Planning Commission Report

Planning Commission Report To: From: Subject: Planning Commission Planning Commission Meeting: November 18, 2015 Amanda Schachter, City Planning Division Manager Agenda Item: 9-A Conditional Use Permit (15ENT-0256) to allow the on-site sale and consumption of beer, wine, and distilled spirits (Type 47 License) in conjunction with an existing theater use. Address: 1310 3 rd Street Promenade Applicant: AMC Theaters Recommended Action It is recommended that the Planning Commission take the following action(s) subject to findings and/or conditions contained in Attachment B: 1. Approve application 15ENT-0256 2. Adopt Statement of Official Action for 15ENT-0256 Executive Summary The applicant, AMC Theaters, requests a Conditional Use Permit (CUP) to allow on-site sale and consumption of beer, wine, and distilled spirits (Type 47 License) for consumption within the seven movie theater auditoriums at the existing AMC 7 Theater. The alcohol would be sold at a new bar area, identified on the plans as McGuffins and is separate from the general concession area. Alcohol would be served in different types of cups than non-alcohol beverages. All other non-alcoholic beverages and food options would be purchased at the general concession counter. The following issues should be considered by the Planning Commission in its review of the proposed project and are addressed in this report: The compatibility of the existing theater with a Type 47 ABC License for on-site consumption of alcohol within the surrounding neighborhood. The effectiveness of the conditions of approval in mitigating any alcohol-related adverse impacts in the neighborhood relating to a Type 47 ABC License at a theater. Project / Site Information The following table provides a brief summary of the project location. Additional information regarding the project s compliance with applicable municipal regulations and the General Plan is available in Attachment A. 1

Project and Site Information Table Zoning District: Land Use Element Designation: Parcel Area (SF): Parcel Dimensions: Existing On-Site Improvements (Year Built): Bayside Commercial (BSC) District Downtown Core 15,000 sq ft 100 ft x 150 ft AMC Movie Theater (1989) Site Location Map The subject property is located on the southwest corner of Arizona Avenue and Third Street Promenade. The site is developed with an approximate 41,000 square-foot AMC Movie Theater building. Environmental Analysis The proposed sale of alcoholic beverages in conjunction with theater operations within the existing building is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to the CEQA Guidelines Section 15301, Class 1 (Existing Facilities). The project involves improvements to allow alcohol licensing in conjunction with the construction of a new bar within an existing movie theater. No additional square feet or seat capacity is proposed with the application. 2

Background In 1988, the existing theater was authorized by a Development Review Permit (88DR- 299) for a 41,214 square-foot, 1,930-seat building. At the time of approval, movie theaters in the BSC were permitted. However, in the 1988 Zoning Code, movie theaters require a CUP. Therefore, the movie theater is considered a legal, non-conforming use. In 2014, the theater was approved for an interior remodel tenant improvement plan check. The applicant reduced the seat count from 1,930 seats to 724 seats and updated the interiors of the building with modern amenities in the auditoriums. The property is located in the (Bayside Commercial BSC) District and therefore proceeds under the 1988 Zoning Ordinance. Moreover, the subject property is located in the Bayside Commercial District, and until a Downtown Specific Plan is adopted, the 1988 Zoning Code remains in effect pursuant to the Interim Zoning Ordinance (IZO) No. 2490. Project Analysis Project Description The applicant, AMC Theaters, requests a CUP to allow an existing movie theater to operate with alcohol service (Type 47 ABC License). A new bar ( MacGuffins ) would be constructed in the lobby to dispense alcohol for patrons of the theater. MacGuffins would not contain bar seats or an area to consume alcohol in the lobby. No nonalcoholic beverages would be for sale at MacGuffins. The general concession counter would continue to operate within the existing lobby area as the place to buy food and non-alcoholic beverages. No alcohol would be for sale at the general concession counter. The proposed hours for alcohol sales and consumption are 10:30 a.m. to 2:00 a.m., daily. Staff has included operational conditions to the alcohol service that are specific for theater use to ensure that the proposed use operates as intended and in a harmonious manner with the surrounding area such as limiting drink sizes, restricting drinks per point of sale per person, prohibiting consumption in the lobby area, and requiring the theater employees to walk through the auditoriums every 30 minutes to monitor alcohol consumption. The two-story movie theater consists of seven auditoriums that were recently renovated, which reduced the number in each auditorium as depicted in Table 1: 3

Table 1 Auditorium Seats Before Remodel Seats After Remodel Auditorium 1 445 166 Auditorium 2 320 117 Auditorium 3 291 96 Auditorium 4 272 96 Auditorium 5 199 80 Auditorium 6 204 89 Auditorium 7 199 80 TOTAL 1,930 724 Floor Plan 4

