MILNER HOTEL S. FLOWER ST. CONDITIONAL USE ATTACHMENT A

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5 MILNER HOTEL S. FLOWER ST. CONDITIONAL USE ATTACHMENT A Requested Action The Applicant, 813 South Flower Street Associates, LLC ( Applicant ), is requesting a Conditional Use, pursuant to LAMC W.1, to allow the sale and dispensing of a full-line of alcoholic beverages for on-site consumption, in conjunction with a hotel restaurant within an existing 12-story, 71,686 squarefoot hotel. The proposed restaurant café with ancillary café bar and lounge areas, totals 9,645 square feet and 200 seats, interior and exterior; which includes the 110 square foot, 12-seat sidewalk patio fronting Flower Street. Episodic use of a disc jockey or live musical entertainment on a 71 square foot stage is requested for the second floor lounge area; and one arcade game and an area for darts, foosball and pingpong is proposed for the basement café bar. There is no dancing, alcohol room service or use of hotel mini-bars requested. Project Description 813 South Flower Street Associates, LLC proposes the expansion of alcohol service to portions of the basement, ground floor, partial second floor and rooftop; and with episodic use of a DJ/live entertainment, limited to a 71 square foot stage on the second floor and one video game and the above-described basement recreational uses, as follows: Area Floor Area Live Patron Seating (SF) Entertainment Dancing Interior Exterior Total Gr. fl. Restaurant 3,469 none none cafe 2 nd floor café lounge 461 Live Entertainment/DJ 71 sq. ft. stage Basement café bar 1,890 none Rooftop café bar 3,825 none none Guest rooms No alcohol N/A N/A N/A N/A N/A room service or in-room mini bars TOTAL 9, sq. ft. none While the existing hotel is 71,686 square feet, upon completion, the hotel will achieve a maximum area of 70,409 due to the removal of non-compliant appendage structures and addition of seismic shear walls in accordance with the LA City Non-Ductile Concrete Retrofit Program. Property Description The subject property consists of one lot and is approximately 7,603 square feet. It is developed with a 12- story, approximately 71,616 square-foot hotel with approximately 50 feet of frontage along Flower Street and 50 feet of frontage along a 20-foot wide alley in the rear. The building covers almost 100-percent of the lot and does not and has never had any on-site parking. From available records, it appears the Attachment A v11.docx

6 Ritz Milner Hotel S. Flower St. Conditional Use Attachment A Page 2 building permit for the original construction of the hotel was issued in 1923 and therefore, before any offstreet parking would have been required. The subject property is served by Metro lines 81, 442, and 460 and the Downtown Dash line. As is customary in most areas of Downtown, there are several public parking lots within a one-block walking distance of the subject property. Project Description The Applicant is seeking a new C for ancillary alcohol rights in connection with a hotel restaurant, which includes café bar and lounge areas, totaling both interior and exterior, 9,645 square feet and 200 seats. The alcohol service areas span 20% of the four levels containing restaurant uses. Overall, the alcohol service areas span just 7% of the building envelope. The new CUB application request will be in conjunction with an ABC restaurant Type 47 license and would seek to expand on-site alcohol sales to portions of the basement, ground floor, partial second floor and rooftop. A revocable permit will be applied for relating to use of the public sidewalk for the outdoor sidewalk patio seating. There will be no alcohol service to the rooms. The hotel does not and will not provide food or alcohol room service and the rooms will not feature a mini-bar cabinet with alcohol. The alcohol request is eligible for several categorical exemptions (CE) under the California Environmental Quality Act (CEQA), as discussed in the proposed CEQA findings. There is an existing kitchen which will be modernized and expanded. The hotel restaurant, lounge and café bars will be run by the hotel operator, a highly experienced hotelier. Food will always be available in the lounge and café bars to help maintain alcohol as an ancillary use to the restaurant Type 47 use. The restaurant will be run by the same operator as the hotel. Hotel hours of operation will be 24 hours per day, consistent with prevailing hospitality industry standards. Alcohol service hours will be from 7 am 2 am daily. The proposed rooftop café lounge includes the activation of the rooftop, including creative re-use of existing rooftop utility structures for hospitality use. The seating includes both covered and uncovered outdoor casual dining seating, all situated behind a 20 foot high rooftop building tall wall. The 20 foot high tall wall, which fronts Flower Street, will serve as a physical to prevent noise projection. There is one residential project across the street from and southeast of the subject site. There is no nearby residential development immediately north, south or west of the subject property. The rooftop will not include public dancing or live entertainment. The uncovered outdoor rooftop seating is allowed, consistent with Zoning Administrator Interpretation ZAI 1808, which specifies that outdoor dining is permitted, roofed or unroofed, at any levels above the ground floor, incidental to an eating establishment. Per Ordinance 165,403, also intended to incentivize outdoor dining use, unroofed areas do not count for, net increase floor area. (See further Section `12.03, Outdoor Dining and Eating Areas-Definition, Zoning Manual, page 37.)

