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PC 2018-01-16_ 8a ACUP 17-003 Branch Hotel MEMORANDUM TO: PLANNING COMMISSION FROM: TERESA MCCLISH, DIRECTOR OF COMMUNITY DEVELOPMENT BY: MATTHEW DOWNING, PLANNING MANAGER SUBJECT: CONSIDERATION OF AMENDED CONDITIONAL USE PERMIT NO. 17-003; ADDITION OF CONFERENCE ROOM AND FITNESS ROOM AT ENTITLED HOTEL; LOCATION - 325 EAST BRANCH STREET; APPLICANT – SRK HOTELS; REPRESENTATIVE – STEVEN PUGLISI ARCHITECTS, INC. DATE: JANUARY 16, 2018 SUMMARY OF ACTION: Approval of the Amended Conditional Use Permit would modify a condition of approval for an entitled 54-room boutique hotel. Modification of the condition of approval, which currently limits the structure to a maximum of 30,000 square feet, will allow for the increase in building size to accommodate a fitness room, a bathroom, and a conference room at the hotel without an increase in the number of guest rooms. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: None. RECOMMENDATION: It is recommended that the Planning Commission adopt a Resolution approving Amended Conditional Use Permit 17-003. BACKGROUND: The property located at 325 East Branch Street is vacant, bordered by the Mason Bar building to the southwest and Tally Ho Creek to the northeast, with frontage that extends from East Branch Street to Le Point Street (Attachment 1). On February 16, 2016, the Planning Commission adopted Resolution No. 16-2244, approving the construction of a 29,380 square foot, 54 -room boutique hotel on 1.86 acres of vacant land in the Village Core Downtown (VCD) and Village Mixed-Use (VMU) zoning districts. Condition of approval #31 states: “Maximum building size shall not exceed 30,000 square feet”. As the applicant has proceeded forward with obtaining building permits for the structure, the idea was brought forward to revise the plans to include a fitness room and conference room. These facilities would be available for guests PLANNING COMMISSION CONSIDERATION OF AMENDED CONDITIONAL USE PERMIT NO. 17-003 JANUARY 16, 2018 PAGE 2 during their stays. Due to the strict building size limitation included in Condition #31, it was discussed with the applicant that the original conditional use p ermit would need to be amended in order to revise that limitation. Pre-Application On December 5, 2017, the Planning Commission considered a Pre-Application applied for by the applicant to obtain feedback on the feasibility of modifying the subject condition of approval (Attachment 2). At that time, the Planning Commission discussed the intended use of the conference room, the location of the conference room, and consideration of impacts to parking if not limited for guest use only. The Planning Commission also expressed a preference for modifying Condition of Approval #31 rather than removing the limitation altogether. No formal action was taken by the Planning Commission at that time. ANALYSIS OF ISSUES: During the processing of Conditional Use Permit 15 -007, maximum building size was discussed as it relates to the dual zoning of the property as VCD and VMU, which allow maximum building sizes of 20,000 square feet and 10,000 square feet respectively. These building sizes were combined to allow for a 30,000 square foot building to be constructed due to the property size of over 81,000 square feet when minimum lot size for the VCD and VMU are 2,500 and 5,000 square feet respectively. The intent of these limitations is to ensure sites are compatible in scale and pedestrian orientation of the Village and do not overpower small commercial sites and these property development standards are allowed to be adjusted when it can be found that site specific property development standards are needed to make a project consistent with the intent of the Municipal Code. The applicant’s request to add a fitness room and a conference room would increase the approved building size by 1,034 square feet from 29,380 square feet to 30,414. This constitutes an approximately three percent (3%) increase in building size. However, due to the strict limitation of building size to 30,000 square feet, the request cannot be approved as proposed without modifying Condition #31. The additio n of these amenities will not increase the number of guest rooms from the original entitlement and, therefore, will not increase parking requirements for the use, as the space is reserved for guests of the hotel only. Although there was previous discussion on the potential to open the conference room for public