PLANNING & COMMUNITY DEVELOPMENT DEPARTMENT STAFF REPORT. (Hyatt Place Hotel) Paseo Pasadena Hotel Investment, LLC

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1 PLANNING & COMMUNITY DEVELOPMENT DEPARTMENT STAFF REPORT DATE: TO: Hearing Officer SUBJECT: Conditional Use Permit #6674 LOCATION: APPLICANT: ZONING DESIGNATION: GENERAL PLAN DESIGNATION: CASE PLANNER: STAFF RECOMMENDATION: (Hyatt Place Hotel) Paseo Pasadena Hotel Investment, LLC CD-2 (Central District Specific Plan, Civic Center/Midtown) High Mixed-Use ( FAR) Abdu Lachgar Adopt the Environmental Determination and the Specific Findings in Attachment A to approve the Conditional Use Permit #6674 with the Conditions in Attachment B. PROJECT PROPOSAL: ENVIRONMENTAL DETERMINATION: Conditional Use Permit: To allow the establishment of a Bar and Restaurant land use including a grab-and-go market with the on-site sale and consumption of a full line of alcoholic beverages in conjunction with the operation of a new hotel (Hyatt Place). This project has been determined to be exempt from environmental review pursuant to the guidelines of the California Environmental Quality Act (Public Resources Code 21080(b)(9); Administrative Code, Title 14, Chapter 3, 15301, Class 1, Existing Facilities) and there are no features that distinguish this project from others in the exempt class and, therefore, there are no unusual circumstances. Section exempts the operation, permitting, licensing or minor alteration of existing structures where there is negligible or no expansion of the use. The sale of alcohol in conjunction with the operation of a hotel use is considered a negligible expansion of a commercial use.

2 BACKGROUND: Site characteristics: The Paseo Colorado shopping center is bordered by East Colorado Boulevard on the north, East Green Street on the south, South Marengo Avenue on the west, and South Los Robles Avenue on the east. The entire center is located within the CD-2 (Central District Specific Plan, Civic Center/Midtown) zoning district, which allows for a variety of commercial retail, office, restaurant, and residential uses. The project site, located on the northwest corner of Green Street and Los Robles Avenue, encompasses approximately 38,449 square feet at the east end of the 11.0-acre Paseo Colorado shopping center. The project site is relatively flat and construction of a new six-story, 121,775 square foot hotel (Hyatt Place) with 189 rooms is underway. The hotel will share parking with the Paseo Colorado shopping center. Adjacent Uses: North - Mixed-Use South - Parking Structure and Convention Center East - Office and Retail West - Parking Structure and Office Adjacent Zoning: North - CD-2 (Central District Specific Plan, Civic Center/Midtown), PD-26 (Planned Development, Colorado-Los Robles), and PD-31 (Planned Development, Montana I and II) South - CD-2 (Central District Specific Plan, Civic Center/Midtown) East - CD-2 (Central District Specific Plan, Civic Center/Midtown), and CD-4 (Central District Specific Plan, Pasadena Playhouse) West - CD-2 (Central District Specific Plan, Civic Center/Midtown) Previous Cases: CUP #6072: Minor change to approved conditional use permit to modify the previously approved CUP #6072 in order to: 1) eliminate 2,091 square feet of retail area on the ground floor; 2) relocate the fitness room from the second floor to the former retail space on the ground floor; 3) create three new hotel rooms on the second floor in the former fitness room; and 4) increase the conference space by 841 square feet. Approved by the Planning Director, February 21, CUP #6072: Conditional Use Permit to allow the construction of a sixstory, 179-room hotel and six-story mixed use building with 25,000 square feet of retail and restaurant space and 71 for-sale residential units; Minor Conditional Use Permit to allow a non-residential use that is over 15,000 square feet within a Transit Oriented Development (TOD) area; Minor Conditional Use Permit to allow shared parking.; Minor Conditional Use Permit to allow on-site valet parking; and Minor Variance to allow the ground floor of the hotel building to be set back at least 50 feet from Green Street where the maximum allowable setback is five feet. Approved with conditions by City Council, November 17, Hearing Officer 2 Conditional Use Permit #6674

