Zoning Ordinance, in that this use is not governed  by
       the applicable chapters.

12.    The proposed use will not result in  an  overconcentration
       of  such uses in the immediate vicinity, in that there are
       twenty (20) alcohol licenses within a 500' radius  of  the
       site  of  which  ten (10) are Type 47, On-Sale General for
       Public Eating Place, nine (9) are Type  41,  On-Sale  Beer
       and  Wine for Public Eating Place and one (1) are Type 48,
       On-Sale General for Public Premises consisting of 20  res-
       taurants  with  ancillary alcohol use to meals service, in
       that the proposed restaurant with on-sale of alcohol  will
       remain  ancillary  to the primary use of meal service, and
       in that the  project  is  located  in  the  downtown  area
       characterized  by numerous businesses and large numbers of
       people frequenting the area for services.

ALCOHOL OUTLET FINDINGS

1.     The proposed use and location are in accordance with  good
       zoning  practice,  in  the  public interest, and necessary
       that substantial justice be  done  in  that  the  proposed
       restaurant  is  a  permitted use in the C3-C district, and
       the on-site sale of alcohol is proposed  as  ancillary  to
       the primary use of meal service.

2.     The proposed use will not adversely affect the welfare  of
       neighborhood  residents  in  a  significant manner in that
       alcohol sales will occur in a controlled  manner  for  the
       proposed 2,275 sq.ft. 100 seat restaurant with no bar area
       or entertainment and in that conditions of  approval  will
       mitigate potential negative impacts.

3.     The  proposed  use  will  not  contribute  to   an   undue
       concentration of alcohol outlets in the area in that there
       are twenty (20) alcohol license within a  500'  radius  of
       the  site  of  which ten (10) are Type 47, On-Sale General
       for Public Eating Place, nine (9)  are  Type  41,  On-Sale
       Beer and Wine for Public Eating Place and one (1) are Type
       48, On-Sale General for Public Premises consisting  of  19
       restaurants  with  ancillary alcohol use to meals service,
       in that the proposed restaurant with  on-sale  of  alcohol
       will  remain ancillary to the primary use of meal service,
       and in that the project is located in  the  downtown  area
       characterized  by numerous businesses and large numbers of
       people frequenting the area for services.

4.     The proposed use  will  not  detrimentally  affect  nearby
       neighborhoods  considering  the  distance  of  the alcohol
       outlet  to  residential  buildings,   churches,   schools,
       hospitals,  playgrounds, parks, and other existing alcohol
       outlets in that there is one  church  located  within  the
       500'  site  radius and in that the conditions for approval
       including  hours  of  operation  will  minimize  potential
       negative effects on such use.

5.     The proposed use is compatible with existing and potential
       uses within the general area in that the proposal is for a
       permitted 100 seat restaurant  within  an  existing  6,750
       sq.ft. commercial structure conforming and on-site sale of
       alcohol ancillary to the primary use of meals service.

6.     Traffic and parking congestion will not  result  from  the
       proposed  use  in  that  the  proposed  restaurant will be
       adequately served by Municipal Parking Structure No. 3  to
       the east of the parcel, as well as other structures.

7.     The  public  health,  safety,  and  general  welfare   are
       protected in that hours of operation do not exceed 11 a.m.
       to  12  p.m.,  Monday  through  Sunday,  no  bar  area  or
       entertainment  is  proposed and conditions of approval for
       the  alcohol  license  would  mitigate  possible  negative
       impacts on surrounding uses.

8.     No harm to adjacent properties will  result  in  that  the
       proposal  is  for a 100 seat full-service restaurant in an
       existing commercial  structure  with  on-sale  of  alcohol
       proposed  as  ancillary to the primary use of meal service
       and in that conditions of approval will mitigate potential
       negative impacts on adjacent properties.

9.     The proposed use is consistent with the objectives of  the
       General  Plan  and  the Third Street Mall Specific Plan in
       that  uses  which  promote  economic  activity,  including
       permitted  restaurant  uses  in  the  C3-C  district,  are
       encouraged by the General Plan and the Third  Street  Mall
       Specific  Plan  and  in  that  the proposed alcohol use is
       incidental and ancillary to that of meal service.

ALCOHOL OUTLET CONDITIONS

1.     The owner shall prohibit loitering and shall control noisy
       patrons leaving the restaurant.

2.     The primary use of the premises shall be for sit-down meal
       service  to  patrons.   Alcohol  shall  not  be  served to
       persons except those intending to purchase meals.

3.     The premises shall maintain a kitchen or food-serving area
       in  which  a variety of food is prepared and cooked on the
       premises.

4.     The premises shall serve food to patrons during all  hours
       the establishment is open for customers.

5.     Seating arrangements for sit-down patrons shall not exceed
       100  seats, consisting of eighty interior seats and twenty
       outdoor courtyard seats.

6.     Take out service shall be only incidental to  the  primary
       sit-down use.

7.     No alcoholic beverage shall be sold for consumption beyond
       the premises.

8.     No dancing or live entertainment shall be permitted on the
       premises.

9.     The primary use of the outdoor dining area  shall  be  for
       seated  meals  service.   Patrons  who are standing in the
       outdoor seating area shall not be served.

