Prepared by Kate Bartolo & Associates Page 4 of 8 May 27, 2014 - - PDF document

Prepared by Kate Bartolo & Associates Page 1 of 8 May 27, 2014

Attachment A

Request:

Conditional Use approval to permit the sale of gourmet beer, wine and distilled spirits in a retail store for

• ff-site consumption from 9am - 9pm and the sale of gourmet beer and wine for on-site consumption

from 2pm – 9pm in an adjoining and accessory tasting room with food available, not required, with controlled access limited to persons over 21 years of age. There are a total of 19 seats in the tasting room area consisting of 5 indoor seats and 14 patio seats, and the combined establishment totals 1,972 square feet of indoor space and 453 square feet of on-site patio space No Revocable Permit is required. Premises is situated on the lower Plaza level of One Cal Plaza, 300 S. Grand, and has no street visibility. Retail store and tasting room together comprise the store DBA, “Gourmet Wines & Spirits”, located Downtown for more than 25 years, until recently located at 626 Wilshire Boulevard. Applicant requests: a Conditional Use Permit (CUB) pursuant to the provisions of Section 12.24 W.1 of the Los Angeles Municipal Code, as follows, for:

• 1. The off-site sale of beer, wine and distilled spirits in a retail store (Type 21) license for off-site

consumption of bottled fine wines, spirits and gourmet beers.

• 2. The on-site accessory sales, service and consumption of beer and wine only for an accessory

tasting room (Type 42).

Project Description

The tenant, DBA Gourmet Wine & Spirits seeks a new CUB to continue its existing business, the retail off- site sale of beer, wine and distilled spirits and a tasting room. The tasting room would allow limited on- site accessory consumption of beer and wine, totaling 19 seats, 5 interior seats and 14 on the outdoor

• patio. The retail store will also sell food products, snacks and sundries. Food will always be available to

patrons in the tasting room. The tasting room is limited to persons 21 years of age or older. Gourmet Wines & Spirits is a purveyor of fine wines, liquors and beers. Gourmet Wine & Spirits seeks to continue its combined retail sales and tasting room business, which it has operated downtown for

• ver 25 years. The proposed use for subject premises are the same as the previously approved alcohol

uses at its former two locations, first in ARCO Plaza’s lower level (now known as City National Plaza) and it’s most recent, now closed, location at 626 Wilshire Boulevard. The Applicant has a patron demographic that is distinct from a more typical liquor store by price point and alcohol selection, as follows: The least expensive wines cost approximately $15-$20 and, at the high end cost several thousand dollars per bottle. As a niche retailer, Gourmet Wines offers wines by the full bottle or half bottle, as well as champagne splits, individual cans and bottles of beer, and miniatures of distilled spirits for those that want a tasting size prior to purchasing a larger bottle. In addition, the retailer also sells fine ports. Lower end fortified wines or single malt liquors, intended to facilitate a fast intoxication will not be sold. Wines account for approximately 60% of the store inventory while the other 40% is comprised of 70 brands of beer and distilled spirits. In 2012, the LA Weekly rated them one of the Ten Best alcohol retailers in Los Angeles. The tasting room will not provide a kitchen but there will always be food available to accompany on-site fine wine and beer consumption. Food choices are paired to the wines and include but are not limited to: wide assortment of gourmet cheeses and crackers, pates, meat platters, shrimp plates, fruit plates,

Prepared by Kate Bartolo & Associates Page 2 of 8 May 27, 2014 biscuits, breads, chips, and some deli sandwiches and salads. Additional foods and sundries will be available for sale, many of which are commonly sold with alcoholic products. The retail store will also sell an array of packaged and fresh foods, including but not limited to: sandwiches, cheeses, breads, crackers, chocolates, candies, gum, chips, and a diverse assortment of nuts. In addition, an array of non- alcoholic beverages will be sold. Applicant intends to relocate to Bunker Hill, where most of its long-time customer base is now situated. Its patrons are predominantly comprised of professionals who work in downtown, especially, Bunker Hill

• ffices. They include major law firms, banking, accounting, and other industry professionals. Applicant

serves individuals as well as corporate accounts, a portion of which are for corporate gift-giving and gift

• baskets. The Applicant also sells gourmet selections to customers worldwide.

