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CC 2018-04-10_09i Resolution Denying CUP Fast Food Restaurant    MEMORANDUM TO: CITY COUNCIL FROM: TERESA McCLISH, COMMUNITY DEVELOPMENT DIRECTOR BY: MATTHEW DOWNING, PLANNING MANAGER SUBJECT: CONSIDERATION OF A RESOLUTION DENYING WITH PREJUDICE CONDITIONAL USE PERMIT 16-008; CONSTRUCTION OF AN APPROXIMATELY 2,650 SQUARE-FOOT FAST-FOOD RESTAURANT WITH DRIVE-THRU; LOCATION – 727 EL CAMINO REAL (WESTERN CORNER OF EL CAMINO REAL, FAEH AVENUE, AND BELL STREET); APPLICANT – ELA FOODS, INC.; REPRESENTATIVE – OASIS ASSOCIATES DATE: APRIL 10, 2018 SUMMARY OF ACTION: Adoption of the proposed Resolution would formally deny the proposed project in accordance with the tentative action taken and as directed by the City Council at the March 27, 2018 City Council meeting. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Denial of the proposed project would result in the City not being able to collect approximately $10,000 to $20,000 per year in sales tax revenue. RECOMMENDATION: It is recommended the City Council adopt a Resolution denying with prejudice Conditional Use Permit 16-008. BACKGROUND: At the regular meeting of March 27, 2018, the City Council reviewed the proposed project, considered all the facts, presentation by staff and the developer’s representative, and public testimony from the twelve (12) public speakers, took tentative action to deny the proposed project, and directed staff to return with a resolution with appropriate findings for denial of the project based upon inconsistencies with the General Plan resulting from traffic and intensity of the drive-thru use, as well as site and road configurations that would be further impacted by the intensity of the drive-thru use. ANALYSIS OF ISSUES: The prepared Resolution has been developed with findings for denial of the proposed project with prejudice, consistent with concerns of the Council. Findings that could not Item 9.i. - Page 1 CITY COUNCIL CONSIDERATION OF A RESOLUTION DENYING WITH PREJUDICE CONDITIONAL USE PERMIT 16-008 APRIL 10, 2018 PAGE 2   be made in the affirmative are indicated in bold italics in the attached Resolution. Generally, the Council could not make findings in the affirmative based on the impact of the proposed project on the residential neighborhood in the immediate vicinity. In accordance with Municipal Code Section 16.12.120, the denial of the project with prejudice does not allow the applicant to reapply for the same or substantially the same use on the same site until April 10, 2019. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt the attached Resolution denying the proposed project; 2. Modify as appropriate and adopt the attached Resolution denying the proposed project; 3. Do not adopt the attached Resolution, request concurrence from the applicant to reopen the public hearing for a future date after providing adequate notice; or 4. Provide direction to staff. ADVANTAGES: Adoption of the Resolution would deny the proposed project, consistent with the tentative action taken by the Council on March 27, 2018. DISADVANTAGES: None identified. ENVIRONMENTAL REVIEW: In accordance with the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the Arroyo Grande Procedures for the Implementation of CEQA, staff has determined that adopting the prepared Resolution is exempt from environmental review in accordance with Sections 15061(b)(4) and 15270(a) of the CEQA Guidelines that states CEQA does not apply to projects which a public agency rejects or disapproves. PUBLIC NOTIFICATION AND COMMENT: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Item 9.i. - Page 2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DENYING WITH PREJUDICE CONDITIONAL USE PERMIT 16-008; LOCATED AT 727 EL CAMINO REAL; APPLIED FOR BY ELA FOODS, INC. WHEREAS, the project site is currently vacant, located at 727 El Camino Real, and zoned Highway Mixed-Use (HMU); and WHEREAS, the applicant has filed Lot Merger 16-001 and Conditional Use Permit 16-008 for the construction of an approximately 2,650 square foot fast-food restaurant with drive- thru and associated site improvements; and WHEREAS, the Architectural Review Committee considered the project on June 19, 2017 and recommended approval with conditions; and WHEREAS, the Traffic Commission considered the project on August 14, 2017 and September 18, 2017 and recommended approval with conditions; and WHEREAS, the Planning Commission considered the project on October 17, 2017 and February 6, 2018 and recommended approval with conditions; 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 reviewed the draft Mitigated Negative Declaration; and WHEREAS, the City Council reviewed the project at a duly noticed public hearing on March 27, 2018, and considered all written evidence and oral testimony; and WHEREAS, the City Council tentatively denied the proposed project and directed staff to return with appropriate findings for denial; and WHEREAS, the City Council finds, after due study, deliberation and public hearing, the following circumstances exist: Lot Merger Findings: 1. The lot merger is in compliance with the Subdivision Map Act. 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. Item 9.i. - Page 3 RESOLUTION NO. PAGE 2 The proposed fast food restaurant with drive-thru is inconsistent with Policies LU5-6, LU5-8, and ED5 of the General Plan. This inconsistency is due to the deleterious effects the proposed use would have on the adjacent residential neighborhood, which is a result, in part, of traffic from the uniquely shaped site and the design of required secondary access leading to necessary restrictions on the adjacent circulation system. The deleterious effects additionally result from noise from the proposed use being equivalent to that of a diesel train adjacent to the residential neighborhood and intensity of the drive-thru use conflicting with the adjacent neighborhood. Lastly, the proposed use is inconsistent with the General Plan due to the loss of commercial continuity of service and retail business sectors of the City as a result of primarily freeway serving use. 2. The proposed use would not impair the integrity and character of the district in which it is to be established or located. The proposed use fast-food restaurant with drive-thru is proposed on a vacant commercial parcel zoned HMU located in convenient proximity to US Highway 101 and would not impair the integrity of the HMU district due to the intent of the district to provide areas for a variety of visitor-serving and auto-related uses in areas convenient to both freeway traffic ad vehicles or pedestrians, including restaurants. 3. The site is suitable for the type and intensity of use or development that is proposed. The site and adjacent residential neighborhood are not suitable for the intensity of use proposed due to the shape of the site for the proposed use, which requires unique implementation of the requirement for secondary access that affects the existing circulation system and requires additional modifications to the circulation system to achieve compatibility. The site is also located in close proximity to an existing residential neighborhood and the potential noise generated from the proposed use, which is equivalent to that of a diesel train, is not a suitable intensity of use for the site, as it would have deleterious effects on the area. 4. There are adequate provisions for water, sanitation, and public utilities and services to ensure public health and safety. The provisions for water, sanitation, and public utilities were examined during processing of the entitlement and it was determined that adequate public services will be available for the proposed project and will not result in substantially adverse impacts. 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 proposed use would be detrimental to the public health, safety, and welfare, particularly in the immediately adjacent residential Item 9.i. - Page 4 RESOLUTION NO. PAGE 3 neighborhood, due to site and road configurations that would necessitate unique implementation of the requirement for secondary access that affects the existing circulation system, the impact of the intensity of the drive-thru fast food restaurant in the proposed configuration, and the potential noise generated from the proposed use equivalent to that of a diesel train. NOW, THEREFORE, BE IT RESOLVED that, based upon the foregoing findings, the City Council of the City of Arroyo Grande hereby denies with prejudice Conditional Use Permit 16-008. 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 10th day of April, 2018 Item 9.i. - Page 5 RESOLUTION NO. PAGE 4 ________________________________________ JIM HILL, MAYOR ATTEST: ________________________________________ KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: ________________________________________ JAMES A. BERGMAN, CITY MANAGER APPROVED AS TO FORM: ________________________________________ HEATHER K. WHITHAM, CITY ATTORNEY Item 9.i. - Page 6