7 Ritz Milner Hotel S. Flower St. Conditional Use Attachment A Page 3 The subject structure was originally developed to cover the parcel area. There never was parking on site. There is no parking planned on site or off-site. There is new additional square footage of new construction, totaling 415 square feet of covered space that would otherwise be considered to trigger added parking. However, pursuant to the Central Business District parking incentives Ordinance, parking for new retail/commercial is not triggered until there is 7,500 square feet of such new construction retail/commercial. And after the 7,500 square foot threshold, parking for new space is limited to one space per thousand. Therefore, the 415 square feet of new space does not meet the threshold standard to require the addition of an off-site parking space requirement. Further, separate from zoning regulations, relating to parking use, hotel employees have a history of not relying on single vehicular transportation to the site. And the hotel has a proven history of its guests not relying on cars. In addition, Applicant is providing parking for four bikes on site. Applicant is reviewing now whether and if it intends to provide valet parking at the Flower Street curbside, based on its experience with patron s non-reliance on individual car usage, instead utilizing car-ride services, e.g. Uber and Lyft. Applicant is an experienced boutique hotelier and hotel developer, with over 35 years experience. Its hotel parent company operates 30 boutique hotels. Its hotel business model and specific plans for the Ritz Milner Hotel are to operate a hotel with reasonable room rate pricing and less emphasis on alcohol or alcohol-fueled uses such as public dancing, than many of its competitors. This is exemplified in part by the fact that the Milner will not provide room service, nor does it provide in-room mini-bar cabinets with alcohol. The Milner Hotel has been in continuous operation as a hotel since its opening. Preceding the City s 1984 CUB requirement, alcohol sales have historically been offered in connection with the hotel. The hotel has historically maintained a kitchen at the premises and operated a café restaurant with food and alcohol service. The original hotel café opened in 1923 when the hotel first opened. In 1964, another restaurant, now closed, opened on the third floor. Presently, there is a 2015-approved CUB for a bar use. However, Applicant subsequently obtained and has maintained an ABC Type 47 license for a restaurant use. The hotel has been in operation since its opening in the early 20 th Century and has offered the amenity of alcoholic beverages at least since 1970, without incident. There is no available record of code or operating violations relating to the Hotel or the historic alcohol and food service. Pursuant to and as confirmed by the Planning ZI memo issued by Alan Bell on February 27, 2014, and pursuant to LAMC Section A 18, the hotel does not require a Conditional Use Permit (C) for hotel use and operations. Further the hotel restaurant use is a by-right use. A C on the premises is required solely for alcohol use. Circulation Flower Street, adjoining the subject property to the south, is a Modified Avenue II Street with a designated 90-foot right-of-way width. It is improved with curb, gutter and sidewalk.

8 Ritz Milner Hotel S. Flower St. Conditional Use Attachment A Page 4 Surrounding Properties The property north of the subject site, separated by a 10-foot wide alley, is zoned C2-4D and developed with 12-story office building with retail on the ground floor. The property east of the subject site, separated by a 90-foot wide Flower Street, is zoned C2-4D and improved with 12-story office building. The property south of the subject site, separated by Flower Street, is zoned C2-4D and developed with a parking garage and a four-story office building. The property slightly further south of the subject site, at 819 S. Flower, is developed with a 32,546 square-foot, 72-room full-service hotel. The property west of the subject site, separated by a 20-foot wide alley, is zoned C2-4D and improved with a five-story office building. Previous cases, affidavits, and permits on the project site On July 9, 2015, the Zoning Administrator approved a Conditional Use to allow the sale and dispensing of a full-line of alcoholic beverages for on-site consumption in conjunction with an existing bar within an existing hotel in the C2-4D Zone. On February 21, 1923, building permit no was issued for the construction of a new 12-story hotel and store with 180 rooms. Previous cases on surrounding properties: On March 16, 2012, the Zoning Administrator ( ZA ) approved a Conditional Use to allow the sale and dispensing of beer and wine for on-site consumption in conjunction with an existing restaurant, in the C2-4D zone, located at 800 S. Figueroa Street. On November 5, 2004, the ZA approved a Conditional Use to allow the sale and dispensing of a full-line of alcoholic beverages for on-site consumption, in conjunction with a proposed 7,150 square-foot restaurant on the ground floor of an existing office building, seating for no more than 236 patrons, with a Fire Department approved occupant load of 297 patrons, in the C2-4D zone, at 800 S. Figueroa Street. On February 7, 2007, the ZA approved a request for an Approval of Plans to allow the continued sale and dispensing of a full-line of alcoholic beverages for on-site consumption in conjunction with a 604 squarefoot expansion to an existing 7,150 square-foot restaurant with an increase in maximum seating capacity from 236 to 263 patrons, on the ground floor of an existing building in the C2-4D zone, at 800 S. Figueroa Street.