The location choice of a back, not readily visible location on the lower plaza level within the One Cal Plaza mega office project underscores the fact that its alcohol sales are not impulse driven, but rather destination oriented. Its patrons will be informed directly of the shop relocation. The site is not visible from the street. Tenant plans tenant improvements that qualitatively exceed those in its previous location and can be expected to include: fine custom wood cabinetry, floor to ceiling glass, raised interior ceilings, marble facade finishes, and new state of the art wine refrigeration/storage. The most recent prior use was as an office to the adjacent unrelated restaurant.

Property Description

The subject property is presently a vacant retail space that is part of the existing California Plaza mixed- use project comprised of two levels of retail, two high-rise office buildings, a central water court, the Museum of Contemporary Art (MOCA), the Omni Hotel, the Museum Tower Apartments, and six levels

• f subterranean parking.

The subject property, address, 300 S. Grand, Suite #LP-110, is located at the back end of a lower plaza level plaza concourse that includes a curtain-style waterfall feature and spiral steps leading to the main Plaza level and up to the street level, Grand Avenue. Public access to the subject property is available through the lower level plaza concourse or from elevators adjacent to the subject premises entrance. Cal Plaza One is consistent with its 1980’s era development in its relative paucity of retail uses. Located in the Central City Community Plan Area, the subject property has the General Land Use Designation of Regional Center Commercial, lies in the R5-4D Zone, and is located within the Bunker Hill Specific Plan, the Los Angeles State Enterprise Zone and the Central City Parking District. The subject property is located entirely within the California Plaza development, bounded on the west by Grand Avenue (a Modified Major Highway II), on the east by Olive Street (a Modified Secondary Highway), on the north by General Thaddeus Kosciuszko Way (a Local Street) and on the south by West 4th Street (a Modified Secondary Highway). The property is not visible from any street or public-right-of-way or to any residences.

Surrounding Properties & Circulation

The subject premises are part of the greater California Plaza development that is built into the eastern flank of the Bunker Hill topographical feature. As such, surrounding properties to the north, south and east are on sloping topography and the properties to the west (on top of the hill) are on level topography with improved streets. Surrounding zoning consists of R5-4D and C2-4D zones. Surrounding uses consist

• f multifamily housing, high-rise office, restaurants, retail, hotel, museum, music school, and pedestrian
• plazas. To the east is Angelus Plaza, a 1,093 unit senior housing community, to the south is the 17-story

AT&T Switching Center and a surface parking lot; to the west is the 2.5 million square foot Wells Fargo

Prepared by Kate Bartolo & Associates Page 3 of 8 May 27, 2014 Plaza retail and office complex that includes a 54-story and a 45-story tower, the Grand Promenade apartment tower, and the newly-constructed Grand Avenue Apartments tower; and to the north is the Colburn School (music conservatory). Grand Avenue is a Modified Major Highway II with two-way traffic. General Thaddeus Kosciuszko Way is a two-way Local Street that connects Olive Street with Grand Avenue. Hope Street is a Modified Secondary Highway with 2-way traffic. West 4th Street is a Modified Secondary Highway with one-way, eastbound traffic. The roadway is grade separated at its crossing with Grand Avenue. There is pedestrian access along and connecting all four surrounding streets.

