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CC 2016-02-09_10a CUP Starbucks Coffee Company MEMORANDUM TO: CITY COUNCIL FROM: TERESA McCLISH, COMMUNITY DEVELOPMENT DIRECTOR BY: MATTHEW DOWNING. ASSOCIATE PLANNER SUBJECT: CONSIDERATION OF CONDITIONAL USE PERMIT 15-010; INCIDENTAL ON-SITE SALE OF BEER AND WINE WITH ASSOCIATED ARCHITECTURAL MODIFICATIONS; LOCATION - 924 WEST BRANCH STREET; APPLICANT - STARBUCKS COFFEE COMPANY; REPRESENTATIVE - SPENCER REGNERY, GPA, INC. DATE: FEBRUARY 9, 2016 RECOMMENDATION: The Planning Commission recommends the City Council adopt a Resolution approving Conditional Use Permit 15-010 for the incidental on-site sale of beer and wine with associated architectural modifications at Starbucks located at 924 West Branch Street. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Approval of the proposed project could see an increase in local sales tax revenue associated with increased afternoon business at the existing business. This item is related to the City's Economic Development efforts contained within the Critical Needs Action Plan. BACKGROUND: Location SUBJECT PROPERTY Item 10.a. - Page 1 CITY COUNCIL CONSIDERATION OF CONDITIONAL USE PERMIT 15-010 FEBRUARY 9, 2016 PAGE 2 The subject property is located in the Five Cities Center (the "Center") and is previously developed. The architecture of the development is a traditional Mediterranean and Spanish style. Materials used in the center are stucco, dimensional trims, ceramic tiles, and variegated clay roof tiles. The applicant has submitted an application for a conditional use permit to add incidental on-site beer and wine sales to the existing Starbucks location in the Center. As part of the request, the applicant is proposing to install a new, three-foot, six-inch (3' 6") fixed guardrail along the southern frontage of the business. Staff Advisory Committee The Staff Advisory Committee (SAC) reviewed the proposed project on December 9, 2015. At that time, the SAC discussed various aspects of the project, including location of the guardrail, Americans with Disabilities Act (ADA) access, and the location of the use in relation to the remainder of the Center. The SAC was in support of the project and developed conditions of approval included in the attached resolution. Architectural Review Committee The Architectural Review Committee (ARC) reviewed the proposed guardrail installation on December 21, 2015 (Attachment 1). The ARC discussed the size and design of the outdoor seating area, support for increasing outdoor activity within the Center, design of the proposed guardrail and materials, and ADA clearance. The ARC was in support of the project as proposed. Planning Commission The Planning Commission reviewed the proposed project on January 5, 2016 (Attachment 2). The Planning Commission discussed several components of the project, including delaying the time for alcohol sales from 12:00 pm to 4:00 pm to avoid conflicts with influxes of children after school, the potential for an evaluation of the use after a specified period of time to determine how the use is impacting the surrounding area and community youth, questioned why the use was being proposed at the Center location instead of a different location in the City, and that there are few places in the community for children to congregate that are alcohol free. The Planning Commission voted 3-2 to adopt a Resolution recommending the City Council approve the project as proposed. ANALYSIS OF ISSUES: Project Description The applicant has submitted an application for a conditional use permit for the incidental, on-site sale and consumption of beer and wine at the Starbucks Coffee located in the Five Cities Center. Beer and wine sales are proposed from 12:00 pm to close, which is 10:30 pm Sunday through Thursday, and 11:30 pm Friday and Saturday. Beer and wine would be sold in individual servings for consumption by the customer on the Starbucks premises. Off-site consumption would not be permitted by the applicant. As an additional part of the request, the applicant proposes to install a fixed guardrail on Item 10.a. - Page 2 CITY COUNCIL CONSIDERATION OF CONDITIONAL USE PERMIT 15-010 FEBRUARY 9, 2016 PAGE 3 the south side of the building to comply with Department of Alcoholic Beverage Control (ABC) requirements. Municipal Code The subject property is zoned Regional Commercial. Alcoholic beverage sales are a permitted use in the Regional Commercial zoning district with approval of a Conditional Use Permit. The Conditional Use Permit is intended to determine whether the proposed use should be permitted, by weighing the public need for and benefit to be derived from the use against any adverse impact it may cause. Neighboring Jurisdictions Several neighboring jurisdictions were contacted to inquire about the sale