3 PROJECT DESCRIPTION: The applicant, Paseo Pasadena Hotel Investment, LLC, has submitted a Conditional Use Permit to allow the establishment of a Bar and Restaurant land use including a grab-and-go market with the on-site sale and consumption of a full line of alcoholic beverages in conjunction with the operation of an approved hotel (Hyatt Place). The sale of alcoholic beverages would occur from a new 1,044 square-foot bar and restaurant with a 2,967 square-foot dining area located on the first floor of the hotel. The grab-and-go market would be located adjacent to the bar area. Alcoholic beverages at the grab-and-go market would only be sold to hotel guests of legal drinking age with valid identification and would be limited to beer and wine. The Zoning Code classifies a restaurant with a bar area exceeding 500 square feet or 30 percent of the dining area as a bar, not a restaurant. In this case, the proposed 1,044 square-foot bar would be 35 percent of the total 2,967 square-foot dining area, as such the use is classified as a bar use. A Conditional Use Permit is required for the establishment of a bar use with on-site sale and consumption of full alcohol in conjunction with the operation of a Hotel use within the CD-2 zoning district. Background The site is located within the CD-2 zoning district where a hotel use is permitted with approval of a Conditional Use Permit. Conditional Use Permit #6072 was approved with conditions on November 17, 2014 by the City Council to allow the construction and establishment of a new hotel land use (Hyatt Place Hotel). Condition No. 17 states that The sale of alcoholic beverage on the premises requires the approval of a separate Conditional Use Permit for alcohol sales. The applicant has submitted this application to allow full alcohol to be sold to hotel guests only at a proposed bar, restaurant, and grab and go market within the approved hotel use. ANALYSIS: Conditional Use Permit: Establishment of a Bar and Restaurant land use with on-site sale and consumption of full alcohol Staff s review of a Conditional Use Permit for alcohol sales entails an analysis of whether the proposed location would affect the general welfare of the surrounding property owners and whether the proposed use would result in an aggravation of existing alcohol-related problems such as loitering, public drunkenness, sales to minors, noise, and littering. The Hearing Officer may consider existing calls for police response to make a determination of whether there is an undesirable concentration of alcohol uses in the vicinity of the project site. The site is located within the CD-2 zoning district, which encourages a diverse mix of land uses and services consistent with office, retail, mixed use, restaurants, and hotel uses existing in the area. The establishment of a bar and restaurant with on-site sale of full alcohol in conjunction with the operation of an approved hotel use is consistent with the surrounding uses within the Central District Specific Plan. Although the restaurant within the hotel is classified as a Bar or Tavern Land Use by the Zoning Code, the applicant intends on operating the establishment mainly as a bona-fide restaurant as part of the overall hotel operation. The restaurant will provide a full-service food menu with accessory alcohol sales, similar to restaurants that operate in the immediate vicinity. As such, the main use will remain as a hotel with bona-fide restaurant. Conditions of approval have been added to ensure the bar and restaurant use with full alcohol sales in conjunction with a hotel use does not result in any negative impact to hotel guests or to the surrounding uses. Hearing Officer 3 Conditional Use Permit #6674

4 The Hyatt Place is a hotel where a bar and restaurant are proposed and will serve a full line of alcoholic beverages. In addition, a small market is proposed adjacent to the bar to allow hotel guests to purchase a variety of food items and snacks including potato chips, candy, cookies, yogurt, ice cream, frozen dinners to non-alcoholic beverages such as ice coffee, water, soda, juice, and alcoholic beverages. Hotel staff would ensure that all alcoholic beverages sold at the grab-and-go market are only sold to hotel guests of legal drinking age. Consumption of alcohol sold from the bar and restaurant, or the grab-and-go market shall be limited to hotel premises. Hours of Operation: The proposed hours of operation for the hotel use and the ancillary market are 24 hours daily. The subject site is situated within the Central District Specific Plan and therefore is not subject to the limited hours of operation as prescribed in Section A.4 of the Zoning Code. There are no residential zoning districts within a distance of 150 feet from the subject site. The nearest residential use is 950 feet south of the subject site. The proposed hours of operation for both the primary hotel use and the ancillary full alcohol sales are consistent with other existing hotel uses in the Civic Center/Midtown Central District Specific Plan area. Concentration of Alcohol Sales: The hotel site is located within Census Tract # According to ABC, five alcohol licenses are allowed in the Census Tract. Based upon the data received from ABC, there are 25 alcohol licenses issued for this Census Tract. The applicant is proposing to add an additional on-site sales alcohol license to the census tract where an undue concentration of on-site alcohol licenses already exists. As such, ABC requires the applicant to make findings of public convenience and necessity in order to obtain the alcohol license from ABC. These findings are not required to be made by the City since off-site sales of alcohol is not proposed in this application. A letter of public convenience or necessity is required from the applicant to comply with ABC licensing requirements. A Conditional Use Permit application for the on-site sales of full alcohol requires the applicant to identify all uses that sell alcohol for either on-site or off-site consumption within 1,000 feet of the site for project site located within the CD-2 zoning district. Based on the information provided by the applicant, there are currently nineteen businesses that sell alcoholic beverage within 1,000 feet of the subject site, as indicated in Table 1.0 below: Table 1.0: Alcohol License Type for Existing Business within 1,000 feet Site Business Name Address License Type 1 Pasadena Convention Center 300 E. Green Street On-Site 2 PF Changs 300 E. Colorado Blvd., Ste 218 On-Site 3 Bodega Wine Bar 300 E. Colorado Blvd., Ste 208 On-Site 4 Porto Alegre Churrascaria 260 E. Colorado Blvd., #A201 On-Site 5 El Cholo Restaurant 300 E. Colorado Blvd., Ste 214 On-Site 6 Kopan Ramen 245 E. Colorado Blvd., Ste 218 On-Site 7 Lunasia Dim Sum House 239 E. Colorado Blvd., Ste 218 On-Site 8 BJ S Restaurant and Brewhouse 234 E. Colorado Blvd., Ste 218 On-Site 9 The Rose 300 E. Colorado Blvd., Ste 101 On-Site 10 Great Maple 300 E. Colorado Blvd., Ste 114 On-Site 11 Arclight Pasadena 336 E. Colorado Blvd., Ste 336 On-Site 12 Ruth s Chris Steakhouse 369 E. Colorado Blvd. On-Site Hearing Officer 4 Conditional Use Permit #6674