Relevant Case History

Subject Property (California Plaza property) Case No. ZA-2011-2165(CUB) – On June 14, 2012, the Zoning Administrator approved a conditional use to permit an extension of hours for an existing convenience market which is currently authorized to sell beer and wine for off-site consumption. Case No. ZA-2008-2250(CUB) - On March 6, 2009, the Zoning Administrator approved the sale of beer and wine only for off-site consumption in conjunction with an existing 3,079 square-foot convenience market within the California Plaza high-rise office and retail complex for a seven-year term. Case No. ZA-2008-0284(CUB) - On August 29, 2008, the Zoning Administrator approved the sale of a full line of alcoholic beverages for on-site consumption in an existing 5,600 square-foot restaurant and proposed new 2,250 square-foot patios. Case No. ZA-94-518(CUB) - On October 25, 1994, the Zoning Administrator approved the sale of alcoholic beverages for on-site consumption, in conjunction with a proposed restaurant (Tesoro Trattoria). Case No. ZA-88-653(CUB) - On September 14, 1988, the Zoning Administrator approved the sale of alcoholic beverages for on-site consumption in conjunction with a restaurant, cocktail lounge, accommodating 140 patrons at the base of the high rise building having hours of operation from 6 a.m. to 2 a.m. seven days a week. This included the service of alcoholic beverages on the patio area attached to the restaurant. Case No. ZA-87-596(CUB) - On September 24, 1987, the Zoning Administrator approved the sale of beer and wine for on-site consumption at the Museum of Contemporary Art (MOCA) which adjoins the subject property on the westerly side but does not have common access. Surrounding Properties Case No. ZA-2007-4560(CUB) - On December 21, 2007, the Zoning Administrator approved request for a conditional use permit for the sale and dispensing of beer and wine for on-site consumption in conjunction with an existing restaurant.

Prepared by Kate Bartolo & Associates Page 4 of 8 May 27, 2014 Case No. ZA 97-0252(CUB) - On June 25, 1997, the Zoning Administrator approved a Conditional Use Permit to allow the sale and dispensing for consideration of beer and wine for on-site consumption. On November 7, 1997, the Board of Zoning Appeals (BZA) denied the appeal and sustained the Zoning Administrator's determination. Case No. 90-1416(CUB), 335 South Grand Avenue was approved April 15, 1991, to permit the sale and dispensing of alcoholic beverages for on-site consumption in conjunction with an existing restaurant, accommodating approximately 337 patrons, having hours of operation from 10 a.m. to 12 midnight, seven days a week. Case No. 89-0023(CUB), 333 South Grand Avenue was approved May 23, 1989 to permit the sale and dispensing of a full-line of alcoholic beverages for on-site consumption. Case No. 89-0273(CUB) - 330 South Hope Street was approved July 1989, to permit the sale and dispensing of beer and wine for on-site consumption in conjunction with a proposed pizza restaurant accommodating approximately 162 patrons to be located in a large commercial complex known as the Wells Fargo having hours of operation from 11 a.m. to 12 p.m., Sunday through Thursday, and from 11 a.m. to 2 .a.m., Friday and Saturday. Case No. 88-0653(CUB) - 300 South Grand Boulevard was approved September 1988, to permit the sale and dispensing of alcoholic beverages for on-site consumption in conjunction with a proposed restaurant with cocktail lounge, accommodating approximately 140 patrons at the base of a high-rise building, having hours of operation from 6 a.m. to 2 a.m., seven days a week; in the C2-4 (commercial) Zone. Case No. 88-0501(CUB)(CUX) - 333 South Grand Boulevard was approved November 1988 to permit the sale and dispensing of alcoholic beverages for on-site consumption, and dancing, in conjunction with an existing private club in Wells Fargo Center, accommodating approximately 325 patrons, having hours, of

• peration from 11:30 a.m. to 2 p.m., Monday through Friday for lunch, and from 6 p.m. to 10 p.m.

Tuesday through Saturday for dinner, in the C2-4 (commercial) Zone. Case No. 84-162-CUB and 84-123-CUB approved June 29, 1984, authorized as a conditional use, the on- site sale and dispensing of alcoholic beverages in conjunction with six proposed restaurants bar facilities (including the Mandarin Cove Restaurant, Incorporated) within the Crocker Center structure (now the Wells Fargo Center). (Case No. CUB 84-123 was originally filed separately, but was later included as part

• f 84-162-CUB.)