9 Ritz Milner Hotel S. Flower St. Conditional Use Attachment A Page 5 On January 23, 2015, the ZA approved a request for an Approval of Plans to allow the continued sale and dispensing of a full-line of alcoholic beverages for on-site consumption in conjunction with an expanded 7,472 square-foot restaurant with seating for 203 patrons, in the C2-4D zone, at 800 S. Figueroa Street. On June 21, 2012, the ZA approved a Conditional Use to allow the sale and dispensing of a full-line of alcoholic beverages for on-site consumption in conjunction with an existing ground-floor restaurant with a mezzanine and a reduced in size basement wine bar / banquet center and for in-room alcohol access cabinets in an existing 32,546 square-foot, 72-room full-service hotel operating 24 hours per day, 7-days a week in the C2-4D zone, at 819 S. Flower Street. Secondly, the ZA also approved a Conditional Use for the sale and dispensing of a full-line of alcoholic beverages for on-site consumption in a 3,935 squarefoot hotel lounge/nightclub located in the basement of the hotel, with an independent entrance from the existing banquet center, containing a maximum of 197 seats and hours of operation from 11:00 AM to 2:00 AM, daily, with live entertainment and dancing. Thirdly, the ZA also approved a Conditional Use to allow the continued operation of live entertainment and dancing, only incidental to a banquet, in the 3,864 square-foot basement wine bar/banquet center with 6 seats. Fourthly, the ZA approved a Conditional Use to allow the continued operation of ancillary hotel amenities of an on-site health spa, having spa and massage treatment rooms, operating within a 1,755 square-foot area of the first floor. And finally, the ZA approved a Conditional Use to allow live entertainment and dancing in a 3,935 square-foot hotel lounge/nightclub located in the basement level of the hotel. On May 7, 2003, the ZA approved a Zone Variance to allow a mixed residential and commercial development in the C4-4D zone, at 830 S. Flower Street. Secondly, the ZA approved a Zone Variance to allow 8,230 square feet of outdoor eating areas on the public sidewalk adjacent to portions of the project fronting along the as east and west sides of Hope Street. Thirdly, the ZA approved a Zone Variance to allow parking spaces required for a residential use in the Central City Area to be located on a different lot, either within the Project boundaries by covenant and agreement or within 750 feet of the project boundaries by lease agreement in lieu of providing residential spaces on the same lot. Fourthly, the ZA approved a Zone Variance to allow deviations from the parking facilities standards in conjunction with the conversion of the 830 S. Flower Street building from an office to a parking use. Fifthly, the ZA approved a Zone Variance to allow reduced open space as follows: 1) 67% of the open space required for 214 dwelling units; 2) 88% of the required open space otherwise required for 266 dwelling units; 3) 49% of required open space for 152 dwelling units; and, 4) 66% of required open space for 307 dwelling units. Sixthly, the ZA approved a Zone Variance to allow a maximum 86-foot height, a maximum 165-foot height, a maximum 395-foot height, in lieu of the 40-foot height limit for Commercial Corner Developments.

10 Ritz Milner Hotel S. Flower St. Conditional Use Attachment A Page 6 Findings General Conditional Use Findings 1. That the project will enhance the built environment in the surrounding neighborhood or will perform a function or provide a service that is essential or beneficial to the community, city, or region. The Applicant, 813 South Flower Street Associates, LLC, is requesting a Conditional Use, pursuant to LAMC W.1, to allow the sale and dispensing of a full-line of alcoholic beverages for on-site consumption in conjunction with an existing 12-story square-foot hotel. The subject property currently has Type 47 license for a restaurant within the ground floor, under ZA (CUB). The hotel was built in 1923 and was first issued an ABC license for the sale of alcoholic beverages in Based on review of hotel advertisements, since their opening, alcohol service appears to have accompanied the original and subsequent café restaurant uses. The hotel shortage in Downtown Los Angeles is well-known. As tourism in Los Angeles particularly in the Downtown area, which is home to the convention center continues to boom, demand is exceeding the supply. The City s hotel occupancy rate hit 79-percent in 2014 and to overcome the shortage, 1,800 new guest rooms must become available in the next two years with as many as 4,000 rooms are needed within the next few years. 1 The sale of alcoholic beverages in hotel restaurants is a typical amenity that is expected of a hotel. Guests of the hotel as well as non-guests expect to enjoy a beverage with their food service. The hotel owners, which are also the restaurant owners, intend to provide a thoughtfully-crafted menu that provides an array of food offerings, from appetizers, to entrées and desserts, which achieve the objective of convenience and quality offerings for hotel and non-hotel quests alike. Consistent with the typical hotel in a tourism hub such as Downtown Los Angeles, the hotel s restaurant is an attractive amenity to guests who may simply dine in the restaurant and those who may spend their nights in the guest rooms. With 68 million square feet of existing office space and 1.6 million square feet under construction 2, hotels are in high demand. Further, event planners expect hotels to offer the space and amenities to allow for corporate events such as holiday parties, conferences, seminars, and training including for celebratory events which require live entertainment. The reuse of the rooftop represents a significant contribution to the property s built environment, but in a manner that will not be visible from the street. Further, there exists a 20 foot high wall fronting Flower Street that will serve as a highly effective noise buffer for reuse of the now vacant rooftop. The addition of outdoor seating on the public sidewalk fronting Flower Street contributes to street s built environment, especially, in this location, as the Flower streetscape is largely comprised of existing buildings built to the lot line and is therefore otherwise devoid of uses which would otherwise serve to activate the Flower 1 Watt, B. (2015, January 6). With LA Tourism Booming, Officials Warn of Hotel Shortage. Southern California Public Radio. Retrieved from 2 Downtown Center Business Improvement District. DTLA by the Numbers: Office. Retrieved from