use, the applicant has determined not to move forward with those plans due to impacts associated with parking and location of the conference room for public use. ALTERNATIVES: The following alternatives are provided for the Planning Commission’s consideration: 1. Adopt the attached Resolution approving Amended Conditional Use Permit 17-003; 2. Modify and adopt the attached Resolution approving Amended Conditional Use Permit 17-003; PLANNING COMMISSION CONSIDERATION OF AMENDED CONDITIONAL USE PERMIT NO. 17-003 JANUARY 16, 2018 PAGE 3 3. Do not adopt the attached Resolution, provide specific findings, and direct staff to return with an appropriate Resolution denying Amended Conditional Use Permit 17-003; or 4. Provide direction to staff. ADVANTAGES: Amendment of the condition of approval limiting the building to 30,000 square feet will allow for the inclusion of amenities for guests of the hotel that could result in higher visitor satisfaction, which would lead to increased and/or repeat bookings. DISADVANTAGES: Amendment of the condition of approval limiting th e building to 30,000 square feet will result in the construction of a building larger than the previously established maximum building size. However, the building would be less than 500 square feet above that previously established maximum, would provide additional amenities for guests of the hotel, and will remain within all applicable development standards of the VCD and VMU zoning districts. ENVIRONMENTAL REVIEW: In compliance with the California Environmental Quality Act, the Planning Commission has previously adopted a Mitigated Negative Declaration (MND) to reduce potentially significant impacts to level of less than significance. The revised project remains within the scope of project reviewed by the MND and, therefore, no additional environmental review is required. PUBLIC NOTICE AND COMMENT: A notice of public hearing was mailed to all property owners within 300’ of the project site, was published in The Tribune, and posted at City Hall and on the City’s website on Friday, January 5, 2018. A sign announcing the public hearing was posted at the project site on Friday, January 5, 2018, in accordance with City policy. The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. At the time of report publication, no comments have been received. Attachments: 1. Location map 2. Minutes of the December 5, 2017 Planning Commission meeting 3. Project Plans RESOLUTION NO. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ARROYO GRANDE APPROVING AMENDED CONDITIONAL USE PERMIT CASE NO. 17-003; AMENDMENT TO CONDITIONAL USE PERMIT 15-007; FOR THE ADDITION OF A CONFERENCE ROOM AND FITNESS ROOM AT AN ENTITLED HOTEL; LOCATED AT 325 E. BRANCH STREET; APPLIED FOR BY SRK HOTELS, INC. WHEREAS, on February 16, 2016, the Planning Commission approved Conditional Use Permit 15-007 to authorize the construction of a 29,380 square foot, 54-room boutique hotel on 1.86 acres of vacant land in the Village Core Downtown and Village Mixed-Use zoning districts; and WHEREAS, Planning Commission Resolution No. 16-2244 included Condition of Approval #31, which limits the maximum building size of the hotel to 30,000 square feet; and WHEREAS, the applicant and hotel operator desire to add a conference room and fitness room as an amenity for guests of the hotel, increasing the building size to approximately 30,500 square-feet ; and WHEREAS, the applicant processed Pre-Application No. 17-004 and obtained feedback from the Planning Commission regarding the viability of modifying Condition of Approval #31; and WHEREAS, the applicant has submitted an application to formally amend Conditional Use Permit 15-007 to modify Condition of Approval #31 and allow a maximum building size greater than 30,000 square feet; and WHEREAS, the Planning Commission has reviewed the project in compliance with the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the Arroyo Grande Rules and Procedures for the Implementation of CEQA and determined that the previously adopted Mitigated Negative Declaration prepared for the project is adequate to mitigate the project; and WHEREAS, the Planning Commission of the City of Arroyo Grande has reviewed the project at a duly noticed public hearing on January 16, 2018; and WHEREAS, the Planning Commission 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 RESOLUTION NO. PAGE 2 this title, the goals, and objectives of the Arroyo Grande General Plan, and the development policies and standards of the City. Hotels are permitted within the VCD and VMU zoning districts and permitted the hotel to exceed the previously established maximum building size of 30,000 square feet is acceptable due to the large size of the parcel (1.86 acres), which is not typical for parcels in the VCD and VMU zoning districts. 