Case No. 82-365-CUB) was approved on January 4, 1983 to permit an approximate 1,000-seat restaurant to serve alcoholic beverages, including a portable dance floor at 440 South Hope Street Case No. 79-410-CUB was approved over the subject property on January 11, 1980 to permit the automobile garage to have not more than 40 percent compact car stalls, instead of the maximum 20 percent at 320 South Hope Street.

Prepared by Kate Bartolo & Associates Page 5 of 8 May 27, 2014

CUP Findings

1. 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 project is part of the existing California Plaza, a major two property mixed-use project which consists

• f two levels of retail, two high-rise office buildings (the 42 story “One Cal Plaza” and the 54-story “Two

Cal Plaza”), a central water court, the Museum of Contemporary Art (MOCA), the Omni Hotel, the Museum Tower Apartments, and six-stories of subterranean parking. The Plaza is a mixed use project developed in the 1980’s that features attractive public spaces, events, and project amenities. Cal Plaza is

• ne of the only existing Bunker Hill properties offering an array of retail, restaurant and service retail

uses in Bunker Hill. Most of the retail however is located in Two Cal Plaza. While parking is not required, there is ample patron parking available in the property’s parking garage. Due to its established clientele, high-end merchandise and unique offerings, the new location for Gourmet Wines and Spirits project will enhance the built environment of California Plaza in the surrounding neighborhood of Bunker Hill, and will continue to provide a service that is essential to many and qualitatively beneficial to the community as a whole. Gourmet Wines has been a retail fixture for

• ver 25 years. The Applicant is a purveyor of fine wines, liquors and beers, and as such, this retail store is

distinct from a conventional liquor store in terms of its clientele, price points (from $15 a bottle to several thousand dollars), level of service, and tasting room feature. The distinguished characteristics of Gourmet Wines and Spirits are well documented, and in 2012, the LA Weekly rated them one of the Ten Best liquor retailers in Los Angeles. Applicant provides a retail service that is otherwise not readily available in Downtown: a high-end gourmet store and tasting room. The store design further distinguishes it from a conventional liquor

• store. The space’s exterior is comprised of marble facade finishes and a floor-to-ceiling glass storefront

façade. The interior space will have the drop ceiling removed to create more verticality. Tenant will be investing in fine custom cabinetry and new state of the art wine storage floor to ceiling glass. The tasting room concept was considered novel when first created by Gourmet Wines & Spirits and is today more widely imitated. The on-site accessory sale of beer and wine in conjunction with the consumption of deli food is a reasonable use which has become a commonly accepted and expected as a public convenience by the general public. This high end gourmet use will provide an amenity not only for the office use but also the nearby luxury Omni Hotel.

• 2. 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 subject premises is a vacant retail space that is part of the existing two property California Plaza mixed-use project which consists of two levels of retail, two high-rise office buildings, a central water court, the Museum of Contemporary Art (MOCA), the Omni Hotel, the Museum Tower Apartments, and six-stories of subterranean parking. The subject premises are located at the lower plaza level and are not visible from the street or from adjacent retail uses. Furthermore, the tucked away location ensures noise impacts to nearby residential properties negligible or non-existent. The 9am-9pm operating hours for the retail establishment precludes late night activity. The 2pm-9pm operating hours for the tasting room

Comment [Unknown A1]: Do we need these two sentences (at the beginning of the paragraph)? It might be excessive considering we cover design in the next finding.

