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    24.    
City Council Regular
Meeting Date: 06/26/2018  

SUBJECT:
CONDITIONAL USE PERMIT NO. 18CUP01 TO ALLOW ON-SITE ALCOHOL SALES WITHIN HARKINS THEATRE LOCATED AT 3070 CHINO AVENUE WITHIN CROSSROADS ENTERTAINMENT CENTER
 
RECOMMENDATION:
Staff recommends that the City Council adopt a Resolution entitled:  A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, CALIFORNIA, APPROVING CONDITIONAL USE PERMIT NO. 18CUP01 FOR ON-SITE ALCOHOL SALES WITHIN HARKINS THEATER LOCATED AT 3070 CHINO AVENUE, WITHIN CROSSROADS ENTERTAINMENT CENTER AND FINDING THAT THE PROJECT IS EXEMPT FROM REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, BASED ON FINDINGS AND FACTS AND SUBJECT TO CONDITIONS OF APPROVAL.
BACKGROUND/ANALYSIS:
On July 20, 2004, the Planning Commission (Commission) approved Site Plan Review No. 04SPR01 for the Crossroads Entertainment Center development. The project approval included an 81,706-square foot theater complex (Harkins Theater), 20,500 square feet of restaurant pads, 6,000 square feet of multi-tenant shop spaces, a 40,000-square foot office building, an 11,300-square foot daycare, an automotive service station and convenience store, and a 120 room, three-story hotel. Harkins Theater, which includes a total of 18 screens and 3,996 seats, began construction in July of 2005 and completed in November of 2007.
 
Harkins submitted tenant improvement plans on August 11, 2017, for interior reconstruction to include a bar area for on-site alcohol sales. After first review, staff determined that a Conditional Use Permit is required to allow for on-site alcohol sales within a theater complex. The applicant submitted a Conditional Use Permit application on March 16, 2018.
 
Members of the Project Review Committee (PRC) reviewed the project and recommended approval of on-site alcohol sales within Harkins Theater.  Staff provided a copy of the draft Conditions of Approval to the applicant’s representative for their review prior to the Commission’s review of the project.  Staff did not receive any comments.

Staff presented the project at the Commission hearing on June 5, 2018. The Commissioners discussed the project with the applicant and Harkins representatives during the hearing. The Commission approved the project at their meeting, subject to amended Conditions of Approval. At the City Council meeting on June 12, 2018, two members of the City Council called for review of Conditional Use Permit No. 18CUP01 pursuant Section 16.58.070 of the Municipal Code and set a public hearing to be held at its June 26, 2018, regular meeting.
 
The applicant is requesting approval of Conditional Use Permit No. 18CUP01 to allow for on-site alcohol sales of beer and wine within the existing Harkins Theater at Crossroads Entertainment Center. The proposal will replace the arcade area in the main lobby, and will include a bar area where beer and wine will only be served, storage area, and 20 seats for patrons. Beer and wine will be served at the bar area from 10:00 a.m. to 12:00 a.m. (midnight) daily, and will have a two drink maximum sold to any one (1) person and served in a distinguishable plastic container as outlined in the statement of operations (Exhibit “D”). Auditorium monitoring will occur once every 30 minutes by a trained theater manager. Harkins Theater is also expanding the concession stand food menu (Exhibit “C”) in order to comply with Alcoholic Beverage Control requirements for a bona-fide eating establishment for a Type 47 license (on-sale general). No exterior changes will be made to the existing building.

