ITEM 7-C

Council Mtg:  October 13, 1992

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Conditional Use Permit and Reduced  Parking  Permit  to
          allow  the  operation  of a 7,068 square foot, 376-seat
          cabaret and restaurant with a Type-47 (on-sale general)
          alcohol license at 250 Santa Monica Pier.

          Conditional Use Permit 92-026
          Reduced Parking Permit 92-002
          Applicant:  Ash Grove Enterprises/City of Santa Monica
          Appellant:  Stephanie Barbanell

INTRODUCTION

This report recommends that the City Council deny the appeal  and
uphold  the  Planning  Commission's  approval  of Conditional Use
Permit 92-026 and Reduced Parking Permit 92-002.

BACKGROUND

The proposed project will occupy 6,104 square feet of floor  area
within  the  existing  Billiard  Building  and 964 square feet of
outdoor   patio   space   adjacent   to   the   building.     The
cabaret/restaurant  will  have  a  total of 376 seats including a
25-seat lunch cafe, a 10-seat bar, a  35-seat  private  room,  66
outdoor  patio seats and a 240-seat main cabaret/restaurant room.
Seating  in  the  main  room  will  be  oriented  in  a   cabaret
configuration,  directed  toward  a  200 square foot stage in the
southwest corner of the facility.  A 300 square foot kitchen  and
a  160 square foot bar will be located in the northwest corner of
the facility.

The 2,152 square foot second floor of the project will contain  a
35-seat private banquet room, restrooms, a dressing room, storage
space and an office.  An elevator will be  installed  to  provide
handicap access to the second floor.  The portion of the facility
over the stage and cabaret seating area features a  high  ceiling
with no second floor space.

Exterior modifications to the building will  be  limited  to  new
signage  and  awnings,  relocated  doors and windows, and outdoor
dining.  These improvements will be subject  to  the  review  and
approval of the Landmarks Commission.

In  March  of  1990,  the   Zoning   Administrator   granted   an
Administrative  Approval  to allow the renovation of the existing
Billiard Building at 250-258  Santa  Monica  Pier.   The  remodel
included  interior  and  exterior  improvements  to the building.
The two existing restaurant tenants (the  Crown  and  Anchor  and
Santa  Monica  Seafood)  reopened  in  the building following the
remodel.  Exterior improvements were also made to the portion  of
the building where the Ash Grove is to be located.

In April of 1992, the City Council approved the Santa Monica Pier
Development  project,  which included renovation of some existing
Pier buildings and addition of the Fun Zone.  The shared  parking
analysis  contained  in the Environmental Impact Report certified
by the City Council for the Pier  Development  Project  concluded
that   there   would  be  approximately  68,085  square  feet  of
restaurant/entertainment space and a total of approximately 2,270
restaurant  seats  associated  with  the  redeveloped Pier.  This
number included consideration  of  the  Ash  Grove  and  Sinbad's
projects.   The  parking  analysis stated that there is currently
adequate parking available to meet the parking demand for the new
restaurants and entertainment uses.  A Conditional Use Permit and
Reduced Parking Permit for Sinbad's are the subject of a separate
action, also pending before the City Council.

In May of 1992, the City Council approved an  Alcoholic  Beverage
Service  Policy  Statement  for the Santa Monica Pier.  While the
proposed policy statement recommended  by  the  Pier  Restoration
Corporation  included a limit on the number of alcohol outlets to
be permitted on the Pier, the Council's  action  did  not  set  a
numerical  limit, but stated that each alcohol permit application
should be reviewed on its own merits, until a Pier Master Plan is
adopted.

On  August  26,  1992,  the  Planning   Commission   approved   a
Conditional  Use  Permit  and Reduced Parking Permit to allow the
issuance of a Type-47 alcohol license for  the  Ash  Grove.   The
Commission  approved  the  project by a vote of four to one, with
one Commissioner absent  and  one  Commissioner  abstaining.   On
August  27,  1992,  the  applicant  appealed  one of the Planning
Commission's conditions of approval, and on  September  9,  1992,
Stephanie   Barbanell   appealed  the  overall  approval  of  the
project.

ANALYSIS

Reduced Parking Permit

Code required parking for the proposed  cabaret/restaurant  would
be  110  spaces based on a ratio of one space for every 50 square
feet of bar area and one  space  for  every  75  square  feet  of
restaurant area.  The applicant has applied for a Reduced Parking
Permit to allow a reduction of the  required  number  of  parking
spaces based on the fact that shared parking is characteristic of
the Pier and the adjacent beach lots.  The  Environmental  Impact
Report  certified  by  the  City Council for the Pier Development
Project included a parking analysis which  concluded  that  there
are  enough  existing  parking spaces to accommodate the existing
demand from the Pier, as  well  as  the  demand  which  would  be
generated by the Ash Grove and Sinbad's projects.

There are currently 1,210 parking spaces  that  serve  the  Pier,
with  272  spaces  in  the Pier surface parking lot, 75 spaces at
1640 Appian Way, 706 spaces at 1550 Pacific  Coast  Highway,  and
157 spaces at 1440 Pacific Coast Highway.  The EIR concludes that
the existing peak parking demand for the Pier is 939 spaces,  and
that  the  parking demand for the Ash Grove and Sinbad's would be
101 spaces for a total of 1,040 space.  This results in a surplus
of 170 spaces.  During the evenings, which are expected to be the
peak  demand  period  for  the  subject   facility,   there   are
substantial  parking resources available due to the lack of beach
parking  demand.   Based  on   these   calculations,   staff   is
recommending approval of the Reduced Parking Permit.