Neighborhood Compatibility The subject property is located within the Bayside Commercial (BSC) District. Santa Monica s Downtown functions as the City s center and greatest concentration of commerce, retail, dining, transit, and entertainment. The area serves as a major destination for local residents, regional visitors, and tourists from abroad. The proposed alcohol sales would be ancillary to the existing theater use and would be consistent and compatible with the existing mix of uses in the surrounding area. Furthermore, the theater compliments other uses in the other retail, dining, and service businesses in the Downtown. Theaters with Alcohol Service in Downtown The City has approved two other movie theaters located in the Downtown District to allow for the sale and consumption of alcoholic beverages ancillary to the theater operations. The proposed hours of alcohol service for the subject theater is similar and compatible with the other theaters: Subject Theater AMC Theaters 10:30 a.m. to 2:00 a.m., daily. The applicant requests that this CUP not regulate the hours of operation for the theater use. Currently, the theater does not have hours of operation restrictions. Two other Theaters in the Downtown District Leammle Theaters 8:00 a.m. to 1:00 a.m., Sunday through Wednesday and 8:00 a.m. to 2:00 a.m., Thursday through Saturday. The theater may continue to operate until 3:00 a.m. (approved by Conditional Use Permit 14CUP-011). Arclight at Santa Monica Place 9:00 a.m. to 1:00 a.m., daily. Hours of operation for the theater use are not regulated (approved by Development Agreement). Alcohol sales associated with the theater use will only occur to theater patrons, so the availability of alcohol sales to the general public is limited only to individuals who have purchased a movie ticket with the intention of taking part in the entertainment / movie services offered by the movie theater and its related events at the location. Additionally, the unique nature of the operation and conditions of approval such as limiting the size and the number of alcoholic beverages that can be purchased at one time preclude the use turning into a bar. The introduction of alcohol sales as an ancillary component of the primary theater use will not have any negative impacts to the surrounding neighborhood or use; however to ensure that the proposed use operates as intended and in a harmonious manner with the surrounding area, the following recommended conditions of approval are included in the Statement of Official Action (STOA): Condition #22 restricts the size of alcoholic beverages being sold. Condition #24 restricts the customer to ordering two drinks maximum per sale. 5

Condition #25 requires the regular monitoring of the theater auditoriums. Bayside Commercial (BSC) District Alcohol Establishment Limitation The BSC District is an area in the City s Downtown bounded by 1 st Street Court to the west, Wilshire to the north, 4 th Court to the east, and Broadway to the south. Santa Monica Municipal Code (SMMC) Section 9.04.08.15.080 limits the number of alcohol establishments in the BSC District to 50 total. This application to serve alcohol at the AMC Theaters, if approved, would represent the 50 th alcohol establishment in the BSC District. Consequently, no additional establishments may be approved for alcohol service unless an existing, alcohol establishment permanently closed in the BSC District. Staff notes that the Draft Downtown Specific Plan would not continue this 50 alcohol establishment limitation. Compliance with Zoning Code The subject property is located in the BSC District, which is intended to provide for a concentration of retail, entertainment, office, and housing uses in addition to complementary uses such as hotels and cultural facilities. The existing movie theater complies with this designation as a commercial and entertainment business providing a movie venue and also serving as an eating and drinking establishment. The proposed alcohol sales and consumption is ancillary to the movie theater. The movie theater is a legal non-conforming use as movie theaters currently require a CUP. No expansion or intensity is proposed with this application as this CUP is only required for the introduction of alcohol beverage sales and consumption at the establishment and does not result in an expansion of seating or operating hours. Parking No off-street parking currently exists on the subject site. However, the site is located within the City s Downtown Parking Assessment District where any parking requirements may be met by payment of an in-lieu parking fee. The applicant is not proposing any additional square or seating capacity and, therefore, no additional in-lieu fees will be charged for the proposed application. Bicycle parking is provided in the public right of way throughout the Third Street Promenade. Conformance with General Plan The subject property is located within the Downtown Core Land Use Designation, which serves as the City s center of transportation, commerce, and entertainment. The Land Use and Circulation Element (LUCE) Goal D1 strives to maintain Downtown s competitive advantage as a premier local and regional shopping, dining, and entertainment destination through the implementation of policy D1.2 that encourages the construction of new or rehabilitated movie theaters in the Downtown to assure that these entertainment venues are competitive in the marketplace. The sale of alcohol in conjunction with movie theater operations is becoming more common. This application would be the third movie theater in Santa Monica s Downtown approved for alcohol 6

sales. Policy D1.1 also achieves this goal by encouraging the creation of diverse retail opportunities including local and regional serving retail and dining in the Downtown. The proposed alcohol license is for a Type 47 ABC License which is a bona fide eating and drinking establishment. Therefore, the movie theater would be conditioned to sell food at all times alcohol is available for movie theater patrons. Police Department Comments The Police Department has reviewed the application and does not have any issues with the project as conditioned. Community Meeting and Public Input Public notices were mailed to owners and tenants within a 500 radius of the subject property. Staff had not received any comments or concerns from the public at the time of the staff report being drafted. Alternative Actions: In addition to the recommended action, the Planning Commission could consider the following with respect to the project if supported by the evidentiary record and consistent with applicable legal requirements: A1. Continue the project for specific reasons (note as applicable), consistent with applicable deadlines and with agreement from the applicant A2. Articulate revised findings and/or conditions to Approve OR Deny, with or without prejudice, the subject application Conclusion The applicant requests a CUP to allow for an existing movie theater to operate with alcohol service. The applicant would be able to serve beer, wine, and distilled spirits at a separate bar from the general concession counter. As conditioned, staff supports this approval as a movie theater with a Type 47 License. Prepared by: Russell Bunim, Associate Planner Attachments A. Project Location & Permit Processing Time Limits B. (includes recommended findings and/or conditions to act upon the project) C. Public Notification & Comment Material (includes notification requirements, radius map, published notice, site posting photographs, and correspondence) D. List of Alcohol Outlets in the Bayside Commercial District E. Project Plans 7