11 Ritz Milner Hotel S. Flower St. Conditional Use Attachment A Page 7 streetscape. Activation of the Flower sidewalk will provide lighting, patrons and a sense of activity to an otherwise dark streetscape at night. Further, it will encourage pedestrian use of Flower Street. A revocable permit will be sought to provide such use. The activation of the rooftop for hospitality use is considered essential to enable the Applicant to provide needed hotel amenity uses. The hotel industry has changed since the hotel s construction in 1923, which today emphasizes providing patrons a broad array of hospitality amenity choices. Given that the building footprint occupies nearly 100 percent of the lot, opportunities for such amenity choices are inherently limited. Provision of such diverse amenity experiences and services are therefore often located on multiple floors; and activation of otherwise dormant or underutilized spaces such as rooftops has become a priority focus for provision of such amenity uses. Key among the choices for amenity uses is provision of outdoor dining and bar experience. Recognizing this, and to encourage building s re-use, the City of Los Angeles Planning Department has a long history of encouraging creative reuse of existing buildings underutilized space. This is exemplified by the 1961 ZAI 1808 issuance, the 1990 passage of Ordinance 165,403 and passage in 1999 of the City s Adaptive Reuse Ordinance, all of which in particular seek to incentivize and encourage use of rooftop spaces and opportunities for outdoor dining. The operation of a hotel restaurant with accessory alcohol sales are an industry standard within most boutique hotels and are considered integral to the hospitality experience. Approval of the request will further provide a service that is essential to Downtown s local population including its workers, residents and tourists, while ensuring the long-term viability of the hotel. 2. That the project s location, size, height, operations and other significant features will be compatible with and will not adversely affect or further degrade adjacent properties, the surrounding neighborhood, or the public health, welfare, and safety. The hotel has been in operation since its opening in the early 20 th Century and has offered the amenity of alcoholic beverages at least since 1970 without incident. Since its inception, it has operated and will continue to operate in harmony with the surrounding neighborhood even after the hotel began offering alcoholic beverages. There are no records of zoning code violations or disciplinary action taken against the ABC license. In fact, the project s location is convenient and provides a hospitality amenity for the neighborhood s surrounding uses. The subject property is near an existing hotel south of the subject property on Flower Street. The site is further surrounded by high-rise office buildings which are home to companies such as TCW and Ernst and Young whose employees and clients of their global operations require corporate lodging. Furthermore, the subject property s proximity to the Staples Center, Convention Center, and Nokia Live and the hotel s reasonable room pricing structure make it a convenient choice for attendees of sports events, conferences and the Grammy Museum who prefer a boutique hotel with the convenience of on-site dining and the option to enjoy the views afforded by the rooftop café bar. The neighboring hotel s existing approved C, as but one example of a downtown hotel, provides a far more extensive array of associated alcohol rights. The Milner CUB request for alcohol service is limited

12 Ritz Milner Hotel S. Flower St. Conditional Use Attachment A Page 8 to 20 percent of the four levels in which the restaurant use will operate. Alcohol use area represent but 7% of the overall building envelope. Alcohol service is not available in its hotel rooms. The proposed improvements to the rooftop are fronted by a 20 foot high wall fronting Flower, thus providing effective noise buffer to any existing residential. The outdoor seating closest to Flower is covered. The remaining rooftop outdoor seating is setback well from Flower Street and situated in between covered small utility buildings converted to hospitality use. The subject property is itself surrounded by office high-rise buildings. That fact, combined with the rooftop building tall wall fronting Flower, assures there will be minimal impacts to the surrounding neighborhood. 3. That the project substantially conforms to the purpose, intent and provisions of the General Plan, the applicable community plan, and any applicable specific plan. The hotel has been in operation since The hotel use itself does not require a discretionary action. Therefore, the sole discretionary action requested is a Conditional Use Permit for alcohol, subject to certain findings which will be made herein. The site is situated within the Central City Community Plan and has a General Plan Land Use Designation of Regional Center Commercial with corresponding zones of CR, C1.5, C2, C4, C5, R3, R4, R5, RAS3, and RAS4. While the Central City Community Plan is silent on the sale of alcoholic beverages, approval of the request is consistent with, and would not cause the project to deviate from, the general purpose, intent, and provisions of the General Plan. This includes: Objective 2-3: Promote land uses in the Central City that will address the needs of all the visitors to Downtown for business, conventions, trade shows, and tourism. With more than 50,000 residents, over half-a-million weekday population and 19 million visitors per year, restaurants including those in hotels which are convenient for residents and workers and whose fine food and beverages attract visitors, are essential for the sustaining the neighborhood s economy. The hotel s guest rooms meet Downtown s shortage of guest rooms for the many visitors of the region s trade shows and conventions. Policy 2-3.1: Support the development of a hotel and entertainment district surrounding the Convention Center/Staples Arena with linkages to other areas of Central City and the Figueroa corridor. Approval of the request will allow the Applicant to provide amenities typically expected of similar hotels while ensuring its long-term viability as part of the hotel and entertainment district. Objective 2-4: To encourage a mix of uses which create an active, 24-hour downtown environment for current residents and which would also foster increased tourism. The on-site dining options contribute to a 24-hour downtown environment for current residents while providing a destination for tourists and offering convenient on-site dining and live entertainment options for hotel guests. Policy 2-4.1: Promote night life activity by encouraging restaurants, pubs, night clubs, small theaters, and other specialty uses to reinforce existing pockets of activity.