of beer and wine at Starbucks franchises in those locations. The City of San Luis Obispo indicated that while they had not received an application for Starbucks to sell beer and wine, coffee shops are considered restaurants and restaurants do not require permits for the sale of beer and wine. The Cities of Pismo Beach and Atascadero also indicated that no applications had been received; however, Atascadero indicated there are several other coffee shops within the city that also sell beer and wine. Efforts made to contact the City of Paso Robles were unsuccessful. Guardrail Design The guardrail is proposed to be three-feet, six-inches (3’ 6”) in height located along the southern frontage of the existing Starbucks location. The guardrail is proposed to be black metal with the lower two-thirds semi-closed with a heavy gauge wire and the upper third remaining open. The top of the guardrail is proposed to be wood, treated in a light stain and maintained on a regular basis as part of Starbucks’ maintenance program. The purpose of the railing is to comply with ABC requirements for outdoor consumption of alcoholic beverages, if the proposed use for incidental beer and wine sales is approved. The total outdoor seating area will be 688 square feet, with access to the public from the west and inside the store. The proposed guardrail will narrow the public sidewalk area; however, minimum clearances for ADA are required to be maintained around the seating area. Alcohol Sale Start Time During the Planning Commission’s consideration of the proposed project, Commissioners discussed the possibility of pushing back the time when alcohol is sold from 12:00 pm to 4:00 pm. The applicant indicated that they had requested the 12:00 pm start time for those customers interested in having an alcoholic drink with lunch. However, the Planning Commission determined that requiring the later start time for the sale of alcohol was not preferable due to the fact that the Starbucks is located adjacent to the movie theater. In addition, the Planning Commission did not want to restrict customers of the Starbuck’s options for alcohol to after 4:00 pm on weekends in particular. Item 10.a. - Page 3 CITY COUNCIL CONSIDERATION OF CONDITIONAL USE PERMIT 15-010 FEBRUARY 9, 2016 PAGE 4 ALTERNATIVES: The following alternatives are provided for the Planning Commission’s consideration: • Adopt the attached Resolution approving Conditional Use Permit 15-010; • Modify and adopt the attached Resolution approving Conditional Use Permit 15- 010; • Do not adopt the attached Resolution, provide specific findings, and direct staff to return with a Resolution denying Conditional Use Permit 15-010; or • Provide direction to staff. ADVANTAGES: The proposed use would add an additional choice of beverages to customers at the business, as well as provide for a potential increase in sales. The proposed use would also be consistent with beer and wine sales in the adjacent restaurant. DISADVANTAGES: The proposed project would add alcohol sales to an area heavily traveled by minors. However, the applicant indicates its staff is trained in the legal requirements related to the sale of alcohol and all actions will be taken to prevent the sale of alcohol to underage individuals. ENVIRONMENTAL REVIEW: The project has been reviewed in accordance with the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the Arroyo Grande Procedures for the Implementation of CEQA and determined that the project is categorically exempt per Section 15301(a) of the CEQA Guidelines regarding existing facilities. PUBLIC NOTIFICATION AND COMMENTS: A notice of public hearing was mailed to all property owners within 300' of the property, published in The Tribune, posted at City Hall and on the City's website, and posted at the Site on Friday, January 29, 2016. The Agenda was posted in front of City Hall on Thursday, February 4, 2016. The Agenda and report were posted on the City's website on Friday, February 5, 2016. One (1) written comment has been received in opposition to the project citing concerns regarding minors and the lack of alcohol free places for minors to congregate (Attachment 3), as well as one (1) verbal comment regarding concerns over the high number of alcohol related vehicular incidents in San Luis Obispo County. Attachment: 1. Minutes of the December 21, 2015 Architectural Review Committee Meeting 2. Minutes of the January 5, 2016 Planning Commission Meeting 3. Comment letter from Ann Lundeen 4. Project plans Item 10.a. - Page 4 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING CONDITIONAL USE PERMIT 15-010; LOCATED AT 924 WEST BRANCH STREET; APPLIED FOR BY STARBUCKS COFFEE COMPANY WHEREAS, the project site is located in the Five Cities Center and part of the Regional Commercial (RC) zoning district; and WHEREAS, the