5 13 The Mixx 443 E. Colorado Blvd. On-Site 14 Rotisserie Chicken of California 26 N. Los Robles Avenue On-Site 15 Hilton Pasadena 168 S. Los Robles Avenue On-Site 16 Sheraton Pasadena Hotel 303 Cordova Street On-Site 17 Winebee.com 572 E. Green street On-Site 18 Alexander s Steakhouse 111N. Los Robles Avenue On-Site 19 California Pizza Kitchen 99 N. Los Robles Ave., Unit A On-Site Proximity to Sensitive Uses The subject site is not located within immediate proximity of parks, playgrounds, or religious facilities. The nearest public park (Central Park) is 2000 feet southwest of the site. The nearest religious facility (First United Methodist Church) is 300 feet east of the site. The property is surrounded by Colorado Boulevard to the north, general commercial uses to the east, parking to the south, and by administrative office buildings to the west. The nearest school (Pasadena Montessori School) is 1,350 feet south of the subject site. There are multi-family residential units located above the general vicinity of this tenant space, as Paseo Colorado is a mixed-use development. However, they would not likely be impacted because the proposed 24 hours of operation of the primary hotel use with the ancillary full alcohol sales, as the hotel use is consistent with other existing hotel uses in the Civic Center/Midtown Central District Specific Plan area. Conditions of approval identified in Attachment B of this report would ensure the hotel use with ancillary full alcohol sales to hotel guests only would not be detrimental to the surrounding use. In addition, no live entertainment is proposed with the ancillary restaurant and bar area. It is staff s determination that the on-site sale of full alcohol in conjunction with the operation of the previously approved hotel use would not detrimentally affect the surrounding area. Off-site sale of alcohol along with alcohol sales to non-hotel guests would be prohibited at all times. GENERAL PLAN CONSISTENCY: As conditioned, the proposed use is consistent with General Plan Land Use Element Policy 4.3: An Active Central District, which encourages the Central District to continue and to be reinforced as a vital, pedestrian-oriented place, linked to local and regional transit designed for all ages and serving as the focal point of community identity, business activity, employment, living, governance, and culture. The on-site sale and consumption of a full line of alcoholic beverages in conjunction with the operation of a bar and restaurant use within an approved hotel use along with the implementation of the conditions of approval would promote a diverse economic base and long-term economic contribution to the city. ENVIROMENTAL DETERMINATION: This project has been determined to be exempt from environmental review pursuant to the guidelines of the California Environmental Quality Act (Public Resources Code 21080(b)(9); Administrative Code, Title 14, Chapter 3, 15301, Class 1, Existing Facilities) and there are no features that distinguish this project from others in the exempt class and, therefore, there are no unusual circumstances. Section exempts the operation, permitting, licensing or minor alteration of existing structures where there is negligible or no expansion of the use. The sale of alcohol in conjunction with the operation of a hotel use is considered a negligible expansion of a commercial use. Hearing Officer 5 Conditional Use Permit #6674