2. The proposed use would not impair the integrity and character of the district in which it is to be established or located. Allowing the entitled hotel to exceed the previously established max imum building size of 30,000 square feet will not impair the integrity and character of the VCD and VMU districts due to the large area and depth of the parcel, which better allow for a building larger than 30,000 square feet while maintaining compatibility of scale and pedestrian orientation in the Village. 3. The site is suitable for the type and intensity of use or development that is proposed. The site is suitable for the development of a building larger than the previously established maximum building size of 30,000 square feet due to the large area and depth of the lot, which is not typical for parcels in the VCD and VMU zoning districts. 4. There are adequate provisions for water, sanitation, and public utilities and services to ensure public health and safety. There are adequate provisions for all utilities and services necessary to ensure public health and safety for the sale of beer and wine for off -site consumption. 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 will not be detrimental to the public health, safety or welfare, nor will it be materially injurious to properties or improvements in the vicinity as it will comply with applicable codes and standards of the Municipal Code and in accordance with conditions of approval specifically developed for the project. 6. Site-specific property development standards are needed to make the project consistent with the intent of these regulations. RESOLUTION NO. PAGE 3 A maximum building size of 31,000 square feet on a 1.86 acre site continues to ensure that the development is compatible in scale and pedestrian orientation of the Village, does not overpower small commercial sites, and does not result in underu tilization of a prime downtown commercial site. NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Arroyo Grande hereby approves Amended Conditional Use Permit 17-003, as presented to the Planning Commission on January 16, 2018 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 Commissioner _________, seconded by Commissioner _________, and by the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was adopted this 16th day of January, 2018. RESOLUTION NO. PAGE 4 ___________________________ GLENN MARTIN, CHAIR ATTEST: _______________________________ DEBBIE WEICHINGER SECRETARY TO THE COMMISSION AS TO CONTENT: _______________________________ TERESA MCCLISH COMMUNITY DEVELOPMENT DIRECTOR RESOLUTION NO. PAGE 5 EXHIBIT “A” CONDITIONS OF APPROVAL AMENDED CONDITIONAL USE PERMIT CASE NO. 17-003 325 E. BRANCH STREET This approval authorizes the increase in maximum building size for the 54-room boutique hotel entitled by Conditional Use Permit 15-007 from 30,000 square feet to 31,000 square feet for the addition of a conference room and fitness room for use by hotel guests. COMMUNITY DEVELOPMENT DEPARTMENT 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 Amended Conditional Use Permit Case No. 17-003. 3. All applicable conditions of approval for Conditional Use Permit Case No. 15-007, approved by Planning Commission Resolution No. 16-2244, shall remain in full force and effect. 4. The use shall occur in substantial conformance with the project description presented to the Planning Commission at the meeting of January 16, 2018. 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. Condition of Approval #31 of Planning Commission Resolution No. 16-2244 is hereby amended to read: “Maximum building size shall not exceed 31,000 square feet”. 