13 Ritz Milner Hotel S. Flower St. Conditional Use Attachment A Page 9 The ground-floor restaurant and basement bar will contribute to night life while enhancing pedestrian activity along Flower Street. 4. The proposed use will not adversely affect the welfare of the pertinent community. The Applicant s request for expanded alcohol service in connection with a restaurant will not adversely affect the welfare of the pertinent community. The request for new areas of alcohol service represents a re-constituting of such uses in an existing hotel. There was an existing restaurant at the hotel opening and in 1964 there was a second restaurant which opened on the third floor. The best assurance that the proposed use will not adversely affect the welfare of the pertinent community is that the alcohol use must first be compatible with and not affect the quiet enjoyment of hotel guests staying at the hotel. In fact, it has and will continue to benefit the immediate neighborhood as well as the region. There remains an urgent and palpable need to provide and continue to provide quality hotel accommodations downtown. The CUB request is a standard necessity for the modernization and continued operation of a boutique hotel. As previously discussed, the Applicant is proposing the expansion of its current authorization to sell and dispense alcoholic beverages from its existing restaurant to the entire hotel. Since the hotel s opening in 1923 and since it began offering alcoholic beverages in 1970 via ABC, there is nothing in the record to suggest that its presence in the neighborhood has been contrary to public welfare and safety. In fact, the hotel, its on-site restaurant and its beverage menu provides a local convenient, quality hospitality option for occupants of the neighborhood s high-rise office and residential towers, and the visitors/tourists of the nearby convention center and Staples Center. The price point of the restaurant s beverage menu will be sufficiently high, such that it will deter patrons who want to consume multiple alcoholic beverages to achieve fast inebriation. The proposed limited and episodic live entertainment will occur within the interior walls of the hotel and will remain ancillary to the main hotel and restaurant uses. Finally, access to the hotel s premises, including the restaurant and rooftop, requires that patrons enter through the lobby, thereby deterring risk of potential public nuisance. The hotel, on a by right basis, remains a 24 hour operation. The requested hours of operation for alcohol use are considered standard for a hotel use. The alcohol service areas are, in fact, substantially less than for other comparable hotels of this size and type. The preponderance of the alcohol service will take place in the hotel interior. The limited areas of outdoor uncovered outdoor seating on the rooftop are substantially set back from the street. Those areas are already buttressed by an existing 20 foot high wall fronting Flower Street. The first test of negative impacts from such alcohol uses would be on hotel patrons who stay at the hotel. This fact provides a built-in incentive for hotel management, which will also operate the multi-floor restaurant, to ensure that there are no noise or nuisance impacts on their hotel guests. Limited, episodic, live entertainment would occur solely in the basement. There is no dancing or live entertainment planned for the rooftop. For the above reasons, the proposed alcohol use will not pose the risk of negatively affect the welfare of the pertinent community. Additional Findings for Alcohol Requests 1. The granting of the application will not result in an undue concentration of premises for the sale or dispensing for consideration of alcoholic beverages, including beer and wine, in the area of the City involved, giving consideration to applicable State laws and to the California Department of Alcoholic Beverage Control's guidelines for undue concentration; and also giving consideration to the number and proximity of these establishments within a 1,000-

14 Ritz Milner Hotel S. Flower St. Conditional Use Attachment A Page 10 foot radius of the site, the crime rate in the area (especially those crimes involving public drunkenness, the illegal sale or use of narcotics, drugs or alcohol, disturbing the peace and disorderly conduct), and whether revocation or nuisance proceedings have been initiated for any use in the area. The subject property is in Census Tract , where Department of Alcoholic Beverage Control ( ABC ) licensing criteria allocates two on-sale licenses and one off-sale license where there are presently 85 and five, respectively. The licensing criteria are developed on a statewide basis and do not consider the unique characteristics of neighborhoods. In fact, the overconcentration guidelines were intended to apply to counter the negative impact of deemed approved problem alcohol uses in residential neighborhoods. The subject property has a history of alcohol use for two hotel restaurants that actually pre-dates other more recently approved Cub s. Further, while the Applicant s is requesting to expand alcohol service from the ground floor to the basement, second floor and rooftop, it will utilize the privileges in its current license; issuance of a new license will not be required. An ABC license was first issued at the subject property in June 1970 and has had a license on-site with no record of disciplinary action. The existing license will continue to benefit the public convenience and welfare. As tourism continues to boom, Downtown s estimated 19 million annual visitors as well as the future residents of the 10,170 dwelling units under construction, reasonably expect the sort of amenities typically offered by the hospitality industry. 2. The proposed use will not detrimentally affect nearby residentially zoned communities in the area of the City involved, after giving consideration to the distance of the proposed use from residential buildings, churches, schools, hospitals, public playgrounds and other similar uses, and other establishments dispensing, for sale or other consideration, alcoholic beverages, including beer and wine. The following alcohol establishments are within 600 feet of the subject property: Name of Establishment Proximity to Subject Property Address Morton s 450 feet 735 S. Figueroa St, Suite 3207 California Pizza Kitchen 450 feet 735 S. Figueroa St., Suite 305 Loteria 450 feet 735 S. Figueroa St., Suite 126 City Tavern 450 feet 735 S. Figueroa St., Suite 305 Mendocino Farms 450 feet 735 S. Figueroa St., Suite 305 Target 450 feet 735 S. Figueroa St., Suite 305 Generation 600 feet 808 W. 7 th St. Wokano 600 feet 800 W. 7 th St. District 600 feet 711 S. Hope St. Sheraton Hotel 600 feet 711 S. Hope St. Ralphs 400 feet 645 W. 9 th St. Faith and Flower 285 feet 705 W. 9 th St. Orchid Hotel Adjoining 819 S. Flower St. Fogo de Chao 50 feet 800 S. Figueroa St. Smart and Final 370 feet 845 S. Figueroa St. Riordan s 600 feet 875 S. Figueroa St.

15 Ritz Milner Hotel S. Flower St. Conditional Use Attachment A Page 11 Casa Nostra 600 feet 825 James M. Wood Blvd. Panini Cafe 600 feet 600 W. 9 th St. There are no churches, schools, hospitals and recreational areas within 600 feet of the project site. While the site is surrounded by commercially-zoned properties, Downtown has many mixed-use buildings with retail on the ground floor and dwelling units in the upper floors. Compared to other areas of downtown, the on-sale hospitality uses within 600 feet in this area are arguably less intense. Further, residents of highly-urbanized city centers such as Downtown expect the convenience of nearby hospitality uses, such as restaurants and bars. Therefore, the public convenience is served by the Applicant s request. As referenced previously, the hotel has been in operation since 1923, which then included a café restaurant and a then second restaurant added in There is confirmed alcohol service via an ABC license since 1970, without incident. There is nothing in the record to indicate that expansion of alcohol service from the existing restaurant to the basement, ground floor second floor and rooftop would be contrary to public health and welfare or pose risk of negative impacts. The requested 12-seat outdoor sidewalk seating is of sufficiently small size that it is highly unlikely to generate noise impacts. It will however, be a positive addition to an otherwise dark and dormant Flower streetscape evenings. The requested area square footage for alcohol sales is substantially less than most new area hotels. The alcohol service areas span 20% of the four levels containing the restaurant uses. Overall, the alcohol service areas span just 7% of the overall building envelope. And the varied levels of restaurant use have been carefully designed to avert risk of negative noise or nuisance impacts. Taken together, the restaurant alcohol requests represent a strategically applied array of amenities that at once allows the hotel to be modernized according to industry standards and competitive with other hotels, even as it maintains its primary business, a hotel.