ATTACHMENT A Project Location and Permit Processing Time Limits Project Address: 1310 3 rd Street Promenade Application Filing Date: June 9, 2015 CEQA Deadline: 60 days: August 8, 2015 PSA Deadline: 60 days from CEQA determination: October 7, 2015 Total Process Review Time (Days): 164 days: November 18, 2015 8 Attachment A

ATTACHMENT B DRAFT STATEMENT OF OFFICIAL ACTION City of Santa Monica City Planning Division PLANNING COMMISSION STATEMENT OF OFFICIAL ACTION PROJECT INFORMATION CASE NUMBER: LOCATION: APPLICANT: PROPERTY OWNER: CASE PLANNER: REQUEST: CEQA STATUS: 15ENT-0256 1310 3 rd Street Promenade AMC Theaters The Arizona/Third Street Partnership C/O Steve Bram Russell Bunim The applicant, AMC Theaters, requests a Conditional Use Permit (CUP) to allow on-site sale and consumption of beer, wine, and distilled spirits (Type 47 License) for consumption within an existing movie theater. The proposed sale of alcoholic beverages in conjunction with theater operations within the existing building is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to the CEQA Guidelines Section 15301, Class 1 (Existing Facilities). The project involves improvements to allow alcohol licensing in conjunction with the construction of a new bar within an existing movie theater. No additional square feet or seat capacity is proposed with the application. PLANNING COMMISSION ACTION Determination Date Approved based on the following findings and subject to the conditions below. Denied. 9 Attachment B

Other: EFFECTIVE DATES OF ACTIONS IF NOT APPEALED: EXPIRATION DATE OF ANY PERMITS GRANTED: LENGTH OF ANY POSSIBLE EXTENSION OF EXPIRATION DATES*: 14 days 1 year or 18 months for projects located in the Coastal Zone 6 months * Any request for an extension of the expiration date must be received in the City Planning Division prior to expiration of this permit. Each and all of the findings and determinations are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the Project. All summaries of information contained herein or in the findings are based on the substantial evidence in the record. The absence of any particular fact from any such summary is not an indication that a particular finding is not based in part on that fact. FINDINGS: CONDITIONAL USE PERMIT FINDINGS 1. The proposed use is one conditionally permitted within the subject district and complies with all of the applicable provisions of the "City of Santa Monica Comprehensive Land Use and Zoning Ordinance", in that SMMC Section 9.04.08.15.040 provides that a theater requires a CUP in the BSC-1 zoning district and that the use is legal nonconforming. No expansion of the legal nonconforming use is proposed as part of this project. Furthermore, SMMC Section 9.04.10.18.020 provides that a Conditional Use Permit is required for the sale and consumption of alcoholic beverages. 2. The proposed use would not impair the integrity and character of the district in which it is to be established or located, in that the Bayside (BSC) district allows for a variety of commercial uses including theaters, as well as alcohol-serving and other entertainment establishments with a CUP. Additionally, the Downtown district contains the largest concentration and mix of uses within the City. The purpose of the BSC district is to provide for a concentration of retail, entertainment, office and housing uses in addition to complementary uses such as hotels and cultural facilities. Theater uses with ancillary alcohol are becoming more commonplace, and in this case, the proposed use will strengthen the activity in the area by adding a regional entertainment destination with quality amenities and cinematic experience to the existing diverse mix of uses and services already offered in the BSC district. Furthermore, the proposed theater complements the other uses in the area by serving as a pre- or post-destination 10 Attachment B

for individuals visiting the other retail, dining, and service businesses in the Downtown. 3. The subject parcel is physically suitable for the type of land use being proposed, in that the parcel is developed with an approximately 41,214 square-foot, twostory commercial building with an existing multi-screen movie theater. The subject request of this entitlement is to allow the on-site sale and consumption of alcohol in conjunction with theater operations. The addition of alcohol sales can be readily accommodated within the operation of the proposed theater use as an ancillary service. 4. The proposed use is compatible with any of the land uses presently on the subject parcel if the present land uses are to remain, in that a multi-screen movie theater has existed on the subject site since 1989. Theater uses with ancillary alcohol are becoming more commonplace. The proposed ancillary on-site sale and consumption of alcohol will be compatible with the continuation of the existing theater use, as modified in this proposal. 5. The proposed use would be compatible with existing and permissible land uses within the district and the general area in which the proposed use is to be located, in that the BSC district encourages a concentration of retail, entertainment, office, and housing uses in addition to other complementary uses such as hotels and cultural facilities. The existing theater use on the subject site has operated at this location since 1989. Furthermore, the proposed request to introduce alcohol sales will be ancillary to the primary theater use and is an activity that is becoming more commonplace for theaters in urban settings. The associated conditions of approval will ensure that the use operates in a harmonious manner with the adjacent land uses and will not create alcoholrelated problems in the area. 6. There are adequate provisions for water, sanitation, and public utilities and services to ensure that the proposed use would not be detrimental to public health and safety, in that the site is located within an urbanized area adequately served by existing infrastructure. Furthermore, the theater use with alcohol sales is proposed within an existing commercial building. 7. Public access to the proposed use will be adequate, in that pedestrian access is provided from the Third Street Promenade. The subject site is located within the City s Downtown Parking Assessment District where a significant amount of offstreet parking is provided within city-owned parking structures. The addition of alcohol service, in and of itself, is not expected to generate additional traffic or parking demand for the theater use as the alcohol service is ancillary to the primary theater use. 8. The physical location or placement of the use on the site is compatible with and relates harmoniously to the surrounding neighborhood, in that the existing theater 11 Attachment B