Alcohol License

According to the list of alcohol licenses in the  City  of  Santa
Monica  as  of  May 11, 1992, published by the ABC, within a 500'
radius of the site, there is one Type-40 (on-sale beer)  license,
five  Type-41  (on-sale  beer  and wine) licenses and two Type-47
(on-sale general) licenses.  These include the following:

Type 40 (On-Sale Beer)

Mermaid Cafe                     (42 seats) 1557 Ocean Front Walk

Type 41 (On-Sale Beer and Wine for Eating Place)

SM Pier Seafood                 (115 seats) 258 Santa Monica Pier
Surf View Cafe                   (80 seats) 330 Santa Monica Pier
American Grill                   (36 seats) 378 Santa Monica Pier
Jack's on the Pier               (58 seats) 390 Santa Monica Pier
Big Dean's Cafe                  (64 seats) 1613 Ocean Front Walk

Type 47 (On-Sale General for Eating Place)

Boathouse Restaurant            (332 seats) 301 Santa Monica Pier
Crown and Anchor                (114 seats) 256 Santa Monica Pier

In addition to the outlets listed above,  in  May  of  1992,  the
Planning  Commission  approved  a Conditional Use Permit to allow
the issuance of a Type-47 alcohol license for a new restaurant to
be located at 401 Santa Monica Pier.

Planning staff has spoken  to  representatives  from  the  Police
Department regarding alcohol outlets on the Pier.  With regard to
alcohol sales on the Pier in  general,  Police  Department  staff
have stated that the majority of alcohol problems on the Pier and
in the vicinity result from people who buy alcohol at an off-sale
location  and  bring  it  to  the  Pier or the beach, rather than
people who consume alcohol in Pier  restaurants.   Regarding  the
closing  time  of  Pier  alcohol outlets, Police Department staff
have stated that they do  not  have  significant  concerns  about
establishments  on  the Pier being open until 2:00 A.M., although
shorter  hours   of   operation   typically   result   in   fewer
disturbances.   A  full  complement  of security personnel are on
duty at the latest allowable closing time.

Appeals

As stated in the attached appeal form dated 09/01/92  (Attachment
A),  the  applicant  appealed  one  of  the  Planning  Commission
conditions  of  approval.   However,   since   that   time,   the
applicant's appeal has been withdrawn.

The second appeal of the Planning Commission approval  was  filed
on September 9, 1992, by Stephanie Barbanell (Attachment B).  Ms.
Barbanell appealed the approval based on her  concern  about  the
number  of  alcohol  outlets within the area of the Pier, and her
contention that the approval of the project violates portions  of
the   Alcohol  Outlet  Section  of  the  Zoning  Ordinance.   The
appellant states that  there  should  not  be  any  more  alcohol
outlets  in  the  area of the Pier based on the ABC definition of
overconcentration which relates the number of alcohol outlets  in
a  given  census  tract to the amount of crime.  However, the ABC
definition
is  a  guideline  which may be used by the ABC to deny an alcohol
license, but denial is not a requirement for the ARB or for local
jurisdictions.   While  the  Zoning  Ordinance does not contain a
definition of "undue concentration", staff is recommending in the
Citywide  Alcohol  Policy  that  numerical limits, similar to the
ones in effect on Main  Street,  be  established  for  the  Santa
Monica  Pier  and the Bayside District Specific Plan area.  These
are the areas where, due to the  high  numbers  of  out  of  town
visitors and the concentration of visitor-serving uses,  there is
a  high  demand  for  a  large  number  of  eating  and  drinking
establishments  and a potential for over concentration of alcohol
outlets.  A numerical limit  is  one  way  of  dealing  with  the
potential  of  over-concentration  and  has been utilized on Main
Street and the Promenade.  However, as noted above,  the  Council
decided  not  to adopt a limit for the Pier until a complete Pier
Master Plan is adopted.

The appellant also raises several issues related to the sale  and
consumption  of  alcohol and the impact of alcohol outlets on the
health and  safety  of  neighboring  residents  and  the  general
population.   Through  the  establishment  of  a Citywide Alcohol
Policy,  the  Planning  Commission  and  staff  are  recommending
several amendments to the alcohol section of the Zoning Ordinance
to ensure that alcohol outlets  are  operated  in  a  manner  not
detrimental  to surrounding residents.  Furthermore, the proposed
alcohol license is for an establishment where  alcohol  would  be
ancillary  to  the primary use as an entertainment and restaurant
facility.

Conclusion

The  RVC  District  standards  of  the  Zoning  Ordinance  permit
restaurant  and  entertainment  uses  on  the  Pier.  The sale of
alcohol would be ancillary to the primary use of the premises  as
a  restaurant  and entertainment venue.  Previous Council actions
indicated a policy of a case by  case  decision  on  new  alcohol
permits  prior to the adoption of a Pier Master Plan.  In staff's
view, no new evidence has been presented which would  lead  staff
to recommend approval the appeal.

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 deny  the  appeal
and  approve  Conditional  Use  Permit 92-026 and Reduced Parking
Permit 92-002 with the findings and conditions contained  in  the
Planning Commission Statement of Official Action (Attachment C).

Prepared by:  D. Kenyon Webster, Planning Manager
              David Martin, Associate Planner
              Planning Division
              Land Use and Transportation Management Department

Attachments:  A. Appeal form dated 09/01/92
              B. Appeal form dated 09/09/92
              C. Planning Commission Statement of Official Action