applicant has applied for Conditional Use Permit 15-010 for the incidental, on-site sale of beer and wine at an existing Starbucks Coffee location; and WHEREAS, the Planning Commission of the City of Arroyo Grande reviewed the project at a duly noticed public hearing on January 5, 2016 and recommended the City Council approve the project; and WHEREAS, the City Council has reviewed this project in compliance with the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the Arroyo Grande Rules and Procedures for Implementation of CEQA and has determined the project is categorically exempt per Section 15301(a) of the CEQA Guidelines regarding existing facilities; and WHEREAS, the City Council of the City of Arroyo Grande has reviewed the project at a duly noticed public hearing on February 9, 2016; and WHEREAS, the City Council finds, after due study, deliberation and public hearing, the following circumstances exist: Conditional Use Permit Findings: 1. The proposed use is permitted within the subject district pursuant to the provisions of this section and complies with all the applicable provisions of this title, the goals, and objectives of the Arroyo Grande General Plan, and the development policies and standards of the City. Alcoholic beverage sales are an allowed use in the Regional Commercial (RC) zoning district following approval of a conditional use permit per Section 16.36.030 of the Municipal Code. 2. The proposed use would not impair the integrity and character of the district in which it is to be established or located. The incidental sale of alcoholic beverages at the existing coffee shop would not impair the integrity and character of the RC district in light of the stated purpose of the RC zoning district per Municipal Code Subsection 16.36.020(I) and conditions of approval developed for the project to help ensure integrity and character are maintained. Item 10.a. - Page 5 RESOLUTION NO. PAGE 2 3. The site is suitable for the type and intensity of use or development that is proposed. The site contains an existing coffee shop that is suitable for the incidental sale of beer and wine. Conditions of approval have been developed for the project to ensure the alcoholic beverage sales do not result in any adverse impacts on adjacent land uses. 4. There are adequate provisions for water, sanitation, and public utilities and services to ensure public health and safety. The incidental sale of beer and wine is not anticipated to require additional provisions for water, sanitation, and public utilities and services. Therefore, there are adequate provisions for all utilities and services necessary to ensure public health and safety. 5. The proposed use will not be detrimental to the public health, safety or welfare or materially injurious to properties and improvements in the vicinity. The incidental sale of beer and wine will not be detrimental to the public health, safety or welfare due to conditions of approval developed for the project to ensure public health, safety and welfare. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby approves Conditional Use Permit 15-010, as presented to the City Council on February 9, 2016 and shown in Exhibit “B”, attached hereto and incorporated herein by this reference as though set forth in full, with the above findings and subject to the conditions as set forth in Exhibit “A”, attached hereto and incorporated herein by this reference. On motion by Council Member _______, seconded by Council Member _______, and by the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was adopted this 9th day of February, 2016. Item 10.a. - Page 6 RESOLUTION NO. PAGE 3 ___________________________________ JIM HILL, MAYOR ATTEST: ___________________________________ KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: ___________________________________ DIANNE THOMPSON, CITY MANAGER APPROVED AS TO FORM: ___________________________________ HEATHER K. WHITHAM, CITY ATTORNEY Item 10.a. - Page 7 RESOLUTION NO. PAGE 4 EXHIBIT ‘A’ CONDITIONS OF APPROVAL CONDITIONAL USE PERMIT CASE NO. 15-010 924 WEST BRANCH STREET This approval authorizes the sale of beer and wine for onsite consumption at the Starbucks Coffee located at 924 West Branch Street, with appropriate Alcoholic Beverage Control (ABC) permits. COMMUNITY DEVELOPMENT DEPARTMENT PLANNING DIVISION GENERAL CONDITIONS 1. The applicant shall ascertain and comply with all Federal, State, County and City requirements as are applicable to this project. 2. The applicant shall comply with all conditions of approval for Conditional Use Permit 15-010. 3. This application shall automatically expire on February 9, 2018 unless a building permit is issued or an extension is granted pursuant to Section 16.12.140 of the Development Code. 4. The project shall occur in substantial conformance with the plans presented to the City Council at the meeting of February 9, 2016 and marked Exhibit “B”. 