operations will remain generally the same from what has existed at the site since 1989. The alcohol sales will be introduced as a new service offered to theater patrons. The theater use is compatible with the surrounding neighborhood and provides a walkable destination for residents, workers, and visitors to the Downtown area. The sale of beer and wine for on-site consumption, as conditioned, will not detract or disrupt the compatibility of the use with the surrounding neighborhood. 9. The proposed use is consistent with the goals, objectives, and policies of the General Plan, in that the LUCE Goal D1 strives to maintain Downtown s competitive advantage as a premier local and regional shopping, dining, and entertainment destination. Policy D1.2 implements this Goal by encouraging the construction of new or rehabilitated movie theaters in the Downtown to assure that these entertainment venues are competitive in the marketplace. The proposed bar area improvements to the theater building and operations are in line with other new theater outlets by providing a more desirable destination venue with modern amenities, restaurants, and the offering of alcoholic beverages. 10. The proposed use would not be detrimental to the public interest, health, safety, convenience, or general welfare, in that the proposed use is consistent with the Zoning Ordinance and the Land Use Element of the General Plan, and conditions to mitigate any potential adverse impacts such as restricting the operator to 35% of total gross revenues on the percentage of alcohol sales per year and limiting the size and number of alcoholic beverages that can be purchased will ensure that the primary business remain a theater use with beer and wine sales serving only as an ancillary component. 11. The proposed use conforms precisely to the applicable performance standards contained in Subchapter 9.04.12 and special conditions outlined in Subchapter 9.04.14 of the City of Santa Monica Comprehensive Land Use and Zoning Ordinance, in that no performance standards permit is required. 12. The proposed use will not result in an over concentration of such uses in the immediate vicinity, in that that the proposed theater use with ancillary alcohol sales is located in the Downtown district where a variety of retail, office, dining, and entertainment uses are encouraged. Furthermore, according to Section 9.04.08.15.080 of the SMMC, up to 50 alcohol establishments are allowed within the BSC district, which will not be exceeded with the introduction of the proposed use. ALCOHOL OUTLET FINDINGS 1. The proposed use will not adversely affect the welfare of neighborhood residents in a significant manner in that the use will be located in a commercial 12 Attachment B

area and part of the vibrant Santa Monica Downtown, separated from any major residential neighborhood. The proposed beer and wine sales will occur with food service and as an ancillary component of the primary theater use. Adverse impacts to the neighborhood residents are not expected if the theater use operates as governed by the specific operational conditions of approval associated with this Conditional Use Permit. 2. The proposed use will not contribute to an undue concentration of alcohol outlets in the area in that according to Section 9.04.08.15.080 of the SMMC, up to 50 alcohol establishments are allowed within the BSC district. This application represents the 50 th alcohol establishment in the BSC District; and therefore, the limitation would not be exceeded with the introduction of the proposed use. Furthermore, the proposed theater use with ancillary alcohol sales is located in a district that encourages commercial recreation and visitor serving uses and activities. The general vicinity is frequented by large numbers of local residents as well as office workers, shoppers, and visitors from outside the City. 3. The proposed use will not detrimentally affect nearby neighborhoods considering the distance of the alcohol outlet to residential buildings, churches, schools, hospitals, playgrounds, parks, and other existing alcohol outlets in that the alcohol sales will be ancillary to movie theater operations, and the sale and on-site consumption of alcohol is for movie patrons only. While residential uses are located in close proximity to the site, it is anticipated that the incorporation of conditions will mitigate any alcohol related problems in the area. Furthermore, the conditions of approval require the use to comply with the Noise Ordinance (SMMC Chapter 4.12.). Specifically, SMMC Section 4.12.150, regulates business operations by restricting the hours of deliveries, outdoor maintenance activities, and trash and recycling activities. 4. The proposed use is compatible with existing and potential uses within the general area in that the theater use is located within the BSC and Downtown districts where it is compatible with the existing mix of commercial uses. The introduction of beer and wine sales as an ancillary component of the theater use maintains the theater s compatibility within the BSC and Downtown districts, and the existing mix of retail, dining, and entertainment uses. 5. Traffic and parking congestion will not result from the proposed use in that the parking demand and traffic patterns in the neighborhood will not change due to the provision of incidental alcohol sales in conjunction with a theater use. The primary use of the subject tenant space is a theater. The addition of alcoholic beverages to an establishment s menu and services increases its patrons beverage choices; however, the offering of alcoholic beverages as a service component of the use will not, in and of itself, increase traffic and parking demand in the neighborhood. 13 Attachment B