1310H '15 HJN\ll:lfJ 13l0H ·15 HJNlil:lfl [' '-"="'=~I :-c,,,,;r==": SN01l't/A313 HOIH31X3 '""' ATTACHMENT 1 Subject Property PLANNING COMMISSION PAGE 3 MINUTES DECEMBER 5, 2017 for himself and his neighbors. In response to Commissioner Mack, Mr. Irons said the deck will be used quietly (no parties) with his friends and relatives. Mr. Carlson responded to Commission questions regarding the height and highest point of the guardrail; length of time as a contractor in this area; resident at 1211 Linda Drive’s view being blocked. Hearing no further speakers, Chair Martin closed the public hearing. Commissioner Schiro provided the following: said this is a small impact to the view and agreed with Staff’s conclusion with denying the appeal. Commissioner George provided the following: said the deck was in before the new Guidelines and spoke in support of the appeal. Commissioner Fowler-Payne provided the following: stated she cannot support the appeal. Commissioner Mack provided the following: stated there is more work for the Commission to do on the Guidelines, particularly in regards to sloped areas; privacy is being ignored; the project should not have proceeded without a permit; and is opposed to a split rail; and in support of the appeal. Commissioner Martin provided the following: supports the solid wall, open rail look and light blue/grey tones; and is not in support of the appeal. Action: Commissioner Schiro moved to adopt a resolution entitled “A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ARROYO GRANDE DENYING APPEAL CASE NO. 17-003 AND APPROVING VIEWSHED REVIEW 17-009; LOCATED AT 1211 LINDA DRIVE; APPLIED FOR BY PIT IRONS; APPEALED BY NANCY WALSH”, as modified that the west guardrail shall be changed from a split rail design to a solid design. Commissioner Fowler-Payne seconded the motion. The motion passed on the following roll call vote: AYES: Schiro, Fowler-Payne, Martin NOES: George, Mack ABSENT: None Commissioner Schiro stepped down from the dais due to having a conflict on item 9.a. 9. NON-PUBLIC HEARING ITEM 9.a. CONSIDERATION OF PRE-APPLICATION NO. 17-004; MODIFICATION OF A CONDITION OF APPROVAL FOR AN ENTITLED 54-ROOM BOUTIQUE HOTEL FOR THE ADDITIONAL CONSTRUCTION OF FITNESS AND CONFERENCE ROOMS; LOCATION 325 EAST BRANCH STREET; APPLICANT SRK HOTELS; REPRESENTATIVE – STEVEN PUGLISI ARCHITECTS Planning Manager Downing presented the staff report and recommended the Planning Commission review the proposal and provide comments to the applicant. Michael Dammeyer, architect, stated there was a change in ownership of the hotel and the new owner wants a meeting space and fitness center. The owner is open to working with the City for use of the conference room. ATTACHMENT 2 PLANNING COMMISSION PAGE 4 MINUTES DECEMBER 5, 2017 Chair Martin opened the meeting for public comment: John Keen said that if you want the public to use the conference room, it needs to be moved to the front and from past experience he feels that the fitness room is under-utilized. The applicant was provided the following comments: Commissioner George asked for clarification of the use of the conference room. Mr. Dammeyer reiterated the room will be used as a conference room. Commissioner Fowler-Payne supports having the conference room in the back; supports opening up to the public but is concerned with parking. Commissioner Mack said he is supportive of the use but suggested that the conference room be located in the front by the lobby and not at the back of the building. Commissioner Martin spoke in support of the proposal. Chair Martin closed the public comment period. 10. NOTICE OF ADMINISTRATIVE DECISIONS SINCE NOVEMBER 21, 2017 This is a notice of administrative decision for Minor Use Permits, including any approvals, denials or referrals by the Community Development Director. An administrative decision must be appealed or called up for review by the Planning Commission by a majority vote. Case No. Applicant Address Description Action Planner TUP 17-021 Rabobank 1026 East Grand Avenue Placement of a 27-foot tall artificial Christmas tree A C. Turner TUP 17-022 Big Country Bar B Que 1452 East Grand Avenue Fundraiser barbecue in an existing private parking lot A C. Turner 11. COMMISSION COMMUNICATIONS In response to Commissioner Fowler-Payne, Planning Manager Downing gave a report on Camp Arroyo Grande and said the new owner is setting up a website for the public. 12. STAFF COMMUNICATIONS Planning Manager Downing gave an update on the East Grand Avenue Master Plan and will get Commissioners a zoning map if they indicated they preferred a hard copy. 13. ADJOURNMENT The meeting adjourned at 8:08 p.m. ATTEST: DEBBIE WEICHINGER GLENN MARTIN, CHAIR SECRETARY TO THE PLANNING COMMISSION (Approved at PC Meeting December 19, 2017) ATTACHMENT 3 DIRECTORY CONTRACTOR RESPONSIBILITY PROJECT DATA D 6'·C'--ABBREVIATIONS DEFERRED SVRM!TIALS GENERAL NOTES MAP PLAN CHECK CORRECTIONS REQUIRED SEPARATE PFRMITS 1310H '15 HJN\ll:lfJ 13l0H ·15 HJNlil:lfl [' '-"="'=~I :-c,,,,;r==": SN01l't/A313 HOIH31X3 '""'