16 Milner Hotel South Flower Street: Applicant Proposed Findings for Use of Categorical Exemptions Classes 1, 5, and 32 Under the California Environmental Quality Act The following includes findings to support the use of categorical exemptions under the California Environmental Quality Act, which are provided as supplementary information to the findings submitted to support the requested Conditional Use Beverage ( CUB ) permit under the Los Angeles Municipal Code. The project includes allowing the sale and dispensing of a full line of alcoholic beverages for on-site consumption throughout an existing 12-story hotel ( Project ), which represents an expansion of alcoholic beverage services over current service, which is presently confined to the ground-floor bar with a Type 47 ABC license. The sale and dispensing of alcoholic beverages would occur within the proposed ground floor restaurant, 2 nd floor lounge, basement café bar, and rooftop café bar areas, reflecting the combined total of 200 seats and 9,645 square feet. A total of 188 seats would be indoors (including covered rooftop areas) and 12 seats would be on the 110 square foot, sidewalk patio associated with the ground floor restaurant café. The applicant will also seek necessary police permits to allow a disc jockey or live musical entertainment limited to a 70 square foot stage on the second floor café lounge area. The hotel will also provide recreational games in the basement café bar, to consist of one arcade game and an area for darts, foosball and ping-pong. There will be no dancing, and alcoholic beverage service is limited to the above described locations only; there will be no in-room alcohol service or mini-bars. Alcoholic service hours will be from 7:00 am 2:00 am daily, and the rooftop café lounge seating is situated behind a 20 foot high wall fronting Flower Street. The seating closest to Flower Street is roofed to prevent neighborhood noise impacts. The project will require a CUB permit for the sale of alcoholic beverages for on-site consumption, which is a discretionary approval triggering compliance with the California Environmental Quality Act ( CEQA ). However, the Project qualifies for a number of categorical exemptions under both the CEQA Guidelines, 14 Cal. Code of Regulations et. seq. ( CEQA Guidelines ) and City of Los Angeles ( City ) Environmental Quality Act Guidelines ( City Guidelines ), including Class 1 (Existing Facilities), Class 5 (Alterations in Land Use Limitations), and Class 32 (In-Fill Development Projects). The Project s applicability for each of these exemptions is discussed below. It is noted that an agency may combine several exemptions to find an entire project exempt. (See Surfrider Found. v California Coastal Comm'n (1994) 26 Cal.App.4th 151.) An agency may also rely on and cite several different exemptions to support a determination that CEQA review is not required for a particular activity. (See North Coast Rivers Alliance v Westlands Water Dist. (2014) 227 Cal.App.4th 832; see also Surfrider Found. v California Coastal Comm'n (1994) 26 Cal.App.4th 151.) A Class 1 exemption applies to projects that involve 1) no physical expansion covering the operation, repair, maintenance, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, and 2) negligible or no expansion of

17 use beyond that previously existing. (CEQA Guidelines 15301; City Guidelines Art. III 1(a).) The CEQA Guidelines Class 1 exemption also covers leasing and permitting. (CEQA Guidelines ) The City Guidelines also specifically cover issuance of any lease, license or permit to use an existing structure or facility involving negligible or no expansion of use. (City Guidelines Art. III 1(a)(14).) The Project extends the sale of alcoholic beverages from the café/bar to other limited portions inside the existing hotel and provides related and limited entertainment, which involves a negligible expansion of square footage limited to approximately 400 square feet and a negligible expansion of use. Further, the sale of alcoholic beverages and small-scale entertainment in connection with meal and beverage service in portions of a hotel, is often a typical, expected or desired amenity of many patrons. Thus, these alterations would result in limited physical expansion, a negligible expansion of use, and no significant increase in impacts. The City Guidelines specifically apply Class 1 exemptions to [g]ranting or renewal of a conditional use for a non-significant change of use of land. (City Guidelines, Art. III 1()(22).) The granting of a CUB will not result in a change in land use or density as it would only permit the sale and consumption of alcoholic beverages and installation and use of a small stage and games in the existing hotel. Therefore, this land use alteration is minor. A Class 5 exemption applies to projects that consist of minor alterations in land use limitations in areas with an average slope of less than 20%, which do not result in any changes in land use or density. (CEQA Guidelines 15305; City Guidelines Art. III 1(e).) The Project is located in an area with an average slope of less than 20% and designated for commercial use under the general plan and zoning code. (City Generalized General Plan Land Use Map 1 ; City Commercial Zoning Map 2.) Although the sale of alcoholic beverages is not permitted as of right in these areas, it is permitted with the granting of a CUB. (City Zoning Code ) The City Guidelines specifically apply Class 5 exemptions to [g]ranting or renewal of a conditional use for a non-significant change of use of land. (City Guidelines, Art. III 1(e)(23).) The granting of a CUB will not result in a change in land use or density as it would only permit the sale and consumption of alcoholic beverages and installation and use of a very small stage and games in the existing hotel. Therefore, this land use alteration is minor. Further, the City Guidelines specify that this Class 5 categorical exemption applies to the granting of a CUB for the on-site consumption of alcoholic beverages pursuant to City zoning regulations, so long as beverages dispensed and consumed do not exceed an occupant load of 200 persons. (City Guidelines, Art. III 1(e)(34).) The Project involves providing alcoholic beverage service for 200 seats, 188 inside, including enclosed and unenclosed rooftop area set behind a 20 foot high wall; and 12 on an outdoor, unenclosed patio. And further, since not every patron will consume alcohol, for the above reasons, the Project falls within the parameters set by the City Guidelines. Additionally, the City Guidelines provides that this exemption for alcoholic beverages is available where the premises will not also require an original dancehall, skating rink or bowling alley permit from City Police Commission. (Id.) The Project would not require such