6. The public health, safety, and general welfare are protected in that the project is consistent with the provisions of the Zoning Ordinance and the Land Use Element of the General Plan, and alcohol outlet specific conditions have been added to mitigate any potential adverse impacts. 7. No harm to adjacent properties will result in that the conditions of approval will ensure that the establishment operates as a theater with food service and incidental alcohol sales. 8. The proposed use is consistent with the objectives of the General Plan in that that the LUCE Goal D1 strives to maintain Downtown s competitive advantage as a premier local and regional shopping, dining, and entertainment destination. Policy D1.2 implements this Goal by encouraging the construction of new or rehabilitated movie theaters in the Downtown to assure that these entertainment venues are competitive in the marketplace. The proposed bar area improvements to the theater building and operations are in line with other new theater outlets by providing a more desirable destination venue with modern amenities, restaurants, and the offering of alcoholic beverages. CONDITIONS OF APPROVAL: PLANNING AND COMMUNITY DEVELOPMENT Project Specific Conditions 1. This approval is for the authorization of alcohol sales in conjunction with a sevenscreen movie theater, and consistent with the plans dated October 27, 2014, a copy of which shall be maintained in the files of the City Planning Division. 2. The permitted hours of alcohol sales and consumption at the theater shall be 10:30 a.m. to 2:00 a.m., daily. The theater use may continue to operate without alcohol service beyond the hours specified for alcohol service. Administrative 3. The Planning Commission s approval, conditions of approval, or denial of this application may be appealed to the City Council if the appeal is filed with the Zoning Administrator within fourteen consecutive days following the date of the Planning Commission s determination in the manner provided in Part 9.04.20.24, Sections 9.04.20.24.010 through 9.04.20.24.040. Any appeal must be made in the form required by the Zoning Administrator. The approval of this permit shall expire if the rights granted are not exercised within 18 months from the permit s effective date. Exercise of rights shall mean issuance of a building permit to commence construction or actual commencement of the use granted by this Conditional Use Permit if a building permit is not required. 14 Attachment B

4. Within ten days of City Planning Division transmittal of the Statement of Official Action, project applicant shall sign and return a copy of the Statement of Official Action prepared by the City Planning Division, agreeing to the conditions of approval and acknowledging that failure to comply with such conditions shall constitute grounds for potential revocation of the permit approval. By signing same, applicant shall not thereby waive any legal rights applicant may possess regarding said conditions. The signed Statement shall be returned to the City Planning Division. Failure to comply with this condition shall constitute grounds for potential permit revocation. 5. Prior to issuance of a Final Inspection the applicant shall post a notice at the building entry stating that the site is regulated by a Conditional Use Permit and the Statement of Official Action, which includes the establishment s conditions of approval, and the establishment s approved floor plan, is available upon request. This notice shall remain posted at all times the establishment is in operation. 6. Within thirty (30) days from date of the approval of the Statement of Official Action, the applicant shall provide a copy of the approved Statement of Official Action for this project to the local office of the State Alcoholic Beverage Control department. 7. Prior to issuance of a Certificate of Occupancy, or a business license, or commencement of alcohol service as applicable, the operator shall submit a plan for approval by the Director of Planning regarding employee alcohol awareness training programs and policies. The plan shall outline a mandatory alcohol awareness training program for all employees having contact with the public and shall state management's policies addressing alcohol consumption and inebriation. The program shall require all employees having contact with the public to complete a California Department of Alcoholic Beverage Control (ABC) sponsored alcohol awareness training program within 90 days of the effective date of this approval. In the case of new employees, the employee shall attend the alcohol awareness training within 90 days of hiring. In the event the ABC no longer sponsors an alcohol awareness training program, all employees having contact with the public shall complete an alternative program approved by the Director of Planning and Community Development. The operator shall provide the City with an annual report regarding compliance with this condition. This project shall be subject to any future City-wide alcohol awareness training program condition affecting similar establishments. 8. Prior to commencement of alcohol service as applicable, the operator shall also submit a plan describing the establishment's designated driver program, which shall be offered by the operator to the establishment's patrons. The plan shall specify how the operator will inform patrons of the program, such as offering on the menu a free non-alcoholic drink for every party of two or more ordering alcoholic beverages. 15 Attachment B

9. In the event permittee violates or fails to comply with any conditions of approval of this permit, no further permits, licenses, approvals or certificates of occupancy shall be issued until such violation has been fully remedied. 10. Applicant is advised that projects in the California Coastal Zone may need approval of the California Coastal Commission prior to issuance of any building permits by the City of Santa Monica. Applicant is responsible for obtaining any such permits. Conformance with Approved Plans 11. This approval is for those plans dated October 27, 2014, a copy of which shall be maintained in the files of the City Planning Division. Project development shall be consistent with such plans, except as otherwise specified in these conditions of approval. 12. Minor amendments to the plans shall be subject to approval by the Director of Planning. An increase of more than 10% of the square footage, and increase of seating, or a significant change in the approved concept shall be subject to Planning Commission Review. Construction shall be in substantial conformance with the plans submitted or as modified by the Planning Commission, Architectural Review Board, or Director of Planning. No expansion in number of seats, intensity of operation, or outdoor areas shall occur without prior approval from the City of Santa Monica and State ABC. 13. Project plans shall be subject to complete Code Compliance review when the building plans are submitted for plan check and shall comply with all applicable provisions of Article IX of the Municipal Code and all other pertinent ordinances and General Plan policies of the City of Santa Monica prior to building permit issuance. Fees 14. As required by California Government Code Section 66020, the project applicant is hereby notified that the 90-day period has begun as of the date of the approval of this application, in which the applicant may protest any fees, dedications, reservations, or other exactions imposed by the City as part of the approval or as a condition of approval of this development. The fees, dedications, reservations, or other exactions are described in the approved plans, conditions of approval, and/or adopted city fee schedule. Project Operations 15. The operation shall at all times be conducted in a manner not detrimental to surrounding properties or residents by reason of lights, noise, activities, parking or other actions. 16 Attachment B