Prepared by Kate Bartolo & Associates Page 6 of 8 May 27, 2014 is even more restrictive and beginning late enough such that there is no risk of a spillover effect from the neighboring Mendocino Farms restaurant’s lunch hours. The projects features will not degrade surrounding properties, but rather will raise the bar for aesthetic design and a well-lit exterior that will enliven a presently darkened dead-end corridor. In keeping with the demands of its high income clientele, the Applicant will be investing in a renovated storefront facade to the existing retail location that includes floor to ceiling glass and chrome silver mullions, glass patio doors with stylistically-exposed hardware, raised interior ceilings, and a metal main entrance door framed by a polished granite wall. The interior will also be upgraded from the design at the previous location including fine custom wood cabinetry and new state-of-the-art wine storage. The project is not a conventional liquor store and thus will not attract clientele that is characteristic of a conventional liquor store. The tucked away location and price points further ensure that Gourmet Wines and Spirits is not an impulse-oriented alcohol retailer, but rather a destination for its high income patron

• demographic. The tasting room will not be selling to minors. Finally, food will always be available to

patrons, thus further reducing risks associated with the tasting room. This high end gourmet use will provide an amenity not only for the office use but also the nearby luxury Omni Hotel.

• 3. The project substantially conforms to the purpose, intent and provisions of the General Plan, the

applicable community plan, and any applicable specific plan. Framework Element: Objective 7.6 - Maintain a viable retail base in the City to address changing resident and business shopping needs. The proposed project helps achieve this objective by maintaining its existing and successful retail business from another part of Downtown. The gradual two-decade long shift of the Applicant's client base to Bunker Hill is emblematic of this change and the Applicant seeks to accommodate and draw

• ther downtown patrons to Bunker Hill.

Central City Community Plan Objective 2-2: Retain the existing retail base in the Central City The Applicant proposes the relocation of Gourmet Wines and Spirits from the Financial District to Bunker Hill, and as such, achieves the objective of downtown retail retention. Objective 2-5: Increase specialty...markets in order to foster a diverse range of retail and commercial uses in Central City. Gourmet Wines and Spirits is a specialty retail store offering high end, gourmet-level alcohol and fresh and prepared foodstuffs consistent with the offerings of larger specialty markets. The inclusion of the tasting room further diversifies the retail offerings in Downtown, and in particular, Bunker Hill, where existing retail is more limited and somewhat homogenous. Bunker Hill Specific Plan Section 7.F.1.d: Projects that redevelop an entire subarea or block shall be designed to include a pedestrian plaza that meets the following requirement: Lined with ground floor spaces

Prepared by Kate Bartolo & Associates Page 7 of 8 May 27, 2014 designed for retail, especially restaurants that include outdoor dining, and/or cultural uses, along at least 20 percent of its building frontage. The existing California Plaza include what are arguably the most pedestrian-oriented, interesting and varied of Bunker Hill's mixed-use projects. The pedestrian plazas and concourses that connect the Plaza's two courtyards and water features include summer concerts and attract relatively more pedestrian activity than other mixed-use projects in the Bunker Hill Specific Plan. The Applicant's business, in particular its patio, helps to foster the lower plaza’s pedestrian activity by enlivening an otherwise “dead- end” portion of the plaza and retail concourse. This high end gourmet use will provide an amenity not

• nly for the office use but also the nearby luxury Omni Hotel.
• 4. The proposed use will not adversely affect the welfare of the pertinent community.

The proposed use for the subject premises will not adversely affect the welfare of the surrounding

• community. The retail establishment will be located at the lower plaza level and will not be visible from

the street or from adjacent properties. Furthermore, the tucked away location would make noise impacts to nearby residential properties negligible or non-existent. The 9am-9pm operating hours for the retail establishment precludes late night patronage or related noise impacts. The 2pm-9pm operating hours for the tasting room is even more restrictive, with a midafternoon opening time, sufficiently late to avert any risk of a spillover effect from the neighboring Mendocino Farms restaurant lunch hour. The project is not a conventional liquor store and thus will not attract clientele that is characteristic of a conventional liquor store. The tucked away location and price points further ensure that Gourmet Wines and Spirits is not an impulse-oriented retailer, but rather a destination use for its target upscale

• demographic. Secondly, the tasting room will not sell to minors and the patio was designed so as to only

provide controlled access from the store interior. Finally, food will always be available to patrons, thus further reducing risks associated with the tasting room. This high end gourmet use will provide an amenity not only for the office use but also the nearby luxury Omni Hotel. The Applicant is a 25-year Downtown business. It has been considered a good neighbor to nearby residential uses in its prior Financial District location. There are no residential uses immediately adjacent