10.    Permitted hours shall be 11 a.m. to 12 p.m. Monday through
       Sunday.   No  "after hours" operations shall be permitted.
       Alcohol service to any outdoor seating area adjacent to  a
       public  street or sidewalk shall cease one hour in advance
       of the operating hours otherwise permitted.

11.    No expansion in number of seats, intensity  of  operation,
       or  outdoor  areas shall occur without prior approval from
       the City of Santa Monica and State ABC.

12.    Prior to issuance of a  Certificate  of  Occupancy,  or  a
       business  license, as applicable, a security plan shall be
       submitted to the Chief of Police for review and  approval.
       The  plan  shall  address  both  physical  and operational
       security issues.

13.    Prior to issuance of a  Certificate  of  Occupancy,  or  a
       business license, as applicable, the  operator       shall
       submit a plan for approval by  the  Director  of  Planning
       regarding employee alcohol awareness training programs and
       policies.  The plan  shall  outline  a  mandatory  alcohol
       awareness   training  program  for  all  employees  having
       contact with  the  public  and  shall  state  management's
       policies  addressing  alcohol consumption and inebriation.
       The operator shall provide City with an annual  compliance
       report  regarding  compliance  with  this condition.  This
       project shall be subject to any future  City-wide  alcohol
       awareness  training  program  condition  affecting similar
       establishments.   The  plan  shall  also   set   forth   a
       "designated driver" program, which shall be offered by the
       operator of the establishment to patrons.

14.    Final  plans  for  any   changes   to   exterior   design,
       landscaping,  trash  enclosures,  and/or  signage shall be
       subject to review and approval by the Architectural Review
       Board.

15.    Final plans  for  outdoor  seating  shall  be  subject  to
       approval  of  the  Bayside  District  Corporation, General
       Services Department, Resource  Management  Department  and
       the Architectural Review Board.

16.    Minor amendments to the plans shall be subject to approval
       by the Director of Planning.  An increase of more than 10%
       of the square footage  or  a  significant  change  in  the
       approved  concept  shall be subject to Planning Commission
       Review.  Construction shall be in substantial  conformance
       with  the  plans  submitted or as modified by the Planning
       Commission, Architectural Review  Board,  or  Director  of
       Planning.

17.    The applicant shall comply  with  all  legal  requirements
       regarding provisions for the disabled, including those set
       forth in the California  Administrative  Code,  Title  24,
       Part 2.

18.    Refuse areas,  storage  areas,  and  mechanical  equipment
       shall  be  screened  in  accordance  with  Sec.  9127J.2-4
       (SMMC).  Refuse areas shall be of a size adequate to  meet
       on-site need.

19.    The operation shall at all times be conducted in a  manner
       not  detrimental to surrounding properties or residents by
       reason of lights, noise,  activities,  parking,  or  other
       actions.

20.    No noise generating compressors or  other  such  equipment
       shall   be  placed  adjacent  to  neighboring  residential
       buildings.

21.    Alcohol shall not be served in  any  disposable  container
       such as disposable plastic or paper cups.

22.    No video or other amusement games shall  be  permitted  on
       the premises.

23.    Within  thirty  (30)  days  from  date  of  approval   (if
       approved)  the  applicant  shall  provide  a  copy  of the
       Statement of Official Action  for  this  approval  to  the
       local  office  of  the  State  Alcoholic  Beverage Control
       department.

24.    This permit shall expire one year from the effective  date
       of approval unless required ABC permits are obtained.  One
       ninety (90) day extension of the one year  period  may  be
       permitted   if  approved  by  the  Director  of  Planning.
       Applicant is on  notice  that  an  extension  may  not  be
       granted  if  development standards relevant to the project
       have changed since project approval.

25.    Applicant is on  notice  that  all  temporary  signage  is
       subject to the restrictions of the City sign ordinance.

26.    Any new restaurant at the site with fewer  than  50  seats
       capacity  shall  install a grease interceptor with minimum
       750 gallons static holding capacity in order  to  pretreat
       sewered grease.  Facilities with greater than 50 seats are
       required to install an interceptor with 1000 gallons mini-
       mum holding capacity.  The General Services Department may
       modify  the  above  requirements  only  for  good   cause.
       Specifically,  the facility must demonstrate to the satis-
       faction of the Industrial Waste Section and  Building  and
       Safety  Division  that  interceptor  installation  is  not
       feasible at the site in question.   In  such  cases  where
       modifications  are  granted, grease traps will be required
       in the place of an  interceptor.   Building  Permit  plans
       shall show the required installation.

ATTACHMENTS:

A.     Statement of Official Action dated July 1, 1992.
B.     Appeal form dated July 6, 1992.
C.     Staff Memorandum to Planning Commission dated July 1, 1992
D.     Notice of Development Proposal dated September 29, 1992.
E.     Site Plan and Floor Plans

Prepared by:  D. Kenyon Webster, Planning Manager
              Susan White, Assistant Planner
              Planning and Zoning Division
              Land Use and Transportation Management Department