16. No exterior activity such as trash disposal, disposal of bottles or noise generating trash, deliveries or other maintenance activity generating noise audible from the exterior of the building shall occur during the hours of 11:00pm to 7:00am daily. In addition, there shall be no outdoor cleaning of the property with pressurized or mechanical equipment during the hours of 9:00pm to 7:00am daily. Trash containers shall be secured with locks. 17. No alcoholic beverage shall be sold for consumption beyond the premises. 18. The primary use of the premises shall be a movie theater for its patrons who are admitted with the intention of taking part in the entertainment/movie services being offered by the movie theater and its related events at the location. Alcohol shall not be served to persons except those admitted for this purpose. 19. The consumption of alcoholic beverages shall only be permitted within the seven theater auditoriums. The consumption of alcoholic beverages within the common public areas outside of the seven movie theaters shall be prohibited unless in association with a special event such as private movie screenings or film festival. 20. Alcohol beverages shall not be sold, served, or delivered to customers by ambulatory servers or vendors that carry a supply of unordered alcoholic beverages. 21. Alcoholic beverages shall be served in containers which significantly differ in appearance from those containers utilized for non-alcoholic beverages. This condition does not preclude the service of alcohol beverages in their original containers. 22. Beer and distilled spirits shall not be served in quantity that exceeds 16 ounces, and wine shall not be served in a quantity that exceeds 8 ounces. 23. Points of alcohol sales shall only be permitted at MacGuffin s bar as identified on the floor plan. 24. No more than two alcoholic beverages shall be sold or served to any one person during any transaction. 25. An employee of the premises shall enter and monitor the activity within the theater auditoriums on a regular basis, but no less than once every 30 minutes. 26. No more than 35% of total gross revenues per year shall be from alcohol sales. The operator shall maintain records of gross revenue sources which shall be submitted annually to the City of Santa Monica City Planning Division at the beginning of the calendar year and also available to the City of Santa Monica and the State ABC upon request. 17 Attachment B

27. Any substantial changes to the mode or character of the operation, including the acquisition of a new or additional license from ABC (e.g. Type 41, 42, 48) shall require the approval of a Conditional Use Permit. 28. The Conditional Use Permit for the sale of alcohol at the premises shall become null and void if the premises is no longer used as a movie theater. The continuation of alcohol sales at the premises under a different use shall require the approval of a new Conditional Use Permit. 29. Bottle service of any kind shall not be available to patrons. Bottle service shall meant the service of any full bottle of liquor, wine, or beer, of more than 375 ml, along with glass ware, mixers, garnishes, etc., in which patrons are able to then make their own drinks or pour their own wine or beer. Liquor bottle service shall be prohibited. 30. No outside promoter shall be permitted to rent or lease the premises. No event held at the theater shall be advertised under another name. All private events shall be administered through the operator of the theater. 31. No more than three television screens, including video projectors or similar audio/visual devices, shall be permitted in the common areas outside the theater auditoriums except monitor screens used exclusively for theater-oriented information including, but not limited to, the following: theater auditorium identification, theater schedule and ticket pricing, concession stand menu and pricing, display of theater logo retail items, and movie poster images. 32. The establishment shall serve food to patrons during all hours the establishment is open for customers. 33. Customers shall be permitted to order food at the concessions counter at all times the bar is open. 34. There shall be no minimum drink purchase requirement. 35. Any minimum purchase requirement may be satisfied by the purchase of beverages or food. 36. No dancing shall be permitted on the premises. 37. Queuing of patrons outside the building entry for checking of tickets to control entry into the establishment and/or checking of identification shall occur in an orderly manner with minimal obstruction to pedestrian circulation along the public right-of-way. 18 Attachment B

