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PC 2019-07-16_8a Humdinger CUPMEMORANDUM TO: PLANNING COMMISSION FROM: TERESA McCLISH, COMMUNITY DEVELOPMENT DIRECTOR BY: ANDREW PEREZ, ASSISTANT PLANNER SUBJECT: CONSIDERATION OF CONDITIONAL USE PERMIT 19-003; ESTABLISHMENT OF A BREWPUB IN AN EXISTING COMMERCIAL SPACE ; LOCATION – 116 WEST BRANCH STREET; APPLICANT – HUMDINGER BREWERY; REPRESENTATIVE – SHAWN RIDENHOUR, ARRIS STUDIO ARCHITECTS DATE: JULY 16, 2019 SUMMARY OF ACTION: Approval by the Planning Commission will result in the establishment of a restaurant and brewpub at the subject location. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There are no direct impacts to City financial and personnel resources with the proposed project. Approval of the project would facilitate a new local business, which is anticipated to increase tax revenue for the City. RECOMMENDATION: It is recommended that the Planning Commission adopt a Resolution approving the project. BACKGROUND: Location SUBJECT PROPERTY Item 8.a Page 1 The subject property is zoned Village Core Downtown (VCD) and is located in the D-2.4 Historic Character Overlay District. A restaurant previously occupied the commercial space, which is surrounded by commercial uses to the east and the Harvest Church to the west. Staff Advisory Committee The Staff Advisory Committee (SAC) reviewed the proposed project on June 19, 2019. At that time, the SAC discussed anticipated water usage, fire safety, hours of operation, and recommendations for alterations to the water service. The SAC was in support of the project and developed conditions of approval included in the prepared Resolution. ANALYSIS OF ISSUES: Project Description The applicant has submitted an application for a conditional use permit for the use of the tenant space at 116 W. Branch Street as a brewpub for Humdinger Brewery. The operation will brew beer on site and include a kitchen that will serve a limited menu consisting of classic pub food. The proposed hours of operation are from 12:00 pm to 12:00 am, seven days a week. The proposed use would be the second brewing facility in the City, in addition to Figueroa Mountain Brewing Company. No exterior alterations to the existing structure are proposed, except for signage, which will be reviewed as a separate application. Municipal Code The subject property is zoned VCD. Alcoholic beverage sales are a permitted use in the VCD zoning district with approval of a Conditional Use Permit. The Conditional Use Permit is intended to allow the establishment of uses that have some special impact or uniqueness and whose effects on surrounding environments cannot be determined in advance of the use being proposed. The proposed use will occupy an existing building that meets all applicable development standards for the VCD zoning district, including those for building height, setbacks, floor-area ratio and lot coverage. General Plan The General Plan designates the subject property for Village Core land uses. Use of the structure at 116 W. Branch Street as a brewpub is consistent with Policies LU6-2 and LU6-5 of the General Plan Land Use Element, which state: LU6-2: Within the Village Core designation appropriate land uses shall include a wide variety of commercial uses, emphasizing retail and low intensity tourist related functions. Typical uses include specialty retail (handicraft shops, art galleries, book stores, curio antique stores, and flower shops), commercial services, restaurants, convenience markets, cultural facilities, financial institutions, vocational and trade schools, and bed and breakfast inns. Item 8.a Page 2 LU6-5: Village Core developments shall emphasize uses that contribute to the vitality of the whole, creating pedestrian traffic and interest, as outlined in the Design Guidelines for the Arroyo Grande Village. The proposed project is also consistent with Policies ED5-2, ED5-4, and of the Economic Development Element as follows: ED5-2: Continue to enhance connectivity and increase retail utilization of the East Grand Avenue corridor, the Village Core, and the Traffic Way and El Camino Real mixed-use corridors. ED5-4: Expand and enhance the Village Core as a focal point for civic and tourist activities. Parking Restaurants and bars in the Village Core Downtown zoning district require one (1) parking space for every 300 square feet of gross floor area accessible to the public, excluding restrooms. The project proposes 730 square feet of indoor floor area and 180 square feet of outdoor floor area to be accessible to the public. The application of the parking rate to the entire 910 square feet results in a parking requirement of 3 spaces. The configuration of the tenant space for the previous tenant had 1,227 square feet of floor area accessible to the public. Therefore, the proposed project results in a parking requirement that is one (1) space less than previously required. A parking lot behind the building is shared by the other three (3) tenants of the building, and is of sufficient size to meet the requirement for each use. Odor One of the byproducts of the brewing process is an odor that is comparable to hot cereal. This odor is at its most potent during the boiling stage of the brewing process in which steam rising from the hot liquid carries the odor. The steam from the boil will run through a kettle vapor condenser that condenses the steam from the boil (and the associated odors) into a liquid and then sent down a floor drain. The