18 a permit, most pertinently because it does not meet the definition of a dancehall which is any place where the holding or conducting of public dances is carried on. (Los Angeles Municipal Code Section (a)(1),(2).) While there will be limited live entertainment, there will be no dancing in the lounge and bar areas. As such, the Project consists of minor alterations in land use limitations, would result in no significant increase in impacts, and does not fall within any exceptions to the available Class 5 exemption under City Guidelines. A Class 32 exemption applies to projects characterized as in-fill development meeting the following conditions: 1) the project is consistent with the applicable general plan designation and policies as well as with applicable zoning designation and regulations; 2) the project occurs within city limits on a site of no more than five acres substantially surrounded by urban uses; 3) the project site has no value as habitat for endangered, rare or threatened species; 4) approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and 5) the site can be adequately served by all required utilities an public services. (CEQA Guidelines ) The City Guidelines provides that [a]ny activity specifically exempted from the requirements of CEQA by State Law are exempt from the requirements of CEQA and the City Guidelines (City Guidelines, Art. II, 2(h)) Each of the criteria for the Class 32 exemption are discussed below. Class 32, Criteria 1 - The Project is consistent with the applicable General Plan designation and policies as well as with applicable zoning designation and regulations As discussed in the CUB findings, the Project is consistent with the City General Plan s designation and policies, and with the City zoning designations and regulations. The Property is designated as Regional Center Commercial, with a corresponding zoning designation of C4-2D. The building s use as a full-service hotel is consistent with the Regional Center Commercial General Plan designation and the C4-2D zoning designation. Further, the proposed sale of alcoholic beverages is permitted in these commercial designations with a CUB. The Project is located within the Central City area, and substantially conforms with the purpose, intent and provisions in the Central City Community Plan. The Central City area is the governmental, financial, and the industrial hub of the City. The Property is located within the Financial Core of the Plan, which contains the highest concentration of commercial uses. (Central City Community Plan at pg. 1-4, Figure 1.) As such, the Property is surrounded by high-rise office buildings whose employees and clients require corporate lodging with attractive amenities. The Project would provide fuller beverage and hospitality services, activating an underutilized space and attracting Los Angeles residents, employees, consumers, and tourists alike. Providing alcoholic beverages and entertainment in hotel spaces is an expected amenity for many of the Downtown s visitors and employees. As such, the Project will affirmatively contribute to the City s achievement of the following objectives related to commercial development contained in the Central City Community Plan: Objective 2-1: To improve Central City s competitiveness as a location for offices, business, retail, and industry. 3

19 Objective 2-2: To retain the existing retail base in Central City. Objective 2-3: To promote land uses in Central City that will address the needs of all the visitors to Downtown for business, conventions, trade shows, and tourism. Objective 2-4: To encourage a mix of uses which create an active, 24-hour downtown environment for current residents and which would also foster increased tourism. Class 32, Criteria 2 The Project occurs within City limits on a site of no more than five acres substantially surrounded by urban uses The Project would be located in the Downtown area, entirely within the City limits. Further, the Project is located on a site that is approximately 7,603 square feet, far smaller than 5 acres. The Project is surrounded by urban uses, including office buildings, hotels, restaurants and retail establishments. Class 32, Criteria 3 The Project site has no value as habitat for endangered, rare or threatened species The Project site has no value as habitat for endangered, rare or threatened species, as it is an already constructed site in an intensely developed commercial center in the Downtown area. Class 32, Criteria 3 Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality Approval of the Project would result in a negligible increase in the existing use and thus would not result in any significant effects relating to traffic, noise, air quality, or water quality. The Project extends the sale of alcoholic beverages and the hotel will provide limited associated entertainment to patrons in areas of the existing hotel, whereas the current use limited alcoholic beverage service to the café/bar. Many of the consumers and entertainment patrons would be hotel patrons. As such, it will not attract a material increase in vehicle trips nor would it result in activities that would otherwise cause a significant increase in impacts related to traffic, noise, air quality, or water quality. Class 32, Criteria 3 The site can be adequately served by all required utilities and public services. The Project Site is already served by all required utilities and public services. Therefore, the Project is categorized as in-fill development pursuant to the specifications in the CEQA Guidelines, and would result in no significant increase in impacts. 4

20 JANUARY 24, 2017 ROCKEFELLER PARTNERS ARCHITECTS FLOWER STREET ELEVATION 813 S. FLOWER STREET - DOWNTOWN, LOS ANGELES

21 JANUARY 24, 2017 ROCKEFELLER PARTNERS ARCHITECTS FLOWER STREET PERSPECTIVES 813 S. FLOWER STREET - DOWNTOWN, LOS ANGELES