38. The establishment shall not organize or participate in organized pub-crawl events where participants or customers pre-purchase tickets or tokens to be exchanged for alcoholic beverages at the theater. 39. No video or amusement games shall be permitted on the premises. 40. Employees of the establishment shall walk a 100-foot radius from the facility at some point prior to 30 minutes after closing and shall pick up and dispose of any discarded beverage containers and other trash left by patrons. 41. Window or other signage visible from the public right-of-way that advertises beer or alcohol shall not be permitted. 42. Applicant is on notice that all temporary signage is subject to the restrictions of the City sign ordinance. 43. The project shall at all times comply with the provisions of the Noise Ordinance (SMMC Chapter 4.12). 44. Pursuant to SMMC Section 4.12 (Noise), establishments with amplified music may be required to provide entrances and exits, except exits which are solely emergency exits, designed as two-door vestibules, so that only one set of doors is open at a time. Doors shall be of solid core design. Windows shall be constructed with double-paned glass. Final Design 45. Refuse areas, storage areas and mechanical equipment shall be screened in accordance with SMMC Section 9.04.10.02.130, 140, and 150. Refuse areas shall be of a size adequate to meet on-site need, including recycling. The Architectural Review Board in its review shall pay particular attention to the screening of such areas and equipment. Any rooftop mechanical equipment shall be minimized in height and area, and shall be located in such a way as to minimize noise and visual impacts to surrounding properties. Unless otherwise approved by the Architectural Review Board, rooftop mechanical equipment shall be located at least five feet from the edge of the roof. Except for solar hot water heaters, no residential water heaters shall be located on the roof. 46. Any new eating and drinking establishment at the site with fewer than 50 seats capacity shall install a grease interceptor with minimum 750 gallons static holding capacity in order to pretreat sewered grease. Facilities with greater than 50 seats are required to install an interceptor with 1000 gallons minimum holding capacity. The Public Works Department may modify the above requirements only for good cause. Specifically, the facility must demonstrate to the satisfaction of the Industrial Waste Section and Building and Safety Division that interceptor installation is not feasible at the site in question. In such cases where 19 Attachment B

modifications are granted, grease traps will be required in the place of an interceptor. Building permit plans shall show the required installation. Standard Conditions 47. Final approval of any mechanical equipment installation will require a noise test in compliance with SMMC Section 4.12.040. Equipment for the test shall be provided by the owner or contractor and the test shall be conducted by the owner or contractor. A copy of the noise test results on mechanical equipment shall be submitted to the Community Noise Officer for review to ensure that noise levels do not exceed maximum allowable levels for the applicable noise zone. 48. The property owner shall insure any graffiti on the site is promptly removed through compliance with the City s graffiti removal program. Environmental Mitigation 49. To mitigate solid waste impacts, prior to issuance of a Certificate of Occupancy, project owner shall submit a recycling plan to the Department of Public Works for its approval. The recycling plan shall include: 1) List of materials such as white paper, computer paper, metal cans, and glass to be recycled; 2) Location of recycling bins; 3) Designated recycling coordinator; 4) Nature and extent of internal and external pick-up service; 5) Pick-up schedule; and 6) Plan to inform tenants/ occupants of service. 50. Ultra-low flow plumbing fixtures are required on all new development and remodeling where plumbing is to be added, including dual flush toilets, 1.0 gallon urinals and low flow shower heads. POLICE 51. Prior to issuance of a Certificate of Occupancy, or a business license, or commencement of alcohol service as applicable, a security plan shall be submitted to the Chief of Police for review and approval. The plan shall address both physical and operational security issues. 52. Prior to the commencement of alcohol service, the applicant shall participate in the Santa Monica Alcohol Awareness for Retailers Training (S.M.A.A.R.T) program conducted by the Santa Monica Police Department 20 Attachment B

COMPLIANCE 53. The applicant authorizes reasonable City inspection of the property to ensure compliance with the conditions of approval imposed by the City in approving this project and will bear the reasonable cost of these inspections as established by Santa Monica Municipal Code Section 2.72.010 and Resolution No. 9905 (CCS) or any successor legislation thereto. These inspections shall be no more intrusive than necessary to ensure compliance with conditions of approval. VOTE Ayes: Nays: Abstain: Absent: 21 Attachment B

NOTICE If this is a final decision not subject to further appeal under the City of Santa Monica Comprehensive Land Use and Zoning Ordinance, the time within which judicial review of this decision must be sought is governed by Code of Civil Procedure Section 1094.6, which provision has been adopted by the City pursuant to Municipal Code Section 1.16.010. I hereby certify that this Statement of Official Action accurately reflects the final determination of the Planning Commission of the City of Santa Monica. Richard McKinnon, Chairperson Date Acknowledgement by Permit Holder I hereby agree to the above conditions of approval and acknowledge that failure to comply with such conditions shall constitute grounds for potential revocation of the permit approval. Print Name and Title Date Applicant s Signature 22 Attachment B

ATTACHMENT C PUBLIC NOTIFICATION INFORMATION Pursuant to Municipal Code Section 9.04.20.20.080 and in accordance with the posting requirements set forth by the Zoning Administrator, prior to application filing the applicant posted a sign on the property regarding the subject application. At least 8 weeks prior to the public hearing date, the applicant submitted a photograph to verify the site posting and to demonstrate that the sign provides the following information: Project case number, brief project description, name and telephone number of applicant, site address, date, time and location of public hearing, and the City Planning Division phone number. It is the applicant's responsibility to update the hearing date if it is changed after posting. In addition, pursuant to Municipal Code Section 9.04.20.22.050, notice of the public hearing was mailed to all owners and residential and commercial tenants of property located within a (300 foot or 500 foot) radius of the project and published in the Santa Monica Daily Press at least ten consecutive calendar days prior to the hearing. October 6, 2015, the applicant was notified by phone and in writing of the subject hearing date. The applicant provided the following information regarding attempts to contact area property owners, residents, and recognized neighborhood associations: Downtown Santa Monica, Inc. The applicant has notified Downtown Santa Monica, Inc. of their application with the City of Santa Monica for alcohol sales. NOTE: The Commission stated at their October/November 2010 hearing that will not hear a project on Consent if the applicant has not contacted the neighborhood group. 23 Attachment C Public Notification Information