6 REVIEW BY OTHER CITY DEPARTMENTS: The proposal was reviewed by the Department of Transportation, Fire Department, Department of Public Works, Public Health Department, Building Section, Design and Historic Preservation (DHP) Section, and Police Department. The Department of Transportation, Fire Department, Public Health Department, Building Section, Design and Historic Preservation (DHP) Section, and Police Department had no comments and would review the project during the Building Permit plan check process to ensure compliance with applicable code requirements. The Public Works Department conditions of approval identified in the previously approved Conditional Use Permit #6072 for the hotel use shall remain in full effect. CONCLUSION: It is staff s assessment that the findings necessary for approval of the Conditional Use Permit can be made. The site is located within the Central District Specific Plan area, which encourages retail, office, hotel, and various other commercial uses to serve the local community. The bar and restaurant use with the sale of full alcohol would be incidental to the primary hotel use. Conditions of approval and periodic condition monitoring would ensure that the use would not deviate from the planned operation reviewed under this application. Therefore, staff recommends that the Hearing Officer approve the Conditional Use Permit application with the findings in Attachment A and Conditions of Approval in Attachment B. Attachments: Attachment A: Recommended Specific Findings Attachment B: Recommended Conditions of Approval Hearing Officer 6 Conditional Use Permit #6674

7 ATTACHMENT A SPECIFIC FINDINGS FOR CONDITIONAL USE PERMIT #6674 Conditional Use Permit: Establishment of a Bar and Restaurant land use with on-site sale and consumption of full alcohol. 1. The proposed location of the site for the Conditional Use Permit would not adversely affect the general welfare of the surrounding property owners. The operation of an approved hotel use with on-site sale of full alcohol (beer, wine & distilled spirits) from a bar and restaurant is consistent with the land use and activities of the surrounding uses. The subject site is located within the Central District Specific Plan, Civic Center/Midtown (CD-2) zoning district, where a hotel use was approved under Conditional Use Permit #6072 in November The establishment of a bar and restaurant use with on-site sale of full alcohol is subject to the review and approval of this Conditional Use Permit. The bar and restaurant use with ancillary full alcohol sales within the approved hotel will operate in accordance with all City laws, ordinances and conditions of approval to ensure the continuity of the compatible coexistence of this use with the surrounding area. 2. The proposed location of the site for the Conditional Use Permit would not result in an undesirable concentration of premises for the sale of alcoholic beverages, including wine, in the area. An overconcentration of alcohol establishments, as defined by Alcohol Beverage Control, will be augmented in the Census Tract by the addition of this request. The establishment of a bar and restaurant use with the sale of beer, wine & distilled spirits within the hotel will provide a service and amenity for hotel guests and will not negatively impact the surrounding commercial area. It has been found that ancillary bar and restaurant use with alcohol sales as part of the operation of a hotel use typically will not encourage activities that cause negative effects on the surrounding areas. The bar and restaurant use with on-site sale of full alcohol is classified as an ancillary to the primary hotel use. Conditions of approval have been included that will limit the potential for negative impacts. 3. The proposed location of the site for the Conditional Use Permit would not detrimentally affect the nearby surrounding area after giving special consideration to the proximity and nature of the proposed use with respect to the following: a. Residential uses and residential districts; b. Hospitals, park and recreation facilities, places of public assembly, public or private schools, and religious assembly uses that attract minors and other similar uses; and c. Other establishments offering alcoholic beverages (including wine) for sale for consumption both on- and off-site The subject site is not located within immediate proximity of parks, playgrounds, or religious facilities. The nearest public park (Central Park) is 2000 feet southwest of the site. The nearest religious facility (First United Methodist Church) is 300 feet east of the site. The property is surrounded by Colorado Boulevard to the north, general commercial uses to the east, parking to the south, and by administrative office buildings to the west. The nearest school (Pasadena Montessori School) is 1,350 feet south of the subject site. There are multi-family residential units located above the general vicinity of this tenant space, as Paseo Colorado is a mixed-use development. However, they would not likely be impacted because the proposed 24 hours of operation of the primary hotel use with the ancillary full alcohol sales, as the hotel use is consistent with other existing hotel uses in the Civic Center/Midtown Central District Specific Plan area. Conditions of approval identified in Attachment B of this report will ensure the hotel use with ancillary full alcohol sales to hotel guests only will not be detrimental to the surrounding area. Hearing Officer 7 Conditional Use Permit #6674