applicant estimates a maximum of two (2) 155 gallon batches of beer per week, with each brewing process lasting approximately ninety (90) minutes. The Figueroa Mountain brewery located at 1462 E. Grand Avenue uses a similar method to minimize odors emitted from the brewing process and there have not been any odor complaints received by the City since they opened in 2015. The used grains from the brewing process will be sent to a local rancher and repurposed as livestock feed. The dry, spent grains would be stored in the bed of the shop pickup truck, encased in plastic, for less than 24 hours before being transported to the ranch. Item 8.a Page 3 Water Usage The applicant estimates that the brewing process will consume approximately 325 gallons of water per week. It is assumed that the water usage for the daily restaurant operations will be comparable to that of the previous tenant, therefore the only increase in water consumption is what will be used for brewing purposes. This is consistent with the anticipated water consumption identified in the General Plan. ALTERNATIVES: The following alternatives are provided for the Planning Commission’s consideration: 1.Adopt the attached Resolution approving Conditional Use Permit 19-003. 2.Modify and adopt the attached Resolution approving Conditional Use Permit 19- 003; 3.Do not adopt the attached Resolution, provide specific findings, and direct staff to return with a Resolution denying Conditional Use Permit 19-003; or 4. Provide direction to staff. ADV ANTAGES: The proposed use will be the first of its kind in the Village of Arroyo Grande, and create an additional source of tax revenue, as well as generate new service industry employment opportunities. The proposal would create a pedestrian friendly use in a prime real estate location in the Village, as called for in the Economic Development Element Policies ED 5-2, ED 5-4. DISADVANTAGES: The proposed project would add alcohol sales to an area with a number of other existing alcohol locations, including two (2) wine tasting rooms, and two (2) bars. However, Policy LU 6.5 emphasizes uses that contribute to the vitality of the whole by creating pedestrian traffic and interest, which the proposed use supports. 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 to be 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 project site, was published in The Tribune, and posted at City Hall and on the City’s website on Friday, July 5, 2019. A sign announcing the public hearing was posted at the project site on Wednesday July 3, 2017, 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. Attachment: 1.Project plans Item 8.a Page 4 RESOLUTION NO. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ARROYO GRANDE APPROVING CONDITIONAL USE PERMIT CASE NO. 19-003 LOCATED AT 116 W. BRANCH STREET; APPLIED FOR BY LEE SAMWAYS AND JUSTIN AMY WHEREAS, the applicant has filed Conditional Use Permit 19-003 to establish a microbrewery and restaurant in an existing commercial space; 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 Implementation of CEQA and has found and determined that the project is exempt per Section 15301(a) (Existing Facilities) of the CEQA Guidelines; and WHEREAS, the Planning Commission of the City of Arroyo Grande has reviewed the project at a duly noticed public hearing on July 16, 2019; 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 this title, the goals, and objectives of the Arroyo Grande General Plan, and the development policies and standards of the City. The proposed use of a microbrewery and restaurant is allowed in the Village Core Downtown (VCD) zoning district per Section 16.36.030 of the Municipal Code and is consistent with development standards for the VCD zoning district per Municipal Code Section 16.36.020. 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 of a microbrewery and restaurant would not impair the integrity or character of the Village Core Downtown (VCD) zoning district, as it is consistent with the stated purpose of the VCD zoning district per Municipal Code Section 16.36.020(C) by providing a use that promotes pedestrian use and enjoyment of the downtown Village area. 3.The site is suitable for the type and intensity of use or development that is proposed. Item 8.a Page 5 The site is suitable for the proposed microbrewery and restaurant, as the development meets applicable development standards relating to parking, building height, setbacks, and landscaping. 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. 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 all applicable codes and standards. NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Arroyo Grande hereby approves Conditional Use Permit 19-003, as presented to the Planning Commission on July 16, 2019 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 July 2016. Item 8.a Page 6 _______________________________ GLENN MARTIN CHAIR ATTEST: _______________________________ PATRICK HOLUB SECRETARY TO THE COMMISSION AS TO CONTENT: _______________________________ TERESA MCCLISH COMMUNITY DEVELOPMENT DIRECTOR Item 8.a Page 7 EXHIBIT ‘A’ CONDITIONS OF APPROVAL CONDITIONAL USE PERMIT CASE NO. 19-003 116 WEST BRANCH STREET COMMUNITY DEVELOPMENT DEPARTMENT PLANNING DIVISION GENERAL CONDITIONS 1.This approval authorizes the establishment of a brewpub and restaurant in an existing 1,850 square foot tenant space. 2.The applicant shall ascertain and comply with all Federal, State, County and City requirements as are applicable to this project. 