• r readily accessible from the subject premises, situated on the lower plaza level with no street identify.
• 5. The approval of the application will not result in or contribute to an undue concentration of such

establishments. The proposed retail and tasting room will provide downtown, especially Bunker Hill’s professional workforce and residential community, with a respected purveyor of fine wines, beers and spirits. The upgraded design provides nearby residents and employees a first class wine and spirits shop and tasting room that is moving closer to its main clientele base, and adds appropriately to the mix of uses in the building and immediate vicinity. The approval of the conditional use will not result in an undue concentration of alcohol off and on site uses in the community. Compared to most of the rest of downtown, Bunker Hill is notable for its relative paucity of such alcohol uses. The proposed project is not a new use for Downtown, only a relocation of existing use that will be transferring an existing ABC license. While there are nearby restaurants that sell alcoholic beverages for

• n-site consumption, there is no undue concentration of such uses in the project’s vicinity. Bunker Hill

Prepared by Kate Bartolo & Associates Page 8 of 8 May 27, 2014 has a lower concentration than the most other districts in Downtown. Therefore, the relocation of the alcohol store to this Bunker Hill census tract will actually relieve over-concentration in the Financial District by the absence of this one store there. The project is not a conventional liquor store in terms of its price point, its non-visible location or client

• base. Gourmet Wine & Spirits has no prior history of attracting customers or generating negative

impacts associated with traditional liquor stores. The tasting room area provides an accessory amenity to the retail store which encourages its patrons to be able to sample the wares prior to purchases of alcohol that can total hundreds to thousands of dollars. Finally, food will always be available to tasting room patrons, with the food served which is paired with and complementary with the specific fine beer or wine ordered. Therefore, the location and the use each will serve to prevent the potential for negative impacts on residents who may live in the vicinity of the store. Therefore, due primarily to the relative scarcity of similar establishments in the project's census tract, the fact that the business is merely relocating within Downtown (from an area of higher concentration to lower concentration) the Approval of the Conditional Use will not result in or contribute to an increase in and resulting perceptual undue concentration of such establishments.

• 6. The approval of the application will not detrimentally affect nearby residential zones or uses.

The nearest residential properties (Museum Tower Apartments) are approximately 75 feet from the retail entrance. Notably, the subject property is located below the plaza level, facing the opposite direction, and is not visible from the street or from adjacent properties. The distance from the property's nearest outdoor access (open to sky) and the nearest residential building is approximately 235

• feet. The tucked away location would make noise impacts to nearby residential properties negligible or

non-existent. The 9am-9pm operating hours for the retail establishment precludes any late night patronage that would disturb residents and activity. The 2pm-9pm operating hours for the tasting room is even more restrictive and beginning late enough such that there is no risk of a spillover effect from the neighboring Mendocino Farms restaurant’s lunch hour. The project is not a conventional liquor store and thus will not attract clientele that is characteristic of a conventional liquor store. The tucked away location and high-to-very high price points further underscores that Gourmet Wines and Spirits is not an impulse-oriented retailer, but instead a destination for high income persons who’s imbibing of wines, beers and fine distilled spirits is defined more characteristically by its slow savoring of the alcohol choice. The tasting room area and corresponding patio will not be available to minors and have been designed so as to prevent random ingress from the outdoor plaza. All public access to the tasting room patio will be though a door that is accessible only from the tasting room’s interior. Finally, while food is not required for the ABC’s Type 42 license, food will always be available to patrons. The gourmet nature of the food offerings is intended to be consistent with its offering of fine wines or beers. Since the fine wines and beers are intended to be enjoyed with food, it is unlikely that the subject premises will attract customers looking for a fast

• intoxication. Therefore, the approval of the conditional use will not detrimentally affect nearby

residential zones or uses.

05.27.14