ANALYSIS

General Plan and Zoning Consistency
 
The project site is identified as Commercial on the General Plan Land Use Map and is zoned Freeway Commercial (C-F). Pursuant to Title 16 Appendix A (Regulation of Uses by Zoning District) of the Chino Hills Municipal Code, on-site alcohol sales use within a movie theater is not specified.  Uses not specified in Appendix A are prohibited in all zoning districts, unless the Community Development Director makes a determination that a proposed use, while not listed in the Appendix A, closely corresponds to a listed use which is permitted by right or which is permitted subject to the granting of a Conditional Use Permit. The Community Development Director determined that the proposed use closely corresponds to on-site alcohol sales for establishments open to persons over the legal drinking age exclusively, more than 200 feet from any residential zoning district and more than 100 feet from any on-site residential uses within a Mixed-Use zoning district, as the existing Harkins Theater is approximately 400 feet from any residential zoning district.  Such establishments require a Conditional Use Permit approved by the Commission.
 
Approval of the proposed project furthers Goal LU-2: Balance Residential with Commercial, Business, and Public Land Uses. Additionally, the project furthers Goal ED-1 Promote a Diversified Economic Base under Action ED-1.1.4, promote and maintain levels of shopping, services, and entertainment that are appropriate to meet the market demand of the community and the region. In providing Harkins Theater the opportunity to sell alcohol to their customers in Chino Hills, this would allow a larger variety of beverages for customers to enjoy their experience at the theater, while at the same time the City furthers its goals of balancing land uses. Therefore, the approval of Conditional Use Permit No. 18CUP01, subject to the attached Conditions of Approval, would be consistent with the General Plan.
 
DEVELOPMENT STANDARDS

Access and Parking
 
The proposed project would utilize the existing access and circulation established within the Crossroads Entertainment Center development. Access to the development is provided via two signalized entrances on Chino Avenue; primary drive aisles provide internal circulation throughout the development and secondary drive aisles provide access to and circulation through parking areas. The existing center provides a total of 1,631 parking spaces, utilized as shared parking. Section 16.34 of the Chino Hills Municipal Code requires parking to be calculated for theaters based on number of seats and screens. The proposal does not include any modifications to the number of seats or screens. Therefore, the existing parking is sufficient for the proposed on-site alcohol sales.
 
 
Building Setback
 
The project does not propose any exterior structure changes or expansions. Therefore, the existing building meets all building setbacks.
 
Building Height
 
The project does not propose any exterior structure changes or expansions. Therefore, the existing building meets all building height requirements.

Conditions of Approval
 
The proposed alcohol sales within the existing Harkins Theater will have specific conditions to comply with in order to maintain the integrity of the commercial center, reduce impacts to adjacent uses and provide an overall better quality of life for Chino Hills residents. More specifically, Condition of Approval No's. 6 and 8 will require the operator to obtain all appropriate ABC licenses and comply with all requirements. Condition of Approval No’s. 10, 12, 13 and 14 will require the operator to provide quality control so that the neighboring uses are not impacted by the additional use being proposed within Harkins Theater.

PUBLIC NOTICE AND COMMENTS
 
A notice of the Commission public hearing regarding this project was mailed to property owners within the 300-foot radius of the project site on May 23, 2018, and was also published in the Chino Hills Champion on May 26, 2018. Staff did not receive any comments prior to the Commission public hearing.

A notice of the City Council public hearing regarding this project was mailed to property owners within the 300-foot radius of the project site on June 14, 2018, and was also published in the Chino Hills Champion on June 16, 2018. Staff has not received any comments as of the writing of this staff report.
ENVIRONMENTAL (CEQA) REVIEW:
Staff has determined that the proposed project is exempt from the provisions of the California Environmental Quality Act (CEQA) because the project proposes to construct a bar area for alcohol sales within an existing theater. The proposed project does not have the potential to cause significant effects on the environment. Consequently, it is categorically exempt from further CEQA review under Cal. Code Regs. §§ 15061(b)(3) and 15301(a) Existing Facilities.

















 
FISCAL IMPACT:
Possible positive impact in sales tax revenue due to the addition of alcohol sales.
Attachments
Resolution
Exhibit A - Conditions of Approval
Exhibit B - Plans
Exhibit C - Food Menu
Exhibit D - Statement of Operations
Exhibit E - ABC Conditions of Approval

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