5. The applicant shall agree to indemnify and defend at his/her sole expense any action brought against the City, its present or former agents, officers, or employees because of the issuance of said approval, or in any way relating to the implementation thereof, or in the alternative, to relinquish such approval. The applicant shall reimburse the City, its agents, officers, or employees, for any court costs and attorney's fees which the City, its agents, officers or employees may be required by a court to pay as a result of such action. The City may, at its sole discretion, participate at its own expense in the defense of any such action but such participation shall not relieve applicant of his/her obligations under this condition. 6. A copy of these conditions and mitigation measures shall be incorporated into all construction documents. 7. All conditions of approval from Resolution No. 3157 and subsequent approvals shall remain in full force and effect, in addition to the conditions of approval contained herein. Item 10.a. - Page 8 RESOLUTION NO. PAGE 5 BUILDING AND LIFE SAFETY DIVISION AND FIRE DEPARTMENT CONDITIONS CBC/CFC 8. The project shall comply with the most recent editions of the California State Fire and Building Codes and the International Building and Fire Codes as adopted by the City of Arroyo Grande. FIRE SPRINKLER 9. All buildings must be fully sprinklered per Building and Fire Department guidelines and per the California Fire Code. Provide evidence that the fire protection provided under the canopy area is adequate for the proposed project. ENGINEERING DIVISION CONDITIONS GENERAL CONDITIONS 10. The development shall provide safe accessible paths of travel, in accordance with Americans with Disabilities Act requirements. POLICE DEPARTMENT CONDITIONS 11. Ensure all servers are qualified to serve alcoholic beverages. Item 10.a. - Page 9 (; + , % , 7   %  Item 10.a. - Page 10 Item 10.a. - Page 11 Item 10.a. - Page 12 Minutes: ARC PAGE 2 Monday, December 21, 2015 6.b. CONSIDERATION OF CONDITIONAL USE PERMIT 15-010; INCIDENTAL ON-SITE SALE OF BEER AND WINE WITH ASSOCIATED ARCHITECTURAL MODIFICATIONS; LOCATION – 924 WEST BRANCH STREET; APPLICANT – STARBUCKS COFFEE COMPANY; REPRESENTATIVE – SPENCER REGNERY, GPA INC. (DOWNING) Associate Planner Downing presented the staff report recommending the Architectural Review Committee review the proposed project and make a recommendation to the Planning Commission. Associate Planner Downing responded to questions from the Committee. Spencer Regnery, representative, spoke in support of the proposed project and responded to questions from the Committee. The Committee provided comments in support of the project while ensuring ADA access was maintained. Bruce Berlin made a motion, seconded by Michael Peachey, recommending approval of the project as submitted to the Planning Commission, so long as ADA clearance is maintained on the sidewalk between the new guardrail and vehicular overhang. The motion passed on a 4-0 voice vote. 7.DISCUSSION ITEMS 7.a. TENTATIVE MEETING SCHEDULE FOR JANUARY AND FEBRUARY 2016 (DOWNING) Associate Planner Downing presented the staff report regarding tentative meeting dates for January and February 2016 due to holidays during those months. It was the consensus of the Committee that quorums would be available for all tentative meeting dates. No formal action was necessary. 8.COMMITTEE COMMUNICATIONS None. 9.STAFF COMMUNICATIONS Associate Planner Downing provided information on the City’s closure schedule for the winter holidays. 10.ADJOURNMENT The meeting was adjourned at 4:30 pm to a special meeting on January 11, 2016 at 2:30 pm. ATTACHMENT 1 Item 10.a. - Page 13 ACTION MINUTES REGULAR MEETING OF THE PLANNING COMMISSION TUESDAY, JANUARY 5, 2016 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1.CALL TO ORDER Chair George called the Regular Planning Commission meeting to order at 6:00 p.m. 2.ROLL CALL Planning Commission: Commissioners John Keen, Glenn Martin, Terry Fowler-Payne, John Mack, and Lan George were present. Staff Present: Community Development Director Teresa McClish, Associate Planner Matt Downing, and Secretary Debbie Weichinger were present. 3.FLAG SALUTE Commissioner Martin led the flag salute. 