22 JANUARY 24, 2017 ROCKEFELLER PARTNERS ARCHITECTS BUILDING SECTION RENDER 813 S. FLOWER STREET - DOWNTOWN, LOS ANGELES

23 JANUARY 24, 2017 ROCKEFELLER PARTNERS ARCHITECTS LOBBY SECTION RENDER 813 S. FLOWER STREET - DOWNTOWN, LOS ANGELES

24 JANUARY 24, 2017 ROCKEFELLER PARTNERS ARCHITECTS ROOFTOP PERSPECTIVE S. FLOWER STREET - DOWNTOWN, LOS ANGELES

25 JANUARY 24, 2017 ROCKEFELLER PARTNERS ARCHITECTS ROOFTOP PERSPECTIVE S. FLOWER STREET - DOWNTOWN, LOS ANGELES

26 JANUARY 24, 2017 ROCKEFELLER PARTNERS ARCHITECTS ROOFTOP PERSPECTIVE S. FLOWER STREET - DOWNTOWN, LOS ANGELES

27 140'-11" 27'-3 1/2" 56'-8 1/2" 140'-11" 56'-11" 27'-3 1/2" 56'-8 1/2" 56'-11" PROPERTY LINE 46'-0 1/2" 46'-0 1/2" 16'-4" 16'-4" 29'-8 1/2" 29'-8 1/2" HOTEL OFFICES AND OPERATIONS HOTEL OFFICES AND OPERATIONS KEG STORAGE KEG STORAGE LIQUOR STORAGE LIQUOR STORAGE ALCOHOL ALCOHOL DISPLAY DISPLAY ALCOHOL ALCOHOL DISPLAY DISPLAY SERVICE STATION SERVICE STATION FRIDGE CAFE BAR/LOUNGE CAFE BAR/LOUNGE FOOSEBALL FOOSEBALL PING PONG PING PONG LOBBY SECTION DARTS ARCADE SEWER EJECTOR / GREASE INTERCEPTOR SEWER EJECTOR / GREASE INTERCEPTOR (N) STAIR 1 (N) ELEV 1 (N) ELEV 2 ELEC (N) STAIR 2 STORAGE (N) STAIR 1 CLOSET (N) ELEV 1 (N) ELEV 2 ELEC (N) STAIR 2 STORAGE CLOSET DARTS ARCADE MEN MEN PROPERTY LINE WOMEN WOMEN BUILDING UTILITY S BUILDING UTILITY S WOMEN WOMEN LOCKE LOCKE MEN MEN LOCKE LOCKE (N) ELEV 3 (N) ELEV 3 I.T. I.T. LAUNDRY LAUNDRY BREAK BREAK FRIDGE W W DR W DR W DR DR 1/ 24/ 17 RITZ MILNER HOTEL ROCK EFELLER JANUARY PARTNERS 24, 2017 ARCHITECTS ROCKEFELLER PARTNERS ARCHITECTS 0 5' 10' 25' 50' 0 5' 10' 25' 50' 3/32" = 1'-0" N N A2.00 BASEMENT LEVEL PLAN 813 S Flower Street BASEMENT Los Angeles Caifornia LEVEL PLAN S. FLOWER STREET - DOWNTOWN, LOS ANGELES

28 140'-11" 27'-3 1/2" 56'-8 1/2" 56'-11" 147'-6" 58'-8 1/4" 25'-3 3/4" 39'-2 1/2" PROPERTY LINE 9'-5" 8'-10 1/2" F L O W ER ST R EET 50'-1 1/2" 46'-0 1/2" 2'-4" 9'-8 1/4" 16'-4" 6'-6" 10'-11" 6'-6" 29'-8 1/2" 10'-0 1/4" SIDEWALK SEATING LENTICULAR ART FEATURE WALL VALET STORAGE HOTEL OFFICES AND OPERATIONS HOTEL MANAGER 5 HOTEL LOBBY FRONT DESK SPORT EXIT PASSAGEWAY KEG STORAGE LIQUOR STORAGE RECEPTION DN 11 ALCOHOL DISPLAY ALCOHOL DISPLAY MEZZANINE ABOVE SERVICE STATION ALCOHOL 14 DISPLAY CAFE RESTAURANT FOOSEBALL CAFE BAR/LOUNGE FIRE CONTROL REFRIDGERATOR (N) STAIR 1 (N) ELEV 1 (N) ELEV 2 ELEC (N) STAIR 2 STORAGE (N) STAIR 1 CLOSET (N) ELEV 1 (N) ELEV 2 ELEC CHEF (N) STAIR 2 CLOSET OFFICE MEN PING PONG ICE MACHINE DARTS WOMEN LOBBY SECTION ARCADE MEN PROPERTY LINE SEWER EJECTOR / GREASE INTERCEPTOR WOMEN DN BUILDING UTILITY S EXTERIOR EQUIPMENT YARD WOMEN LOCKE COMMERICAL KITCHEN MEN LOCKE (N) ELEV 3 (N) ELEV 3 WALK-IN COOLER I.T. I.T. TRASH + DRY-GOODS RECYCLE STORAGELAUNDRY BREAK FRIDGE STORAGE W W DR DR DR W WALK-IN FREEZER A L L EY 1/ 24/ 17 RITZ MILNER HOTEL ROCK EFELLER JANUARY PARTNERS 24, 2017 ARCHITECTS ROCKEFELLER PARTNERS ARCHITECTS 0 5' 10' 25' 50' 0 5' 10' 25' 50' 3/32" = 1'-0" N N A2.00 BASEMENT LEVEL PLAN 813 S Flower Street Los GROUND Angeles Caifornia LEVEL PLAN S. FLOWER STREET - DOWNTOWN, LOS ANGELES