NOTICE OF A PUBLIC HEARING BEFORE THE SANTA MONICA PLANNING COMMISSION SUBJECT: 15ENT-0256 1310 3 rd Street Promenade APPLICANT: AMC Theaters PROPERTY OWNER: The Arizona/Third Street Partnership A public hearing will be held by the Planning Commission to consider the following request: The applicant, AMC Theaters, requests a Conditional Use Permit (CUP) to allow on-site sale and consumption of beer, wine, and distilled spirits (Type 47 License) for consumption within an existing movie theater. DATE/TIME: LOCATION: WEDNESDAY, November 18, 2015 AT 7:00 PM City Council Chambers, Second Floor, Santa Monica City Hall 1685 Main Street, Santa Monica, California HOW TO COMMENT The City of Santa Monica encourages public comment. You may comment at the Planning Commission public hearing, or by writing a letter. Written information will be given to the Planning Commission at the meeting. Address your letters to: Russell Bunim, Associate Planner Re: 15ENT-0256 (1310 3 rd Street Promenade) City Planning Division 1685 Main Street, Room 212 Santa Monica, CA 90401 MORE INFORMATION If you want more information about this project or wish to review the project file, please contact Russell Bunim, Associate Planner at (310) 458-8341, or by e-mail at russell.bunim@smgov.net. The Zoning Ordinance is available at the Planning Counter during business hours and on the City s web site at www.santa-monica.org. The meeting facility is wheelchair accessible. For disability-related accommodations, please contact (310) 458-8341 or (310) 458-8696 TTY at least 72 hours in advance. Every attempt will made to provide the requested accommodation. All written materials are available in alternate format upon request. Santa Monica Big Blue Bus Lines #2, #3, Rapid 3, #7 and #9 service the City Hall and Civic Center. Big Blue Bus Lines #2 and #8 now run on Ocean Avenue instead of Main Street due to Colorado Esplanade construction. 24 Attachment C

Pursuant to California Government Code Section 65009(b), if this matter is subsequently challenged in Court, the challenge may be limited to only those issues raised at the public hearing described in this notice, or in written correspondence delivered to the City of Santa Monica at, or prior to, the public hearing. ESPAÑOL Esto es una noticia de una audiencia pública para revisar applicaciónes proponiendo desarrollo en Santa Monica. Si deseas más información, favor de llamar a Carmen Gutierrez en la División de Planificación al número (310) 458-8341. APPROVED AS TO FORM: Amanda Schachter Planning Manager 25 Attachment C

ATTACHMENT D List of Alcohol Outlets in the Bayside Commercial District 1310 3 rd Street Promenade 26 Attachment C

Street Number Street Name Business Name 1 1332 2nd St. Laemmle Theater 2 1332 2nd St. Proposed Restaurant 3 1332 2nd St. Proposed Rooftop Restaurant 4 1345 2nd St. SugarFish 5 1403 2nd St. Taberna Arroz Y Vi 6 1442 2nd St. Buca Di Beppo 7 1449 2nd St. Chloe 8 1212 3rd St. Promenade Monsoon 9 1240 3rd St. Promenade Cabo Cantina 10 1251 3rd St. Promenade Loteria! 11 1260 3rd St. Promenade Monsieur Marcel 12 1310 3rd St. Promenade AMC Theater 13 1315 3rd St. Promenade Food Court (Counts as 1) 14 1319 3rd St. Promenade Bravo Cucina 15 1321 3rd St. Promenade George's Bistro 16 1323 3rd St. Promenade Westside Comedy Theater 17 1332 3rd St. Promenade Johnny Rockets 18 1333 3rd St. Promenade Hummus Bar Express 19 1351 3rd St. Promenade Barney's Beanery 20 1360 3rd St. Promenade Trastevere 21 1401 3rd St. Promenade ShopHouse 22 1444 3rd St. Promenade Johnnie's Pizzeria 23 1455 3rd St. Promenade Steak N Shake 24 1460 3rd St. Promenade Café Crepe 25 1416 4th St. Mercado 26 1418 4th St. Magicopolis 27 1432 4th St. Harvelles 28 1432 4th St. West 4th & Jane 29 1443 4th St. Border Grill 30 1447 4th St. Benihana 31 201 Arizona Ave Tender Greens 32 213 Arizona Ave Burger Lounge 33 225 Arizona Ave Locanda Del Lago 34 119 Broadway The Craftsman 35 129 Broadway The Commons 36 201 Broadway The Independence 37 217 Broadway Copa de Oro 38 123-125 Broadway Thai Dishes 39 123 Santa Monica Blvd. Ye Olde Kings Head 40 116 Santa Monica Blvd. Ye Olde Kings Head 41 225 Santa Monica Blvd. The Misfit 42 316 Santa Monica Blvd. Le Pain Quotidien 43 318 Santa Monica Blvd. Britannia Pub 44 401 Santa Monica Blvd. Hikari Sake House 45 120 Wilshire Blvd. 800 Degrees 46 202 Wilshire Blvd. Hillstone 27 Attachment C