8 4. The proposed location of the site for the Conditional Use Permit would not aggravate existing problems created by the sale of alcohol (e.g., littering, loitering, noise, public drunkenness, and sales to minors). The primary hotel use with ancillary on-site sales of full alcohol for hotel guests is not considered a problematic use and does not contribute to an aggravation of existing problems in the vicinity. With this approval, the project is subject to the City s Condition Monitoring Program. Noncompliance with any of the conditions of approval or any of the provisions of the Zoning Code may result in the revocation of the Conditional Use Permit. The on-site sale of full alcohol for hotel guests only in conjunction with the operation of a hotel use will not detrimentally affect the surrounding area. 5. The proposed use is in conformance with the goals, policies, and objectives of the General Plan and the purpose and intent of any applicable specific plan. As conditioned, the proposed use is consistent with General Plan Land Use Element Policy 4.3: An Active Central District, which encourages the Central District to continue and to be reinforced as a vital, pedestrian-oriented place, linked to local and regional transit designed for all ages and serving as the focal point of community identity, business activity, employment, living, governance, and culture. The on-site sale and consumption of a full line of alcoholic beverages in conjunction with the operation of a bar and restaurant use within an approved hotel use along with the implementation of the conditions of approval would promote a diverse economic base and long-term economic contribution to the city. Hearing Officer 8 Conditional Use Permit #6674

9 ATTACHMENT B CONDITIONS OF APPROVAL FOR CONDITIONAL USE PERMIT #6674 The applicant or successor in interest shall meet the following conditions: General 1. The site plan and floor plan submitted for building permits and/or future development shall substantially conform to the site/floor plans stamped Received, except as modified herein. 2. The approval of this application authorizes the establishment of a Bar and Restaurant land use with on-site sales and consumption of full alcohol (beer, wine, and distilled spirits) in conjunction with the operation of a hotel use (Hyatt Place). The approval includes a graband-go market located adjacent to the bar area for the sale and on-site consumption of alcohol by hotel guests only. 3. The Zoning Administrator, at any time, can call for a review of the approved conditions at a duly noticed public hearing. These conditions may be modified or new conditions added to reduce any impacts of the use. The Hearing Officer may revoke the Conditional Use Permit if sufficient cause is given. 4. Any change to these conditions of approval or expansion of the use shall require the modification of this Conditional Use Permit or a new Conditional Use Permit. 5. The applicant or successor in interest shall meet the applicable code requirements of all other City Departments. 6. The final decision letter and conditions of approval shall be incorporated in the building plans as part of the building plan check process. 7. The proposed project, Activity Number PLN is subject to the City s Condition Monitoring Program and Final Zoning inspection. A Final Zoning Inspection is required for the project prior to the issuance of a Certificate of Occupancy or its equivalent. In addition, the project requires Condition Monitoring. Contact the Planning Case Manager, Abdu Lachgar at (626) to schedule an inspection appointment time and set up monitoring fees. 8. The right granted under this application must be enacted within 36 months from the effective date of approval. It shall expire and become void, unless an extension of time is approved in compliance with Section C of the Zoning Code. Planning Division 9. The business operator shall obtain the proper approval and license from the California Department of Alcohol and Beverage Control. 10. Consumption of alcohol purchased at the hotel bar and restaurant, or at the grab-and-go market shall be limited to hotel premises. Hearing Officer 9 Conditional Use Permit #6674

10 11. The off-site sale and/or consumption of alcohol outside of hotel premises are prohibited at all times. 12. The primary use shall remain as a hotel use and the proposed bar and restaurant use shall not morph into a nightclub, sports bar, tavern, bar, karaoke bar, or any other use that is not associated with a hotel use. 13. Customized lighting and sound system conductive of a nightclub atmosphere shall be prohibited at all times in conjunction with the bar and restaurant use. 14. Amplification of music shall comply with the regulations of Chapter 9.36 of Pasadena Municipal Code. 15. Signs advertising brands and types of alcoholic beverages or the availability of alcohol for sale at the subject site shall not be visible from the exterior of the premises. 16. The following preventive measures shall be undertaken to reduce the potential for alcohol related problems: a. All employees selling or serving alcohol shall be required to participate in an alcohol training program offered by the Alcoholic Beverages Control prior to the operation of selling/serving alcohol; b. The availability of a variety of non-alcoholic beverages shall be made available within the market place, and c. No electronic gaming and/or video arcade shall be permitted on-site. 17. The subject site shall be maintained in a litter and graffiti free manner. Any graffiti that should appear on the site shall be removed within 48 hours. 18. Compliance with the City of Pasadena Refuse Storage regulations, see Section of the Pasadena Municipal Code, shall be maintained at all times. 19. The conditions of approval identified in the previously approved Conditional Use Permit #6072 for the hotel use shall remain in full effect. Hearing Officer 10 Conditional Use Permit #6674