3.The applicant shall comply with all conditions of approval for Conditional Use Permit Case No. 19-003. 4.Development shall occur in substantial conformance with the plans presented to the Planning Commission at the meeting of July 16, 2019. 5.The applicant shall agree to indemnify, defend, and hold harmless 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.All conditions of approval shall be printed on construction plans. AESTHETICS 7.Ensure that all roof-mounted equipment cannot be viewed from public areas or from the nearby neighborhood by use of architectural features and prudent placement of equipment. 8.All new electrical panel boxes shall be installed inside the building or in a manner that is screened from view. 9.All new public safety equipment such as double detector check valves or fire department connections shall be screened from view but in manner that ensures its proper use and function as approved by the Community Development Director. Item 8.a Page 8 DEVELOPMENT CODE 10. Development shall conform to the Village Core Downtown zoning requirements except as otherwise approved. 11. Signage shall be subject to the requirements of Development Code Chapter 16.60. LIGHTING 12. All lighting for the site shall be downward directed and shall not create spill or glare to adjacent properties. POLICE DEPARTMENT PRIOR TO ISSUING A BUILDING PERMIT: 13. The applicant shall submit an exterior lighting plan for Police Department approval. 14. Prior to issuance of a certificate of occupancy, the applicant shall install a burglary [or robbery] alarm system per Police Department guidelines, and pay the Police Department alarm permit application fee. BUILDING AND LIFE SAFETY DIVISION AND FIRE DEPARTMENT BUILDING CODES 15. The project shall comply with the most recent editions of all California Codes, as adopted by the City of Arroyo Grande. DISABLED ACCESS 16. Provide complete compliance with State and Federal disabled access requirements. FIRE LANES 17. All fire lanes must be posted and enforced, per Police Department and Fire Department guidelines. SECURITY KEY BOX 18. Prior to Occupancy, applicant must provide an approved "security key vault," per Building and Fire Department guidelines. FIRE SPRINKLERS 19. Prior to Occupancy, all buildings must receive a 5-year Certification per NPPA 25. 20. Provide Fire Department approved access or sprinkler-system per National Fire Protection Association Standards. ABANDONMENT/NON-CONFORMING 21. Prior to map recordation, issuance of a grading permit or building permit, Item 8.a Page 9 whichever occurs first, applicant shall show proof of properly abandoning all non- conforming items such as septic tanks, wells, underground piping and other undesirable conditions. OTHER APPROVALS 22. Prior to issuance of a building permit, County Health Department approval is required for food service establishments. 23. Any review costs generated by outside consultants, shall be paid by the applicant. PUBLIC WORKS DEPARTMENT 24. Prior to the issuance of a building permit, the applicant shall verify the sizing of the grease trap & interceptor. 25. A Fat, Oil, and Grease permit shall be obtained prior to occupancy. GENERAL CONDITIONS 26. Clean all streets, curbs, gutters and sidewalks at the end of the day’s operations or as directed by the Director of Community Development or the Director of Public Works. 27. Perform construction activities during normal business hours (Monday through Friday, 7 A.M. to 5 P.M.) for noise and inspection purposes. The developer or contractor shall refrain from performing any work other than site maintenance outside of these hours, unless an emergency arises or approved by the Director of Public Works. The City may hold the developer or contractor responsible for any expenses incurred by the City due to work outside of these hours. 28. The applicant shall repair the broken pressure gauge on the fire sprinkler riser. 29. The applicant shall trim back and maintain the vegetation adjacent to Fire Department Connection on the double detector check valve to increase visibility and utility. 30. Provide a placard on the double detector check valve identifying that it serves both the structure at 116 W Branch Street and the property at 124 W Branch Street. 31.A Reduced Pressure Principle (RPP) backflow device shall be installed on the water line to the structure. WATER 32. Construction water is available at the corporate yard. The City of Arroyo Grande does not allow the use of hydrant meters. Item 8.a Page 10 PERMITS 33. Obtain an encroachment permit prior to performing any of the following: a.Performing work in the City right of way, b.Staging work in the City right of way, c.Stockpiling material in the City right of way, d.Storing equipment in the City right of way. FEES 34. Pay all required City fees at the time they are due. PRIOR TO ISSUING A BUILDING PERMIT 35. The Public Works plans shall be approved. PRIOR TO ISSUING A CERTIFICATE OF OCCUPANCY 36. All utilities shall be operational. 37. All essential project improvements shall be constructed prior to occupancy. Non essential improvements, guaranteed by an agreement and financial securities, may be constructed after occupancy as directed by the Director of Public Works. Item 8.a Page 11 EXHIBIT BItem 8.a Page 12 Item 8.a Page 13 Item 8.a Page 14 Item 8.a Page 15 Item 8.a Page 16 ATTACHMENT 1Item 8.a Page 17 Item 8.a Page 18 Item 8.a Page 19 Item 8.a Page 20 Item 8.a Page 21