4.AGENDA REVIEW None 5.COMMUNITY COMMENTS AND SUGGESTIONS None 6.WRITTEN COMMUNICATIONS None 7.CONSENT AGENDA 7.a. Consideration of Approval of Minutes. None 8.PUBLIC HEARINGS 8.a. CONSIDERATION OF CONDITIONAL USE PERMIT 15-010; INCIDENTAL ON-SITE SALE OF BEER AND WINE WITH ASSOCIATED ARCHITECTURAL MODIFICATIONS; LOCATION – 924 WEST BRANCH STREET; APPLICANT –STARBUCKSCOFFEE COMPANY; REPRESENTATIVE – SPENCER REGNERY, GPA, INC. Associate Planner Downing presented the staff report and recommended that the Planning Commission review the proposed project and make a recommendation to the City Council. Associate Planner Downing responded to questions from the Commission. Spencer Regnery, applicant representative, presented the proposed project and responded to questions from the Commission on the proposed project. Chair George opened the public hearing. Hearing no public comments, Chair George closed the public hearing. Commissioner Martin spoke in support of the project and suggested adding a condition that the sale of alcohol start at 4:00 pm instead of 12:00 pm. Commissioner Fowler-Payne suggested that if the proposed project is approved, that it come back for an evaluation of how it affects the surrounding area and community youth. ATTACHMENT 2 Item 10.a. - Page 14 PLANNING COMMISSION PAGE 2 MINUTES JANUARY 5, 2016 Community Development Director McClish stated if there is a complaint, Neighborhood Services would review the complaint. Connie Blankenship, Starbucks District Manager, addressed the revenue and stated most of the revenue comes from food. Commissioners Keen and Mack spoke in support of the proposed project. Commissioner George opposed the location as it should be where it fits best for the community and not because the building is being renovated, and expressed concern with children under 21 as this is where a lot of youth hang out. Action: Commissioner Keen moved to adopt a resolution entitled “A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ARROYO GRANDE RECOMMENDING THE CITY COUNCIL APPROVE CONDITIONAL USE PERMIT 15-010; LOCATED AT 924 WEST BRANCH STREET; APPLIED FOR BY STARBUCKS COFFEE COMPANY”. Commissioner Mack seconded and the motion passed on the following roll call vote: AYES: Keen, Mack, Martin NOES: Fowler-Payne, George ABSENT: None 9. NON-PUBLIC HEARING ITEM None 10. NOTICE OF ADMINISTRATIVE DECISIONS SINCE DECEMBER 15, 2015 None 11. COMMISSION COMMUNICATIONS In response to Commissioner Keen’s question, Community Development Director McClish stated that the schedule for Planning Commission member attendance to Architectural Review Committee and Historical Resources Committee meetings will be distributed at the next Commission meeting. 12. STAFF COMMUNICATIONS Community Development Director McClish gave an update on the Bridge Street bridge project. In response to Commissioner Mack’s question, Community Development Director McClish stated that staff is making progress on the parking standards request and will distribute a portion of the work effort at the next meeting. Staff will look to include accommodation for electric cars. 13. ADJOURNMENT On motion by Commissioner Keen, seconded by Commissioner George and unanimously carried, the meeting adjourned 6:46 p.m. ATTEST: DEBBIE WEICHINGER LAN GEORGE, CHAIR SECRETARY TO THE PLANNING COMMISSION (Approved PC Meeting January 19, 2016) Item 10.a. - Page 15 1 Matt Downing From:Ann Sent:Monday, January 11, 2016 11:03 AM To:Matt Downing Subject:Starbucks To Whom it May Concern   I would like to state my concern with regards to the opening of Starbucks to wine and beer  sales. Now do not get me wrong, I am not against alcohol and enjoy going to local  establishments for my adult beverage. The problem I am having is for our kids!  In our area  kids have no real place to hang out, to study, to enjoy an atmosphere that does not have the  influence of alcohol. Starbucks has been the place they like to gather and study. It has been a  safe environment we have been able to drop them at and know they are most likely not  getting in trouble or feeling the temptations that so many other areas in their lives have.    Bottom line is I strongly believe this is not the venue for alcohol. There are other Starbucks  locations this might be feasible but in our small town this is not a good solution.  In looking at  a one mile radius of that shopping area, you can consume wine or beer at about 7 other  establishments including Chili’s that is across the street and won’t this take away from their  revenues?  When calling the Starbucks main office, I asked them “why are you choosing this  location”, their response was “because there is a need”.  With all of these other  establishments I do not see there being a need.  My question to the city, is it being pushed  because the city gets a cut in the taxes of the sales?    As one of the concerned citizens I hope that this is not being driven by money and that the city  decision makers can look at the big picture of all who it can effect negatively and rethink their  decisions.    Thank you for your time.   Sincerely,   Ann Lundeen   ATTACHMENT 3 Item 10.a. - Page 16 AT T A C H M E N T 4 Item 10.a. - Page 17 Item 10.a. - Page 18 Item 10.a. - Page 19 THIS PAGE INTENTIONALLY LEFT BLANK Item 10.a. - Page 20